Banning City Council
August 27, 2024

RESOLUTION 2024-141

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA,

EXPRESSING SUPPORT FOR ACTIONS TO FURTHER STRENGTHEN LOCAL

DEMOCRACY, AUTHORITY, AND CONTROL AS RELATED TO LOCAL ZONING AND

HOUSING ISSUES
WHEREAS, the legislature of the State of California each year proposes, passes, and has signed into law a number of bills addressing a range of housing issues; and WHEREAS, the legislature of the State of California does not allow sufficient time between each legislative cycle to determine if the legislation is successful in bringing about the change for the State of California’s housing issues; and
WHEREAS, the majority of these bills usurp the authority of local jurisdictions to determine for themselves the land use policies and practices that best suit each city and its residents and instead impose mandates that do not take into account the needs and differences of jurisdictions throughout the State of California; and
WHEREAS, the ability of local jurisdictions to determine for themselves which projects require review beyond a ministerial approval; what parking requirements are appropriate for various neighborhoods within their jurisdiction; what plans and programs are suitable and practicable for each community rather than having these decisions imposed upon cities without regard to the circumstances of each individual city; and what zoning should be allowed for residential properties is a matter of great import to the City of Banning among other items related to local zoning and housing issues; and
WHEREAS, the City Council of the City of Banning feels strongly that our local government is best able to assess the needs of our community and objects to the proliferation of State legislation that deprives us of that ability.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:

SECTION 1. The City of Banning is opposed to the current practice of the legislature of the State of California of continually proposing and passing multitudes of bills that directly impact and interfere with the ability of cities to control their own destiny through use of the zoning authority that has been granted to them.

SECTION 2. The City of Banning will explore various ways to protect the ability of cities to retain local control over zoning as each individual city within the State of California is best suited to determine how the zoning in their city should be allocated in order to meet the housing needs of the community.

SECTION 3. The City Clerk shall certify the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. 1057
Resolution 2024-141

PASSED, APPROVED AND ADOPTED this 27th day of August 2024.

Alberto Sanchez, Mayor
City of Banning
ATTEST:

Caroline Patton, Administrative City Clerk
City of Banning
APPROVED AS TO FORM:

Serita R. Young, City Attorney
Richards, Watson & Gershon
1058
Resolution 2024-141

CERTIFICATION:

I, Caroline Patton, Administrative City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2024-141, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 27th day of August 2024 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Caroline Patton, Administrative City Clerk
City of Banning, California
1059

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
PREPARED BY: Lincoln Bogard, Administrative Services Director Lincoln Bogard, Administrative Services Director
MEETING DATE: August 27, 2024
SUBJECT: Consideration of Resolution 2024-142, Approving a Contract with American Legal Publishing, LLC (C01061) for a Municipal Code Update Project for a Term Ending on December 31, 2025, for Total Not-ToExceed Amount of $50,000 to Conduct a Holistic Review and Update of the Municipal Code to Modernize the Code Utilizing Reader Friendly Text and Format, Eliminate Outdated and Redundant Provisions, Eliminate Inconsistencies and Contradictions, Simplify Code Provisions, and to Ensure Consistency and Compliance with Current State and Federal Law RECOMMENDATION:

Adopt Resolution 2024-142.

BACKGROUND:

The City of Banning Code of Ordinances (Municipal Code) consists of 18 Titles that has been amended periodically over time. The current Municipal Code may include policies and procedures that may be better suited for adoption by the City Council via resolution rather than by codified ordinance. The goal of this project is to conduct a holistic review and update of the Municipal Code to modernize the code utilizing reader friendly text and format, eliminate outdated and redundant provisions, eliminate inconsistencies and contradictions, simplify code provisions, and to ensure consistency and compliance with current state and federal law.

As part of our evaluation process for the Municipal Code Update Project (“Project”), the City is seeking assistance from a highly qualified legal consultant or consultant team who has relevant experience updating municipal codes in the State of California for general law cities.

Since this will be the City’s first comprehensive update, the City expects that the Municipal Code may require significant modifications to reflect current needs of the community. The new code should reflect best practices with respect to the content and administration of the code.

The comprehensive update needs to be user friendly for staff, property owners, and businesses by 1) removing legalese and jargon unfamiliar to the lay person, 2) improving clarity and overall functionality, and 3) reflecting regulatory best practices. It is also envisioned that the update may include tables and illustrations whenever possible to help convey concepts. Lastly, the updated code must be consistent with current case, state, and federal laws.

JUSTIFICATION:

The City has not previously performed a Municipal Code Update and staff has become aware of 1060
discrepancies between code sections. Since no review has been done, there is a possibility that some code sections have been superseded by changes in case law, state law, or federal law. Additionally, staff would like the code to be user friendly, functional, and in line with best practices.

The City issued a Request for Proposals (RFP) for Municipal Code Update Services on May 10, 2024, which received two (2) proposals, one (1) of which was disqualified due to the fact that they did not attend the mandatory pre-proposal meeting. American Legal Publishing, LLC was selected for contract award through an evaluation process.

The evaluation scores are attached to this report.

FISCAL IMPACT:

This contract will be funded from the adopted budget in general ledger account 705-4500-412.33-11 for Professional Services.

ALTERNATIVES:

Do not adopt the resolution and provide alternative direction to staff.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

Yes
ATTACHMENTS:

1. Resolution 2024-142, American Legal Publishing.docx

2. C01061 PSA American Legal Publishing, LLC.docx

3. Municipal Code Update Project Request for Proposal (RFP)

4. Evaluation tabulation.docx
1061
Resolution 2024-142

RESOLUTION 2024-142

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, APPROVING A CONTRACT WITH AMERICAN LEGAL PUBLISHING, LLC (C01061) FOR A MUNICIPAL CODE UPDATE PROJECT FOR A TERM ENDING ON DECEMBER 31, 2025, FOR TOTAL NOT-TO-EXCEED AMOUNT OF $50,000 TO CONDUCT A HOLISTIC REVIEW

AND UPDATE OF THE MUNICIPAL CODE TO MODERNIZE THE CODE UTILIZING READER

FRIENDLY TEXT AND FORMAT, ELIMINATE OUTDATED AND REDUNDANT PROVISIONS,

ELIMINATE INCONSISTENCIES AND CONTRADICTIONS, SIMPLIFY CODE PROVISIONS,

AND TO ENSURE CONSISTENCY AND COMPLIANCE WITH CURRENT STATE AND

FEDERAL LAW
WHEREAS, the City of Banning Code of Ordinances consists of 18 Titles that has been amended periodically over time; and
WHEREAS, the current Code may include policies and procedures that may be better suited for adoption by the City Council via resolution rather than by codified ordinance; and WHEREAS, the goal of this project is to conduct a holistic review and update of the Municipal Code to modernize the code utilizing reader friendly text and format, eliminate outdated and redundant provisions, eliminate inconsistencies and contradictions, simplify code provisions, and to ensure consistency and compliance with current state and federal law; and WHEREAS, this will be the City’s first comprehensive update and the City expects that the Municipal Code may require significant modifications to reflect current needs of the community and expects that the new code should reflect best practices with respect to the content and administration of the code; and
WHEREAS, comprehensive update needs to be user friendly for staff, property owners, and businesses by 1) removing legalese and jargon unfamiliar to the lay person, 2) improving clarity and overall functionality, and 3) reflect regulatory best practices. It is also envisioned that the update may include tables and illustrations whenever possible to help convey concepts.

Lastly, the updated code must be consistent with current case, state, and federal laws.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:

SECTION 1. The City Council approves the Professional Services Agreement with American Legal Publishing, LLC for the Municipal Code Update Project for a term ending December 31, 2025, in an amount of $50,000 and subsequent amendments to extend the Agreement for up to one additional one-year term upon satisfactory performance, with a total not-to-exceed amount of $50,000.

SECTION 2. The City Council authorizes the City Manager to make non-substantive changes to the Professional Services Agreement and to execute the Professional Services Agreement with American Legal Publishing, LLC on behalf of the City Council.

SECTION 3. The City Council authorizes the City Manager, or designee, to make necessary budget adjustments, appropriations, and transfers related to this resolution. 1062
Resolution 2024-142

SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 27th day of August 2024.

Alberto Sanchez, Mayor
City of Banning
ATTEST:

Caroline Patton, Administrative City Clerk
City of Banning
APPROVED AS TO FORM:

Serita R. Young, City Attorney
Richards, Watson & Gershon
1063
Resolution 2024-142

CERTIFICATION:

I, Caroline Patton, Administrative City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2024-142, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 27th day of August 2024 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Caroline Patton, Administrative City Clerk
City of Banning, California
1064
Resolution 2024-142

EXHIBIT A
Contract with American Legal Publishing, LLC
1065
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AGREEMENT FOR PROFESSIONAL SERVICES (C01061) FOR THE

MUNICIPAL CODE UPDATE PROJECT BY AND BETWEEN CITY OF

BANNING AND AMERICAN LEGAL PUBLISHING, LLC
THIS AGREEMENT FOR PROFESSIONAL SERVICES (herein “Agreement”) is made and entered into this day: ___________________, (“Effective Date”) by and between the CITY OF BANNING, a California municipal corporation (“City”) and American Legal Publishing, LLC, a Delaware Limited Liability Company, (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS
A. City has sought by issuance of a Request for Proposal (RFP #23-050) for the performance of the services to recodify the municipal code for the city of Banning, CA and as further defined and described particularly in Article 1 of this Agreement.

B. Consultant, following submission of a proposal for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by City to perform those services.

C. The Parties desire to formalize the selection of Consultant for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein.

D. Pursuant to the City of Banning’s Municipal Code, City has authority to enter into this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1. SERVICES OF CONSULTANT

1.1 Scope of Services.

In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit A and incorporated herein by this reference, which services may be referred to herein as the “Services” hereunder. As a material inducement to City entering into this Agreement, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the Services contemplated herein. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all Services described herein. Consultant covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, and fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional 1066
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standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances.

1.2 Contract Documents and Exhibits.

This Agreement includes the Request for Proposal and Consultant’s accepted proposal (“Contract Documents”), both of which are on file with the City and incorporated herein by this general reference as though fully set forth herein. Exhibit A (Scope of Services), Exhibit B (Special Requirements), Exhibit C (Schedule of Compensation), and Exhibit D (Schedule of Performance) also constitute a part of this Agreement and are incorporated into this Agreement by this reference. Except as set forth in Section 1.10 regarding Exhibit B, this Agreement controls over the Contract Documents and the provisions in Exhibits A, B and C.

1.3 Compliance with Law.

Consultant shall keep itself informed concerning all ordinances, resolutions, statutes, rules, and regulations of City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered, and shall render all Services hereunder in accordance therewith.

1.4 Licenses, Permits, Fees and Assessments.

Consultant shall obtain and maintain during the term of this Agreement, at its sole cost and expense, all necessary licenses, permits, certificates and approvals required by law for the performance of Services under this Agreement, including a City business license. Consultant shall have the sole obligation to pay for all fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for Consultant’s performance of the Services required by this Agreement. Consultant shall indemnify, defend and hold harmless City, its officers, employees or agents, against all such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.5 Familiarity with Services.

By executing this Agreement, Consultant warrants that Consultant: (i) has thoroughly investigated and considered the Scope of Services to be performed, (ii) has carefully considered how the Services should be performed, and (iii) fully understands the facilities and any difficulties and restrictions attending performance of the Services under this Agreement. If the Services involve work upon any site, Consultant warrants that Consultant has or will investigate the site and is or will be fully acquainted with the conditions existing therein, prior to commencement of Services hereunder. Should Consultant discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant’s risk until written instructions are received from the Contract Officer (defined in Section 1.12. A).

1.6 Prevention of Loss and Damages.

Consultant shall adopt reasonable methods during the Term (defined in Section 3.4) to furnish continuous protection to the work product, and the equipment, materials, papers, 1067
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documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence.

1.7 Further Responsibilities of Parties.

Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonable necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither Party shall be responsible to perform the Services of the other.

1.8 Additional Services.

City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra services beyond that specified in the Scope of Services or to make changes by altering, adding to or deducting from the Services. No such extra services may be undertaken unless a written order is first given by the Contract Officer to Consultant, which written order incorporates therein an adjustment in (i) the Contract Sum (as defined in Section

2.1), and/or (ii) the Schedule of Performance, (as defined in Section 3.2), and which written order is approved in writing by Consultant. Any increase in compensation of up to ten percent (10%) of the Contract Sum, or $25,000, whichever is less; or in the Schedule of Performance of up to one hundred eighty (180) days may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by City Council. It is expressly understood by Consultant that the provisions of this Section shall not apply to Services which are specifically set forth in the Scope of Services or which are reasonably contemplated therein. Consultant hereby acknowledges that it accepts the risk that the Services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor.

1.9 Facilities and Equipment.

Except as otherwise provided, Consultant shall, at its own cost and expense, provide all facilities and equipment necessary to perform the Services required by this Agreement. City shall make available to Consultant only physical facilities such as desks, filing cabinets, and conference space (“City Facilities”), as City deems, in its sole discretion, to be reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and the information in possession of City. The location, quality, and time of furnishing City Facilities shall be in the sole discretion of City. In no event shall City be required to furnish any facilities that may involve incurring any direct expense, including but not limited to a computer, long distance telephone, network data, internet or other communication charges, vehicles and reproduction facilities.

1.10 Special Requirements.

Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit B and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit B and any other provisions of this Agreement, the provisions of Exhibit B shall govern. 1068
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1.11 Corrections.

In addition to the indemnification obligations set forth in Article 4, and Sections 1.4, 1.13,

5.3, 5.4, and 6.3, Consultant shall correct, at its expense, all errors in the Services which may be disclosed during City’s review of Consultant’s report or plans. Should Consultant fail to make such correction(s) in a reasonably timely manner, such correction(s) may be made by City, and the cost thereof shall be charged to Consultant. In addition to all other available remedies, City may deduct the cost of such correction(s) from any retention amount held by City, or may withhold payment otherwise owed Consultant under this Agreement up to the amount of the cost of correction(s), as provided in Section 6.3.

1.12 Party Representatives.

A. Contract Officer: For the purposes of this Agreement, the Contract Officer shall be the City Manager, or such other person designated in writing by the City Manager (“Contract Officer”). Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement.

B. Principals and Personnel of Consultant.
1) Consultant Representative: The following principal of Consultant is hereby designated as being the Consultant Representative authorized to act on Consultant’s behalf regarding the Services specified herein and make all decisions in connection therewith:

Name Title
Colleen T. Engle Codification Consultant
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Consultant Representative were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Consultant Representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be under the exclusive direction and control of the Consultant Representative. For purposes of this Agreement, the foregoing Consultant Representative may not be replaced nor may their responsibilities be substantially reduced or reassigned by Consultant without the express written approval of City. It shall be Consultant’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services, and Consultant shall refer any decisions which must be made by City to the Contract Officer. 2) Consultant’s Personnel: Consultant has, or will secure at its own expense, all personnel required to perform the Services required under this Agreement. All of the Services required under this Agreement shall be performed by Consultant or under its supervision, and all personnel engaged in the Services shall be qualified to perform such Services. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and sub-contractors, if any, assigned to perform the Services required under this Agreement. 1069
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Consultant shall notify City of all changes in Consultant’s staff and sub-contractors, if any, assigned to perform the Services required under this Agreement, prior to and during any such performance. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires to reassign any staff or sub-contractor of Consultant, City shall give notice as set forth in Section 8.1. Consultant shall, immediately upon the receipt of the notice to re-assign staff from City, reassign such person or persons.

1.13 Independent Contractor.

A. Consultant is an independent contractor and not an employee of City.

Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. All Services provided pursuant to this Agreement shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the Services. Any additional personnel performing Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

B. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from Consultant’s personnel practices. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section.

1.14 Prohibition Against Subcontracting or Assignment.

The experience, knowledge, capability and reputation of Consultant, the Consultant Representative and employees were a substantial inducement for City to enter into this Agreement.

Therefore, Consultant shall not contract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty-five percent (25%) of the present ownership and/or control of Consultant, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this 1070
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Agreement shall be void. No approved transfer shall release Consultant or any surety of Consultant of any liability hereunder without the express consent of City.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.

2.1 Contract Sum.

Subject to any limitations set forth in this Agreement, as full compensation for Services satisfactorily rendered, City shall pay Consultant at the hourly rates set forth in the “Schedule of Compensation” attached hereto as Exhibit C and incorporated herein by this reference. In no event shall Consultant be paid more than Fifty Thousand Dollars ($50,000.00) (the “Contract Sum”). The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by City. Coordination of the performance of the Services with City is a critical component of the Services. If Consultant is required to attend additional meetings to facilitate such coordination, Consultant shall not be entitled to any additional compensation for attending those meetings.

2.2 Method of Compensation.

The method of compensation may include: (i) a lump sum payment upon completion of the Services, (ii) payment in accordance with specified tasks or the percentage of completion of the Services, (iii) payment for time and materials based upon Consultant’s rates as specified in the Schedule of Compensation, provided that time estimates are provided for the performance of sub tasks, but not exceeding the Contract Sum or (iv) such other methods as may be specified in the Schedule of Compensation.

2.3 Reimbursable Expenses.

City shall only reimburse Consultant for those actual and necessary expenses expressly set forth in Exhibit C. Reimbursable expenses may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual sub-contractor expenses of an approved sub-contractor pursuant to Section 1.14, and only if specified in the Schedule of Compensation.

2.4 Unauthorized Services and Expenses.

City will not pay for any Services or reimburse for any expenses incurred which are not specified in the Scope of Services, unless authorized in writing as set forth in Section 1.8 of this Agreement. City shall make payment for such authorized additional Services and expenses in accordance with Article 2 of this Agreement.

2.5 Invoices.

Each month Consultant shall furnish to City an original invoice for all Services performed and expenses incurred during the preceding month. Each such invoice shall contain all of the information set forth in Section III of Exhibit C to this Agreement. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of the 1071
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Agreement. Consultant shall not invoice City for any duplicate Services performed by more than one person.

City shall independently review each invoice submitted by Consultant to determine whether the Services performed and expenses incurred are in compliance with the provisions of this Agreement. City will use its best efforts to cause Consultant to be paid within thirty (30) days of receipt of Consultant’s correct and undisputed invoice, except as to any charges for Services performed or expenses incurred by Consultant which are disputed by City, or as provided in Section 6.3. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City of any invoice provided by Consultant shall not constitute waiver of any rights or remedies provided herein or any applicable law.

2.6 Waiver.

Payment to Consultant for Services performed pursuant to this Agreement shall not be deemed to waive any defects in Services performed by Consultant.

ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

Time is of the essence in the performance of this Agreement; provided, however, that the foregoing shall not be construed to limit or deprive a Party of the benefits of any grace or use period allowed in this Agreement.

3.2 Schedule of Performance.

Consultant shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all Services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit D and incorporated herein by this reference.

3.3 Force Majeure.

The time period(s) specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement may be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant. Such unforeseeable consequences include, but are not restricted to, acts of God or public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified, subject to the provisions of Section 1.8. The Contract Officer’s determination (or the City Council’s determination, in the event the period of enforced delay exceeds the period specified in Section

1.8) shall be final and conclusive upon the Parties to this Agreement. In no event shall Consultant 1072
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be entitled to recover damages against City for any delay in the performance of this Agreement, however caused; Consultant’s sole remedy shall be the extension of the Agreement pursuant to this Section.

3.4 Term.

The Term of this Agreement shall be from the Effective Date through December 31, 2025, unless sooner terminated as provided in Article 6 of this Agreement or extended as provided in Sections 1.8 and 3.3 of this Agreement. Maximum term and any subsequent amendment or modification shall not exceed five (5) years.

ARTICLE 4. INSURANCE AND INDEMNIFICATION

4.1 Minimum Scope and Limits of Insurance.

Consultant shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:

A. Commercial General Liability Insurance with a minimum limit of $1,000,000.00 per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of $2,000,000.00 per project or location. If Consultant is a limited liability company, the commercial general liability coverage shall be amended so that Consultant and its managers, members, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.

B. Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of $1,000,000.00 per accident for bodily injury and property damage. If Consultant does not use any owned, non-owned or hired vehicles in the performance of Services under this Agreement, Consultant shall obtain a non-owned auto endorsement to the Commercial General Liability policy.

C. Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of $1,000,000.00 per accident for bodily injury or disease. If Consultant has no employees while performing Services under this Agreement, workers’ compensation policy is not required; however, Consultant shall execute a declaration that it has no employees.

D. Professional Liability/Errors and Omissions Insurance with minimum limits of $1,000,000.00 per claim and in the aggregate.

4.2 Acceptability of Insurers.

The insurance policies required under this Article shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest 1073
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edition of the A.M. Best Insurance Rating Guide. Self-insurance shall not be considered to comply with the insurance requirements under this Article.

4.3 Additional Insured.

The commercial general and automobile liability policies shall contain an endorsement naming City, its officers, employees, agents and volunteers as additional insureds.

4.4 Primary and Non-Contributing.

The insurance policies required under this Article shall apply on a primary noncontributing basis in relation to any other insurance or self-insurance available to City. Any insurance or self-insurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

4.5 Consultant’s Waiver of Subrogation.

The insurance policies required under this Article shall not prohibit Consultant and Consultant’s employees, agents or sub-contractors from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against City.

4.6 Deductibles and Self-Insured Retentions.

Any deductibles or self-insured retentions must be declared to and approved by City. At City’s option, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City; or Consultant shall procure a bond guaranteeing payment of losses and expenses.

4.7 Cancellations or Modifications to Coverage.

Consultant shall not cancel, reduce or otherwise modify the insurance policies required by this Article during the term of this Agreement. The commercial general and automobile liability policies required under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail 30 days’ prior written notice to City. If any insurance policy required under this Article is canceled or reduced in coverage or limits, Consultant shall, within two (2) Business Days (as defined in Section 8.12) of notice from the insurer, phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.

4.8 City Remedy for Noncompliance.

If Consultant does not maintain the policies of insurance required under this Article in full force and effect during the term of this Agreement, or in the event any of Consultant’s policies do not comply with the requirements under this Article, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Consultant’s expense, the premium thereon.

Consultant shall promptly reimburse City for any premium paid by City, or City may withhold amounts sufficient to pay the premiums from payments due to Consultant. 1074
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4.9 Evidence of Insurance.

Prior to the performance of Services under this Agreement, Consultant shall furnish the City Clerk with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Article. The endorsements are subject to City’s approval. Consultant may provide complete, certified copies of all required insurance policies to City. Consultant shall maintain current endorsements on file with the City Clerk.

Consultant shall provide proof to the City Clerk that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall furnish such proof at least two (2) weeks prior to the expiration of the coverages.

4.10 Indemnity Requirements not Limiting.

Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duty to indemnify City under this Agreement.

4.11 Sub-contractor Insurance Requirements.

Consultant shall require each of its sub-contractors that perform Services under this Agreement to maintain insurance coverage that meets all of the requirements of this Article.

4.12 Indemnification, Hold Harmless, and Duty to Defend.

A. Indemnification of City.
1) To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith and the payment of all consequential damages (collectively “Liabilities”), at law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, sub-contractors, materialmen, consultants or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Liabilities with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith.
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2) Consultant shall pay all required taxes on amounts paid to Consultant under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant shall fully comply with the workers’ compensation law regarding Consultant and Consultant’s employees. Consultant shall indemnify and hold City harmless from any failure of Consultant to comply with applicable workers’ compensation laws. City may offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this subparagraph A.2. 3) Consultant shall obtain executed indemnity agreements with provisions identical to those in this Article from each and every sub-contractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement.

If Consultant fails to obtain such indemnity obligations, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities at law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant’s sub-contractor, its officers, agents, servants, employees, sub-contractors, materialmen, consultants or their officers, agents, servants or employees (or any entity or individual that Consultant’s sub-contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties.

B. Workers’ Compensation Acts not Limiting. Consultant’s indemnifications and obligations under this Article, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.

C. Insurance Requirements not Limiting. City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The indemnities in this Article shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liabilities, tax, assessment, penalty or interest asserted against City.

D. Survival of Terms. Consultant’s indemnifications and obligations under this Article shall survive the expiration or termination of this Agreement.

ARTICLE 5. RECORDS, REPORTS, AND RELEASE OF INFORMATION

5.1 Service Records.

Consultant shall keep, and require sub-contractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and Services performed hereunder (the “Service Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer 1076
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to evaluate the performance of such Services. Any and all such Service Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such Service Records at all times during normal business hours of City, including the right to inspect, copy, audit and make copies and transcripts from such Service Records. Such Service Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Service Records in the event any audit is required. In the event of dissolution of Consultant’s business, custody of the Service Records may be given to City, and access shall be provided by Consultant’s successor in interest (“Consultant’s Successor”). If custody of the Service Records is given to Consultant’s Successor, Consultant shall give written notice to City of the transfer of the Service Records to Consultant’s Successor. The notice shall include contact information (address and telephone number) for Consultant’s Successor, and access shall be provided to City by Consultant’s Successor.

5.2 Reports.

Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that City is greatly concerned about the cost of Services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein, Consultant shall promptly notify the Contract Officer of that fact, circumstance, technique or event and the estimated increased or decreased cost related thereto.

5.3 Ownership of Documents.

All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “Consultant Documents”) prepared by Consultant, its employees, sub-contractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement. Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Consultant Documents hereunder. Any use, reuse or assignment of such completed Consultant Documents for other projects and/or use of uncompleted Consultant Documents without specific written authorization by Consultant will be at City’s sole risk and without liability to Consultant, and Consultant’s guarantee and warranties shall not extend to such use or assignment. Consultant may retain copies of such Consultant Documents for its own use. Consultant shall have an unrestricted right to use the concepts embodied therein. All sub-contractors shall provide for assignment to City of all Consultant Documents prepared by them; and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom.

5.4 Confidentiality and Release of Information.

A. All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the 1077
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public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer.

B. Consultant, its officers, employees, agents or sub-contractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the Services performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant gives City notice of such court order or subpoena.

C. If Consultant, or any officer, employee, agent or sub-contractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorneys’ fees, caused by or incurred as a result of Consultant’s conduct.

D. Consultant shall promptly notify City should Consultant, its officers, employees, agents or sub-contractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any Party regarding this Agreement and the Services performed thereunder. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite the response.

ARTICLE 6. ENFORCEMENT OF AGREEMENT AND TERMINATION

6.1 California Law.

This Agreement, and any dispute arising from the relationship between the Parties to this Agreement, shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Riverside.

6.2 Disputes; Default.

A. In the event that City determines Consultant is in default under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any Services performed after the date of default. In addition to the provisions of Section 4.8, and the right to terminate pursuant to Section 6.7, if the City Manager determines that Consultant is in default in the performance of any of the terms or conditions of this Agreement, City may serve Consultant with written notice of the default. Consultant shall have ten (10) calendar days after service upon it of the notice in which to cure the default by rendering a satisfactory performance. 1078
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In the event that Consultant fails to cure its default within such period of time, City may, notwithstanding any other provision of this Agreement, terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

B. In the event of termination pursuant to this Section, City may take over the Services and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of set-off or partial payment of the amounts owed City as provided in Section 6.3.

6.3 Retention of Funds.

Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement): (i) any payment amount of which may be in dispute hereunder or which is necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, (ii) all amounts retained pursuant to the provisions of Section 4.8, (iii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement, and (iv) all payments due or that become due to Consultant during the period that Consultant or any of its sub-contractors fail to maintain any required insurance in full force and effect, until notice is received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to City, as provided in Section 4.9, above. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Consultant to insure, indemnify, and protect City as elsewhere provided herein.

6.4 Waiver.

Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement.

Acceptance by City of any Services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver.

Any waiver by either Party of any default must be in writing, and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

6.5 Rights and Remedies are Cumulative.

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party 1079
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of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

6.6 Legal Action.

In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant must file a statutory claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in order to pursue a legal action against City under this Agreement.

6.7 Termination Prior to Expiration of Term.

This Article 6 shall govern any termination of this Agreement except as specifically provided in Section 6.2 for termination for default of Consultant. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Consultant, except that where termination is due to the fault of Consultant, the period of notice may be a shorter time as may be determined by the Contract Officer. In addition, Consultant reserves the right to terminate this Agreement at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of City, the period of notice may be a shorter time as Consultant may determine. Upon receipt of any notice of termination, Consultant shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer. Except where Consultant has initiated termination, Consultant shall be entitled to compensation for all Services rendered prior to the effective date of the notice of termination and for any Services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 6.3. In the event Consultant has initiated termination, Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating Party need not provide the non-terminating Party with the opportunity to cure pursuant to Section 6.2.

6.8 Attorneys’ Fees.

In any litigation or other proceeding by which a Party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing Party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees. Attorneys’ fees shall include attorney’s fees on any appeal, and in addition the Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. 1080
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ARTICLE 7. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

7.1 Non-liability of City Officers and Employees.

No officer or employee of City shall be personally liable to Consultant, or Consultant’s Successor, in the event of any default or breach by City or for any amount which may become due to Consultant or Consultant’s Successor, or for breach of any obligation of the terms of this Agreement.

7.2 Conflict of Interest.

Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of Services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or sub-contractor without the express written consent of the Contract Officer. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

No officer or employee of City shall have any direct or indirect financial interest in this Agreement within the scope of Government Code section 1090, nor shall any such officer or employee make, participate in making, or use his or her official position to influence, any City decision relating to the Agreement which has a material financial effect on his or her financial interests or the financial interests of any corporation, partnership or association in which he or she is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given, and will not pay or give any third party any money or other consideration for obtaining this Agreement.

Consultant and its officers, employees, associates and sub-contractors, if any, shall comply with all conflict of interest statutes of the State of California applicable to Consultant’s Services under this Agreement, including the Political Reform Act (Gov. Code § 81000, et seq.) and Government Code Section 1090. During the term of this Agreement, Consultant may perform similar services for other clients; but Consultant and its officers, employees, associates and subcontractors shall not, without the Contract Officer’s prior written approval, perform services for another person or entity for whom Consultant is not currently performing services that would require Consultant or one of its officers, employees, associates or sub-contractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Consultant shall incorporate a clause substantially similar to this Section into any subcontract that Consultant executes in connection with the performance of this Agreement.

7.3 Covenant Against Discrimination.

Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, or ancestry in the performance of this Agreement.

Consultant shall take affirmative action to insure that applicants are employed, and that employees 1081
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are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, or ancestry, or other protected class.

7.4 Unauthorized Aliens.

Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of Services covered by this Agreement, and should the any liability or sanctions be imposed against City for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by City.

ARTICLE 8. MISCELLANEOUS PROVISIONS

8.1 Notices.

Any notice, demand, request, document, consent, approval, bill, invoice, report or other communication required or permitted under this Agreement shall be in writing and conclusively deemed effective: (a) on confirmed delivery by courier service or overnight delivery service during Consultant’s and City’s regular business hours; or (b) three (3) Business Days after deposit in the United States mail, by certified or registered mail, and addressed to the Party to be notified as set forth below:

If to City Attn: Lincoln Bogard
Deputy City Manager
City of Banning
99 East Ramsey Street
Banning, California 92220
Email: [email protected]
With a courtesy copy to: Serita R. Young, City Attorney Richards, Watson & Gershon
350 South Grand Avenue, 37th Floor
Los Angeles, California 90071
Email: [email protected]
If to Consultant: Attn: Ray Bollhauer
President
American Legal Publishing, LLC
525 Vine Street, Suite 310
Cincinnatic, OH 45202
Email: [email protected]
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8.2 Interpretation.

The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

8.3 Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

8.4 Integration; Amendment.

This Agreement, and all exhibits referred to in this Agreement, constitute the final, complete and exclusive statement of the terms of the agreement between the Parties pertaining to the subject matter of this Agreement and supersede all other and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the Parties, and none shall be used to interpret this Agreement. No Party has been induced to enter into this Agreement by, nor is any Party relying on, any representation or warranty except those expressly set forth in this Agreement. No amendment to or modification of this Agreement, nor any provision or breach hereof waived, shall be valid unless made in writing and approved by Consultant and by City Council. The Parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

8.5 Severability.

In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties hereunder unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

8.6 Mutual Cooperation.

A. City’s Cooperation. City shall provide Consultant with all pertinent data, documents and other requested information as is reasonably available for Consultant’s proper performance of the Services required under this Agreement.

B. Consultant’s Cooperation. In the event any claim or action is brought against City relating to Consultant’s performance of Services rendered under this Agreement, Consultant shall render any reasonable assistance that City requires. 1083
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8.7 No Third Party Beneficiaries Intended.

This Agreement is made solely for the benefit of the Parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.

8.8 Final Payment Acceptance Constitutes Release.

The acceptance by Consultant of the final payment made under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Consultant for anything done, furnished or relating to Consultant’s Services. Acceptance of payment shall be any negotiation of City’s check or the failure to make a written extra compensation claim within ten (10) calendar days of the receipt of that check. However, approval or payment by City shall not constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, sub-contractors and agents for the accuracy and competency of the information provided and/or Services performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by City for any defect or error in the Services prepared by Consultant, its employees, sub-contractors and agents.

8.9 Non-Appropriation of Funds.

Payments to be made to Consultant by City for Services performed within the current fiscal year which are within the current fiscal budget and within an available, unexhausted fund. In the event that City does not appropriate sufficient funds for payment of Consultant’s Services beyond the current fiscal year, this Agreement shall cover payment for Consultant’s Services only to the conclusion of the last fiscal year in which City appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year.

8.10 Headings.

The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the Parties to this Agreement.

8.11 Word Usage.

Unless the context clearly requires otherwise, (a) the words “shall,” “will” and “agrees” are mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.

8.12 Business Days.
“Business Days” refers to days that the Banning City Hall is open for business.

8.13 Corporate Authority.

The persons executing this Agreement on behalf of the Parties hereto warrant that (i): such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver 1084
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this Agreement on behalf of that Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which that Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.

8.14 Electronic Signatures.

Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (“electronic signature”). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF the Parties hereto have executed this Agreement the day and year first hereinabove written.

CITY OF BANNING CONSULTANT
Douglas Schulze, Date
City Manager
NAME: Date
TITLE:

NAME: Date
TITLE:

ATTEST:

Tax ID No.

Caroline Patton Date
Administrative City Clerk
Address:

APPROVED AS TO FORM:

Richards, Watson & Gershon
City Council Approval: _____________
Serita R. Young Date
City Attorney
NOTE: PROOF OF AUTHORITY TO BIND CONTRACTING PARTY REQUIRED. APPROPRIATE

ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.
1086
Exhibit “A”-1
EXHIBIT “A”

SCOPE OF SERVICES
I. Consultant will perform the following Services in connection with providing recodification of the City of Banning municipal code prepared in connection therewith:

II. As part of the Services, Consultant will prepare and deliver the following tangible work products and services to City:
1087
Exhibit “A”-2
1088
Exhibit “A”-3
1089
Exhibit “A”-4
III. In addition to the requirements of Parts I and II of this Scope of Services, during the performance of the Services, Consultant will keep City appraised through periodic status reports regarding the performance of the Services under this Agreement as set forth below and in Section 5.2, by the following means:
a. In-person meetings and/or teleconferences.
b. Email updates/questions to applicant team and City while reviews are underway.
c. Conference calls.

IV. All work product is subject to review and acceptance by City. If the City determines that any work product is unacceptable, for any reason, it must be revised by Consultant without additional charge to City until found satisfactory and accepted by City. 1090
Exhibit “B”-1
EXHIBIT “B”

SPECIAL REQUIREMENTS
None
1091
Exhibit “C”-1
EXHIBIT “C”

SCHEDULE OF COMPENSATION
I. Consultant shall perform the following tasks (“Tasks”) at the rates attached as Exhibit C-1.

II. Within the budgeted amounts for each Task, and with the approval of the Contract Officer, funds may be shifted from one Task sub-budget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Services are approved per Section 1.8.

III. City will compensate Consultant for the Services performed upon submission of a valid invoice. Each invoice is to include:

A. Line items for all personnel describing the Services performed, the number of hours worked, and the hourly rate.

B. Line items for all materials and equipment properly charged to the Services.

C. Line items for all other approved reimbursable expenses claimed, with supporting documentation.

D. Line items for all approved sub-contractor labor, supplies, equipment, materials, and travel properly charged to the Services. 1092
Exhibit “C-1”-1
EXHIBIT “C-1”
CONSULTANT’S BILLING RATE AND TASK SCHEDULE
1093
Exhibit “D-1”
EXHIBIT “D”

SCHEDULE OF PERFORMANCE
I. Consultant shall perform all Services timely, and deliver the specified tangible work products to City in accordance with the schedule attached as Exhibit D-1.

II. The Contract Officer may approve extensions for performance of the Services in accordance with Sections 1.8 and 3.3.
1094

REQUEST FOR PROPOSAL

MUNICIPAL CODE UPDATE PROJECT - CITY OF BANNING, CA
RFP-23-050

CITY OF BANNING, CA
http://www.banningca.gov
RELEASE DATE: May 10, 2024
DEADLINE FOR QUESTIONS: June 11, 2024
RESPONSE DEADLINE: June 19, 2024, 11:59 pm
RESPONSES MAY BE SUBMITTED ELECTRONICALLY TO:
https://secure.procurenow.com/portal/banning-ca
1095
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
I. Notice ........................................................................................

II. Introduction ..............................................................................

III. Prerequisites .............................................................................

IV. Scope of Work ...........................................................................

V. Vendor Questionnaire...............................................................

VI. Submission Instructions And Inquiries ......................................

VII. Evaluation Criteria.....................................................................

VIII. Terms And Conditions ...............................................................

Attachments:

A - Professional Services Agreement Sample
1096
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
I. Notice

REQUEST FOR PROPOSALS (RFP)
Municipal Code Update Project - City of Banning, CA
Dear Proposers:

The City of Banning (hereinafter referred to as the “City”) is requesting proposals from a qualified public entity or private firm, to establish a contract for the scope of services outlined in this request for proposals.

NOTICE IS HEREBY GIVEN that online price and document submittals must be uploaded to the online bidding system in accordance with the instructions included herein, on or before the time and date set forth in the schedule of events. It shall be the responsibility of the proposer to upload their proposal before the announced time. However, responses may be submitted at any time prior to the deadline. (Submitted proposals may be withdrawn and resubmitted at any time prior to the deadline, and cannot be viewed by City staff until the close date and time.) SOLICITATION DOCUMENTS: To obtain a copy of the solicitation documents, please visit https://secure.procurenow.com/portal/banning-ca. If you are not currently registered with the City of Banning through OpenGov, please create an account and subscribe to this project for notifications. Proposals may only be submitted by companies who are listed as a prospective bidder on the electronic bidding website for each project that they wish to submit a response to.

Firms must also check the web site periodically for addenda information as failure to download and acknowledge any and all addenda in the submittal will result in proposer disqualification.

RESPONSIVE PROPOSALS: Once listed on the prospective bidders list, companies may submit their proposals on the electronic bidding system. The City will not accept proposals submitted by companies who are not on the prospective bidders list, or from companies who have submitted a proposal via facsimile, email, mail, or any other format not permitted by this solicitation.

Further instructions for submitting proposals are explained in this solicitation. Companies are to adhere to all of the submittal instructions and requirements outlined in this solicitation in order to be considered responsive to this request for proposals. 1097
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
II. Introduction
II.A Summary
The City of Banning (“City”) is seeking a qualified entity or individual (“Company”) to provide the services listed in the Scope of Work.

The City anticipates selecting one firm to perform the services.

Proposals are requested from Companies that have a demonstrated ability to perform the tasks identified in this Request for Proposal (“RFP”).

II.B Background
The City of Banning is strategically located astride Interstate 10 between the Inland Empire and the Coachella Valley in the San Gorgonio Pass. The City, incorporated in 1913, has a rich and colorful history.

Initially Banning served as a stagecoach and railroad stop between the Arizona territories and Los Angeles. This history has contributed to the present-day spirit of pioneer resourcefulness and "can do" attitude that is so prevalent in the community.

Banning is a friendly and wholesome place to work and raise a family. Desirable executive housing is available, as well as moderate and lower income housing. Clean air, ample water supplies and the memorable and inspiring scenic vistas of both Mt. San Gorgonio and Mt. San Jacinto, the 2 tallest peaks in Southern California, are additional amenities which make the City of Banning a logical choice as a development opportunity in the Southern California area.

II.C Contact Information
Barbara Mason
Purchasing Manager
99 E. Ramsey Street
Banning, CA 92220
Email: [email protected]
Phone: (951) 922-3121
Department:

Administrative Services
II.D Timeline
This request for proposal will be governed by the following tentative schedule. All dates are subject to change at the discretion of the City.

Release Project Date May 10, 2024
1098
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
Pre-Proposal Meeting (Mandatory) June 3, 2024, 9:00am
Microsoft Teams meeting
Join on your computer, mobile app or room
device
https://teams.microsoft.com/l/meetupjoin/19%3ameeting_NDI2ODg1OGEtZGVkMS00 MmRkLTljNGMtM2I4YWJmYzI0ZWY5%40threa
d.v2/0?context=%7b%22Tid%22%3a%2228cb6
a6f-78fe-445d-acfdcf07066168f7%22%2c%22Oid%22%3a%22f9c1 cfd3-52ec-497e-81d5-e375c8c28269%22%7d
Meeting ID: 226 063 519 929
Passcode: Ha8EBJ
If you have trouble logging in, please contact
Barbara Mason at (951) 922-3121.

Question Submission Deadline June 11, 2024, 11:59pm
Proposal Submission Deadline June 19, 2024, 11:59pm
Anticipated Contractor Selection Date July 9, 2024
1099
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
III. Prerequisites
Proposals will only be considered from Companies that meet the following prerequisites:

III.A Years of experience
Have at least five (5) years’ of experience, within the past seven (7) years under a legally registered business name, in providing services of a similar type and scope as described in the Scope of Services. Have not filed for bankruptcy under any business name over the past five (5) years.

III.B OpenGov Registration
Have created an account on OpenGov. Companies can register at: https://secure.procurenow.com/portal/banning-ca
Once registered, Companies must download this solicitation in order to appear on the Bidder’s List as a “Prospective Bidder.” Companies that fail to specifically download this solicitation will not appear on the Bidders’ List and will be unable to participate or be considered for this RFP.

III.C Mandatory Pre-Proposal Meeting
All prospective Companies must attend the mandatory pre-proposal meeting on Monday, June 3, 2024 at 9:00 am to be held at:

Microsoft Teams meeting Join on your computer, mobile app or room device https://teams.microsoft.com/l/meetupjoin/19%3ameeting_NDI2ODg1OGEtZGVkMS00MmRkLTljNGMtM2I4YWJmYzI0ZWY5%40thread. v2/0?context=%7b%22Tid%22%3a%2228cb6a6f-78fe-445d-acfdcf07066168f7%22%2c%22Oid%22%3a%22f9c1cfd3-52ec-497e-81d5-e375c8c28269%22%7d Meeting ID: 226 063 519 929 Passcode: Ha8EBJ If you have trouble logging in, please contact Barbara Mason at (951) 922-3121.

Attendance is mandatory at the pre-proposal meeting. The meeting will begin promptly at the time listed in the schedule. No admittance will be allowed once the meeting has begun.

Proposals from prospective Proposers not in attendance at this mandatory meeting will not be considered.

III.D Licenses
If applicable, Company and/or its key personnel, shall hold an appropriate license for the Company’s discipline and the Services on the date the Proposal is submitted. 1100
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
III.E Department of Industrial Relations Registration
If applicable, Company shall have registered with the Department of Industrial Relations and any other required organizations.
1101
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
IV. Scope of Work
IV.A Description of Services
The City of Banning Code of Ordinances consists of 18 Titles that has been amended periodically over time. The current Code may include policies and procedures that may be better suited for adoption by the City Council via resolution rather than by codified ordinance. The goal of this project is to conduct a holistic review and update of the Municipal Code to modernize the code utilizing reader friendly text and format, eliminate outdated and redundant provisions, eliminate inconsistencies and contradictions, simplify code provisions, and to ensure consistency and compliance with current state and federal law.

As part of our evaluation process for the Municipal Code Update Project (“Project”), the City is seeking assistance from a highly qualified legal consultant or consultant team who has relevant experience updating municipal codes in the State of California for General Law Cities.

The current Municipal Code is accessible at:
https://library.municode.com/ca/banning/codes/code_of_ordinances Since this will be the City’s first comprehensive update, the City expects that the Municipal Code may require significant modifications to reflect current needs of the community. The new code should reflect best practices with respect to the content and administration of the code.

The comprehensive update needs to be user friendly for staff, property owners, and businesses by 1) removing legalese and jargon unfamiliar to the lay person, 2) improving clarity and overall functionality, and 3) reflect regulatory best practices. It is also envisioned that the update may include tables and illustrations whenever possible to help convey concepts. Lastly, the updated code must be consistent with current case, state, and federal laws.

IV.B General Approach
The selected consultant team should be experienced professionals who can work collaboratively with the local municipality to develop a clear, concise and reasonable set of regulations that implement the City’s goals. The following principals should guide the update process:
• Focus on improving the Code to eliminate deficient, outdated, overly complex or unnecessary provisions.
• Make the code internally consistent between Titles and Chapters. • Create a user-friendly code that is easy to administer by staff and easily understood by the residential and business community.
• Use plain, easily understood language in describing requirements and procedures. • Ensure compatibility with case law and current state and federal law. • Evaluate the code for regulatory gaps.
• Eliminate “repealed” or “deleted” titles, chapters, or sections. • Apply form-based concepts and development flexibility where appropriate. 1102
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
• Insert tables, graphics and/or illustrations wherever practical or necessary to convey concepts. • Conduct full legal review.

The consultant should propose an approach to understanding the existing code and the City’s needs. The approach should include gathering needed background information and analysis to suggest recommendations on how best to modernize the code. The existing conditions review should include, at a minimum, a thorough examination of the current Municipal Code.

IV.C Scheduling
The City desires the selected consultant to propose a reasonable and consistent schedule for completing the project in a timely manner. The City expects that each module will include the following:
• initial scoping meetings with relevant staff;
• an assessment of the current code language including a thorough review of relevant federal and state statutory requirements;
• an initial draft for review by relevant staff;
• participation in general updates and discussion with relevant staff; and • a final draft for consideration by the City Council.

IV.D Preliminary Assessment and Recommendations
Using information gained from the existing conditions review, the consultant shall prepare a code assessment and recommendations on how best to update the Municipal Code. This work should include a code audit of the existing conditions strengths, weaknesses, opportunities, and constraints relating to content, structure and compliance with current law. This shall be done on an ongoing basis with each Title of the Municipal Code being addressed incrementally throughout the project schedule.

A formal recommendation shall be prepared that summarizes the analysis, findings and preliminary recommendations on how best to approach revising the current Municipal Code by Title and overall.

IV.E Legal Review
The consultant firm shall conduct a full legal review of the Municipal Code. All legislation shall be researched and reviewed against state Constitution and state Law, including case law.

The consultant shall compare ordinances to other ordinances within the Municipal Code to determine if there are inconsistencies or conflicts within the legislation itself, identify preemptions and other potential problems, and ensure that the Municipal Code is in conformity with state law.
1103
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
IV.F Draft Municipal Code Language and Ordinances
Building upon the preliminary assessment and recommendations report and the legal review, the consultant shall prepare a draft of the updated Municipal Code on a per Title basis to be aligned with the City’s proposed project schedule.

The consultant will be responsible for the drafting of the ordinances, and the associated staff reports that will be presented to the City Council for adoption, as well as the public noticing language for all ordinances.

Applying the general direction principles listed above, each new Title should be clearly worded and organized to encourage the documents’ accessibility to a wide range of audiences. Graphics and tables should be used when possible to illustrate concepts.

The consultant shall prepare a companion document that carefully tracks all significant changes from the existing code to the newly proposed code by Title to ensure transparency.

IV.G Public Hearing Notices
Formal public hearing notices shall be prepared by the consultant, along with drafting a proposed calendar for when public hearing notices should be published.

IV.H City Council Meetings
The consultant will be responsible for preparing the staff reports and ordinances. The consultant shall also provide a representative to attend City Council Meetings related to this project.

IV.I Recodification of Municipal Code
The consultant shall prepare a final version of the updated Municipal Code to be adopted by the City Council. Upon adoption, the consultant shall provide the City with two (2) copies of the updated Code, printed in an 8-1/2 x 11 inch, double-column page format, housed in 3-post expandable binders.

The consultant shall include in this task, time to address any follow-up review with Municode to address any scrivener’s error prior to recodification of the Municipal Code.

IV.J Optional Services
The consultant may provide information on any additional product options or services related to the codification not outlined in this RFP, such as online code hosting services and maintaining the City of Banning Municipal Code. Include a complete description of the optional services, procedures involved and a separate identification of all applicable costs. 1104
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
V. Vendor Questionnaire
Proposals should be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Responses should emphasize the Company’s demonstrated capability to perform work of this type. Emphasis should be concentrated on completeness and clarity of content. Proposals shall adhere to the following format for organization and content. Proposals must be typed and arranged/divided in the following sequence to facilitate evaluation.

V.A Cover Letter*
The cover letter shall include a brief general statement of intent to perform the services and confirm that all elements of the RFP have been reviewed and understood. The letter shall include a brief summary of Company’s qualifications and Company’s willingness to enter into a contract under the terms and conditions prescribed by this RFP and in the Sample Agreement. The letter must identify a single person for contact during the RFP review process. *Response required
V.B Proposal*
A. Statement of Understanding and Approach
o This section must demonstrate an understanding of the Services. It should describe the general approach, organization and staffing required for the Services requested. If necessary, preliminary investigations, due diligence, and research shall be discussed in this section.
o This section should include the following:
 An implementation plan that describes in detail (i) the methods, including controls by which your firm or entity manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work.
 Detailed description of efforts your firm or entity will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Work" section.  Detailed project schedule, identifying all tasks and deliverables to be performed, durations for each task, and overall time of completion, including a complete transition plan. Include your plan to deal with fluctuation in service needs and any associated price adjustments.
1105
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
 Detailed description of specific tasks you will require from City staff. Explain what the respective roles of City staff and your staff would be to complete the tasks specified in the Scope of Work.
 Proposers are encouraged to provide additional innovative and/or creative approaches for providing the service that will maximize efficient, cost-effective operations or increased performance capabilities. In addition, the City will consider proposals that offer alternative service delivery means and methods for the services desired.
 Proposers are also requested to identify any City owned facilities or property which Proposer would propose to use or lease, purchase, or rent from the City in connection with the services to be performed, including information about the terms of any proposed lease, purchase or use of such equipment and facilities, and how this proposed structure affects the overall cost proposal to the City, if applicable.

B. Company Information
o This section shall include contact person information, address and telephone number of the company main office and branch offices. Each Company shall identify itself as to the type of organizational entity (corporation, sole proprietorship, partnership, joint venture, etc.). Any supplemental information that Company believes may be pertinent to the selection process may be provided.
o The proposer should provide an affirmative statement that it is independent of the City as defined by generally accepted auditing standardshe U.S. General Accounting Office's Government Auditing Standards (1994).
o The Proposal shall identify any litigation, mediation, or arbitration, regarding the performance of any services similar to the Services, in which the Company has been involved in the past five (5) years. If the Services require a license or certification, the Proposal shall include any claims or disciplinary action taken against Company or any of Company’s key personnel within the past five years.

C. Company Personnel
o This section shall contain names, contact numbers and description of experience, including licenses and/or certifications, of all key personnel who would be assigned to perform the Services. Members of the Company’s professional team (managers, contact person, etc.) should be identified by name, title, phone number, and description of the portion of work they will be assigned to perform under this Agreement. Also include major subcontractors (if any) and their degree of involvement in this program. If the Company is including any subcontractors, the Company shall identify how long the Company has worked with the subcontractor. o An affirmative statement should be included that the proposer and all assigned key professional staff are properly licensed to practice in California. 1106
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
D. Disclosure
o Please disclose any and all past or current business and personal relationships with any current Banning elected official, appointed official, City employee, or family member of any current Banning elected official, appointed official, or City employee.

Any past or current business relationship may not disqualify the firm from consideration.

E. Experience and References
o The Proposal must demonstrate that the Company, or its key personnel, meets the minimum experience requirement in #Prerequisites with a legally registered business name, that provides services of a similar type and scope as described in the Scope of Services. A Company shall not have filed for bankruptcy under any business name over the past five (5) years.
o Company shall provide at least 3 references, within the past 5 years, of clients for whom services have been performed that are comparable in quality and scope to that specified in this RFP. The references shall include client names, addresses, telephone numbers and e-mail addresses of the clients for whom prior work was performed and include an explanation of the services provided along with project start and end dates.
*Response required
V.C Price Proposal*
All proposals submitted shall have a stated dollar bid amount for providing the services outlined in the Scope of Services. The total shall be an all-inclusive maximum price and to contain all direct and indirect costs including all out-of-pocket expenses with a full and complete breakdown of all said costs, and proposed fees including but not limited to hourly rates, reimbursable expenses and/or rates, mileage and/or travel cost, miscellaneous fees, etc., for the first year's audit engagement.

