3 retail shopping, city services, schools and health care.
Ideally the City should develop the old downtown despite the unwillingness of current property owners to help make that happen. The City also needs to attract more services and retail to the outlying developments. It will take some time for ownership to change, The City must monitor these
opportunities to take advantage them as they become
available.
While currently a political hot topic the City must deal with the demand for large warehouse developments. Despite some
local opposition, the warehouses will be build - if not in Beaumont City limits- in areas very close. The claimed
disadvantages of traffic and unclean air will impact the City in much the same way as if the warehouse was built within the City. If the City bans all construction, we will still have the problems but we will miss the income that could be used to mitigate the claimed problems. The City needs to develop a clear set of policies that will allow both development and protect property values while maximizing the City tax base.
If you were a Planning
Commission member
representing the Beaumont
Citizens, how would you
define “quality of life”?
Quality of Life is different for every person. The needs vary among individuals and groups.
However, in the most simple terms, Quality of Life includes a comfortable location to live with quality schools, shopping, government leadership and affordable living expenses,
What involvement do you
currently have in the
community?
I chair the Architectural Review Committee of the Four
Seasons HOA.
I have served on the Board of Directors for the San Gorgonio Hospital.
Additional Information
Resume Field not completed.
Additional Information Field not completed.
Email not displaying correctly? View it in your browser.
1 Nicole Wheelwright
From:[email protected]
Sent:Tuesday, December 6, 2022 5:14 PM
To:Nicole Wheelwright
Subject:Online Form Submittal: Planning Commission Appointment 2022 Categories:Print
Planning Commission Appointment 2022
Applications to fill the vacant seats of the Beaumont Planning Commission will be accepted through Thursday, December 8, 2022 at 5:00 p.m.
Selection process will be held during the City Council Meeting of December 20, 2022 at 6:00 p.m.
First Name Steven
Last Name A Hovey
Primary Phone
Alternate Phone Field not completed.
Home Address
Address 2 Field not completed.
Email
Occupation/Profession Retired Educator
Employer Name Riverside County Office of Education
Are you 18 years of age or
older?
Yes
Are you a resident in the
City of Beaumont?
Yes
Questions
Please answer the following questions which are intended to assist the City Council in assessing your qualifications and experience for the Planning Commission vacancy.
Are you aware of any
conflicts, financial or
I am not aware of any conflicts of interest.
2 otherwise, which could
affect your appointment as
a Planning Commissioner?
Briefly state your
qualifications, including any
skills or background related
to City Planning,
development and
building/construction:
My experience does not include the technical expertise of planning, development, and building/construction. I do have vast experience with various boards that have prepared me to work as an effective contributing member of group processes and decision-making. That experience includes eight years as a Trustee of the Beaumont Unified School District, which involved planning for significant facilities development, including Starlight Elementary, Summerwind Trails Pre-K-8th grade school, and major expansion of Beaumont High School.
Additionally, I have served on the boards of several Joint Powers Authorities, including 15 years as President of the Protected Insurance Program for Schools JPA, 14 years as President of the Riverside Schools Insurance Authority, 3 years as President of the Regional Employer/Employee Partnership for Benefits JPA, as well as board member of the Riverside Schools Risk Management Authority and the Community
Colleges/County Superintendent of Schools Insurance
Authority.
Accordingly, while I would cede the specific technical
background to others, my leadership and expertise in collective governance and decision-making will allow me to be a
significant contributor to the work of the Planning Commission.
What would your vision for
Beaumont’s future?
I want Beaumont to be the city that is not just where people live, but where people call home. Many residents commute out of Beaumont for employment, as well as recreation, shopping, and dining. I would like to see our city have more local jobs and a greater variety of shops, restaurants, entertaining, and recreational venues that would allow residents to "stay local." We generally have such moderate and pleasant weather, that we could benefit from more open and outdoor cafes, coffee shops, and dining establishments, along with pedestrian- oriented shopping areas with boutiques, as well as antiques stores.
Our better future would not only be "A City Elevated," but a city in balance - with good jobs and good neighborhoods and good business opportunities.
If you were a Planning
Commission member
representing the Beaumont
Citizens, how would you
define “quality of life”?
"Quality of life" would include those items mentioned above, because leaving home and spending countless hours on the road diminish time with family, friends, neighbors, which are essential to an ideal quality of life. Safe communities and a healthy environment contribute to the quality of life in that people are engaged and active, not hunkered down and
isolated. We have new neighborhoods and legacy
3 neighborhoods and need to attend to the quality-of-life factors for all our residents. Resolving traffic issues, including inconvenience and potential safety concerns caused by
railroad traffic and stoppages, will improve quality of life, particularly for residents south of I-10.
What involvement do you
currently have in the
community?
I am completing my second term as a Trustee of the Beaumont Unified School District after eight years of service. I have been a regular participant in the monthly Good Morning, Beaumont breakfasts sponsored by the Chamber of Commerce. I am a sponsor of the Banning and Beaumont Student of the Month program and a regular supporter of the Boys and Girls Club of the San Gorgonio Pass. I am a member of the Four Seasons Beaumont Tennis Club, and previously served on the club's coordinating committee.
Additional Information
Resume Field not completed.
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1 Nicole Wheelwright
From:[email protected]
Sent:Wednesday, December 7, 2022 8:41 PM
To:Nicole Wheelwright
Subject:Online Form Submittal: Planning Commission Appointment 2022 Categories:Print
Planning Commission Appointment 2022
Applications to fill the vacant seats of the Beaumont Planning Commission will be accepted through Thursday, December 8, 2022 at 5:00 p.m.
Selection process will be held during the City Council Meeting of December 20, 2022 at 6:00 p.m.
First Name Allen
Last Name Koblin
Primary Phone
Alternate Phone
Home Address
Address 2 Field not completed.
Email
Occupation/Profession COMMERCIAL RETIREAL ESTATE
Employer Name SELF EMPLOYED
Are you 18 years of age or
older?
Yes
Are you a resident in the
City of Beaumont?
Yes
Questions
Please answer the following questions which are intended to assist the City Council in assessing your qualifications and experience for the Planning Commission vacancy.
Are you aware of any
conflicts, financial or
NONE
2 otherwise, which could
affect your appointment as
a Planning Commissioner?
Briefly state your
qualifications, including any
skills or background related
to City Planning,
development and
building/construction:
I am a certified property manager (CPM) with over 30 years of project management and development experience. Before
moving to Beaumont, I spent nearly 20 years representing the needs of the community buy serving on several City
commissions and committees. As a property manager, I my experience includes overseeing expansions and relocations of several school operations/facilities as well as several commercial properties..
What would your vision for
Beaumont’s future?
I envision the downtown business district being revitalized and redeveloped to a place where people seek out the modern yet vibrant and friendly interactive place where people look forward to enjoying. As the City of Beaumont continues to see
tremendous growth in both the residential and commercial areas, it is essential to that the historically original atmosphere of the City not be lost.
If you were a Planning
Commission member
representing the Beaumont
Citizens, how would you
define “quality of life”?
I would define the "quality of life" I would seek is enjoying a safe and comfortable (affordable) place to live and raise their families as well as great shopping opportunities.
What involvement do you
currently have in the
community?
I currently serve on the City's Economic Development
Committee, the Board of the Beaumont Chamber of
Commerce, the Architectural Review Committee in Four
Seasons and as president of the San Gorgonio Memorial
Hospital Foundation. As a commercial realtor I am constantly seeking new and existing businesses to establish themselves in Beaumont.
Additional Information
Resume Field not completed.
Additional Information Field not completed.
Email not displaying correctly? View it in your browser.
1 Nicole Wheelwright
From:[email protected]
Sent:Wednesday, December 7, 2022 3:45 PM
To:Nicole Wheelwright
Subject:Online Form Submittal: Planning Commission Appointment 2022 Categories:Print
Planning Commission Appointment 2022
Applications to fill the vacant seats of the Beaumont Planning Commission will be accepted through Thursday, December 8, 2022 at 5:00 p.m.
Selection process will be held during the City Council Meeting of December 20, 2022 at 6:00 p.m.
First Name Dustin
Last Name Nirschl
Primary Phone
Alternate Phone Field not completed.
Home Address , Beaumont, CA 92223
Address 2 Field not completed.
Email
Occupation/Profession Attorney - Best Best & Krieger
Employer Name Field not completed.
Are you 18 years of age or
older?
Yes
Are you a resident in the
City of Beaumont?
Yes
Questions
Please answer the following questions which are intended to assist the City Council in assessing your qualifications and experience for the Planning Commission vacancy.
Are you aware of any
conflicts, financial or
No. I have not, previously, represented, been employed by, or contracted with the City of Beaumont.
2 otherwise, which could
affect your appointment as
a Planning Commissioner?
Briefly state your
qualifications, including any
skills or background related
to City Planning,
development and
building/construction:
As set forth in greater detail in the attached resume, I served as an appointed Planning Commissioner for the City of Irvine from 2016-2020. In fact, I even served as Chairman. I see many parallels between the City of Beaumont and the City of Irvine, including, but not limited to, challenges relating to the balance of infill development with new construction, increased traffic as a result of residential growth, and
retention/development of a useable, functioning "Main Street" / downtown area. I hope to not only contribute my knowledge and experience as a commissioner, but also to work hand-in- hand with our communities, staff, and City Council members. I view the Planning Commission as an opportunity for
collaboration.
As a municipal attorney, real estate agent, and homeowner, I have additional land use and government experience that I think will be additive to the Planning Commission. I have a strong sense of development interest and realities, legal intersections, and public and private interests.
What would your vision for
Beaumont’s future?
My vision for Beaumont, though aspirational in some senses and in others merely focused on advancing objectives that have already been achieved, is focused on balance, quality, and a sense of identity. Beaumont, uniquely, is nestled in the Inland Empire and enjoys unmatched countryside and
mountain views. I would strive to maintain and preserve our balance of rural beauty and urban development, improve local infrastructure and amenities by appropriating development fees and special tax assessments for necessary capital
improvement projects (and requiring that developers are held to rigorous standards regarding park and play areas), entitle development in a balanced, systematic fashion so that the City of Beaumont achieves a balance of consumer retail, office, industrial, agricultural, and residential uses in both high and low density settings. In addition, a fully built out City of Beaumont mitigates traffic in residential bottlenecks and revitalizes its "Main Street" / downtown area for a renewed sense of
community and for the enjoyment of its residents.
If you were a Planning
Commission member
representing the Beaumont
Citizens, how would you
define “quality of life”?
Quality of life, to me, means peace, independence, safety, community, and opportunity. As an American, I believe that quality of life embraces freedom and liberty. I also believe that we enjoy a higher quality of life if our communities are safe and have a sense of unity/identity. Finally, quality of life also includes opportunity, whether in terms of employment,
3 business, or schooling/training. The above development is intended to promote/achieve these "quality of live"
characteristics.
What involvement do you
currently have in the
community?
I am a homeowner; small business owner (separate from law practice); and local restaurant enthusiast.
Additional Information
Resume Resume.PlanningCommission.DN.pdf
Additional Information Field not completed.
Email not displaying correctly? View it in your browser.
Dustin Nirschl
, Beaumont, CA 92223 ● ●
EDUCATION
University of California, Irvine School of Law, Irvine, CA Degree: Juris Doctor
Honors: UCI Law: Pro Bono Leadership Award
LAND USE AND REAL ESTATE EXPERIENCE
Best Best & Krieger LLP, Riverside, CA June 2021 - Present Municipal Attorney. Represent large and small municipalities on land use, transactional, governance, and litigation matters. Advise government entities at City Council at closed session and public meetings, Planning Commission meetings, and Special District meetings. Draft moving and responsive papers, trial briefs, and research memoranda. Perform depositions.
BHHS California Homes, San Diego, CA August 2019 - Present Licensed Real Estate Salesperson. List residential properties for sale, negotiate sale price, and make offers to purchase real property. Prepare all transactional documents and agreements.
Planning Commission, Irvine, CA December 2016 - December 2020 Appointed Commissioner (Chairman in 2018-2019). Evaluated applications concerning conditional use permits, variances, vesting tentative tract maps, master plans, and multi-unit residential developments. Made findings in accord with state and local law. Reviewed environmental analysis under CEQA. Examined applicants in public meetings. Complied with the Brown Act and Subdivision Map Act.
Green Ribbon Environmental Committee, Irvine, CA December 2016 - December 2020 Appointed Member. Evaluated environmental impacts and proposed mitigation strategies. Advised City Council. Drafted environmental policies.
City Attorney’s Office, Newport Beach, CA August 2017 - December 2017 Litigation Extern. Prepared complaints to enjoin nuisance, retail cannabis activities. Assisted in the representation of enforcement personnel.
ADDITIONAL LITIGATION AND RESEARCH EXPERIENCE
Turoci Law Firm, Riverside, CA May 2019 – June 2021 Litigation Attorney. Prepared pleadings, moving and responsive papers, and briefs. Drafted chapter 11 first day motions and reorganization plans (including subchapter V cases). Appeared in federal court, state court, and 341(a) meetings of creditors.
United States, Central District of California, Santa Ana, CA January 2018 - May 2018 Judicial Extern to the Honorable Scott C. Clarkson. Analyzed, researched, and briefed bankruptcy matters filed with the court. Identified legal authority and assisted chambers in the preparation of select opinion sections.
University of California, Irvine School of Law, Irvine, CA February 2018 - May 2018 Research Assistant to Professor Litman. Performed legal research regarding injunctions and assisted in drafting a law review article.
1 Nicole Wheelwright
From:[email protected]
Sent:Wednesday, December 7, 2022 7:48 PM
To:Nicole Wheelwright
Subject:Online Form Submittal: Planning Commission Appointment 2022 Categories:Print
Planning Commission Appointment 2022
Applications to fill the vacant seats of the Beaumont Planning Commission will be accepted through Thursday, December 8, 2022 at 5:00 p.m.
Selection process will be held during the City Council Meeting of December 20, 2022 at 6:00 p.m.
First Name Peter
Last Name Sierra
Primary Phone
Alternate Phone Field not completed.
Home Address
Address 2 Beaumont CA 92223
Email
Occupation/Profession Business Representative
Employer Name Teamsters
Are you 18 years of age or
older?
Yes
Are you a resident in the
City of Beaumont?
Yes
Questions
Please answer the following questions which are intended to assist the City Council in assessing your qualifications and experience for the Planning Commission vacancy.
Are you aware of any
conflicts, financial or
No.
2 otherwise, which could
affect your appointment as
a Planning Commissioner?
Briefly state your
qualifications, including any
skills or background related
to City Planning,
development and
building/construction:
For the last 10 years I have canvassed neighborhoods in multiple cities to listen to residents` concerns on proposed building projects and relayed those concerns to elected officials. During that time, we have worked closely with community members to construct community benefit
agreements with developers.
What would your vision for
Beaumont’s future?
I envision Beaumont to become an even better city than it is currently. A city where our residents can thrive and not just survive. A city where we can live, work and play safely for generations to come.
If you were a Planning
Commission member
representing the Beaumont
Citizens, how would you
define “quality of life”?
Having lived in Beaumont for the last 20 years, I have seen tremendous growth. My family and I moved here from San
Bernardino in order to escape the violence and air pollution that drapes that city. Our quality of life comes from the clean air and beautiful landscapes that surround our city. When my 8 year old son plays outside, he doesn`t have to worry about the unsafe neighborhood and polluted air that I grew up in.
What involvement do you
currently have in the
community?
For the last 4 years I have taken an active role in youth sports as a head coach for Beaumont Youth Baseball. I currently serve as a volunteer at my church. I am proud to be the designated block captain for my neighborhood and make sure my son and the neighborhood children have a safe
environment to play in everyday.
Additional Information
Resume Resume PS.docx
Additional Information Field not completed.
Email not displaying correctly? View it in your browser.
Peter D Sierra
Beaumont, CA 92223
Objective
Planning Commissioner
Professional Experience
4/12 to Present TEAMSTERS
Business Representative
Negotiate contracts for our employees with multiple employers.
Represent employees when contract violations occur.
Develop worksite leaders and give them assignments.
Develop relationships between workers, community, and political figures.
Canvass neighborhoods for resident input on proposed building projects.
Speak at City Council and Board of Supervisors meetings to relay residents’ concerns.
Community Involvement
10/16 to Present Sandals Church
Volunteer
Welcome first-time visitors.
Assist with serving coffee.
Help stock inventory.
1/18 to Present Beaumont Youth Baseball
Coach
Develop children`s skills to operate as a team.
Communicate with parents on a weekly basis.
Strategize with other coaches to improve our effectiveness on the field.
1 Nicole Wheelwright
From:[email protected]
Sent:Monday, December 5, 2022 10:18 PM
To:Nicole Wheelwright
Subject:Online Form Submittal: Planning Commission Appointment 2022 Categories:Print
Planning Commission Appointment 2022
Applications to fill the vacant seats of the Beaumont Planning Commission will be accepted through Thursday, December 8, 2022 at 5:00 p.m.
Selection process will be held during the City Council Meeting of December 20, 2022 at 6:00 p.m.
First Name Nathan
Last Name Smith
Primary Phone
Alternate Phone Field not completed.
Home Address
Address 2 Field not completed.
Email
Occupation/Profession Deputy Director of Public Works/City Engineer Employer Name Nate Smith
Are you 18 years of age or
older?
Yes
Are you a resident in the
City of Beaumont?
Yes
Questions
Please answer the following questions which are intended to assist the City Council in assessing your qualifications and experience for the Planning Commission vacancy.
Are you aware of any
conflicts, financial or
No
2 otherwise, which could
affect your appointment as
a Planning Commissioner?
Briefly state your
qualifications, including any
skills or background related
to City Planning,
development and
building/construction:
I have worked for the last 18 years as a Civil Engineer in both the private sector in a land development company, and recently in the public sector working as a City Engineer in the Public Works Department. Throughout my career, I have worked on development projects from early conception through
construction. I am deeply aware of land use regulation, land use processes, entitlement processes, and the needs of both the City, as well as the interests of developers and business owners. This dual understanding of both sides of a project has been invaluable in both work roles I have had and in
understanding what can and cannot be done in my previous terms on the Planning Commission. I have had the opportunity to hear cases large and small, and usher through approvals that are satisfactory to the citizens of Beaumont and the perspective business owners, and denials for projects that do not meet with the goals of the General Plan and in the best interest of the community.
What would your vision for
Beaumont’s future?
Beaumont has been able to mature from a rural City looking to grow, to a City where we can ask the question “Is this what we want for Beaumont’s future?” This provides the City and our elected officials more latitude in dealing with land owners to ensure that proposed projects meet the goals of the recently adopted General Plan and the needs of the City at large.
I also see Beaumont as a regional hub for jobs, retail, and transportation. Development proposals along SR-79 should be respective of those General Plan goals as a regional hub. With the continued development of the Coachella Valley Rail Line, efforts should be made to make Beaumont the rail stop for the San Gorgonio Pass. Implementation of the Downtown Specific Plan and being consistent with the feel that is desired for those districts will also give residents a sense of place, and a solid downtown will provide the communal space that is not yet fully developed.
I would like to see efforts on developing and implementing an active transportation plan, linking trails and open spaces around the community to bike paths and trails to move people though the City. There are opportunities that exist along creeks, utility corridors, and railroad rights of way that would be prime locations for non-motorized transportation needs.
Finally, Beaumont should be a leader in the San Gorgonio Pass to foster stronger relationships with our neighbors and
3 advocate as one voice/one region on improvements to the transportation network that affect us all.
With a focus on improving connections for the community and being focused on ensuring that new development meet the goals and needs of the City, Beaumont will be set up for continued success far into the future.
If you were a Planning
Commission member
representing the Beaumont
Citizens, how would you
define “quality of life”?
Quality of Life is such a subjective term. To me, a high quality of life means that there are numerous options available for residents to choose from. These would include access to jobs at all levels, good schools, access to parks, open space, recreation programs, community events and ability to gather, and entertainment options that do not require traveling outside the region. Often, these needs conflict with each other, and my role on this Commission would be to weigh the pros and cons to deliver projects that allow for residents to each find their own best quality of life.
What involvement do you
currently have in the
community?
I have had the pleasure of serving on the Planning Commission and service the citizens of Beaumont for several years now. In that time, I have started a family and watched them grow into teens and pre-teens. I have had the opportunity coach on youth leagues for my kids. I helped my parents relocate from their home to the Pass area as well. I have participated with the Downtown Business Owners group to hear their concerns. I participated in General Plan committees as a Planning
Commissioner and community meetings during its
development, and am proud to have been able to vote to adopt that plan. As an employee at a neighboring City, I also understand the capabilities and limitations of local government.
Through this time and experience, I have seen and
encountered people at various stages of life, with varying needs and expectations of the community. I would utilize that experience to continue to advocate for the city and my
neighbors as a Planning Commissioner.
Additional Information
Resume Field not completed.
Additional Information Field not completed.
Email not displaying correctly? View it in your browser.
1 Nicole Wheelwright
From:[email protected]
Sent:Monday, December 5, 2022 12:17 PM
To:Nicole Wheelwright
Subject:Online Form Submittal: Planning Commission Appointment 2022 Planning Commission Appointment 2022
Applications to fill the vacant seats of the Beaumont Planning Commission will be accepted through Thursday, December 8, 2022 at 5:00 p.m.
Selection process will be held during the City Council Meeting of December 20, 2022 at 6:00 p.m.
First Name Robert
Last Name Tinker
Primary Phone
Alternate Phone Field not completed.
Home Address
Address 2 Field not completed.
Email
Occupation/Profession Retired firefighter
Employer Name Cal fire
Are you 18 years of age or
older?
Yes
Are you a resident in the
City of Beaumont?
Yes
Questions
Please answer the following questions which are intended to assist the City Council in assessing your qualifications and experience for the Planning Commission vacancy.
Are you aware of any
conflicts, financial or
otherwise, which could
None
2 affect your appointment as
a Planning Commissioner?
Briefly state your
qualifications, including any
skills or background related
to City Planning,
development and
building/construction:
I was a member of the planning commission for 8 years.
What would your vision for
Beaumont’s future?
Field not completed.
If you were a Planning
Commission member
representing the Beaumont
Citizens, how would you
define “quality of life”?
Quality of life is being safe in our homes and enjoying recreational activities.Quality of life is living in a community where the city government is responsive to the needs of the citizens.
What involvement do you
currently have in the
community?
I am a volunteer with the Beaumont Cherry Valley Recreation and Park District Improvement Corporation.
Additional Information
Resume Field not completed.
Additional Information Field not completed.
Email not displaying correctly? View it in your browser.
1 Nicole Wheelwright
From:[email protected]
Sent:Wednesday, December 7, 2022 8:08 PM
To:Nicole Wheelwright
Subject:Online Form Submittal: Planning Commission Appointment 2022 Categories:Print
Planning Commission Appointment 2022
Applications to fill the vacant seats of the Beaumont Planning Commission will be accepted through Thursday, December 8, 2022 at 5:00 p.m.
Selection process will be held during the City Council Meeting of December 20, 2022 at 6:00 p.m.
First Name Eric
Last Name Ustation
Primary Phone
Alternate Phone Field not completed.
Home Address
Address 2 Field not completed.
Email
Occupation/Profession Director of Intergovernmental Affairs Employer Name San Manuel Band of Mission Indians
Are you 18 years of age or
older?
Yes
Are you a resident in the
City of Beaumont?
Yes
Questions
Please answer the following questions which are intended to assist the City Council in assessing your qualifications and experience for the Planning Commission vacancy.
2 Are you aware of any
conflicts, financial or
otherwise, which could
affect your appointment as
a Planning Commissioner?
My wife is the Director of Finance, but I do not anticipate there being any conflict with the Planning Commission. I am happy to recuse myself if any conflict should arise.
Briefly state your
qualifications, including any
skills or background related
to City Planning,
development and
building/construction:
I believe I have a unique set of skills and qualifications that would benefit the Planning Commission, and ultimately the City of Beaumont and its residents. For the past 20 years I have worked in both the public and private sectors and understand the intricacies and importance of communications and careful land use planning. While in the private sector, I learned how critically important efficient government regulations are when developing and operating a business. Clear, concise, and consistent communication between public agencies and the development community makes a city more attractive for
investment.
By working in the public sector, first in the Mayor's Office in the City of Riverside and then with the Riverside Transit Agency, I came to understand some of the realities of public governance - chiefly that there are many rules and regulations that must be considered and balanced when developing policy. It is this understanding of the balance between business interests and government regulations that I believe would be helpful to apply to the Planning Commission.
My education background also provides me with an
understanding of the dependencies between private business and public administration. I graduated with a degree in Political Science from UC San Diego and earned my MBA from Cal
State San Bernardino.
What would your vision for
Beaumont’s future?
Beaumont is an amazing city with a bright future ahead of it.
Recent population growth shows clearly that it is a destination for both families and business alike. I think Beaumont can continue to take advantage of what it is doing right and manage the coming growth through thoughtful development of forward thinking policies. I would recommend looking at how other cities have successfully managed growth and apply the lessons in Beaumont, tweaking them of course to our distinct
opportunities and challenges.
If you were a Planning
Commission member
representing the Beaumont
Citizens, how would you
define “quality of life”?
To me, quality of life can be defined as balance. Beaumont is growing because it a great place to raise a family, with good schools, high-quality of life, and recreational opportunities in a safe community setting. I think it will be important to carefully plan how to manage this growth so that it doesn't overwhelm City resources. Balanced land use decisions can be made so
3 that residential, commercial, and industrial interests can all thrive, without conflicting with each other. Beaumont does not operate in a vacuum, and it is important to communicate with our municipal neighbors to ensure decisions made in one city will not negatively affect residents in another.
What involvement do you
currently have in the
community?
Actively monitor City Council meetings and provide comments when appropriate.
Additional Information
Resume Field not completed.
Additional Information Field not completed.
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Staff Report
TO: City Council
FROM: Nicole Wheelwright, Deputy City Clerk
DATE December 20, 2022
SUBJECT: Mayoral Appointments to Various Boards, Commissions and Committees
Description Annual appointments of City Council Members to City and outside agency boards, commissions and committees.
Background and Analysis:
As part of an annual reorganization, it is the Mayor’s discretion to appoint City Council members to various boards, commissions and committees. The following entities require representatives from the City Council.
Riverside Transit Agency
Transportation Now
Riverside County Transportation Commission
Western Riverside County Regional Conservation Authority Beaumont Cherry Valley Parks and Recreation District
Beaumont Cherry Valley Water District
Beaumont Unified School District
Legislative Liaison
Collaborative Agency
City Manager and Mayor’s Breakfast
Eastern Riverside County Interoperable Communications Authority Southern California Association of Governments
League of California Cities
Memorial Committee
Finance and Audit Committee
Economic Development Committee
San Gorgonio Integrated Regional Water Manage ment Region Stakeholder Advisory Committee
Western Riverside Council of Governments
Water Re-Use Ad-Hoc 2x2 Committee
Passcom
Beaumont Basin Watermaster Board
Memorial Ad-Hoc Committee
Youth Council
Policy on Land Use (PLUS) Committee
Cherry Festival Liaison
Fiscal Impact:
Staff estimates the cost to prepare this staff report to be $195.
Recommended Action:
Mayoral appointments of City Council members to various boards, commissions and committees.
Attachments:
A. List of boards, commissions and committees
*Provides Stipend
Boards and Assigned Electeds
Riverside Transit Agency
A collaboration of cities within the County of Riverside to discuss transportation within the County.
Representative -
Alternate Representative -
Meets the fourth Thursday of the month @ 2:00pm
1825 Third Street, Board Room, Riverside
*Transportation Now
Regional meeting of Transit providers and community advocates to discuss regional transit issues Representative -
Alternate Representative -
Meets the first Thursday of the month @ 12 noon
550 E 6th St, City Hall, Beaumont
Riverside County Transportation Commission*
Oversees transportation capital projects in the Western Riverside County.
Representative -
Alternate Representative -
Meets the Second Wednesday of the month at 9:30am
4080 Lemon Street, First Floor
Western Riverside County Regional Conservation Authority A joint powers authority for the purpose of acquiring, administering, operating and maintaining land and facilities for ecosystem conservation
Board Member -
Alternate Board Member -
Meets the first Monday of the month at 12:30pm
4080 Lemon Street, First Floor
Beaumont Cherry Valley Parks and Recreation District
Operates parks and recreation centers in the Beaumont/Cherry Valley Area Liaison -
Alternate Liaison -
Meets the second Wednesday of the month at 5:00pm
390 W. Oak Valley Pkwy, Beaumont
Beaumont Cherry Valley Water District
Water distribution for the Beaumont, Cherry Valley and a portion of Calimesa Liaison -
Alternate Liaison -
Meets the second Wednesday of the month at 7:00pm
560 Magnolia Ave, Beaumont
Beaumont Unified School District
Meeting for the Board of Trustees to discuss topics within the district.
Liaison -
Alternate Liaison -
Meets the second and fourth Tuesday of the month at 6:30pm 350 W. Brookside Ave, Beaumont
Legislative Liaison
Representation of Beaumont at Sacramento and Washington DC events.
Representative -
Alternate Representative –
Collaborative Agency
A joint meeting between agencies within the City to collaborate on events and issues, initially started as an emergency operations agency.
Representative -
Alternate Representative –
Meets every two months
City Manager and Mayor’s Breakfast
A joint meeting between the Mayors and City Mangers of Banning, Beaumont, Morongo, Calimesa and Riverside County Supervisor.
Mayor ___ Representative
City Manager, Elizabeth Gibbs – Representative
Meets the first Thursday of the month at 7:00am
Eastern Riverside County Interoperable Communications Authority (ERICA) Joint Powers authority of cities regarding radio communications Representative –
Kari Mendoza – Board Member Meets on the even months at 2:00 68700 Avenida Lalo Guerrero, City Hall, Cathedral City
Committees and Boards (continued)
Southern California Association of Governments*
Joint Powers Authority under State Law to address regional issues Representative -
Alternate -
Meets on the first Thursday of the month
818 West 7th Street, 12th Floor, Los Angeles
League of California Cities
Association of California City Officials to combine resources and information to influence policy Voting Delegate -
Alternate -
Rotating locations
Memorial Committee
Committee to oversee the City memorials (i.e Police and Fire Memorial, Veteran’s Memorial) Committee Member -
Alternate Committee Member -
Meets on an as‐needed basis
550 E 6th St, City Hall, Beaumont
Finance and Audit Committee
Promotes enhanced fiscal responsibility, accountability, integrity and transparency.
Committee Member/Council Member -
Committee Member/Council Member -
Meets the first Monday of the month at 6:00pm
550 E 6th St, City Hall, Beaumont
Economic Development Committee
Evaluate and provide advice and recommendations to the City Council concerning Economic Development matters.