In addition, a statement must be included in this section that if the proposer is charging travel costs, the proposer's charges invoiced to the City for travel, lodging and subsistence shall not exceed the current IRS rates.
*Response required
V.D Value Added Services
Please describe any value-added services your company offers that may be of use to the City V.E Evidence of Insurance*
In addition, the Company shall provide evidence of possession of insurance in the coverage and amounts listed in the Sample Agreement.
1107
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
City requires that licensees, lessees, and vendors have an approved Certificate of Insurance (not a declaration or policy) or proof of legal self-insurance on file with the City for the issuance of a permit or contract. Within ten (10) consecutive calendar days of award of contract, successful Proposer must furnish the City with the Certificates of Insurance proving coverage as specified in contract sample.
*Response required
V.F Vendor Forms
Please download the below documents, complete, and upload.  New_Vendor_Packet.pdf
V.G Type of Business*
☐ C Corporation
☐ S Corporation
☐ Limited Liability C Corporation
☐ Partnership
☐ Limited Liability Partnership
☐ Sole Proprietor/Individual
☐ Other
*Response required
V.H Type your Legal Company Name Here*
State your Company's Name Here. This will be verified against the California Secretary of State's Website.
*Response required
V.I EX PARTE COMMUNICATIONS CERTIFICATION*
I certify that Bidder and Bidder’s representatives have not had any communication with a City Councilmember concerning this IFB at any time after the date and time that this IFB was publicly advertised.
☐ Yes
☐ No
*Response required
V.J EX PARTE COMMUNICATIONS CERTIFICATION CONTINUED*
If stated "Yes" above, please explain the circumstances in the following space, or state "None." *Response required
1108
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
V.K DISQUALIFICATIONS QUESTIONNAIRE*
Has the Company, any officer of the Company, or any employee of the Company who has proprietary interest in the Company, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or safety regulation?
☐ Yes
☐ No
*Response required
V.L DISQUALIFICATIONS QUESTIONNAIRE CONTINUED*
If stated "Yes" above, please explain the circumstances in the following space, or state "None." *Response required
V.M DISCLOSURE OF GOVERNMENT POSITIONS*
Each Bidder shall disclose below whether any owner or employee of the firm currently hold positions as elected or appointed officials, directors, officers, or employees of a governmental entity or held such positions in the past twelve months. List below or state "None." *Response required
V.N CERTIFICATION COMPLIANCE*
Please download the below documents, complete, and upload.  Certification-Compliance_wi...
*Response required
1109
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
VI. Submission Instructions And Inquiries
VI.A Inquiries
If prior to the date fixed for submission of Proposals, a prospective Company discovers any ambiguity, conflict, discrepancy, omission or other errors in this RFP or any of its appendices, exhibits or attachments, the Company shall immediately notify the City of such error in writing and request modification or clarification of the document. Modifications shall be made by written Addenda to the RFP.

If a Company fails to notify the City, prior to the date fixed for submissions of Proposals, of an error in the RFP known to the Company, or an error that reasonably should have been known to the Company, the Company shall submit its Proposal at its own risk, and if the Company is awarded a Contract, it shall not be entitled to additional compensation or time by reason of the error or its later correction.

All communications regarding technical, scope, and/or project related questions and requests for clarifications, changes, exceptions, and deviations to the terms and conditions set forth in this RFP shall be submitted via “Q&A” through the City’s Electronic Bidding System, ProcureNow, before the deadline and according to these specifications herein. Any and all other bidding communications shall only be with Nicole Jews, Purchasing Manager, at (951) 922-3121.

The Final day for receipt of questions from the Proposer shall be on or before the due date indicated in the schedule of events section. To ensure fairness and avoid misunderstandings, all communications must be in written formatand submitted only in the format set forth above. Any verbal communications will not be considered or responded to. All questions received by the due date will be logged and reviewed and if required, a response will be provided via an addendum to the RFP that will be posted on the City’s website. Any communications, whether written or verbal, with any City Councilmember, City staff, or RFP evaluation panel member other than the individual indicated above, prior to award of a contract by City Council, is strictly prohibited and theProposer shall be disqualified from consideration.

VI.B Completion Of Proposal
Proposals shall be completed in all respects as required by this RFP. A proposal may be rejected if conditional or incomplete, or if it contains any alterations or other irregularities of any kind, and will be rejected if any such defect or irregularity can materially affect the quality of the proposal. Proposals which contain false or misleading statements may be rejected. If, in the opinion of the City’s Selection Committee, such information was intended to mislead the City in its evaluation of the proposal, and the attribute, condition, or capability is a requirement of this RFP, the proposal will be rejected. Statements made by a Company shall also be without ambiguity, and with adequate elaboration, where necessary, for clear understanding.

Unauthorized conditions, exemptions, limitations, qualifications, or provisions attached to a Proposal will render it non-responsive and will cause its rejection. 1110
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
The Company, in responding to this RFP, must submit Proposals in the format identified in this RFP. The Proposal must address all requirements of the RFP even if a “no response” is appropriate.

Costs for developing Proposals are entirely the responsibility of the Company and shall not be chargeable to the City. The City shall not be liable for any costs incurred in response to this RFP, including but not limited to, costs for any interviews, presentations, or other follow-up information necessary as part of the selection process. All costs shall be borne by the Company responding to this RFP. The Company responding to this RFP shall hold the City harmless from any liability, claim, and expense whatsoever incurred by or on behalf of the Company.

VI.C Delivery / Submission Of Proposals
The Final day for submission of proposals shall be on or before the due date indicated in the schedule of events section.

Companies shall register on the City’s Electronic Bidding System, https://www.banningca.gov/bids. Once registered, Companies must download the RFP while logged in under their own name and identification number to appear on the Current Prospective Bidders List as a “Prospective Bidder.” Companies that fail to download the RFP will not appear on the Current Prospective Bidders List and their proposals will be considered non-responsive. If a Company is unable to register or download the RFP from the bidding website, a representative may contact ProcureNow.

All proposal documents and supplementary documents must be uploaded using the City’s bidding website prior to event date and time as instructed in this solicitation. Once file(s) have been uploaded and the Submission Status shows as “Submitted” the submission is complete. At that point respondents will receive an email confirmation from the bidding website.

The City reserves the right to reject any and all proposals and to waive information and minor irregularities in any proposal received.

Acceptance of Terms and Conditions - Submission of a proposal pursuant to this RFP shall constitute acknowledgment and acceptance of all terms and conditions hereinafter set forth in this RFP.

The time and date are fixed, and extensions will not be granted unless specifically stated by the City in an addendum to this RFP. Proposals not received before the bid event time will not be accepted.

VI.D Alternative Proposals
Only one proposal is to be submitted by each Company for this RFP. Multiple simultaneous proposals will result in rejection of all Proposals submitted by Company. A Company may, prior to the proposal due date and time, withdraw a proposal and submit a new proposal, so long as the new proposal is submitted before the proposal due date and time. 1111
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
VI.E Examination Of RFP And Sites Of Work
The Company shall carefully examine the RFP and all sites, if applicable, of the work contemplated. The submission of a Proposal shall be conclusive evidence that the Company has investigated and is satisfied as to the conditions to be encountered, as to the character, quality, and quantities of work to be performed and materials to be furnished, the difficulties to be encountered, and to the requirements of the Proposal, RFP, and other Contract Documents.

By submitting a Proposal, the Company hereby certifies that it has: examined the local conditions, read each and every clause of this RFP, included all costs necessary to complete the specified work in its proposed prices, and agrees that if it is awarded the Contract it will make no claim against the City based upon ignorance of local conditions or misunderstanding of any provision of the Contract. Should the conditions turn out otherwise than anticipated by it, the Company agrees to assume all risks incident thereto.

VI.F Addenda
Unless otherwise specified, any addenda issued during the time of bidding must be acknowledged electronically via the City’s Bidding Website, which will be made part of the proposal. Addenda notifications will be provided to those listed on the Electronic Prospective Bidder’s List via email.

VI.G Withdraw Of Proposals
All proposals shall be firm offers and may not be withdrawn for a period of one hundred twenty (120) days following the deadline date for submission of proposals noted herein. Submitted Proposals may be withdrawn at any time prior to the submission deadline.

VI.H Pre-Proposal Meeting
There will be a mandatory pre-proposal meeting on Monday, June 3, 2024 at 9:00 am. The meeting will be located at Microsoft Teams meeting Join on your computer, mobile app or room device https://teams.microsoft.com/l/meetupjoin/19%3ameeting_NDI2ODg1OGEtZGVkMS00MmRkLTljNGMtM2I4YWJmYzI0ZWY5%40thread. v2/0?context=%7b%22Tid%22%3a%2228cb6a6f-78fe-445d-acfdcf07066168f7%22%2c%22Oid%22%3a%22f9c1cfd3-52ec-497e-81d5-e375c8c28269%22%7d Meeting ID: 226 063 519 929 Passcode: Ha8EBJ If you have trouble logging in, please contact Barbara Mason at (951) 922-3121.. Attendance is required in order to submit a proposal. 1112
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
VII. Evaluation Criteria
The City reserves the right to amend, withdraw, and cancel this RFP. The City also reserves the right to reject all responses to this RFP at any time prior to agreement execution. Furthermore, the City reserves the right to request additional information about any and all Proposals, that in City’s opinion, is necessary to assure that the Company’s competence, number of qualified employees, business organization, experience, and financial resources are adequate to perform the Services.

All Proposals shall be reviewed to verify that the Company has met the minimum requirements as stated in this RFP. Proposals that have not followed the rules, do not meet minimum content and quality standards, and/or do not provide references will be rejected as non-responsive.

Responsive proposals will be evaluated on the basis of the criteria below. If needed, interviews will be scheduled during or after the week indicated in the “Schedule of Events” section.If needed, interviews will be conducted by the same members on the proposal evaluation panel. Dates, times, and a location will be coordinated at that time if interviews are deemed necessary after the evaluation of responsive proposals. If interviews are deemed necessary, candidates who have submitted the highest scoring proposals within a competitive range as determined by the City will be invited to participate in the interview process.

The selected Company shall then enter into exclusive negotiations with the City to formalize the Scope of Service and Compensation. Recommendation for award is contingent upon the successful negotiation of final contract terms. Negotiations shall be confidential and not subject to disclosure to competing Proposers unless an agreement is reached. If the City is unable to obtain a fair and reasonable price or cannot reach agreement regarding the terms for the Scope of Services, then the City will end negotiations with that Company and begin negotiations with the next Company which best meets the needs of the City, and so on until a City and the Company reach agreement.

The City intends to select the Company that offers the best value to the City based on the criteria outlined above.

No. Evaluation Criteria Scoring Method Weight (Points)

1. Qualifications Points Based 25
(25% of Total)

2. Pricing Points Based 20
(20% of Total)

3. Experience (Projects of similar size and scope) Points Based 20 (20% of Total)

4. Professional References Points Based 10
(10% of Total)
1113
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA

5. Approach and Methodology Points Based 20
(20% of Total)

6. Value Added Services Points Based 5
(5% of Total)
1114
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
VIII. Terms And Conditions
VIII.A Contract Terms And Conditions
The successful company will be required to execute the City's standard agreement (“Agreement”). A sample is attached herein. The successful company must meet all insurance requirements in the Agreement. All terms and conditions of the Agreement are non-negotiable.

Companies must possess valid City of Banning Business License throughout the term on the contract. Failure to execute the Agreement and furnish the required insurance within the required time period shall be just cause for the rescission of the award. If any of the successful Companies refuse or fail to execute the Agreement, the City may award the Agreement to the next most qualified Company.

VIII.B Public Records
All Proposals submitted in response to this RFP become the property of the City and pursuant to the Public Records Act (Gov. Code, § 6250 et seq.) are public records, and as such may be subject to public review at least 10 days before selection.

The Company must notify the City in advance of any proprietary or confidential materials contained in the Proposal and provide justification for not making such material public. The City shall have sole discretion to disclose or not disclose such material subject to any protective order that the Company may obtain. Note that under California law, price proposal to a public agency is not a trade secret.

Submission of a proposal shall indicate that, if Proposer requests that the City withhold from disclosure information identified as confidential, and the City complies with the Proposer’s request, Proposer shall assume all responsibility for any challenges resulting from the nondisclosure, indemnify and hold harmless the City from and against all damages (including but not limited to attorney’s fees that may be awarded to the party requesting the Proposer information), and pay any and all costs and expenses related to the withholding of Proposer information. Proposer shall not make a claim, sue, or maintain any legal action against the City or its directors, officers, employees, or agents concerning the disclosure, or withholding from disclosure, of any Proposer information. If Proposer does not request that the City withhold from disclosure information identified as confidential, the City shall have no obligation to withhold the information from disclosure and may release the information sought without any liability to the City.

The City reserves the right to make use of any information or idea contained in the Proposal. All materials, ideas and formats submitted in response to this RFP will become the property of the City upon receipt.
1115
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
VIII.C Conflict Of Interest
The Proposer warrants and represents that it presently has no interest and agrees that it will not acquire any interest which would present a conflict of interest under California Government Code sections 1090 et seq., or sections 87100 et seq., during the performance of services under any Agreement awarded. The Proposer further covenants that it will not knowingly employ any person having such an interest in the performance of any Agreement awarded. Violation of this provision may result in any Agreement awarded being deemed void and unenforceable.

VIII.D Rejection Of Proposals
The City may reject any/or all Proposals and may waive any immaterial deviation in a Proposal.

The City’s waiver of an immaterial defect shall in no way modify this RFP or excuse the Company from full compliance with this RFP and/or the Contract Documents if awarded the Contract.

Proposals that include terms and conditions other than City’s terms and conditions may be rejected as being non-responsive. The City may make investigations as deemed necessary to determine the ability of the Company to perform the work, and the Company shall furnish to the City all such information and data for this purpose as requested by the City. The City reserves the right to reject any proposal if the evidence submitted by, or investigation of, such Company fails to satisfy the City that such Company is properly qualified to carry out the obligations of the Agreement and to complete the work described herein.

VIII.E Protest Procedures
Failure to comply with the rules set forth herein may result in rejection of the protest. Protests based upon restrictive specifications or alleged improprieties in the proposal procedure which are apparent or reasonably should have been discovered prior to receipt of proposals shall be filed in writing with the RFP Facilitator at least 10 calendar days prior to the deadline for receipt of proposals. The protest must clearly specify in writing the grounds and evidence on which the protest is based.

Protests based upon alleged improprieties that are not apparent or which could not reasonably have been discovered prior to submission date of the proposals, such as disputes over the staff recommendation for contract award, shall be submitted in writing to the RFP Facilitator, within forty-eight hours from receipt of the notice from the City advising of staff’s recommendation for award of contract. The protest must clearly specify in writing the grounds and evidence on which the protest is based. The RFP Facilitator will respond to the protest in writing at least three days prior to the meeting at which staff’s recommendation to the City Council will be considered.

Should Proposer decide to appeal the response of the RFP Facilitator, and pursue its protest at the Council meeting, it will notify the RFP Facilitator of its intention at least two days prior to the scheduled meeting.
1116
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
VIII.F Cancellation
The City retains the right to cancel this RFP at any time, should it be deemed to be in the best interest of the City. No obligation either expressed or implied exists on the part of the City to make an award based on the submission of any proposals. 1117
City of Banning

REQUEST FOR PROPOSAL
Municipal Code Update Project - City of Banning, CA
IN WITNESS WHEREOF the Parties hereto have executed this Agreement the day and year first hereinabove written.

CITY OF BANNING CONSULTANT
Douglas Schulze, Date
City Manager
NAME: Date
TITLE:

NAME: Date
TITLE:

ATTEST:

Tax ID No.

Caroline Patton Date
Deputy City Clerk
Address:

APPROVED AS TO FORM:

Richards, Watson & Gershon
City Council Approval: _____________
Kevin G. Ennis, Esq., Date
City Attorney
NOTE: PROOF OF AUTHORITY TO BIND CONTRACTING PARTY REQUIRED. APPROPRIATE ATTESTATIONS SHALL BE

INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.
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City of Banning
Purchasing Division
Barbara Mason, Purchasing Manager
99 E Ramsey St, Banning, CA 92220

EVALUATION TABULATION
RFP No. RFP-23-050
Municipal Code Update Project - City of Banning, CA
RESPONSE DEADLINE: June 19, 2024 at 11:59 pm
Report Generated: Saturday, August 17, 2024

SELECTED VENDOR

VENDOR RECOMMENDED BY THE EVALUATION PROCESS
Vendor Location
American Legal Publishing Cincinnati, OH
Vendor Qualifications
Points Based
25 Points (25%)
Pricing
Points Based
20 Points (20%)
Experience
(Projects of similar
size and scope)
Points Based
20 Points (20%)
Professional
References
Points Based
10 Points (10%)
Approach and
Methodology
Points Based
20 Points (20%)
Value Added
Services
Points Based
5 Points (5%)
Total Score
(Max Score 100)
American Legal
Publishing

23.3 16.7 20 10 18.7 5 93.67
CivicPlus, LLC
Excluded
0 0 0 0 0 0 0
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CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
PREPARED BY: Lincoln Bogard, Administrative Services Director Lincoln Bogard, Administrative Services Director
MEETING DATE: August 27, 2024
SUBJECT: City of Banning Fiscal Year 2022-23 Annual Comprehensive Financial Report (ACFR), Banning Utility Authority (BUA) FY 2022-23 Financial Statements, City of Banning FY 2022-23 GANN Limit Agreed Upon Procedures (AUP) Report, City of Banning FY 2022-23 Single Audit Report, and related Management Letters and Governance Letters RECOMMENDATION:

Receive and file City of Banning Fiscal Year 2022-23 Annual Comprehensive Financial Report (ACFR), Banning Utility Authority (BUA) FY 2022-23 Financial Statements, City of Banning FY 2022-23 GANN Limit Agreed Upon Procedures (AUP) Report, City of Banning FY 2022-23 Single Audit Report, and related Management Letters and Governance Letters.

BACKGROUND:

After the conclusion of each fiscal year, an independent auditor (currently Eide Bailly LLP) reviews the reporting of the City’s financial statements in accordance with industry accounting standards. The result is an “Annual Comprehensive Financial Report (ACFR)”. It includes financial statements for the City of Banning, the Banning Utility Authority, and the Banning Successor Agency of the Former RDA. It also contains the independent auditor’s report, which describes the scope of the audit as well as the auditor’s opinion on the financial statements. For this past Fiscal Year 2022-23 ACFR, the City received an “qualified and unmodified” opinion. A "qualified" opinion occurs when an area(s) exist that were not able to be audited. The City did not have an auditor as of June 30, 2023, so the new auditors were not onsite to verify ending inventory counts. An “unmodified” opinion is only issued when there are no significant reporting issues, the financial statements are free of material misstatements, and information is presented in accordance with Generally Accepted Accounting Principles (GAAP). This opinion indicates that the City’s financial condition, position, and operations are fairly presented in the financial statements.

This is important to financial statement users and provides comfort to the City’s creditors, while enabling the City to obtain better interest rates on any new debt issuances.

City management assumes full responsibility for the completeness and reliability of all the information presented in the ACFR. The City is continuing to establish a comprehensive internal control framework designed to protect the City’s assets from loss, theft, or misuse and provide sufficient reliable information that the City of Banning’s financial statements are in conformity with GAAP. The cost of internal controls should not outweigh the resulting benefits and internal controls are designed to provide reasonable assurance, not absolute assurance, that the financial statements will be free from material misstatements. City management asserts that, to the best of our knowledge and belief, the financial data provided to the auditor is complete and reliable in all material respects. 1120
JUSTIFICATION:

The City received the Certificate of Achievement for Excellence in Financial Reporting issued by the Government Finance Officers Association for its Fiscal Year 2021-22 ACFR, its third consecutive award.

During the audit, staff provided all requested information to the auditors. We received the final audit opinion on Wednesday, July 31st, 2024. The ACFR is posted below as Attachment 1.

Staff successfully implemented new reporting requirements for GASB 96 – Software Based Information Technology Arrangements (SBITA), but that was the only GASB requirement due for implementation by the city this year. The “Management Letter” from last year’s ACFR noted one matter for consideration that staff expects to be fully corrected for Fiscal Year 2023-24 ACFR issuance.

Per City request, the new auditors performed a deep dive and identified ten current year adjustments and seven prior year adjustments. Four of the current year adjustments involved the 60-day revenue lookback, which staff is changing to a 90-day revenue lookback to better align with the timing of revenue receipts. Three of current year adjustments dealt with Lease and SBITA accounting entries, which implemented in Fiscal Years 2021-22 and 2022-23, respectively. Management is conducting training with staff on all accounting adjustments identified. Most of the prior year adjustments dated back several years. Other material weakness findings related to year-end inventory counts (performed on June 27, 2024) and timeliness of bank cash reconciliations (now being completed within 30-days of month end).

Management has prepared an action plan for all findings noted.

FISCAL IMPACT:

None.

Implied in all City Council Goals, Objectives, and Work Programs is the fundamental principle that the City will follow the City Council’s adopted Fiscal Policy and will exercise the utmost financial discipline and accountability. In accordance with, and pursuant to, Section 37208 of the Government Code, the City Manager is responsible for preparing an audited Comprehensive Financial Report each year.

ALTERNATIVES:

Receive and file only.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. City of Banning 2023 Final ACFR.pdf

2. City of Banning 2023 Final GANN Limit AUP.pdf

3. City of Banning 2023 Final Governance Letter.pdf

4. City of Banning 2023 Final Management Letter.pdf

5. City of Banning 2023 Final Single Audit Report.pdf

6. Banning Utility Authority 2023 Final Financial Statements.pdf

7. Banning Utility Authority 2023 Final Governance Letter.pdf 1121

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2023
City of Banning, California
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
of the

CITY OF BANNING, CALIFORNIA
For the Fiscal Year ended
JUNE 30, 2023
Prepared By:

Fiscal Services / Finance Department

ADMINISTRATIVE SERVICES DIRECTOR
Lincoln Bogard, MAcc, CPA, CFE

FINANCE STAFF

DEPUTY FINANCE DIRECTOR
A’ja Wallace, MPA

FINANCE MANAGER
Cheryl Stafford
SR. ACCOUNTANT
Cornelio Datuin

ACCOUNTANT II
Austin Flint, MBA

ACCOUNTANT I
Adam Strum

ACCOUNTING SPECIALISTS
Sarah Olsen Jacob Stewart Joyce Phillips
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City of Banning, California
Table of Contents
June 30, 2023
Introductory Section
Letter of Transmittal................................................................................................................................................i GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................. vii Municipal Officers ............................................................................................................................................... viii Executive Staff.......................................................................................................................................................ix Organizational Chart...............................................................................................................................................x Financial Section
Independent Auditor's Report............................................................................................................................... 1 Management’s Discussion and Analysis................................................................................................................ 5 Basic Financial Statements
Government‐wide Financial Statements
Statement of Net Position................................................................................................................................... 25 Statement of Activities........................................................................................................................................ 27 Fund Financial Statements
Governmental Funds
Balance Sheet ...................................................................................................................................................... 29 Reconciliation of the Balance Sheet to the Statement of Net Position .............................................................. 31 Statement of Revenues, Expenditures, and Changes in Fund Balances.............................................................. 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities........................................................................................................................................ 33 Proprietary Fund Financial Statements
Statement of Net Position................................................................................................................................... 34 Reconciliation of Net Position to the Statement of Net Position........................................................................ 38 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................................... 39 Reconciliation of Changes in Fund Net Position.................................................................................................. 41 Statement of Cash Flows..................................................................................................................................... 42 Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position ................................................................................................................... 46 Statement of Changes in Fiduciary Net Position................................................................................................. 47 Notes to the Basic Financial Statements................................................................................................................. 48 Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios (Miscellaneous Rate Plan)...................... 94 Schedule of Proportionate Share of the Net Pension Liability (Safety Rate Plan) .............................................. 95 Schedule of Plan Contributions (Miscellaneous Rate Plan)................................................................................. 96 Schedule of Plan Contributions (Safety Rate Plan).............................................................................................. 97 Schedule of Changes in Total OPEB Liability and Related Ratios........................................................................ 98 Budgetary Comparison Schedule ‐ General Fund................................................................................................ 99 Note to Required Supplementary Information ................................................................................................. 101 1124
City of Banning, California
Table of Contents
June 30, 2023
Combining and Individual Fund Statements and Schedules
Combining Balance Sheet – Non‐Major Governmental Funds.......................................................................... 102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds ...................................................................................................................... 110 Budgetary Comparison Schedules – Special Revenue Funds............................................................................ 118 Budgetary Comparison Schedules – Capital Projects Fund............................................................................... 134 Combining Statement of Net Position – Non‐Major Proprietary Funds ........................................................... 141 Combining Statement of Revenues, Expenses and Changes in Net Position – Non‐Major Proprietary Funds ........................................................................................................................... 142 Combining Statement of Cash Flows – Non‐Major Proprietary Funds ............................................................. 143 Combining Statement of Net Position – Internal Service Funds....................................................................... 145 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds....................................................................................................................................... 146 Combining Statement of Cash Flows – Internal Service Funds......................................................................... 147 Combining Statement of Fiduciary Net Position – Custodial Funds.................................................................. 149 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ............................................... 150 Description of Schedules................................................................................................................................... 151 Statistical Section
Financial Trends
Table 1 ‐ Net Position by Component ............................................................................................................... 152 Table 2 ‐ Changes Net Position.......................................................................................................................... 153 Table 3 ‐ Fund Balances of Governmental Funds.............................................................................................. 155 Table 4 ‐ Changes in Fund Balances of Governmental Funds............................................................................ 156 Revenue Capacity
Table 5 ‐ Electric by Type of Customer (Revenues and Demand) ..................................................................... 157 Table 6 ‐ Electricity Rates .................................................................................................................................. 158 Table 7 ‐ Ten Largest Electric Customers........................................................................................................... 159 Table 8 ‐ Water by Type of Customer (Revenues and Consumption)............................................................... 160 Table 9 ‐ Water Rates........................................................................................................................................ 161 Table 10 ‐ Ten Largest Water Customers.......................................................................................................... 162 Table 11 ‐ Wastewater by Type of Customer (Revenues)................................................................................. 163 Table 12 ‐ Wastewater Rates............................................................................................................................. 164 Table 13 ‐ Ten Largest Wastewater Customers................................................................................................. 165 Table 14 ‐ Assessed Value of Taxable Property by Category............................................................................. 166 Table 15 ‐ Property Tax Rates............................................................................................................................ 167 Table 16 ‐ Property Tax Rates............................................................................................................................ 168 Table 17 ‐ Use Category Summary & Roll Summary Fiscal Year 2022‐23 ......................................................... 169 Table 18 ‐ Net Taxable Assessed Value History................................................................................................. 171 Table 19 ‐ Principal Property Taxpayers............................................................................................................ 172 Table 20 ‐ Property Tax Levies and Collections................................................................................................. 174 Table 21 ‐ Sales Tax by Major Business Groups................................................................................................. 175 Table 22 ‐ Top 25 Sales Tax Producers.............................................................................................................. 176 1125
City of Banning, California
Table of Contents
June 30, 2023
Debt Capacity
Table 23 – Pledged Revenue Coverage ............................................................................................................. 177 Table 24 – Ratios of Outstanding Deby by Type................................................................................................ 181 Table 25 – Direct and Overlapping Governmental Activities Debt ................................................................... 183 Table 26 – Legal Debt Margin Information........................................................................................................ 184 Demographic and Economic Information
Table 27 – Demographic and Economic Statistics............................................................................................. 185 Table 28 – Top 20 Principal Employers.............................................................................................................. 186 Operating Information
Table 29 – Authorized Full‐time Equivalent City Employees by Function......................................................... 187 Table 29 – Authorized Full‐time Equivalent City Employees by Function......................................................... 188 Table 30 – Operations Indicators by Function/Program................................................................................... 189 Table 31 – Capital Asset Statistics by Function/Program.................................................................................. 192 1126
City of Banning
99 E. Ramsey Street • P.O. Box 998 • Banning, CA 92220‐0998 • (951) 922‐3100 i
July 31, 2024
Honorable Mayor, Members of the City Council & Citizens of the City of Banning, California, It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) for the City of Banning (City) for the fiscal year ended June 30, 2023 (FY 2022-23), prepared in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB).

This report consists of management’s representations concerning the finances of the City.

Responsibility for the accuracy of the data, the completeness, and the fairness of the presentation, including all disclosures, rests with the City’s management. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed to both protect the City’s assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, the enclosed report 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.

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 of Banning’s MD&A can be found immediately following the independent auditor’s report.

The City’s financial statements have been audited by Eide Bailly LLP. Eide Bailly is an independent public accounting firm fully licensed and qualified to perform audits of public agencies within the State of California.

The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2023, 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 1127
99 E. Ramsey Street • P.O. Box 998 • Banning, CA 92220‐0998 • (951) 922‐3100 ii
management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering a qualified opinion that City’s ACFR for the year ended June 30, 2023, is fairly presented in conformity with GAAP. The qualification related primarily to the fact that the contract with Eide Bailly was executed after fiscal year end and inventory observations as of June 30, 2023, could not be conducted. Staff also asked Eide Bailly to conduct a thorough review of the City in the first year of the contract to ensure as many historical errors as possible could be identified and corrected. The requirements of the upcoming GASB Statement 100 – Accounting Changes and Error Corrections are making the disclosures of historical errors much more costly and staff would like to ensure errors are identified and corrected prior to the implementation of that Standard in Fiscal Year 2023-24. The independent auditor’s report is presented as the first component of the financial section of this report.

Profile of the City of Banning
The City of Banning is strategically located in Riverside County along the route of U.S. Interstate 10 approximately 25 miles northwest of Palm Springs and 82 miles east of Los Angeles. Beautifully located in the San Gorgonio Pass between the two highest mountain peaks in Southern California, Banning is only minutes away from many desert and mountain resorts. One of Banning’s unique characteristics is that it provides the serenity of a rural setting yet has easy access to major metropolitan areas. Its unique location is at a relatively high altitude (2,350 feet) in the pass which provides a favorable year-round climate and air quality. Its municipal boundaries encompass 23.24 square miles. The City’s Sphere of Influence encompasses another 8.5 square miles.

Banning has a rich and colorful history. Its first permanent landmark, an adobe house, was built on a tract of land now known as the Gilman place, in 1854. The house was used as a stagecoach station and meal stop for many years. The Colorado Stage and Express Line included Banning on its route 1128
99 E. Ramsey Street • P.O. Box 998 • Banning, CA 92220‐0998 • (951) 922‐3100 iii
from Los Angeles to the Colorado River in 1862, where gold had been discovered. The railroad replaced the stagecoach in 1876.

Incorporated in 1913, Banning is a general law city with a council/manager type administration. The City has five elected council members. The Mayor is appointed by the City Council annually. The City Manager is the Chief Administrative Officer and is appointed by the City Council.

The City of Banning is a full-service municipal government, which owns and operates its own electric, water, and wastewater utilities. It also offers its residents an airport, local police protection, contracted fire protection, municipal bus service, seven parks, a swimming complex, a seasonally operated playhouse bowl, as well as youth and leisure programs. Recreation opportunities are also abundant in nearby areas, which offer golfing, fishing, hiking, and equestrian trails.

FACTORS AFFECTING FINANCIAL CONDITION
Local Economy
Banning is one of the fastest growing cities in the State of California, with 31,250 highly skilled residents – and still growing, currently at a rate of 1.3 percent annually. Median household income as of 2022 was $54,083 and per capita personal income increased 17.31 percent from $24,679 in 2021 to $28,951.

The unemployment rate as of 2022 was 5.1 percent which is considered full employment. Population data from the California State Department of Finance, median and per capita income from US Census Bureau, and unemployment data from the California Employment Development Department. Additional information can be found in the statistical section of the ACFR.

Tri-Pointe Homes (previously known as Pardee) broke ground in 2018, kicking off the Atwell Community (Tri-Point Project), the City's largest residential development opportunity in 30 years. This 1,543-acre property began selling new homes in April 2020 and has welcomed more than 700 families of all sizes and has issued nearly 800 building permits for the project. The Atwell Homes Project features over 4,850 homes, two new schools, 3 commercial zoning areas, and community centers. KB Homes has submitted plan reviews for 143 homes. The Banning Duplex project is also in plan review for their 186- unit project. The 35,000 square foot Microtel project is currently at the grading permit process and expects to begin construction by June 2024. There is a population of 2.44 million within Riverside County. The City offers 23.24 square miles of Endless Opportunities with affordable land with potential for future expansion needs. According to the State of California Department of Finance, Banning saw its assessed property value increase by 1.9 percent from 2022 to 2023.

Banning is home to many small and large companies, including Fortune 500 companies, which include Boot Barn, Pet Smart, Skechers USA, So Cal West Coast Electric, Consolidated Electric Distributors, Harbor Freight Tools, Lawrence Equipment, Serta Mattress Firm, Walgreens, Albertsons Grocery Store, Smart & Final, Cardenas Markets, T-Mobile, Hobby Lobby, Marshalls, O'Reilly Automotive, Big 5 Sporting Good, Leslie's Pool Supplies, Diamond Chevrolet Buick GMC, Holiday Inn Express & Suites, Hampton Inn & Suites and more.
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99 E. Ramsey Street • P.O. Box 998 • Banning, CA 92220‐0998 • (951) 922‐3100 iv
Banning is centrally located in Riverside County, with a large Opportunity Zone, and in the fast-growing Inland Empire region of Southern California, with proximity to Los Angeles, Orange, San Bernardino, and San Diego Counties. We are served by major transportation highways (I-10, SR-60, I-215, SR-79, and SR-91). Our excellent location allows easy access on and off the highway and to the Port of Long Beach, with air transportation served by Banning Municipal Airport, Palm Springs International Airport, and Ontario International Airport. In addition, we are a designated Foreign Trade Zone.

The City of Banning is ready to accommodate business development needs with fast-track permit application processes for development and an ample Opportunity Zone. In addition, the City of Banning owns and operates our municipal utilities, which is helping to achieve the community's long-term goals.

Local control means matching local resources to local needs and offering special programs (energy efficiency & conservation, economic development incentives, etc.) to benefit citizens. The primary mission of providing the least-cost and most reliable service over maximizing profit ensures that these goals are always in sight.

Budget Process and Long-term Financial Planning
Of all the functional areas of city government finance, one of the most critical to success is budgeting.

Budgeting has many dimensions: managerial, planning, communications, financial. A sound budget process encourages the development of organizational goals, establishes policies, and plans to achieve those goals, and allocates limited resources through the process that are consistent with these goals, policies, and plans. There is also a focus on measuring performance to determine what has been accomplished with the allocated resources.

The council’s work is important in emphasizing that budgeting should have a long-range perspective, and not simply an exercise in balancing revenues and expenditures one year at a time. Sound budget policies encourage governments to consider the longer-term consequences of their actions. All budget decisions need to be understood over a multi-year planning horizon to assess whether program and service levels can be sustained.

While these processes and policies will not solve all the problems encountered in budgeting, a thoughtful and transparent process governed by clear financial and budgetary policies can enhance the quality of decision making by encouraging practices that illuminate the key issues and choices facing the community.

A budget process that is well integrated with the other activities of city government, such as the planning and management functions, will provide better financial and program decisions and lead to improved city operations. A budget process that involves all stakeholders (elected officials, city administrators, employees and their representatives, citizen groups, and business leaders) and reflects the needs and priorities of each, will serve as a positive force in maintaining good public relations and enhancing citizens’ and other stakeholders’ overall impression of city government. 1130
99 E. Ramsey Street • P.O. Box 998 • Banning, CA 92220‐0998 • (951) 922‐3100 v
A good budget process is far more than the preparation of a legal document that appropriates funds for a series of line items. Adherence to adopted financial policies promotes sound financial management, can lead to improvement in bond ratings, lower cost of capital, and improve the city’s financial stability by helping city officials plan fiscal strategy with a consistent approach. It reduces the impact of unexpected shortfalls which could lead to reductions of city services. It also provides assurance to the community that the city’s financial resources are being utilized to bring value and maximize quality of life.

Budgeting is guided by sound fiscal policy, and it is characterized by these essential principles:
 Incorporates a long-term perspective.
 Establishes linkages to broad organizational goals.
 Focuses budget decisions on results and outcomes.
 Involves and promotes effective communication with stakeholders.  Provides incentives to administration and employees.

When developing budget and fiscal policies, the City places emphasis on the following CORE VALUES known as: 100 % R.E.A.D.Y.:

Respectful – Interactions with co-workers and customers will be conducted in a manner that is kind, courteous, non-confrontational and professional.

Enthusiastic – Approaches work with a positive attitude, active engagement and effort that reflects positively on the entire organization.

Accountable – Openly shares information with others, understands that public service requires transparency, and conducts City-related business with integrity. Uses time at work for the purpose of conducting the business of the public.

Dedicated – Understands and supports the mission, vision, and values of the organization. Pursues organization and team goals ahead of personal goals.

Yes-Minded - Looks for solutions to problems and actively engages with co-workers, customers, and management to enhance the organization through innovation and collaboration.

Based on established budgetary policies, prior to July 1st of even numbered years, the City Manager, the Administrative Services Director, and the Deputy Finance Director, working with the directors of the various city departments present a biennial budget to the City Council for approval. During the budget cycle, two budgets are prepared, the operating budget and the capital budget for each of the respective fiscal years. The supporting budget documents provide the following:
 Revenue and expense assumptions upon which the budget is based. 1131
99 E. Ramsey Street • P.O. Box 998 • Banning, CA 92220‐0998 • (951) 922‐3100 vi
 Number of budgeted full-time equivalent (FTE) employees.  Mission, strategic priorities, and impact of each operating department.  Prior year actual, current year adopted budget, current year estimated actual, and new year recommended expenditures and revenues by department. The recommended budget will become the adopted budget upon Council approval.
 Descriptions of significant expenditure and revenue changes and related operational impacts by the department.

The capital budget reflects the annual amount appropriated for each capital project included in the longrange Capital Improvement Program. When the council authorizes a new capital project, it approves the estimated total project cost and schedule. The approval of the project budget authorizes total expenditures over the duration of the construction project, which often spans multiple fiscal years. The biennial capital budget authorizes the anticipated expenditures for the scope of work anticipated to be completed in the upcoming fiscal year.

Awards and Acknowledgments
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting (COA) to the City of Banning for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2022. That was the third consecutive year the City received this recognition. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. 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.

The City’s Annual Comprehensive Financial Report and successful conclusion of Fiscal Year 2022-23 would not be possible without the dedicated and efficient services of the City’s Finance Department and the assistance of all City Departments in providing the necessary data to prepare this report. In addition, City Staff truly appreciate the ongoing leadership and support of the Mayor and City Council.

Respectfully submitted,
Douglas Schulze, City Manager
Lincoln Bogard, Administrative Services Director & Deputy City Manager 1132
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Financial Section
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What inspires you, inspires us. | eidebailly.com
10681 Foothill Blvd., Ste. 300 | Rancho Cucamonga, CA 91730-3831 | T 909.466.4410 | F 909.466.4431 | EOE 1 Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Banning, California
Report on the Audit of the Financial Statements
Qualified and Unmodified Opinions
We have audited the financial statements of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining fund information of the City of Banning, California (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Qualified Opinions on Banning Utility Authority Water Fund, Electric Utility Fund, and Business‐Type Activities
In our opinion, except for the effects of the matter described in the Basis for Qualified and Unmodified Opinions section of our report, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of Banning Utility Authority water fund, electric utility fund, and business‐type activities of the City, as of June 30, 2023, and the 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.

Unmodified Opinions on Governmental Activities, General Fund, Banning Utility Authority Wastewater Fund, and Aggregate Remaining Fund Information
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, general fund, Banning Utility Authority wastewater fund, and the aggregate remaining fund information of the City, as of June 30, 2023, 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.

Basis for Qualified and Unmodified Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified and unmodified audit opinions. 1138
2 Matter Giving Rise to Qualified Opinions on Banning Utility Authority Water Fund, Electric Utility Fund, and Business‐Type Activities
We were not engaged as auditors of the City until after June 30, 2023, nor did the City perform a year‐ end inventory observation as of June 30, 2023. We were unable to satisfy ourselves by performing other auditing procedures concerning the inventory held at June 30, 2023. As the inventory balances are material to the Banning Utility Authority water fund, electric utility fund, and business‐type activities, our opinion on each of these opinion units is qualified with respect to this matter.

Adoption of New Accounting Standard
As discussed in Note 1 to the financial statements, the City has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription‐Based Information Technology Arrangements (SBITAs), for the year ended June 30, 2023. There was no effect on beginning net position as a result of implementation. Our opinions are not modified with respect to this matter.

Correction of Errors
As discussed in Note 18 to the financial statements, certain errors resulting in a misstatement of amounts previously reported as of June 30, 2022, were discovered during the current year. Accordingly, a restatement has been made to the governmental activities net position, business‐type activities net position, general fund balance, Banning Utility Authority water net position, electric utility net position, Banning Utility Authority wastewater net position, refuse utility net position, and private‐purpose trust fund (Successor Agency of the Former RDA) net position as of July 1, 2022, to correct the errors. Our opinions are not modified with respect to that matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of 1139
3 internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedules of changes in the net pension liability, schedules of pension contributions, and schedule of changes in the total OPEB liability and related ratios as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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4 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedules, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual nonmajor fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 31, 2024, 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 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 City’s internal control over financial reporting and compliance.

Rancho Cucamonga, California
July 31, 2024
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MANAGEMENT’S DISCUSSION

AND ANALYSIS
he management of the City of Banning (City) presents this narrative overview and analysis of the financial activities of the City for fiscal year ended June 30, 2023 (FY 2022-23). This discussion is intended to introduce the City’s basic financial statements, as well as a financial comparison with the fiscal year ended June 30, 2022 (FY 2021-22).

City management encourages readers to consider the information presented within this discussion and analysis in conjunction with the City’s financial statements. The City’s financial statements are in adherence to the pronouncements of the Governmental Accounting Standards Board (GASB). This annual report consists of five (5) sections as arranged in the Table of Contents:

1. Independent Auditors’ Report,

2. Management’s Discussion and Analysis,

3. Basic Financial Statements,

4. Required Supplementary Information, and the

5. Combining and Individual Fund Statements and Schedules for Non‐Major Governmental Funds, Non‐Major Enterprise Funds, and Internal Service Funds.

Although the Combining Statements provide details about Non-Major Governmental Funds, Non-Major Enterprise Funds, and Internal Service Funds. The totals of non-major funds, governmental and proprietary, are summarized in the Basic Financial Statements as “Other Governmental Funds” and “Other Enterprise Funds.” The total of Internal Service Funds is also brought forward.

The General Fund Budgetary Comparison Schedule is in section 4, Required Supplementary Information. Budgetary Comparison Schedules for each governmental fund are in section 5, Schedules for Non-Major Governmental Funds.

FOCUS OF MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis will focus on financial information contained in section 3.

Basic Financial Statements. Other key points from other sections may be included.

The Basic Financial Statements present operation and fiscal accountability measurements in the presentation order for Government-wide and Funds as required by Governmental Accounting Standards Board Statement 34 (GASB 34).

The two measurements differ in that Government-wide Statements report current and long-term activities on a full accrual basis of accounting, whereas Fund Statements report current year transactions on a modified accrual basis of accounting. The modified accrual basis of accounting uses the current financial resources measurement focus and measures whether the financial resources obtained during the accounting period are sufficient to cover claims against the fund during that T
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period. The differences of the reporting requirements illustrate short- versus long-term stability and helps to highlight areas of importance.

FRAMEWORK OF THE GOVERNMENTAL REPORTING MODEL
Generally accepted accounting principles (GAAP) for governmental reporting requires the following:
 Government-Wide Financial Statements,
 Operational accountability considers whether sufficient resources exist to cover the cost of providing services in the long term, i.e., the economic resource flows measurement focus, full accrual basis of accounting
o Top level statements consolidate all City-wide activities in a two-column format  Governmental Activities
 Business-Type Activities
o Top level statements report City-wide activities in two statements  Statement of Net Position
 Statement of Activities
 Reconciliation to convert Fund statements to Government-wide statements  Converts Governmental Funds to Governmental activities  Converts Proprietary Funds to Business-Type Activities  Fund Financial Statements report fiscal accountability using the current financial resource flows measurement focus, modified accrual basis of accounting.  Types of funds
o Governmental funds
o Proprietary funds
 Non-major Funds are reported in Combining Statements
 Fiduciary Funds are not reported in Government-wide Financial Statements

NOTES TO FINANCIAL STATEMENTS
Notes to Financial Statements, in the section Basic Financial Statements, provide additional information that is essential to the full understanding of the financial information contained therein.

In Note 1 of the Notes to Financial Statements, Summary of Significant Accounting Policies, there is further discussion as to the source of authoritative reporting requirements, the significance of those policies on the City’s financial statements and provide additional supporting information as to the basis for the presentation formats of the Basic financial statements. 6 1143

PROCESSING THE FINANCIAL STATEMENTS
Accounting information is internally processed in traditional City funds categorized as Governmental, Proprietary, or Fiduciary, based on the activity. Fund Financial Statements are prepared from the accounting information collected for each individual fund. Again, subsequent year-end adjustments are calculated to provide the reconciliations to arrive at Government-Wide Financial Statements.

Funds are classified as either major or non-major funds based on criteria established by GASB. Major funds are individually reported in the Funds Financial Statements. The non-major funds are individually reported in the section “Combining Fund Statements and Schedules”.

The traditional Fund Financial Statements focus on funds’ accounting of the city government that reflect the City’s accounting and budgetary structure. The City’s operations are accounted for in funds in much more detail. There are three (3) main fund categories; Governmental, Proprietary and Fiduciary. There are Fund Financial Statements for each main fund category, i.e., Governmental, Proprietary and Fiduciary. Within each of the reports, the report columns will provide each major fund and the total of non-major funds; the non-major funds are sub-totaled in columns entitled “Other Governmental Funds” and “Other Enterprise Funds”.

Since full accrual is the method of accounting for Proprietary Funds in the Funds Financial Statements, the reconciliations necessary to arrive at Business-Type Activities are not as extensive as for Governmental Funds which are accounted for using modified accrual accounting. Those reconciling items are included within the Proprietary Funds’ Statement of Net Position and Statement of Revenues, Expenses and Changes in Fund Net Position.

Reconciliations provide the necessary long-term adjustments to bridge the results of Governmental Funds and to convert them into Government-wide financial statements.

There are two reconciliations that convert Governmental Funds in the Funds Financial Statements to Governmental Activities in the Government-Wide Financial Statements. Those are a Reconciliation of the Balance Sheet of Governmental Funds to the Government-Wide, Governmental Activities, Statement of Net Position and the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities. The two reconciliations provide the linkage from Governmental Funds’ operations to Governmental Activities in the Government-Wide Financial Statements.

1. Converts Governmental Funds to Governmental activities a. Balance Sheet of Governmental Funds to Statement of Net Position b. Statement of Revenues, Expenditures and Changes in Fund Balances to Statement of Activities

2. Converts Proprietary Funds to Business-Type Activities a. Interfund Eliminations
b. Internal service fund adjustments related to Proprietary funds The Government-Wide Financial Statements present “Governmental Activities” and “Business-Type Activities” in a two-column format resulting in Government-wide totals (City-wide). Governmental Activities are Governmental Fund totals and the reconciliation to full accrual. Similarly, the BusinessType Activities are the Proprietary Fund totals and their applicable reconciling items. The totals of these two types of City activities are the Government–wide totals. 7 1144

GOVERNMENT‐WIDE FINANCIAL STATEMENTS

REPORTING THE CITY AS A WHOLE
Government-Wide Financial Statements provide both long-term and short-term information about the City’s overall financial status in a manner similar to a private-sector business.

All City funds, as well as, the Banning Financing Authority, Banning Housing Authority, Banning Public Facilities Corporation, and the Banning Utility Authority are included. These component units, while legally separate from the City, provide services entirely or almost exclusively for the benefit of the City. Therefore, these component units are blended with the City government because of their governing structure and the relationship with the City.

As noted earlier, in this presentation, City operations are designated as either “Governmental Activities” or “Business-Type Activities”, and reported under the designated columns, as identified in the Fund Financial Statements. “Reporting the City as a Whole” is the total of the two activities.

Key items affecting the City’s Net Position are highlighted below.

HIGHLIGHTS OF THE CITY AS A WHOLE
 As of June 30, 2023, the City’s Net Position, which is the difference between the City’s assets and deferred outflows of resources versus its liabilities and deferred inflows of resources, is at $220.00 million, an increase of $5.11 million including the impact of prior period adjustments, over June 30, 2022.
 At the close of the fiscal year, the Unrestricted portion of the Net Position, that which may be used to meet on-going obligations due to creditors, is $21.45 million, a decrease of $20.16 million from the prior fiscal year. The Net Investment in Capital Assets, another component of Net Position, was $184.84 an increase of $28.19 million over June 30, 2022. The Restricted portion of the Net Position amounted to $13.71 million, a decrease of $2.92 million over the prior fiscal year.
 GASB Statement No. 68 (Accounting and Financial Reporting for Pensions) and Statement No. 71 (Pension Transition for Contributions Made Subsequent to the Measurement Date) require that the Net Pension Liability be presented on the face of the financial statements. At June 30, 2023, the total Net Pension Liability for the City of Banning, government-wide, was $49.69 million, an increase of $19.17 million over the prior fiscal year.  GASB Statement No. 75 (Accounting and Financial Reporting for Other Post-Employment Benefits (OPEB)) requires that the Total OPEB Liability be presented on the face of the financial statements, unless an OPEB trust exists. The City determined that an implicit subsidy exists in FY 2021-22, and we performed an actuarial study to determine the Total OPEB Liability. At June 30, 2023, the Total OPEB Liability for the City of Banning, government-wide, was $1.11 million, an increase of $0.05 million over the prior fiscal year. 8 1145
A COMPARATIVE SUMMARY OF CITY’S NET POSITION
Net Position represents the difference between the City’s resources (total assets and deferred outflows of resources) and its obligations (total liabilities and deferred inflows of resources). Over time, Net Position may serve as an indication of a government’s financial position. The Statement of Net Position measures the City’s Net Position. This is one way to measure the City’s financial health or financial position. Over time, increases or decreases in the City’s Net Position may serve as an indicator of whether its financial health is improving or deteriorating.

All fluctuations are based on 2022 amounts which have not been restated for prior period adjustments. Therefore, all comparisons to the prior year are net of prior period adjustments.

Again, the City’s Net Position, net expenses over revenues, increased by $5.11 million to $220.00 million from the prior fiscal year.

The City’s Net Position from Governmental Activities is $71.16 million, an increase of $2.15 million, which was mainly due to charges for services increase of 41 percent, or $3.00 million. Increases in General Government revenues were primarily from increases in Cost Allocation Plan payments for centralized administration services, partially offset by an increase in salaries and benefits, which reduced the General Government net loss by $2.21 million to $0.87 million. Public Safety net loss increased by $2.03 million to $16.46 million. This is primarily due to increases in contractual fire services payments of $0.23 million, police salaries & benefits of $0.29 million, vehicle purchases of $0.36 million, and a reduction in Operating Contributions and Grants of $1.59 million. The timing of receipts and disbursements for permits for Atwell homes and reimbursement-based grants for Community Development resulted in an increased net loss of $2.88 million to $4.19 million. Culture & Leisure expenditures increased $0.47 million due to continued reinstatement of programming that had been suspended due to the Coronavirus pandemic. Transportation Operating and Capital Contributions and Grants decreased by $0.25 million, and expenditures increased by $0.79 million primarily due to a transfer to the Gas Tax Street Fund. The result is that discretionary non-designated revenues provided more support for services than last fiscal year and required additional use of governmental fund balances to cover the shortfalls. Beginning balance adjustments improved Net Position by $10.79 million.

The City’s Net Position from Business-Type Activities is $148.84 million, an increase of $2.95 million.

Due to the City Council’s decision to close the airport, Capital and Operating Contributions and Grants decreased by $0.42 million resulting in a net loss of $0.21 million, down from a net income of $0.22 million in FY 2021-22. Transit expenses increased $0.59 million primarily from salaries and benefits and fleet maintenance costs, with revenues unchanged for a net loss of $0.51 million. Water net income decreased by $0.31 million to $6.51 million, primarily due to a reduction of Capital Contributions and Grants. Electric had a net loss of $1.20 million, down from a net income of $1.10 million, primarily due to increases in salaries and benefits ($1.08 million), supplies and services ($1.37 million), and purchased power costs ($2.06 million), offset by an increase in sales and service charges of $2.38 million. Wastewater’s net income was $1.88 million, up from $1.40 million in FY 2021-22, which was primarily the result of a rate increase that increased charges for services income.