Committee Member/Council Member -
Committee Member/Council Member -
Meets the second Wednesday of the month at 4:00pm
550 E 6th St, City Hall, Beaumont
San Gorgonio Integrated Regional Water Management Region Stakeholder Advisory Committee Collaborative committee to manage water resources on a regional scale Committee Member/Council Member -
Committee Member/Council Member -
Meets the third Wednesday of the month at 5:30pm
125 E Ramsey St, Banning Police Department, Banning
Western Riverside Council of Governments *
Comprised of cities in Riverside County to discuss regional issues Committee Member/Council Member -
Alternate Member/Council Member -
Meets the first Monday of the month at 2:00pm
4080 Lemon St, County of Riverside Administrative Building, Riverside
Water Re-Use Ad-Hoc 2x2 Committee
Collaborative meeting with the Beaumont Cherry Valley Water District to discuss logistics of re-use water from the Treatment Plant
Committee Member/Council Member -
Committee Member/Council Member -
BCVWD Board Member
BCVWD Board Member
Meets on an as needed basis
550 E 6th ST., City Hall, Beaumont
Passcom
Board Member -
Alternate Board Member -
Meets on the 2nd Tuesday of the month at 8:30am
Four Seasons Main Clubhouse Meeting Room
Beaumont Basin Watermaster Board
Council Member -
Council Member -
Meets on the 1st Wednesday of even months at 10:00 am
560 Magnolia Ave. Beaumont
Memorial Ad-Hoc Committee
Council Member -
Alternate -
Meets as needed
550 E 6th Street, Beaumont
Youth Council
Council Member -
Alternate -
To be determined
Policy on Land Use (PLUS) Committee
Council Member -
Alternate -
Meets as needed
550 E 6th Street, Beaumont
Cherry Festival Liaison
Council Member -
Alternate -
Meets as needed
Staff Report
TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE December 20, 2022
SUBJECT: Discussion of Finance and Audit Committee Ordinance
Description Review and discussion of amendments to Municipal Code Section 2.35 Financial and Audit
Background and Analysis:
At the December 6, 2022, City Council meeting, Council Member Fenn requested that the Finance and Audit Committee be brought forth for discussion. During the discussion, City Council directed staff to make various changes to the current Ordinance and bring back a draft for review.
Attached is Ordinance 1076 with Council’s requested changes in redlined format for review and discussion. Should Council direct staff to prepare an ordinance for adoption, a public hearing will be held on January 17, 2023.
Fiscal Impact:
No fiscal impact.
Recommended Action:
Discussion and direction to staff.
Attachments:
A. Redlined ordinance
ORDINANCE NO 1076
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BEAUMONT, CALIFORNIA AMENDING CHAPTER 2.35 AND ITS RENAMING TO "FINANCIAL AND AUDIT COMMITTEE" TO THE CITY OF BEAUMONT MUNICIPAL CODE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, RIVERSIDE COUNTY STATE OF CALIFORNIA AS FOLLOWS:
SECTION 1. CEOA. The City Council finds that the actions contemplated by this Ordinance are exempt from the California Environment Quality Act ("CEQA") pursuant to Section 15060 (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 1560(c)(3) (the activity is not project as defined in Section 15378) of the CEQA Guidelines, California Code Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
SECTION 2 Severabilitv. The City Council hereby declares that if any provision, section, paragraph, sentence, or word of this Ordinance is rendered or declared to be invalid or unconstitutional by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, such invalidity shall not affect the other provisions, sections, paragraphs, sentences or words of this Ordinance, and to this end the provisions, of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance enforced.
SECTION 3. The City Council hereby amends the name to Chapter 2.35 "Financial and Audit Committee" to the City of Beaumont as follows:
Chapter 2.35
"Financial and Audit Committee"
Sections:
2.35.010
2.35.020
2.35.030
2.35.040
2.35.050
2.35.060
2.35.070
Purpose and Intent.
Definitions.
Creation of Committee.
Appointment and Qualifications of Committee Members.
Term and Tenure of Members.
Powers and Duties.
Rules and Regulations.
2.35.010 Purpose and Intent. The purpose of this Chapter is to establish a Financial and Audit Committee. The Financial and Audit Committee shall act in an advisory capacity to the City Council and work to promote enhanced fiscal responsibility, accountability, integrity, transparency, and to recommend fiscal and investment policies for City Council consideration.
2.35.020 Definitions.
(A) "City" shall mean the City of Beaumont;
(B) "Code" shall mean the City of Beaumont Municipal Code;
(C) "Committee" shall mean the Financial and Audit Committee as established herein.
2.35.030 Creation of Committee. There is hereby created a Financial and Audit Committee. The Committee shall consist of seven none (79) members.
2.35.040 Appointment and Qualification of Committee Members. The City Council shall appoint the members of the Committee. Committee members shall be at least eighteen (18) years of age and shall consist of at least two (2) members of the City Council, the City Treasurer, the City Manager or his or her designee as the highest rankinghighest-ranking financial staff member of the City, and three five (53) residents of the City of Beaumont. The seventhninth committee member shall either be a City resident and/or he or she must own a business operating within the City. The City Manager and his or her designee as the highest rankinghighest-ranking financial staff position shall be on the Committee as non-voting members. There will be sevennine voting members. Any Committee member may be removed from the Committee after three consecutive unexcused absences from meetings and a majority vote of the Committee.
2.35.050. Term and Tenure of Members. All members of the Committee shall be appointed for a term of two (2) years and shall serve at the pleasure of the City Council.
Members shall serve without compensation.
2.35.060. Powers and Duties. The Committee shall be advisory to the City Council. The Committee shall hold public meetings quarterlyat least once every sixty days. The Committee shall make recommendations to the City Council regarding:
(A) City investment policies and practices;
(B) Long term financial planning;
(B)(C) Draft annual comprehensive financial report
(C)(D) Such other matters as the City Council may request from time to time
2.35.070 Rules and Regulations. The Committee shall appoint a chair, who shall conduct Committee meetings and report quarterly to the City Council on Committee Formatted: Font: Arial, Character scale: 100%, Not
Expanded by / Condensed by
activities and recommendations. The Committee shall adopt such rules and regulations as are needed to conduct its meetings and shall comply with the Brown Act and other applicable laws.
SECTION 4. Effective Date and Publication. The Mayor shall sign and the City Clerk shall certify to the passage of this Ordinance and cause the same or a summary thereof to be published within 15 days after adoption in accordance with Government Code Section 36937.
NOW, THEREFORE, BE IT ORDAINED that the City Council of the City of Beaumont, California, approves this amendment to the City Code.
INTRODUCED AND READ for the first time and ordered posted at a regular meeting of the City Council of the City of Beaumont, California, held on the day of , 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ADOPTED by the City Council, signed by the Mayor, and attested by the City Clerk this day of , 2023.
AYES:
NOES:
ABSENT:
ABSTAIN:
Formatted: Font color: Custom Color(RGB(40,40,40))
• fo ]2:;nodo=
Record Gazette
218 N. Murray St.
Proof of Publication
(2015.5 C.C.P.)
133595AMENDING CHAPTER 2.35
State of California
County of Riverside
)
) ss.
I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above matter. I am the principal clerk of the printer and publisher of Record Gazette, a newspaper published in the English language in the City of Banning, County of Rivers:de, and adjudicated a newspaper of general circulation as defined by the laws of the state of California by the Superior Court of the County of Riverside, under the date October 14, 1966, Case No. 54737. That the notice, of which the annexed is a copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:
July 15, 2016
Executed on: 07/15/2016
At Banning , CA
I ceritfy (or declare) under penalty of perjury that
CITY OF BEAUMONT
LEGAL NOTICE
NOTICE IS HEREBY
GIVEN, that the Beaumont
City Council conducted a
public hearing on Tuesday,
June 21st, 2016 at 550 E.
6th Street, Beaumont, Cali·
fomia 92223, to receive tes-
timony and comments from
ell Interested persons re-
garding the adoption of the
following matter(s): AN ORDINANCE OF THE
CITY COUNCIL OF THE
CITY OF BEAUMONT,
CALIFORNIA AMENDING CHAPTER
2.35. AND ITS RENAMING
TO FINANCIAL AND
AUDIT COMMITTEE
TO THE BEAUMONT MU·
NICIPAL CODE
The City of Beaumont is
proposing to adopt an
I amendment to Chapter
, 2.35 Standing Financial
• Committee to be renamed
Financial and Audit Com-
mittee Ordinance No. 1076 was
, adopted at its second read-
ing on July 5, 2016 by the
following vote: AYES: Mayor Lara, Council
Members White, Condon,
Knight, and Orozco
NOES:None
ABSTAIN: None
ABSENT:None
Julio Martinez
City Clerk
Published in
The Record Gazette
No.133595
7/15/16
Signature
Staff Report
TO: City Council
FROM: Doug Story, Community Services Director
DATE December 20, 2022
SUBJECT: Discussion of Recreation Fees
Description Discussion of establishing a cost recovery and Sport Facility Policy Handbook.
Background and Analysis:
On December 7, 2021, City Council awarded a contract to Revenue and Cost Specialists (RCS) to conduct a Cost Allocation and Comprehensive User Fee Study to conduct a survey of current fees collected by all city departments and to analyze the needs or justifications to adjust current fees collected for services provided. The Cost of Services Study for the City of Beaumont report was presented to City Council on September 20, 2022, at which time Community Services staff began to review the findings to analyze the current amount of cost recovery for such services as: Facility Rentals and Ballfield Rentals. The report included information and financials for Direct Costs (salaries, benefits, and operating expenses), Administrative Cost s, and Maintenance Costs, ultimately providing a total to demonstrate the full amount of costs to conduct services. The total numbers were compared against the amount of revenue collected to offset those costs.
Currently, the cost recovery for services provided by the Community Services Department show 58% cost recovery for Facility Rentals and 4% cost recovery for ballfield rentals. RCS calculated these numbers by establishing the fully burdened rate for staff time and for maintenance costs associated with facility and field usage. These numbers account for the fees that are taken in for facility rentals for private events or meetings at the Albert A. Chatigny Sr. Community Recreation Center (CRC) and City Hall, park gazebos, and sports fields. The ballfield rentals cost recovery is considerably low primarily because there are no fees collected for any sports field usage at this time.
This also increases the demand for fields because Beaumont is currently one of the only cities in the area not charging for field usage. The impact on the sports field's usage is felt through the numerous requests for field space and the number of teams who do not primarily serve Beaumont residents or have a larger number of non - Beaumont residents on their team using the Sports Park and other community parks.
The only fees currently listed in the resolution approved by City Council for recreation fees are for facility rental (CRC and City Hall) and lights at sports fields. Currently, the City uses an online app-based program that collects the approved fee from users and allows them to control the lights by turning them on and off as the individual organization desires.
Sports Field Policy Handbook
The City has experienced tremendous growth in sports, including new spo rts organizations and emerging sports. Currently, the city assigns field usage to youth recreational soccer, adult soccer, youth competitive/club soccer, youth football, cheerleading, youth rugby, adult rugby, recreational baseball/softball, and competitive/club baseball and softball teams. This growth is anticipated to continue.
The increased demand for the use of City facilities makes it necessary to establish an equitable and fair method for allocating field use among present and future sports organizations.
The City of Beaumont Grounds Maintenance Division is committed to the upkeep and operation of the Sports Park and 17 other parks across the community. In addition to the mowing, edging, trimming, and irrigation maintenance in all the parks the department also absorbs the cost of utilities (water and electricity) at each of the parks.
As usage and demand have increased considerably for sports fields, the costs associated with maintenance of the fields have increased as well. As stated above, th e current cost recovery for services at parks and sports fields is 4%.
The Sports Field Policy Handbook (Attachment A) will outline the allocation and rental policies for the permitted use of sports fields in the City. In addition to these policies a recommended fee schedule for sports fields is included in the handbook; as a basis of discussion, based on the information provided by RCS as it pertains to cost recovery for ballfield rentals.
This policy has been established to ensure that the fields are used for recreational, educational and community service functions that meet the needs of the community, as well as to set clear policies, procedures, regulations, and rental rates for such uses.
Furthermore, to ensure that the needs of community-based organizations and groups are being met, the criteria for establishing priorities for field use and the permitting process are outlined in the policy manual.
As part of this process each sports field user is designated into a specific group that allows for distinction between programs in a fair and equitable manner. By creating a Priority Group Classification process, it allows City staff to apply specific fees and assign field usage based on specific criteria to ensure non -profit recreational programs
that allow for all participants to play are receiving a greater opportunity to serve the community.
The proposed fees also take into account the fees established by surrounding cities (Attachment B) for field rentals, as well as the structure for establishing fees and criteria for field allocation. The market for sports field usage varies dramatically. Some agencies choose to significantly discount the youth non-profit organizations, while other agencies only distinguish between residents and non -residents as it pertains to fees charged for sports field usage. The range of fees for Youth Non -Profits varies from $1 per hour/per field to $21 per hour/per field. Some cities choose to charge to rent the entire park, so the allocation would include all of the fields contained at one particular park; while other agencies choose to charge a per field/per hour rate. Light fees appear to range from $17 - $32 per hour per field. The current fee schedule used by the Beaumont Community Services Department does contain a fee for light usage at sports fields for $20 per hour/per field. This is currently the only fee that users are paying for usage at the fields that contain sports lighting systems.
Many surrounding cities are accounting for leagues that have a majority of residents participating on the team or league. The new Sports Field Policy Handbook allows for leagues to participate in discounted pricing by providing access into the Group 2 fees that are lower for those user groups that meet the criteria. See pages 4-6 in the Sports Field Policy Handbook. This criterion will be verified by staff during an audit of registrations. To qualify as a Resident Youth Non-Profit Organization (RYNP) - Group 2:
Organization must have a Charter.
Organization must have a Board of Directors.
Organization must have a current Determination Letter of Exempt Status, U.S.
Treasury 501c3 or certify affiliation with a national non -profit organization. Organization must have an active Determination Letter of Exempt Status, State Franchise Tax Board.
Organization must have Articles of Incorporation and/or Bylaws. Must have an affiliation with a national governing body. The national body must have governance over the association.
Organization must coordinate league within City limits, schedule games based on registration for play in Beaumont, and maintain a 85% overall residency of participants.
Registration must be open to any Beaumont resident and not based on skill level.
Every player must play. No club/elite, no travel.
Organization must submit game schedules prior to the start of season.
Schedules must match team rosters submitted.
Organization must be managed by volunteers. All coaches must be background checked and have completed coaches training.
Organization must uphold parents, coaches and participants to an approved “Code of Conduct,” as initiated in their Bylaws and rules and regulations. NOTE:
Failure to submit and uphold all members of an organization to an approved “Code of Conduct” may result in an organization’s forf eiture of all field allocations. Organization must conduct all sport related activity on issued field space and within time allocated based on permits.
The breakdown below provides a snapshot of the possible range for establishing a fee for sports field usage. The purpose of charging fees is to offset public expenses to operate, maintain, supervise, and administer the use of park and athletic facilities. The suggested fee schedule below accounts for the surrounding communities and the market rate for field usage and fees applied to users. It should be noted that any fee approved for field use will be an increase from the current standard.
All permits created, adjusted or deleted $10.00 per transaction Group 2:
Youth Group Field Use (Non-Tournament) $5.00 per hour/per field Youth Group Field Use (Tournament) $10.00 per hour/per field Group 3-6:
Youth Group Field Use (Non-Tournament) $15.00 per hour/per field Adult Group Field Use (Non-Tournament) $20.00 per hour/per field Youth Group Field Use (Non-Tournament) $30.00 per hour/per field Non-Resident Teams
Adult Group Field Use (Non-Tournament) $30.00 per hour/per field Non-Resident Teams
Tournaments $30.00 per hour/per field
Lights - Sports Park Soccer Complex $30.00* per hour/per field Lights - Rangel Park $30.00* per hour
Lights - Stewart Park $30.00* per hour
Permit Cancellation Fee $100.00
Key Deposit (Refundable) $45.00* (includes 2 keys)
Additional Keys $15.00 each key
Maintenance Worker $65.00 per hour
Park Monitor (Recreation Specialist) $20.00 per hour
*current fee in council approved Master Fee Schedule
Some neighboring cities have chosen to allow organizations to have a period to progress to the full fee schedule amount to allow for league administra tors to account
for new fees and accounting requirements that may need to be put in place to accommodate the new field usage fees. If Council chose to take that direction it would be recommended to allow that progression for Group 2 organizations only.
Facility Rentals
The Community Services Department also oversees facility rentals. Currently residents can rent the Community Recreation Center (CRC), City Hall Gymnasium, park pavilions, meeting rooms, and the kitchen at the CRC for private events and meetings. There is fee schedule previously adopted by council that is in place to account for cost recovery for these facility rentals. Analysis conducted by RCS indicates that the department is recovering 58% of the costs associated with rentals. The current fee schedule is included in the staff report as Attachment C. Council can choose to increase the current fees to effectively close the gap between the current 58% cost recovery. If this direction is given staff can work with RCS to bring fees to a m ore acceptable level while staying within the market range of neighboring cities. Staff also conducted a survey of Facility Rental Rates (Attachment D) from surrounding communities to ensure that our rates are within a reasonable market range. Since these fees are currently in the Master Fee Schedule any proposed changes would be an increase /adjustment to current fees already in place.
Fiscal Impact:
This is a discussion item only. Any set policy and sports field usage or facility usage fees will be brought back in the fee schedule at a future date.
Recommended Action:
Provide direction as to the level of cost recovery desired for sports field reservations and facility use reservations; and
Approve the Sport Facility Policy Handbook to be used with all youth and adult sports organizations to assist in administering field allocation and fees for non -profit and private users.
Attachments:
A. Sports Field Policy Handbook
B. Sports Field Fee Survey
C. Current Fee Schedule - Community Services
D. Facility Rental Survey
4
TABLE OF CONTENTS:
Introduction 2
Purpose of Policy 2
Definitions 3
Priority Group Classifications 4
Group 2 Criteria 5
Group 2 Paperwork Required 6
Allocation Period 6
Application Deadlines 6
Application Process 7
Field Allocation Process 8
Field Usage Agreement 9
Payment 9
Refund/Credit Policy 9
Three Strike Policy 9
Tournaments and Friendlies 11
User Fee Schedule 11
Reservable Fields 12
APPENDIX:
APPENDIX A, Sports Field Usage Application 13 APPENDIX B, Sports Field Application Check List 14 APPENDIX C, Rules and Regulation Agreement 15
APPENDIX D, Sports Field Organization Fact Sheet 16
City of Beaumont Sports Field Policy Handbook Page 2
INTRODUCTION:
The City of Beaumont is dedicated to fostering healthy lifestyles and creating positive sports environments for our community. The City recognizes that providing organized youth and adult sports programs is a fundamental component of this goal. Thank you for partnering with us to provide enriching sport activities for the residents of Beaumont. We value each of you and the services you provide to our community.
The City of Beaumont Community Services Department coordinates the allocation of designated City sports fields to user groups of all ages. It is the City of Beaumont’s intent to allocate sports field use to requesting qualified organizations based on residency, fairness, impartiality and need in accordance with seasonal sport priorities.
The City of Beaumont is an equal opportunity agency and will not exclude or discriminate with regard to its services, programs and activities regardless of race, color, religion, disability, sex, age, national origin, ancestry, marital status, familial status, sexual orientation, gender identity or expression. Youth and adult sports providers utilizing Beaumont’s fields and/or facilities are also required to provide equal access and cannot exclude or discriminate based on the above-mentioned criteria.
PURPOSE OF POLICY:
The City has experienced tremendous growth in sports, including new sports organizations and emerging sports. This growth is anticipated to continue. The increased demand for the use of City facilities makes it necessary to establish an equitable and fair method for allocating field use among present and future sports organizations. The policy set forth in this handbook will outline the allocation and rental policies for the permitted use of sports fields in the City.
This policy has been established to ensure that the fields are used for recreational, educational and community service functions that meet the needs of the community, as well as to set clear policies, procedures, regulations, and rental rates for such uses. Furthermore, to ensure that the needs of community-based organizations and groups are being met, the criteria for establishing priorities for field use and the permitting process are outlined in this manual.
City of Beaumont Sports Field Policy Handbook Page 3
DEFINITIONS:
Organization/User Group – An organized entity that has been established to provide recreation or competitive sports programs, activities, practices or games for youth and/or adult participants.
RYNP – Beaumont-based Resident Youth Non-Profit Organization.
League – A youth non-profit organization consisting of at least four (4) teams. The league must have multiple teams in same age bracket.
New User – This is an organization which has not requested field use and/or been permitted fields in the twelve-month period preceding its submission of an Athletic Field Use Request Form. New users must adhere to the deadlines established herein in order to be eligible for field allocations. An organization, which changes its name but otherwise remains the same, shall not be considered a “new user.” Splinter, spin-off or subsidiary organizations will be considered “new users” if they have less than fifty percent of the original organization’s participants.
A current organization that merges with another current organization shall not be considered a “new user,” provided the presidents of both merging organizations sign the allocation request form for the season in which the allocation is to take effect. New divisions of current organizations must indicate such on their Athletic Field Use Request Form.
Community Services staff will dictate the maximum amount of teams or participants for all new users. Leagues anticipating a split to form a new league or individuals planning to organize a new sports program, must notify the City six (6) months prior to the estimated starting date. This will provide the time necessary to study the impact of a new program on existing fields.
Primary User – This is a Community Services Department qualified Group 1 or 2 organization and as such, has first priority for field use during the season in which they are classified as a primary user.
Secondary User – This is a Community Services Department qualified Group 3 - 6 organization. A Group 2 user may also be considered a secondary user if they are requesting field space in a season other than that in which they are designated as a primary user for the season. A secondary user may obtain field use allocations only if: a) a field is not used by a primary user; and, b) all primary users have received all field time requested and there is unused field time not allocated to primary users.
Resident – Any participant that lives in Beaumont will be considered a Beaumont resident for priority status evaluation and allocation of athletic facilities. For the purpose of this document, “resident” shall be defined as an individual living within the incorporated boundaries of the City of Beaumont. RYNP groups must have 85% or more of the participants living within the 92223 zip code to receive priority field consideration. Verification of residency will be conducted through an audit of registration forms performed by City Staff.
City of Beaumont Sports Field Policy Handbook Page 4
It is recommended that all organizations collect proof(s) of residency from all participants and may consist of utility bills or ID with address and name on them.
Non- Resident – For the purpose of this document, “non-resident” shall be defined as any individual living outside the incorporated boundaries of the City of Beaumont. Non-resident groups having less than 85% of the participants per team living within the incorporated area of the City of Beaumont shall be classified as “non-resident”. An organization or company located outside the incorporated boundaries of the City of Beaumont shall be classified as “non-resident”. Participants unable to furnish proof of residency shall be classified as “non- resident”.
Participant – In a youth league, “participant” shall include only those players up to and including seventeen (17) years old that are fully registered with a user organization. In an adult league, “participant” shall include only those players eighteen (18) years of age or older. Non-players such as coaches, officials, staff, etc., shall not be included in the total number of organizational participants or used to calculate the percentage of residency for the purposes of allocating fields.
Recreational League – In a recreational league, rules require that everyone must play.
Registration is open to everyone.
Competitive League – In a competitive league, there is no minimum play rule, and they have a selective registration process. (Travel clubs, Travel Teams)
Code of Conduct – Approved classification Group 2 organizations must file a City approved Code of Conduct for participants, parents and coaches with the Community Services Department, as part of their permit requirements and application process. The Code of Conduct will outline the principles of sportsmanship, fair play and other ethical issues that relate to team sports.
PRIORITY GROUP CLASSIFICATIONS:
Priority use of fields will be allocated as follows:
GROUP 1
City-sponsored or co-sponsored events.
Beaumont Unified School District.
Organizations having a current joint use agreement with the City.
GROUP 2
Non-profit youth organizations comprised of at least 85% overall Beaumont residents conducting activities open to the general public and offered to all youth in the community (recreational leagues) and all players are afforded the opportunity to play no matter skill level.
City of Beaumont Sports Field Policy Handbook Page 5
Organization must submit team rosters to verify GROUP 2 eligibility and meet other criteria outlined in this policy prior to scheduled use.
GROUP 3
Beaumont based non-profit youth organizations comprised of less than 85% but at least 25% overall Beaumont residents holding activities not offered to all youth in the community with closed or invitation only sign-ups, who accept participants on their ability to play. (Club, Elite, or Travel teams)
Priority scheduling will be based on actual percentage of Beaumont residents playing in league. Must provide proof of residency (Example: utility bill) and complete team rosters including participant’s name, address, city, zip code and phone number. Organizations who cannot completely fulfill the criteria for Group 2 consideration.
GROUP 4
Beaumont residents holding activities not open to the public. Priority scheduling will be based on actual percentage of Beaumont residents.
GROUP 5
Beaumont based commercial, industrial or professional groups. Other tax supported public agencies.
GROUP 6
Non-City based persons, non-profits and business/professional organizations. Returning teams have priority over new teams.
GROUP 2 CRITERIA:
To qualify as a Beaumont Youth Non-Profit Organization (RYNP) - Group 2:
Organization must have a Charter.
Organization must have a Board of Directors.
Organization must have a current Determination Letter of Exempt Status, U.S.
Treasury 501c3 or certify affiliation with a national non-profit organization. Organization must have an active Determination Letter of Exempt Status, State Franchise Tax Board.
Organization must have Articles of Incorporation and/or Bylaws. Must have an affiliation with a national governing body. The national body must have governance over the association.
Organization must coordinate league within City limits, schedule games based on registration for play in Beaumont, and maintain a 85% overall residency of participants.
Registration must be open to any Beaumont resident and not based on skill level.
Every player must play. No club/elite, no travel.
Organization must submit game schedules prior to the start of season. Schedules must match team rosters submitted.
City of Beaumont Sports Field Policy Handbook Page 6
Organization must be managed by volunteers. All coaches must be background checked and have completed coaches training.
Organization must uphold parents, coaches and participants to an approved “Code of Conduct,” as initiated in their Bylaws and rules and regulations. NOTE: Failure to submit and uphold all members of an organization to an approved “Code of Conduct” may result in an organization’s forfeiture of all field allocations. Organization must conduct all sport related activity on issued field space and within time allocated based on permits.
GROUP 2 PAPERWORK REQUIRED:
A complete RYNP Sports Fields Use Request filing packet will consist of:
Complete team rosters including participant’s name, address, city, zip code and phone number. Included with the rosters should be a utility bill for each individual participant. Examples: gas, electric, phone, cable, and/or water bill. Not accepted:
school I.D., driver’s licenses or birth certificates. NOTE: The City of Beaumont and its staff reserve the right to audit or verify any information submitted on rosters at any time to verify participation or residency. Incomplete rosters or rosters with less than the age division or minimum player rule per team will not be accepted. Complete list of names, addresses, telephone numbers and email addresses of current Board of Directors.
Articles of Incorporation and/or Bylaws.
Valid Certificate of Insurance and Endorsement
Valid Determination Letter of Exempt Status, U.S. Treasury. Valid Determination Letter of Exempt Status, State Franchise Tax Board. Master Calendar of events.
Valid City of Beaumont Business License.
Signed Field Use and Maintenance Agreement.
Sample Code of Conduct.
IMPORTANT NOTE: Failure to submit the above-mentioned information by the specified deadlines may result in loss of priority status and possible loss of some or all requested fields.
ALLOCATION PERIOD (For Leagues):
SPRING
January 15- June 1 RYNP Baseball and Softball Organizations January 15- June 1 RYNP Soccer Organizations
January 15- June 1 RYNP Football Organizations
FALL
August 15 – December 15 RYNP Baseball and Softball Organizations August 15 – December 15 RYNP Soccer Organizations
August 15 – December 15 RYNP Football Organizations
City of Beaumont Sports Field Policy Handbook Page 7
Annual Maintenance closures- June 1st to August 15th & December 15th to January 15th.
APPLICATION DEADLINES:
RYNP Organizations Athletic Fields Request Forms/Applications and required paperwork shall be accepted November 1-December 15 for spring sports and June 1-July 15 for fall sports.
Adult Leagues Athletic Fields Request Forms/Applications, Beaumont business license and proof of insurance must be received forty-five (45) days prior to beginning of league play.
Travel Ball Teams Athletic Fields Request Forms/Applications, Beaumont business license and proof of insurance must be received at time of request. Fields available on a first come basis based on availability after Group 2 has been allocated.
Occasional or one time only user requests must be submitted on appropriate forms seven (7) days prior to requested facility use date.
Users requesting field space in the off-season or who do not meet the application deadline will be assigned field space after allocations have been made if space is available.
APPLICATION PROCESS:
The allocation process begins with the semi-annual Sports Field Allocation Meeting.
Typically held in December & July, this is where current primary users discuss policies, procedures, residency requirements, field application, permits, rentals, list of required documents and other pre-requisites. Organizations not sending a representative may lose their priority rating for scheduled use of facilities.
Sports Field Request Forms to reserve the use of athletic fields are made through the City of Beaumont Community Services Department. Priority will be given to qualified groups submitting an application prior to the deadline. Applications must be submitted a minimum of forty-five (45) days prior to intended use.
All applications are subject to review by the Recreation Division and may be rejected based on date submitted, field availability and/or outstanding balance due on account.
Upon approval, applicant is financially responsible for any charges/fees applicable for use of facility. Fees must be paid in full a minimum of thirty (30) days prior to field rental date.
Credit will be given for cancellations or changes made more than fourteen (14) days before an event. The applicant will forfeit all payments/deposits and will be held financially responsible for all outstanding fees associated with the permit for events cancelled within fourteen (14) days before an event. User group may adjust permit to increase usage, but are not permitted to reduce use.
City of Beaumont Sports Field Policy Handbook Page 8
The City of Beaumont reserves the right to cancel Sports Fields Use Permits without notice due to unforeseen circumstances and/or renovation schedules.
Each RYNP organization filing a Sports Field Use Request will be required to submit all documentation to the Community Services Department no later than thirty (30) days prior to start of season. Failure to submit the required documentation by the specified deadlines may result in the following penalties:
New Users – Denied all use for the upcoming allocation period. Returning Users – May not receive some or any fields requested.
FIELD ALLOCATION PROCESS:
Allocations will not be finalized until all required documentation has been submitted.
Permits are created based on the following criteria: season, sport, number of teams per organization, group classification, age division and league seniority. Permit requests are reviewed with the RYNP Organizations. User group meetings are scheduled to review allocated field space with all assigned users on each field to resolve any schedule conflicts.
Permits and user agreements are emailed/mailed to the Rental User Groups. Any RYNP organization that has been allocated space and does not intend to use it regularly, must notify the Community Services Department in writing at least two (2) weeks prior to their intent to release their allocation. Any applicable fees will be collected with less than two weeks notice. Released fields will be evaluated and re- allocated per the allocation guidelines. Any fields released by an organization will not be re-instated, but may be requested for the following allocation period.
Use of facilities will be limited to weekdays, 2:00 p.m. – 10:00 p.m., and Saturdays and Sundays, 8:00 a.m. – 10:00 p.m. Permits may be extended on a conditional use agreement.
Park curfew is 10:00 p.m. – 7:00 a.m. Sports Fields are closed from time to time for maintenance and on all major holidays. Permits may be obtained on a rental basis or conditional use agreement. Groups failing to comply with scheduled field closures may have their permits revoked.
First priority is to provide game facilities and to maintain the facility. Practice requirements are the second priority.
For the purposes of field scheduling, any league in Group 3 that has 75 - 90% Beaumont residents will have priority scheduling over leagues with 50 - 74% Beaumont residents.
Leagues with 50 - 74% Beaumont residents will have priority over leagues with 1 - 49% Beaumont residents.
City of Beaumont Sports Field Policy Handbook Page 9
In allotting facilities, the City will also consider returning teams in each group, over new teams. New teams desiring field use will be placed on a one year wait list. This applies to leagues anticipating a split to form a new league/program or individuals planning to organize a new sports program. This will provide the time necessary to study the impact of the new program on existing facilities.
Every attempt will be made to meet schedule requests. However, youth organizations should not assume field availability for new/or expanding programs.
The City has the final say in which field(s) your organization is assigned. Priority does not guarantee that your organization will receive all the fields or times requested.
FIELD USAGE AGREEMENT:
All users will be required to sign a Field Usage Agreement annually. The agreement spells out specific usage requirements including, insurance requirements, maintenance responsibilities, and City contact information.
PAYMENT:
All user groups will pay for field use.
User groups may set up a scheduled payment plan with the City of Beaumont to ensure that all monies are paid thirty (30) days prior to use. Payments are based on the total balance due, not the balance for use “to-date”. Outstanding balances may not be carried over into the next allocation period. Payments may be made to the City of Beaumont, Community Services Department.