Refuse net income fell $3.89 million to $0.58 million primarily due to a one-time revenue in FY 2021- 22 upon contract signing for amendment to Waste Management agreement. In FY 2022-23, that $4.5 million was reclassified as a deposit that will be recognized as revenue over 20 years. Non-operating revenues and transfers improved by $0.18 million to a net loss of $0.24 million. Beginning balance adjustments decreased Net Position by $3.82 million.
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ASSETS AND DEFERRED OUTFLOWS
The City’s Total Assets increased $9.87 million to $329.89 million primarily due to increases in grants receivables ($2.21 million), inventory ($1.88 million) and non-depreciable and depreciable capital assets net of accumulated depreciation ($23.45 million), offset by decreases in cash and investments ($18.14 million). Deferred outflows increased $8.75 million to $18.95 million primarily due to pension related items. Total Assets and Deferred outflows are $348.84 million.

LIABILITIES AND DEFERRED INFLOWS
The City’s Total Liabilities increased $22.44 million to $124.14 million due primarily to increases in net pension liability ($19.17 million), accrued liabilities ($1.19 million), unearned revenue ($4.83 million), primarily offset by decreases in deposits payable ($0.80 million), and long-term liabilities ($1.50 million). Deferred inflows decreased $8.92 million to $4.70 million due to pension related items. Total Liabilities and Deferred inflows are $128.84 million.

GASB 54 CLASSIFICATIONS OF NET POSITION
GASB 54 established a hierarchy of constraints applicable to the resources available in Fund Balances as well as the component of Net Position that corresponds to fund balances. The City’s Net Position is made-up of three components: Net Investment in Capital Assets (net of related debt), Restricted, and Unrestricted.

Table 1 is a comparison of the Net Position in the Basic Financial Statements – Statement of Net Position with previous year. It includes both Changes in Net Position and any Restatements of Net Position. Corresponding analysis of changes and causes are reflected in the following paragraphs.

The Net investment in Capital Assets of $184.84 million represents 84.02 percent of the City’s Total Net Position. Investment in capital assets (e.g., infrastructure, land, structures and improvements, furniture, and equipment) for this purpose is reduced by unspent bond proceeds. The city uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported Net of Related Debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities. No new long-term debt was incurred during the current fiscal year that would have significantly affected this section. Any decrease, therefore, is mainly due to recurring annual debt service payments and depreciation of the capital assets offset by additional capitalized expenditures for fiscal year 2022-23.

The portion of the City’s Net Position subject to external restrictions in how they may be used is $13.71 million (6.23 percent of the Total Net Position). The Restricted Net Position includes Community Development Projects, Public Safety, Parks and Recreation, Public Works, Capital Projects, and Debt Service.

The remaining Unrestricted Net Position balance of $21.45 million (9.75 percent of the Total Net Position) may be used to meet the government’s ongoing obligations to citizens and creditors within program areas. The negative unrestricted net position in the Governmental Activities ($18.81 million) is mainly the result of the implementation of GASB Statements No. 68 – Pensions, 71 – Pension Contributions Subsequent to The Measurement Date, and No. 75 – Other Post-Employment Benefits. Net Pension Liability for Governmental and Business Type Activities were $33.85 million and $15.84 million respectively. Total OPEB Liability, also respectively, was $0.72 million and $0.39 million. Additional information can be found in the Notes to Financial Statements. 10 1147
Table 1 summarizes the Statement of Net Position of the City and provides a comparison.

Chart 1 – provides a visual summary of the information presented in Table 1.

Assets: 2022 (1) 2023 2022 (1) 2023 2022 (1) 2023 % CHG Current and other assets 35.25        31.24     79.00   69.43    114.25    100.67 11.9% Capital assets     70.68   82.01     135.09    147.21    205.77    229.22 11.4% TOTAL ASSETS $        105.93 $     113.25 $         214.09 $     216.64 $       320.02 $     329.89 3.1% Deferred outflows on refunding    ‐ ‐        2.43   2.26   2.43   2.26 7.0% Deferred pension related items    5.90   12.20    1.83   4.45   7.73    16.65 115.4% Deferred OBEB related items    0.02    (0.01)    0.02   0.05   0.04   0.04 0.0% TOTAL DEFERRED OUTFLOWS 5.92 $          $      12.19 $         4.28 $     6.76 $       10.20 $      18.95 85.8% Liabilities:

Current and other liabilities     10.01   9.92    9.24   8.57    19.25    18.49 3.9% Long‐term liabilities*     22.76   40.06     59.69   65.59    82.45    105.65 28.1% TOTAL LIABILITIES $        32.77 $      49.98 $         68.93 $     74.16 $       101.70 $     124.14 22.1% Deferred inflows on refunding    ‐ ‐        0.09   0.09   0.09   0.09 0.0% Deferred pension related items     10.07   4.26    3.47   0.24    13.54   4.50 66.8% Deferred OPEB related items    ‐   0.04 ‐      0.07 ‐     0.11 0.0% TOTAL DEFERRED INFLOWS $        10.07 $      4.30 $         3.56 $     0.40 $       13.63 $     4.70 65.5% Net Position:

Net investment in capital assets     70.29   80.58     86.36    104.26    156.65    184.84 18.0% Restricted for:

Community Development Projects    2.58   2.42 ‐    ‐     2.58   2.42 6.2% Public Safety    0.02   0.02 ‐    ‐     0.02   0.02 0.0% Culture and Leisure    0.08   0.09 ‐    ‐     0.08   0.09 12.5% Transportation    2.29   2.82 ‐    ‐     2.29   2.82 23.1% Capital Projects    4.24   4.04    3.53   0.36   7.77   4.40 43.4% Debt Service    ‐ ‐     ‐    ‐   ‐     ‐ 0.0%
SCPPA Projects    ‐ ‐        0.98   0.78   0.98   0.78 20.4% SCPPA Project Stabilization Fund    ‐     ‐    2.91   3.18   2.91   3.18 9.3% Unrestricted   (10.49)    (18.81)     52.10   40.26    41.61    21.45 48.4% TOTAL NET POSITION $        69.01 $      71.16 $         145.88 $     148.84 $       214.89 $     220.00 2.4% (1) Amounts reported for 2022 have not been restated.

Table 1 ‐ Summary of Net Position (In Millions)
Governmental Activities Business‐Type Activities Government‐Wide Totals Note: Details can be found in the "Statement of Net Position" 11 1148

STATEMENT OF ACTIVITIES
Table 2 is a two-year comparison of the Governmental and Business-Type Activities in the Statement of Activities. Comparisons are provided for City-wide Revenues and Expenses by Function/Program, the Change in City-wide Net Position, and the Beginning and Ending Net Position.

Table 2 ‐ Statement of Activities (In Millions)
2022 (1) 2023 2022 (1) 2023 2022 (1) 2023
Revenues
Program Revenues:

Charges for Services 7.33                    10.33         50.58         49.74              57.91       60.07 Operating Contributions and Grants 4.99                      4.65           3.89           1.71                8.88         6.36 Capital Contributions and Grants           2.82           3.06           4.93           8.74                7.75       11.80 Subtotal Program Revenues         15.14         18.04         59.40         60.19              74.54       78.23 General Revenues:

Property Taxes           6.55           6.94 ‐             ‐                            6.55         6.94 Sales Taxes           6.80           5.79 ‐             ‐                            6.80         5.79 Business Licenses Taxes           0.18           0.18 ‐             ‐                            0.18         0.18 Franchise Taxes           0.53           0.54 ‐             ‐                            0.54         0.54 Transient Occupancy Taxes           1.29           1.18 ‐             ‐                            1.29         1.18 Other Taxes           0.67           0.70 ‐             ‐                            0.67         0.70 Motor Vehicle In‐Lieu           0.04 ‐             ‐             ‐                            0.04 ‐ Use of Money and Property          (0.16)           0.32          (0.45)           0.80               (0.61)         1.11 Other           0.01           1.13 ‐                       0.13                0.01         1.26 Gain on sale of capital asset             ‐ ‐                       0.03 ‐                            0.03 ‐ Subtotal General Revenues         15.91         16.78          (0.42)           0.93              15.50       17.70 TOTAL REVENUES         31.05         34.82         58.98         61.12              90.04       95.93 Expenses
General Government           5.94           7.74 ‐             ‐                            5.94         7.74 Public Safety         17.68         18.53 ‐             ‐                          17.68       18.53 Community Development           5.21           8.79 ‐             ‐                            5.21         8.79 Culture and Leisure           2.21           2.64 ‐             ‐                            2.21         2.64 Transportation           6.08           6.86 ‐             ‐                            6.08         6.86 Interest on Long‐term debt           0.01           0.07 ‐             ‐                            0.01         0.07 Airport             ‐ ‐                       0.47           0.44                0.47         0.44 Transit             ‐ ‐                       1.77           2.36                1.77         2.36 Electric Utility             ‐ ‐                     30.46         36.03              30.46       36.03 BUA Water             ‐ ‐                       8.12           9.96                8.12         9.96 BUA Wastewater             ‐ ‐                       3.51           3.87                3.51         3.87 Refuse             ‐ ‐                       1.05           0.51                1.05         0.51 TOTAL EXPENSES         37.13         44.63         45.38         53.17              82.51       97.80 (6.08)          (9.81)         13.60           7.95                7.52        (1.87) Transfers           0.61           1.17          (0.61)          (1.17) ‐           ‐ Increase/(Decrease) in Net Position (5.47)                    (8.64)         12.99           6.78                7.52        (1.87) Net Position at Beginning of Year         74.48         69.01       132.89       145.88            207.37     214.89 Restatement of Net Position             ‐         10.79 ‐                      (3.82) ‐         6.98 Net Position at End of Year         69.01         71.16       145.88       148.84            214.89     220.00 Note: Details can be found in the "Statement of Activities" (1)Amounts reported for 2022 have not been restated.

Increase/(Decrease) in Net Position
Before Transfers
Governmental Activities Business‐Type Activities Government‐Wide Totals 12 1149
GOVERNMENT‐WIDE REVENUES AND EXPENSES
In the following two paragraphs, refer to Table 2 for Government-wide Revenues and Expenses.

Net Revenues over Expenses decreased the City’s Net Position by $(1.87) million before restatements.

The total Government-Wide revenues for fiscal year 2022-23 were $95.93 million, $34.82 million from Governmental Activities, and $61.12 million from Business-Type Activities. City-wide total revenues increased by $5.89 million, or 6.54 percent from the prior year.

Total Government-Wide expenses for fiscal year 2022-23 are $97.80 million, an increase of $15.29 million or 18.52 percent year-over-year. City-wide total expenses supporting Governmental Activities were $44.63 million, a 20.20 percent increase from the prior year, and Business-Type Activities, $53.17 million, or a 17.14 percent increase year-over-year.

GOVERNMENTAL ACTIVITIES
Net Position for Governmental Activities is $71.16 million (after restatements), an increase of $2.15 million or 3.12 percent from the previous year.

REVENUES
Total Revenues for Governmental Activities were $34.82 million.

Charges for Services amounted to $10.33 million for the current fiscal year, which represents approximately 29.67 percent of the total revenues in the Governmental Activities category. This is an increase of $3.00 million from the last fiscal year, which is primarily from increases in Cost Allocation Plan payments for centralized administration services.

Revenues from overall tax sources totaled $15.33 million, which is a decrease of 4.31 percent yearover-year. The two largest taxes sources were Property Taxes and Sales Taxes, $6.94 million and $5.79 million, respectively. In comparison to prior fiscal year levels, Property Taxes moderately increased 5.95 percent from $6.55 million, which can be attributed to new residential construction and an increase in assessed property values, assessed value increases from changes of ownership during 2022, and Proposition 8 Recaptures. Compared to last year, Sales Taxes decreased 14.85 percent from $6.80 million due primarily to inflationary pressures that impacted prices and slowed consumer demand for non-essential goods, supplies, and services.

Other General Revenues rose to $1.26 million this fiscal year from a negative $0.11 million for the previous fiscal year. This is due to the impact of the American Rescue Plan Act funding received this fiscal year to offset public safety salaries and a positive return on investments due to the higher interest rate environment.

EXPENSES
Total Expenses for Governmental Activities were $44.63 million.

Governmental Activities expenses increased by 20.20 percent or $7.50 million over last year. The breakdown by governmental activity follows; General Government expenses increased 30.30 percent or $1.80 million due to cost-of-living and classification and compensation adjustments to salaries as well as the addition of new positions for the new Opportunity Village (one manager and four staff), plus refilling vacancies such as the Communications Manager position and Human Resources Technician. Public Safety increased 4.81 percent or $0.85 million due to significant overtime pay due to staffing shortages, plus increases in salaries to retain employees, vehicle purchases, and fire services contract costs. Community Development increased 68.71 percent or $3.58 million due to 13 1150

continued development of residential homes in the Atwell project as well as various other development projects, and the addition of a Building Official. Culture and Leisure increased 19.46 percent or $0.43 million due to the continued resumption of services that had been discontinued during the Coronavirus pandemic and parks improvements. Public Works/Transportation expenses increased 12.83 percent or $0.78 million due primarily to the Annual Streets Overlay Project, design services contracts, and engineering plan checks and inspections primarily in the Atwell project.

Interest on long-term debt remained immaterial at $70 thousand dollars.

GOVERNMENTAL ACTIVITIES‐NET REVENUES (EXPENSES)
The Net Revenues (Expenses) show the financial burden that was placed on the City’s taxpayers by each of the functions.

Table 3 and Chart 3 focus on the Revenues and Expenses (Cost of Services) in the Statement of Activity related to Governmental Activities. Chart 3 compares each program, the Revenues, in blue, versus Expenses, in red. Note that each of the governmental activities, program expenses exceed revenues, which results in subsidies from General Revenues (Taxes, Use of Money and Property, Other Revenue and Transfers).

Table 3 ‐ Program Net Cost: Government Activities
2022(1) 2023 % Chg 2022(1) 2023 % Chg 2022(1) 2023 % Chg General Government 2,860,666                    6,874,850 140% 5,938,773                    7,742,422 30% (3,078,107)                    (867,572) 72% Public Safety 3,247,702                    2,068,137 36% 17,674,930                18,528,062 5% (14,427,228)            (16,459,925) 14% Community Development 3,895,060                    4,593,886 18% 5,214,463                    8,789,153 69% (1,319,403)                (4,195,267) 218% Culture & Leisure 206,262                          161,767 22% 2,214,493                    2,641,392 19% (2,008,231)                (2,479,625) 23% Transportation          4,933,155          4,343,415 12% 6,080,185                    6,865,215 13% (1,147,030)                (2,521,800) 120% Interest on long‐term debt                         ‐                          ‐ ‐                 5,170               66,519 1187% (5,170)                              (66,519) 1187% Government Subtotal 15,142,845               18,042,055 19% 37,128,014                44,632,763 20% (21,985,169)            (26,590,708) 21% General Revenues*        15,907,333        16,777,175 5%                         ‐                          ‐ ‐        15,907,333        16,777,175 5% Transfers             607,820          1,168,771 92%                         ‐                         ‐ 100% 607,820                       1,168,771 92% TOTAL        31,657,998        35,988,001 14% 37,128,014                44,632,763 20% (5,470,016)                (8,644,762) 58% Note: Details can be found in the "Statement of Activities" (1) Amounts reported for 2022 have not been restated.

Program Revenues Total Cost of Services Net Revenues (Expenses) 14 1151

BUSINESS‐TYPE ACTIVITIES
Table 4 and chart 4 focuses on the information on the Statement of Activities that relates to Businesstype Activities which are the City’s six services funded by customer user fees; Airport, Transit, BUA Water Utility, Electric Utility, BUA Wastewater Utility, and Refuse Utility; revenues, the cost of each program, and its net cost.

Important highlights of the Changes in Net Position of Business-Type Activities are:
 Net Position from Business-Type Activities was $148.84 million after restatements (see Table 2).  Business-type activities increased Net Position by $2.96 million after restatements (see Table 2).

Table 4 ‐ Program Net Cost: Business‐Type Activities
2022(1) 2023 % Chg 2022(1) 2023 % Chg 2022(1) 2023 % Chg Airport 691,891                          231,359 67% 474,917                          443,140 7% 216,974                         (211,781) 198% Transit 1,733,225                    1,819,292 5% 1,767,281                    2,359,493 34% (34,056)                          (540,201) 1486% BUA Water Utility 14,939,344                16,464,636 10% 8,119,346                    9,956,699 23% 6,819,998                    6,507,937 5% Electric Utility 31,566,595                34,822,306 10% 30,465,230                36,026,046 18% 1,101,365                  (1,203,740) 209% BUA Wastewater Utility 4,952,743                    5,751,603 16% 3,513,714                    3,865,935 10% 1,439,029                    1,885,668 31% Refuse Utility 5,517,322                    1,092,482 80% 1,045,079                       509,645 51% 4,472,243                       582,837 87% Business Subtotal 59,401,120                60,181,678 1% 45,385,567                53,160,958 17%        14,015,553          7,020,720 50% General Revenues            (416,291)             926,517 323%                         ‐                         ‐ 0% (416,291)                         926,517 323% SUBTOTAL 58,984,829                61,108,195 4% 45,385,567                53,160,958 17% 13,599,262                  7,947,237 42% Transfers                         ‐                         ‐ 0% 607,820                       1,168,771 92% (607,820)                    (1,168,771) 92% TOTAL        58,984,829        61,108,195 4% 45,993,387                54,329,729 18% 12,991,442                  6,778,466 48% Note: Details can be found in the "Statement of Activities" (1)Amounts reported for 2022 have not been restated.

Program Revenues Total Cost of Services Net Revenues (Expenses) 15 1152
 All Business-type activities contributed to the Increase in Net Position except for Airport, Transit, and Electric, all of which fell short of breakeven. The fiscal year 2022-23 results of Net Revenues (Expenses) were $6.77 million, including non-operating revenue of $0.93 million as shown in Table 4.
 Business-Type activities are run similar to private companies except without the profit motive.

The purpose is to provide services without any city governmental funds support including all necessary infrastructure needs. Most Business-Type activities are primarily funded through rates, charges, and fees for services provided. Airport and Transit operations are heavily funded through dedicated federal and state programs.

FUNDS FINANCIAL STATEMENTS
Governmental Funds are accounted for on a modified accrual basis. Their focus is on reporting current financial information useful for managing the budget and day-to-day operations.

Governmental Funds Financial Statements of the report ties in most closely to the financial information relied upon for managing the budget and the day-to-day operations of the City.

The Fund Financial Statements are divided into three fund types:
 Governmental funds statements tell how general government services such as police, fire, public works as well as special revenue, capital project, and debt service funds were financed in the short-term as well as what remains for future spending. Property taxes, sales tax, transient occupancy tax, interest income, franchise fees, grants, contributions from other agencies, charges for services, and other revenues fund these activities. The General Fund is reported as a major fund; all other Governmental funds are non-major.
 Proprietary funds statements offer short-term and long-term financial information of the City’s utilities, the major proprietary funds include water, wastewater and electric, with the following funds airport, transit and refuse collection services reported as non-major funds. These funds require the use of full accrual accounting.
 Internal Service funds statements are proprietary funds that are reported with Governmental activities. The customers of Internal Service Funds are all internal to the City.  Fiduciary funds statements provide information about the financial relationships in which the City acts solely as a custodian, trustee, or agent for the benefit of other governmental units, private organizations, or individuals to whom the resources belong. The Successor Agency, assessment districts and other non-City funds are accounted for in this fund type. These funds require the use of full accrual accounting.

A fund is an accounting entity with a self-balancing set of accounts that the City uses to keep track of resources that have been segregated for specific activities or objectives. In addition, while some funds are required to be established by law or by bond covenants, management has also established other funds to help control and manage money for particular purposes or to show that the legal responsibilities for using certain taxes, grants, and other resources are being met.

The City uses fund accounting to demonstrate and ensure compliance with finance-related legal requirements. The Fund Financial Statements focus on individual parts of the City government, thus reporting the City’s operations in more detail than the Government-Wide statements. The types of 16 1153

Governmental Funds reported by the City include the General Fund, Special Revenue Funds, Capital Project Funds, Debt Service Funds (currently none), Permanent Funds (currently none), and Proprietary Internal Service Funds. Proprietary and Fiduciary activities are also accounted for in funds or fund groups. The fund statements provide information on near-term inflows, outflows and balances of spendable resources. Budget and interim council reporting are generally based on these funds.

The City adopts an annual appropriated budget which includes the General Fund, Special Revenue Funds, Capital Project Funds, Debt Service Funds, and Permanent Funds. A budgetary comparison statement has been provided for each of the funds to demonstrate compliance with the budget.

Although the annual operating budget includes Proprietary and Fiduciary Funds, those budgets are not required to be comparatively reported in the annual audit report.

GOVERNMENTAL FUNDS
Governmental Funds only focus on near-term inflows and outflows of spendable resources (current financial resources measurement focus), as well as on balances of spendable resources available at the end of the fiscal year. The Fund Financial Statements include the General Fund, the major fund of the governmental funds, and Other Governmental Funds, which are the total of the non-major governmental funds.

All City Funds are presented separately, the Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balances. The General Fund is considered a Major Governmental Fund. Each of the Non-Major Governmental Funds are reported in the “Combining and Individual Fund Statements and Schedules” that follow the Notes to Financial Statements and the totals are brought forward to the “Other Governmental Funds” column of the Funds Financial Statements.

All fluctuations are based on 2022 amounts which have not been restated for prior period adjustments. Therefore, all comparisons to the prior year are net of prior period adjustments.

GOVERNMENTAL FUNDS HIGHLIGHTS
 At the close of the fiscal year, the City’s governmental funds reported a combined ending fund balance of $17.30 million, a decrease of $5.61 million or 24.50 percent compared to last fiscal year.
 GASB 54 requires governments to classify fund balances according to the spending constraints defined by GASB 54. For the General Fund, $0.75 million of the $3.96 million fund balance is Unassigned, meaning those funds do not have restrictions on use. However, the remaining $3.20 million is in the categories of Non-spendable, Restricted, Committed or Assigned. The remaining $13.35 million in Governmental Funds’ fund balance are restricted for specific purposes reported by governmental category plus a separate capital projects category.

Negative restricted funds’ fund balances are reported as unassigned ($195 thousand). 17 1154

GOVERNMENTAL REVENUES
Table 5 below presents a summary of Governmental Fund Revenues by Revenue category for fiscal year 2022-23, with comparative amounts from the prior year. Revenues were $27.99 million, which is a decrease of $1.74 million or 5.84 percent compared to the previous fiscal year.

GOVERNMENTAL EXPENDITURES
Table 6 summarizes the Governmental Fund Expenditures by function for fiscal year 2022-23, with comparative amounts from prior year. Expenditures were $35.34 million, which is an increase of $1.71 million or 5.09 percent over fiscal year 2021-22.

BALANCE SHEETS OF GOVERNMENTAL FUNDS
The City maintains twenty-four individual governmental funds. These funds report financial transactions using the modified accrual accounting method.

FIDUCIARY FUNDS
The City is the trustee, or fiduciary, for certain funds held on behalf of those entities outside of the government. The City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position. The City excludes these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

Table 5 ‐ Comparison of Governmental Revenues
% of Total % of Total $ Increase /
2022(1) Revenues 2023 Revenues (Decrease) % Change
Taxes 15,587,711           52.44% 15,334,725           54.79% (252,986)               1.62% Licenses & Permits 3,096,461             10.42% 1,868,894             6.68% (1,227,567)           39.64% Intergovernmental 5,607,324             18.86% 4,190,331             14.97% (1,416,993)           25.27% Charges for Services 2,986,735             10.05% 4,743,090             16.95% 1,756,355             58.81% Use of Money & Property (106,464)               0.36% 289,456                1.03% 395,920                371.88% Fines and Forfeitures 114,948                0.39% 187,665                0.67% 72,717                  63.26% Contributions 10,042                  0.03%                           ‐ 0.00% (10,042)                 100.00% Successor Agency Admin 250,000                0.84% 250,000                0.89%                           ‐ 0.00% Miscellaneous 2,177,877             7.33% 1,124,165             4.02% (1,053,712)           48.38% TOTAL 29,724,634           100.00% 27,988,326           100.00% (1,736,308)           5.84% Note: Details can be found in the "Statement of Revenues, Expenditures and Changes in Fund Balances" (1) Amounts reported for 2022 have not been restated.

Table 6 ‐ Comparison of Governmental Expenditures
% of Total % of Total $ Increase /
2022(1) Expenditures 2023 Expenditures (Decrease) % Change General Government 4,843,512             14.40% 6,021,451             17.04% 1,177,939             24.32% Public Safety 15,814,927           47.03% 15,989,435           45.24% 174,508                1.10% Community Development 4,732,304             14.07% 5,423,682             15.35% 691,378                14.61% Parks and Recreation 1,596,510             4.75% 1,919,057             5.43% 322,547                20.20% Public Works/Transportation 1,788,191             5.32% 1,857,734             5.26% 69,543                  3.89% Operating Expenditures 28,775,444           85.57% 31,211,359           88.32% 2,435,915             8.47% Capital Outlay 4,734,064             14.08% 3,911,660             11.07% (822,404)               ‐17.37% Debt Service               120,363 0.36% 217,176                0.61% 96,813                  80.43% TOTAL          33,629,871 100.00% 35,340,195           100.00% 1,710,324             5.09% Note: Details can be found in the "Statement of Revenues, Expenditures and Changes in Fund Balances" (1) Amounts reported for 2022 have not been restated.
18 1155

The Fiduciary Funds now include all of the funds related to the Successor Agency of the Former Redevelopment Agency, which was formed upon dissolution of the Banning Community Redevelopment Agency (CRA). The Successor Agency is subject to the control of the established oversight board and can only pay enforceable obligations in existence at the date of dissolution.

Furthermore, it will hold the remaining assets of the former Redevelopment Agency until the enforceable obligations are legally satisfied, or they are distributed to local taxing entities. Additional information on the dissolution of the CRA can be found in the Footnotes to the Financial Statements (Note 17).

As a result of AB 1X 26, a law enacted by the State in 2012 dissolving the Redevelopment Agencies, Successor Agency Trust Fund receives trust revenues based on ROP’s approved by CA Department of Finance. In fiscal year 2022-23, the Successor Agency received $2.44 million from the Riverside County Redevelopment Property Tax Trust Fund (RPTTF).

Although the Fiduciary Funds Statements are a standalone report in the Funds Financial Statements, they are not part of the Government-wide Statements as the fiduciary activities are not considered part of City activities.

PROPRIETARY FUNDS
Proprietary funds account for public utility services, use of airport facilities, transit services and services where user fees are developed to recover the costs of services provided. Proprietary Funds are integrated into the Government-Wide Financial Statements and provide both long-term and short-term financial information everywhere they are presented. The full accrual method of accounting is required for these funds.
 Enterprise Funds are used to report on the individual functions for each of the enterprise activities operated by the City. The major proprietary funds are the top three below. In addition, “Other Enterprise Funds” are considered non-major under the GASB criteria.  Banning Utility Authority-Water
 Electric Utility
 Banning Utility Authority-Wastewater
 Other Enterprise funds:
o Airport
o Transit
o Refuse Utility
 Internal Service Funds report activities that provide internal services for the City’s other programs and activities such as the:
 City’s Self Insurance
 Fleet Maintenance
 Information Systems
 Utility Billing Services

NET POSITION
The Total Net Position of Enterprise Funds $153.54 million. The major funds, the total of City Utilities make up $151.29 million.

An important metric in utility operations is the Operating Income (Loss). 19 1156

OPERATING INCOME (LOSS)
Two of the three major enterprise funds have positive results of operation; Water’s operating income was $3.23 million, Electric’s was negative ($2.63 million), and Wastewater’s was $1.33 million.

GENERAL FUND HIGHLIGHTS
he General Fund has a total fund balance of $3.96 million, of which $0.75 million is Unassigned, meaning those funds do not have restrictions on use. However, the remaining $3.20 million is in the categories of Non-spendable, Restricted, Committed or Assigned.

The city has committed $1.50 million for emergency needs with a target of 25.00 percent of the total operating budget, plus assigned fund balances of $1.50 million for capital replacement, plus $0.20 million that is non-spendable in nature from prepaid costs and employee loans. The terminology and presentation of fund balances align with GASB 54 requirements.

All fluctuations are based on 2022 amounts which have not been restated for prior period adjustments. Therefore, all comparisons to the prior year are net of prior period adjustments.

GENERAL FUND – REVENUES
Table 7 below provides more information of the General Fund Revenues by category for the fiscal years 2020-21, 2021-22, and 2022-23.

For fiscal year 2022-23, General Fund revenues were $24.81 million, an increase of $0.06 million or

0.26 percent over fiscal year 2021-22. Key elements of this year’s activity versus last fiscal year are as follows:
 Property Tax Revenues increased 14.08 percent to $6.94 million due to increased property values and continued increases in home sales from new construction developments.

Table 7 ‐ General Fund Revenues
$ Increase /
(Decrease)
2020‐21 2021‐22 (1) 2022‐23 % of Total to Last Year % Change Property Tax   5,584,212   6,082,624     6,939,283 27.97% 856,659      14.08% Sales Tax   3,854,823   5,857,884     4,875,534 19.65% (982,350)      ‐16.77% Transient Occupancy Tax   1,119,765   1,290,574     1,179,126 4.75% (111,448)      ‐8.64% Franchise    922,932   535,461   543,207 2.19% 7,746     1.45% Other Taxes    753,873   846,914   737,412 2.97% (109,502)      ‐12.93% License & Permits   2,975,991   3,096,461     1,868,894 7.53% (1,227,567)      ‐39.64% Intergovernmental   2,364,405   1,413,937     1,026,131 4.14% (387,806)      ‐27.43% Charges for Services   2,728,036   2,986,735     4,743,090 19.12% 1,756,355    58.81% Use of Money & Property    265,746    (43,924)   188,719 0.76% 232,643      ‐529.65% Fines & Forfeitures    180,425   114,948   187,665 0.76% 72,717    63.26% Transfers In   1,090,159   905,947   976,234 3.94% 70,287    7.76% Contributions    255,850   255,363   250,638 1.01% (4,725)    ‐1.85% Lease Proceeds    ‐   56,146   361,506 1.46% 305,360      543.87% Subscriptions    ‐ ‐       106,550 0.43% 106,550      100.00% Miscellaneous   1,103,474   1,343,653   823,244 3.32% (520,409)      ‐38.73% TOTALS   19,808,559   24,742,723   24,807,233 100.00% 64,510    0.26% Note: Details can be found in the "Budgetary Comparison Schedule, General Fund" (1) Amounts reported for 2022 have not been restated.

T
20 1157
 Sales Tax Revenues decreased by about $0.98 million to $4.88 million or 16.77 percent due to decreased consumer spending on non-essential goods and services during the recent period of higher inflation.
 Transient Occupancy Tax declined 8.64 percent to $1.18 million. Inflationary pressures were also apparent in the lodging sector due to its discretionary nature.  Licenses & Permits experienced a significant decrease of 39.64 percent to $1.87 million. There is a significant increase in fiscal year 2023-24 due to continuing development projects. The timing of receipts and expenditures for these services do not always fall within the same fiscal year.
 Intergovernmental Revenue had a substantial decrease of 27.43 percent to $1.03 million due to less one-time money for COVID-19 relief.
 Charges for Services increased 58.81 percent to $4.74 million due primarily to increased interfund charges for administrative services provided to non-General Fund departments.

GENERAL FUND – EXPENDITURES
Table 8 below summarizes the General Fund Expenditures for the fiscal years 2020-21, 2021-22, and 2022-23.

Total General Fund expenditures were $30.01 million, which is a 20.61 percent increase over the previous year. The largest changes occurred in the following areas:
 General Government expenditures increased $1.51 million to $6.02 million, a 33.37 percent increase primarily due to classification and compensation and cost of living adjustments, combined with the filling vacancies and the addition of a Communications Officer, and staffing at Opportunity Village (one manager and four staff).
 Public Safety expenditures increased 15.73 percent or $2.17 million to $15.97 million primarily due to increased overtime due to staff injuries and wage increases to maintain employees.
 Culture & Leisure expenditures increased $0.39 million or 25.59 percent due to the continued expansion of services that were previously discontinued due to the pandemic.

Table 8 ‐ General Fund Expenditures
$ Increase /
(Decrease)
2020‐21 2021‐22(1) 2022‐23 % of Total to Last Year % Change General Government    4,484,323    4,510,023    6,015,150 20.04% 1,505,127     33.37% Public Safety    13,282,214    13,795,628    15,965,660 53.20% 2,170,032     15.73% Community Development 4,068,730        4,447,305    4,876,713 16.25% 429,408    9.66% Culture & Leisure    1,372,529    1,527,287    1,918,080 6.39% 390,793    25.59% Capital Outlay    ‐   56,146   737,152 2.46% 681,006    1212.92% Debt Service     216,212   74,480   217,176 0.72% 142,696    191.59% Transfers Out    1,599,606   471,589   281,617 0.94% (189,972)    40.28% TOTALS    21,132,286    24,882,458    30,011,548 100.00% 5,129,090     20.61% Note: Details can be found in the "Budgetary Comparison Schedule, General Fund" (1) Amounts reported for 2022 have not been restated.
21 1158

 Community Development expenditures of $4.88 million increased by $0.43 million or 9.66 percent, which is due primarily to the increased development activity of the Atwell project.  Capital Outlay expenditures totaled $0.74 million, which is $0.68 million higher than the previous fiscal year due to vehicle shortage and doubled purchases in this fiscal year.

GENERAL FUND BUDGETARY HIGHLIGHTS
The original fiscal year 2022-23 budget for the General Fund was a structurally imbalanced budget that projected a $0.92 million net loss, but included one-time revenues that were not realized for an Exclusive Negotiating Agreement (ENA) totaling $2.00 million.

The final adjusted revenue budget differs from the Original Budget in that it contains carry-forward appropriations and revenues for various projects, supplemental revenues, carry-forward appropriations for open purchase orders from the previous year, and appropriations approved by City Council throughout the year. The budgetary comparison information can be found in the audit report section “Combining and Individual Funds Statements and Schedules” under “Budgetary Comparison Schedule, General Fund”.

For the City’s General Fund, actual ending revenues of $24.81 million were $3.12 million lower than the final budgeted revenues of $27.93 million (please refer to Budgetary Comparison ScheduleGeneral Fund). This is primarily due to the loss of the ENA revenue ($2.00 million).

The General Fund actual ending expenditures of $30.01 million were $2.78 million lower than the final budget of $32.58 million. Most of the difference is accounted for by salary savings due to vacancies in several departments. Overall, the City’s General Fund showed a net decrease in fund balance of $5.20 million because of expenditures exceeding revenues, which is primarily comprised of the loss of the $2.00 ENA revenue, a $1.10 million contract amendment for engineering services, additional police vehicle purchases of $0.46 million, and increase police staff overtime of $0.31 million, and the budgeted net loss of $0.92 million.

CAPITAL ASSET AND DEBT ADMINISTRATION

CAPITAL ASSETS
The City’s investment in capital assets (Table 9) for its Governmental and Business-Type Activities as of June 30, 2023, is $229.22 million (net of accumulated depreciation), an increase of 6 percent from the previous fiscal year. This investment in capital assets includes land, structures and improvements, furniture and equipment, infrastructure, and construction in progress. The Capital Assets of the City are those assets which are used in the performance of the City’s functions including infrastructure assets. Depreciation on capital assets is recognized in the Government-Wide Financial Statements.
22 1159

Details on the capital assets can be found in Note 4 of the Notes to Financial Statements section.

LONG‐TERM DEBT
Table 10 is a summary of the City’s long-term debt for the year ended June 30, 2023, including the Net Pension Liability required by GASB No. 68 and 71, the Total Other Post-Employment Benefits Liability required by GASB 75, and Lease Liabilities required by GASB 87. City-wide long-term debt was $105.66 million as of fiscal year end, which is an increase of 2 percent from the prior year. The borrowing entities received no changes in debt ratings during the fiscal year. Subsequent to June 30, 2023, the Electric revenue bond was downgraded to AA by S&P Global Ratings and currently is on the negative watchlist.

As of June 30, 2023, the City’s Governmental Activities had long term debt in the amount of $40.07 million including Net Pension Liability of $33.85 million. The 61 percent increase in long-term debt is primarily due to the 69 percent increase in net pension liability that was the result of negative returns on the pension investment portfolio and a 51 percent increase in Total OPEB Liability, plus implementation of GASB Statement No. 96 for Software Based Information Technology Arrangements. No new debts were issued in the governmental activities for the current year. The Redevelopment Tax Allocation Bonds and other loans are no longer reported as a Governmental Activity. For additional information on the Redevelopment Tax Allocation bonds, refer to Note 17 of the notes to the Financial Statements.

Long-term debt in the Business-Type Activities amounted to $65.59 million including Net Pension Liability of $15.84 million. The 4 percent increase in long-term debt is primarily due to the 52 percent increase in net pension liability that was the result of negative returns on the pension investment portfolio and a 33 percent increase in Total OPEB Liability, plus implementation of GASB Statement No. 96 for Software Based Information Technology Arrangements, partially offset by debt payments and premium amortization. For additional information on long-term debt refer to Note 8 of the Notes to the Financial Statements. For additional information on Net Pension Liability refer to Note 12 of the Notes to the Financial Statements; for Other Post-Employment Benefits (OPEB) refer to Note 13; and for Leases and Software subscriptions refer to Note 8 (reported within Long-Term Debt).

Table 9  ‐ Capital Assets by Activity
2022(1) 2023 % Chg 2022(1) 2023 % Chg 2022(1) 2023 % Chg Land 9,438,620                    9,438,620 0% 5,615,491                    5,867,684 4% 15,054,111                15,306,304 2% Construction in Progress 4,470,154                    1,204,442 73% 16,166,975                19,419,281 20% 20,637,129                20,623,723 0% Building and Structures* 6,471,796                    5,890,724 9% 83,618                            126,605 51% 6,555,414                    6,017,329 8% Land Improvements* 6,756,332                    6,133,791 9% 1,859,363                    2,479,198 33% 8,615,695                    8,612,989 0% Machinery and Equipment* 740,009                          686,751 7% 3,147,740                    5,752,968 83% 3,887,749                    6,439,719 66% Vehicles* 365,562                       1,287,654 252%                          ‐ ‐                          0% 365,562                       1,287,654 252% Utility Plant 1,372,421                    1,359,951 1% 107,729,144            113,092,450 5% 109,101,565            114,452,401 5% Infrastructure* 52,099,746                54,997,851 6%                         ‐                         ‐ 0% 52,099,746                54,997,851 6% Leased Assets             415,175             944,183 127% 490,257                          366,715 25% 905,432                       1,310,898 45% Subscription Assets                         ‐               72,078 0%                         ‐             101,035 0%                         ‐             173,113 0% TOTAL        82,129,815        82,016,045 0% 135,092,588            147,205,936 9% 217,222,403            229,221,981 6% Note: Details can be found in "Note 4 (Changes in Capital Assets)" * Net of accumulated depreciation (1) Amounts reported for 2022 have not been restated.

Governmental Activities Business‐Type Activities Totals 23 1160
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Banning’s finances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City’s Finance Department, at the City of Banning, P.O. Box 998, Banning, California, 92220.

Table 10 ‐ Long Term Debt/Liability Recap
2022(1) 2023 % Chg 2022(1) 2023 % Chg 2022(1) 2023 % Chg Compensated Absences 1,454,829                  1,608,129 11% 891,542                       1,038,163 16% 2,346,371                  2,646,292 13% Revenue Bonds ‐ ‐     0% 46,620,000                43,930,000 6% 46,620,000              43,930,000 6% Claims & Judgements 2,556,226                  2,445,682 4% ‐ ‐            0% 2,556,226                  2,445,682 4% Loans ‐ ‐     0% ‐ ‐            0% ‐ ‐ 0%
Leases           389,729          1,362,926 250% 457,987                          302,895 34% 847,716                     1,665,821 97% Software subscriptions ‐               77,830 0% ‐ ‐            0% ‐             77,830 0% Financed purchases ‐ ‐     0% ‐             381,099 0% ‐           381,099 0% SUBTOTAL 4,400,784                  5,494,567 25% 47,969,529                45,652,157 5% 52,370,313              51,146,724 2% Less:

Unamortized original issue premium          3,984,316          3,706,161 7% 3,984,316                  3,706,161 7% Unamortized original issue discount 0% ‐ ‐ 0%
Net Business‐Type Activities        51,953,845        49,358,318 5% 56,354,629              54,852,885 3% Net Pension Liability 20,       070,019        33,852,647 69% 10,452,228                15,840,946 52% 30,522,247              49,693,593 63% Total OPEB Liability           479,093             721,956 51% 589,230                          392,822 33% 1,068,323                  1,114,778 4% TOTAL 24,949,896              40,069,170 61% 62,995,303                65,592,086 4% 87,945,199            105,661,256 20% Note: Details can be found in Note 8 (Long Term Debt) and in Note 12 (City Employees Retirement Plan) (1) Amounts reported for 2022 have not been restated.

Governmental Activities Business‐Type Activities Totals 24 1161
Basic Financial Statements
1162
See Notes to Financial Statements     25
City of Banning, California
Statement of Net Position
June 30, 2023
Governmental Business‐ Type
Activities Activities Total
Assets
Cash and investments 8,345,236 $        $     50,255,931 $     58,601,167 Receivables
Accounts 2,252,228                    9,772,606        12,024,834 Loans 774,101                                1,924              776,025 Interest 55,806                              211,647              267,453 Grants 950,573                        1,587,058          2,537,631 Internal balances 8,321,851                    ‐ (8,321,851) Prepaid costs 171,607                            787,612              959,219 Due from other governments 1,920,085           ‐                                     1,920,085 Inventories 54,297                          7,247,696          7,301,993 Restricted assets
Cash and investments                           ‐          1,156,151          1,156,151 Cash with fiscal agent 8,388,827                    3,560,383        11,949,210 Investment in SCPPA Project Stabilization Fund                           ‐          3,176,262          3,176,262 Capital assets
Capital assets, not being depreciated 10,643,062                25,286,965        35,930,027 Capital assets, net of depreciation 70,356,722              121,451,221      191,807,943 Right to use lease assets, net of accumulated
amortization 944,183                            366,715          1,310,898 Right to use subscription IT assets, net of
accumulated amortization 72,078                              101,035              173,113 Total assets 113,250,656            216,641,355      329,892,011 Deferred Outflows of Resources
Deferred charge on refunding                           ‐          2,258,756          2,258,756 Deferred pension related items 12,204,935                  4,446,048        16,650,983 Deferred OPEB related items (11,445)                               48,128                36,683 Total deferred outflows of resources 12,193,490                  6,752,932        18,946,422 Primary Government
1163
See Notes to Financial Statements     26
City of Banning, California
Statement of Net Position (Continued)
June 30, 2023
Governmental Business‐ Type
Activities Activities Total
Liabilities
Accounts payable 2,997,589 $        $       3,257,580 $       6,255,169 Accrued liabilities 1,           804,257              212,685          2,016,942 Accrued interest                           ‐              229,204              229,204 Unearned revenue 4,097,591                    4,076,009          8,173,600 Deposits payable 992,382                            787,834          1,780,216 Due to other governments 18,281                 ‐                                           18,281 Noncurrent liabilities
Due in one year
Compensated absences 989,219                            105,970          1,095,189 Claims payable 530,660               ‐                                         530,660 Long term liabilities              682,730          3,077,440          3,760,170 Due in more than one year
Compensated absences 618,910                            932,193          1,551,103 Claims payable 1,915,022           ‐                                     1,915,022 Long term liabilities              758,026        45,242,715        46,000,741 Net pension liability 33,         852,647        15,840,946        49,693,593 Total OPEB liability              721,956              392,822          1,114,778 Total liabilities 49,         979,270        74,155,398      124,134,668 Deferred Inflows of Resources
Deferred gain in refunding                           ‐                84,621                84,621 Deferred pension related items 4,264,961                        243,528          4,508,489 Deferred OPEB related items 40,381                                69,858              110,239 Total deferred inflows of resources 4,305,342                        398,007          4,703,349 Net Position
Net investment in capital assets 80,575,289              104,263,839      184,839,128 Restricted for
Community development projects 2,423,237           ‐                                     2,423,237 Public safety 20,247                 ‐                                           20,247 Culture and leisure 89,821                 ‐                                           89,821 Transportation 2,816,035           ‐                                     2,816,035 Capital projects 4,042,463                        356,460          4,398,923 SCPPA projects                           ‐              781,048              781,048 SCPPA stabilization fund                           ‐          3,176,262          3,176,262 Unrestricted (18,807,558)               40,263,273        21,455,715 Total net position 71,159,534 $      $   148,840,882 $   220,000,416 Primary Government
1164
See Notes to Financial Statements 27
City of Banning, California
Statement of Activities
Year Ended June 30, 2023
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Primary Government
Governmental Activities
General government 7,742,422 $        $     6,336,709 $       ‐ $      538,141 Public safety   18,528,062   472,520     1,595,617 ‐
Community development     8,789,153     3,352,881     1,241,005 ‐ Culture and leisure     2,641,392   161,767 ‐    ‐
Transportation     6,865,215    9,432     1,817,540     2,516,443 Interest expense     66,519 ‐    ‐    ‐
Total governmental activities   44,632,763   10,333,309     4,654,162     3,054,584 Business‐Type Activities
Airport   443,140   187,875     20,000     23,484
Transit     2,359,493     52,344     1,669,989     96,959 Banning Utility Authority Water     9,956,699   12,107,023 ‐        4,357,613 Electric Utility   36,026,046   31,286,002 ‐        3,536,304 Banning Utility Authority Wastewater 3,865,935          5,029,168 ‐      722,435 Refuse Utility   509,645     1,076,108     16,374 ‐
Total business‐type activities   53,160,958   49,738,520     1,706,363     8,736,795 Total primary government $     97,793,721 $     60,071,829 $     6,360,525 $     11,791,379 General Revenues
Taxes
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business license taxes
Other taxes
Use of money and property
Other
Total general revenues
Transfers
Total general revenues and transfers
Change in Net Position
Net Position ‐ Beginning of Year
Prior Period Adjustment
Net Position ‐ Beginning of Year Restated
Net Position ‐ End of Year
Program Revenues
1165
See Notes to Financial Statements   28
City of Banning, California
Statement of Activities (Continued)
Year Ended June 30, 2023
Governmental Business‐Type
Activities Activities Total
$          ‐ (867,572) $                         $         (867,572) ‐ (16,459,925)                                  (16,459,925) ‐ (4,195,267)                                    (4,195,267) ‐ (2,479,625)                                    (2,479,625) ‐ (2,521,800)                                    (2,521,800) ‐ (66,519)                                          (66,519) ‐ (26,590,708)                                  (26,590,708) ‐            (211,781)            (211,781)
‐            (540,201)            (540,201)
‐          6,507,937          6,507,937
‐         (1,203,740)         (1,203,740)
‐          1,885,668          1,885,668
‐              582,837              582,837
‐          7,020,720          7,020,720
(26,590,708)          7,020,720       (19,569,988)
6,939,283                           ‐          6,939,283 1,179,126                           ‐          1,179,126 5,790,112                           ‐          5,790,112 543,207                           ‐              543,207 184,270 184,270
698,727                           ‐              698,727 317,399 796,142                        1,113,541
1,125,051              130,375          1,255,426
16,777,175              926,517        17,703,692
1,168,771          ‐ (1,168,771)
17,945,946            (242,254)        17,703,692
(8,644,762)          6,778,466         (1,866,296)
69,013,432      145,878,021      214,891,453
10,790,864         (3,815,605)          6,975,259
79,804,296      142,062,416      221,866,712
$     71,159,534 $   148,840,882 $   220,000,416
Net (Expense) Revenue and
Changes in Net Position
1166
Fund Financial Statements
1167
See Notes to Financial Statements   29
City of Banning, California
Balance Sheet
Governmental Funds
June 30, 2023
Nonmajor Total
General Governmental Governmental
Fund Funds Funds
Assets
Pooled cash and investments 1,103,628 $        $       7,239,012 $       8,342,640 Receivables
Accounts, Net 2,090,113 304                                2,090,417 Loans 34,164 739,937                            774,101 Interest 26,076 28,004                                54,080 Grants 503,795 446,778                            950,573 Prepaid costs 168,511               ‐                                         168,511 Due from other governments 1,556,223                        363,862          1,920,085 Due from other funds 3,458,704                    6,065,258          9,523,962 Restricted assets
Cash and investments with fiscal agents                           ‐          8,388,827          8,388,827 Total assets 8,941,214                  23,271,982        32,213,196 Liabilities Deferred Inflows of
Resources and Fund Balances
Liabilities
Accounts payable 2,067,893                        637,501          2,705,394 Accrued liabilities              886,590                11,344              897,934 Unearned revenues 29,894                          4,067,697          4,097,591 Deposits payable 888,896                            103,486              992,382 Due to other funds                           ‐          4,141,316          4,141,316 Total liabilities 3,           873,273          8,961,344        12,834,617 Deferred Inflows of Resources
Unavailable revenues 1,111,889                        963,283          2,075,172 Total deferred inflows of resources 1,111,889                        963,283          2,075,172 1168
See Notes to Financial Statements   30
City of Banning, California
Balance Sheet (Continued)
Governmental Funds
June 30, 2023
Nonmajor Total
General Governmental Governmental
Fund Funds Funds
Fund Balances
Nonspendable
Prepaid costs 168,511 $            ‐ $                         $           168,511 Employee loans 34,164                 ‐                                           34,164 Restricted
Community development projects                           ‐          1,683,300          1,683,300 Public safety                           ‐                20,247                20,247 Culture and leisure                           ‐                89,821                89,821 Transportation                           ‐          2,618,557          2,618,557 Capital projects                           ‐          4,042,463          4,042,463 Committed
Emergency contingency 1,500,000                           ‐          1,500,000 Assigned
Capital replacement 1,500,000                    5,088,061          6,588,061 Unassigned 753,377                          (195,094)              558,283 Total fund balances 3,956,052                  13,347,355        17,303,407 Total liabilities, deferred inflows
of resources, and fund balances 8,941,214 $        $     23,271,982 $     32,213,196 1169
See Notes to Financial Statements     31
City of Banning, California
Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds
June 30, 2023
Fund Balances ‐ Total Governmental Funds 17,303,407 $
Amounts reported for governmental activities in the statement of net position are different because:

Capital and right to use assets net of depreciation and amortization have not been included as financial resources in governmental fund activity. 81,711,703 Pension related liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the statement of net position as the changes in these amounts affect only the government‐wide statements for governmental activities:

Deferred outflows of resources 11,109,362 $
Deferred inflows of resources (4,204,640)
Pension liability (29,928,901)              (23,024,179) Long‐term debt and compensated absences that have not been included in the governmental fund activity:

Compensated absences (1,414,744)
Lease liability (1,333,487)
Subscription‐based IT arrangements (SBITAs) (77,830)                        (2,826,061) OPEB related liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the statement of net position as the changes in these amounts affect only the government‐wide statements for governmental activities:

Deferred outflows of resources (20,055)
Deferred inflows of resources (18,570)
OPEB liability (604,109)                        (642,734) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 2,075,172 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 assets and liabilities of the internal service funds must be added to the statement of net position. (3,437,774) Net Position of Governmental Activities 71,159,534 $
1170
See Notes to Financial Statements 32
City of Banning, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2023
Other Total
General Governmental Governmental
Fund Funds Funds
Revenues
Taxes $     14,274,562 $     1,060,163 $     15,334,725 Licenses and permits          1,868,894 ‐            1,868,894 Intergovernmental          1,026,131    3,164,200          4,190,331 Charges for services          4,743,090 ‐            4,743,090 Use of money and property         188,719     100,737         289,456 Fines and forfeitures         187,665 ‐           187,665 Contribution from Successor Agency         250,000 ‐           250,000 Miscellaneous 823,882     300,283          1,124,165
Total revenues   23,362,943    4,625,383   27,988,326
Expenditures
Current
General government     6,015,150   6,301     6,021,451
Public safety   15,965,660    23,775   15,989,435
Community development     4,876,713     546,969     5,423,682 Culture and leisure     1,918,080    977     1,919,057
Transportation    ‐    1,857,734     1,857,734
Capital outlay   737,152    3,174,508     3,911,660
Debt service
Principal retirement   179,036 ‐     179,036
Interest and Fiscal Charges     38,140 ‐       38,140
Total expenditures   29,729,931    5,610,264   35,340,195 Excess (Deficiency) of Revenues over Expenditures    (6,366,988)   (984,881)    (7,351,869) Other Financing Sources (Uses)
Subscriptions   106,550 ‐     106,550
Leases 361,506     762,007     1,123,513
Transfers in   976,234    1,170,868     2,147,102
Transfers out    (281,617)   (696,716)    (978,333)
Total other financing sources (uses)     1,162,673    1,236,159     2,398,832 Net Change in Fund Balances    (5,204,315)     251,278    (4,953,037) Fund Balances ‐ Beginning of Year     9,820,214     13,096,077   22,916,291 Prior Period Adjustment    (659,847) ‐      (659,847)
Fund Balances ‐ Beginning of Year,
As Restated     9,160,367     13,096,077   22,256,444
Fund Balances ‐ End of Year $       3,956,052 $     13,347,355 $     17,303,407 1171
See Notes to Financial Statements   33
City of Banning, California
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities
Governmental Funds
Year Ended June 30, 2023
Net Change in Fund Balances ‐ Total Governmental Funds (4,953,037) $ Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the 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 $       3,911,660
Capital contributions    2,476,459
Gain/(Loss) on Disposal         (22,496)
Depreciation   (6,438,893)   (73,270)
Debt proceeds provide current financial resources to governmental funds, issuing debt increases long‐term liabilities in the statement of net position. Repayment of debt principal is an expenditure in the governmental funds, but repayment reduces long‐term liabilities in the statement of net position.