Failure to pay the outstanding balance on or before the end of the allocation period will result in the group forfeiting priority on traditional fields and non-issuance of permits for upcoming allocation periods.
REFUND/CREDIT POLICY:
No refunds. Accounts may be credited and/or revised based on usage, cancellation or rescheduled date.
Cancellations due to rain or inclement weather must be reported to the Community Services Department. Permits will be credited for weather-related cancellations. Please contact the Community Services Department to report your field cancellation, Monday through Thursday, 8:00 a.m. - 5:00 p.m. and Friday, 8:00 a.m. – 12:00 p.m. at (951) 769-8524. Please follow up via e-mail to report cancellation due to inclement weather or field condition.
City of Beaumont Sports Field Policy Handbook Page 10
THREE STRIKES POLICY:
Purpose – The purpose of this policy is to implement a systematic method of enforcing the Municipal Code and the Sports Fields Policy Handbook.
IMPORTANT NOTE: Strikes issued should serve as a warning sign to potential issues that may immediately jeopardize all permits held by the organization.
Policy – The City of Beaumont reserves the right to cancel or suspend approved outdoor field permits for games, practices and other usages based on user groups violating the City Municipal Code or established Sports Fields Policy Handbook.
The following are examples that may result in strikes being issued:
Illegal use of fields without a permit.
Illegal use of park space not designated for intended athletic sport related use. Vending on City premises without permit or written consent from the Community Services Department.
Organizations found to be practicing or playing games prior to or outside of their permitted time and/or date.
Organizations found to be practicing or playing games in locations other than those authorized by the City of Beaumont.
Organizations found to be sub-letting or swapping field permits with any other organizations.
Organizations found to be practicing or playing games on fields which have been previously closed due to inclement weather or any other purpose. Organizations failing to meet monthly financial obligations. Organizations conducting adult practice and/or games on fields allocated to youth. Organizations not utilizing permitted fields and leaving the lights on. League representative disrespecting a field monitor or organization representative.
Strike One:
Consists of documented activity in direct violation of the City Municipal Code or Sports Fields Policy.
Penalty – A letter will be written to the user group president and field allocation representative documenting the violation. The letter will be placed in the group’s file.
This may be appealed to the Community Services Department designee.
Strike Two:
Occurs after a second documented violation within a current allocation period. Penalty – The group will be informed in writing that a Community Services staff member will be assigned to their permitted activity at the respective park where the violation occurred. The staff member will monitor activity at the site and report any further violations to the City, at cost to user. This may be appealed to the Community Services Department designee.
City of Beaumont Sports Field Policy Handbook Page 11
IMPORTANT NOTE: Staff costs will be absorbed by the organization as stated by the City of Beaumont Schedule of Fees.
Strike Three:
The third documented violation within the current allocation period. Penalty – All permits held by said organization/entity for the remainder of the allocation period and future allocation will be revoked. This may be appealed to the Community Services Department designee.
TOURNAMENTS AND FRIENDLIES:
All RYNP, resident and non-resident youth organizations conducting Friendlies or tournaments must pay applicable fees determined by the City of Beaumont’s User Fee Schedule.
RYNP conducting non-league or charter-sanctioned games, practices, Friendlies, tournaments or sport related activities must pay applicable fees determined by the City of Beaumont’s User Fee Schedule.
Rental groups conducting tournaments or Friendlies must pay in full at the time of reservation.
The organization is responsible for cleaning facility following the event. Under the permit, the organization assumes financial responsibility for any damages, maintenance, excessive trash pickup, and/or field repairs associated with the use of facilities.
USER FEE SCHEDULE:
The City charges fees to offset public expenses to operate, maintain, supervise and administer the use of park and athletic facilities. Fees for use of sports fields shall be in accordance with current Schedule of Fees, set by resolution and approved by City Council.
All permits created, adjusted or deleted $10.00 per transaction Group 2:
Youth Group Field Use (Non-Tournament) $5.00 per hour/per field Youth Group Field Use (Tournament) $10.00 per hour/per field Group 3-6:
Youth Group Field Use (Non-Tournament) $15.00 per hour/per field Adult Group Field Use (Non-Tournament) $20.00 per hour/per field Youth Group Field Use (Non-Tournament) $30.00 per hour/per field Non-Resident Teams
Adult Group Field Use (Non-Tournament) $30.00 per hour/per field Non-Resident Teams
Tournaments $30.00 per hour/per field
Lights - Sports Park Soccer Complex $30.00 per hour/per field Lights - Rangel Park $30.00 per hour
Lights - Stewart Park $30.00 per hour
Permit Cancellation Fee $100.00
City of Beaumont Sports Field Policy Handbook Page 12
Key Deposit (Refundable) $45.00 (includes 2 keys)
Additional Keys $15.00 each key
Maintenance Worker $65.00 per hour
Park Monitor (Recreation Specialist) $20.00 per hour
RESERVABLE FIELDS:
Sports Fields
Name Location
Sports Park Soccer Field 1 Beaumont Ave and Brookside Ave Sports Park Soccer Field 2 Beaumont Ave and Brookside Ave Sports Park Soccer Field 3 Beaumont Ave and Brookside Ave Sports Park Soccer Field 4 Beaumont Ave and Brookside Ave Sports Park Football Field
(& Snack bar field area) Beaumont Ave and Brookside Ave Sports Park Baseball Field 1 Beaumont Ave and Brookside Ave Sports Park Baseball Field 2 Beaumont Ave and Brookside Ave Sports Park Baseball Field 3 Beaumont Ave and Brookside Ave
Fallen Heroes Park multi-purpose
(Upper field) Oak View Drive and Iris St
Fallen Heroes Park multi-purpose
(Lower field) Oak View Drive and Iris St
DeForge Park multi-purpose Field Seneca Springs Pkwy and Potrero Blvd DeForge Park Baseball Field 1 Seneca Springs Pkwy and Potrero Blvd
Rangel Park Baseball Field W 4th Street and B Street
Three Rings Ranch Baseball Field Calumet Ave and Brookside Ln Three Rings Ranch Multi-purpose field Calumet Ave and Brookside Ln
Community Park Space
Stetson Park Multi-purpose field (East field) Morgan Ave and S Monte Verde Dr Stetson Park Multi-purpose field (West field) Morgan Ave and S Monte Verde Dr
Palmer Park Baseball Field Palmer Ave and Trevino Trail Palmer Park Multi-Purpose Field Palmer Ave and Trevino Trail
Trevino Park Baseball Field Tukwet Canyon Pkwy
Trevino Park Multi-purpose field Tukwet Canyon Pkwy
Shadow Creek Park Multi-purpose field Oak Valley Pkwy and Gateway Dr/Connor Ct
Wildflower Park Multi-purpose field Tulip Circle S and Tulip Circle W
Mountain View Park Multi-purpose field Sunburst Dr and Sundance Cir
Mickelson Park Multi Purpose Field Mickelson Dr and Ford St
City of Beaumont Sports Field Policy Handbook Page 13
Mickelson Park Multi-purpose field Mickelson Drive
City of Beaumont Sports Field Policy Handbook Page 14
City of Beaumont Sports Field Policy Handbook Page 15
City of Beaumont
SPORTS FIELD USE RULES AND REGULATIONS
1. Groups wishing to utilize a field must acquire a permit with the City of Beaumont.
2. It is the responsibility of the person in charge and identified on the permit to enforce the rules and regulations regarding the conduct of the group while on permitted facilities.
These rules include, but are not limited to:
Use will begin no earlier than 8:00 a.m. Use will end at dusk on unlit fields and end by 10:00 p.m. on lit fields, except where noted on approved special permits. Permitted use begins and ends at the times stated on the permit, including set-up and clean up.
Users may not make any alterations to facility without first obtaining the City’s permission. Parking is allowed in designated areas only. Vehicles are not permitted on the grass. Applicant’s copy of the use permit must be available during use and presented to any City Representative upon request.
No team can transfer its field use privilege without City consent. ALCOHOL/TOBACCO IS NOT ALLOWED AT ANY CITY OF BEAUMONT FACILITIES. Selling of food or other items is permitted in City concession/snack bar facilities only. A Health Permit and City of Beaumont Business License is required for all concession and snack bar facilities. Primary user has priority use of snack bars. Sound amplification equipment will be allowed in City parks subject to conformance with the City’s noise ordinance.
Property boundary walls and fences are not to be used as backstops at any time. Balls and any other equipment thrown, batted, kicked or otherwise, landing on private property must not be retrieved without the property owner’s permission. Portable goals and/or markers are allowed, but must be removed daily. Leagues must adhere to all rules and regulations limiting the number of teams per field. The field and adjoining areas affected by the group’s use must be picked up and cleared of all trash and debris generated by the group.
Equipment stored by the league is not the responsibility of the City. Wet Field Policy: Groups may not play on fields closed due to wet field conditions. It is the responsibility of groups to access field closure information by contacting the City of Beaumont Community Services Department at (951) 769-8524.
Non-Adherence to any of these rules or City ordinances will result in the retention of a portion of or all of the deposit and/or result in the cancellation of current and/or future use.
Emergency Contact Information: In the event of any medical emergency, contact 911 immediately.
All other questions pertaining to sports fields should be directed to the Community Services Department at (951) 769-8524.
Any user failing to comply with established guidelines and notifications is subject to invoicing for all damages incurred to facility and termination of the facility use permit.
Applicant Signature: Date:
City of Beaumont Sports Field Policy Handbook Page 16
One Flat Rate Lights Per Hr Youth Non- Profit
REDLANDS $21 per hr, per field* $32 $5 per hour/per field Deposit Youth Non-profit Private Youth Without Lights Private Youth With lights Private Adult Without Lights Private Adult With Lights YUCAIPA $54 Lights $8 per hr Resident $5 per field/per hr Resident $14 per field/per hr Resident $16 per field/per hr Resident $25 per field/per hr No field hourly rate *Non-Resident $7 per field/per hr Non-Resident $18 per field/per hr Non-Resident $21 per field/per hr Non-Resident $32 per field/per hr *These groups pay a per player fee they call a Facility Enhancement Fee. The fee is $5.50 per resident participant, and $7.25 per non-resident. Based on total participation in youth league Private/Commercial Non Profit Lights
BANNING $30 per field $30 per field $17 per hr (2hr min) Lights Group 1 Group 1 & Group 1 Non Residents Group 2 & Group 2 Non Residents Group 3 & Group 3 Non Residents MORENO VALLEY Youth $18.80 per hr Resident Youth Non Profit Adult Non profit Adult & youth private Organized Commercial group Adult $21.90 per hr $7.80 per hr $7.80 per hr $15.60 per hr $78.50 per hr NR Youth $24.40 per hr
NR Adult $28.40 per hr
Deposit Games/Tournaments Practices (1 hr min)Practice Lights SAN JACINTO Location 1 $100 per field location 1: $175 per field/per day location 1: $10 per hr location 1: $25 per hr Location 2 $100 per field location 2: $250 per field/per day location 2: $10 per hr location 2: $25 per hr Deposit Non-Profit and Residents Groups and Non-Residents Admin Fee HIGHLAND $500 $10 per hour $25 per hour $10 per reservation Residents Non-Residents
HESPERIA $20 per hour $25 per hour
Non-Profit Resident Youth Group Non-Profit Resdient Adult Group Resident Commercial & Non-Resident Non-Resident Commercial Private Adult With Lights RIALTO $15 per field $20 per field $30 per field $40 per field Resident $25 per field/per hr Youth Non-Profit Adult No Lights Adult With Lights
PERRIS $7 per hour, per park $15 per hour, per park $25 per hour, per park 90% of the participants must be residents
Youth Non-Profit Resident Youth Profit Resident Youth Non-Profit Non Resident Adult Resident Groups Adult Non Resident Groups Lights COLTON $6 per hour $12 per hour $26 per hour $29 per hour $58 per hour Resident - $18 Non Residetn $26 Private Youth Group No Lights Private Youth Group with Lights Adult Group No Lights Adult Group With Lights Artifiacal Turf Facility usage Upgrade FONTANA $20 per hour - per field $40 per hour - per field $30 per hour - per field $45 per hour - per field $15 per hour - per field Reident* Youth Non Profits Reident* Youth Non Profits Resident Youth Sports Organizations (Club/Travel) $1 per hour - per field $10 per hour - per field $15 per hour - per field 80%-100% residency $10 per hour - per field for lights $15 per hour - per field for lights $7.50 per hour-per field for Turf Upgrade $10 per hour-per field for Turf Upgrade 50%-80% residency 50% residency minimum
Pavilion/Park Rental
Service Name Fee Description Adopted Fee
Pavilion Deposit (Refundable)Deposit 40.00$
Rental Rate (Civic Groups, Non-Profits, Clubs/Associations, Otlier Gov't Agencies)Fixed Fee 25.00$ - first 2 hour (minimum) Rental Rate (Private Parties, Commercial Events)Fixed Fee 50.00$ - first 2 hour (minimum) Extra Hours (Civic Groups, Non-Profits, Clubs/Associations, Other Gov't Agencies)Per Hour 10.00$ Extra Hours (Private Parties, Commercial Events)Per Hour 15.00$ Gym/Auditorium Rental
Service Name Fee Description Adopted Fee
Gym/Auditorium Deposit (Refundable)Deposit 500.00$
Rental Rate (Civic Groups, Non-Profits, Clubs/Associations, Other Gov't Agencies)Fixed Fee 120.00$ - first 2 hour (minimum) Rental Rate (Private Parties, Commercial Events)Fixed Fee 220.00$ - first 2 hour (minimum) Extra Hours (Civic Groups, Non-Profits, Clubs/Associations, Other Gov't Agencies)Per Hour 40.00$ Extra Hours (Private Parties, Commercial Events)Per Hour 100.00$ Meeting Room Rental
Service Name Fee Description Adopted Fee
Meeting Room Deposit (Refundable)Deposit 45.00$
Rental Rate (Civic Groups, Non-Profits, Clubs/Associations, Other Gov't Agencies)Fixed Fee 50.00$ - first 2 hour (minimum) Rental Rate (Private Parties, Commercial Events)Fixed Fee 100.00$ - first 2 hour (minimum) Extra Hours (Civic Groups, Non-Profits, Clubs/Associations, Other Gov't Agencies)Per Hour 15.00$ Extra Hours (Private Parties, Commercial Events)Per Hour 40.00$ Prior Day Set Up Fixed Fee 100.00$
Misc. Rentals
Service Name Fee Description Adopted Fee
Kitchen Rental Fixed Fee 150.00$
Staff Per Hour 20.00$
Overtime Staff Per Hour Actual Cost
Cancellation Fixed Fee 100.00$
Park Restroom Key Deposit (Refundable)Deposit 40.00$
COMMUNITY SERVICES (current)
City Meeting Room - Small Meeting Room - Large Auditorium/Gymnasium Kitchen Fitness Room Park Pavillion Staff Fee MISC.
Banning Private/Commercial - $60 and
$200 deposit
Private/Commercial - $70 and
$200 deposit
Private/Commercial - $140 and $200
deposit *Only available with gym NA $30 and no deposit $20/hour weekdays Non Profit - $35 and $100
deposit
Non Profit - $35 and $100
deposit Non Profit - $70 and $100 deposit Private - $325 / Non Profit - $200 with $100/$200 deposit $27/hour weeknights/weekends Yucaipa $40/hour $75/hour $200/hour $150/day $75/hour NA $22.20/hour Resident discount - 10%
Deposit - $100 Deposit - $100 Deposit - $100 Deposit - $100 Deposit - $100 Redlands $27/hour during business hours $27/hour during business hours $65/hour during business hours 54/day $27/hour during business hours NA NA Weekend rates: $208 - $584 Weekend rates: $208 - $585 Weekend rates: $340 - $510 Weekend rates: $208 - $584 Moreno Valley Resident/Non Profit - $45.75 -
$57.50/hour Resident/Non Profit - $61/hour Resident/Non Profit - $61/hour *Only available with gym Resident/Non Profit - $36.50/hour Resident/Non Profit - $61/hour Park fees are for open spaces.