Debt issuance ‐ leases (1,123,513)
Lease principal payments    122,533
Debt issuance ‐ subscriptions    (106,550)
Subscription IT principal payments   28,720   (1,078,810) 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   (130,927)
Pension   (1,780,982)
OPEB   (320,146)
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.    1,041,956 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.   (1,349,546) Change in Net Position of Governmental Activities $      (8,644,762) 1172
See Notes to Financial Statements     34
City of Banning, California
Statement of Net Position
Proprietary Funds
June 30, 2023
Banning Utility
Authority Electric
Water Utility
Assets
Current
Pooled Cash and Investments 28,353,840 $      $           119,474 Receivables
Accounts, net 2,257,589 6,438,472
Loans                           ‐                  1,172 Interest 92,265                                25,703
Grants 1,498,240           ‐
Prepaid costs 2,625                                781,048 Due from other funds                            ‐ ‐
Inventories 802,540                        6,411,886
Restricted
Cash and investments                           ‐          1,156,151 Cash with fiscal agent 126,430                            701,200 Investment in SCPPA Project Stabilization Fund                           ‐          3,176,262 Total current assets 33,133,529                18,811,368 Noncurrent
Capital assets
Capital assets not being depreciated 5,502,898                  18,176,897 Capital assets ‐ net of accumulated depreciation 50,860,126                55,956,415 Right to use lease assets, net of accumulated amortization 228,774                            137,941 Right to use subscription IT assets, net of accumulated amortization                           ‐                74,180 Total noncurrent assets 56,591,798                74,345,433 Total assets 89,725,327                93,156,801
Deferred Outflows of Resources
Deferred charge on refunding 611,975                        1,646,781 Deferred pension related items 912,029                        2,520,151 Deferred OPEB related items 21,139                                  5,652 Total deferred outflows of resources 1,545,143                    4,172,584 Business‐Type Activities
Enterprise Funds
1173
See Notes to Financial Statements     35
City of Banning, California
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
Governmental
Activities
Banning Utility Other
Authority Enterprise Internal Service
Wastewater Funds Total Fund
$     20,662,343 $       1,120,274 $      50,255,931 $               2,596 956,879 119,666                          9,772,606              161,811 ‐                      752                     ‐ 1,924
71,156                22,523               211,647                  1,726 ‐                88,818             ‐ 1,587,058
1,313                  2,626               787,612                  3,096 ‐          5,075,930            5,075,930              615,506 ‐                33,270            7,247,696                54,297 ‐ ‐                                        ‐ 1,156,151
‐ 2,732,753                                        ‐ 3,560,383 ‐ ‐                                        ‐ 3,176,262
24,424,444          6,463,859          82,833,200              839,032 1,100,768              506,402           ‐ 25,286,965
12,748,916          1,885,764       121,451,221              264,700 ‐ ‐                                          366,715                39,642 ‐                26,855                ‐ 101,035
13,849,684          2,419,021       147,205,936              304,342 38,274,128          8,882,880       230,039,136          1,143,374 ‐ ‐                                        ‐ 2,258,756
351,532              662,336            4,446,048          1,095,573 18,713                  2,624                  48,128                  8,610 370,245              664,960            6,752,932          1,104,183 Business‐Type Activities
Enterprise Funds
1174
See Notes to Financial Statements     36
City of Banning, California
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
Banning Utility
Authority Electric
Water Utility
Liabilities
Current
Accounts payable $       1,482,164 $       1,211,488
Accrued liabilities                46,542              120,756 Accrued interest              133,885                85,254 Unearned revenues                            ‐ ‐
Deposits payable 236,770                            469,091 Due to other governments                            ‐ ‐ Due to other funds                           ‐          8,694,938 Compensated absences 14,174                                88,351 Claims and judgments                            ‐ ‐
Bonds, notes, and leases 1,278,053                    1,475,075 Total current liabilities 3,           191,588        12,144,953 Noncurrent
Net pension liability 3,           224,756          8,865,125 Total OPEB liability              107,525              171,756 Compensated absences 222,995                            485,709 Claims and judgments                            ‐ ‐
Bonds, notes, and leases 18,778,514                23,052,414 Total noncurrent liabilities 22,         333,790        32,575,004 Total liabilities 25,         525,378        44,719,957 Deferred Inflows of Resources
Deferred gain on refunding                            ‐ ‐ Deferred pension related items 49,575                              136,287 Deferred OPEB related items 10,633                                17,558 Total deferred inflows of resources 60,208                              153,845 Net Position
Net investment in capital assets 37,147,206                52,165,925 Restricted for capital projects 126,430               ‐ Restricted for SCPPA projects                           ‐              781,048 Restricted for SCPPA Stabilization Fund                           ‐          3,176,262 Unrestricted 28,411,248                 (3,667,652)
Total net position 65,684,884 $      $     52,455,583
Business‐Type Activities
Enterprise Funds
1175
See Notes to Financial Statements     37
City of Banning, California
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
Activities
Banning Utility Other
Authority Enterprise Internal Service
Wastewater Funds Total Fund
$             78,818 $           485,110 $         3,257,580 $           292,195 14,600                30,787               212,685              906,323 ‐ 10,065                                           ‐ 229,204 ‐          4,076,009             ‐ 4,076,009
58,489                23,484                ‐ 787,834
‐ ‐                            ‐                                             18,281 ‐ ‐                                       8,694,938          2,379,144 1,758                  1,687               105,970                  3,801 ‐ ‐                            ‐                                           530,660 ‐ 324,312                                       3,077,440                26,738 488,042          4,617,077          20,441,660          4,157,142 1,340,651          2,410,414          15,840,946          3,923,746 33,797                79,744               392,822              117,847 90,378              133,111               932,193              189,584 ‐ ‐                            ‐                                       1,915,022 ‐ 3,411,787                                     45,242,715                  2,701 4,876,613          2,623,269          62,408,676          6,148,900 5,364,655          7,240,346          82,850,336        10,306,042 ‐ 84,621                                              ‐ 84,621 20,610                37,056               243,528                60,321 26,533                15,134                  69,858                21,811 131,764                52,190               398,007                82,132 12,531,687          2,419,021       104,263,839              274,903 ‐ 230,030                                           ‐ 356,460 ‐ ‐                                           ‐ 781,048 ‐ ‐                                        ‐ 3,176,262
20,386,237            (163,717)          44,966,116         (8,415,520) $     33,147,954 $       2,255,304 $    153,543,725 $      (8,140,617) Enterprise Funds
1176
See Notes to Financial Statements     38
City of Banning, California
Reconciliation of Net Position to the Statement of Net Position Proprietary Funds
June 30, 2023
Net Position per Statement of Net Position ‐ Proprietary Funds 153,543,725 $ Prior years' accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds. (3,184,854) Current years' adjustments to reflect the consolidation of internal service activities related to enterprise funds. (1,517,989)
Net Position per Statement of Net Position 148,840,882 $ 1177
See Notes to Financial Statements     39
City of Banning, California
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
Year Ended June 30, 2023
Banning Utility
Authority Electric
Water Utility
Operating Revenues
Sales and service charges 12,107,023 $      $     31,286,002 Miscellaneous 41,664                                32,024 Total operating revenues 12,148,687                31,318,026 Operating Expenses
Salaries and benefits 2,146,615                    4,754,296 Supplies and services 5,022,056                    4,819,636 Repairs and maintenance 79,192                                66,583 Street lighting costs                           ‐              145,275 Power purchased                           ‐        21,914,811 Insurance premiums                            ‐ ‐
Depreciation expense 1,672,805                    2,243,150 Total operating expenses 8,920,668                  33,943,751 Operating Income (Loss) 3,228,019                   (2,625,725) Nonoperating Revenues (Expenses)
Intergovernmental 1,984,405                        213,974 Interest revenue and change in fair value of investments 270,365                            261,390 Interest expense (751,722)                     (1,053,586) Gain (loss) on disposal of capital assets 23,213                                  2,092 Total nonoperating revenues (expenses) 1,526,261                      (576,130) Income (Loss) before Transfers and Capital
Contributions 4,754,280                   (3,201,855)
Capital Contributions 2,373,208 3,322,330
Transfers In 16,174 339,589
Transfers Out (470,000)             ‐
Changes in Net Position 6,673,662                        460,064 Net Position ‐ Beginning of Year 59,030,405                51,708,181 Prior Period Adjustment (19,183)                             287,338 Net Position ‐ Beginning of Year
As Restated 59,011,222                51,995,519
Net Position ‐ End of Year 65,684,884 $      $     52,455,583 Business‐Type Activities
Enterprise Funds
1178
See Notes to Financial Statements   40
City of Banning, California
Statement of Revenues, Expenses and Changes in Fund Net Position (Continued) Proprietary Funds
Year Ended June 30, 2023
Governmental
Activities
Banning Utility Other
Authority Enterprise Internal
Wastewater Funds Totals Service Funds
$       5,029,168 $      1,316,327 $     49,738,520 $      7,532,531 1    20,290    93,979    23,273
5,029,169   1,336,617    49,832,499   7,555,804
872,363   1,714,682    9,487,956   2,695,610
2,040,325   1,205,334    13,087,351   4,410,295
57,784    11,845   215,404    527,899
‐ ‐     145,275   ‐
‐ ‐      21,914,811   ‐
‐ ‐     ‐   2,781,455
727,353    285,836    4,929,144    35,538
3,697,825   3,217,697    49,779,941    10,450,797
1,331,344   (1,881,080)    52,558   (2,894,993)
‐   1,826,806    4,025,185   ‐
193,518    70,869   796,142    27,943
(57,720) ‐      (1,863,028)    (596)
‐    11,091    36,396    109
135,798   1,908,766    2,994,695    27,456
1,467,142    27,686    3,047,253   (2,867,537)
722,435   ‐    6,417,973   ‐
3,693    112,857   472,313    2
(181,000)   (990,084)    (1,641,084)   ‐
2,012,270   (849,541)    8,296,455   (2,867,535)
31,003,409   7,320,880   149,062,875   (5,273,082)
132,275   (4,216,035)    (3,815,605)   ‐
31,135,684   3,104,845   145,247,270   (5,273,082)
$     33,147,954 $      2,255,304 $    153,543,725 $     (8,140,617) Business‐Type Activities
Enterprise Funds
1179
See Notes to Financial Statements     41
City of Banning, California
Reconciliation of Changes in Fund Net Position
Proprietary Funds
Year Ended June 30, 2023
Changes in Net Position, per the Statement of Revenues, 8,296,455 $ Expenses and Changes in Fund Net Position ‐ Proprietary Funds Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds. (1,517,989) Changes in Net Position of Business‐Type Activities per Statement of Activities 6,778,466 $
1180
See Notes to Financial Statements     42
City of Banning, California
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
Banning Utility
Authority Electric
Water Utility
Operating Activities
Cash received from customers and users 12,087,456 $      $     29,287,945 Cash paid to suppliers for goods and services (4,156,978)                (29,526,598) Cash paid to employees for services (2,246,774)                  (5,081,511) Net Cash Provided (Used) by Operating Activities 5,683,704                   (5,320,164) Noncapital Financing Activities
Cash transfers in 16,174                              339,589 Cash transfers out (470,000)             ‐
Interfund borrowings                           ‐          8,694,938 Intergovernmental 505,720                            213,974 Net Cash Provided (Used) by Noncapital Financing Activities 51,894                          9,248,501 Capital and Related Financing Activities
Acquisition and construction of capital assets (5,300,923)                (10,006,291) Capital contributions 2,373,208                    3,322,330 Principal paid on capital debt (1,226,836)                  (1,393,256) Interest paid on capital debt (837,520)                     (1,094,337) Proceeds from sales of capital assets 23,213                                  2,092 Net Cash Used by Capital and Related Financing Activities (4,968,858)                  (9,169,462) Investing Activities
Collections of repayment on loan receivables                           ‐                13,488 Issuance of notes and loans receivable                            ‐ ‐ Payments made to SCPPA project stabilization fund                           ‐            (271,013) Interest received 219,662                            238,838 Net Cash Used by Investing Activities 219,662                             (18,687) Net Change in Cash and Cash Equivalents 986,402                       (5,259,812) Cash and Cash Equivalents ‐ Beginning of Year 27,493,868                  7,236,637 Cash and Cash Equivalents ‐ End of Year 28,480,270 $      $       1,976,825 Reconciliation to the Statement of Net Position
Pooled Cash and Investments 28,353,840 $      $           119,474 Restricted Cash and investments                           ‐          1,156,151 Restricted Cash with fiscal agent 126,430                            701,200 Total Cash and Cash Equivalents 28,480,270 $      $       1,976,825 Business‐Type Activities
Enterprise Funds
1181
See Notes to Financial Statements     43
City of Banning, California
Statement of Cash Flows (Continued)
Proprietary Funds
Year Ended June 30, 2023
Governmental
Activities
Banning Utility Other
Authority Enterprise Internal
Wastewater Funds Totals Service Fund
$       4,799,196 $       1,308,142 $     47,482,739 $       7,555,938 (2,077,831)         (1,235,445)       (36,996,852)         (6,932,098) (884,129)         (1,731,932)         (9,944,346)         (2,788,537) ‐
1,837,236         (1,659,235)              541,541         (2,164,697) 3,693              112,857              472,313                          2 (181,000)            (990,084)          ‐ (1,641,084)
‐         (5,075,930)          3,619,008          1,092,966 ‐          1,752,623          2,472,317                18,678 (177,307)         (4,200,534)          4,922,554          1,111,646 (1,024,950)            (133,279)        ‐ (16,465,443)
‐ 722,435                                      ‐ 6,417,973 ‐ (420,950)                                    (3,041,042)               (22,821) ‐ (65,165)                                    (1,997,022)                    (596) ‐                11,091                36,396                      109 (788,630)            (122,188)       (15,049,138)               (23,308) ‐ ‐                                            ‐ 13,488 ‐                  4,044                   ‐ 4,044
‐ ‐                                        ‐ (271,013)
154,069                59,325              671,894                27,001 ‐
154,069                63,369              418,413                27,001 ‐
1,025,368         (5,918,588)         (9,166,630)         (1,049,358) ‐
22,369,728          7,038,862        64,139,095          1,051,954 ‐
$     23,395,096 $       1,120,274 $     54,972,465 $               2,596 $     20,662,343 $       1,120,274 $     50,255,931 $               2,596 ‐ ‐                                      ‐ 1,156,151
‐ 2,732,753                                      ‐ 3,560,383 $     23,395,096 $       1,120,274 $     54,972,465 $               2,596 Business‐Type Activities
Enterprise Funds
1182
See Notes to Financial Statements     44
City of Banning, California
Statement of Cash Flows (Continued)
Proprietary Funds
Year Ended June 30, 2023
Banning Utility
Authority Electric
Water Utility
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities
Operating Income (Loss) $       3,228,019 $      (2,625,725) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities
Changes in Operating Assets and Liabilities
Depreciation (expense) 1,672,805                    2,243,150 (Increase) Decrease in Assets and Deferred Outflow of Resources Accounts receivable            (178,271)            (233,511) Deposits receivable ‐                                         115,569 Prepaid expense (2,625)                               196,499 Inventories 119,665                       (2,108,638)
Deferred pension related items (539,047)                     (1,494,791) Deferred OPEB related items (17,338)                                 4,796 Increase (Decrease) in Liabilities
Accounts payable              908,740         (1,937,834) Accrued liabilities 14,297                                37,271 Deposits payable                21,233            (679,730) Unearned revenue ‐                            ‐
Net pension liability          1,096,987          3,015,708 Total OPEB liability               (12,425)            (157,996) Claims and judgments ‐                            ‐
Compensated absences                16,911                90,577 Deferred pension related items (655,880)                     (1,803,067) Deferred OPEB related items 10,633                                17,558 Net Cash Provided (Used) by Operating Activities 5,683,704 $        $      (5,320,164) Supplemental Disclosures of Noncash Investing
and Financing Activity
Financed purchase of capital asset with long‐term debt $                         ‐ ‐ $ Amortization of Unamortized Premiums/Discounts 125,339                            152,816 Amortization of Gain/Loss on Defeasance $           (48,958) $         (117,627) Enterprise Funds
Business‐Type Activities
1183
See Notes to Financial Statements     45
City of Banning, California
Statement of Cash Flows (Continued)
Proprietary Funds
Year Ended June 30, 2023
Governmental
Activities
Banning Utility Other
Authority Enterprise Internal
Wastewater Funds Totals Service Fund
$       1,331,344 $      (1,881,080) $             52,558 $      (2,894,993) 727,353              285,836          4,929,144                35,538 ‐
(228,660)               (26,985)            (667,427)            (103,622) ‐ ‐                                          ‐ 115,569
(1,313)                 (2,626)              189,935                 (3,096) ‐                  1,136         (1,987,837)              106,852 (196,469)            (383,542)         (2,613,849)            (641,744) (17,133)                      217               (29,458)                 (3,985) 17,523              430,284            (581,287)                27,998 2,617                12,999                67,184              870,097 138               (64,743)             ‐ (723,102)
‐            (396,806)             ‐ (396,806)
456,058              819,965          5,388,718          1,334,767 (16,071)                 (9,916)            (196,408)               (28,103) ‐ ‐                            ‐                                       (110,544) 7,990                31,143              146,621                22,373 (272,674)            (490,251)         (3,221,872)                21,811 26,533                15,134                69,858            (798,046) $       1,837,236 $      (1,659,235) $           541,541 $      (2,164,697) $            ‐ 577,049 $                         ‐ $                         ‐ $ ‐ ‐                            ‐                            ‐ $                ‐ 6,770 $                         ‐ $                         ‐ $ Enterprise Funds
Business‐Type Activities
1184
See Notes to Financial Statements     46
City of Banning, California
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Private‐Purpose
Trust Fund
Successor
Custodial Agency of the
Funds Former RDA
Assets
Pooled cash and investments 530,962 $            $             71,660 Receivables
Accounts 2,951                                  11,500
Notes and loans                           ‐              250,155 Interest 439                       ‐
Prepaid costs                           ‐              185,340 Due from other governements 2,217                   ‐
Restricted assets
Cash and investments with fiscal agents 228,564               ‐ Total assets 765,133                            518,655 Deferred Outflows of Resources
Deferred charge on refunding                           ‐              484,971 Liabilities
Accounts payable 32                         ‐
Accrued interest                           ‐              293,907 Deposits payable 49,193                 ‐
Long‐term liabilities
Bonds and loans payable due in one year                           ‐          1,320,000 Bonds and loans payable due in more than one year                           ‐        23,640,000 Total liabilities 49,225                        25,253,907 Net Position
Restricted for other organizations 715,908               ‐ Restricted for successor agency                           ‐       (24,250,281) Total net position 715,908 $            $   (24,250,281) 1185
See Notes to Financial Statements     47
City of Banning, California
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year ended June 30, 2023
Private‐Purpose
Trust Fund
Successor
Custodial Agency of the
Funds Former RDA
Additions
Taxes 430,754 $            $       2,438,551
Interest and change in fair value of investments 1,757                   ‐ Miscellaneous                           ‐                  1,500 Total additions 432,511                        2,440,051 Deductions
Administrative expenses 54,559                                15,989 Community development                           ‐              268,410 Principal payment 110,000               ‐
Interest expense 88,930                              961,331 Total deductions 253,489                        1,245,730 Change in Net Position 179,022                        1,194,321 Net Position ‐ Beginning of Year 536,886                     (13,993,891) Prior Period Adjustment                           ‐       (11,450,711) Net Position ‐ Beginning of Year, as Restated 536,886                     (25,444,602) Net Position ‐ End of Year 715,908 $            $   (24,250,281) 1186
Notes to Basic Financial Statements
1187
48 City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
Note 1 ‐  Summary of Significant Accounting Policies
a. Description of the Report Entity
The City of Banning (the City) was incorporated in 1913 under the laws of the state of California and enjoys all the rights and privileges applicable to a general law city. It is governed by an elected five‐member board. As required by accounting principles generally accepted in the United States of America (U.S. GAAP), these financial statements present the City of Banning (the primary government) and its component units. The component units discussed below are included in the reporting entity because of their operational or financial relationships with the City of Banning.

Blended Component Units
The Banning Wastewater Facilities Corporation (the Corporation) was organized at the request of the City in 1984 pursuant to the Nonprofit Public Corporation Law of the State of California (Title 1, Division 2, Part 2 of the California Corporations Code). In 1986, an amendment to its articles of incorporation changed the name of the Corporation to the Banning Public Facilities Corporation. It exists for the purposes of participating with the City of Banning in projects to improve the health, safety and welfare of the City and its residents, purchasing and leasing real and personal property in connection with such projects, and assisting the City in financing, acquiring and constructing such projects. It does not issue separate financial statements. The activity is presented as the Banning Utility Authority wastewater fund in these financial statements.

The Banning Utility Authority (Authority) is a joint powers authority which was established on July 12, 2005, pursuant to a Joint Exercise of Powers Agreement between the City of Banning and the former Redevelopment Agency of the City of Banning in accordance with the Joint Powers Law (Article 1 through 4 of Chapter 5, division 7, title 1 of the California Government code) for the purpose of assisting the City in operating the utility system.

See Note 15 for details on the arrangement between the City and the Authority. Separate financial statements can be obtained at City Hall.

The City of Banning Financing Authority (the Authority) was formed by a joint exercise of powers agreement between the City of Banning and the former Banning Redevelopment Agency. It was established November 12, 2003, under Article 1 (commencing with Section 6500) of the Joint Powers Law of the State of California for the purpose of providing an entity to assist in providing financing for the City and the Agency. It does not issue separate financial statements. Its activities are included with the City's activities in these financial statements.

There was no activity within the Authority for the fiscal year ended June 30, 2023.

The City of Banning Housing Authority was established on January 10, 2012 to accept the assets of the former Redevelopment Agency. The Housing Authority is designed to protect local housing funds and programs, provide new revenue opportunities for affordable housing programs, serve the public interest, promote public safety and welfare and ensure decent, safe, sanitary and affordable housing accommodations to persons of low income. The Board consists of members of the City Council, which is substantively the same governing body of the City and management has operational responsibility for the Housing Authority. The housing assets and functions are reported in the Banning Housing Authority, a special revenue fund of the City. It does not issue separate financial statements.
1188
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
49 b. Government‐Wide and Fund Financial Statements
The government‐wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units.

Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business‐type activities, which rely, to a significant extent, on fees and charges for support.

Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.

As a general rule, the effect of interfund activity has been eliminated from the government‐wide financial statements. 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.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Major individual governmental funds are reported as separate columns in the fund financial statements.

The government‐wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.
1189
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
50 The proprietary and fiduciary funds are reported using the economic resources measurement focus and the accrual basis of accounting.

The City reports the following major governmental fund:
 The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The City reports the following major proprietary funds:
 The Banning Utility Authority Water Fund is used to account for the construction, operation, maintenance and consumption of water services within the City’s water service area.  The Electric Utility Fund is used to account for the costs of labor and materials used in the maintenance, construction and consumption of electric services throughout the City.  The Banning Utility Authority Wastewater Fund is used to account for the costs of labor and materials, construction and consumption of wastewater services within the City’s wastewater service area.

Additionally, the City reports the following fund types:
 Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.
 Capital Project Funds are used to account for capital project expenditures throughout the City.  Internal Service Funds are used to account for the financing of goods or services provided by one department or agency for other departments or agencies of the City, or to other governments, on a cost reimbursement basis.
 Nonmajor proprietary funds are used to account for operation and maintenance of airport, transit and refuse services within the City.
 The Custodial Funds are used to report resources held by the City in a purely custodial capacity, which involves only the receipt, temporary investment and remittance of fiduciary resources to individuals, private organizations or other governments. The City’s custodial funds account for assessments levied for debt service on bond issues which are not a debt of the City.  The Private‐purpose Trust Fund accounts for the assets and liabilities of the former redevelopment agency and is allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated.

Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Certain indirect costs are included in the program expense reported for individual functions and activities. 1190
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
51 Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds and of the internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
d. Assets, Deferred Outflows/Inflows of Resources, Liabilities and Net Position or Equity Investments and Cash and Cash Equivalents
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short‐term investments with original maturities of three months or less from the date of acquisition.

Investments for the City, as well as for its component units, are reported at fair value. The State Treasurer's Investment Pool operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.

The provisions of Governmental Accounting Standards Board (GASB) Statement No. 31, Accounting and Financial Reporting for Certain Investments and External Pools, require governmental entities to report certain investments at fair value in the balance sheet and recognize the corresponding change in the fair value of investments in the fiscal year in which the change occurred. All investments have been stated at fair value.

Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business‐type activities are reported in the government‐ wide financial statements as "internal balances."
Advances between funds, as reported in the fund financial statements, are offset by nonspendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and property tax receivables are shown net of an allowance for uncollectibles.

The noncurrent portion of receivables related to revenue is set up as unavailable revenue and recognized as revenue when the receivables become available (collectible within 60 days of year‐end). The noncurrent portion of loans and other receivables are offset by fund balance non spendable accounts. Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Property taxes in the state of California are administered for all local agencies at the county level and consist of secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:
1191
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
52 Property Valuations are established by the Assessor of the County of Riverside for the secured and unsecured property tax rolls; the utility property tax rolls are valued by the State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal.

Tax Levies are limited to 1% of appraised value, which results in a tax rate of $1.00 per $100 assessed valuation, under the provisions of Proposition 13. Tax rates for voter‐ approved indebtedness are excluded from this limitation.

Tax Levy Dates are attached annually on January 1 preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property as they exist at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.

Tax Collections are the responsibility of the county tax collector. Taxes and assessments on secured and utility rolls, which constitute a lien against the property, may be paid in two installments; the first is due on November 1 of the fiscal year and is delinquent if not paid by December 10, and the second is due on January 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the county for late payment.

Tax Levy Apportionments are due to the nature of the citywide maximum levy. It is not possible to identify general purpose tax rates for specific entities. Under state legislation adopted subsequent to the passage of Proposition 13, apportionments to local agencies are made by the county auditor‐controller based primarily on the ratio that each agency represented of the total City‐wide levy for the three years prior to fiscal year 1979.

Property Tax Administration Fees for the state of California fiscal year 1990‐1991 Budget Act authorized counties to collect an administrative fee for collection and distribution of property taxes. Property taxes are recorded net of administrative fees withheld during the fiscal year.

Inventories and Prepaid Items
Inventories of materials and supplies (if material) are carried at cost on a first‐in, first‐out (FIFO) basis. The City uses the consumption method of accounting for inventories. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government‐wide and fund financial statements.

Capital and Right to Use Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business‐type activities columns in the government‐wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years.

Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. 1192
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
53 Right to use leased assets with an initial, individual cost of more than $25,000 ($5,000 in prior years) are recognized at the lease commencement date and represent the City’s right to use an underlying asset for the lease term. Right to use leased assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to place the lease asset into service. Right to use leased assets are amortized over the shorter of the lease term or useful life of the underlying asset using the straight‐line method. The amortization period varies from 3 to 5 years.

Right to use subscription IT assets with an initial, individual cost of more than $25,000 are recognized at the subscription commencement date and represent the City’s right to use the underlying IT asset for the subscription term. Right to use subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at the commencement of the subscription term, less any subscription incentives received from the vendor at or before the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription asset into service. Right to use subscription IT assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight‐line method. The amortization period varies from 3 to 5 years.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects as constructed.

Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight‐line method over the following estimated useful lives:

Building and Structures 20 to 50 Years
Improvements 15 to 25 Years
Machinery and Equipment 3 to 25 years
Vehicles 5 to 10 Years
Infrastructure 40 to 50 Years
Airport Master Plan 10 to 20 Years
Utility Plant 20 to 60 Years
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and governmental balance sheets will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government currently has three items that qualify for reporting in this category.

The first item is the deferred charge on refunding reported in the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. 1193
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
54 The second are deferred outflows relating to the net pension obligation reported in the statement of net position. These outflows are due to the following: contributions made subsequent to the measurement date of the net pension liability, which are deferred and recognized against the respective liabilities in the following year and differences between expected and actual experiences, and the difference between actual contributions made and the proportionate share of the risk pool’s total contributions which is deferred and amortized over the expected average remaining service life.

The third are deferred outflows relating to the OPEB obligation reported in the statement of net position. These outflows are due to the following: contributions made subsequent to the measurement date of the net OPEB liability, which are deferred and recognized against the respective liabilities in the following year and change in assumption which is amortized over the expected average remaining service life.

In addition to liabilities, the statement of net position and governmental balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government currently has three items that qualify for reporting in this category.

The first item, which arises only under a modified accrual basis of accounting, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from sources, such as, taxes, grant revenues, and long‐term receivables.

The second item is the deferred charge on refunding reported in the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

The third item is in relation to the net pension obligation reported in the statement of net position. These inflows are either the net difference between projected and actual earnings on pension plan investments is deferred and will be recognized as a portion of pension expense in future years over a five year amortization period, and the results of differences between expected and actual experiences, difference between actual contributions made and the proportionate share of the risk pool’s total contributions and adjustments due to change in proportions which are deferred and amortized over the expected average remaining service life.

Unearned Revenue
Governmental funds and governmental activities report unearned revenues on the balance sheet in connection with resources that have been received, but not yet earned. Accordingly, this type of unearned revenue is also reported on the Statement of Net Position. At June 30, 2023, unearned revenue primarily consisted of $4,067,478 relating to ARPA and $4,070,052 as refundable franchise retention fees within the refuse utility fund.

With regard to the franchise retention fee, the City entered into an agreement in a prior year with Waste Management and received an upfront payment totaling $4,500,000 that is refundable over a 20‐year term and dependent upon compliance with the terms of the agreement. Revenue is recognized straight‐line through July 2041.
1194
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
55 Compensated Absences
Compensated absences are the amounts due to employees for future absences that are aƩributable to services already rendered. The City has determined that no current liability exists for compensated absences at the fund level; therefore, the liability for governmental acƟviƟes is shown only in the government‐wide statements. For proprietary funds the liability for compensated absences, if any, is segregated between short‐term and long term as indicated above and both porƟons are reflected in the fund involved. VacaƟon pay is payable to employees at the Ɵme a vacaƟon is taken or upon terminaƟon of employment. Sick leave is payable when an employee is unable to work because of illness or upon terminaƟon. Compensatory Ɵme, personal leave, execuƟve leave and holiday pay are payable at the Ɵme leave is taken or upon terminaƟon. The vested porƟon of these compensated absences is accrued in the government‐wide statements and is also accrued in proprietary funds at year‐end.

The following are summaries of the City's compensated leave policies:

Compensatory Time/ Personal Leave/ExecuƟve Leave
Compensatory Ɵme for Police employees up to 240 hours, UƟlity and General employees up to 160 hours, and Nonexempt Managers up to 240 hours.

Exempt Managers receive 98 hours of personal leave per year that may be accrued up to 192 hours.

The City Manager receives 48 hours and Department Directors receive 98 hours of execuƟve leave annually that may be accrued up to 200 hours.

General and UƟlity employees have an Irrevocable Comp Time Leave Cash‐Out. They may cash out up to 80 hours of compensatory Ɵme, or vacaƟon, or any combinaƟon. ElecƟon must be made by 12/31 for the May and November.

Nonexempt and Exempt Management employees may cash out 60 hours of compensatory Ɵme per year. Police employees may elect to cash out 80 hours of personal leave per year. The City Manager and Department Directors may cash out 48 and 98 hours, respecƟvely, of execuƟve leave per year.

All compensatory Ɵme/personal leave/execuƟve leave is payable to employees upon terminaƟon at the rate of pay at terminaƟon.

Sick Leave
Police employees accrue sick leave without limit. Each employee may be eligible to convert up to 40 hours of unused sick leave to vacaƟon each year, and aŌer 10 years of service to the City, each employee, upon voluntary separaƟon or involuntary disability, shall be eligible to be paid 40% of accrued sick leave.

Management employees, UƟlity personnel and General employees will accrue sick leave up to a cap of 400 hours. Upon separaƟon, service reƟrement, disability reƟrement or terminaƟon, aŌer 10 years of service, UƟlity and General personnel may receive a cash payment for 30% of all unused sick leave or contribute the enƟre remaining balance of sick leave to the employee’s 457 Deferred CompensaƟon Account (subject to Internal Revenue Service maximum contribuƟons provided by law) or City’s ReƟree Medical Savings Account. 1195
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
56 Upon separaƟon, service reƟrement, disability reƟrement or terminaƟon, Management employees shall be eligible to receive a cash payment for accrued sick leave in an amount not to exceed 96 hours. AŌer 10 years of conƟnuous City service, all hours accrued, less the total hours cashed out, shall be eligible for conversion to cash in an amount equivalent to 30% of such unused sick leave. Beginning with the 11th year of service, all Management, UƟlity, and General employees, as well as Police employees, have the opƟon to convert their sick leave bank, less 40 hours, to deferred compensaƟon or the City's ReƟree Health Savings Plan.

The City Manager and Department Directors shall accrue sick leave to a maximum of 480 hours and may receive an annual sick leave pay off of up to 96 hours, in excess of 40 hours. Upon separaƟon, the City Manager shall receive payment for all sick hours accrued. Upon separaƟon, service reƟrement, disability reƟrement or terminaƟon, Department Directors shall receive payment for all sick hours accrued.

Police Management employees will accrue sick leave up to a cap of 320 hours. Annually, employees may receive a 96‐hour sick leave pay off or convert hours to deferred compensaƟon but will not be able to cash out sick leave below 40 hours. Upon separaƟon, service reƟrement, disability reƟrement, or terminaƟon, an employee may receive a cash payment for a maximum of 96 hours. Beginning the 10th year of conƟnuous City service, all hours accrued shall be eligible for conversion to cash in an amount equivalent to 30% of such unused sick leave.

Beginning with the 11th year of service, unit members may convert 50% of their sick leave bank, less 40 hours, to deferred compensaƟon or the City's ReƟree Health Savings Plan.

Police employees accrue hours according to schedules set forth in a memorandum of understanding. AŌer one year of employment, each employee is eligible to be paid for accrued vacaƟon. Maximum accrual for vacaƟon is 320 hours and 336 hours for nonsupervisory and supervisory personnel, respecƟvely. Holiday leave accrues at a rate of 3.38 per pay period to a maximum of 160 hours and can be cashed out enƟre bank anyƟme during the fiscal year. At terminaƟon, holiday leave is 100% paid out and aŌer one year of conƟnuous full‐Ɵme service, employees shall be paid for 100% of accrued vacaƟon leave.

VacaƟon and Holiday Leave
VacaƟon leave accrues up to a maximum of 320 hours. Upon terminaƟon, all union personnel with at least six months service will be paid for all accrued hours.

The City Manager and Department Directors accrual for vacaƟon is 480 hours and have a cap of 480 hours. Upon terminaƟon, the City Manager and Department Directors shall be enƟtled to be paid for the enƟre amount of holiday Ɵme accrued. Upon separaƟon, the employee shall be enƟtled to 100% of the unused vacaƟon leave bank.

Police Management will accrue vacaƟon leave up to a cap of 320 hours. Upon separaƟon, the employee shall be enƟtled to 100% of the unused vacaƟon leave. Police Management shall accrue holiday hours up to the cap of 96 hours. Upon separaƟon, the employee shall be enƟtled to 100% of the unused holiday leave bank.

Management employees accrue vacaƟon and holiday leave in accordance with schedules set forth in a memorandum of understanding. VacaƟon accrues to a limit of 320 hours. All accrued vacaƟon and holiday leave shall be paid upon termination up to a maximum of 320 hours for vacation and an unlimited amount of hours for holiday, after six months of service. 1196
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
57 Long‐Term Obligations
In the government‐wide financial statements, and proprietary fund types in the fund financial statements, long‐ term debt and other long‐term obligations are reported as liabilities in the governmental activities, business‐ type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

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

Lease liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the commencement date based on the present value of future lease payments expected to be made during the lease term. The present value of any lease payments are discounted based on a borrowing rate determined by the City.

Subscription liabilities represent the City’s obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments are discounted based on a borrowing rate determined by the City.

Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the pension plans fiduciary net positions and additions to/deductions from the pension plans fiduciary net positions have been determined on the same basis as they are reported by the CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. These amounts are payable from future resources and, therefore, have been recorded in the statement of net position. Annual required contributions are recorded as expenditures in the related funds when due. Pension liabilities are liquidated from the related employees’ home programs, with majority funded out of General Fund and Enterprise Funds. See Note 11 for more information.

Other Post‐Employment Benefit Liability
The City’s defined benefit OPEB plan allows employees at retirement to continue participating in City medical plans with payment of the full premium until age 65. The Plan is a single‐employer defined benefit OPEB plan administered by the City and governed by the City Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The General Fund and Enterprise Funds are generally used to liquidate the OPEB liability. See Note 12 for more information. 1197
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
58 Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government‐wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, and then unrestricted resources as they are needed.

Fund Balance Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.

Unassigned fund balance is applied last.

Fund Balance Policies
In the fund financial statements, government funds report the following fund balance classification:

Nonspendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution.

Emergency Contingency – City Council has determined the specific purposes for which this may be used for are local disasters, recessions or other financial hardships; to subsidize unforeseen operating or capital needs; and cash flow requirements.

Assigned include amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed. The City Manager or Deputy City Manager are authorized to assign amounts to a specific purpose, which was established by the governing body by resolution.

Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes.
1198
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
59 Fund Balance Deficits
The following nonmajor funds contained a deficit fund balance:

Type Amount
Gas Tax Street Governmental 145,385 $
Community Development Block Grant Governmental 49,534
State Park Bond Act Governmental 89
Animal Control Reserve Governmental 86
Transit Fund Proprietary 1,121,806
Self Insurance Proprietary ‐ ISF 5,330,487
Information Services Proprietary ‐ ISF 1,162,591
Utility Billing Services Proprietary ‐ ISF 1,803,511
Successor Agency of the Former RDA Fiduciary 24,250,281 Fund
e. Implementation of GASB Statement No. 96
As of July 1, 2022, the City adopted GASB Statement No. 96, Subscription Based Information Technology (IT) Arrangements (SBITAs). The implementation of this standard establishes that a SBITA results in a right to use subscription IT asset ‐an intangible asset ‐ and a corresponding liability. The standard provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA. The Statement requires recognition of certain SBITA assets and liabilities for SBITAs that previously were recognized as outflows of resources based on the payment provisions of the contract. There was no effect on beginning net position as a result of implementation. The additional disclosures required by this standard are included in Notes 4 and 8. f. Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 1199
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
60 Note 2 ‐  Cash and Investments
As of June 30, 2023, cash and investments were reported in the accompanying financial statements as follows:

Governmental Activities 16,734,063 $
Business‐Type Activities 58,148,727
Fiduciary Funds              831,186
Total cash and investments 75,713,976 $
Petty Cash $               4,058
Deposits with Financial Institutions 9,903,282
Investments 62,630,374
Investment in SCPPA Rate Stabilization Fund 3,176,262
Total cash and investments 75,713,976
The City of Banning maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments.

Deposits
At June 30, 2023, the carrying amount of the City’s deposits was $9,903,282, and the bank balance was $9,942,270. The $38,988 difference represents outstanding checks, deposits and other reconciling items.

The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of a City’s deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking.

The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.
1200
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
61 Investments
Under provision of the City’s investment policy, the City is authorized to invest in investments allowed by Government Code of the State of California. From these permitted investments, the City’s investment officials shall determine those investment types that best meet the needs and abilities of the City. Maximum maturity period for any portion of invested operating moneys shall not exceed five years per California Government Code.

Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements rather than the general provisions of the California Government Code or the City’s investment policy.

Investments in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the state of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares.

Investment in SCPPA Project Stabilization Fund
The City has investments held with the Southern California Public Power Authority, a Joint Powers Authority, in a Project Stabilization Fund for future joint projects. At June 30, 2023, the balance held by SCPPA in the Project Stabilization Fund was $3,176,262.

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual Standard & Poor’s rating as of year‐end for each investment type.

Minimum
Legal
Amount Rating AAA AA+ A+ A‐1 Not Rated
Federal Agency Securities 14,296,800 $      N/A $     ‐ $   ‐ 14,296,800 $       $     ‐ $       ‐ Local Agency Investment Fund 30,977,844     N/A      ‐   ‐    ‐ ‐      30,977,844 Money Market Mutual Funds   30,487
AAA or highest
rating     30,487   ‐    ‐ ‐      ‐
Commercial Paper     588,960 A or higher      ‐   ‐    ‐    588,960   ‐ Corporate   1,933,664 A or higher      ‐   ‐    1,933,664 ‐      ‐ U.S Treasury   2,620,172 N/A      ‐    2,620,172    ‐ ‐      ‐ Held by Fiscal Agents
Money Market Mutual Funds 12,182,447     N/A      ‐   ‐    ‐ ‐      12,182,447 Total investments $     62,630,374 $     30,487 $  16,916,972 $   1,933,664 $      588,960 $  43,160,291 Investment Type
Rating as of year‐end
1201
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
62 Custodial Credit Risk
The 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 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 to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.

As of June 30, 2023, a total of $8,292,792 of deposits with financial institutions in excess of federal depository insurance limits was held in collateralized accounts, but not in the name of the City.

Concentration of Credit Risk
The City is in compliance with restrictions imposed by its investment policy, which limits certain types of investments. In addition, GASB Statement No. 40 requires a separate disclosure if any single issuer comprised more than 5% of the total investment value. The investments issued or explicitly guaranteed by the US government and investments in mutual money market funds and external investment pools are excluded from this requirement. Reportable investments in any one issuer that represent five percent or more of the City’s total investments as of June 30, 2023 are as follows:

Reported
Investment Type Amount
Federal Home Loan Bank Federal Agency Security 11,545,188 $ Issuer
Interest Rate Risk
The City’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2023, the City had the following investments and maturities:

Remaining Investment Maturities
1 Year 1 to 3 3 to 5 More than Fair
or Less Years Years 5 Years Value
Federal Agency Securities $                        ‐ $     11,499,321 $        ‐ 2,797,479 $                         $     14,296,800 Local Agency Investment Fund 30,977,844         ‐                            ‐                            ‐                                   30,977,844 Money Market Mutual Funds 30,487                 ‐                            ‐                            ‐                                           30,487 Commercial Paper 588,960               ‐                            ‐                            ‐                                         588,960 Corporate                           ‐           ‐ 1,933,664                            ‐                                     1,933,664 U.S Treasury 2,129,620                         ‐ 490,552                            ‐                                     2,620,172 Held by Fiscal Agents
Money Market Mutual Funds 12,182,447         ‐                            ‐                            ‐                                   12,182,447 Total investments 45,909,358 $      $     13,923,537 $        ‐ 2,797,479 $                         $     62,630,374 Investment Type
1202
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
63 Fair Value Measurement and Application
The City categorizes its fair value measurements within the fair value hierarchy established by U.S. GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

Deposits and withdrawals in governmental investment pools, such as LAIF, are made on the basis of $1 and not at fair value.

The City has the following recurring fair value measurements as of June 30, 2023:

Totals Uncategorized Level 1 Level 2 Level 3
Federal Agency Securities 14,296,800 $      ‐ $                         ‐ $                         $      ‐ 14,296,800 $ Local Agency Investment Fund 30,977,844                 ‐ 30,977,844                            ‐                            ‐ Money Market Mutual Funds 30,487                 ‐                                            ‐ 30,487                            ‐ Commercial Paper 588,960               ‐                            ‐                                          ‐ 588,960 Corporate 1,933,664           ‐                            ‐                                      ‐ 1,933,664 U.S Treasury 2,620,172           ‐                            ‐                                      ‐ 2,620,172 Held by Fiscal Agent
Money Market Mutual Funds 12,182,447         ‐                                    ‐ 12,182,447                            ‐ Total Investments 62,630,374 $      $     30,977,844 $     12,212,934 $      ‐ 19,439,596 $ Investment Type
Federal Agency Securities classified in Level 2 of the fair value hierarchy are valued using institutional bond quotes.

Note 3 ‐  Interfund Receivables, Payables and Transfers The composition of interfund balances as of June 30, 2023, is as follows:

Due To/From Other Funds
Nonmajor Internal
Governmental Electric Service
Funds Utility Funds Total
Due from Other Funds
General Fund 1,869,623 $        ‐ $                         $       1,589,081 $       3,458,704 Other Governmental Funds 2,271,693                     ‐ 3,793,565                                     6,065,258 Other Enterprise Funds                           ‐          4,901,373              174,557          5,075,930 Internal Service Funds                            ‐ ‐                                         615,506              615,506 $       4,141,316 $       8,694,938 $       2,379,144 $     15,215,398 Due to Other Funds
Funds
The interfund balances were the results of routine interfund transactions not cleared prior to year‐end and short‐term negative cash balances.
1203
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
64 Interfund Transfers
BUA Nonmajor Other
General BUA Water Wastewater Governmental Enterprise
Fund Fund Fund Funds Funds Totals
Transfers In:

General Fund $                        ‐ $           470,000 $           181,000 $           321,650 $               3,584 $           976,234 BUA Electric Fund                            ‐ ‐                            339,589                           ‐              339,589 BUA Water Fund 1,672                   ‐                            ‐                            14,502                           ‐                16,174 BUA Wastewater Fund 1,333                            ‐ ‐                            2,360                           ‐                  3,693 Other Enterprise Funds 112,231                            ‐ ‐                            626                           ‐              112,857 Internal Service Funds 2                            ‐ ‐                            ‐                                                     2 Nonmajor Governmental Funds 166,379               ‐                            ‐                            17,989 986,500                        1,170,868 Totals 281,617 $            $           470,000 $           181,000 $           696,716 $           990,084 $       2,619,417 Funds
Transfers out of the General Fund to BUA Water Fund, BUA Wastewater Fund, Nonmajor Governmental Funds and Nonmajor Enterprise are to pay certain costs incurred for special projects. Transfers out of the BUA Water Fund and BUA Wastewater Fund to General Fund were pursuant to an agreement between the City and Authority. See note 15 for additional details regarding the agreement. Transfers out of Nonmajor Governmental Funds to General fund and Electric Fund were for payment of eligible grant expenditures. 1204
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
65 Note 4 ‐  Changes in Capital Assets
Capital asset activity for the year ended June 30, 2023, is as follows:

Beginning
Balance,
as Restated Transfers/ Ending
(Note 18) Increases Decreases Adjustments Balance
Capital Assets Not Being Depreciated
Land 9,438,620 $        ‐ $                         ‐ $                         ‐ $                         $       9,438,620 Construction in progress 4,470,154                         ‐ 591,509                                    (3,857,221)          1,204,442 Total capital assets not
being depreciated 13,908,774                       ‐ 591,509                                    (3,857,221)        10,643,062 Capital Assets Being Depreciated
Buildings and structures 26,133,515                       ‐ 181,727                            ‐                                   26,315,242 Land improvements 14,511,589         ‐                            ‐                            ‐                                   14,511,589 Machinery and equipment 6,915,474                          34,503            (115,814)              132,308          6,966,471 Vehicles 3,912,712                    1,080,322               (57,426)                75,967          5,011,575 Utility Plant 1,927,413           ‐                            ‐                            ‐                                     1,927,413 Infrastructure 137,383,420                 ‐ 3,598,488                                     3,648,946      144,630,854 Total capital assets being
depreciated 190,784,123                4,895,040            (173,240)          3,857,221      199,363,144 Less Accumulated Depreciation
Buildings and structures 19,661,719                      871,480             ‐ (108,681)                                   20,424,518 Land improvements 7,755,257                         ‐ 622,541                            ‐                                     8,377,798 Machinery and equipment 6,175,465                         ‐ 104,255                            ‐                                     6,279,720 Vehicles 3,547,150                        216,057                ‐ (39,286)                                     3,723,921 Utility Plant 554,992                               ‐ 12,470                            ‐                                         567,462 Infrastructure 85,283,674                   ‐ 4,349,329                            ‐                                   89,633,003 Total accumulated depreciation 122,978,257                6,176,132             ‐ (147,967)                                 129,006,422 Total capital assets, being
depreciated, net 67,805,866                 (1,281,092)               (25,273)          3,857,221        70,356,722 Right to Use Lease Assets Being
Amortized
Buildings and structures                           ‐               ‐ 799,982                            ‐                                         799,982 Machinery and equipment 43,441                 ‐                                           ‐ (14,450)                                           28,991 Vehicles 483,992               ‐                                           ‐ (17,975)                                         466,017 Total Right to Use Lease
Assets being Amortized 527,433                            799,982                ‐ (32,425)                                     1,294,990 Less Accumulated Amortization
for Right to Use Lease Assets 112,258                            263,827                ‐ (25,278)                                         350,807 Right to Use Lease Assets,
being amortized, net 415,175                            536,155                  ‐ (7,147)                                         944,183 Right to Use Subscription IT Assets,
Being Amortized                           ‐               ‐ 106,550                            ‐                                         106,550 Less Accumulated Amortization
for Right to Use Subscription
IT Assets                           ‐                 ‐ 34,472                            ‐                                           34,472 Right to Use Subscription IT,
Assets being amortized,
net                           ‐                 ‐ 72,078                            ‐                                           72,078 Governmental Activities
Capital Assets, Net 82,129,815 $      $           (81,350) $            ‐ (32,420) $                         $     82,016,045 Governmental Activities
1205
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
66 Depreciation and amortization expense was charged to governmental functions as follows:

General Government 499,666 $
Public Safety              944,758
Community Development 315,520
Transportation 4,293,402
Culture and Leisure 385,547
Interal Service Fund 35,538
Total depreciation/amortization Expense ‐
governmental activities 6,474,431 $
1206
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
67 Beginning Transfers/ Ending
Balance Increases Decreases Adjustments Balance
Capital Assets Not Being Depreciated
Land 5,615,491 $        $            ‐ 252,193 $                         ‐ $                         $       5,867,684 Construction in progress 16,166,975                  8,956,972         (1,498,621)         (4,206,045)        19,419,281 Total capital assets not
being depreciated 21,782,466                  9,209,165         (1,498,621)         (4,206,045)        25,286,965 Capital Assets Being Depreciated
Airport master plan 38,875                 ‐                            ‐                            ‐                                           38,875 Buildings and structures 546,084                               ‐ 12,751                                         375,428              934,263 Land improvements 5,100,459           ‐                            ‐                                     4,221,783          9,322,242 Machinery and equipment 4,084,386                    2,465,746            (124,092)          8,740,761        15,166,801 Utility plant 198,410,915                 ‐ 6,752,295                                    (9,103,125)      196,060,085 Total capital assets being
depreciated 208,180,719                9,230,792            (124,092)          4,234,847      221,522,266 Less Accumulated Depreciation
Airport master plan 38,875                 ‐                            ‐                            ‐                                           38,875 Buildings and structures 797,305                               ‐ 10,353                            ‐                                         807,658 Land improvements 6,476,418                         ‐ 366,626                            ‐                                     6,843,044 Machinery and equipment 8,144,756                    1,359,257            (118,982)                28,802          9,413,833 Utility plant 79,903,423                   ‐ 3,064,212                            ‐                                   82,967,635 Total accumulated depreciation 95,360,777                  4,800,448            (118,982)                28,802      100,071,045 Total capital assets being
depreciated, net 112,819,942                4,430,344                 (5,110)          4,206,045      121,451,221 Right to Use Lease Assets Being
Amortized
Machinery and equipment 49,679                 ‐                            ‐                            ‐                                           49,679 Vehicles 555,756               ‐                            ‐                            ‐                                         555,756 Total Right to Use Lease 605,435               ‐                            ‐                            ‐                                         605,435 Assets being Amortized
Less Accumulated Amortization
for Right to Use Lease Assets 116,147                             ‐ 122,573                            ‐                                         238,720 Right to Use Lease Assets,
being amortized, net 489,288                           ‐ (122,573)                            ‐                                         366,715 Right to Use Subscription IT Assets,
Being Amortized                           ‐               ‐ 107,158                            ‐                                         107,158 Less Accumulated Amortization
for Right to Use Subscription
IT Assets                           ‐                   ‐ 6,123                            ‐                                             6,123 Right to Use Subscription IT,
Assets being amortized,
net                           ‐               ‐ 101,035                            ‐                                         101,035 Business‐Type Activities
Capital Assets, Net 135,091,696 $    $     13,617,971 $       ‐ (1,503,731) $                         $   147,205,936 Business‐Type Activities
1207
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
68 Depreciation and amortization expense was charged to business‐type functions as follows:

Banning Utility Authority Water $       1,672,805
Electric Utility    2,243,150
Banning Utility Authority Wastewater    727,353
Airport    196,005
Transit    82,411
Refuse Utility    7,420
Total depreciation/amortization Expense ‐
business‐type activities $       4,929,144
Note 5 ‐  Accounts Receivable
Accounts receivables are shown net of applicable allowances for doubtful accounts. The accounts receivable and respective allowances are as follows:

Allowance
Gross for Doubtful Net
Receivable Accounts Receivable
General Fund 2,291,827 $        $         (201,714) $       2,090,113 Nonmajor Governmental 304 ‐         304
Internal Service Funds 161,811 ‐              161,811
Water 2,787,793 (530,204)                      2,257,589 Electric 7,453,021 (1,014,549)                   6,438,472 Wastewater 1,151,522 (194,643)                          956,879 Nonmajor Proprietary 128,062                 (8,396)              119,666 Total $     13,974,340 $      (1,949,506) $     12,024,834 1208
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
69 Note 6 ‐  Loans Receivable
The City has entered into various loan agreements relating to owner’s participation agreements, developer loans, the first‐time home buyer loan program, the rehabilitation loan program, and various other loans receivable. The owner’s participation agreement was entered into March 2011 for $500,000, has a term of 55 years, matures March 2066, and is forgivable. The assistance loans consist of first‐time homebuyer loans for 30 years that range in maturity from 2038 to 2039 and are forgivable. The following summarizes the loans outstanding at June 30, 2023:

Balance at
June 30, 2023
Owner's Participation Loan 500,000 $
Assistance Loans 220,000
Rehabilitation Loans 19,937
Employee Loans 36,088
Total loans available 776,025 $
Note 7 ‐  Deposits with Other Agencies
On August 14, 2001, the City of Banning adopted Resolution 2001‐85, approving the Utility Services Agreement between the City of Banning and the City of Riverside. Under this agreement, the City of Riverside shall provide scheduling, dispatching and other related electric utility services to the City. The implementation of this agreement required the payment of a refundable deposit by the City of Banning to the City of Riverside. This amount is shown as restricted cash and investments in the Electric Utility fund totaling $1,151,478 as of June 30, 2023.
1209
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
70 Note 8 ‐  Long‐Term Debt
The following is a summary of the changes in long‐term debt for the fiscal year ended June 30, 2023:

Beginning Ending Due Within
Balance Incurred Retired Balance One Year
Governmental Activities
Direct Borrowing
Lease Liability $           389,729 $       1,123,513 $           150,316 $       1,362,926 $            646,181 SBITA Liability                           ‐              106,550                28,720                77,830                  36,549 Total 389,729 $            $       1,230,063 $           179,036 $       1,440,756 $            682,730 Business‐Type Activities
Direct Borrowing
Lease Liability $            ‐ 457,987 $                         $           155,092 $           302,895 $            168,128 Financed Purchase                           ‐              577,049              195,950              381,099                  94,312 Bonds Payable
2015 Electric Refunding Bond 23,615,000         ‐                                     1,335,000        22,280,000            1,400,000 2015 Water Revenue Bond 19,425,000         ‐                                     1,130,000        18,295,000            1,185,000 2019 Wastewater Refunding Bond 3,580,000           ‐                                         225,000          3,355,000               230,000 Premium 3,984,316           ‐                                         278,155           ‐ 3,706,161 Total 51,062,303 $      $           577,049 $       3,319,197 $     48,320,155 $         3,077,440 Governmental Activities
Lease Liability
The City has entered into various lease agreements for the use of vehicles and equipment. As of June 30, 2023, the value of the lease liabilities were $1,362,926. The City is required to make principal and interest payments through July 2029 with annual payments ranging from $1,422 to $296,926. The lease liability was valued using discount rates between 1.35% and 4.25% which were the City’s incremental borrowing rate at the inception of the lease liabilities. The total right to use lease assets, and the related accumulated amortization on the right to use lease assets was $1,294,990 and $350,807, as of June 30, 2023, respectively.

The annual requirements to amortize the lease liabilities as of June 30, 2023, including interest, are as follows:

Principal Interest Totals
$           646,181 $               4,459 $           650,640 188,252                  2,731              190,983
138,927                  1,512              140,439
103,496                      962              104,458
95,047                      625                95,672
2029‐2033 191,023                                    318              191,341 Total 1,362,926 $        $             10,607 $       1,373,533 2028
Year Ending June 30,
2024
2025
2026
2027
1210
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
71 SBITA Liability
The City has entered into two IT agreements for use of IT software, platforms, and infrastructure. As of June 30, 2023, the value of the IT liabilities were $77,830. The City is required to make principal and interest payments through August 2025 with annual payments ranging from $41,138 to $62,146. The IT liability was valued using discount rates between 5.27% and 6.69% which were the City’s incremental borrowing rate at the inception of the IT liabilities. The total right to use IT assets, and the related accumulated amortization on the right to use IT assets was $106,550 and $34,472, as of June 30, 2023, respectively.

The annual requirements to amortize the SBITA liabilities as of June 30, 2023, including interest, are as follows:

Principal Interest Totals
$             36,549 $               4,589 $             41,138 41,281                  2,325                43,606
Total $             77,830 $               6,914 $             84,744 2024
2025
Year Ending June 30,
Business‐Type Activities
Lease Liability
The City has entered into various lease agreements for the use of vehicles and equipment. As of June 30, 2023, the value of the lease liabilities were $302,895. The City is required to make principal and interest payments through February 2026 with annual payments ranging from $1,987 to $10,097. The lease liability was valued using discount rate 1.35% which was the City’s incremental borrowing rate at the inception of the lease liabilities. The total right to use lease assets, and the related accumulated amortization on the right to use lease assets was $605,437 and $238,720, as of June 30, 2023, respectively.

The annual requirements to amortize the lease liabilities as of June 30, 2023, including interest, are as follows:

Principal Interest Totals
$           168,128 $               2,614 $           170,742 94,427                  1,048                95,475
40,340                      145                40,485
Total 302,895 $            $               3,807 $           306,702 Year Ending June 30,
2024
2025
2026
1211
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
72 Financed Purchase
On September 28, 2022, the Banning Utility Authority entered into a financed purchase agreement to purchase a vactor truck for wastewater operations. The financed purchase bears an interest rate of 4.50%. Interest is payable annually on September 28. The annual requirements to amortize the outstanding financed purchase as of June 30, 2023, including interest, are as follows:

Principal Interest Totals
$             94,312 $                   962 $             95,274 94,619                      656                95,275
94,940                      335                95,275
‐ 97,228                                           97,228 Total $           381,099 $               1,953 $           383,052 2026
2027
Year Ending June 30,
2024
2025
2015 Water Enterprise Revenue Bonds, Refunding and Improvement Projects On August 19, 2015, the Banning Utility Authority issued $25,365,000 in Water Enterprise Revenue Bonds, Refunding and Improvement Projects. The proceeds of the bonds, together with other money being made available by the Authority, will be used to (i) finance certain capital improvements to the Water Enterprise; (ii) refund a portion of the Authority’s $35,635,000 Water Enterprise Revenue Bonds, Refunding and Improvement Projects, 2005 Series, currently outstanding in the aggregate principal amount of $29,165,000; and (iii) pay costs of issuance of the Bonds. As a result, the refunding bonds defeased the liability of the 2005 Water Revenue Bonds, which have been removed from long‐term debt. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2023, including interest, are as follows:

Principal Interest Totals
$       1,185,000 $           773,688 $       1,958,688 1,240,000              713,063          1,953,063
1,305,000              649,438          1,954,438
1,370,000              582,563          1,952,563
1,440,000              526,713          1,966,713
2029 to 2033 8,065,000                    1,706,106          9,771,106 2034 to 2035 3,690,000                        139,500          3,829,500 Total 18,295,000 $      $       5,091,071 $     23,386,071 2028
Year Ending June 30,
2024
2025
2026
2027
Pledged Revenue
The City pledged, as security for bonds issued, the net water revenues to the payment of the bonds. This is calculated by deducting gross water revenues in each fiscal year from the amounts required for operation and maintenance of the water enterprise. For the current year, revenue recognized for the payment of indebtedness incurred was $6,673,663. Principal and interest paid for the current year were $1,961,563.

The bonds include a provision, that in any event of default, the trustee has the right to accelerate the total unpaid principal amount of the Bonds. However, in the event of default and such acceleration, there can be no assurance that the Trustee will have sufficient moneys available for payment of the bonds. 1212
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
73 2015 Electric Revenue Refunding Bonds
On August 19, 2015, the Banning Financing Authority issued $31,755,000 in Refunding Revenue Bonds (Electric System Project). The proceeds of the bond, together with other money being made available by the Authority, will be used to (i) refund the Authority’s $45,790,000 Revenue Bonds (Electric System Project) Series 2007, currently outstanding in the amount of $34,270,000; (ii) finance certain improvements (the Facilities) to the electric system of the City of Banning; (iii) pay the insurance premium for the Bonds; (iv) purchase a reserve surety bond for the Bonds; and (v) pay costs of issuance of the Bonds. As a result, the refunding bonds defeased the liability of the 2007 Electric Revenue Bonds, which have been removed from long‐term debt. The 2015 Electric Enterprise Revenue Bonds bear interest at rates ranging from 3.00% to 5.00%. Interest is payable semi‐ annually on June 1 and December 1.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2023, including interest, are as follows:

Principal Interest Totals
$       1,400,000 $       1,023,044 $       2,423,044
1,470,000              953,044          2,423,044
1,545,000              879,544          2,424,544
1,620,000              802,294          2,422,294
1,705,000              721,294          2,426,294
2029 to 2033 8,515,000                    2,661,238        11,176,238 2034 to 2037 6,025,000                        771,750          6,796,750 Total $     22,280,000 $       7,812,208 $     30,092,208 2027
2028
Year Ending June 30,
2024
2025
2026
Pledged Revenue
The City pledged, as security for bonds issued, the net electric revenues to the payment of the bonds. This is calculated by deducting gross electric revenues in each fiscal year the amounts required for operation and maintenance of the electric enterprise. For the current year, revenue recognized for the payment of indebtedness incurred was $3,569,731. Principal and interest paid for the current year were $2,424,794.

The bonds include a provision, that in any event of default, the trustee has the right to accelerate the total unpaid principal amount of the Bonds. However, in the event of default and such acceleration, there can be no assurance that the Trustee will have sufficient moneys available for payment of the bonds.

1213
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
74 2019 Wastewater Enterprise Refunding Revenue Bonds
On October 8, 2019, the Banning Utility Authority issued the 2019 Wastewater Enterprise Refunding Revenue Bonds. The proceeds of the bond, together with other money being made available by the Authority, will be used to (i) refund the Authority’s 2005 $7,100,000 Wastewater Revenue Bonds, currently outstanding in the amount of $4,585,000; (ii) finance certain improvements (the Facilities) to the Wastewater System of the City of Banning; (iii) and to refinance certain obligations of the Authority. The 2019 Wastewater Enterprise Refunding Revenue Bonds bear interest of 1.80%. Interest is payable semi‐annually on May 1 and November 1, commencing May 1, 2020. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2023, including interest, are as follows:

Principal Interest Totals
$           230,000 $             58,320 $           288,320 235,000                54,135              289,135
240,000                49,860              289,860
245,000                45,495              290,495
250,000                41,040              291,040
2029 to 2033 1,315,000                        135,585          1,450,585 2034 to 2036 840,000                              22,860              862,860 Total $       3,355,000 $           407,295 $       3,762,295 2026
2027
2028
Year Ending June 30,
2024
2025
Pledged Revenue
The City pledged, as security for bonds issued, all surplus revenues from the fund. For the current year, revenue recognized for the payment of indebtedness incurred was $2,252,212. Principal and interest paid for the current year were $287,415.

The bonds include a provision, that in any event of default, the trustee has the right to accelerate the total unpaid principal amount of the Bonds. However, in the event of default and such acceleration, there can be no assurance that the Trustee will have sufficient moneys available for payment of the bonds.

Note 9 ‐  Compensated Absences
As described in Note 1, under certain circumstances and accordingly to the negotiated labor agreements, City employees are allowed to accumulate annual leave. The annual leave amount is accrued and accounted for as compensated absences in the government‐wide and proprietary fund statements. As shown in the table below, for governmental activities, accumulated vacation, sick leave benefits, holiday and compensatory time payable at June 30, 2023, was $1,608,129 which includes $193,385 recorded in the internal service funds. These amounts are payable from future resources and, therefore, have been recorded in the statement of net position. Vacation, sick leave, holiday and compensatory time are recorded as expenditures in the related funds when used. For enterprise funds, accumulated vacation, sick leave, holiday and compensatory time amounted to $1,038,163.
1214
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
75 Amounts Amounts Due
Balance Due Within In More Than
July 01, 2022 Additions Deletions June 30, 2023 One Year One Year Governmental Activities 1,454,829 $        $       1,048,219 $           894,919 $       1,608,129 $           989,219 $           618,910 Business‐Type Activities 891,542 $            $           851,365 $           704,744 $       1,038,163 $           105,970 $           932,193 Note 10 ‐  Assessment District and Community Facilities District Bonds Bonds issued for improvements in certain special assessment districts in accordance with the provisions of the Municipal Improvement Acts of 1911, 1913 and 1915, as well as the Mello‐Roos Community Facilities District Act, are liabilities of the property owners and are secured by liens against the assessed properties. The City acts as an agent for collection of principal and interest payments by the property owners and remittance of such monies to the bondholders. Neither the faith and credit, nor the taxing power, of the City of Banning or the Agency has been pledged to the payment of the bonds. Therefore, none of the following special assessment bonds are shown in the financial statements of the City.

Amount Outstanding
of Issue June 30, 2023
AD 2004‐1 2,898,000 $        $       1,690,000

Note 11 ‐  City Employees Retirement Plan (Defined Benefit Pension Plan) The City participates in the California Public Employees’ Retirement System (CalPERS) with both a miscellaneous and safety plan. A summary of pension amounts for the City’s plans at June 30, 2023, is presented below:

CalPERS CalPERS
Miscellaneous Safety Total
Deferred outflows 8,531,816 $        $       8,119,167 $     16,650,983 Deferred inflows 462,430                        4,046,059          4,508,489 Net pension liability 30,         079,956        19,613,637        49,693,593 Plan Description – City Miscellaneous Plan
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, 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 that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. 1215
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
76 Plan Description – City Safety Plan
The City of Banning Safety Plan is a cost‐sharing multiple‐employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). All qualified safety employees are eligible to participate in the City’s Safety (Police and Fire) Plan. Benefit provisions under the Safety Plan are established by State statue and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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 nonduty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 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 provisions and benefits in effect at June 30, 2023, are summarized as follows:

Hire Date Prior to January 1, 2013* On/after January 1, 2013 Benefit Formula 2.5% at Age 55 2.2% at Age 62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age Age 50 Age 52
Monthly Benefits, as a Percentage
of Eligible Compensation 2.00% to 2.50% 1.00% to 2.50%
Required Employee Contribution Rates 7.460% 7.000%
Required Employer Contribution Rates
Normal Cost Rate 9.42% 7.19%
Payment of Unfunded Liability $       2,291,664 $          ‐ *Closed to new entrants not previously in CalPERS
Miscellaneous Plan
Hire Date Prior to January 1, 2013 Prior to January 1, 2013 On/after January 1, 2013 Benefit Formula 3% at Age 55 2% at Age 50 2.7% at Age 57 Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age Age 50 Age 50 Age 57
Monthly Benefits, as a Percentage
of Eligible Compensation 3.000% 3.000% 3.000%
Required Employee Contribution Rates 8.990% 8.942% 7.000% Required Employer Contribution Rates
Normal Cost Rate 25.64% 19.87% 13.66%
Payment of Unfunded Liability $       1,355,941 $        3,477 $         11,212 *Closed to new entrants not previously in CalPERS
Safety Cost‐Sharing Plan
1216
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
77 Contribution
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30, 2023, by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the period ended June 30, 2023, City contributions were $3,513,971 for the miscellaneous plan and $2,150,975 for the safety plan.

Net Pension Liability
The net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position.

The net pension liability of each of the Plans is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

For the measurement period ended June 30, 2022, the total pension liability was determined by rolling forward the June 30, 2021 total pension liability. The June 30, 2021 and the June 30, 2022 total pension liabilities were based on the following actuarial methods and assumptions for both the miscellaneous and safety plans:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry‐Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increase Varies by Entry Age and Service Mortality Rate Table (1) Derived from CalPERS' Membership Data for all Funds Post Retirement Benefit Increase Contract COLA up to 2.30% until Purchasing Power Protection Protection Allowance Floor on Purchasing Power applies
(1) The mortality table used was developed based on CalPERS‐specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.

Change in Assumption
For both the miscellaneous and safety plans, for the measurement period ended June 30, 2022, the discount rate was reduced from 7.15 percent to 6.90 percent, the inflation rate was reduced from 2.50 percent to 2.30 percent, and the investment rate of return was reduced from 7.15 percent to 6.90 percent. 1217
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
78 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 best‐estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long‐term expected rate of return, CalPERS took into account both short‐term and long‐term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building‐block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points.

The expected real rates of return by asset class are as followed:

Assumed Asset
Asset Class (1) Allocation Real Return (1)(2)
Global Equity ‐ Cap‐Weighted 30.00 % 4.54 %
Global Equity ‐ Non‐Cap‐Weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage‐Backed Securites 5.00 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage (5.00)                                         (0.59) Total 100.0 %
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021‐22 Asset Liability Management study.

Discount Rate
For both the miscellaneous and safety plans, the discount rate used to measure the total pension liability was

6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.

Therefore, the long‐term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 1218
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
79 Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period.

Net Pension
Total Pension Plan Fiduciary Liability
Liability Net Position (Assets)
Miscellaneous Rate Plan (a) (b) (c)=(a)‐(b)
Balance at June 30, 2022 (Reporting Date) 86,195,352 $      $     67,244,557 $     18,950,795 Changes Recognized for the Measurement
Period
Service Cost 1,899,321           ‐                                     1,899,321 Interest on the Total Pension Liability 6,           ‐ 006,137                                     6,006,137 Changes of Assumptions 2,731,582           ‐                                     2,731,582 Difference between Expected and
Actual Experience (693,645)             ‐                                       (693,645) Plan to Plan Resource Movement                            ‐ ‐                            ‐ Contributions from the Employer                           ‐          3,114,207         (3,114,207) Contributions from Employees                           ‐              827,315            (827,315) Net Investment Income                           ‐         (5,085,399)          5,085,399 Benefit Payments including Refunds of                            ‐ ‐                            ‐ Employee Contributions (4,274,948)                   ‐ (4,274,948) Administrative Expense                           ‐               (41,889)                41,889 Other Miscellaneous Income/(Expense)                            ‐ ‐                            ‐ Net Changes During 2022‐23 5,668,447                   (5,460,714)        11,129,161 Balance at June 30, 2023 (Reporting Date) (1) 91,863,799 $      $     61,783,843 $     30,079,956 (1) The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary self‐insurance and pension expense. This may differ from the plan assets reported in the funding actuarial valuation report.
(2) net of administrative expenses.

As of June 30, 2023, the City reported a $19,613,637 net pension liability for its proportionate share of the pooled net pension liability for the Safety Cost‐Sharing Plan.

For the Safety Cost‐Sharing Plan, the City’s net pension liability is measured as the proportionate share of the net pension liability. The net pension liability is measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. The City’s proportion of the net pension liability was based on CalPERS’ Public Agency Cost‐Sharing Allocation Methodology Report, which can be obtained on the CalPERS website.
1219
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
80 The City’s proportionate share of the net pension liability as of June 30, 2022 and 2023 was as follows:

Proportion ‐ June 30, 2022 0.32972%
Proportion ‐ June 30, 2023 0.28543%
Change‐ Increase (Decrease) ‐0.04429%
Safety Plan
Sensitivity of the Net Pension Liability to Changes in the Discount Rates The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage‐point lower (5.90%) or 1 percentage‐point higher (7.90%) than the current rate:

Current
1% Decrease Discount Rate 1% Increase
(5.90%) (6.90%) (7.90%)
Miscellaneous Plan's Net
Pension Liability 42,019,745 $      $     30,079,956 $     20,189,456 Safety Plan's Net
Pension Liability 28,336,702 $      $     19,613,637 $     12,484,503 Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report.

Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of $3,660,775 for Miscellaneous Plan and $153,610 for Safety Plan, for a total of $3,814,385. As of June 30, 2023, the following were the reported deferred outflows of resources and deferred inflows of resources related to the pension plans:

Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Contributions subsequent to the measurement
date 3,513,971 $    ‐ $ $   2,150,975 $ ‐
Change of Assumptions      1,821,055 ‐      1,977,648 ‐ Difference between Expected and Actual
Experience          113,730          462,430          811,737          212,989 Net Difference Between Projected and Actual
Earnings on Pension Plan Investments      3,083,060 ‐      3,097,267 ‐ Differences between Employer's Contributions
and Proportionate Share of Contributions      3,725,768 Change in Employer's Proportion ‐ ‐            81,540          107,302 Total $   8,531,816 $      462,430 $   8,119,167 $   4,046,059 Miscellaneous Safety
1220
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
81 The Miscellaneous Plan reported $3,114,207 and the Safety Plan reported $2,150,975 as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2024. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous Safety
Plan Plan
$       1,280,735 $         (215,770)
1,118,278                70,920
214,964              177,612
1,941,438          1,889,371
‐ ‐
Thereafter                            ‐ ‐
Total 4,555,415 $        $       1,922,133
Measurement Period Ending June 30,
2028
2024
2025
2026
2027
PARS
Plan Description
Effective July 2005, the City began participating in a Public Agency Retirement System (PARS) program, which is a defined contribution retirement plan for part‐time, seasonal and temporary employees. A defined contribution retirement plan provides retirement benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual’s account are to be determined instead of specifying the amount of benefits the individual is to receive.

As established by the plan, all eligible employees of the City will become participants in the plan from the date they are hired. An eligible employee is any employee who, at any time during which the employer maintains this plan, is not accruing benefits under the Public Employees Retirement System.

Funding Plan
Contributions made to the plan vest immediately. As determined by the plan, all members must contribute 7.5% of their gross earnings to the plan. The City is not required to contribute.

Annual Contributions
The amount of employee contributions was $13,921 (7.5% of covered payroll). Total payroll for employees covered under this plan for the year was $185,614.
1221
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
82 Note 12 ‐  Other Postemployment Benefit Plan
Plan Description
The City provides other postemployment benefits (OPEB) through a single‐employer defined benefit healthcare plan. The plan, which is administered by the City, allows employees at retirement to continue participating in City medical plans with payment of the full premium until age 65. Premiums are the same for actives and retirees, resulting in an implicit subsidy to retirees. Employees who waive coverage at retirement are not eligible to reenroll. The authority to do so is included annually in the memorandum of understanding between the City and each of its employee groups and ultimately passed by City council action. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB statement 75. The plan does not issue a separate report.

Employees Covered
As of the June 30, 2022, measurement date, the following current and former employees were covered by the benefit terms under the plan:

Inactive Employees or Beneficiaries Currently
Receiving Benefits 5
Active Employees 156
Total 161
Total OPEB Liability
The City’s OPEB liability of $1,114,778 was measured as of June 30, 2022, and was determined by an actuarial valuation as of June 30, 2022.

Actuarial Assumptions and Other Inputs
The total OPEB liability as of measurement period June 30, 2022, was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:

Valuation Date June 30, 2022
Measurement Date June 30, 2021
Actuarial Cost Method Entry‐Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 3.54%
Inflation 2.50%
Projected Salary Increase 2.75% per annum, in aggregate Healthcare Cost Trend Rates 8.5% decreasing to 3.45% by 2076 Pre‐retirement Turnover Derived from CalPERS pension plan Mortality Derived from CalPERS pension plan updated
to reflect most recent experience study
1222
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
83 Discount Rate
There are no assets accumulated in a trust, therefore, the discount rate is the average of three rate indices: S&P General Obligation Municipal Bond 20‐Year High Grade Index, the Fidelity Municipal Bond AA 20‐Year Maturity Yield and the Bond Buyer General Obligation 20‐Bond Municipal Bond index. The use of this index results in a discount rate of 3.54% at measurement date June 30, 2022.

Change in Assumption
Discount rate was changed from 2.16% to 3.54%.

Changes in Total OPEB Liability
The change in total OPEB liability is as follows:

Total
OPEB
Liability
Balance at June 30, 2021
(Measurement Date) 1,068,323 $
Changes in the Year:

Service Cost 173,445
Interest on the Total OPEB Liability 26,493
Changes in Assumptions (123,025)
Benefit Payments (30,458)
Net Changes 46,455
Balance at June 30, 2022
(Measurement Date) 1,114,778 $
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, calculated using the discount rate for the Plan, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
1% Decrease Discount Rate 1% Increase
(2.54%) (3.54%) (4.54%)
Total OPEB Liability 1, $        202,985 $       1,114,778 $       1,031,992 1223
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
84 The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower than the current healthcare cost trend rates:

Healthcare
Cost
Trent Rates
1% Decrease Current 1% Increase
Total OPEB Liability $           985,718 $       1,114,778 $       1,267,541 OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of $187,546. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB Contributions Subsequent to Measurement Date 33,685 $              ‐ $ Change in Assumptions 2,998              110,239
Total $             36,683 $           110,239
An amount of $33,685 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ending June 30, 2024.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Amount
2024 (12,392) $
2025 (12,392)
2026 (12,392)
2027 (12,392)
2028 (12,392)
Thereafter (45,281)
Total $         (107,241)
Year Ending June 30,
1224
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
85 Note 13 ‐  Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are solely the property and rights of the employee. Participants' rights under the plan are equal to an amount equal to the fair market of the deferred account for each participant. The City has no liability for losses under the plan.

Note 14 ‐  Insurance Programs
The City maintains self‐insurance programs for workers' compensation, general liability and wrongful employment practices. For general liability claims, the City is at risk for up to $50,000 per occurrence; amounts in excess of $50,000 up to $50,000,000 are covered through the Public Entity Risk Management Authority (PERMA) and excess insurance. For workers' compensation claims, the City is at risk for up to $250,000 per occurrence. Losses exceeding $250,000 up to statutory limits are covered by the PERMA under their risk‐ sharing pool program and excess insurance. For wrongful employment practices claims, the City is at risk for up to $25,000 per occurrence; amounts in excess of $25,000 up to $1,000,000 are covered through the Employment Risk Management Authority. Estimates for all liabilities, including an estimate for incurred but not reported claims (IBNR's), have been included in the Self‐Insurance Internal Service Fund.

PERMA also provides a nonrisk sharing "deductible" or claims‐servicing pool for general liability claims within the self‐insured retention (SIR) level ($50,000). Annual contributions are deposited with the Authority from which claims are paid on behalf of the City. Any claims paid by PERMA for the City in excess of deposits at year‐end are recorded as "Due to Other Agencies" within the Self‐Insurance Internal Service Fund.

In addition, the City makes deposits with PERMA for workers' compensation claims below the $250,000 SIR from which claims are paid on behalf of the City.

Claims expenditures and liabilities are reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. At June 30, 2023, the amount of these liabilities was $2,445,682. The amount represents an estimate of $1,644,650 for reported claims through June 30, 2023, and $801,032 of estimate incurred but not reported claims. This liability is the City's best estimate based on available information. There are no significant reductions in insurance coverages from prior years and there have been no settlements exceeding the insurance coverages for each of the past four fiscal years.
1225
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
86 Changes in the reported liability since June 30, 2023, resulted from the following:

Current Year
Liability at Claims in Liability
Beginning of Changes in Claim at End of
Fiscal Year Estimates Payments Fiscal Year
$       2,039,415 $       1,396,464 $           879,653 $       2,556,226 2,556,226 444,102 554,646                        2,445,682 Year
2022
2023
The City of Banning is a member of the Public Entity Risk Management Authority (a joint powers authority of 22 California cities, one Transit Agency and one other special district) which was established to pool resources, share risks, purchase excess insurance and share costs for professional risk management and claims administration. The City continues to carry commercial insurance for all other risks of loss.

Note 15 ‐  Commitments and Contingencies
a. Grant Compliance Audits
The City participates in certain federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any liability for reimbursement that may arise as the result of these audits is not believed to be material. b. Pending Litigation
The City is involved in several pending lawsuits of a nature common to many similar jurisdictions. City management estimates that potential claims against the City, not covered by insurance, will not have a material adverse effect on the financial statements of the City. c. Proposition 218
Was approved by the voters in November 1996, regulates the City's ability to impose, increase and extend taxes, assessments and fees. Any new, increased or extended taxes, assessments and fees subject to the provisions of Proposition 218 requires voter approval before they can be implemented. Proposition 218 is also a protest vote and requires more than 50% of customers for applicable service to vote against the proposed increase to fail.

Additionally, Proposition 218 provides that these taxes, assessments and fees are subject to the voter initiative process and may be rescinded in the future by the voters. Therefore, the City's ability to finance the services for which the taxes, assessments and fees were imposed may be significantly impaired.

At this time, it is uncertain how Proposition 218 will affect the City's ability to maintain or increase the revenue it receives from taxes, assessments and fees.
1226
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
87 d. Banning Utility Authority Lease Commitment
The City created the Authority on July 1, 2005. The Authority leases from the City all of its utility enterprise assets. The Authority has also entered into a management agreement with the City for the operation and maintenance of the utility enterprises. The lease expires on June 30, 2060, after which time, all of the utility enterprise assets and activities revert to the City. The lease does not qualify as a lease under GASB Statement No. 87, Leases. The Authority’s right to the utility enterprise funds does not meet the description of an exchange or exchange‐like transaction because each party does not receive or give up essentially equal value or not quite equal value. In addition, the governing boards of the City and Authority are the same and can modify the terms of the lease at will. No fixed payment amounts from the Authority to the City were identified and payments are only to be made after maintenance and operations costs of the Authority, as well an any outstanding debt service. The amount will then be determined between the City and the Authority. During the fiscal year, the Authority made lease payments of $651,000 to the City, which are reported within the Transfers Out line item in the Statements of Revenues, Expenses, and Changes in Fund Net Position. e. Construction Contracts
The following material construction commitments existed at June 30, 2023:

Expenditures to
Contract Date as of Remaining
PO# Amount June 30, 2023 Commitments
31763 Materials Inventory for Various Projects 2,517,600 $        $           921,624 $       1,595,976 32037 Advisor Services for the Preliminary Engineering 1,576,430          268,470     1,307,960 31764 Materials Inventory for Various Projects       3,125,000   2,201,296    923,704 31985 Design of Well M12A Driling and Equipping      866,128   206,231    659,897 31759 Materials Inventory for Various Projects      675,000   138,762    536,238 31245 Wastewater Treatment Plant Maintenance 2,525,358.00 1,510,596        1,014,762 and Operations       ‐
29243 Design ‐ Well C8 884,683.00 375,252       509,431 30653 Project No. 2020‐01 EL, Ivy and Stagecoach Substation       6,618,664   6,148,907    469,757 31284 Ivy and Stagecoach Substations       3,629,129   3,466,471    162,658 31000 Materials Inventory for Various Projects      580,378   492,027      88,351 30891 Project No. 2016‐11 “Ramsey Street and Hathaway       4,067,319   4,004,590      62,729 Street Improvements”
30148 Electric Substation Equipment Maintenance       1,474,982   1,432,635      42,347 30998 Materials Inventory for Various Projects      731,688   692,585      39,103 30848 Purchase of One Metal‐Clad Switchgear Building      731,688   692,585      39,103 30996 Materials Inventory for Various Projects      801,334   765,106      36,228 31215 AMI Meter project (Water)      516,675   490,419      26,256 31277 Two Transit Bus Replacements       1,812,446   1,794,035      18,411 30792 Maintenance and Operations Agreement with Suez      785,490   770,547      14,943 Water Environmental Services, Inc.
30404 Pardee Development Project      443,752   430,306      13,446 31497 Street Rehab at various locations      848,796   843,644   5,152 30391 Pardee Development Project      398,382   398,368    14 Total $     35,610,922 $     28,044,456 $       7,566,466 Project Name
1227
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
88 Note 16 ‐  Southern California Public Power Authority “Take or Pay” Contracts
The City, through its Electric Utility Fund, has entered into a "take or pay" contract and “take and pay” contract through its participation in the Southern California Public Power Authority (SCPPA) in order to meet the electric needs of its customers. These contracts are not considered a joint venture since the City has no interest in the assets, liabilities, or equity associated with any of the projects to which these contracts refer. Under the “take or pay” contract, the City is obligated to pay its share of the indebtedness regardless of the ability of the contracting agency to provide electricity or the City’s need for the electricity. The City is only obligated to pay its share of the indebtedness upon delivery of energy under the “take and pay” contracts. A long‐term obligation has not been recorded in the accompanying basic financial statements as these commitments do not represent an obligation of the Electric Utility until the year the power is available to be delivered to the Electric Utility.

During the fiscal year ended June 30, 2023, the Electric Utility Fund made payments totaling $9,971,987 on these contracts. SCPPA membership consists of eleven Southern California cities and one public irrigation district of the state of California, which serves the electric power needs of its Southern California electricity customers.

SCPPA, a public entity organized under the laws of the state of California, was formed by a joint powers agreement dated November 1, 1980, pursuant to the Joint Exercise of Powers Act of the state of California.

SCPPA was created for the purpose of planning, financing, developing, acquiring, constructing, operating and maintaining projects for the generation and transmission of electric energy for sale to its participants. The joint powers agreement has a term expiring in 2030 or such later date as all bonds and notes of SCPPA and the interest thereon have been paid in full or adequate provisions for payments have been made. A copy of SCPPA’s audited financial statements can be reviewed on their website at www.scppa.org or can be obtained by written request at 225 South Lake Avenue, Suite 1250, Pasadena, California 91101.

For the year ended June 30, 2023, the City of Banning’s interests in various SCPPA projects are described as follows:
a. Palo Verde Project
Pursuant to an assignment agreement dated August 14, 1981 with the Salt River Project, SCPPA purchased a

5.910% interest in the Palo Verde Nuclear Generating Station, a 3,810 MW nuclear‐fueled generating station near Phoenix, Arizona and a 6.550% share of the right to use certain portions of the Arizona nuclear power project valley transmission system (collectively, the PV). Units 1, 2, and 3 of PV began commercial operations in January 1986, September 1986 and January 1988, respectively. The City’s ownership share of this project is

1.0%.
b. Mead‐Phoenix Project
SCPPA entered into an agreement dated December 17, 1991, to acquire an interest in the MP, a transmission line extending between the West Wing substation in Arizona and the Marketplace substation in Nevada. The agreement provides SCPPA with an 18.308% interest in the West Wing‐Mead project, a 17.756% interest in the Mead substation project component and a 22.408% interest in the Mead‐Marketplace component. The project is a 256 mile, 500 kV AC transmission line with a rating of 1,300 MW. The City’s ownership share of MP is 1.0%. 1228
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
89 c. Mead‐Adelanto Project
SCPPA also entered into an agreement dated December 17, 1991, to acquire a 67.917% interest in the MA, a transmission line extending between the Adelanto substation in Southern California and the Marketplace substation in Nevada. Funding for these projects was provided by a transfer from the Multiple Projects Fund, and commercial operations commenced in April 1996. LADWP serves as the operations manager of MA. The project is a 202 mile, 500 kV AC transmission line with a rating of 1,200 MW. The City’s ownership share of MA is

1.35%.

Power Purchase Agreements
The City entered into power sales agreements with SCPPA for the following projects:

Astoria 2 Solar Project – In July 2014, the City entered into a 20‐year power sales agreement for the Astoria 2 Solar Project for purchase of up to 8 megawatts of the project electric energy. The project began commercial operation in December 2016.

Puente Hills Landfill Gas‐to‐Energy Project – In June 2014, the City entered into a 13‐ year power sales agreement for the Puente Hills Landfill Gas‐to‐Energy Project for purchase of up to 7 megawatts of the electric generation from a landfill gas to energy facility. The project began commercial operation in January 2017.

COSO Geothermal Energy Project – In January 2021, the City entered into a 20‐year power sales agreement for the COSO Geothermal Energy Project for purchase of up to 8 megawatts of the project electric energy. The program began commercial operation in January 2022.

Note 17 ‐  Successor Agency Trust for Assets of Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (the Bill) that provides for the dissolution of all redevelopment agencies in the state of California. This action impacted the reporting entity of the City of Banning that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 24, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012‐

01. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the state of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
1229
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
90 In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the state of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the state of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.
a. Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the following:

Cash and Investments Pooled with the City 71,660 $
Total $             71,660
b. Loans Receivable
The former redevelopment agency had entered into an owner’s participation agreement totaling $250,155 in September 2006 for 55 years, matures September 2061, and is forgivable.

During the fiscal year ending June 30, 2023, no loans were forgiven. In a year in which forgiveness occurs, forgiven loans are reported as forgiven loan expense on the statement of changes in fiduciary net position. 1230
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
91 c. Capital Assets
A prior period adjustment was recorded to reflect the transfer of all capital assets to governmental activities during the year ended June 30, 2023. See note 18 for details regarding the prior period adjustment. d. Long‐Term Debt
A description of long‐term debt outstanding of the Successor Agency as of June 30, 2023, follows:

Balance Balance Due Within
June 30, 2022 Additions Repayments June 30, 2023 One Year Fiduciary Funds
2016 Tax Allocation Refunding Bonds 26,250,000 $    ‐ $                       $     1,290,000 $   24,960,000 $     1,320,000 Total fiduciary funds 26,250,000       ‐                                  1,290,000      24,960,000         1,320,000 e. 2016 Tax Allocation Refunding Bonds
On September 22, 2016, the Successor Agency of the Dissolved Redevelopment Agency of the City of Banning issued Tax Allocation Refunding Bonds, Series 2016 (Taxable) in the amount of $32,255,000, in order to (i) refund the Taxable Allocation Bonds, Series 2003 and 2007; (ii) purchase a surety bond for the Reserve Fund for the 2016 Bonds; (iii) purchase a municipal bond insurance policy for the 2016 Bonds as described below; and (iv) pay costs of issuance of the 2016 Bonds.

Principal on the 2016 Bonds is due annually on September 1 of each year, commencing September 1, 2018, and interest on the 2016 Bonds is due semiannually on March 1 and September 1 of each year, commencing March 1, 2017. Interest rates vary from 1.240% to 3.935%.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2023, including interest, are as follows:

Principal Interest Total
$       1,320,000 $           865,057 $       2,185,057 1,355,000              830,472          2,185,472
1,390,000              793,057          2,183,057
1,430,000              752,792          2,182,792
1,470,000              706,259          2,176,259
2029 to 2033 8,170,000                    2,702,631        10,872,631 2034 to 2038 9,825,000                        996,440        10,821,440 Total 24,960,000 $      $       8,543,426 $     32,606,708 Year Ending June 30,
2028
2024
2025
2026
2027
1231
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
92 f. Pledged Revenue
The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set‐aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $32,606,708 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $886,720 and the debt service obligation on the bonds was $1,290,000.
g. Insurance
The Successor Agency is covered under the City of Banning’s insurance policies. Therefore, the limitation and self‐insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self‐insured retentions can be found in Note 14. h. Commitments and Contingencies
At June 30, 2023, the Successor Agency was involved as a defendant in several lawsuits arising out of the ordinary conduct of its affairs. It is the opinion of management that settlements of these lawsuits, including losses for claims that are incurred but not reported, if any, will not have a material effect on the financial position of the Successor Agency.

Note 18 ‐  Correction of Errors
A restatement was recorded to the governmental activities, business‐type activities, and electric utility fund beginning net position, as well as general fund balance to remove an advance between the funds that should have been reflected as a transfer. The restatement increased governmental activities net position, decreased business‐type activities and Electric Utility Fund beginning net position, and increased general fund balance by $394,118. The restatement increased prior year change in net position for governmental activities, decreased change in net position for business‐type activities and the electric utility fund, and increased net change in fund balance for the general fund by $394,118.

A restatement was recorded to the governmental activities beginning net position and general fund balance to remove an invalid receivable that had been recognized as revenue in prior years totaling $708,520. An additional restatement was recorded to recognize a refundable developer deposit that had been recognized as revenue in prior years totaling $41,141. The restatement reduced governmental activities beginning net position and general fund balance by $749,661. The restatement reduced prior year change in net position for governmental activities and reduced prior year net change in fund balance for the general fund by $749,661. 1232
City of Banning, California
Notes to the Basic Financial Statements
June 30, 2023
93 A restatement was recorded to governmental activities beginning net position and general fund balance to increase unearned revenue that had been recognized as revenue in prior years. The restatement reduced governmental activities beginning net position and general fund balance by $304,304. The restatement reduced prior year change in net position for governmental activities and reduced prior year net change in fund balance for the general fund by $304,304.

A restatement was recorded to business‐type activities and refuse utility beginning net position to increase unearned revenue that had been recognized as revenue in prior years. The restatement reduced prior year change in net position by $4,275,000.

A restatement was recorded to the governmental activities and private‐purpose trust fund successor agency beginning net position to reduce land held for resale under the successor agency and present them as land under governmental activities. The restatement increased governmental activities net position and decreased private‐purpose trust fund successor agency beginning net position by $4,675,556. The restatement increased prior year change in net position for governmental activities and decreased prior year change in net position for the private‐purpose trust fund successor agency by $4,675,556. The assets were transferred by approved Council action in Resolutions 2011‐09 and 2021‐99.

A restatement was recorded to the governmental activities and private‐purpose trust fund successor agency beginning net position to transfer capital assets erroneously recognized as successor agency fund capital assets in prior years. The restatement increased governmental activities net position and decreased private‐purpose trust fund successor agency beginning net position by $6,775,155. The restatement increased prior year change in net position for governmental activities and decreased prior year change in net position for the private‐ purpose trust fund successor agency by $6,775,155.

A restatement was recorded to the beginning net position of the business‐type activities in the amount of $853,513, the Banning Utility Authority water fund in the amount of ($19,183), electric utility fund in the amount of $681,456, Banning Utility Authority wastewater fund in the amount of $132,275, and refuse utility fund in the amount of $58,965 to record receivable balances incurred but not recorded in the prior year. The restatement reduced the prior year change in fund balance by $19,183 for the Banning Utility Authority water fund and increased the prior year change in net position by $681,456 for the electric utility fund, by $132,275 for the Banning Utility Authority wastewater fund and by $58,965 for the refuse utility fund.

Banning Utility Other
Governmental Business‐Type General Banning Utility Electric Authority Enterprise Private‐Purpose Activities Activities Fund Authority Water Utility Wastewater Funds Trust Fund Net Position/Fund Balance at July 1, 2022, as 69,013,432 $    $  145,878,021 $     9,820,214 $   59,030,405 $   51,708,181 $   31,003,409 $     7,320,880 $   (13,993,891) previously reported
Removal of advance 394,118          (394,118)     394,118 ‐          (394,118) ‐      ‐   ‐ Unearned revenue    (304,304) ‐       (304,304) ‐     ‐    ‐      ‐   ‐ Revenue recognition    (749,661) ‐       (749,661) ‐     ‐    ‐      ‐      ‐ Unearned revenue   ‐    (4,275,000) ‐   ‐     ‐    ‐        (4,275,000) ‐ Correction of land/land held for resale 4,675,556      ‐    ‐   ‐     ‐    ‐      ‐       (4,675,556) Capital asset transfer     6,775,155 ‐    ‐   ‐     ‐    ‐      ‐       (6,775,155) Accounts receivable   ‐      853,513 ‐       (19,183)    681,456    132,275    58,965 ‐ Net Position/Fund Balance, as restated 79,804,296 $    $  142,062,416 $     9,160,367 $   59,011,222 $   51,995,519 $   31,135,684 $     3,104,845 $   (25,444,602) 1233
Required Supplementary Information
June 30, 2023
City of Banning, California
1234
See Note to Required Supplementary Information 94
City of Banning, California
Schedule of Changes in the Net Pension Liability and Related Ratios (Miscellaneous Rate Plan) Last Ten Years As of June 30, 2023
2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Pension Liability
Service cost $ 1,309,205 $ 1,237,963 $ 1,068,763 $ 1,380,599 $ 1,475,045 $ 1,525,937 $ 1,598,026 $ 1,716,925 $ 1,899,321 Interest on the total pension liability 4,417,332 4,647,945 4,783,405 4,880,944 5,086,725 5,383,175 5,587,964 5,835,395 6,006,137 Differences between expected and
actual experience ‐ (48,685) (1,098,175) (1,096,153) 733,536 1,456,383 (29,569) 398,058 (693,645) Changes of assumptions ‐ (1,116,894) ‐    3,969,912 (653,917) ‐      ‐    ‐    2,731,582 Benefit Payments, including refunds of
employee contributions (2,569,019) (2,762,291) (3,102,523) (3,187,613) (3,833,044) (3,961,830) (4,140,982) (4,224,859) (4,274,948) Net Change in Total Pension Liability 3,157,518 1,958,038 1,651,470 5,947,689 2,808,345 4,403,665 3,015,439 3,725,519 5,668,447 Total Pension Liability ‐ Beginning 59,527,669 62,685,187 64,643,225 66,294,695 72,242,384 75,050,729 79,454,394 82,469,833 86,195,352 Total Pension Liability ‐ Ending (a) $ 62,685,187 $ 64,643,225 $ 66,294,695 $ 72,242,384 $ 75,050,729 $ 79,454,394 $ 82,469,833 $ 86,195,352 $ 91,863,799 Plan Fiduciary Net Position
Contributions ‐ employer $ 1,511,733 $ 1,479,527 $ 1,579,886 $ 2,059,833 $ 2,011,248 $ 2,350,584 $ 2,667,289 $ 2,971,273 $ 3,114,207 Contributions ‐ employee 608,478 566,122 445,598 674,451 670,531 721,618 734,736 803,793 827,315 Net investment income ‐ 1,020,136 221,312 4,904,903 4,077,253 3,354,860 2,657,597 12,554,124 (5,085,399) Benefit Payments, including refunds of
employee contributions 6,586,288 (2,762,291) (3,102,523) (3,187,613) (3,833,044) (3,961,830) (4,140,982) (4,224,859) (4,274,948) Administrative expenses (2,569,019) (50,336) (27,249) (64,709) (75,132) (36,340) (75,213) (55,137) (41,889) Other Miscellaneous Income/(Expense) ‐ 9,303 ‐      ‐     (142,796) 119 ‐    ‐     ‐ Net Change in Plan Fiduciary Net Position 6,137,480 262,461 (882,976) 4,386,865 2,708,060 2,429,011 1,843,427 12,049,194 (5,460,714) Plan Fiduciary Net Position ‐ Beginning 38,311,035 44,448,515 44,710,976 43,828,000 48,214,865 50,922,925 53,351,936 55,195,363 67,244,557 Plan Fiduciary Net Position ‐ Ending (b) $ 44,448,515 $ 44,710,976 $ 43,828,000 $ 48,214,865 $ 50,922,925 $ 53,351,936 $ 55,195,363 $ 67,244,557 $ 61,783,843 Net Pension Liability ‐ Ending (a)‐(b) $ 18,236,672 $ 19,932,249 $ 22,466,695 $ 24,027,519 $ 24,127,804 $ 26,102,458 $ 27,274,470 $ 18,950,795 $ 30,079,956 Plan Fiduciary Net Position as A Percentage
Of The Total Pension Liability 70.91% 69.17% 66.11% 66.74% 67.85% 67.15% 66.93% 78.01% 78.19% Covered Payroll 7,427,270 $ $ 6,992,494 $ 7,149,518 $ 5,903,926 $ 8,719,354 $ 9,781,645 $ 8,912,142 $ 9,790,189 $ 10,501,315 Plan Net Pension Liability (Asset) as Percentage
of Covered Payroll 245.54% 285.05% 314.24% 406.98% 276.72% 266.85% 306.04% 193.57% 286.44% * This schedule is present to illustrate the requirement to show information for 10 years. However, until a full 10‐year trend is compiled, information for those years for which information is available is shown.

Notes:Benefit Changes ‐ There were no changes to benefit terms. However, the figures above do not include any liability impact that may have resulted from plan changes which occurred after the measurement dates. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes of Assumption
In 2023, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions November 2021. In 2023, the discount rate reduced from 7.15% to 6.90%. In 2019, there were no changes. 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 discount rate in 2018. In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5% discount rate. 1235
See Note to Required Supplementary Information 95
City of Banning, California
Schedule of Proportionate Share of the Net Pension Liability (Safety Rate Plan) Last Ten Years As of June 30, 2023
2015 2016 2017 2018 2019 2020 2021 2022 2023
Proportion of the Net Pension Liability 0.23259% 0.01734% 0.16650% 0.16191% 0.16713% 0.26886% 0.26745% 0.32972% 0.28543% Proportionate Share of the Net Pension Liability 10, $ 599,884 $ 11,900,560 $ 14,407,636 $ 16,057,212 $ 15,962,108 $ 16,783,668 $ 17,818,398 $ 11,571,452 $ 19,613,637 Covered Payroll 2,399,596 $ $ 2,184,008 $ 2,205,720 $ 1,581,595 $ 2,439,376 $ 2,608,731 $ 3,538,340 $ 3,141,440 $ 3,871,832 Proportionate Share of the Net Pension Liability
as a Percentage of Covered Payroll 441.74% 544.90% 653.19% 1015.25% 654.35% 643.37% 503.58% 368.35% 506.57% Plan Fiduciary Net Position 33,631,871 $ $ 32,989,395 $ 32,521,518 $ 35,284,479 $ 37,103,510 $ 38,589,307 $ 39,295,336 $ 47,960,112 $ 47,858,980 Plan Fiduciary Net Position as a Percentageof the Total Pension Liability 79.82% 78.40% 72.69% 71.74% 73.39% 73.37% 68.80% 80.56% 75.53%* This schedule is present to illustrate the requirement to show information for 10 years. However, until a full 10‐year trend is compiled, information for those years for which information is available is shown.

Notes:Benefit Changes ‐ There were no changes to benefit terms. However, the figures above do not include any liability impact that may have resulted from plan changes which occurred after the measurement dates. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes of Assumptions ‐ In 2023, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions November 2021.

In 2023, the discount rate reduced from 7.15% to 6.90%. In 2019, there were no changes. 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 discount rate in 2018. In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense).

In 2014, amounts reported were based on the 7.5% discount rate. 1236
See Note to Required Supplementary Information 96
City of Banning, California
Schedule of Plan Contributions (Miscellaneous Rate Plan) Last Ten Years As of June 30, 2023
2015 2016 2017 2018 2019 2020 2021 2022 2023
Actuarially Determined Contribution 1,349,103 $ $ 1,483,525 $ 1,829,173 $ 1,862,651 $ 2,153,041 $ 2,491,669 $ 2,810,447 $ 3,066,042 $ 3,513,971 Contribution in Relation to the Actuarially
Determined Contribution (1,349,103) (1,483,525) (1,829,173) (1,862,651) (2,153,041) (2,491,669) (2,810,447) (3,066,042) (3,513,971) Contribution Deficiency (Excess) ‐ ‐      ‐       ‐    ‐     ‐       ‐   ‐     ‐ Covered Payroll $ 6,992,494 $ 7,149,518 $ 5,903,926 $ 8,719,354 $ 9,781,645 $ 8,912,142 $ 9,790,189 $ 10,501,315 $ 12,321,259 Contributions as a Percentage of Covered Payroll 19.29% 20.75% 30.98% 21.36% 22.01% 27.96% 28.71% 29.20% 28.52% * This schedule is present to illustrate the requirement to show information for 10 years. However, until a full 10‐year trend is compiled, information for those years for which information is available is shown.

Notes:Valuation Date: June 30, 2021
Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal Cost MethodAmortization Method Level Percentage of Payroll, Closed Asset Valuation Method Direct Rate Smoothing
Inflation 2.30%Payroll Growth 2.75%Projected Salary Increases Varies by Entry Age and ServiceInvestment Rate of Return 7.00%, Net of Administrative Expenses Retirement Age The probabilities of reitrement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.

Mortality The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using 90% of Society of Actuaries' Scale 2016. For more details on this table, please refer to the 2017 experience study report.
1237
See Note to Required Supplementary Information 97
City of Banning, California
Schedule of Plan Contributions (Safety Rate Plan)
Last Ten Years As of June 30, 2023
2015 2016 2017 2018 2019 2020 2021 2022 2023
Actuarially Determined Contribution 1,034,818 $ $ 1,329,187 $ 1,481,661 $ 1,599,794 $ 1,830,085 $ 2,163,458 $ 2,353,753 $ 2,345,157 $ 2,150,975 Contribution in Relation to the Actuarially
Determined Contribution (1,034,818) (1,329,187) (1,481,661) (1,599,794) (1,830,085) (2,163,458) (2,353,753) (2,345,157) (2,150,975) Contribution Deficiency (Excess) $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ Covered Payroll $ 2,184,008 $ 2,205,720 $ 1,581,595 $ 2,439,376 $ 2,608,731 $ 3,538,340 $ 3,141,440 $ 3,871,832 $ 4,310,875 Contributions as a Percentage of Covered Payroll 47.38% 60.26% 93.68% 65.58% 70.15% 61.14% 74.93% 60.57% 49.90% * This schedule is present to illustrate the requirement to show information for 10 years. However, until a full 10‐year trend is compiled, information for those years for which information is available is shown.