Non Resident/Commercial -
$169 - $80.50/hour
Non Resident/Commercial -
$121/hour
Non Resident/Commercial -
$121/hour Resident/Non Profit - $97.75 - $121/hour Non Resident/Commercial - $91/hour
Non Resident/Commercial -
$79.25/hour
All fees are proposed
2023 fees.
Deposit - $340 Deposit - $340 Deposit - $576.50 Non Resident/Commercial - $121 - $143.75/hour Deposit - $288 - $576.50 Deposit - $8625 - $576.50
Staff Report
TO: City Council
FROM: Jennifer Ustation, Finance Director
Lisa Leach, CPA, Assistant Finance Director
DATE December 20, 2022
SUBJECT: FY2021-2022 Annual Comprehensive Financial Report and Report of Internal Control Over Financial Reporting
Description Review the City’s Annual Comprehensive Financial Report and Report of Internal Control Over Financial Reporting.
Background and Analysis:
On an annual basis the City is required to have an independent audit of its financial statements. The audit for FY2022 has been completed and is included as Attachment A.
The audit provides for an unmodified (“clean”) opinion, which means that the financi al statements present fairly in all material respects, the financial condition of the City. The audit process includes an interim period of review of internal controls and testing of transactions and year-end balances. Both processes are completed by the independent auditors.
The ACFR is divided into the following sections:
Introductory Section – Includes a Letter of Transmittal to introduce the ACFR and provide a profile of the government, and information that is useful in assessing a government’s economic condition and organizational information.
Independent Auditor’s Report on Financial Statements – provides an opinion on the reasonable assurance about whether the financial statements as a whole are free from material misstatement.
Management Discussion and Analysis – provides management’s discussion of the financial condition of the City and the results of operations for the year ended FY 2021-2022.
Financial Statements – this provides for detailed financial results of both government activities and business type activities along with the change in financial position for the City during the fiscal year July 1, 2021, through June 30, 2022.
Notes to the Financial Statements – this provides additional information regarding a summary of significant accounting policies, including valuation of assets and liabilities.
Supplementary Information – this provides for comparative data with information from prior years.
Statistical Section – provides financial trends, revenue capacity, debt capacity, demographic, economic and operating information which provides a context for assessing a government’s economic condition.
Internal Control Over Financial Reporting
The auditors consider the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing their opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.
Within this report the auditors will identify any deficiencies they encountered in their testing of internal control over financial reporting.
A deficiency in internal controls exists when the design or operation of control does not allow management or employees to prevent or detect and correct misstatements on a timely basis. There are two types of deficiencies, a material weakness and a significant deficiency. A Material Weakness is a deficiency that a material misstatement of the City’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency in internal control that is less severe than a material weakness.
During the audit this year, RAMS identified no significant deficiencies, a first for the City.
There was one carryover deficiency that addressed one deficiency as having been corrected since the last audit.
Finance and Audit Committee Review
The Finance and Audit Committee met on November 28, 2022, to review and discuss the drafts of these reports. The committee recommended to move forward to the City Council once they were in final form.
Fiscal Impact:
There is no fiscal impact with this item.
Recommended Action:
It is recommended the City Council receive and file the FY 2022 Annual Comprehensive Report and associated reports.
Attachments:
A. FY2022 Annual Comprehensive Financial Report
B. FY2022 SAS114 Letter
C. FY2022 Report on Internal Control Over Financial Reporting D. Rogers, Anderson, Malody & Scott, LLP Presentation
City of Beaumont
Beaumont, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
City of Beaumont, California
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
For the fiscal year ended June 30, 2022
Prepared by the Finance Department
Jennifer Ustation, Finance Director
Lisa Leach, CPA, Assistant Finance Director
Jacqueline Miranda, Accounting Technician
Tara Astran, Budget Specialist
Justine Wickman, Accounting Technician
Lina Chowdhury, Senior Accountant
City of Beaumont
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
This page intentionally left blank.
CITY OF BEAUMONT
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
INTRODUCTORY SECTION
Letter of transmittal i
Principal Officers x
Organization chart xi
FINANCIAL SECTION
Independent Auditor’s Report .................................................................................................1
Management’s Discussion and Analysis ................................................................................5
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position ..................................................................................................16 Statement of Activities .......................................................................................................18
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet - Governmental Funds ...........................................................................21 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ...................................................23 Statement of Revenues, Expenditures, and Changes in Fund Balances .......................24 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities .....26
Proprietary Fund Financial Statements:
Statement of Net Position ...............................................................................................28 Statement of Revenues, Expenses, and Changes in Net Position ................................29 Statement of Cash Flows ...............................................................................................30
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ...............................................................................33 Statement of Changes in Fiduciary Net Position ............................................................34
Notes to the Basic Financial Statements ..........................................................................37
Required Supplementary Information (Unaudited):
Budgetary Information ........................................................................................................88 Budgetary Comparison Schedule – General Fund ............................................................89
CITY OF BEAUMONT
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
Page
FINANCIAL SECTION (continued)
Required Supplementary Information (Unaudited) (continued):
Budgetary Comparison Schedule – Development Impact Fees (DIF) Special Revenue Fund ...................................................................................................90 Schedule of Proportionate Share of the Net Pension Liability and Related Ratios ............91 Schedule of Pension Plan Contributions ............................................................................93
Supplementary Information:
Major Governmental Funds:
Budgetary Comparison Schedules
Community Facilities District (CFD) - Capital Projects Fund ..........................................95 General Capital Projects - Capital Projects Fund ...........................................................96 Beaumont Financing Authority - Debt Service Fund ......................................................97
Non-Major Governmental Funds:
Combining Balance Sheet .................................................................................................98 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ......101 Budgetary Comparison Schedules
State Gas Tax Fund .....................................................................................................104 Road Maintenance and Rehabilitation Act Fund ..........................................................105 Measure A Fund ...........................................................................................................106 AB 2766 Fund ..............................................................................................................107 PEG Fees Fund ............................................................................................................108 Other Federal Grants Fund ..........................................................................................109 COPS Grand Fund .......................................................................................................110 State Asset Seizure Fund .............................................................................................111 Other Special Revenue Fund .......................................................................................112 Community Facilities Districts (CFD) ............................................................................113
Fiduciary Funds:
Combining Statement of Fiduciary Net Position ..............................................................114 Combining Statement of Changes in Fiduciary Net Position ...........................................115
CITY OF BEAUMONT
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
Page
STATISTICAL SECTION (UNAUDITED)
Net Position by Component 116
Changes in Net Position .........................................................................................................118 Governmental Activities Tax and Assessments Revenues by Sources ..................................122 Fund Balances of Governmental Funds .................................................................................123 Changes in Fund Balances of Governmental Funds ..............................................................125 General Fund Tax Revenue by Source ..................................................................................127 Top 25 Sales Tax Producers ..................................................................................................128 Taxable Sales by Category .....................................................................................................130 Assessed Value and Estimated Actual Value of Taxable Property .........................................131 Direct and Overlapping Property Tax Rate .............................................................................133 Principal Property Taxpayers ..................................................................................................134 Property Tax Levies and Collections ......................................................................................135 Ratios of Outstanding Debt by Type ........................................................................................136 Direct and Overlapping Governmental Activities Debt ............................................................137 Computation of Legal Debt Margin .........................................................................................139 Pledge Revenue Coverage .....................................................................................................141 Demographic and Economic Statistics ...................................................................................142 Principal Employers ................................................................................................................143 Full-Time Equivalent City Governmental Employees by Function ..........................................144 Operating Indicators by Function ............................................................................................145 Capital Assets Statistics by Function ......................................................................................146
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City of Beaumont | 550 E. 6th Street, Beaumont, CA 92223 | (951) 769‐8520 | BeaumontCA.gov
December 20, 2022
To the Honorable Mayor, Members of the City Council, and the Citizens of Beaumont:
It is with great pleasure that we present to you the City of Beaumont’s (City’s) audited Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022. The financial statements within this report are presented in conformity with the generally accepted accounting principles (GAAP) and have been audited in accordance with generally accepted auditing standards (GAAS) and Government Auditing Standards (GAGAS) by an independent certified public accounting firm.
The ACFR includes the financial activity for all funds of the City, Financing Authority, Public Improvement Authority and Fiduciary Funds. The report is organized into three major sections which include the Introductory Section, the Financial Section, and the Statistical Section.
Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal controls established for this purpose, which include an array of administrative procedures. These controls are designed to provide reasonable, but not absolute, assurance to safeguard City assets against loss from unauthorized use or disposition, as well as the reliability of financial records for accurate and fair presentation of financial reports. The concept of reasonable assurance recognizes that the cost of specific controls should not exceed the benefits likely to be derived from exercising the controls, and that this evaluation involves estimates and judgements by management. It is believed that the City’s internal accounting controls adequately safeguard City assets and provide reasonable assurance of proper recording of financial transactions.
Rogers, Anderson, Malody & Scott, LLP, Certified Public Accountants, have issued an unmodified (“clean”) opinion on the City of Beaumont’s financial statements for the year ended June 30, 2022.
The independent auditor’s report is located at the front of the financial section of this report.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.
PROFILE OF THE GOVERNMENT
Beaumont was incorporated on November 18, 1912, is located 79 miles east of Los Angeles, 111 miles northeast of San Diego and 28 miles west of Palm Springs. Beaumont’s incorporated area encompasses two of the region’s most important highway interchanges, IH-10 and SR-60 and IH- 10 and SR-79. Beaumont (beautiful mountain), originally the community of the San Gorgonio Pass, began its roots as an ideal route for the transport of goods and services from the Missouri River to the Pacific Ocean. The Pass Area remains an important route for the transportation of
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goods and services from the West Coast today. Since the early 2000s Beaumont has undergone a major building boom and for several years has remained one of the fastest growing cities in Riverside County, mainly due to its housing affordability and convenient proximity to major urban centers. Beaumont’s median income is $88,392 which is 21.5% higher than the average for Riverside County.
As presented in the ten-year population
history chart, Beaumont’s population has
significantly increased over the past 10 years.
The 2020 US Census estimated the
population to be 52,686. The California
Department of Finance now estimates the
2022 population has grown to 54,690, an
increase of 2,004 from 2020 (3.66% growth).
Beaumont is a “general law” city governed by a city council/city manager form of government.
Within the City are multiple special districts which are separate entities with their own, duly elected governing boards. Beaumont is governed by a 5-member City Council, from which the Mayor and the Mayor Pro tempore are selected annually. The City Council appoints the City Manager, who is responsible for the daily operations of all City departments, and the City Attorney.
The City’s operating departments are City Council, City Clerk, Administration, Finance/Budget, Community Development, Community Services, Public Safety, Public Works, Transit, and Wastewater.
Basic local governmental services are provided including police, fire protection (through contract with Riverside County), maintenance and construction of public improvements, cultural, recreation, planning, zoning, transportation, sewer, and general administration. Financial administration of the City is the responsibility of the Finance Director, who supervises the City’s fiscal administration and includes the day-to-day accounting, budgetary and reporting compliance, revenue and cash management, and debt administration operations.
THE REPORTING ENTITY
The ACFR includes all activities carried out by the City as a legal entity, including the activities of the Beaumont Successor Agency, Beaumont Utility Authority (BUA), Beaumont Financing Authority (BFA), Beaumont Parking Authority (BPA), and the Beaumont Public Improvement Authority (BPIA). The City is financially accountable for each of these authorities as specified by the guidance of the Governmental Accounting Standards Board (GASB).
ACCOUNTING SYSTEMS AND BUDGETARY CONTROL
The City’s fund accounting records are maintained using a modified accrual basis of accounting, as explained in the Notes to the Financial Statements, and is subject to the accounting practices for governmental units as mandated by (GASB). Basic City operations are accounted for in the City’s 0 20,000
40,000
60,000
20122013201420152016201720182019202020212022City of Beaumont Population History
iii
General Fund, with other activities accounted for in separate funds as required by law or determined by management discretion.
The Government-Wide financial statements (Statement of Net Position and Statement of Activities) follow the accrual basis of accounting. As required by GASB, an accompanying summary reconciliation schedule is presented following the Governmental fund financial statements. These reconciliation schedules are presented on pages 23 and 26 in the body of the financial statements.
The Finance Director is charged with the responsibility for the receipt and disbursement of all monies and to maintain control over all expenditures to ensure that budget appropriations are not exceeded. The level of budgetary control, that is the level at which expenditures are not to exceed Council approved appropriations, is established at the fund and department level. The City Manager has authority to amend the budget within a departmental appropriation; however, changes in employee counts must be approved by the City Council. Adjustments at the object level within major categories of expenditures are permissible at the department level, however, adjustments involving transfers between major categories of expenditures, between departmental and division budgets, or between departments within the same fund, require Finance Director recommendation and City Manager approval. All appropriations lapse at year-end and become available for re- appropriation the following year through the appropriate budgetary process, upon recommendation by the City Manager for City Council consideration.
SIGNIFICANT EVENTS AND ACCOMPLISHMENTS
Economic Development
The City completed a retail market analysis and identified its retail trade area. Proactive retail recruitment strategies have been implemented utilizing data from market analysis. The City also established the Beaumont Business Resource Center page on the City’s website. This webpage provided businesses with information about safety measures and mandates, funding opportunities from various sources, and business counseling. The City launched a retail tenant recruitment program utilizing The Retail Coach services. The campaign utilized data and research from the EDSP and Retail Market Analysis and met with management of existing centers to identify current needs and opportunities. The program leverages the strengths of Beaumont’s primary retail trade area.
Community Development
Beaumont adopted the 2040 General Plan Update which was a major update to the 2007 General Plan. The update was recognized by the American Planning Association and awarded the 2021 Comprehensive Plan Small Jurisdiction Award. The City also completed a Downtown Area Plan that provides a detailed vision, guiding principles, and goals and policies for the City’s historic core. It recognizes the importance of this area to the identity of the community and is the guiding document for the revitalization and redevelopment of the downtown core. The city also completed the Housing Element Update process and implemented new Housing Element programs.
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Public Safety
In Fiscal Year 2021/2022, Beaumont Police Department in partnership with the County of Riverside and the cities of Banning and Calimesa, established a Community Behavioral Assessment Team (CBAT). This team has been trained to respond to and deal with mental health emergencies. Not only does this team help those experiencing a mental health crisis, but it also allows our patrol offices to focus on crime-related issues. In partnership with the County of Riverside’s Emergency Management Department (EMD), and the Beaumont Unified School District, a position was created to plan, oversee, and coordinate city and school staff response to emergency situations.
Public Works
The City of Beaumont Public Improvement Program included the fiscal year 2020/2021 Street Rehabilitation Project and fiscal year 2020/2021 Mid-Year Street Maintenance Project. To date, 130.2 lane miles of road have been rehabilitated with more than 100 lane miles planned in the next two years. The City is currently in the final design and the draft environmental document preparation for the Pennsylvania Avenue interchange which currently hosts a westbound off-ramp and eastbound on-ramp only. Pennsylvania Avenue’s two lanes of traffic intersect with the Union Pacific Railroad at an at-grade intersection south of the I-10 freeway. Two existing grade separations within the vicinity of the project at Beaumont Avenue and Highland Springs Avenue experience a high volume of traffic due to regional commuters and shoppers. In order to avoid congestion at these locations, an increasingly high volume of vehicles are using Pennsylvania Avenue. The first phase of the project will be widening Pennsylvania Avenue to four lanes between First Street and Sixth Street and will also include protected dual turns from northbound Pennsylvania Avenue to westbound Sixth Street. Construction of the widening is set to begin in early 2023 and is expected to take 6-9 months to complete.