Notes:Valuation Date: June 30, 2021
Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Level Percentage of Payroll, Closed Asset Valuation Method Direct Rate Smoothing
Inflation 2.30%Payroll Growth 2.75%Projected Salary Increases Varies by Entry Age and ServiceInvestment Rate of Return 7.00%, Net of Administrative Expenses Retirement Age The probabilities of reitrement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.

Mortality The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using 90% of Society of Actuaries' Scale 2016. For more details on this table, please refer to the 2017 experience study report.
1238
See Note to Required Supplementary Information 98
City of Banning, California
Schedule of Changes in Total OPEB Liability and Related Ratios Last Ten Years As of June 30, 2023
2022 2023
Total OPEB Liability
Service Cost $           167,505 $           173,445
Interest                23,337   26,493
Difference in Expected and Actual Experiences ‐ ‐
Changes of Assumptions                  3,786            (123,025) Benefit Payments, Including Refunds of
Employee Contributions               (29,571)               (30,458) Net Change in Total OPEB Liability              165,057   46,455 Total OPEB Liability ‐ Beginning              903,266          1,068,323 Total OPEB Liability ‐ Ending (a)          1,068,323          1,114,778 Covered Payroll $     17,724,658 $     22,481,573
Plan Net OPEB Liability (Asset) as a
Percentage of Covered Payroll 6.03% 4.96%
* This schedule is present to illustrate the requirement to show information for 10 years. However, until a full 10‐year trend is compiled, information for those years for which information is available is shown.

No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB statement 75 Notes:

Benefit Changes ‐ There were no changes to benefit terms. 1239
See Note to Required Supplementary Information 99
City of Banning, California
Budgetary Comparison Schedule ‐
General Fund
Last Ten Years As of June 30, 2023
Variance With
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐ Beginning of Year,
as restated $                        ‐ $       3,799,826 $       9,160,367 $       5,360,541 Resources (Inflows)
Taxes
Sales and use 5,872,144                    6,173,883          4,875,534         (1,298,349) Property 6,720,426                    6,957,457          6,939,283               (18,174) Franchise 674,155                            654,378              543,207            (111,171) Transient occupancy 1,240,681                    1,342,200          1,179,126            (163,074) Other 860,871                            857,871              737,412            (120,459) Subtotal 15,368,277                15,985,789        14,274,562         (1,711,227) Licenses and Permits
Building permits 565,000                            820,000          1,186,624              366,624 Other permits 1,210,895                        706,667              682,270               (24,397) Subtotal 1,775,895                    1,526,667          1,868,894              342,227 Intergovernmental
State mother vehicle in‐lieu fees 15,016                                35,016                31,650                 (3,366) Other intergovernmental revenues 453,896                        1,077,882              994,481               (83,401) Subtotal 468,912                        1,112,898          1,026,131               (86,767) Charges for Services
Engineering, police, fire, and other fees 2,578,454                    2,226,260          1,404,928            (821,332) Recreation fees 222,300                            185,800              161,765               (24,035) Interfund charges 2,580,093                    2,840,915          3,176,397              335,482 Subtotal 5,380,847                    5,252,975          4,743,090            (509,885) Use of Money and Property
Interest and rents 69,349                                47,349              188,719              141,370 Subtotal 69,349                                47,349              188,719              141,370 Fines and Forfeitures
Parking fines 38,385                                38,385                  8,441               (29,944) Court fines and other fines 176,004                            175,004              179,224                  4,220 Subtotal 214,389                            213,389              187,665               (25,724) Contributions 5,000                                    5,000                      638                 (4,362) Contributing from successor agency 250,000                            250,000               ‐ 250,000 Miscellaneous 2,239,824                    2,612,103              823,244         (1,788,859) Subscriptions                            ‐ ‐                                         106,550              106,550 Leases                            ‐ ‐                                         361,506              361,506 Transfers in 651,000                            921,384              976,234                54,850 Subtotal 3,145,824                    3,788,487          2,518,172         (1,270,315) Total Resources (Inflows) 26,423,493                27,927,554        24,807,233         (3,120,321) Amounts Available for Appropriations 26,423,493                31,727,380        33,967,600          2,240,220 Budget Amounts
1240
100
City of Banning, California
Budgetary Comparison Schedule ‐
General Fund (Continued)
Last Ten Years As of June 30, 2023
Variance With
Final Budget
Actual Positive
Original Final Amounts (Negative)
Changes to Appropriations (Outflow)
General Government
City council 123,122 $            $           195,957 $           171,922 $             24,035 Public Information                            ‐ ‐                                         911,420            (911,420) Grant program management                            ‐ ‐                                                 463                    (463) City manager 553,515                            687,201              422,471              264,730 Personnel 469,387                            535,626              411,872              123,754 City clerk 136,823                            166,580              163,572                  3,008 Elections 44,500                                44,500                60,412               (15,912) City attorney 294,727                            329,812               ‐ 329,812 Finance 1,473,837                    1,598,189          1,546,548                51,641 Economic development 463,612                            344,914              378,012               (33,098) Community enhancement 305,035                            389,829              404,424               (14,595) Central services 542,842                            953,398              825,419              127,979 Building maintenance 666,928                            769,267              388,803              380,464 Subtotal 5,074,328                    6,015,273          6,015,150                      123 Public Safety
Police 9,722,430                  10,612,816        11,004,816            (392,000) Animal control 286,381                            308,056              255,761                52,295 Fire 3,550,223                    3,604,423          3,568,164                36,259 Dispatch 1,082,798                        982,865          1,136,919            (154,054) Subtotal 14,641,832                15,508,160        15,965,660            (457,500) Community Development
TV government access 141,399                            165,051              159,967                  5,084 Building safety 914,298                        1,712,842          1,128,624              584,218 Code enforcement 412,792                            365,329              390,355               (25,026) Planning 1,104,313                    1,589,265          1,031,521              557,744 Engineering 1,173,485                    2,496,233          2,068,484              427,749 Community enhancement 102,900                            102,900                97,762                  5,138 Subtotal 3,849,187                    6,431,620          4,876,713          1,554,907 Culture and Leisure
Parks 826,582                            796,711              769,538                27,173 Recreation 816,844                        1,084,878              774,075              310,803 Aquatics 248,338                            241,463              250,274                 (8,811) Daycare 55,486                                58,486                  5,346                53,140 Senior center 125,603                            139,609              118,847                20,762 Subtotal 2,072,853                    2,321,147          1,918,080              403,067 Capital Outlay 1,480,592                    2,076,378              737,152          1,339,226 Subtotal 1,480,592                    2,076,378              737,152          1,339,226 Debt Service
Principal retirement                                  ‐ ‐                                               179,036            (179,036) Interest and fiscal charges                                  ‐ ‐                                                 38,140               (38,140) Subtotal                            ‐ ‐                                         217,176            (217,176) Transfers Out 225,825                            225,825              281,617               (55,792) Subtotal 225,825                            225,825              281,617               (55,792) Total Charges to Appropriations 27,344,617                32,578,403        30,011,548          2,784,031 Budgetary Fund Balance ‐ End of Year (921,124) $          $         (851,023) $       3,956,052 $         (543,811) Budget Amounts
1241
101
City of Banning, California
Note to Required Supplementary Information
June 30, 2023
Note 1 ‐  Stewardship, Compliance and Accountability
Budgets and Budgetary Accounting
The City Council has the responsibility for adoption of the City's budgets. Budgets are adopted for governmental funds. From the effective date of the budget, the amounts stated as proposed expenditures become appropriations to the various City departments.

The City Council may amend the budget by resolution during each fiscal year. The City Manager is authorized to transfer funds from one major expenditure category to another within the same department and fund. Any revisions that alter the total expenditures of any fund must be approved by the City Council.

All appropriations lapse at the end of the fiscal year to the extent that they have not been expended. Lease contracts entered into by the City are subject to annual review by the City Council.

Budgetary comparison is provided in the accompanying financial statements for the General Fund. Budgeted revenue and expenditure amounts shown represent the City's originally adopted legal budget adjusted for unanticipated revenues and appropriations during the course of the fiscal year. Budget amounts, as adjusted, reported for the governmental funds of the City are adopted on a basis consistent with U.S. GAAP.

Excess Expenditures Over Appropriations
Actual Budget Excess
Gas Tax Street $       2,072,467 $       2,063,149 $              (9,318) Supplemental Law Enforcement              429,183              100,000            (329,183) Park Development              762,895              322,814            (440,081) BEA Capital Project              197,926              195,057    (2,869) Fund
1242
102
City of Banning, California
Combining Balance Sheet –
Non‐Major Governmental Funds
June 30, 2023
Community
Gas Tax Development
Street Measure A Block Grant
Assets
Pooled cash and investments $                        ‐ $            ‐ 775,577 $ Receivables
Accounts, net 100                       ‐                            ‐ Loans                            ‐ ‐                            ‐ Interest                           ‐                   ‐ 3,620 Grants 25,260                                  5,055                      608 Due from other governments 70,539                               ‐ 160,703 Due from other funds                           ‐               ‐ 540,217 Restricted assets
Cash and investments with fiscal agents                            ‐ ‐                            ‐ Total assets 95,899                          1,485,172                      608 Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities
Accounts payable 68,915                              147,379                      917 Accrued liabilities 10,931                 ‐                            ‐ Unearned revenue                            ‐ ‐                            ‐ Deposits payable 95,961                 ‐                            ‐ Due to other funds 40,217                 ‐                                           48,617 Total liabilities 216,024                            147,379                49,534 Deferred Inflows of Resources
Unavailable revenues 25,260                                  5,055                      608 Total deferred inflows of resources 25,260                                  5,055                      608 Fund Balances
Restricted for
Community development projects                            ‐ ‐                            ‐ Public safety                            ‐ ‐                            ‐ Culture and leisure                            ‐ ‐                            ‐ Transportation                           ‐           ‐ 1,332,738 Capital projects                            ‐ ‐                            ‐ Assigned
Capital projects                            ‐ ‐                            ‐ Unassigned (145,385)             ‐                                          (49,534) Total fund balances (145,385)                      1,332,738               (49,534) Total liabilities, deferred inflows of
resources, and fund balances 95,899 $              $       1,485,172 $                   608 Special Revenue Funds
1243
103
City of Banning, California
Combining Balance Sheet –
Non‐Major Governmental Funds (Continued)
June 30, 2023
Assets
Pooled cash and investments
Receivables
Accounts, net
Loans
Interest
Grants
Due from other governments
Due from other funds
Restricted assets
Cash and investments with fiscal agents
Total assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenues
Total deferred inflows of resources
Fund Balances
Restricted for
Community development projects
Public safety
Culture and leisure
Transportation
Capital projects
Assigned
Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Landscape AQMD
Maintenance Air Pollution Asset
District Program Forfeiture
$             34,729 $           375,694 $               1,865 ‐ 28                            ‐
‐ ‐                            ‐
245                  1,532                          6
‐ ‐                            ‐
1,572                 ‐ 10,298
48,617                 ‐ 85,080
‐ ‐                            ‐
85,191              472,604                  1,871
7,921               ‐ 188,303
‐ 413                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
8,334               ‐ 188,303
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                                             1,871
‐ ‐                            ‐
76,857               ‐ 284,301
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
76,857              284,301                  1,871
$             85,191 $           472,604 $               1,871 Special Revenue Funds
1244
104
City of Banning, California
Combining Balance Sheet –
Non‐Major Governmental Funds (Continued)
June 30, 2023
Assets
Pooled cash and investments
Receivables
Accounts, net
Loans
Interest
Grants
Due from other governments
Due from other funds
Restricted assets
Cash and investments with fiscal agents
Total assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenues
Total deferred inflows of resources
Fund Balances
Restricted for
Community development projects
Public safety
Culture and leisure
Transportation
Capital projects
Assigned
Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Supplemental Senior
Law Special Center
Enforcement Donations Activities
$               12,001 $               14,503 $               53,136 ‐ ‐                ‐
‐ ‐                ‐
1,329 ‐                              178
‐ ‐                ‐
‐ ‐                ‐
‐    29,547 ‐
‐ ‐                ‐
13,330    44,050         53,314
‐ ‐                                18
‐ ‐                ‐
219 ‐                ‐
‐       7,525 ‐
‐ ‐                ‐
219       7,525                 18
‐ ‐                ‐
‐ ‐
‐ ‐                ‐
13,111 ‐                ‐
‐    36,525         53,296
‐ ‐                ‐
‐ ‐                ‐
‐ ‐                ‐
‐ ‐                ‐
13,111    36,525         53,296
$               13,330 $               44,050 $               53,314 Special Revenue Funds
1245
105
City of Banning, California
Combining Balance Sheet –
Non‐Major Governmental Funds (Continued)
June 30, 2023
Assets
Pooled cash and investments
Receivables
Accounts, net
Loans
Interest
Grants
Due from other governments
Due from other funds
Restricted assets
Cash and investments with fiscal agents
Total assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenues
Total deferred inflows of resources
Fund Balances
Restricted for
Community development projects
Public safety
Culture and leisure
Transportation
Capital projects
Assigned
Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Wilson Banning
Police Median Housing
Volunteer Improvement Authority
$                 5,162 $             399,708 $                 7,734 ‐ ‐                               ‐
‐ ‐                                              739,937 17                     1,350                     4,865
‐ ‐                                              223,432 ‐ ‐                               ‐
‐ 86                                           1,474,212 ‐ ‐                               ‐
5,265                401,058             2,450,180
‐ ‐                                                26,943 ‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                                                26,943 ‐ ‐                                              739,937 ‐ ‐                                              739,937 ‐ ‐                                           1,683,300 ‐ 5,265                               ‐
‐ ‐                               ‐
‐                 ‐ 401,058
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
5,265                401,058             1,683,300
$                 5,265 $             401,058 $         2,450,180 Special Revenue Funds
1246
106
City of Banning, California
Combining Balance Sheet –
Non‐Major Governmental Funds (Continued)
June 30, 2023
Assets
Pooled cash and investments
Receivables
Accounts, net
Loans
Interest
Grants
Due from other governments
Due from other funds
Restricted assets
Cash and investments with fiscal agents
Total assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenues
Total deferred inflows of resources
Fund Balances
Restricted for
Community development projects
Public safety
Culture and leisure
Transportation
Capital projects
Assigned
Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
American
Rescue Plan State Park
SB1 Act Bond Act
$             402,853 $         4,078,246 $                          ‐ ‐ ‐   ‐
‐ ‐   ‐
‐ ‐   ‐
192,423 ‐   ‐
120,750 ‐   ‐
‐ ‐   ‐
‐ ‐   ‐
716,026         4,078,246 ‐
‐              10,768 ‐
‐ ‐   ‐
‐         4,067,478 ‐
‐ ‐   ‐
‐ ‐   89
‐         4,078,246 89
192,423 ‐   ‐
192,423 ‐   ‐
‐ ‐   ‐
‐ ‐   ‐
‐ ‐   ‐
523,603   ‐ ‐
‐ ‐   ‐
‐ ‐   ‐
‐ ‐   (89)
523,603 ‐   (89)
$             716,026 $         4,078,246 $                          ‐ Special Revenue Funds
1247
107
City of Banning, California
Combining Balance Sheet –
Non‐Major Governmental Funds (Continued)
June 30, 2023
Assets
Pooled cash and investments
Receivables
Accounts, net
Loans
Interest
Grants
Due from other governments
Due from other funds
Restricted assets
Cash and investments with fiscal agents
Total assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenues
Total deferred inflows of resources
Fund Balances
Restricted for
Community development projects
Public safety
Culture and leisure
Transportation
Capital projects
Assigned
Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Special
Revenue
Fund
Police Fire
Animal Control Facilties Facilities
Reserve Development Development
$                          ‐ $             263,759 $                 7,419 ‐ ‐                               ‐
‐ ‐                               ‐
‐                        878                     4,454
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                                           1,313,282 ‐ ‐  ‐                               ‐
‐                264,637             1,325,155
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ 86                               ‐
‐ 86                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐                264,637             1,325,155
‐ (86)                               ‐
(86)                264,637             1,325,155
$                          ‐ $             264,637 $         1,325,155 Capital Project Funds
1248
108
City of Banning, California
Combining Balance Sheet –
Non‐Major Governmental Funds (Continued)
June 30, 2023
Assets
Pooled cash and investments
Receivables
Accounts, net
Loans
Interest
Grants
Due from other governments
Due from other funds
Restricted assets
Cash and investments with fiscal agents
Total assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenues
Total deferred inflows of resources
Fund Balances
Restricted for
Community development projects
Public safety
Culture and leisure
Transportation
Capital projects
Assigned
Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Traffic
Control General Park
Facilities Facilites Development
$               11,170 $             493,170 $             302,286 ‐ ‐                               ‐
‐ ‐                               ‐
6,712                     1,819                        999 ‐ ‐                               ‐
‐ ‐                               ‐
1,980,283                   ‐ 48,229
‐ ‐                               ‐
1,998,165                543,218                303,285 ‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
‐ ‐                               ‐
1,998,165                543,218                303,285 ‐ ‐                               ‐
1,998,165                543,218                303,285 $         1,998,165 $             543,218 $             303,285 Capital Project Funds
1249
109
City of Banning, California
Combining Balance Sheet –
Non‐Major Governmental Funds (Continued)
June 30, 2023
Assets
Pooled cash and investments
Receivables
Accounts, net
Loans
Interest
Grants
Due from other governments
Due from other funds
Restricted assets
Cash and investments with fiscal agents
Total assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenues
Total deferred inflows of resources
Fund Balances
Restricted for
Community development projects
Public safety
Culture and leisure
Transportation
Capital projects
Assigned
Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
BEA Low/Mod Total
Capital Capital BEA Capital Governmental
Improvement Project Fund Project Fund Funds
$      ‐ $      ‐ $      ‐ $     7,239,012
‐ ‐           176    304
‐ ‐      ‐      739,937
‐ ‐      ‐        28,004
‐ ‐      ‐      446,778
‐ ‐      ‐      363,862
‐   545,705 ‐      6,065,258
701,830 ‐          7,686,997   8,388,827
701,830   545,705     7,687,173   23,271,982
‐ ‐         186,337   637,501
‐ ‐      ‐        11,344
‐ ‐      ‐      4,067,697
‐ ‐      ‐      103,486
48,229      ‐     4,004,078   4,141,316
48,229 ‐          4,190,415   8,961,344
‐ ‐      ‐      963,283
‐ ‐      ‐      963,283
‐ ‐      ‐      1,683,300
‐ ‐      ‐        20,247
‐ ‐      ‐        89,821
‐ ‐      ‐      2,618,557
‐   545,705     3,496,758   4,042,463
653,601 ‐      ‐      5,088,061
‐ ‐      ‐        (195,094)
653,601   545,705     3,496,758   13,347,355
$         701,830 $      545,705 $     7,687,173 $   23,271,982 Capital Project Funds
1250
110
City of Banning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds
Year Ended June 30, 2023
Community
Gas Tax Development
Street Measure A Block Grant
Revenues
Taxes $        ‐ $     914,578 $     ‐
Intergovernmental   825,588   271,204   29,784
Use of money and property   1,699     3,835 ‐
Miscellaneous   13,822   ‐ ‐
Total revenues   841,109   1,189,617   29,784
Expenditures
Current
General government    ‐ ‐   ‐
Public safety    ‐ ‐   ‐
Community development   4,958   ‐   16,918
Culture and leisure    ‐ ‐   ‐
Transportation    1,637,538   42,098 ‐
Capital Outlay   90,382   428,618   13,026
Total expenditures    1,732,878   470,716   29,944
Excess of Revenues over
Expenditures    (891,769)   718,901   (160)
Other Financing Sources (Uses)
Transfers in    1,169,368   ‐ ‐
Transfers out    (339,589)   ‐ ‐
Leases    ‐ ‐   ‐
Total other financing
sources (uses)   829,779   ‐ ‐
Net Change in Fund Balances   (61,990)   718,901   (160) Fund Balances ‐ Beginning of Year   (83,395)   613,837    (49,374) Fund Balances ‐ End of Year $         (145,385) $      1,332,738 $      (49,534) Special Revenue Funds
1251
111
City of Banning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues
Taxes
Intergovernmental
Use of money and property
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Community development
Culture and leisure
Transportation
Capital Outlay
Total expenditures
Excess of Revenues over
Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Leases
Total other financing
sources (uses)
Net Change in Fund Balances
Fund Balances ‐ Beginning of Year
Fund Balances ‐ End of Year
Landscape AQMD
Maintenance Air Pollution Asset
District Program Forfeiture
$      145,585 $     ‐ $      ‐
‐    31,203   ‐
719    4,183    19
‐   ‐   ‐
146,304    35,386    19
‐   ‐   ‐
‐   ‐   ‐
‐    3,000   ‐
‐   ‐   ‐
149,679    200   ‐
‐    188,303   ‐
149,679    191,503   ‐
(3,375)    (156,117)    19
‐   ‐   ‐
‐   ‐   ‐
‐   ‐   ‐
‐   ‐   ‐
(3,375)    (156,117)    19
80,232    440,418    1,852
$      76,857 $      284,301 $     1,871
Special Revenue Funds
1252
112
City of Banning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues
Taxes
Intergovernmental
Use of money and property
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Community development
Culture and leisure
Transportation
Capital Outlay
Total expenditures
Excess of Revenues over
Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Leases
Total other financing
sources (uses)
Net Change in Fund Balances
Fund Balances ‐ Beginning of Year
Fund Balances ‐ End of Year
Supplemental Senior
Law Special Center
Enforcement Donations Activities
$      ‐ $          ‐ $          ‐
429,182 ‐     ‐
2,085 ‐       461
‐   5,405   6,347
431,267   5,405   6,808
‐ ‐     ‐
23,183 ‐     ‐
‐   286   1,924
‐ ‐     ‐
‐ ‐     ‐
406,000 ‐     ‐
429,183   286   1,924
2,084   5,119   4,884
‐ ‐     ‐
‐ ‐     ‐
‐ ‐     ‐
‐ ‐     ‐
2,084   5,119   4,884
11,027    31,406    48,412
$     13,111 $        36,525 $        53,296
Special Revenue Funds
1253
113
City of Banning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues
Taxes
Intergovernmental
Use of money and property
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Community development
Culture and leisure
Transportation
Capital Outlay
Total expenditures
Excess of Revenues over
Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Leases
Total other financing
sources (uses)
Net Change in Fund Balances
Fund Balances ‐ Beginning of Year
Fund Balances ‐ End of Year
Wilson Banning
Police Median Housing
Volunteer Improvement Authority
$    ‐ $        ‐ $        ‐
‐ ‐        350,000
34      3,950    24,262
‐ ‐   ‐
34      3,950      374,262
‐ ‐   ‐
293 ‐   ‐
‐ ‐        467,564
‐ ‐   ‐
‐      127 ‐
‐ ‐      58,663
293      127      526,227
(259) 3,823    (151,965)
1,500 ‐   ‐
‐ ‐   ‐
‐ ‐   ‐
1,500 ‐   ‐
1,241      3,823    (151,965)
4,024       397,235      1,835,265
$       5,265 $        401,058 $       1,683,300
Special Revenue Funds
1254
114
City of Banning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues
Taxes
Intergovernmental
Use of money and property
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Community development
Culture and leisure
Transportation
Capital Outlay
Total expenditures
Excess of Revenues over
Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Leases
Total other financing
sources (uses)
Net Change in Fund Balances
Fund Balances ‐ Beginning of Year
Fund Balances ‐ End of Year
American
Rescue Plan State Park
SB1 Act Bond Act
$     ‐ $     ‐ $    ‐
689,098     538,141 ‐
‐ ‐   ‐
‐ ‐   ‐
689,098     538,141 ‐
‐    6,301 ‐
‐ ‐   ‐
‐ ‐   ‐
‐ ‐     89
19,481 ‐   ‐
906,808     174,713 ‐
926,289     181,014   89
(237,191)     357,127    (89)
‐ ‐   ‐
‐   (357,127) ‐
‐ ‐   ‐
‐   (357,127) ‐
(237,191) ‐      (89)
760,794 ‐   ‐
$       523,603 $     ‐ $    (89)
Special Revenue Funds
1255
115
City of Banning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues
Taxes
Intergovernmental
Use of money and property
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Community development
Culture and leisure
Transportation
Capital Outlay
Total expenditures
Excess of Revenues over
Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Leases
Total other financing
sources (uses)
Net Change in Fund Balances
Fund Balances ‐ Beginning of Year
Fund Balances ‐ End of Year
Special
Revenue
Fund
Police Fire
Animal Control Facilties Facilities
Reserve Development Development
$                         ‐ ‐ $                         ‐ $ ‐ ‐                            ‐
‐                  1,965                12,660
‐                35,342                20,888
‐                37,307                33,548
‐ ‐                            ‐
‐                      150                      149
‐ 86                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
86                      150                      149
(86)                37,157                33,399
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
(86)                37,157                33,399
‐              227,480          1,291,756
$                   (86) $           264,637 $       1,325,155 Capital Projects Funds
1256
116
City of Banning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues
Taxes
Intergovernmental
Use of money and property
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Community development
Culture and leisure
Transportation
Capital Outlay
Total expenditures
Excess of Revenues over
Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Leases
Total other financing
sources (uses)
Net Change in Fund Balances
Fund Balances ‐ Beginning of Year
Fund Balances ‐ End of Year
Traffic
Control General Park
Facilities Facilites Development
$                         ‐ ‐ $                         ‐ $ ‐ ‐                            ‐
18,077                  5,057                  1,007
92,066                17,136              109,277
110,143                22,193              110,284
‐ ‐                            ‐
‐ ‐                            ‐
‐                       ‐ 185
‐ ‐                                                 888 ‐ 8,103                            ‐
‐ ‐                                         762,007
8,103                      185              762,895
102,040                22,008            (652,611)
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                                         762,007
‐ ‐                                         762,007
102,040                22,008              109,396
1,896,125              521,210              193,889
$       1,998,165 $           543,218 $           303,285 Capital Projects Funds
1257
117
City of Banning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues
Taxes
Intergovernmental
Use of money and property
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Community development
Culture and leisure
Transportation
Capital Outlay
Total expenditures
Excess of Revenues over
Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Leases
Total other financing
sources (uses)
Net Change in Fund Balances
Fund Balances ‐ Beginning of Year
Fund Balances ‐ End of Year
BEA Low/Mod Total
Capital Capital BEA Capital Governmental
Improvement Project Fund Project Fund Funds
$      ‐ $      ‐ $      ‐ $     1,060,163
‐ ‐     ‐        3,164,200
20,135 ‐        589   100,737
‐ ‐     ‐     300,283
20,135 ‐        589      4,625,383
‐ ‐     ‐       6,301
‐ ‐     ‐       23,775
‐     110    51,938   546,969
‐ ‐     ‐     977
508 ‐     ‐        1,857,734
‐ ‐         145,988      3,174,508
508     110     197,926      5,610,264
19,627 (110) (197,337)     (984,881)
‐ ‐     ‐        1,170,868
‐ ‐     ‐       (696,716)
‐ ‐     ‐     762,007
‐ ‐     ‐        1,236,159
19,627 (110) (197,337)   251,278
633,974   545,815 3,694,095   13,096,077
$         653,601 $    545,705 $     3,496,758 $   13,347,355 Capital Project Funds
1258
118
City of Banning, California
Budgetary Comparison Schedule
Gas Tax Street
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year (498,523) $        $       (144,371) $          (83,395) $           60,976 Resources (Inflows)
Intergovernmental 1,245,079                  1,245,079            825,588           (419,491) Investment income                          ‐ ‐                                          1,699                 1,699 Miscellaneous 13,409                            13,409              13,822                    413 Transfers in 981,500                        981,500         1,169,368            187,868 Amounts available for appropriations 1,741,465                  2,095,617         1,927,082           (168,535) Charges to Appropriations (Outflows)
Community development                         ‐                 4,958                  ‐ 4,958 Transportation 1,984,544                  2,058,191         1,637,538            420,653 Capital Outlay                          ‐ ‐                                       90,382             (90,382) Transfers out                          ‐ ‐                                     339,589           (339,589) Total charges to appropriations 1,984,544                  2,063,149         2,072,467               (9,318) Budgetary Fund Balance ‐
End of Year (243,079) $        $           32,468 $       (145,385) $       (159,217) 1259
119
City of Banning, California
Budgetary Comparison Schedule
Measure A
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 1,417,007 $      $           46,378 $         613,837 $         803,170 Resources (Inflows)
Taxes 857,000                     857,000            914,578              57,578 Intergovernmental        ‐ ‐             271,204            271,204 Investment income                 1,200              1,200      3,835                 2,635 Amounts available for appropriations 2,275,207                  904,578         1,803,454         1,134,587 Charges to Appropriations (Outflows)
Transportation              41,924           41,924   42,098                   (174) Capital outlay         1,350,000      1,733,989            428,618         1,305,371 Total charges to appropriations 1,391,924               1,775,913            470,716         1,305,197 Budgetary Fund Balance ‐
End of Year $         883,283 $       (871,335) $     1,332,738 $       (170,610) 1260
120
City of Banning, California
Budgetary Comparison Schedule
Community Development Block Grant
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 161,123 $          $       (444,952) $          (49,374) $         210,497 Resources (Inflows)
Intergovernmental 45,031                          239,849              29,784           (210,065) Subscriptions                          ‐ ‐                          ‐                          ‐ Amounts available for appropriations 206,154                       (205,103)             (19,590)                    432 Charges to Appropriations (Outflows)
Community development 6,917                               16,917              16,918                       (1) Capital outlay 348,783                        453,601              13,026            440,575 Total charges to appropriations 355,700                        470,518              29,944            440,574 Budgetary Fund Balance ‐
End of Year (149,546) $        $       (675,621) $          (49,534) $       (440,142) 1261
121
City of Banning, California
Budgetary Comparison Schedule
Landscape Maintenance District
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 190,465 $          $         189,665 $           80,232 $         110,233 Resources (Inflows)
Taxes 141,270                        141,270            145,585                 4,315 Investment income 200                                        200                    719                    519 Miscellaneous 78,834                             ‐ 78,834                                      (78,834) Amounts available for appropriations 410,769                        409,969            226,536              36,233 Charges to Appropriations (Outflows)
Transportation 219,379                        238,577            149,679              88,898 Total charges to appropriations 219,379                        238,577            149,679              88,898 Budgetary Fund Balance ‐
End of Year 191,390 $          $         171,392 $           76,857 $          (52,665) 1262
122
City of Banning, California
Budgetary Comparison Schedule
AQMD Air Pollution Program
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 291,959 $          $         291,959 $         440,418 $       (148,459) Resources (Inflows)
Intergovernmental 44,324                            44,324              31,203             (13,121) Investment income 293                                        293                 4,183                 3,890 Amounts available for appropriations 336,576                        336,576            475,804           (157,690) Charges to Appropriations (Outflows)
Community development 3,000                                  3,000                  ‐ 3,000 Transportation 201                                        201                    200                         1 Capital outlay 90,000                          261,358            188,303              73,055 Total charges to appropriations 93,201                          264,559            191,503              73,056 Budgetary Fund Balance ‐
End of Year 243,375 $          $           72,017 $         284,301 $       (230,746) 1263
123
City of Banning, California
Budgetary Comparison Schedule
Asset Forfeiture
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 7,847 $              $             7,847 $             1,852 $             5,995 Resources (Inflows)
Investment income   565                 565           19                   (546) Amounts available for appropriations 8,412                               8,412      1,871                 5,449 Budgetary Fund Balance ‐
End of Year $             8,412 $             8,412 $             1,871 $             5,449 1264
124
City of Banning, California
Budgetary Comparison Schedule
Supplemental Law Enforcement
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 13,173 $            $          (11,827) $           11,027 $             2,146 Resources (Inflows)
Intergovernmental 99,294                            99,294            429,182           (329,888) Investment income 706                                        706                 2,085                 1,379 Amounts available for appropriations 113,173                          88,173            442,294           (326,363) Charges to Appropriations (Outflows)
Public safety 100,000                        100,000              23,183              76,817 Capital outlay                          ‐ ‐                                     406,000           (406,000) Total charges to appropriations 100,000                        100,000            429,183           (329,183) Budgetary Fund Balance ‐
End of Year 13,173 $            $          (11,827) $           13,111 $             2,820 1265
125
City of Banning, California
Budgetary Comparison Schedule
Special Donations
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 42,561 $            $           34,761 $           31,406 $           11,155 Resources (Inflows)
Miscellaneous 12,983                            12,983                 5,405               (7,578) Amounts available for appropriations 55,544                            47,744              36,811                 3,577 Charges to Appropriations (Outflows)
Community development 10,581                            15,426                    286              15,140 Total charges to appropriations 10,581                            15,426                    286              15,140 Budgetary Fund Balance ‐
End of Year 44,963 $            $           32,318 $           36,525 $          (11,563) 1266
126
City of Banning, California
Budgetary Comparison Schedule
Senior Center Activities
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 49,081 $            $           49,081 $           48,412 $                 669 Resources (Inflows)
Investment income 80                                            80                    461                    381 Miscellaneous 11,604                            11,604                 6,347               (5,257) Amounts available for appropriations 60,765                            60,765              55,220               (4,207) Charges to Appropriations (Outflows)
Community development 8,243                                  8,258                 1,924                 6,334 Total charges to appropriations 8,243                                  8,258                 1,924                 6,334 Budgetary Fund Balance ‐
End of Year 52,522 $            $           52,507 $           53,296 $          (10,541) 1267
127
City of Banning, California
Budgetary Comparison Schedule
Police Volunteer
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 3,270 $              $             3,270 $             4,024 $               (754) Resources (Inflows)
Investment income 2                                                  2                      34                      32 Transfers in                          ‐ ‐                                          1,500                 1,500 Amounts available for appropriations 3,272                                  3,272                 5,558                    778 Charges to Appropriations (Outflows)
Public safety 1,067                                  1,067                    293                    774 Community development 11                                             ‐ 11                                               11 Total charges to appropriations 1,078                                  1,078                    293                    785 Budgetary Fund Balance ‐
End of Year 2,194 $              $             2,194 $             5,265 $                    (7) 1268
128
City of Banning, California
Budgetary Comparison Schedule
Wilson Median Improvement
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 400,917 $          $         400,917 $         397,235 $             3,682 Resources (Inflows)
Investment income 775                                        775                 3,950                 3,175 Amounts available for appropriations 401,692                        401,692            401,185                 6,857 Charges to Appropriations (Outflows)
Transportation 127                                        127                     ‐ 127 Total charges to appropriations 127                                        127                     ‐ 127 Budgetary Fund Balance ‐
End of Year 401,565 $          $         401,565 $         401,058 $             6,857 1269
129
City of Banning, California
Budgetary Comparison Schedule
Banning Housing Authority
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 2,232,075 $      $     1,143,529 $     1,835,265 $         396,810 Resources (Inflows)
Intergovernmental                          ‐ ‐                                     350,000            350,000 Investment income 3,241                                  3,241              24,262              21,021 Miscellaneous 16,524                             ‐ 16,524                                      (16,524) Amounts available for appropriations 2,251,840                  1,163,294         2,209,527            751,307 Charges to Appropriations (Outflows)
Community development 15,441                            15,441            467,564           (452,123) Capital outlay                         ‐            982,577              58,663            923,914 Total charges to appropriations 15,441                          998,018            526,227            471,791 Budgetary Fund Balance ‐
End of Year 2,236,399 $      $         165,276 $     1,683,300 $         279,516 1270
130
City of Banning, California
Budgetary Comparison Schedule
SB1
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 841,762 $          $       (123,325) $         760,794 $           80,968 Resources (Inflows)
Intergovernmental 734,740                  1,184,740            689,098           (495,642) Amounts available for appropriations 1,576,502               1,061,415         1,449,892           (414,674) Charges to Appropriations (Outflows)
Transportation              17,482           19,482   19,481        1 Capital outlay            730,000      1,838,623            906,808            931,815 Total charges to appropriations            747,482      1,858,105            926,289            931,816 Budgetary Fund Balance ‐
End of Year $         829,020 $       (796,690) $         523,603 $    (1,346,490) 1271
131
City of Banning, California
Budgetary Comparison Schedule
American Rescue Plan Act
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year $                       ‐ ‐ $                       ‐ $                       ‐ $ Resources (Inflows)
Intergovernmental                          ‐ ‐                                     538,141            538,141 Amounts available for appropriations                          ‐ ‐                                     538,141            538,141 Charges to Appropriations (Outflows)
General government                          ‐ ‐                                          6,301               (6,301) Capital outlay                         ‐            432,950            174,713            258,237 Transfers out                         ‐            398,808            357,127              41,681 Total charges to appropriations                         ‐            831,758            538,141            293,617 Budgetary Fund Balance ‐
End of Year $                      ‐ $        ‐ (831,758) $                       $         244,524 1272
132
City of Banning, California
Budgetary Comparison Schedule
State Park Bond Act
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year $                       ‐ ‐ $                       ‐ $                       ‐ $ Amounts available for appropriations                          ‐ ‐                          ‐                          ‐ Charges to Appropriations (Outflows)
Culture and leisure                         ‐                      89                       ‐ 89 Total charges to appropriations                         ‐                      89                       ‐ 89 Budgetary Fund Balance ‐
End of Year $                      ‐ $                  (89) $                   ‐ (89) $ 1273
133
City of Banning, California
Budgetary Comparison Schedule
Animal Control Reserve
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year $                       ‐ ‐ $                       ‐ $                       ‐ $ Amounts available for appropriations                          ‐ ‐                          ‐                          ‐ Charges to Appropriations (Outflows)
Community development                         ‐                      87                      86                         1 Total charges to appropriations                         ‐                      87                      86                         1 Budgetary Fund Balance ‐
End of Year $                      ‐ $                  (87) $                  (86) $                    (1) 1274
134
City of Banning, California
Budgetary Comparison Schedule
Police Facilities Development
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 223,000 $          $         223,000 $         227,480 $            (4,480) Resources (Inflows)
Investment income 47                                            47                 1,965                 1,918 Miscellaneous 2,469                                  2,469              35,342              32,873 Amounts available for appropriations 225,516                        225,516            264,787              30,311 Charges to Appropriations (Outflows)
Public safety 150                                        150                     ‐ 150 Total charges to appropriations 150                                        150                     ‐ 150 Budgetary Fund Balance ‐
End of Year 225,366 $          $         225,366 $         264,637 $           30,311 1275
135
City of Banning, California
Budgetary Comparison Schedule
Fire Facilities Development
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 1,302,041 $      $     1,302,041 $     1,291,756 $           10,285 Resources (Inflows)
Investment income 1,994                                  1,994              12,660              10,666 Miscellaneous 4,005                                  4,005              20,888              16,883 Amounts available for appropriations 1,308,040                  1,308,040         1,325,304              37,834 Charges to Appropriations (Outflows)
Public safety 150                                        150                    149                         1 Total charges to appropriations 150                                        150                    149                         1 Budgetary Fund Balance ‐
End of Year 1,307,890 $      $     1,307,890 $     1,325,155 $           37,833 1276
136
City of Banning, California
Budgetary Comparison Schedule
Traffic Control Facilities
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 2,257,337 $      $     2,247,337 $     1,896,125 $         361,212 Resources (Inflows)
Investment income 1,098                                  1,098              18,077              16,979 Miscellaneous 132,200                        132,200              92,066             (40,134) Amounts available for appropriations 2,390,635                  2,380,635         2,006,268            338,057 Charges to Appropriations (Outflows)
Transportation 8,104                                  9,177                 8,103                 1,074 Capital outlay 125,000                         ‐ 125,000                                     125,000 Total charges to appropriations 133,104                        134,177                 8,103            126,074 Budgetary Fund Balance ‐
End of Year 2,257,531 $      $     2,246,458 $     1,998,165 $         211,983 1277
137
City of Banning, California
Budgetary Comparison Schedule
General Facilities
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 525,675 $          $         525,675 $         521,210 $             4,465 Resources (Inflows)
Investment income 529                    529      5,057                 4,528 Miscellaneous              31,215           31,215   17,136             (14,079) Amounts available for appropriations 557,419                     557,419            543,403               (5,086) Charges to Appropriations (Outflows)
Community development   185                 185         185 ‐ Capital outlay            125,000         125,000 ‐                         125,000 Total charges to appropriations            125,185         125,185         185            125,000 Budgetary Fund Balance ‐
End of Year $         432,234 $         432,234 $         543,218 $       (130,086) 1278
138
City of Banning, California
Budgetary Comparison Schedule
Park Development
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 171,003 $          $          (98,997) $         193,889 $          (22,886) Resources (Inflows)
Intergovernmental 8,992                                   ‐ 8,992                                          8,992 Investment income 270                                        270                 1,007                    737 Miscellaneous 52,289                            52,289            109,277              56,988 Leases                          ‐ ‐                                     762,007            762,007 Amounts available for appropriations 232,554                         (37,446)         1,066,180            805,838 Charges to Appropriations (Outflows)
Community development 25,000                             ‐ 25,000                                       25,000 Culture and leisure 881                                        888                     ‐ 888 Capital outlay 296,926                        296,926            762,007           (465,081) Total charges to appropriations 322,807                        322,814            762,895           (440,081) Budgetary Fund Balance ‐
End of Year (90,253) $           $       (360,260) $         303,285 $     1,245,919 1279
139
City of Banning, California
Budgetary Comparison Schedule
BEA Low/Mod Capital Project Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 545,943 $          $         545,943 $         545,815 $                 128 Resources (Inflows)
Miscellaneous 128                                         ‐ 128                                            (128) Amounts available for appropriations 546,071                        546,071             ‐ 545,815 Charges to Appropriations (Outflows)
Community development 110                                        110                     ‐ 110 Total charges to appropriations 110                                        110                     ‐ 110 Budgetary Fund Balance ‐
End of Year 545,961 $          $         545,961 $          ‐ 545,705 $ 1280
140
City of Banning, California
Budgetary Comparison Schedule
BEA Capital Project Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance ‐
Beginning of Year 5,361,980 $      $     3,771,035 $     3,694,095 $     1,667,885 Resources (Inflows)
Investment income 7,500                                  7,500                    589               (6,911) Miscellaneous 25,786                             ‐ 25,786                                      (25,786) Amounts available for appropriations 5,395,266                  3,804,321         3,694,684         1,635,188 Charges to Appropriations (Outflows)
Community development 40,718                            40,719              51,938             (11,219) Capital outlay                         ‐            154,338            145,988                 8,350 Total charges to appropriations 40,718                          195,057            197,926               (2,869) Budgetary Fund Balance ‐
End of Year 5,354,548 $      $     3,609,264 $     3,496,758 $     1,638,057 1281
141
City of Banning, California
Combining Statement of Net Position –
Non‐Major Proprietary Funds
June 30, 2023
Refuse
Airport Transit Utility Totals
Assets
Current
Cash and investments 273,168 $            $           400,957 $           446,149 $       1,120,274 Receivables
Accounts 24,950                                      200                94,516              119,666 Notes and loans                           ‐                       ‐ 752                                                 752 Interest                           ‐                  2,100                20,423                22,523 Grants 7,052                                   ‐ 81,766                                           88,818 Prepaid costs 131                                        2,364                      131                  2,626 Due from other funds                           ‐              174,557          4,901,373          5,075,930 Inventories 33,270                 ‐                            ‐                                           33,270 Total current assets 338,571                            662,696          5,462,592          6,463,859 Noncurrent
Capital assets
Capital assets, not depreciated 506,402               ‐                            ‐                                         506,402 Capital assets, net 1,685,967                        156,410                43,387          1,885,764 Right to use lease assets, net of
accumulated amortization                            ‐ ‐                            ‐                            ‐ Right to use subscription IT assets, net of
accumulated amortization                           ‐                 ‐ 26,855                                           26,855 Total noncurrent assets 2,192,369                        183,265                43,387          2,419,021 Total assets 2,530,940                        845,961          5,505,979          8,882,880 Deferred Outflows of Resources
Pension related items 49,611                              495,803              116,922              662,336 OPEB related items 167                                        2,158                      299                  2,624 Total deferred outflows of resources 49,778                              497,961              117,221              664,960 Liabilities
Current
Accounts payable 1,781                                464,391                18,938              485,110 Accrued liabilities 1,818                                  24,033                  4,936                30,787 Unearned revenues 5,957                   ‐                                     4,070,052          4,076,009 Deposits payable 23,484                 ‐                            ‐                                           23,484 Compensated absences 34                                          1,415                      238                  1,687 Total current liabilities 33,074                              489,839          4,094,164          4,617,077 Noncurrent
Compensated absences 15,716                                80,119                37,276              133,111 Net pension liability              187,995          1,789,811              432,608          2,410,414 Total OPEB liability 5,073                                  65,588                  9,083                79,744 Total noncurrent liabilities              208,784          1,935,518              478,967          2,623,269 Total liabilities              241,858          2,425,357          4,573,131          7,240,346 Deferred Inflows of Resources
Pension related items 2,890                                  27,515                  6,651                37,056 OPEB related items 1,380                                  12,856                      898                15,134 Total deferred inflows of resources 4,270                                  40,371                  7,549                52,190 Net Position
Investment in capital assets 2,192,369                        183,265                43,387          2,419,021 Unrestricted 142,221                       (1,305,071)              999,133            (163,717) Total net position (deficit) $       2,334,590 $      (1,121,806) $       1,042,520 $       2,255,304 Business‐Type Activities ‐ Enterprise Funds
1282
142
City of Banning, California
Combining Statement of Revenues, Expenses and Changes in Net Position – Non‐Major Proprietary Funds
Year Ended June 30, 2023
Refuse
Airport Transit Utility Totals
Operating Revenues
Sales and service charges 187,875 $            $             52,344 $       1,076,108 $       1,316,327 Miscellaneous 5,481                                    5,390                  9,419                20,290 Total operating revenues 193,356                              57,734          1,085,527          1,336,617 Operating Expenses
Salaries and benefits 106,152                        1,333,957              274,573          1,714,682 Supplies and services 119,264                            872,971              213,099          1,205,334 Repairs and maintenance 9,065                                     ‐ 2,780                                           11,845 Depreciation expense 196,005                              82,411                  7,420              285,836 Total operating expenses 430,486                        2,292,119              495,092          3,217,697 Operating Income (Loss) (237,130)                     (2,234,385)              590,435         (1,881,080) Nonoperating Revenues (Expenses)
Intergovernmental 43,484                          1,766,948                16,374          1,826,806 Interest revenue and change in fair
Value of investments 49                                          9,758                61,062                70,869 Gain (Loss) on Disposal of Capital Assets                           ‐                 ‐ 11,091                                           11,091 Total nonoperating revenues
(expenses) 43,533                          1,787,797                77,436          1,908,766 Income (Loss) before Transfers (193,597)                        (446,588)              667,871                27,686 Transfers in 848                                    112,004                          5              112,857 Transfer out                           ‐                 (3,584)            (986,500)            (990,084) Total other financing sources 848                                    108,420            (986,495)            (877,227) Changes in Net Position (192,749)                        (338,168)            (318,624)            (849,541) Net Position (deficit) ‐ Beginning of Year 2,527,339                      (783,638)          5,577,179          7,320,880 Prior Period Adjustment                            ‐ ‐                                    (4,216,035)         (4,216,035) Net Position (deficit) ‐ End of Year 2,334,590 $        $      (1,121,806) $       1,042,520 $       2,255,304 Business‐Type Activities ‐ Enterprise Funds
1283
143
City of Banning, California
Combining Statement of Cash Flows –
Non‐Major Proprietary Funds
Year Ended June 30, 2023
Refuse
Airport Transit Utility Totals
Operating Activities
Cash received from customers and users 191,156 $          $           55,385 $     1,061,601 $         1,308,142 Cash paid to suppliers for goods and
Services (160,046)                      (559,075)           (516,324)           (1,235,445) Cash paid to employees for services (105,681)                  (1,344,932)           (281,319)           (1,731,932) Net Cash Provided (Used) by
Operating Activities (74,571)                    (1,848,622)            263,958           (1,659,235) Noncapital Financing Activities
Cash transfers in 848                                112,004                         5                112,857 Cash transfers out                         ‐               (3,584)           (986,500)              (990,084) Interfund borrowings                         ‐           (174,557)       (4,901,373)           (5,075,930) Intergovernmental 49,422                       1,686,827              16,374            1,752,623 Net Cash Provided (Used) by
Noncapital Financing Activities 50,270                       1,620,690       (5,871,494)           (4,200,534) Capital and Related
Financing activities
Sale of capital assets                         ‐               ‐ 11,091                                           11,091 Acquisition and construction of capital
Assets (16,346)                          (92,068)             (24,865)              (133,279) Net Cash (Used) by Capital
and Related Financing Activities (16,346)                          (80,977)             (24,865)              (122,188) Cash Flows from Investing Activities
Issuance of notes and loans receivable                         ‐                  ‐ 4,044                                             4,044 Interest received and change in fair value
of investments 49                                       9,041              50,235                  59,325 Net Cash Provided by
Investing Activities 49                                    13,085              50,235                  63,369 Net Change in Cash and Cash Equivalents (40,598)                        (295,824)       (5,582,166)           (5,918,588) Cash and Cash Equivalents ‐ Beginning of Year 313,766                        696,781         6,028,315            7,038,862 Cash and Cash Equivalents ‐ End of Year 273,168 $          $         400,957 $         446,149 $         1,120,274 Business‐Type Activities ‐ Enterprise Funds
1284
144
City of Banning, California
Combining Statement of Cash Flows (Continued)
Non‐Major Proprietary Funds
Year Ended June 30, 2023
Refuse
Airport Transit Utility Totals
Reconciliation of Operating Income
to Net Cash Provided (Used)
By Operating Activities
Operating Income (Loss) (237,130) $        $    (2,234,385) $         590,435 $        (1,881,080) Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities
Changes in Operating Assets and
Liabilities
Depreciation (expense) 196,005                82,411     7,420    285,836 (Increase) Decrease in Assets
Accounts receivable   (3,205)          15        (23,795)     (26,985) Prepaid (131) (2,364) (131) (2,626)
Inventories     1,136 ‐     ‐            1,136
Deferred pension related items        (27,867)      (288,789)        (66,886)          (383,542) Deferred opeb related items          55 (49) 211    217 Increase (Decrease) in Liabilities
Accounts payable        (34,746)       463,700 1,330    430,284 Accrued liabilities        400         10,067 2,532      12,999 Deposits payable        970 ‐            (65,713)     (64,743) Unearned revenue     1,659      (157,091)      (241,374)          (396,806) Net pension liability         63,951       608,851       147,163    819,965 Total OPEB liability   (1,920) (987) (7,009)       (9,916) Compensated absences     3,108         21,171 6,864      31,143 Deferred pension related items        (38,236)      (364,028)        (87,987)          (490,251) Deferred OPEB related items     1,380         12,856        898      15,134 Net Cash Provided (Used) by
Operating Activities $          (74,571) $    (1,848,622) $         263,958 $        (1,659,235) Business‐Type Activities ‐ Enterprise Funds
1285
145
City of Banning, California
Combining Statement of Net Position –
Internal Service Funds
June 30, 2023
Utility
Self Fleet Information Billing
Insurance Maintenance Services Services Totals
Assets
Current
Pooled cash and investments $      ‐ $       2,596 $      ‐ $      ‐ $       2,596 Receivables
Accounts    4,206   36,360 ‐        121,245     161,811 Interest    ‐    1,726 ‐     ‐       1,726
Prepaid costs    ‐ ‐        525    2,571     3,096
Due from other funds    ‐    615,506 ‐     ‐       615,506 Inventories    ‐   54,297 ‐     ‐      54,297
Total current assets    4,206    710,485     525    123,816     839,032 Noncurrent
Capital assets
Capital assets, net    ‐    236,286    6,103    22,311     264,700 Right to use lease assets, net of
accumulated amortization    ‐   21,157 ‐        18,485    39,642 Total noncurrent assets    ‐    257,443    6,103    40,796     304,342 Total assets    4,206    967,928    6,628    164,612    1,143,374 Deferred Outflows of Resources
Pension related items   71,374    225,343    200,111    598,745    1,095,573 OPEB related items    1,746    757    3,894    2,213     8,610 Total deferred outflows of resources 73,120       226,100    204,005    600,958    1,104,183 Liabilities
Current
Accounts payable   206,528   65,785    1,183    18,699     292,195 Accrued liabilities   859,212   12,592    9,967    24,552     906,323 Due to other governments   18,281 ‐    ‐     ‐      18,281 Due to other funds     1,589,081 ‐       624,002    166,061    2,379,144 Compensated absences    10    580     543    2,668     3,801 Claims and judgments   530,660 ‐    ‐     ‐       530,660 Bonds, notes, and leases    ‐   12,968 ‐        13,770    26,738 Total current liabilities     3,203,772   91,925    635,695    225,750    4,157,142 Noncurrent
Compensated absences   10,936   40,172   42,654    95,822     189,584 Net pension liability   264,425    865,918    663,928    2,129,475    3,923,746 Total OPEB liability    8,730   23,003   18,874    67,240     117,847 Claims and judgments     1,915,022 ‐    ‐     ‐      1,915,022 Bonds, notes, and leases    ‐ ‐    ‐        2,701     2,701 Total noncurrent liabilities     2,199,113    929,093    725,456    2,295,238    6,148,900 Total liabilities     5,402,885      1,021,018      1,361,151    2,520,988   10,306,042 Deferred Inflows of Resources
Pension related items    4,065   13,312   10,207    32,737    60,321 OPEB related items    863    3,726    1,866    15,356    21,811 Total deferred inflows of resources    4,928   17,038   12,073    48,093    82,132 Net Position
Investment in capital assets    ‐    244,475    6,103    24,325     274,903 Unrestricted   (5,330,487)     (88,503)   (1,168,694)    (1,827,836)    (8,415,520) Total net position (deficit) $    (5,330,487) $       155,972 $    (1,162,591) $    (1,803,511) $    (8,140,617) 1286
146
City of Banning, California
Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds
June 30, 2023
Utility
Self Fleet Information Billing
Insurance Maintenance Services Services Totals
Operating Revenues
Sales and service charges 2,795,711 $      $     1,634,906 $         621,727 $     2,480,187 $     7,532,531 Miscellaneous          ‐     23,273 ‐      ‐            23,273 Total operating revenues         2,795,711       1,658,179        621,727    2,480,187         7,555,804 Operating Expenses
Salaries and benefits    133,631   586,048        444,187    1,531,744         2,695,610 Supplies and services         2,396,869       1,218,561   91,685       703,180         4,410,295 Repairs and maintenance          ‐   304,114        215,257    8,528      527,899 Insurance premiums         2,781,455 ‐             ‐     ‐         2,781,455 Depreciation expense          ‐     25,613 ‐         9,925        35,538 Total operating expenses         5,311,955       2,134,336        751,129    2,253,377      10,450,797 Operating Income (Loss)       (2,516,244)         (476,157)       (129,402)       226,810       (2,894,993) Nonoperating Revenues (Expenses)
Interest revenue and change in fair value of investments 21,086              6,857 ‐      ‐            27,943 Interest expense          ‐ (333) ‐ (263) (596)
Gain (loss) on disposal of capital assets          ‐   109      ‐ ‐          109 Total nonoperating revenues (expenses)      21,086        6,633 ‐      (263) 27,456 Income (Loss) before Transfers       (2,495,158)         (469,524)       (129,402)       226,547       (2,867,537) Transfers in          ‐        2 ‐      ‐        2
Changes in Net Position       (2,495,158)         (469,522)       (129,402)       226,547       (2,867,535) Net Position (Deficit) ‐ Beginning of Year       (2,835,329)   625,494   (1,033,189)       (2,030,058)       (5,273,082) Net Position (Deficit) ‐ End of Year $    (5,330,487) $         155,972 $    (1,162,591) $    (1,803,511) $    (8,140,617) 1287
147
City of Banning, California
Combining Statement of Cash Flows –
Internal Service Funds
June 30, 2023
Utility
Self Fleet Information Billing
Insurance Maintenance Services Services Totals
Operating Activities
Cash received from customers and users 2,798,341 $      $     1,757,826 $         621,202 $     2,378,569 $     7,555,938 Cash paid to suppliers for goods and
services (4,378,807)              (1,502,658)           (306,959)           (743,674)       (6,932,098) Cash paid to employees for services (128,981)                      (598,130)           (480,295)       (1,581,131)       (2,788,537) Net Cash Provided (Used) by
Operating Activities (1,709,447)                  (342,962)           (166,052)              53,764       (2,164,697) Financing Activities
Operating Subsidies 1,589,081                    (615,506)            166,052             (46,661)         1,092,966 Cash transfers in                         ‐                          ‐ 2                          ‐                                                  2 Intergovernmental 18,281                                   ‐ 397                          ‐                                       18,678 Net Cash Provided (Used) by
Financing Activities 1,607,362                    (615,107)            166,052             (46,661)         1,111,646 Capital and Related Financing Activities
Proceeds from sales of capital assets                         ‐                     ‐ 109                          ‐                                             109 Lease principal payments                         ‐              ‐ (15,981)                                        (6,840)             (22,821) Lease interest payments                         ‐                    ‐ (333)                                            (263)                   (596) Net Cash Provided (Used) by Capital
and Related Financing Activities                         ‐              ‐ (16,205)                                        (7,103)             (23,308) Investing Activities
Interest received 21,086                                ‐ 5,915                          ‐                                       27,001 Net Change in Cash and Cash Equivalents (80,999)                         ‐ (968,359)                          ‐                                (1,049,358) Cash and Cash Equivalents ‐ Beginning of Year 80,999                           ‐ 970,955                          ‐                                  1,051,954 Cash and Cash Equivalents ‐ End of Year $                      ‐ $              ‐ 2,596 $                       ‐ $                       $             2,596 1288
148
City of Banning, California
Combining Statement of Flows (Continued)
Internal Service Funds
June 30, 2023
Utility
Self Fleet Information Billing
Insurance Maintenance Services Services Totals
Reconciliation of Operating Income
Loss to Net Cash Provided by
Operating Activities
Operating Income (Loss) (2,516,244) $     $       (476,157) $       (129,402) $         226,810 $    (2,894,993) Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities
Depreciation                         ‐               ‐ 25,613                                          9,925              35,538 (Increase) Decrease in Assets
Accounts receivable 2,630                                 ‐ (7,205)                                      (99,047)           (103,622) Inventories                         ‐             ‐ 106,852                          ‐                                     106,852 Prepaid costs                          ‐ ‐                                            (525)               (2,571)               (3,096) Deferred pension related items (40,790)                        (125,189)           (123,320)           (352,445)           (641,744) Deferred OPEB related items (1,434)                                   264               (3,112)                    297               (3,985) Increase (Decrease) in Liabilities
Accounts payable 51,683                            13,879               (3,613)             (33,951)              27,998 Accrued liabilities 858,378                             6,138                 3,596                 1,985            870,097 Net pension liability 89,952                          294,565            225,853            724,397         1,334,767 Total OPEB liability (1,106)                              (9,206)               (5,822)             (11,969)             (28,103) Claims and judgments (110,544)            ‐                          ‐                          ‐                                    (110,544) Compensated absences 10,946                                 (124)                 3,462                 8,089              22,373 Deferred OPEB related items 863                                     3,726                 1,866              15,356              21,811 Deferred pension related items (53,781)                        (176,118)           (135,035)           (433,112)           (798,046) Net Cash Provided (Used) by
Operating Activities (1,709,447) $     $       (342,962) $       (166,052) $           53,764 $    (2,164,697) 1289
149
City of Banning, California
Combining Statement of Fiduciary Net Position –
Custodial Funds
June 30, 2023
Sun Lake Special Area Police Fair Oaks Cameo CFD
CFD 86‐1 AD 91‐1 Computer AD 2001‐1 Homes 2020‐02 Totals Assets
Pooled cash and investments 37,105 $            $           76,722 $                 191 $         151,791 $                 255 $         264,898 $         530,962 Receivables
Accounts                          ‐ ‐                          ‐                                           ‐ 2,951                          ‐                                          2,951 Interest 125                                         ‐ 259                          ‐                                                ‐ 55                                             439 Due from other governements                          ‐ ‐                          ‐                                           ‐ 2,217                          ‐                                          2,217 Restricted assets
Cash and investments
With fiscal agents                          ‐ ‐                          ‐                                      ‐ 228,564                          ‐                                     228,564 Total assets 37,230                            76,981                    191            385,523                    310            264,898            765,133 Liabilities
Accounts payable                          ‐ ‐                          ‐                                                ‐ 32                          ‐                                               32 Deposits payable                         ‐               ‐ 19,958                                        ‐ 29,235                          ‐                                       49,193 Total liabilities                         ‐               ‐ 19,958                                        ‐ 29,267                          ‐                                       49,225 Net position
Held in trust for other
Organizations 37,230                            57,023                    191            356,256                    310            264,898            715,908 Total net position 37,230 $            $           57,023 $                 191 $         356,256 $                 310 $         264,898 $         715,908 1290
150
City of Banning, California
Combining Statement of Changes in Fiduciary Net Position – Custodial Funds
Year Ended June 30, 2023
Sun Lake Special Area Police Fair Oaks Cameo CFD
CFD 86‐1 AD 91‐1 Computer AD 2001‐1 Homes 2020‐02 Totals Additions
Taxes $      ‐ $          ‐ $      ‐ $         195,837 $     ‐ $         234,917 $      430,754 Interest and change in
fair value of investments 366 757 314 10 310      ‐       1,757 Total additions      366    757      314   195,847   310   234,917     432,511 Deductions
Administrative expenses    ‐ ‐       31,119     15,249      8,191 ‐         54,559 Principal payment    ‐ ‐     ‐      110,000    ‐ ‐          110,000 Interest expense    ‐ ‐     ‐        88,930 ‐    ‐         88,930 Total deductions    ‐ ‐       31,119   214,179      8,191 ‐          253,489 Change in Net Position      366    757      (30,805)    (18,332)    (7,881)   234,917     179,022 Net Position ‐ Beginning of Year 36,864        56,266   30,996   374,588      8,191     29,981     536,886 Net Position ‐ End of Year $         37,230 $         57,023 $        191 $         356,256 $       310 $         264,898 $      715,908 1291
Statistical Section
June 30, 2023
City of Banning, California
1292
151
City of Banning, California
Description of Schedules
June 30, 2023
This section of the City of Banning’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Financial Trends
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
These schedules contain information to help the reader assess the factors affecting the City’s ability to generate its key revenues.