LOCAL ECONOMY AND PROSPECTS FOR THE FUTURE
As presented in the 2040 General Plan Update, the City will support downtown revitalization as well as growth and business expansion in targeted industries that include healthcare, retail, and technology-based industries. Beaumont has continued to experience growth in its retail, commercial and industrial sectors. The City is approximately 50% built out and has significant land available to add to its numerous retail anchors that include Walmart, Home Depot, Kohls and Ross Dress for Less. The community has also experienced growth in its commercial and industrial sectors with the most recent addition being an Amazon fulfillment center. Amazon joins other major employers like Perricone Juices, Icon Health and Fitness, Wolverine, and CJ Foods. Work is underway on a new industrial building of approximately 700,000 square feet in the Hidden Canyon area in the central portion of the City. Amazon provides much of the economic base of the community through the employment of the local labor force within its 640,000 square-foot fulfillment center. Due to Beaumont’s prime location, available land, and growing population base it is anticipated that it will remain attractive to future commercial and industrial prospects.
Planning policies have been adopted to support balanced growth to achieve fiscal sustainability while maintaining a high quality of life. These policies are in concert with the City Council’s
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official goals and objectives in the areas of public safety, quality of life, economic development, sustainable community, and intergovernmental/interagency relationships.
In 2022, the median price of a home in Beaumont was $511,500, an increase of $68,000 or 21.33% from $455,000 in 2021, according to the Riverside County Recorder via HDL, Coren & Cone.
Prior to 2022, the peak median price of $396,500 was reported for 2006. The 2022 median value represents a 29% increase from that peak. After several years of fluctuations in home values due to uncertain economic conditions, Beaumont has seen a steady increase in home prices from 2016 thru 2022. Beaumont continues to see a steady pace in new, single-family residential development which is expected to continue over the next couple of years. This growth is expected to continue attracting skilled and educated residents who are expanding the local workforce with the requisite skills to meet the City’s economic development objectives.
The Sales Tax History chart is a ten-year
historical presentation of the City’s sales tax
revenue through fiscal year ending June 30,
2022. In 2022, the City received
$26,869,849 in sales tax revenues, an
increase of 203% or $18,000,103 from
$8,869,746. This was due to a reporting
change in the commercial/industrial sector.
As with most California communities, a large
portion of General Fund revenues are derived
from sales and use tax receipts. Continued
growth in the retail and commercial sectors
will be critically vital to the long-term fiscal
health of the community. A retail-oriented
economic development program has been
launched to expand local business and attract
new prospects. Existing, entitled land exists
for significant expansion of the retail center
at Highland Springs and Second Street with
other vacant sites at key locations being
targeted for retail-specific economic
development recruitment.
Great Recession but have steadily increased
since 2015. On June 30, 2022, property tax
revenues were reported at $7,691,561, a net
increase of $699,996 or 10% from fiscal year
2021 due to increased residential,
commercial and industrial new accessed
value as well as increasing property values..
The Property Tax History chart is a ten-year
historical presentation of the City’s property
taxes through fiscal year ending June 30,
2022. As shown here, property tax
collections decreased in 2014 due to the
$‐
$10,000,000
$20,000,000
$30,000,000
2013201420152016201720182019202020212022City of Beaumont Sales Tax History
$‐
$5,000,000
$10,000,000
2013201420152016201720182019202020212022City of Beaumont Property Tax History
vi
Overall property tax revenues are showing signs of growth as valuations increase and vacant land continues to be improved. The primary growth in assessed valuations continues to be in the single- family residential sector which accounted for a 61.24% increase in property transfer tax from $393,738 in 2021 to $634,871 in 2022. With demand high and inventory low the value of existing homes has increased in response to market conditions
.
In fiscal year 2004/2005, as part of the
California Governor’s Budget/Constitutional
Protection Package, a Vehicle License Fee
(VLF) program was implemented. The
program provides for the exchange of the
current VLF backfill from the State’s general
fund for an equivalent amount of property tax
revenues in FY2004/2005. Any future
growth in VLF revenue would be calculated
in proportion to growth in gross assessed
valuation. As presented in the ten-year
history chart, VLF has steadily increased
since fiscal year 2011/2012. In fiscal year
2021/2022, the City collected $6,240,950 in
VLF revenue, an increase of $531,036 or
9.3% due to an increase in property values
within the City.
$‐
$2,000,000
$4,000,000
$6,000,000
$8,000,000
2013201420152016201720182019202020212022City of Beaumont VLF History
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ACTUAL OPERATING RESULTS – GENERAL FUND
The following discussion summarizes the annual operating results of the City’s General Fund, for the fiscal year ended June 30, 2022. Further details are presented in the individual financial statements attached to this transmittal letter. The ten-year General Fund History chart in the statistical section of the report reflects the total revenues, expenditures, and net change in fund balance for the General Fund through June 30, 2022. The net change in fund balance figure in the chart includes operating revenues, operating expenditures, transfers to and from other funds, and proceeds from the sale of capital assets. The City Council has taken steps to address long-term challenges in the budget with the utilization of internal service funds and an establishment of a PARS pension 115 trust to address the increasing unfunded pension liability (UAL) for miscellaneous and safety employees with CalPERS. For further detail and breakdown, please refer to the management’s discussion and analysis, the notes and statistical section of these financial statements.
ANNUAL OPERATING RESULTS – ENTERPRISE FUNDS
The City accounts for its Wastewater and Transit operations on an “enterprise” basis, meaning that the activity is treated more like a commercial business, separate and apart from the general City operations. In FY 2021/2022, Enterprise Fund operating revenues for Sewer and Transit combined, totaled $12,334,335, an increase of $1,365,601 or 12.4% over FY2020/2021, while operating expenses increased by $1,118,508 or 7.1%, over the same period. For further detail and breakdown, please refer to the management’s discussion and analysis and the statistical section of these financial statements.
Wastewater Operations
For Wastewater Operations specifically, the Wastewater fund operating expenses exceeded operating revenues by $1,624,019, mainly attributable to three new added positions. Last fiscal year the Wastewater fund showed an operating deficit of $1,761,942. Interest expense decreased $57,771 which pertains to the debt service payment on the 2018 Wastewater Revenue Bonds issued to fund construction of a new wastewater treatment plant and a pipeline to send concentrated wastewater to the Orange County Sanitation District (OCSD). The wastewater treatment plant construction is in its final stage of construction and is expected to be completed within FY2022/2023. The OCSD pipeline has been completed and is in operation. For further detail and breakdown, please refer to the management’s discussion and analysis and statistical section of these financial statements.
Transit Operations
For Transit Operations specifically, the Transit fund operating expenses exceeded operating revenues by $2,920,940, which is not uncommon as the Transit system is heavily subsidized by the Riverside County Transportation Commission (RCTC). The transit system is subject to the provisions of the California Public Utilities Code §99268.3 and must maintain a minimum farebox recovery ratio of 10%, meaning operational revenue needs to be at least 10% of the systems expenses. Due to the COVID-19 pandemic, ridership has dramatically decreased and on June 29, 2020, the Governor of California signed Assembly Bill 90, which prohibits the imposition of a
viii
penalty on operators that do not maintain the required ratio of fare revenues to operating costs during fiscal years 2019-20 through 2021-22. For further detail and breakdown, please refer to the management’s discussion and analysis and statistical section of these financial statements.
PENSION FUNDING STATUS
The City provides its full-time and certain part-time employees retirement and disability benefits through four defined California Public Employees’ Retirement System (CalPERS) benefit pension plans: Classic Miscellaneous, Public Employees’ Pension Reform Act (PEPRA) Miscellaneous, Classic Safety and PEPRA Safety. The City makes required employer contributions to the plans based on the amounts determined by CalPERS actuaries. All City employees pay their required employee contributions based on the employees’ group/individual retirement plan formulas. In FY2021/2022, the City made $3,588,836 in employer pension costs and contributions to PERS.
The notes to the financial statements are based on the measurement date of the last actuarial which is June 30, 2021. In FY2021/2022, the “City’s” share of retirement costs decreased for Miscellaneous employees from 15.445% to 15.25%, for Miscellaneous PEPRA from 7.732% to
7.59%, for Safety from 23.674% to 23.71%, and for Safety PEPRA from 13.044% to 13.13%. The reason for the changes in the City’s (employer) share of retirement costs is due to changes in pool asset values and differences between the projected rate of return versus the actual returns on pooled assets. At the December 21, 2016, meeting, the CalPERS Board of Administration approved lowering the CalPERS discount rate of assumption, the long-term rate of return, from 7.5% to
7.0% over the following three years. For further detail and breakdown, please refer to the management’s discussion and analysis, the notes, certain required supplementary information, and statistical section of these financial statements. Lowering the discount rate has resulted in plans seeing increases in both the normal costs and the unfunded actuarial liabilities. This has also impacted PEPRA plan members who have paid increased contribution rates. This assumption change has increased public agency employer contribution costs in FY2021/2022. On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21.
Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of .20%, from 7.00% to 6.8%. Please see Note 10 of the notes for further information.
Debt Administration
As of June 30, 2022, the City had outstanding capital leases in the amount of $756,608. The Successor Agency balance of $775,912 from an agreement with the State of California, Department of Finance (State) to pay an outstanding amount due from the State’s Due Diligence Review, was paid in full in fiscal year 2021-2022. The City’s blended component units, the Beaumont Financing Authority and the Beaumont Public Improvement Authority, have outstanding bond debt in the amount of $76,583,778. The Wastewater fund has outstanding amount due from the 2018 Wastewater Revenue Bonds of $77,565,000 and $7,217,363 of Bond Premium, as well as $3,658 in Capital Leases. Additional information regarding long-term liabilities is presented in Note 6 of the financial statements. Non-City obligations are discussed in Note 7 of the financial statements which are not legal obligation of the City and therefore not included here.
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CITY OF BEAUMONT
PRINCIPAL OFFICIALS
Elected Officials
Lloyd White
Mayor
Julio Martinez III Mike Lara
Mayor Pro Tem Council Member
David Fenn Rey SJ Santos
Council Member Council Member
APPOINTED OFFICIALS
Elizabeth Gibbs
City Manager
John Pinkney
City Attorney
Steven Mehlman ........................................................................................................... City Clerk Nicole Wheelwright ........................................................................................... Deputy City Clerk Baron Ginnetti ........................................................................................................ City Treasurer Siomara Giroux ............................................................................................. Executive Assistant Christina Taylor ........................................................................................... Deputy City Manager Kari Mendoza ............................................................................. Administrative Services Director Sean Thuilliez ....................................................................................................... Chief of Police Jennifer Ustation ................................................................................................ Finance Director
xi
City of Beaumont
Organizational Chart
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735 E. Carnegie Dr. Suite I 00
San Bernardino , CA 92408
909 889 087 1 T
909 889 536 1 F
r amscpa .net
PARTNERS
Teny P Shea. CPA
Scott W Manno. CPA. CGMA
Leena Shanbhag. CPA. MST. CGMA
Br·adferd A. Welebir. CPA. MBA. CGMA
Jenny W Liu. CPA. MST
Brenda L Odle. CPA, MST 1Parrner Emer·irus l
MANAGERS / STAFF
Gar·denya Duran, CPA. CGMA
Br·ianna Schulu. CPA. CGMA
Seong-Hyea Lee. CPA. MBA
Evelyn Mor·entin-Barcena. CPA
Veronrca Hernandez. CPA
Laura Arvizu. CPA
X rnlu Zoe Zhang , CPA MSA
John Maldonado, CPA. MSA
Julia Rodr·iguez Fuentes. CPA. MSA
Demi Hrte. CPA
Jeffrey McKennan, CPA
MEMBERS
Amer-ican I nstrtute of
Cernfied Public Accountants
PCPS The A/CPA A.I/ranee
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Governmental Audit
Quality Cente,
Employee Benefit Plan
Aud,r Qual,ry Cente,
Californra Socrety of
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ROGERS , ANDERSON , MALODY & SCOTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
1 Independent Auditor’s Report
To the Honorable Mayor and Members
of the City Council of the
City of Beaumont
Beaumont, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Beaumont (the City), as of and for the fiscal year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in 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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Other Matters
As discussed in Note 1 to the financial statements, in the year ended June 30, 2022, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinions are not modified with respect to this matter.
2 Responsibilities of Management for the Financial Statements
The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
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 will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are 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, 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, the 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.
3 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, and schedules 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 auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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 accompanying supplementary information listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining nonmajor fund financial statements and the budgetary comparison schedules are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information contain therein is 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 section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance 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 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.
4 Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2022 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
San Bernardino, California
December 20, 2022
5 MANAGEMENT’S DISCUSSION AND ANALYSIS
Our discussion and analysis of the City of Beaumont’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2022. Please read it in conjunction with the accompanying transmittal letter and the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
In the Government-Wide – Statement of Net Position: The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $517,689m (net position); of this amount $371,401m is from governmental activities and $146,288m is from business-type activities, with $39,194m positive and $11,180m positive unrestricted net position, respectively.
In the Government-Wide – Statement of Activities: The City’s net position increased 9.65% or $45,579m from the $472,110m at the beginning of the year, to $517,689m at the end of the year.
The increase is the net result of positive changes of $37,732m in governmental activities and positive changes of $7,846m in business-type activities.
In the Government-Wide – Statement of Activities: During the current year, Governmental activities program revenues decrease by $469k due to a decrease of combined operating/capital contributions and grants of $2,681m. Business-type program revenues increased by a net $1,823m due to an increase in operating grants, capital grants, and charges for services in all enterprise funds.
In the Governmental Fund – Statement of Revenues, Expenditures, and Changes in Fund Balance:
During the year, the General Fund reported a positive net change in fund balance of $22,040m due to $13,678m of revenues over expenditures combined with other financing sources of $8,361m, with the majority of increases mostly from an increase of $18,753m in taxes.
In the Required Supplementary Information – Budgetary Comparison Schedule: For the General Fund, the actual revenues available for appropriation were more than the final budget by $18,072m, while actual expenditures were $3,643m less than the final budget. Net actual other financing sources were $2,201m more than the final budget, resulting in a positive $23,916m net change in budgetary variance and an actual positive fund balance change of $22,040m.
In the 2021/2022 Adopted Budget – the City Council and management annually make great efforts to adopt a balanced budget that preserves general fund - fund balance. This year City Council adopted a General Fund budget which is projected to have a negative change in net position of $1,876m. Overall, the General Fund maintains a solid financial position with committed funds of $2,154m (emergency contingency) and assigned funds of $796k (capital equipment replacement). In the adopted budget for fiscal year 2021/2022, committed fund balance represent
8.9% of the General Fund annual budget.
6 USING THIS ANNUAL REPORT
The discussion and analysis is intended to serve as an introduction to the City of Beaumont’s basic financial statements. The basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
The government-wide statements provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. These statements consist of the statement of net position and statement of activities.
The fund financial statements, which consist of the governmental funds, proprietary funds, and fiduciary funds, report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant (major) funds. The governmental fund statements also tell how City services were financed in the short term as well as what remains for future spending. The proprietary funds statements use the same accounting method as the business-type activities but provide more detail of the activities. The fiduciary fund statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government.
Reporting the City as a Whole
The Government-Wide Financial Statements
One of the most important questions asked about the City’s finances is, “Is the City as a whole better off or worse off as a result of this year’s activities?” The statement of net position and the statement of activities report information about the City as a whole and about its activities in a way that helps answer this question.
These statements include all assets and liabilities using the accrual basis of accounting, which is like the accounting used by most private-sector companies. All the current year’s revenues and expenses are considered regardless of when cash is received or paid.
These two statements report the City’s net position and changes in it. The reader can think of the City’s net position - the difference between assets, deferred outflows of resources, deferred inflows of resources and liabilities - as one way to measure the City’s financial health. Over time, increases or decreases in the City’s net position is one indicator of whether its financial health is improving or deteriorating. However, to assess the overall health of the City the reader will need to consider other non-financial factors, such as changes in the City’s property tax base and the condition of the City’s roads and other infrastructure.
The statement of net position and the statement of activities present information about the following:
Governmental activities - All the City’s basic services are governmental activities, including general government, community development, public safety and public works. General revenues, including property taxes, motor vehicle in lieu, sales taxes, and franchise fees, finance 64% of these activities.