Debt Capacity
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
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information
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. 1293

CITY OF BANNING
Table 1 ‐ Net Position by ComponentLast Ten Fiscal Years (accrual basis) 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities:

Net Investment in capital assets $ 79,795,958 $ 76,155,814 $ 72,517,050 $ 70,010,870 $ 66,686,458 $ 65,515,669 $ 68,336,960 $ 70,289,375 $ 80,575,289 Restricted 5,819,965 14,257,465 14,680,040 14,514,482 15,025,895 13,625,501 11,745,009 9,209,053 9,391,803 Unrestricted (3,750,779) 1,381,053 569,568 (1,239,778) (3,339,506) (6,533,345) (5,304,091) (10,484,996) (18,807,558) Total governmental activities net position $ 81,865,144 $ 91,794,332 $ 87,766,658 $ 83,285,574 $ 78,372,847 $ 72,607,825 $ 74,777,878 $ 69,013,432 $ 71,159,534 Business‐type activities:

Net Investment in capital assets $ 35,025,342 $ 46,164,187 $ 49,101,929 $ 54,651,632 $ 55,418,755 $ 58,185,572 $ 68,242,143 $ 86,364,235 $ 104,263,839 Restricted 20,852,195 17,086,463 17,237,091 6,870,598 12,900,528 $ 10,242,658 $ 7,182,657 7,413,570 4,313,770 Unrestricted 52,395,049 48,642,361 49,602,708 55,601,962 54,083,097 $ 55,642,567 $ 56,186,413 52,100,216 40,263,273 Total business‐type activities net position $ 108,272,586 $ 111,893,011 $ 115,941,728 $ 117,124,192 $ 122,402,380 $ 124,070,797 $ 131,611,213 $ 145,878,021 $ 148,840,882 Primary government:

Net Investment in capital assets $ 114,821,300 $ 122,320,001 $ 121,618,979 $ 124,662,502 $ 122,105,213 $ 123,701,241 $ 136,579,103 $ 156,653,610 $ 184,839,128 Restricted 26,672,160 31,343,928 31,917,131 21,385,080 27,926,423 $ 23,868,159 $ 18,927,666 16,622,623 13,705,573 Unrestricted 48,644,270 50,023,414 50,172,276 54,362,184 50,743,591 $ 49,109,222 $ 50,882,322 41,615,220 21,455,715 Total primary government activities net position $ 190,137,730 $ 203,687,343 $ 203,708,386 $ 200,409,766 $ 200,775,227 $ 196,678,622 $ 206,389,091 $ 214,891,453 $ 220,000,416 *Amounts reported prior to 2023 have not been restated.

Source: City of Banning Finance Department
Fiscal Year
152
1294

CITY OF BANNING
Table 2 ‐ Changes in Net Position
Last Ten Fiscal Years (accrual basis)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Program Revenue:

Governmental activities:

Charges for Services
General Government $ 3,518,279 $ 3,673,140 $ 3,428,121 $ 3,498,269 $ 1,935,931 $ 3,522,951 $ 2,391,540 $ 2,794,965 $ 2,806,493 $ 6,336,709 Public Safety $ 88,698 $ 167,426 $ 71,550 $ 60,673 $ 75,552 $ 60,608 $ 184,204 $ 253,972 $ 540,423 $ 472,520 Community Development $ 581,449 $ 826,327 $ 692,337 $ 836,137 $ 1,074,183 $ 3,417,110 $ 3,800,759 $ 3,751,762 $ 3,352,881 Culture and Leisure $ 69,554 $ 78,191 $ 95,455 $ 136,740 $ 154,452 $ 107,551 $ 68,347 $ 105,523 $ 191,458 $ 161,767 Public Works/Transportation $ 590,975 $ 75,897 $ 92,545 $ 52,830 $ 42,264 $ 162,294 $ 236,781 $ 268,726 $ 40,745 $ 9,432 Operating Contributions and Grants $ 1,645,348 $ 1,162,736 $ 1,848,420 $ 767,501 $ 2,011,733 $ 882,361 $ 2,027,196 $ 4,170,619 $ 4,987,432 $ 4,654,162 Capital Contributions and Grants $ 422,492 $ 888,241 $ 392,728 $ 160,156 $ 555,374 $ 195,760 $ 563,818 $ 4,427,752 $ 2,824,531 $ 3,054,584 Total governmental activities program revenues $ 6,335,346 $ 6,627,080 $ 6,755,146 $ 5,368,506 $ 5,611,443 $ 6,005,708 $ 8,888,996 $ 15,822,316 $ 15,142,844 $ 18,042,055 Business‐type activities:

Charges for Services
Airport $ 172,656 $ 147,965 $ 136,789 $ 162,731 $ 232,734 $ 199,253 $ 169,821 $ 226,477 $ 227,757 $ 187,875 Transit $ 163,257 $ 153,211 $ 138,753 $ 130,112 $ 117,872 $ 111,068 $ 91,376 $ 23,005 $ 62,297 $ 52,344 Electric Utility $ 30,821,540 $ 30,163,068 $ 30,584,446 $ 34,374,969 $ 31,048,355 $ 31,485,295 $ 30,034,857 $ 29,855,208 $ 12,643,832 $ 31,286,002 BUA Water $ 10,575,576 $ 9,696,891 $ 8,856,234 $ 9,756,472 $ 9,554,347 $ 9,681,733 $ 10,390,992 $ 12,406,181 $ 31,007,494 $ 12,107,023 BUA Wastewater $ 3,423,514 $ 3,462,692 $ 3,482,411 $ 3,568,129 $ 3,339,942 $ 3,672,200 $ 3,818,607 $ 3,728,441 $ 4,273,847 $ 5,029,168 Refuse $ 3,165,206 $ 3,131,670 $ 3,364,634 $ 3,473,035 $ 3,562,532 $ 4,513,331 $ 4,717,664 $ 4,840,340 $ 5,702,140 $ 1,076,108 Operating Contributions and Grants $ 1,802,425 $ 1,683,815 $ 1,971,552 $ 2,128,770 $ 2,590,014 $ 1,839,875 $ 2,231,912 $ 3,123,766 $ 3,944,910 $ 1,706,363 Capital Contributions and Grants $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 4,557,041 $ 4,926,599 $ 8,736,795 Total business‐type activities program revenues $ 50,124,174 $ 48,439,312 $ 48,534,819 $ 53,594,218 $ 50,445,796 $ 51,502,755 $ 51,455,229 $ 58,760,459 $ 62,788,876 $ 60,181,678 Total primary government program revenues $ 56,459,520 $ 55,066,392 $ 55,289,965 $ 58,962,724 $ 56,057,239 $ 57,508,463 $ 60,344,225 $ 74,582,775 $ 77,931,720 $ 78,223,733 Expenses:

Governmental activities:

Charges for Services
General Government $ 2,584,494 $ 2,161,242 $ 2,225,118 $ 2,590,641 $ 2,461,098 $ 3,124,340 $ 3,209,677 $ 5,248,275 $ 5,566,598 $ 7,742,422 Public Safety $ 10,126,310 $ 9,615,308 $ 8,583,405 $ 11,566,632 $ 13,123,891 $ 13,575,303 $ 14,974,435 $ 15,220,931 $ 17,144,268 $ 18,528,062Community Development $ 89,000 $ 1,333,832 $ 1,598,792 $ 1,495,415 $ 1,621,737 $ 2,012,561 $ 3,573,064 $ 4,470,992 $ 4,876,304 $ 8,789,153 Culture and Leisure $ 1,122,226 $ 1,132,717 $ 1,001,189 $ 1,308,589 $ 1,441,115 $ 1,612,308 $ 1,664,747 $ 1,850,782 $ 2,149,958 $ 2,641,392 Public Works/Transportation $ 6,270,524 $ 5,044,885 $ 4,585,220 $ 4,967,935 $ 4,970,388 $ 5,747,250 $ 6,089,732 $ 3,819,726 $ 5,980,759 $ 6,865,215 Interest on long‐term debt $ 101,479 $ 88,096 $ 86,124 $ 76,005 $ 55,195 $ 36,109 $ 16,562 $ 2,606 $ ‐ $ 66,519 Total governmental activities program expenses $ 20,294,033 $ 19,376,080 $ 18,079,848 $ 22,005,217 $ 23,673,424 $ 26,107,871 $ 29,528,217 $ 30,613,312 $ 35,717,887 $ 44,632,763 Business‐type activities:

Charges for Services
Airport 382,611 382,510 209,930 351,599 391,245 353,205 319,358 432,421 472,059 443,140 Transit 1,722,416 1,854,509 1,858,161 1,726,873 1,866,561 2,315,554 2,365,198 2,312,227 1,774,710 2,359,493 Electric Utility 28,819,584 28,253,812 29,505,627 33,351,692 32,726,577 31,020,023 30,813,647 31,627,402 9,233,135 9,956,699 BUA Water 7,569,525 7,786,308 7,308,819 7,658,337 8,139,411 8,316,156 8,700,459 8,143,196 33,253,167 36,026,046 BUA Wastewater 2,915,736 2,884,856 2,701,401 2,899,152 2,936,846 3,502,698 3,781,828 3,440,848 3,944,924 3,865,935 Refuse 3,074,393 3,088,208 3,082,003 3,341,491 3,526,288 4,483,427 4,815,164 4,863,174 1,216,002 509,645 Total business‐type activities program expenses $ 44,484,265 $ 44,250,203 $ 44,665,941 $ 49,329,144 $ 49,586,928 $ 49,991,063 $ 50,795,654 $ 50,819,268 $ 49,893,997 $ 53,160,958 Total primary government program expenses $ 64,778,298 $ 63,626,283 $ 62,745,789 $ 71,334,361 $ 73,260,352 $ 76,098,934 $ 80,323,871 $ 81,432,580 $ 85,611,884 $ 97,793,721 Net revenues (expenses)
Governmental activities: $ (13,958,687) $ (12,749,000) $ (11,324,702) $ (16,636,711) $ (18,061,981) $ (20,102,163) $ (20,639,221) $ (14,790,996) $ (20,575,043) $ (26,590,708) Business‐type activities: $ 5,639,909 $ 4,189,109 $ 3,868,878 $ 4,265,074 $ 858,868 $ 1,511,692 $ 659,575 $ 7,941,191 $ 12,894,879 $ 7,020,720 Total net revenues (expenses) $ (8,318,778) $ (8,559,891) $ (7,455,824) $ (12,371,637) $ (17,203,113) $ (18,590,471) $ (19,979,646) $ (6,849,805) $ (7,680,164) $ (19,569,988) Fiscal Year
153
1295

CITY OF BANNING
Table 2 ‐ Changes in Net Position
Last Ten Fiscal Years (accrual basis)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Fiscal Year
General revenues and other changes in net position:

Governmental activities:

Taxes:

Property taxes, general purpose 4,001,164 $ $ 4,238,973 $ 4,459,662 $ 4,685,723 $ 4,959,588 $ 5,223,775 $ 5,383,240 $ 6,004,043 $ 6,546,613 $ 6,939,283 Transiet occupancy taxes 712,135 $ $ 722,434 $ 789,994 $ 861,221 $ 854,928 $ 895,887 $ 804,389 $ 1,119,765 $ 1,290,574 $ 1,179,126 Sales taxes 3,413,423 $ $ 3,533,478 $ 3,497,150 $ 3,762,082 $ 4,188,798 $ 4,466,545 $ 4,300,140 $ 4,630,683 $ 6,797,082 $ 5,790,112 Franchise taxes $ 861,155 $ 871,284 $ 860,923 $ 839,395 $ 871,107 $ 895,534 $ 919,373 $ 922,932 $ 535,461 $ 543,207 Other taxes $ 261,305 $ 684,734 $ 734,954 $ 373,310 $ 542,857 $ 1,197,131 $ 1,163,462 $ 574,645 $ 667,052 $ 882,997 Motor vehicle in lieu ‐ unrestricted $ 12,427 $ 12,303 $ 13,813 $ 16,354 $ 15,016 $ 24,570 $ 22,828 $ 37,237 $ ‐ Uses of money and property (investment income) $ 582,558 $ 519,940 $ 628,752 $ 646,221 $ 737,464 $ 1,128,236 $ 967,914 $ 37,985 $ (159,039) $ 317,399 Other/miscellaneous $ 469,656 $ 774,987 $ 397,009 $ 534,441 $ 506,692 $ 554,860 $ 436,266 $ 3,266,109 $ 10,017 $ 1,125,051 Gain on sale of capital asset $ 1,039 $ 8,801,033 $ 3,133 $ 3,600 $ 25,392 $ 2,468 $ ‐ $ ‐
Transfers $ 724,000 $ 720,432 $ 652,157 $ 724,000 $ 724,000 $ 638,759 $ 699,653 $ 177,439 $ (74,274) $ 1,168,771 Total governmental activities $ 11,183,677 $ 12,233,714 $ 20,990,205 $ 12,609,037 $ 13,580,897 $ 15,189,436 $ 14,874,199 $ 16,961,049 $ 15,833,053 $ 17,945,946 Business‐type activities:

Property taxes, general purpose
Uses of money and property (investment income) $ 272,796 $ 164,885 $ 218,902 $ 252,397 $ 642,496 $ 1,593,722 $ 1,009,209 $ 19,460 $ (450,248) $ 796,142 Other/miscellaneous $ 288,557 $ 178,290 $ 184,802 $ 252,581 $ 405,100 $ 272,773 $ 692,150 $ 3 $ ‐ $ 130,375 Gain on sale of capital asset $ 461 $ 2,665 $ 835 $ 7,136 $ 108,777 $ 33,968 $ ‐ Transfers $ (724,000) $ (720,432) $ (652,157) $ (724,000) $ (724,000) $ (638,759) $ (699,653) $ (177,439) $ 74,274 $ (1,168,771) Total business‐like activities $ (162,186) $ (377,257) $ (248,453) $ (216,357) $ 323,596 $ 1,228,571 $ 1,008,842 $ (49,199) $ (342,006) $ (242,254) Total general revenues $ 11,021,491 $ 11,856,457 $ 20,741,752 $ 12,392,680 $ 13,904,493 $ 16,418,007 $ 15,883,041 $ 16,911,850 $ 15,491,047 $ 17,703,692 Changes in net position
Governmental activities: $ (2,775,010) $ (515,286) $ 9,665,503 $ (4,027,674) $ (4,481,084) $ (4,912,727) $ (5,765,022) $ 2,170,053 $ (4,741,990) $ (8,644,762) Business‐type activities: $ 5,477,723 $ 3,811,852 $ 3,620,425 $ 4,048,717 $ 1,182,464 $ 2,740,263 $ 1,668,417 $ 7,891,992 $ 12,552,873 $ 6,778,466 Total primary government $ 2,702,713 $ 3,296,566 $ 13,285,928 $ 21,043 $ (3,298,620) $ (2,172,464) $ (4,096,605) $ 10,062,045 $ 7,810,883 $ (1,866,296) *Amounts reported prior to 2023 have not been restated.

Source: City of Banning Finance Department
Extraordinary gain/(loss) on dissolution of redevlopment agency (Note 17)
154
1296

CITY OF BANNING
Table 3 ‐ Fund Balances of Governmental Funds
Last Ten Fiscal Years (modified accrual basis)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund:

Non‐Spendable 27,950 $ $ 5,100 $ 43,923 $ 63,225 $ 61,372 $ 54,552 $ 28,434 $ 26,315 $ 29,431 $ 202,675 Restricted                            ‐ ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐ Committed 3,480,481 3,806,936 3,975,332 4,096,473 4,528,172 4,785,065 3,525,858 1,500,000 1,500,000 1,500,000 Assigned 2,340,003 2,722,165 4,687,477 4,415,700 4,911,017 4,998,482 5,185,192 3,404,019 3,411,665 1,500,000 Unassigned 753,115 3,267,395 3,536,735 4,742,954 2,739,006 3,269,500 3,044,388 5,029,615 4,879,118 753,377 Total general fund $ 6,601,549 $ 9,801,596 $ 12,243,467 $ 13,318,352 $ 12,239,567 $ 13,107,599 $ 11,783,872 $ 9,959,949 $ 9,820,214 $ 3,956,052 All Other Governmental Funds
Non‐SpendableRestricted
Reported in:

Special revenue funds 5,986,616 5,805,914 5,503,509 5,312,223 6,214,265 6,862,505 6,144,345 5,837,086 4,224,502 1,793,368 Capital project funds 325,116 14,051 8,753,956 9,367,817 8,300,217 8,163,390 7,481,156 5,907,923 4,239,910 6,661,020 Debt Service funds
CommittedAssigned 2,628,525 2,620,462 2,624,852 2,662,362 2,674,301 2,565,078 2,542,385 5,000,419 4,764,434 5,088,061 Unassigned (2,485,462) (2,061,740) (1,547,898) (1,113,773) (633,728) (699,152) (1,144,021) (286,646) (132,769) (195,094) Total all other governmental funds $ 6,454,795 $ 6,378,687 $ 15,334,419 $ 16,228,629 $ 16,555,055 $ 16,891,821 $ 15,023,865 $ 16,458,782 $ 13,096,077 $ 13,347,355 Total primary government program revenues $ 13,056,344 $ 16,180,283 $ 27,577,886 $ 29,546,981 $ 28,794,622 $ 29,999,420 $ 26,807,737 $ 26,418,731 $ 22,916,291 $ 17,303,407 *Amounts reported prior to 2023 have not been restated.

Note: The City of Banning implemented changes to the presentation of fund balance per GASB Statement No 54 in fiscal year 2011 Source: City of Banning Finance Department
Fiscal Year
155
1297

CITY OF BANNING
Table 4 ‐ Changes in Fund Balance of Governmental Funds Last Ten Fiscal Years (modified accrual basis)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Taxes 9,406,564 $ $ 10,138,020 $ 10,792,461 $ 10,739,122 $ 11,596,387 $ 12,849,432 $ 12,742,196 $ 13,149,520 $ 15,587,711 $ 15,334,725 Licenses and Permits 219,998 542,773 779,554 605,809 799,517 925,340 3,362,718 2,975,991 3,096,461 1,868,894 Intergovernmental 1,935,257 2,388,989 2,040,858 2,582,458 2,310,871 1,429,852 2,576,501 4,535,311 5,627,326 4,190,331 Charges for services 3,580,518 3,555,706 3,317,149 3,396,761 1,842,536 3,519,930 2,422,355 309,482 4,986,735 4,743,090 Use of money and property 540,560 519,940 553,390 640,812 730,369 1,006,328 824,149 267,820 (106,461) 289,456 Fines and fortfeitures 291,125 303,308 267,410 252,114 248,336 233,389 169,833 180,425 114,948 187,665 Contributions 27,671 15,873 13,724 13,502 26,157 15,448 17,137 12,350 10,042 ‐ Contributions from Successor Agency 123,840 250,000 103,932 250,000 250,000 250,000 250,000 250,000 250,000 Miscellaneous 538,711 786,454 457,486 567,775 547,331 710,285 669,559 6,812,371 2,157,866 1,124,165 Total Revenues $ 16,540,404 $ 18,374,903 $ 18,472,032 $ 18,902,285 $ 18,351,504 $ 20,940,004 $ 23,034,448 $ 28,493,270 $ 31,724,628 $ 27,988,326 Expenditures
General government $ 2,359,703 $ 2,515,876 $ 2,227,796 $ 2,317,140 $ 2,346,949 $ 2,664,332 $ 2,972,421 $ 4,484,323 $ 4,675,193 $ 6,021,451 Public safety 9,322,284 8,973,171 9,529,941 10,063,201 10,944,961 11,153,944 13,075,950 13,563,927 15,284,905 15,989,435 Community Development 1,320,264 1,547,336 1,447,973 1,595,580 1,931,189 3,247,945 4,187,335 4,471,179 5,423,682 Culture and leisure 729,874 727,793 764,076 1,049,253 1,106,051 1,192,937 1,263,614 1,374,080 1,596,510 1,919,057Public Works/Transportation 2,373,978 1,015,760 1,059,235 918,170 1,379,680 1,285,522 2,008,296 1,879,755 1,756,479 1,857,734Capital outlay 818,606 1,660,791 963,545 1,203,917 1,936,697 1,628,584 3,867,445 3,353,979 4,677,919 3,911,660 Debt services:

Principal retirement 333,112 345,721 358,806 579,198 460,329 478,835 416,296 212,276 ‐ 179,036 Interest and fiscal charges 103,141 90,261 76,884 78,338 57,616 38,622 19,170 3,936 ‐ 38,140 Total Expenditures $ 16,040,698 $ 16,649,637 $ 16,527,619 $ 17,657,190 $ 19,827,863 $ 20,373,965 $ 26,871,137 $ 29,059,611 $ 32,462,185 $ 35,340,195 Excess (Deficiency) of Revenues Over (Under) Expenditures $ 499,706 $ 1,725,266 $ 1,944,413 $ 1,245,095 $ (1,476,359) $ 566,039 $ (3,836,689) $ (566,341) $ (737,557) $ (7,351,869) Other Financing Sources (Uses)
Transfers In $ 972,122 $ 2,001,503 $ 913,544 $ 888,325 $ 1,418,278 $ 1,051,128 $ 1,080,404 $ 2,466,100 $ 3,481,115 $ 2,147,102 Transfers Out (248,122) (602,830) (261,387) (164,325) (694,278) (412,369) (435,398) (2,288,765) (3,723,757) (978,333) Refunding debt issued
Refunding debt issuance costs
Subscriptions 106,550Leases 1,123,513
Total Other Financing Sources (Uses) $ 724,000 $ 1,398,673 $ 652,157 $ 724,000 $ 724,000 $ 638,759 $ 645,006 $ 177,335 $ (242,642) $ 2,398,832 Extraordinary gain/(loss)/Special Items 2 $ 8,801,033 5 Net Change in Fund Balance $ 1,223,706 $ 3,123,939 $ 11,397,603 $ 1,969,095 $ (752,359) $ 1,204,798 $ (3,191,683) $ (389,006) $ (980,199) $ (4,953,037) Fund Balance, Beginning of Year, as previously reported $ 11,848,926 $ 13,056,344 $ 16,180,283 $ 27,577,886 $ 29,546,981 $ 28,794,622 $ 29,999,420 $ 26,807,737 $ 26,418,731 $ 22,916,291 Restatements 3 $ (16,288) 4 $ (659,847)
Fund Balance, Beginning of Year, as restated $ 11,832,638 $ 13,056,344 $ 16,180,283 $ 27,577,886 $ 29,546,981 $ 28,794,622 $ 29,999,420 $ 26,807,737 $ 26,418,731 $ 22,256,444 Fund Balance, End of Year $ 13,056,344 $ 16,180,283 $ 27,577,886 $ 29,546,981 $ 28,794,622 $ 29,999,420 $ 26,807,737 $ 26,418,731 $ 25,438,532 $ 17,303,407 *Amounts reported prior to 2023 have not been restated.

Source: City of Banning Finance Department
4 Fiscal Year 2014 restatement of ($16,288), Beginning fund balance previously reported $11,848,926, restated Fund Balance $11,832,638 due to properly recognize unearned Supplemental Law Enforcement revenue as unearned revenues, which was previously recorded as revenue without a corresponding expenditure/expense (Note 16) 5 Special item Fiscal Year 2016 ‐ Pursuant to Health and Safety Code (the "HSC") § 34178 ( c ), the City of Banning came to an agreement with the Successor Agency to the dissolved community redevelopment agency of the City of Banning on January 26, 2016, to transfer excess bond proceeds to the city from the Successor Agency. This transfer of $8,801,033 included assets and liabilities related to the unspent bond proceeds of the 2003 Tax Allocation Bonds and the 2007 Tax Allocation Bonds (Note 18) 156
1298

CITY OF BANNING
Table 5 ‐ Electric by Type of Customer (Revenues and Demand) Last Ten Fiscal YearsElectric Fund 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Number of Customers
Residential 10,768 10,843 10,974 10,954 10,989 10,847 11,122 11,311 11,670 11,963Commercial 1,000 1,003 1,012 1,022 1,027 1,044 1,091 1,091 1,107 1,125Industrial 5 6 6 6 6 6 6 6 6 65 Other 121 123 120 120 118 119 120 120 120 123
Total Number of Customers 11,894 11,975 12,112 12,102 12,140 12,016 12,339 12,528 12,903 13,276Mega‐Watt Hour Sales(1) Residential 66,352 67,692 66,768 72,585 70,204 69,128 69,908 76,089 76,899 81,813Commercial 49,415 50,269 48,334 48,720 48,170 45,944 45,117 42,179 48,070 35,678Industrial 13,379 11,638 10,527 10,939 10,722 11,375 12,296 11,213 10,967 29,488Other 9,780 15,396 14,321 11,485 11,810 11,592 10,529 10,321 12,306 4,422 Total Mega‐Watt Hour Sales 138,926 144,995 139,950 143,729 140,906 138,039 137,850 139,802 148,242 151,401 Revenues from Sales(1)
Residential 13,151,115 13,266,022 13,275,934 14,714,907 13,775,727 13,711,007 12,848,125 13,991,966 13,744,461 15,374,209Commercial 10,624,022 10,613,239 10,372,350 10,655,013 10,262,343 9,726,219 9,571,183 8,919,933 10,036,854 6,612,678 Industrial 2,131,714 1,843,979 1,716,528 1,717,027 1,542,367 1,772,997 1,893,843 1,701,200 1,618,564 5,087,121 Other 1,296,415 2,082,082 1,951,446 1,591,987 1,589,801 1,505,272 1,410,311 1,402,497 1,690,771 647,385 Total Revenue from Sales $ 27,203,266 $ 27,805,322 $ 27,316,258 $ 28,678,934 $ 27,170,238 $ 26,715,495 $ 25,723,462 $ 26,015,596 $ 27,090,650 $ 27,721,393 Peak Demand (MW) 40.5 42.4 44.5 46.3 49.1 49.0 44.1 51.2 49.6 52.7 (1) Metered Sales
Source: City of Banning Finance Department & Electric Utility Fiscal Year
157
1299

CITY OF BANNING
Table 6 ‐ Electricity RatesLast Ten Fiscal YearsElectric Fund 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Average rate in Dollars per Kilowatt Hour
Residential 0.1982 0.1960 0.1988 0.2027 0.1962 0.1983 0.1983 0.1839 0.1787 0.1879 Commercial 0.2150 0.2111 0.2146 0.2187 0.2130 0.2117 0.2117 0.2115 0.2088 0.1853Industrial 0.1593 0.1584 0.1631 0.1570 0.1438 0.1559 0.1559 0.1517 0.1476 0.1725 Other 0.1326 0.1301 0.1363 0.1386 0.1346 0.1299 0.1299 0.1359 0.1374 0.1464 Source: City of Banning Electric Utility
Fiscal Year
158
1300

CITY OF BANNING
Table 7 ‐ Ten Largest Electric CustomersCurrent Year and Ten Years Ago Update with 2021 Update with 2012Electric Fund Customer Customer type
% of Retail
Sales Sales Consumption (kWh) Rank % of Retail Sales Sales Consumption (kWh) Rank City of Banning Government 5.52% 1,689,006 9,735,835 1 6.99% 1,684,987 10,598,645 1 Smith Correctional Facilities Government 2.65% 809,619 5,235,692 2 4.51% 1,086,902 6,463,048 2 San Gorgonio Hospital Hospital 2.66% 812,547 4,714,745 3 2.13% 513,809 4,599,487 4 Banning Unified School District Government 2.35% 718,905 3,640,887 4 3.25% 784,780 4,126,842 3Robertson's Ready Mix Commercial 1.59% 487,093 2,157,071 5 1.52% 366,065 1,934,370 6 Sun Lakes Country Club HOA Commercial 1.44% 440,985 2,146,211 6 2.11% 507,774 2,297,311 5Albertsons Commercial 0.76% 231,038 1,667,623 7 1.30% 314,022 1,791,360 7 Sunrise Mobile Home Park Residential 0.63% 191,559 966,080 8 0.64% 155,060 920,000 10 Twin View Mobile Home Park Residential 0.43% 130,989 613,600 9 0.70% 169,800 974,878 8 Frontier California Commercial 0.39% 120,040 849,244 10 0.68% 163,217 895,440 9 Source: City of Banning Utility Billing Department
Fiscal Year 2023 Fiscal Year 2014
159
1301

CITY OF BANNING
Table 8 ‐ Water by Type of Customer (Revenues and Consumption) Last Ten Fiscal YearsWater Fund 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Number of Customers
Residential 9,727 9,730 9,793 9,739 9,867 9,732 9,796 9,987 10,395 10,736Commercial 715 711 716 710 730 725 660 823 705 650Industrial 10 10 10 10 9 10 90 118 12 30 Public 47 47 46 47 44 41 34 36 37 38
Irrigation 9 9 10 10 8 10 9 8 22 126
Total Number of Customers 10,508 10,507 10,575 10,516 10,658 10,518 10,589 10,972 11,171 11,580Consumption Sales Residential 1,953,004 1,739,303 1,365,536 1,601,778 1,707,704 1,516,281 1,639,019 1,845,893 1,834,436 1,675,154 Commercial 936,423 894,408 689,879 792,531 790,882 841,727 847,685 984,318 978,167 636,134 Industrial 48,233 43,681 39,596 43,328 44,476 42,592 41,222 113,290 153,106 85,965 Public 44,664 30,760 22,152 26,695 27,727 20,158 11,349 9,647 11,860 25,453 Irrigation 443,188 399,781 285,798 407,890 372,531 300,097 390,106 357,127 424,309 459,865 Total Consumption Sales $ 3,425,512 $ 3,107,933 $ 2,402,961 $ 2,872,222 $ 2,943,320 $ 2,720,855 $ 2,929,381 $ 3,310,275 $ 3,401,878 $ 2,882,571 Revenues from Sales(1)
Residential 6,440,803 6,105,172 5,248,775 5,799,336 6,066,320 5,731,331 6,254,795 7,032,581 7,386,411 7,524,923 Commercial 2,618,402 2,752,023 2,206,600 2,466,697 2,482,100 2,688,529 2,795,592 3,114,179 3,353,766 2,535,278 Industrial 96,816 90,751 83,109 90,057 92,809 91,131 91,298 193,813 377,691 0 Public 25,905 17,841 12,848 15,483 16,082 11,959 7,019 6,072 7,688 16,565 Irrigation 1,054,230 976,946 718,469 998,708 915,149 735,148 1,011,087 935,774 1,172,316 1,499,478 Total Revenue from Sales $ 10,236,157 $ 9,942,734 $ 8,269,801 $ 9,370,281 $ 9,572,460 $ 9,258,098 $ 10,159,791 $ 11,282,419 $ 12,297,872 $ 11,576,244 (1) Metered Sales
Source: City of Banning Finance Department & Water Department Fiscal Year
160
1302

CITY OF BANNING
Table 9 ‐ Water RatesLast Ten Fiscal YearsWater Fund 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 RatesMonthly Water Charges
Meter size
5/8 inch 20.94$ 20.94$ 20.94$ 20.94$ 20.94$ 21.57$ 22.22$ 22.88$ 23.57$ 25.74$ 3/4 inch 20.94$ 20.94$ 20.94$ 20.94$ 20.94$ 21.57$ 22.22$ 22.88$ 23.57$ 25.74$ 1 inch 31.75$ 31.75$ $ 31.75 31.75$ 31.75$ 32.70$ 33.68$ 34.69$ 35.73$ 38.36$ 1 1/2 inch 58.74$ 58.74$ 58.74$ 58.74$ 58.74$ 60.50$ 62.32$ 64.19$ 66.11$ 69.90$ 2 inch 91.14$ 91.14$ 91.14$ 91.14$ 91.14$ 93.87$ 96.69$ 99.59$ 102.58$ 107.75$ 3 inch 166.77$ 166.77$ 166.77$ $ 166.77 166.77$ 171.77$ 176.93$ 182.23$ 187.70$ 208.68$ 4 inch 274.83$ 274.83$ 274.83$ 274.83$ 274.83$ 283.07$ 291.57$ 300.31$ 309.32$ 322.23$ 6 inch 544.79$ 544.79$ 544.79$ 544.79$ 544.79$ 561.13$ 577.97$ 595.31$ 613.17$ 637.64$ 8 inch 868.83$ 868.83$ 868.83$ 868.83$ $ 868.83 894.89$ 921.74$ 949.39$ 977.88$ 1,016.14$ Commodity Charge (per HCF)
Tier 10‐12 1.84$ 1.84$ 1.84$ 1.84$ 1.84$ 1.90$ 1.95$ 2.01$ 2.07$ 2.42$ Tier 2 13‐25 2.34$ 2.34$ 2.34$ 2.34$ 2.34$ 2.41$ 2.48$ 2.56$ 2.63$ 2.62$ Tier 3 26+ 2.64$ $ 2.64 2.64$ 2.64$ 2.64$ 2.72$ 2.80$ 2.88$ 2.97$ 3.15$ Municipal (City/Parks) 0.58$ 0.58$ 0.58$ 0.58$ 0.58$ 0.60$ 0.62$ 0.63$ 0.65$ 0.65$ Source: City of Banning Water Utility
Fiscal Year
161
1303

CITY OF BANNING
Table 10 ‐ Ten Largest Water Customers
Current Year and Ten Years Ago Update with 2021 Update with 2012 Water Fund
Customer Customer type
% of Retail
Sales Sales Consumption A/F Rank % of Retail Sales Sales Consumption A/F Rank Sun Lakes Country Club HOA Commercial 10.91% 1,291,457 966.01 1 10.88% 981,844 918.6 1 Banning Unified School District Government 3.84% 454,179 281.61 2 2.59% 234,202 246.7 2Smith Correction Facility Government 2.35% 278,493 166.66 3 2.50% 225,279 209.9 3 Banning Heights Mutual Water District Utility 1.82% 214,920 191.67 4 1.00% 90,027 111.5 5 City of Banning Government 1.31% 155,077 118.95 5 0.58% 52,308 207.0 7Robertson's Ready Mix Commercial 0.93% 109,719 192.26 6 1.09% 98,539 78.4 4 High Valley Water Utility 0.80% 94,608 70.54 7 0.61% 55,218 49.8 6 Mountain Springs Mfg Home Comm Residential 0.46% 54,850 39.46 8 0.48% 43,721 43.3 9 Peppertree Apartments Residential 0.43% 50,805 36.37 9 0.50% 44,839 39.7 8 San Gorgonio Hospital Hospital 0.41% 48,509 22.97 10 0.45% 40,942 37.8 10 Source: City of Banning Utility Billing Department
Fiscal Year 2023 Fiscal Year 2014
162
1304

CITY OF BANNING
Table 11 ‐ Wastewater by Type of Customer (Revenues)Last Ten Fiscal YearsWastewater Fund 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Number of Customers
Residential/Commercial 10,695 10,678 10,756 10,698 10,702 10,701 10,815 11,151 11,679 11,720 Total Number of Customers 10,695 10,678 10,756 10,698 10,702 10,701 10,815 11,151 11,679 11,720 Revenues from Sales(1)
Residential/Commercial 3,086,099 3,124,358 3,142,411 3,230,542 3,339,942 3,323,385 3,480,853 3,770,460 3,685,173 4,444,619 Total Revenue from Sales $ 3,086,099 $ 3,124,358 $ 3,142,411 $ 3,230,542 $ 3,339,942 $ 3,323,385 $ 3,480,853 $ 3,770,460 $ 3,685,173 $ 4,444,619 (1) User Fees
Source: City of Banning Finance Department & Water Department Fiscal Year
163
1305

CITY OF BANNING
Table 12 ‐ Wastewater RatesLast Ten Fiscal YearsWastewater Fund 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Rates
Residential/Commercial 18.48 18.48 18.48 18.48 18.48 19.03 19.61 20.19 20.80 30.20 Tertiary Surcharge 2.00 2.00 2.00 2.00 2.00 2.06 2.12 2.19 2.25 2.32 Total Charge 20.48 20.48 20.48 20.48 20.48 21.09 21.73 22.38 23.05 32.52 Source: City of Banning Water Utility
Fiscal Year
164
1306

CITY OF BANNING
Table 13 ‐ Ten Largest Wastewater Customers 3480853 2469252Current Year and Ten Years Ago Update with 2021 Update with 2012Water Fund Customer Customer type
% of Retail
Sales Sales Rank % of Retail Sales Sales Rank
EDA Facilities Management Institutional 6.31% 232,567 1 5.50% 148,294 1 Sunrise Mobile Home Park Residential 1.40% 51,528 2 1.53% 41,215 2 Mountain Air Mobile Home Park Residential 1.09% 40,316 3 1.05% 28,398 4 Twin View Mobile Home Park Residential 1.07% 39,504 4 1.20% 32,426 3 HK Realty ‐ Windscape Village Apartments Residential 0.97% 35,708 5 1.01% 27,268 6 Banning Unified School District School 0.86% 31,649 6 1.04% 28,090 5 Peppertree Apartments Residential 0.67% 24,556 7 0.69% 18,641 7 San Gorgonio Memorial Hospital Institutional 0.54% 19,906 8 0.56% 15,182 8 Sun Lakes Country Club & HOA Commercial 0.15% 5,473 9 0.14% 3,744 9 Albertson's Grocery Store Commercial 0.10% 3,586 10 0.10% 2,752 10 Source: City of Banning Utility Billing Department
Fiscal Year 2023 Fiscal Year 2014
165
1307

CITY OF BANNING
Table 14 ‐ Assessed Value of Taxable Property by Category Last Ten Fiscal Years (in thousands of dollars)
Category 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Residential 1,231,205,686 1,361,770,501 1,456,038,822 1,529,223,488 1,616,626,647 1,703,563,175 1,795,364,039 1,879,909,686 2,005,026,310 2,316,482,807 Commercial 220,468,493 217,554,607 227,226,058 238,283,775 246,325,182 253,666,105 262,762,441 275,530,356 282,765,400 305,026,306 Industrial 51,018,407 50,397,147 42,649,123 45,657,917 51,131,650 53,034,191 54,209,548 56,428,204 56,416,962 112,831,454 Agricultural 1,269,688 27,094,871 11,670,860 13,249,219 Government Owned 41,769 ‐ ‐ 19,600 19,992 20,391 20,800 21,216 21,435 21,864 Institutional 914,450 911,496 1,304,236 897,253 1,207,192 3,446,035 2,298,468 1,843,481 2,402,733 2,016,386 Miscellaneous 6,542,754 5,617,626 5,910,533 5,491,362 5,216,069 4,147,483 5,286,116 4,824,395 4,626,592 7,167,744 Recreational 462,799 464,897 474,181 481,408 491,035 500,854 510,868 521,084 526,481 537,009 Vacant 123,636,821 12,012,997 122,043,801 122,231,237 137,478,116 145,980,871 145,446,771 114,178,565 126,894,395 157,620,570 SBE Nonunitary 71,000 71,000 71,000 71,000 71,000 56,250 56,250 56,250 56,250 ‐ Cross Reference 16,794,672 16,767,086 18,032,076 17,535,587 17,426,796 21,443,971 18,882,075 19,986,636 20,706,438 21,105,184 Unsecured 58,614,332 51,249,393 47,306,695 39,554,059 48,043,330 51,853,726 52,547,634 57,534,510 55,051,147 58,811,020 Exempt (9,621,151) (9,813,510) (10,009,717) (10,349,091) (9,894,532)         ‐ (10,092,353)                        ‐                        ‐                        ‐ Unknown 2,940,334 2,999,398 312,052 337,115
Totals 1,709,771,183 1,716,816,750 1,921,056,525 1,999,446,686 2,124,037,009 2,237,713,052 2,341,595,032 2,440,928,652 2,566,477,055 2,995,206,678 Total Direct Rate 0.14885 0.14821 0.14800 0.14786 0.14756 0.14747 0.14715 0.14723 0.14723 0.1465 Notes:Exempt values are not included in Total.

In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase prise (market value) or economic value of the property sold. The assessed valuation data shown above respresents the only data currently available with respects to the actual market value of taxable proerty and is subject to the limitations described above.

Data source: Riverside County Assessor 2013/14 ‐ 2022/23 Combined Tax Rolls Provided by HDL Coren & Cone
Fiscal Year
166
1308

CITY OF BANNING
Table 15 ‐ Property Tax RatesAll Overlapping Governments (rate per $100 of assessed value) Last Ten Fiscal YearsAgency 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Basic Levy1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Banning Unified School District 0.11284 0.10956 0.10826 0.10573 0.14473 0.14278 0.14526 0.14526 0.14588 0.14609 Beaumont Unified School District 0.09000 0.08169 0.07106 0.07193 0.07677 0.07432 0.07438 0.07431 0.07777 0.07777Mt. San Jacinto Jr College 0.00000 0.00000 0.01394 0.01320 0.01320 0.01320 0.01320 0.01320 0.01320 0.01320 San Gogonio Pass Memorial Hospital Dist 0.11896 0.11296 0.08143 0.08357 0.09052 0.08692 0.06990 0.06716 0.06281 0.06242 San Gorgonio Pass Wager Agency 0.18500 0.18500 0.18500 0.18500 0.18250 0.18250 0.17750 0.17500 0.17500 0.17500 Total Direct & Overlapping Tax2 Rates 1.50680 1.48921 1.45969 1.45943 1.50772 1.49972 1.48024 1.47493 1.47466 1.47448 City's Share of 1% Levy Per Prop 133 0.12228 0.12228 0.12228 0.12228 0.12228 0.12228 0.12228 0.12228 0.12228 0.12228 Voter Approved City Debt RateRedevelopment Rate4
Total Direct Rate5 0.14885 0.14821 0.14800 0.14786 0.14756 0.14747 0.14715 0.14723 0.14723 0.1465 Notes:1In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment sof any vote approved bonds. 2Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners.3City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known.4Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal eyar 2012/13 and years thereafter. 5Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from te former redevelopment tax rate areas. Challenges to recognized enforeceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as a general fund revenue.

Data Source: Riverside County Assessor 2013/14 ‐ 2022/23 Tax Rate TableProvided by HDL Coren & Cone Fiscal Year
167
1309

CITY OF BANNING
Table 16 ‐ Property Tax Rates
Property Tax Dollar Breakdown
ATI (Annual Tax Increment) Ratios for Tax Rate Area 001‐054.  Excluding Redevelopment Factors & Additional Debt Service Data Source: Riverside County Assessor 2022/23 Annual Tax Increment Tables Provided by HDL Coren & Cone
168
1310

CITY OF BANNING
Table 17 ‐ Use Category Summary & Roll Summary Fiscal Year 2022‐23 Use Category Summary
Category Parcels Assessed Value % Net Taxable Value %
Residential                    10,745 $         2,357,018,203 77.1% $         2,316,482,807 77.3% Commercial                          310 $            312,119,081 10.2% $            305,026,306 10.2% Industrial                            58 $            112,831,454 3.7% $            112,831,454 3.8% Agricultural                            81 $              13,249,219 0.4% $              13,249,219 0.4% Government Owned                              1 $                    583,628 0.0% $                      21,864 0.0% Institutional                            47 $              16,846,375 0.6% $                 2,016,386 0.1% Miscellaneous                            19 $                 7,167,744 0.2% $                 7,167,744 0.2% Recreational                              2 $                    537,009 0.0% $                    537,009 0.0% Vacant                      1,417 $            157,944,226 5.2% $            157,620,570 5.3% SBE Nonunitary                           ‐ $                                 ‐ 0.0% $                                 ‐ 0.0% Cross Reference                        (526) $              21,263,163 0.7% $              21,108,184 0.7% Unsecured                        (429) $              59,015,284 1.9% 58,811,020 $               2.0% Exempt                           ‐ 612 $                                  0.0% $                                 ‐ 0.0% Unknown                              3 $                    337,115 0.0% 337,115 $                     0.0% Totals 13,295                     $         3,058,912,501 $         2,995,209,678 Data Source:  Riverside County Assessor 2022/23 Combined Tax Rolls Provided by HDL Coren & Cone
Basic Property Value Table
169
1311

CITY OF BANNING
Table 17 ‐ Use Category Summary & Roll Summary Fiscal Year 2022‐23 Roll Summary
Secured Nonunitary Utilities Unsecured
Parcels                    12,683                                ‐                               429 TRAs                            17                                ‐                                 12 VALUES
Land          813,604,782                                ‐                         19,233 Improvements       2,178,580,782                                ‐                       259,278 Personal Property               4,019,315                                ‐                  27,844,213 Fixtures               3,692,338                                ‐                  28,680,400 Aircraft                           ‐                                ‐                    2,212,160 Total Value $    2,999,897,217 $                            ‐ $              56,803,124

EXEMPTIONS
Real Estate             63,315,090                                ‐                                ‐ Personal Property                  146,932                                ‐                         26,464 Fixtures                    36,537                                ‐                                ‐ Aircraft                           ‐                                ‐                       177,800 Homeowners*             34,422,362                                ‐                                ‐ Total Exemptions* $         63,498,559 $                            ‐ $                      26,464 Total Net Value $     ‐ 2,936,398,658 $                             $              56,776,660 Combined Values Total
Total Values 3,056,700,341 $
Total Exemptions $                         63,525,023
Net Total Values $                   2,993,175,318
Net Aircraft Values $                           2,034,360 Notes:  *Homeowner Exemptions are not included in Total Exemptions Totals do not include Aircraft Values or Exemptions
Data Source:  Riverside County Assessor 2022/23 Combined Tax Rolls Provided by HDL Coren & Cone
Taxable Property Values
170
1312

CITY OF BANNING
Table 18 ‐ Net Taxable Assessed Value History
Last Ten Years
Lien Year Secured Unsecured SBE Nonunitary Net Total AV %
Change
2013/14 $    1,651,085,851 $         58,614,332 $                 71,000 $     1,709,771,183 4.59% 2014/15 $    1,773,613,357 $         51,249,393 $                 71,000 $     1,824,933,750 6.74% 2015/16 $    1,873,678,830 $         47,306,695 $                 71,000 $     1,921,056,525 5.27% 2016/17 $    1,959,821,627 $         39,554,059 $                 71,000 $     1,999,446,686 4.08% 2017/18 $    2,075,922,679 $         48,043,330 $                 71,000 $     2,124,037,009 6.23% 2018/19 $    2,185,803,076 $         51,853,726 $                 56,250 $     2,237,713,052 5.35% 2019/20 $    2,288,991,148 $         52,547,634 $                 56,250 $     2,341,595,032 4.64% 2020/21 $    2,383,337,892 $         57,534,510 $                 56,250 $     2,440,928,652 4.24% 2021/22 $    2,511,369,658 $         55,051,147 $                 56,250 $     2,566,477,055 5.14% 2022/23 $    2,936,398,658 $         58,811,020 $                       ‐ $     2,995,209,678 16.71% Average % Change 8.34%
*Net AV Changes less than two percent are in purple font.  Negative Net AV percent changes are in red.

Data Source:  Riverside County Assessor 2022/23 Combined Tax Rolls Provided by HDL Coren & Cone
Taxable Property Values
171
1313

CITY OF BANNING
Table 19 ‐ Principal Property Taxpayers
Current Year and Ten Years Ago
Rank Owner Parcels Value % of Net
AV
Parcels Value % of Net
AV
Value % of Net
AV Primary Use & Primary Agency
1 LPC Banning LP 2 46,061,851 $ 1.57% $ 46,061,851 1.54% Industrial Successor Agency 2 FR Hathaway LLC 6 26,565,000 $ 0.90% $ 26,565,000 0.89% Vacant Sucessor Agency 3 MLD Banning Investment 2 22,431,093 $ 0.76% 22,431,093 $ 0.75% Commercial Banning General Fund 4 Pardee Homes 171 20,037,066 $ 0.68% 5 1,390,995 $ 2.37% 21,428,061 $ 0.72% Vacant Banning General Fund5 Marinita Sage Rancho (Pending Appeals on Parcels) 1 14,369,303 $ 0.49% 14,369,303 $ 0.48% Commercial Banning General Fund 6 Sun Sunrise Estates LLC 1 14,351,112 $ 0.49% $ 14,351,112 0.48% Residential Banning General Fund7 Sun Lakes Investment LLC 4 12,030,979 $ 0.41% $ 12,030,979 0.40% Commercial Banning General Fund8 Sun Lakes Highland LLC 1 10,608,000 $ 0.36% $ 10,608,000 0.35% Vacant Banning General Fund9 Thrifty Payless Inc 2 10,292,245 $ 0.35% 1 $ 159,740 0.27% 10,451,985 $ 0.35% Commercial Successor Agency 10 6109 W Ramsey LLC 1 $ 9,625,282 0.33% $ 9,625,282 0.32% Commercial Successor Agency Top Ten Total 191 186,371,931 $ 6.34% 6 1,550,735 $ 2.64% 187,922,666 $ 6.28% City Total $ 2,936,398,658 $ 58,811,020 $ 2,995,209,678 Top Owners using sales through 6/30/2023
Data Source: Riverside County Assessor 2022/23 Combined Tax Rolles and the SBE Non Unitary Tax Roll Provided by HDL Coren & Cone
Fiscal Year 2022/2023 Secured Unsecured Combined
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Table 19 ‐ Principal Property Taxpayers
Current Year and Ten Years Ago
Rank Owner Parcels Value % of Net
AV
Parcels Value % of Net
AV
Value % of Net
AV Primary Use & Primary Agency
1 MLD Banning Investment 2 18,951,429 $ 1.19% $ 18,951,429 1.16% Commercial Banning General Fund 2 Sun Lakes Investment 4 9,967,661 $ 0.63% 9,967,661 $ 0.61% Commercial Successor Agency 3 MG Banning 3 9,887,219 $ 0.62% 9,887,219 $ 0.60% Industrial Banning General Fund 4 Beaver Kirkmulon 1 9,166,379 $ 0.58% 9,166,379 $ 0.56% Commercial Successor Agency 5 RRM Properies Limited 19 8,940,396 $ 0.56% 1 21,451 $ 0.05% 8,961,847 $ 0.55% Miscellanous Successor Agency6 Semain Brothers Partnership 8 $ 7,663,256 0.48% $ 7,663,256 0.47% Residential Banning General Fund 7 OSI Partnership 1 4 $ 7,431,894 0.47% $ 7,431,894 0.45% Vacant Successor Agency8 Pardee Homes 26 7,413,902 $ 0.47% $ 7,413,902 0.45% Vacant Successor Agency9 Wilson Investment 2 $ 7,245,180 0.46% $ 7,245,180 0.44% Commercial Successor Agency 10 Tine Warner Entertainment 1 $ 2,122,000 0.13% 4 4,990,954 $ 10.49% $ 7,112,954 0.44% Unsecured Successor Agency Top Ten Total 70 88,789,316 $ 5.59% 5 5,012,405 $ 10.54% 93,801,721 $ 5.74% City Total $ 1,587,207,683 $ 47,576,655 $ 1,634,784,338 Top Owners using sales through 6/30/2013
Data Source: Riverside County Assessor 2012/13 Combined Tax Rolles and the SBE Non Unitary Tax Roll Provided by HDL Coren & Cone
Fiscal Year 2012/2013 Secured Unsecured Combined
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Table 20 ‐ Property Tax Levies and CollectionsLast Ten Fiscal Years Fiscal Year Total Tax Levy for Fiscal Year Amount Percentage of Levy Amount Collected in Subsequent Year Total Tax Collections Percentage of Levy 2013 1,926,973 1,810,496 93.96% 71,271.05 1,881,767 97.65% 2014 1,998,817 1,908,850 95.50% 60,908.35 1,969,758 98.55% 2015 2,157,676 2,079,042 96.36% 54,380.64 2,133,422 98.88% 2016 2,272,476 2,196,000 96.63% 48,703.86 2,244,704 98.78% 2017 2,364,118 2,364,411 100.01% 52,340.69 2,416,752 102.23% 2018 2,496,693 2,481,424 99.39% 5,462.38 2,486,886 99.61% 2019 2,602,851 2,601,581 99.95% 6,148.21 2,607,730 100.19% 2020 2,754,802 2,698,938 97.97% 4,931.37 2,703,869 98.15% 2021 2,820,588 2,722,228 96.51% ‐ 2,722,228 96.51%
2022 2,932,779 2,926,208 99.78% ‐ 2,926,208 99.78%
2023 3,302,863 3,297,166 99.83% ‐ 3,297,166 99.83%
Source: Riverside County Auditor‐Controller's Office ‐Property Tax Division and Banning Finance Department Tax Levy Based on Statement of Orignal Charge General Purpose Distribution (Secured Original Charge, Unsecured Original Charge and Homeowners Exemption) Collected within the Fiscal Year of Levy
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Table 21 ‐ Sales Tax by Major Business GroupsLast Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Major Business Group
Autos and Transportation 421,344 507,338 607,279 642,783 761,037 785,604 830,122 1,125,093 1,138,481 995,087 Building and Construction 97,873 88,266 106,345 111,590 119,694 88,340 146,626 85,005 101,542 135,077Business and Industry 64,436 57,275 51,601 76,463 58,231 224,798 105,216 111,339 153,353 182,403 Food and Drugs 202,928 217,538 225,680 227,999 225,762 259,357 249,480 313,934 373,892 376,065 Fuel and Service Stations 477,641 416,109 376,501 391,555 417,517 497,109 398,008 423,646 567,900 549,820 General Consumer Goods 205,372 130,643 114,365 226,089 275,627 274,043 254,450 359,749 360,989 388,181 Restaurants and Hotels 354,938 376,903 394,093 412,271 445,318 478,995 426,049 462,645 533,890 549,308 Transfers & Unidentified ‐                    218 ‐                    (3,036) ‐                    (1,166) (5,087) 86 193 5,078 Total Major Business Groups 1,824,532 1,794,290 1,875,864 2,085,714 2,303,186 2,607,080 2,404,864 2,881,497 3,230,240 3,181,019 Gross Sales Tax Allocations
Major Business Groups 1,824,532 1,794,290 1,875,864 2,085,714 2,303,186 2,607,080 2,404,864 2,881,497 3,230,240 3,181,018 Allocations from County Pool 197,907 191,099 221,983 247,355 299,013 400,864 369,781 576,162 547,494 526,544Allocations from State Pool 1,250 1,166 897 1,143 1,292 1,311 1,207 2,027 188 1,601 Total Gross Sales Tax Allocations 2,023,689 1,986,555 2,098,744 2,334,212 2,603,491 3,009,255 2,775,852 3,459,686 3,777,922 3,709,163 Data Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Fiscal Year
175
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Table 22 ‐ Top 25 Sales Tax ProducersCurrent Year and Ten Years Ago Business Name* Business Category Business Name* Business Category 22nd Shell Service Stations Albertsons Grocery Stores
Albertsons Grocery Store Arco AM PM Service Stations
Arco AM PM Service Stations Auto Zone Automotive Supply Stores Auto Source Used Automotive Dealers Banning Arco Service Stations AutoZone Automotive Supply Stores Banning RV Discount Centers Trailers/RVs Banning Arco Service Stations Big 5 Sporting Goods Sporting Goods/Bike Stores Banning RV Discount Centers Trailers/RV's Carl's Jr. Quick‐Serve Restaurants Big Lots Variety Store Chevron Service StationsCarls Jr Quick‐Serve Restaurants Coyne Powersports Boats/Motorcycles Chevron Service Stations Culture Cannabis Club Cannabis Related Coyne Powerports Boats/Motorcycles Diamond Hills Chevrolet Buick GMC New Motor Vehicle Dealers Del Taco Quick‐Serve Restaurants Harbor Freight Tools Building Materials Diamond Hills Auto Group Service Stations Harvest Corner Cannabis Related Highland Springs Mobil Service Stations Highland Springs Mobil Service Stations Jack In The Box Drug Stores Hobby Lobby Specialty StoresKmart Discount Dept Stores Jack in the Box Quick‐Serve Restaurants McDonalds Quick‐Serve Restaurants Marshalls Family Apparel Mobil Service Stations McDonalds Quick‐Serve Restaurants Rite Aid Drug Stores Mobil Service StationsSizzler Casual Dining Rite Aid Drug Stores Smart & Final Grocery Store Shell Service Stations
Sun Lakes Country Club Leisure/Entertainment Sizzler Casual Dining Walgreens Drug Stores Smart & Final Grocery Stores
Wausau Tile Contractors Walgreens Drug Stores
Western Hydro Contractors Western Hydro ContractorsPercent of Fiscal Year Total Paid by Top 25 Accounts = 68.92% Percent of Fiscal Year Total Paid by Top 25 Accounts = 68.66% Period: January 2013 Thru December 2013 Period: January 2022 Thru December 2022 *Firms listed AlphabeticallyData Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies For Calendar Year For Calendar Year
2013 2022
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Table 23 ‐ Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal
Year
Operating
Revenues
Operating
Expenses
Net Revenue
Available for Debt
Service
Principal Interest Total Coverage
2014 30,421,655 25,121,732 5,299,923 880,000 1,787,638 2,667,638 1.99 2015 29,671,254 24,687,062 4,984,192 935,000 1,737,038 2,672,038 1.87 2016 30,087,832 26,197,793 3,890,039 1,360,000 1,062,224 2,422,224 1.61 2017 33,879,947 30,002,023 3,877,924 1,005,000 1,418,744 2,423,744 1.60 2018 30,807,738 29,280,864 1,526,874 1,045,000 1,378,544 2,423,544 0.63 2019 31,541,706 27,171,125 4,370,581 1,095,000 1,326,294 2,421,294 1.812020 30,202,798 27,264,082 2,938,716 1,150,000 1,271,544 2,421,544 1.212021 32,429,837 28,767,977 3,661,860 1,210,000 1,214,044 2,424,044 1.512022 31,007,497 27,004,589 4,002,908 1,275,000 1,153,544 2,428,544 1.652023 34,139,023 30,885,444 3,253,579 1,335,000 1,089,794 2,424,794 1.34 Data Source: City of Banning Finance Department, Bond Covenants and Annual Continuing Disclosure documents Notes: Pursuant to the Installment Sale Agreement, Operation and Maintenance Costs do not include debt service or similar payments on Parity Obligations, depreciation or amortization of intangibles or other bookkeeping entries of similar nature, or public benefit program expenditures.

Operating Expenses includes the City's proportionate share of SCPPA's obigations.

The 2007 Bonds were refunded by the 2015 Bonds on September 9, 2015 Debt service on the 2015 Bonds began in fiscal year 2015/16 Operating Revenue: although the City's Electric Utility maintains a Rate Stabilization Fund that had balances of $6,357,338, at June 30,2018; $6,305,770 at June 30, 2017; $6,280,510 at June 30, 2016; $6,258,242 at June 30, 2015; and $6,032,185 at June 30, 2014, the Electric Rate Stabilization Fund balances have been excluded from total gross revenues as these funds were not appropriated as revenue and had the necessary budgetary action to release fund balance be taken in Fiscal Year ending June 30, 2018, the available fund balance would have been sufficient to provide for the minimum required debt servcie coverage, same for Fiscal year 2011.

REVENUE BONDS ‐ ELECTRIC FUND
Debt Service Requirements
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CITY OF BANNING
Table 23 ‐ Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal
Year
Operating
Revenues
Operating
Expenses
Net Revenue
Available for Debt
Service
Principal Interest Total Coverage
2014 10,680,473 4,757,956 5,922,517 770,000 1,521,138 2,291,138 2.58 2015 9,764,953 5,102,614 4,662,339 805,000 1,487,625 2,292,625 2.03 2016 8,940,295 4,950,953 3,989,342 840,000 1,451,675 2,291,675 1.74 2017 9,869,852 5,383,489 4,486,363 875,000 1,416,338 2,291,338 1.96 2018 9,829,025 5,820,654 4,008,371 910,000 1,380,638 2,290,638 1.75 2019 10,225,755 5,734,560 4,491,195 945,000 1,342,947 2,287,947 1.96 2020 10,870,647 6,244,222 4,626,425 985,000 1,302,203 2,287,203 2.02 2021 12,406,180 5,929,023 6,477,157 1,020,000 939,063 1,959,063 3.312022 12,643,832 4,765,919 7,877,913 1,075,000 877,718 1,952,718 4.032023 14,426,670 7,548,317 6,878,353 1,130,000 822,146 1,952,146 3.52 Data Source: City of Banning Finance Department and Bond Covenants and Annual Continuing Disclosure documents Notes: Pursuant to the Indenture, Water Operation and Maintenance Expenses do not include debt service or similar payments on Parity Obligations, depreciation or amortization of intangibles or other bookkeeping entries of similar nature.

The 2005 Bonds were refunded by the 2015 Bonds on September 9, 2015 Debt Service on the 2015 Bonds began in Fiscal Year 2015/16 REVENUE BONDS ‐ WATER FUND
Debt Service Requirements
178
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CITY OF BANNING
Table 23 ‐ Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal
Year
Operating
Revenues
Operating
Expenses
Net Revenue
Available for Debt
Service
Principal Interest Principal Interest Total Coverage
2014 3,525,838 1,995,443 1,530,395 145,000 245,248 247,802 56,485 694,535 2.20 2015 3,531,808 1,999,208 1,532,600 155,000 239,395 254,246 50,043 698,684 2.19 2016 3,548,541 1,910,147 1,638,394 160,000 233,094 260,857 43,432 697,383 2.35 2017 3,688,410 2,045,413 1,642,997 165,000 226,430 267,639 36,650 695,719 2.36 2018 3,838,717 2,087,099 1,751,618 170,000 219,606 274,597 29,692 693,895 2.52 2019 4,126,301 2,580,758 1,545,543 180,000 212,494 281,737 22,552 696,783 2.22 2020 4,113,072 2,928,887 1,184,185 185,000 204,966 289,062 15,227 694,255 1.71 2021 3,825,768 2,768,148 1,057,620 195,000 197,128 296,578 7,711 696,417 1.52 2022 4,273,846 2,719,904 1,553,942 200,000 188,606 388,606 4.00 2023 5,222,687 3,094,340 2,128,347 210,000 179,381 389,381 5.47 Data Source: City of Banning Finance Department and Bond Covenants and Annual Continuing Disclosure documents Notes: Pursuant to the Wastewater Indenure, Wastewater Operation and Maintenance Expenses do not include debt service or similar payments or parity debt, depreciation or amortization of intangible or other bookkeeping entries of similar nature.

The 2005 Bonds were refunded by the 2019 Bonds and redeemed on November 23, 2019 Debt Service on the 2019 Bonds commences in the 2020 Bond year.

Water Resource Control Board loan paid off in Oct 2020
Revenue Bond CA Water Resource Control Board Loan
REVENUE BONDS ‐ WASTEWATER FUND
Debt Service Requirements
179
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CITY OF BANNING
Table 23 ‐ Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal
Year
Tax Increment Principal Interest Principal Interest Principal Interest Total Coverage 2014 3,184,770 460,000 497,995 695,000 1,163,716 2,816,711 1.13 2015 1,648,964 480,000 478,895 710,000 1,137,391 2,806,286 0.59 2016 3,541,209 500,000 458,370 750,000 1,111,466 2,819,836 1.26 2017 3,759,131 520,000 436,370 780,000 1,083,829 2,820,199 1.33 2018 2,722,510 1,075,000 1,005,364 2,080,364 1.31
2019 2,506,684 1,205,000 990,023 2,195,023 1.14
2020 2,719,347 1,220,000 971,404 2,191,404 1.24
2021 2,411,372 1,240,000 949,712 2,189,712 1.10
2022 2,261,732 1,265,000 924,838 2,189,838 1.03
2023 2,465,551 1,290,000 896,718 2,186,718 1.13
Data Source: City of Banning Finance Department and Bond Covenants and Financial Statements Notes: Fiscal Year 2014 ‐Note 15 Sucessor Agency Trust for Assets of Former Redevelopment Agency (e) 2003 Tax Allocation Bonds (f) 2007 Tax Allocation Bonds (i) Pledged Revenue Fiscal Year 2015 ‐Note 16 Sucessor Agency Trust for Assets of Former Redevelopment Agency (e) 2003 Tax Allocation Bonds (f) 2007 Tax Allocation Bonds (i) Pledged Revenue Fiscal Year 2016 ‐Note 16 Sucessor Agency Trust for Assets of Former Redevelopment Agency (e) 2003 Tax Allocation Bonds (f) 2007 Tax Allocation Bonds (i) Pledged Revenue Fiscal Year 2017 ‐Note 16 Sucessor Agency Trust for Assets of Former Redevelopment Agency (e) 2003 Tax Allocation Bonds (f) 2007 Tax Allocation Bonds (i) Pledged Revenue September 22,2016 Successor Agency of the Dissolved Redevelopment Agency of the City of Banning issued Tax Allocation Refunding Bonds, Series 2016 (Taxable) As result the refunding bonds defeased the liability of the 2003 and 2007 Taxable Allocation Bonds Fiscal Year 2018 ‐Note 16 Sucessor Agency Trust for Assets of Former Redevelopment Agency (d) 2016 Tax Allocation Refunding Bonds, Pledged Revenue Fiscal Year 2019 ‐Note 17 Sucessor Agency Trust for Assets of Former Redevelopment Agency (e) 2016 Tax Allocation Refunding Bonds, (g) Pledged RevenueFiscal Year 2020 ‐Note 17 Sucessor Agency Trust for Assets of Former Redevelopment Agency (g) 2016 Tax Allocation Refunding Bonds, (g) Pledged Revenue Fiscal Year 2021 ‐Note 17 Sucessor Agency Trust for Assets of Former Redevelopment Agency (g) 2016 Tax Allocation Refunding Bonds, (g) Pledged Revenue Fiscal Year 2022 ‐Note 17 Sucessor Agency Trust for Assets of Former Redevelopment Agency (g) 2016 Tax Allocation Refunding Bonds, (g) Pledged Revenue Fiscal Year 2023 ‐Note 17 Sucessor Agency Trust for Assets of Former Redevelopment Agency (g) 2016 Tax Allocation Refunding Bonds, (g) Pledged Revenue 2003 Tax Allocation Bonds 2007 Tax Allocation Bonds 2016 Refunding Tax Allocation Bond Debt Service Requirements
TAX ALLOCATION BONDS ‐ SUCCESSOR AGENCY
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Table 24 ‐ Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal
Year
2003 Tax
Allocation Bonds
2007 Tax
Allocation Bonds Loans Payable 2011 Refunding Lease Glick Note Payable Ford Motor Credit Vehicle Lease Total Governmental Activities 2011 11,425,000 29,355,000 1,133,602 3,455,000 45,368,602 2012 ‐ 1 ‐ 1 ‐ 1 3,147,156 3,147,156
2013                           ‐ ‐                           ‐ 2,826,192 2,826,192 2014                           ‐ ‐                           ‐ 2,493,082 2,493,0822015                           ‐ ‐                           ‐ 2,147,361 2,147,3612016                           ‐ ‐                           ‐ 1,788,555 125,007 1,913,5622017 ‐ ‐ ‐ 1,416,167 ‐ 4 151,569 1,567,736 2018                           ‐ ‐                           ‐ 1,029,684 ‐ 77,723 1,107,407 2019                           ‐ ‐                           ‐                   ‐ 628,572                           ‐ 628,572 2020                           ‐ ‐                           ‐ 212,726 ‐ ‐ 212,726 2021                           ‐ ‐                           ‐                           ‐                           ‐                           ‐                              ‐ 2022                           ‐ ‐                           ‐                           ‐                           ‐                           ‐                              ‐ 2023                           ‐ ‐                           ‐                           ‐                           ‐                           ‐                              ‐ Fiscal
Year
Loans Payable 2005 Water Revenue Bond 2005 Wastewater Revenue Bond 2007 Electric Revenue Bond 2015 Electric Refunding Bond 2015 Water Revenue Bond 2019 Wastewater Refunding Bond Total Business‐ Type Activities 2012 2,414,042 31,480,000 5,700,000 36,935,000 76,529,042 2013 2,172,519 30,740,000 5,560,000 36,085,000 74,557,5192014 1,924,715 29,970,000 5,415,000 35,205,000 72,514,7152015 1,670,469 29,165,000 5,260,000 34,270,000 70,365,4692016 1,409,613 ‐ 2               ‐ 5,100,000 3 30,395,000 24,420,000 61,324,613 2017 1,141,974 ‐ 4,935,000 ‐ 29,390,000 23,965,000 59,431,974 2018 867,377 ‐ 4,765,000 ‐ 28,345,000 23,235,000 57,212,3772019 585,640 ‐ 4,585,000 ‐ 27,250,000 22,490,011 54,910,651 2020 296,578 ‐ ‐ 5 ‐ 26,100,000 21,520,011 4,020,000 51,936,589 2021 ‐ 6 ‐ ‐ ‐ 24,890,000 20,500,010 3,800,000 49,190,010 2022 ‐ ‐ ‐ ‐ 23,615,000 19,425,011 3,580,000 46,620,011 2023 ‐ ‐ ‐ ‐ 22,280,000 18,295,011 3,355,000 43,930,011 Governmental Activities
Business Type Activiites
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CITY OF BANNING
Table 24 ‐ Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year Governmental Activities Business‐Type Activities Total Primary Governemnt Total Personal Income Percentage of Personal Income Population Per Capita 2012 3,147,156 76,529,042 79,676,198 610,207,000 13.06% 29,965 2,659 2013 2,826,192 74,557,519 77,383,711 622,075,000 12.44% 30,170 2,565 2014 2,493,082 72,514,715 75,007,797 609,714,000 12.30% 30,325 2,473 2015 2,147,361 70,365,469 72,512,830 618,818,000 11.72% 30,306 2,393 2016 1,913,562 61,324,613 63,238,175 613,060,000 10.32% 30,834 2,0512017 1,567,736 59,431,974 60,999,710 609,946,000 10.00% 31,068 1,9632018 1,107,407 57,212,377 58,319,784 598,427,000 9.75% 31,282 1,864 2019 628,572 54,910,651 55,539,223 598,336,000 9.28% 31,044 1,789 2020 212,726 51,936,589 52,149,315 631,804,000 8.25% 31,125 1,675 2021 ‐ 7 49,190,010 49,190,010 711,049,000 6.92% 32,233 1,526 2022 ‐ 46,620,011 46,620,011 762,033,000 6.12% 30,877 1,510 2023 ‐ 43,930,011 43,930,011 739,762,000 5.94% 31,250 1,406 Notes: Details regarding the City's outstanding debt can be found in Note 8 of the financial statements (Note 9 in fiscal year 2011).

Personal income and population data provided by HdL Coren & Cone and can be found on Table 27 Demographic and Economic Statistics 1 Transferred to Successor Agency, 2003 Tax Allocation Bonds $11,000,000, 207 Tax Allocation Bonds $28,850,000 and Loans Payable $1,116,339 in Fiscal Year 20122 2005 Water Revenue Bonds were refunded by the issuance of the 2015 Water Enterprise Revenue Bonds, Refunding and Improvement Projects on August 19, 20153 2007 Electric Revenue Bond Refunding Bonds was refunded with the issuance of the 2015 Electric Revenue Refunding Bonds on August 19, 2015.4 Loan Payable Glick is a liability that was transferred from the Sucessor Agency and became an obligation to the City during fiscal year 2017. The City paid off the balance of the note during the fiscal year. At June 30, 2017 the outstanding balance was zero. 5 2005 Wastewater Revenue Bonds were refunded with the issuance of the 2019 Wastewater Enterprise Revenue Bonds on October 24, 20196 2011 Refunding lease agreement was paid off in fiscal year 20217 Loan Payable ‐ California Water Resource Control Board was paid off in fiscal year 2021 182
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CITY OF BANNING
Table 25 ‐ Direct and Overlapping Governmental Activities Debt As of June 30, 2023
2022‐2023 Assessed Value $2,995,077,432
Total Debt 6/30/2023 Percentage
Applicable to Banning
(1)
City's Share of Debt
6/30/2023
Overlapping Tax and Assessment Debt:

Mount San Jacinto Community College District $             247,850,000 2.514% 6,230,949 $ Banning Unified School District $               55,637,555 72.276% 40,212,599 $ Beaumont Unified School District $             113,432,731 4.392% $             4,981,966 San Goronio Memorial Healthcare District $             108,699,780 23.553% 25,602,059 $ City of Banning 1915 Act Bonds $                 1,675,000 100.000% $             1,675,000 California Statewide Community Development Authority 1915 Act Bonds $               32,660,000 100.000% 32,660,000 $ Total Overlapping Tax and Assessment Debt $        111,362,574 Direct and Overlapping General Fund Debt
Riverside County General Fund Obligations $             686,776,829 0.827% 5,679,644 $ Riverside County Pension Obligations $             748,540,000 0.827% 6,190,426 $ Banning Unified School District Certificates of Participation $                 8,376,000 72.276% $             6,053,838 Beaumont Unified School District Certificates of Participation $                 5,351,389 4.392% $                235,033 City of Banning Certificates of Participation $                             ‐ 100.000% $          18,158,941 Overlapping Tax Increment Debt (Successor Agency) $               24,960,000 100.000% $          24,960,000 Total Direct Debt $                         ‐
Total Overlapping Debt $        154,481,514
Combined Debt $        154,481,514 (2)
Notes:

Overlapping governments are those that coincide, at least in art, with the geographical boundaries of the city. (1) The percentage of overlapping debt applicable to the City is estimated by using taxable assessed property values.  Applicable percentages were estimated by determining the portion of the overlapping district's assessed 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, eterprise revenue, mortgage revenue and tax allocation bonds and nonbonded capital lease obligations Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2022‐23 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 3.72%
Total Direct Debt ($0) 0.00%
Combined Total Debt 5.16%
Ratios to Redevelopmnet Successor Agency Incremental Valuation ($676,168,041):

Total Overlapping Tax Incremental Debt 3.69%
KD:($500)
Data Source
California Municipal Statistics
City Finance Department
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CITY OF BANNING
Table 26 ‐ Legal Debt Margin InformationLast Ten Fiscal Years (dollars in thousands) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Assessed valuation 1,709,771,183 1,824,933,750 1,921,056,525 1,999,446,686 2,124,037,009 2,237,713,052 2,341,595,032 2,440,653,328 2,566,106,499 2,995,077,432 Debt Limit percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Debt Limit 256,465,677 273,740,063 288,158,479 299,917,003 318,605,551 335,656,958 351,239,255 366,097,999 384,915,975 449,261,615 Total Net Debt Applicable to the Limit General Obigation Bonds Legal Debt Margin 256,465,677 273,740,063 288,158,479 299,917,003 318,605,551 335,656,958 351,239,255 366,097,999 384,915,975 449,261,615 Total Debt Applicable to the limit as a Percentage of Debit Limit 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Note:Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City.

Fiscal Year
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CITY OF BANNING
Table 27 ‐ Demographics and Economic Statistics
Last Ten Fiscal Years
Calendar
Year Population Personal Income (In Thousands) Per Capita Personal Income Unemployment Rate Median Age % of Pop 25+ with High School Degree % of Pop 25+ with Bachelor's Degree 2013 30,325 $ 609,714 $ 20,106 9.6% 47.0 79.9% 16.6%
2014 30,306 $ 618,818 $ 20,419 7.3% 46.4 80.3% 15.8%
2015 30,834 $ 613,060 $ 19,882 5.9% 45.1 80.5% 15.8%
2016 31,068 $ 609,946 $ 19,632 5.3% 42.6 80.0% 15.1%
2017 31,282 $ 598,427 $ 19,130 6.6% 39.9 79.2% 15.3%
2018 31,044 $ 598,336 $ 19,273 5.0% 40.0 79.8% 15.4%
2019 31,125 $ 631,804 $ 20,298 5.0% 39.6 79.0% 15.5%
2020 32,233 $ 711,049 $ 22,059 12.2% 41.5 79.1% 15.3%
2021 30,877 $ 762,033 $ 24,679 9.5% 43.6 80.7% 16.4%
2022 31,250 $ 739,762 $ 23,672 5.1% 43.1 81.2% 16.1%
Notes and Data Sources:Provided by HdL, Coren & Cone
Population: California State Department of Finance. Unemployment Data: California Employment Development Department 2000‐2009 Income, Age, and Education Data: ESRI ‐ Demographic Esitmates are based on the last available Census. Projections are developed by incorporating all of the prior census data released to date. Demographic Data is totaled from Census Block Groups that overlap the City's boundaries2010 and later ‐ Income, Age and Education Data ‐ US Census Bureau, most recent American Community Survey 185
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Table 28 ‐ Top 20 Principal Employers
Current Fiscal Year
Employer Business Description Number of Employee
Range
Stagecoach Motor Inn Hotels (Except Casino Hotels) & Motels 500 to 999 Cherry Valley Health Care Nursing Care Facilities (Skilled Nursing Fclts) 100 to 249 Green Thumb Produce Other Post‐Harvest Crop Activities 100 to 249 Sun Lakes Country Club Other Similar Organizations 100 to 249 Banning,  City Legislative Bodies 100 to 249
Banning High School Elementary & Secondary Schools 100 to 249 Help Center Other Social Advocacy Organizations 100 to 249 Morongo Indian Health Freestanding Ambulatory Surgical & Emergency Ctrs 100 to 249 Riverside County Public Social Legislative Bodies 100 to 249 Silent Valley Club Inc Rv (Recreational Vehicle) Parks & Campgrounds 100 to 249 Banning Healthcare Nursing Care Facilities (Skilled Nursing Fclts) 50 to 99 Banning Police Dept Police Protection 50 to 99
Poison Spyder Other Motor Vehicle Parts Manufacturing 50 to 99 Albertsons Supermarkets/Other Grocery (Exc Convenience) Strs 50 to 99 Coombs Middle School Elementary & Secondary Schools 50 to 99 Central Elementary School Elementary & Secondary Schools 50 to 99 Nicolet Middle School Elementary & Secondary Schools 50 to 99 Beaver Medical Group All Other Misc Ambulatory Health Care Services 50 to 99 Banning Alternative Education Elementary & Secondary Schools 50 to 99 Hoffer Elementary School Elementary & Secondary Schools 50 to 99 Data Source:

State of California, Employment Development Department, Labor Market Informaion Division, Local Information Services Group.

Data Axel ‐  Unable to disclose specific identifiable information ‐ confidential 186
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CITY OF BANNING
Table 29 ‐ Authorized Full‐time Equivalent City Employees by Function Last Ten Fiscal YearsDepartment/Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023City Manager Administration 1.37 1.57 1.57 1.09 1.09 0.85 0.85 2.00 2.00 8.00 Economic Development1 1.00 1.00 1.00 1.24 1.24 1.00 1.00 1.00 1.00 1.00 City Clerk2 1.83 1.83 1.83 1.70 1.70 1.50 1.50 2.00 2.00 1.00 Administrative Services
Fiscal Services 5.45 5.45 6.45 5.45 5.45 6.35 6.85 9.50 9.50 9.00 Purchasing 1.00 1.00 2.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 Human Resources 1.15 0.95 1.06 1.07 1.07 1.20 1.20 1.60 1.60 2.00 Risk Management 1.56 1.56 1.90 1.82 1.82 1.65 1.65 1.40 1.40 ‐ Information Technology 2.40 2.40 2.40 3.45 3.45 2.00 2.00 2.00 2.00 4.00 Media ‐                ‐                ‐                ‐                1.00 1.00 1.00 1.00 1.00 1.00 Utility Billing 9.63 9.63 9.63 11.31 11.31 10.20 10.70 9.00 9.00 8.00 Meter Reading 4.20 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 4.00 Public Works
Engineering 0.92 0.92 0.92 0.92 0.92 1.11 1.11 1.31 1.31 3.75 Building Maintenance 1.28 1.28 1.78 1.31 1.31 1.48 1.58 1.63 1.63 2.00 Streets 4.85 4.85 4.85 5.05 5.05 6.05 6.40 6.25 6.25 4.50 Landscape Maintenance District 0.28 0.28 0.50
Airport 1.55 1.20 0.30 0.80 0.80 0.83 0.88 0.98 0.98 0.50 Transit
Fixed Route 10.77 12.67 13.30 13.13 13.13 13.65 15.65 13.43 13.43 10.50 Dial‐A‐Ride 2.04 2.04 1.54 1.39 1.39 1.00 1.00 0.63 0.63 1.00 Water 15.17 15.20 15.25 15.59 16.59 16.70 16.95 16.49 16.49 20.00 Wastewater 5.32 5.26 5.31 5.52 5.52 6.09 6.34 5.86 5.86 2.00Refuse 0.69 0.69 0.69 1.14 1.14 0.82 1.82 1.80 1.80 2.00 Fleet Maintenance 3.50 3.50 3.50 4.05 4.05 4.42 4.42 4.73 4.73 5.00 Electric
Operations 19.65 23.73 24.73 25.20 25.20 28.18 31.18 29.63 29.63 32.00 Generation 0.85 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Public Benefits3 2.00 2.00 2.00 2.00               ‐                2.00 ‐                ‐                ‐ Fiscal Year
187
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Table 29 ‐ Authorized Full‐time Equivalent City Employees by Function Last Ten Fiscal YearsDepartment/Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Fiscal Year
Public Safety
Sworn Police officers & Non Sworn Personnel 31.75 31.90 34.90 35.90 36.90 37.90 37.90 34.90 34.90 39.00 Dispatch 8.10 8.10 8.10 8.10 9.10 9.10 9.10 8.10 8.10 7.00 Fire4 1.00               ‐                1.00 ‐                ‐                ‐                ‐                ‐                ‐                ‐ Code Enforcement 2.00 1.45 2.00 2.00 2.00 2.00 4.00 3.00 3.00 2.00 Planning 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.00 Building Safety 0.60 1.60 1.60 1.60 1.60 1.60 2.60 1.60 1.60 3.00 Parks & Recreation
Parks 4.28 4.28 4.28 4.30 4.30 2.25 2.70 2.70 2.70 3.00 Recreation 3.07 3.28 5.33 6.05 6.05 3.32 4.17 6.18 6.18 13.00 Aquatics 2.09 2.11 2.11 2.06 2.06 3.32 3.32 2.76 2.76 11.50 Day Care5 ‐                ‐                ‐                ‐                ‐                0.61 0.61 ‐                ‐                ‐ Senior Center 0.58 0.58 0.58 0.75 0.75 1.57 1.57 1.17 1.17 0.50Total Full‐time Equivalient Employees 154.05 161.43 169.31 174.39 179.39 179.15 191.45 184.33 184.33 206.75 Notes:
1 Economic Development contains FTE of Community Redevelopment Admin/Successor Housing Agency for Fiscal years 2011‐2016 2 City Clerk (Elected) and other Elected officials are not included in any figures 3 Starting in Fiscal year 2019 these employees were moved to Electric Operations 4 Fire Services are contracted through Riverside County/Cal Fire 5 Day Care services allocation of personnel were added to Parks & Recreation in Fiscal Year 2019 188
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Table 30 ‐ Operations Indicators by Function/ProgramLast Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Police
Physical Arrests 1,876 1,622 1,759 1,876 1,720 1,139 1,189 1,091 1,210 1,008 Parking violations ‐                 66 311 399 456 1,007 343 191 178 225 Traffic violations 257 161 230 249 455 189 262 172 162 162 Calls for service 37,910 39,307 40,390 42,322 37,817 34,603 36,457 37,316 37,980 35,362 Fire
Emergency Response 1 4,179 4,559 4848 4800 4549 4680 4,686 4,976 4,950 5,025 Fire Extinguished 1 148 127 126 158 136 129 188 214 130 125 Fire Inspections 131 92 136 121 107 115 611 691 691 592 Public Works
Street resurfacing (miles) 2.10 ‐               0.75 3.55 0.50 1.47 6.07 3.21 3.21 1.25 Potholes repaired (square feet per year) 96 99 66 122 24 100 107 120 120 83 Traffic signs repaired/replaced 92 160 123 75 51 130 81 294 275 68 Parks & Recreation
Number of facility rentals 2 314 415 397 758 1,178 1,349 Number of recreation classes 2 135 217 254 94 343 459
Building & Safety
Building Permits issues 713 742 864 922 989 934 3,262 2,009 2,009 2,324 Building Inspections 3 ‐                 233 200 181 264 420 6,020 8,500 8,500 6,973 Code Enforcement
Citations issued 4 ‐                 7 64 48 27 26 38 11 12 15 Calls for Service 4 ‐                 136 984 1,070 1,305 1,493 1,832 1,974 1,264 1,084 Fiscal Year
189
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Table 30 ‐ Operations Indicators by Function/ProgramLast Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Fiscal Year
Transit
Total route miles 499,407 776,698 785,685 808,420 401,790 455,214 147,813 444,954 467,639 493,879 Passengers 144,978 137,594 133,185 126,793 116,748 112,960 30,148 87,624 70,721 90,349 Water
New Connections 5 ‐                 ‐               1.00 1.00 ‐                 ‐                 1.00 366.00 250.00 89.00 Number of service connections 6 10,615 10,650 10,647 10,661 10,675 10,680 10,682 10,972 10,972 11,442 Service Breaks 93 86 45 71 75 75 80 86 86 78
Water Main Breaks 48 50 64 28 50 50 80 32 32 43
Consumption Sales (thousands of gallons) 3,425,512 3,107,933 2,402,961 2,872,222 2,943,320 2,720,855 2,929,381 3,310,275 3,401,878 2,882,571 Peak daily consumption (thousands of gallons) 12,766,000 9,779,000 11,085,000 11,201,000 11,970,000 12,202,000 14,107,000 11,282,419 12,297,872 11,576,244 Water purchased (AF) 7 608 694 1,477 1,350 500 250 250 250 250 275 Water Sold (AF) 7,867 7,134 5,517 6,593 6,756 6,246 6,724 7,599 7,599 6,617 Wastewater
Number of service connections 10,745 10,786 10,750 10,657 10,698 10,687 10,771 10,972 11,679 11,720 Average Daily swage treatment 2,005 1,970 1,940 1,978 2,016 1,995 1,955 1,945 1,945 1,923 (thousands of gallons)
Electric
Number of service connections 12,426 11,974 12,111 12,101 12,139 12,015 12,345 12,534 12,903 13,276 Average daily consumption (MWH) 74,529.50 76,178.96 74,836.32 78,572.42 74,439.01 73,193.05 70,475.24 71,275.61 74,220.96 73,250.98 Electricity purchased (MWH) 146,193 148,697 147,176 148,500 146,510 148,973 144,803 153,421 153,457 151,401 Electricity sold ‐Retail (Sales) 27,203,266 ######## 27,315,258 28,678,934 27,170,238 26,715,462 25,723,462 26,015,596 27,090,650 27,721,393 Peak Demand (MW) 40.5 42.4 44.5 46.3 49.1 49.0 44.1 51.2 50.1 52.7 Airport
Number of flights 4,668 4,631 3,287 3,071 3,049 3,126 3,423 5,959 3,654 3,249 Number of Gallons of Fuel Sold 14,150 7,395 9,353 12,691 23,545 13,902 9,954 26,956 13,318 7,618 Community Development
Planning applications completed 9 110.00 100.00 110.00 270.00 250.00 390.00 710.00 920.00 556.00 458.00 Business Licenses
Number of licenses issued 1,964 1,929 1,949 1,968 2,031 1,949 1,945 1,966 1,964 1,823 190
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Table 30 ‐ Operations Indicators by Function/ProgramLast Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Fiscal Year
Refuse
Number of Customers 8Commercial/Multi‐Family 518 506 510 510 516 512 494 520 ‐  ‐ Residential 11,022 11,070 11,266 11,317 11,280 11,280 11,340 11,356 ‐  ‐ Roll‐off Service 35 34 35 38 38 44 41 59 ‐  ‐
Tonnage Collected by Service
Commercial/Multi‐Family 6,675 6,455 6,097 12,424 7,534 8,175 7,702 6,830 ‐  ‐ Residential 14,538 15,127 16,412 15,187 15,769 16,533 17,059 19,833 ‐ ‐ Roll‐off Service 4,817 3,599 2,919 3,458 3,906 4,066 3,978 5,067 ‐  ‐ Total Tonnage Collected by Service 26,030 25,181 25,428 31,069 27,209 28,774 28,740 31,730 ‐  ‐ Tonnage Type Collected (All Services)
Trash 18,389 18,491 18,777 24,780 20,489 20,517 21,084 24,226 ‐  ‐ Recycle 3,326 2,715 2,868 4,141 3,557 3,295 2,479 3,070 ‐  ‐ Green Waste 4,316 3,975 3,782 2,052 2,967 4,742 5,010              ‐  4,529 ‐ Organics ‐                 ‐               ‐                 96 197 219 166 70 ‐  ‐ Total Tons Collected 26,030 25,181 25,428 31,069 27,209 28,774 28,740 31,895 ‐  ‐ Total Tons Diverted 7,641 6,689 6,650 6,290 6,720 8,257 7,656 7,669 ‐  ‐ Diversion % All Services 29.36% 26.57% 26.15% 20.24% 24.70% 28.69% 26.64% 24.04% 0.00% 0.00% Data Source: City Departments and Fire Statistics from Riverside County/CalFire Notes:
1 Fire Statistics provided by Riverside County Fire Department / CAL Fire2 Parks and recreation programs were not tracked until Fiscal Year 2015, no data availabe for prior years. Class count low in FY21 due to COVID‐19, but outside rentals higher for facilities3 For Building & Safety, there is no data available for tracking building inspection prior to Fiscal year 2015, FY21 increase in development and inspections with clean up of exprired permits4 Code Enforcement items were not tracked until Fiscal Year 2015, no data available for prior years, FY21 numbers low due to COVID‐19 and not issuing citations5 For New Water Connections only. This number is expected to be larger with new home developments.6 The number of Water service connections represents active accounts and will change with non‐occupied locations7 Water Purchased is the amount of imported water purchased8 Refuse was taken over by Waste Management Effective July 2021.9 Planning applications completed also includes the number of Engineering applications as they are combined in our system. 191
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Table 31 ‐ Capital Asset Statistics by Function/Program Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Police
Police Station 1 1 1 1 1 1 11 1 1
Patrol Units 1 13 11 11 11 15 18 24 24 24 24
Fire
Stations 2 1 1 1 1 1 1 1 1 1 1
Fire Engines 2 2 2 2 2 2 2 2 2 2 2
Public Works
Streets (miles) 118 118 118 118 118 118 122 125 125 125 Traffic signals 7 7 7 7 7 7 7 7 7 7
Storm catch basin 3 98 98 98 98 126 126 150 174 174 174 Parks & Recreation
Parks 7 7 7 7 7 7 7 7 7 7
Park acreage 59.23 59.23 59.23 59.23 59.23 59.23 59.23 59.23 59.23 59.23 Community Center 2 2 2 2 2 2 22 2 2
Aquatics center 1 1 1 1 1 1 11 1 1Skate Park 1 1 1 1 1 1 11 1 1 Baseball/Softball Diamonds 5 5 5 5 5 5 55 5 5
Transit
Buses 11 13 12 12 15 10 10 10 10 10
Water
Water Mains (miles) 166.19 166.19 166.19 166.19 167.56 169.05 174.18 170.25 170.25 170.25 Fire hydrants 1,424 1,425 1,425 1,428 1,437 1,455 1,539 1,555 1,555 1,555 Storage capacity (MGD) 4 19.98 19.98 19.98 19.98 19.98 19.98 19.98 19.98 19.98 19.98 Fiscal Year
192
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Table 31 ‐ Capital Asset Statistics by Function/Program Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Fiscal Year
Wastewater
Sanitary Sewers (miles) 111.67 111.67 112.20 112.20 112.20 113.96 118.00 115.89 115.89 115.89 Treatment Plant capacity (MGD) 5 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 Electric
Number of electric meters 12,426 11,974 12,111 12,101 12,139 12,015 12,339 12,528 12,528 12,528 Number of street lights 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 Substations 6 6 6 6 6 6 6 6 6 6
Substation capacity 103.25 103.25 103.25 103.25 103.25 103.25 103.25 103.25 103.25 103.25 Airprot
Runway Miles 0.985 0.985 0.985 0.985 0.985 0.985 0.985 0.985 0.985 0.985 Data Source: City Departments and Fire Statistics from Riverside County/CalFire Notes:
1 Patrol Units with lights, sirens, lightbar on top and does not include detective cars2 The City of Banning owns two fire stations but only one is operational, Station 89 at Murray Street, the other one is at Wilson Street and has been closed since 1998 when the City contracted fire services with the County. There are two fire engines/medic in which one is at Fire Station 89 and the other is shared with Fire Station 20 at the Beaumont Forest Fire Station 3 Represents the number of basins/inlets4 MGD = Millions Gallons per Day5 MGD = Millions Gallons per Day 193
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10681 Foothill Blvd., Ste. 300 | Rancho Cucamonga, CA 91730-3831 | T 909.466.4410 | F 909.466.4431 | EOE 1 Independent Accountant’s Report
To the Honorable Mayor and Members of the City Council
City of Banning, California
We have performed the procedures enumerated below, on the Appropriations Limit Calculation of the City of Banning, California (City) prepared in accordance with Article XIII-B of the California Constitution for the fiscal year ended June 30, 2023. The City’s management is responsible for the Appropriations Limit Calculation.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating the Appropriations Limit Calculation and we will report on findings based on the procedures performed. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the completed worksheets setting forth the calculations necessary to establish the City's appropriations limit and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were found as a result of this procedure.

2. We added last year’s limit to the annual adjustment amount and compared the resulting amount to the 2022-2023 appropriations limit.

Finding: No exceptions were found as a result of this procedure.

3. We compared the current year information to the worksheets described in Procedure 1 above and to information provided by the California State Department of Finance.

Finding: No exceptions were found as a result of this procedure.

4. We agreed the prior year appropriations limit to the prior year appropriations limit adopted by the City Council.

Finding: The 2021-2022 limit adopted by the City Council was $52,022,081. This limit was incorrectly calculated initially, and the revised limit for 2021-2022 is $53,634,367. 1336
2 We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the City’s Appropriations Limit Calculation for the fiscal year ended June 30, 2023. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by Article XIII-B of the California Constitution.

This report is intended solely for the information and use of City Council and management of the City and is not intended to be and should not be used by anyone other than those specified parties.

Rancho Cucamonga, California
July 31, 2024
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10681 Foothill Blvd., Ste. 300 | Rancho Cucamonga, CA 91730-3831 | T 909.466.4410 | F 909.466.4431 | EOE 1 July 31, 2024
To the Honorable Mayor and Members of the City Council
City of Banning, California
We have audited the financial statements of the governmental activities, business‐type activities, each major fund, and the aggregate remaining fund information of the City of Banning (City), as of and for the year ended June 30, 2023, and have issued our report thereon dated July 31, 2024. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards and our Compliance Audit under the Uniform Guidance As communicated in our letter dated November 13, 2023, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America and to express an opinion on whether the City complied with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City major federal programs. Our audit of the financial statements and major program compliance does not relieve you or management of its respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting.

Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

Our responsibility, as prescribed by professional standards as it relates to the audit of the City’s major federal program compliance, is to express an opinion on the compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. An audit of major program compliance includes consideration of internal control over compliance with the types of compliance requirements referred to above as a basis for designing audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, as a part of our major program compliance audit, we considered internal control over compliance for these purposes and not to provide any assurance on the effectiveness of the the City’s internal control over compliance.
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2 We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

We have provided our comments regarding internal controls during our audit in our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards dated July 31, 2024.

We have also provided our comments regarding compliance with the types of compliance requirements referred to above and internal controls over compliance during our audit in our Independent Auditor’s Report on Compliance with Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance dated July 31, 2024.

Planned Scope and Timing of the Audit
The timing of the audit was modified to allow the City sufficient time to close its books and records.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As decribed in Note 1 to the financial statements, the City changed accounting policies related to accounting for subscription based information technology arrangements (SBITAs) to adopt the provisions of GASB Statement 96, Subscription‐Based Information Technology Arrangements (SBITAs). Accordingly, the accounting change has been retrospectively applied to the financial statements beginning July 1, 2022. There was no effect on beginning net position as a result of implementation. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.