Business-type activities – All Proprietary Funds (enterprise funds), wastewater, wastewater capital, wastewater developer impact fees, recycling water impact fees, transit, and transit capital, which receive funding through charges for services and developer contributions.
Component units - The City’s governmental activities include the Beaumont Financing Authority (BFA) and the Beaumont Public Improvement Authority (BPIA).
7 Reporting the City’s Most Significant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds - not the City as a whole. Some funds are required to be established by State Law and by bond covenants. However, the City Council establishes many other funds to help it control and manage money for specific purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money. The City’s three kinds of funds – governmental, proprietary, and fiduciary - use different accounting approaches.
Governmental funds - Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted into cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship (or differences) between governmental activities (reported in the statement of net position and the statement of activities) and governmental funds in a reconciliation schedule accompanying the fund financial statements.
The City of Beaumont maintains forty individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental statement of revenues, expenditures, and changes in fund balances for the General Fund, Beaumont Financing Authority/Beaumont Public Improvement Authority, Community Facilities District (CFD), Development Impact Fees (DIF), Community Facilities District (CFD) Capital Projects Fund and General Capital Projects Fund, which are major funds.
The remaining eleven nonmajor funds are combined and presented in the nonmajor governmental funds column. Individual fund detail for the nonmajor funds is presented in the combining statements located on pages 98-103 of this report.
Proprietary funds - When the City charges customers for certain services it provides, these services are generally reported in proprietary funds. There are two types of proprietary funds: enterprise fund (business- type activities) and internal service funds (internal allocation of costs). Proprietary funds are reported on the full accrual basis of accounting, which is the same method that all activities are reported in the statement of net position and the statement of activities.
The City of Beaumont maintains eight enterprise funds to account for Wastewater (Four funds), Transit (Three funds) and one Internal Service Fund. The Wastewater and Transit funds are major funds and as such detail activity is presented in the statement of net position, statement of revenues, expenses and changes in net position, and statement of cash flows on pages 28-31.
Fiduciary Funds - The City is the trustee, or fiduciary, for certain amounts held on behalf of developers, property owners, and others. The City acting as Successor Agency to the Former Beaumont Redevelopment Agency (Successor Agency) is the trustee, or fiduciary, for amounts held on behalf of bond holders, enforceable obligations, and taxing entities The City’s fiduciary activities are reported in separate statement of fiduciary net position and changes in fiduciary net position. We exclude 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. The statement of fiduciary net position and statement of changes in fiduciary net position can be found on page 33-34.
Notes to the financial statements – Additional information that is crucial to a full understanding of the figures provided in the government-wide and fund financial statements is provided in the notes to the financial statements. The notes to the financial statements can be found on pages 37-87 of this report.
8 Required supplementary information - The budget and budgetary accounting and postemployment benefit plans information can be found on pages 89-94 of this report.
Government-Wide Financial Analysis
Our analysis focuses on the net position (Table 1) and changes in net position (Table 2) of the City’s governmental and business-type activities reported in the government-wide statements.
Net Position
As shown in Table 1, the City’s net position from governmental activities increased 11.39% from $333,430m to $371,401m. The $37,732m positive change in net position is the result of a negative $10,738m in program operations, netted with $48,470m in general revenues. In the business-type activities the increase was
5.67% or $7,846m, net position changed from $138,441m to $146,288m, the net result of a negative $3,761m position change from operations and a positive $11,608m in general revenues. These changes are recorded in the statement of activities (Table 2) which flows through to the statement of net position.
Governmental Activities Business-type Activities Total
2022 2021 2022 2021 2022 2021
Assets:
Current and other assets 221,727$ 193,464$ 22,879$ 26,563$ 244,606$ 220,027$ Capital assets 287,570 279,364 219,137 217,022 506,707 496,386 Total assets 509,297 472,828 242,016 243,585 751,313 716,413 Deferred outflows:
Deferred outflows related to pension 5,489 5,279 748 720 6,237 5,999 Liabilities:
Current and other liabilities 52,357 46,535 10,109 18,480 62,466 65,015 Noncurrent liabilities 85,067 99,050 84,295 87,355 169,362 186,405 Total liabilities 137,424 145,585 94,404 105,835 231,828 251,420 Deferred inflows:
Deferred inflows related to pension 5,325 70 2,071 27 7,396 97 Deferred inflows related to debt - (978) - - - (978) Deferred inflows related to leases 636 - - - 636 - Total deferred inflows 5,961 (908) 2,071 27 8,032 (881) Net position:
Net investment in capital assets 210,230 199,530 134,351 134,777 344,581 334,307 Restricted 121,977 121,677 757 595 122,734 122,272 Unrestricted 39,194 12,223 11,181 3,071 50,375 15,294 Total net position 371,401$ 333,430$ 146,289$ 138,443$ 517,690$ 471,873$ Table 1
Statement of Net Position
(Dollars in Thousands)
9 As shown in Table 2, the change in net position is a positive $37,732m for governmental activities and positive $7,846m for business-type activities, with a combined total increase in net position of $45,579m for the fiscal year ending June 30, 2022.
Statement of Activities
(Dollars in Thousands)
Governmental Activities Business-type Activities Total
2022 2021 2022 2021 2022 2021
Revenues:
Program Revenues:
Charges for services 8,436$ 6,224$ 23,593$ 12,078$ 32,029$ 18,302$ Operating grants 1,613 4,116 2,687 2,252 4,300 6,368 Capital grants 16,403 16,591 1,882 1,853 18,285 18,444 General Revenues:
Property taxes 7,015 6,354 - - 7,015 6,354 Sales taxes 26,870 8,870 - - 26,870 8,870 Motor vehicle in lieu taxes 6,241 5,710 - - 6,241 5,710 Utility users tax 2,059 1,887 - - 2,059 1,887 Franchise taxes 3,165 3,184 - - 3,165 3,184 Transient occupancy taxes 422 299 - - 422 299 Business licenses 350 415 - - 350 415 Other taxes 737 674 - - 737 674 Other revenue 59 234 - - 59 234 Capital contribution - 4,002 - - - 4,002 Investment earnings 1,157 4,610 (1,131) 58 26 4,668 Miscellaneous 599 527 1,207 14 1,806 541 Gain on sale of assets 51 24 - - 51 24 Total revenues 75,177 63,721 28,238 16,254 103,415 79,975 Expenses:
General government 4,089 10,322 - - 4,089 10,322 Public safety 18,853 17,896 - - 18,853 17,896 Public works 4,338 8,739 - - 4,338 8,739 Community development 2,432 2,109 - - 2,432 2,109 Community services 2,513 4,568 - - 2,513 4,568 Interest and fiscal charges 4,966 4,743 - - 4,966 4,743 Sewer - - 17,597 16,480 17,597 16,480 Transit - - 3,048 3,104 3,048 3,104 Total expenses 37,191 48,377 20,645 19,584 57,836 67,961 Changes in net position before
Transfers 37,986 15,344 7,593 (3,330) 45,579 12,014 Transfers (254) 240 254 (240) - - Change in net position 37,732 15,584 7,847 (3,570) 45,579 12,014 333,669 317,845 138,442 142,012 472,111 459,857 Net position, end of year 371,401$ 333,429$ 146,289$ 138,442$ 517,690$ 471,871$ Table 2
Net position, beginning of year, as
restated
Governmental activity program revenues decrease over last year by $470k, and general revenues increased by $11,925m. Net decrease in operating contributions and grants of $2,503m was a result of $636k of CARES funding and $1,973m of American Rescue Funds received for COVID-19 related expenditures and a decrease of $258k in Public Works cost recovery. Charges for services increases in General Government of $68k were mainly due to increase in insurance recovery. Public Safety program revenues increased by a net of $351k due to an increase in special police services revenue such as vehicle release charges and administrative cost recovery charges. Community Development program revenues increased by $2,486m because of construction activity related to new housing projects. Community Services program revenue increased $44k mainly due to an increase in community programs and a Riverside County Fee credit.
10 Capital grants and contributions decreased by $179k mostly due to a reduction in developer contributions.
Overall general revenues increased by $11,935m, due to the following changes in all major tax categories:
property taxes increased - $661k (current secured - $294k, unsecured property - $126k, property transfer tax - $241k), sales tax increase - $18,000m (due to sales tax coming in higher in both point of sale transactions and the County-wide pools share); increase in motor vehicle in lieu taxes by 531k, franchise tax decrease - $19k (due to a decrease of cable franchise taxes), and other taxes increased $293k (transient occupancy tax and utility users tax increase - $295k, vehicle license increase - $23k and business license tax decrease - $65k). Investment revenues decreased a net of $3,453m (due CFD principal and interest payments decrease $1,784m and investment revenue decreased $1,669m because of decline in interest rates due to world-wide pandemic COVID-19, Geopolitical issues, and inflation), Gain on sales of assets increased by $27k due to vehicle auction sales. Miscellaneous revenues increased $72k due to billings collected from various. And finally, net transfers between governmental and business-type funds are due to funds returned from pension charges to cover premium pay by the State and Local Fiscal Recovery Funds which were not required.
Business-type program revenues were up a net of $1,823m, when compared to last year. Primary increases were related to capital grants and contributions for wastewater acquisition. The increase in wastewater operations service charges were $1,304m. Increases were due to annual rate increases and rising consumption levels resulting from new housing and commercial development connections within the City.
Transit revenues had a net increase of $126k, mainly attributable to increase of $435k in operating grants and contributions and a increase in charges for services by $55k. Capital grants and contributions had a decrease of $364k mostly due to grants for the purchase of three new buses in the previous year.
Governmental activities program expenses decreased by $11,186m. The result was the net of increases and decreases within specific programs during the fiscal year. An increase of $702k occurred in Public Safety mostly due to an increase in personnel. A $4,506m decrease in Public Works is mainly attributed a decrease in the street improvement projects. Furthermore, there was a $310k increase in Community Development is mainly due to the reduction of Covid-19 mitigation measures specifically with business assistance grants. General Government operations decrease of $5,809m is primarily due to decreases in costs to mitigate the Covid-19 pandemic such as premium pay for essential workers and grants for business and resident support.
The business-type activities expenses reflected a net decrease of $1,060m in program expenses. The Wastewater Enterprise fund had an increase of $1,117m which is made up of an increase in pension obligation payment and decreases in operating expenses such as supplies and contract services. The Transit Enterprise fund had a decrease of $56k mostly due to a decrease in salaries from personnel changes.
In comparison to fiscal year 2021, the overall change in net position from operations for governmental activities was an increase of $37.732m and business-type activities increased by $7,847m resulting in an overall City net position increase of $45,579m for fiscal year 2022.
11 Government Activities
Table 3 presents the total cost (expenses) of each of the City’s major public services in general government, public safety, community development, public works, and interest expense. Also included is each program’s net cost (total cost less program revenues generated by the activities). The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions.
2022 2021 Change 2022 2021 Change
Functions:
General government 4,090$ 10,322$ (6,232)$ 2,490$ 6,156$ (3,666)$ Public safety 18,853 17,896 957 13,804 14,410 (606) Public works 4,338 8,739 (4,401) (2,656) (2,270) (386) Community development 2,432 2,109 323 (2,755) (591) (2,164) Community services 2,513 4,568 (2,055) (4,997) (845) (4,152) Refuse - - - (114) (148) 34 Interest and fiscal charges 4,966 4,743 223 4,966 4,743 223 Total Governmental Activities: 37,192$ 48,377$ (11,185)$ 10,738$ 21,455$ (10,717)$ Net CostTotal Cost
Table 3
Net Cost of Governmental Activities
(Dollars in Thousands)
In looking at table 3, you will note the major changes both in total cost and net cost. In 2022, total costs decreased by $11,186m, a result of decreases in general government, public works and community services, with increases in public safety, community development and interest and fiscal charges. Specific changes in program costs were discussed in the previous section.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
At year-end, the City’s governmental funds reported combined fund balances of $165,412m a net increase of $19,883m in fund balance; included in this amount are increases in fund balance for General Fund of $22,240m, Development Impact Fees (DIF) $7,775m, and decrease in Other Government Funds $1,382m (due to the addition of the Community Facilities District Special Revenue Fund); combined with decreases in the Community Facilities District Capital Projects Fund $658k, General Capital Projects $2,286m, and Beaumont Financing Authority $5,606m. The General Fund had a net increase in fund balance of $22,040m, resulting from net revenues exceeding expenditures by $13,679mm, netted with total other financing sources of $8,361m and a $239k prior period adjustment. The significant change from prior year is mainly due to the increase in tax revenue.
In total the Proprietary Funds reported a positive change in net position of $7,847mm, with the Wastewater Enterprise showing a positive change of $7,603m and the Transit Enterprise showing a positive change of $244k. The Wastewater Enterprise ended with a positive change in net position of $7,603m, because of nonoperating revenues exceeding expenses by $7,564m netted against ongoing operating expenses exceeding operating revenues by $1,624m, and a positive change in transfers and capital contributions of $1,663m. The Transit Fund ended the year with a positive change of $244k, because of ongoing operating expenses exceeding operating revenues by $2,921m offset by nonoperating revenues of $2,691m and transfers and capital contributions of $474k.
12 General Fund Budgetary Highlights
The actual expenditures of the General Fund at year-end were $13,679m less than the actual revenues.
The positive budget-to-actual variance of $21,715m in appropriations was due to conservative spending citywide with saving in personnel cost, professional and contractual services and repairs and maintenance.
Of the unspent budget, actual revenues were $18,072m more than anticipated compared to the final budget due to higher tax revenues in sales and property tax than anticipated. Use of money and property fell short from budget as interest rates continue to remain low due to COVID-19, Geopolitical issues and inflationary pressures resulting in investment earnings came in short. Investment portfolios also saw a reduction in market value with the unusually low rates. Other revenues came in higher than expected due to an increase in cost recovery for insurance and claims. Favorable budget amendments and supplemental appropriations were made during the year to diminish budget overruns and to increase appropriations for unanticipated expenditures after adoption of the original budget. The original revenue budget was increased $1,507m mainly for increased sales tax receipts and increased permit activity. While the expenditure appropriations budget was increased in total by $3,783m to allow for vehicles and equipment purchases as well as new projects identified during the year for parks and grounds, and an increase in contractual service to pay off an outstanding amount due from the State’s Due Diligence Review.
Although, the final adopted budget projected a $1,876m negative change in fund balance, favorable results in revenues of $18,072m, favorable results in expenditures of $3,643m and favorable results in other financing sources of $2,201m resulted in the combined favorable results of $23,917m, as the actual positive net change in fund balance was $22,040m for the fiscal year ending June 30, 2022.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
2022 2021 2022 2021 2022 2021
Asset Type:
Land 32,661$ 28,547$ 3,418$ 3,010$ 36,079$ 31,557$ Construction in progress 9,021 7,800 111,672 103,624 120,693 111,424 Structures, machinery & equipment 16,599 14,375 41,045 43,468 57,644 57,843 Infrastructure 229,289 228,641 63,002 66,919 292,291 295,560 Total 287,570$ 279,363$ 219,137$ 217,021$ 506,707$ 496,384$ Governmental Activities Business-Type Activities Total
Table 4
Capital Assets (net of depreciation)
(Dollars in Thousands)
At the end of fiscal year 2022, the City had $506,707m invested in a broad range of capital assets, a total increase of $10,321m (See Table 4 above). Governmental activities include equipment, buildings, vehicles, land, park facilities, roads, storm drains, sidewalks and curb and gutters. Business-type activities include transit and wastewater operations. The total increase in the City of Beaumont investment in capital assets for fiscal year 2022 was 3.92% (a 2.94% increase in governmental activities and 0.98% increase in business-type activities). For fiscal year 2022, net increases are the result of the new addition of roads and construction in progress of the wastewater operations. The major capital assets added for governmental activities and business-type activities are highlighted in explanation of Table 5.
13 2022 2021 2022 2021 2022 2021
Asset Type:
Land 4,114$ -$ 408$ -$ 4,522$ -$ Construction in progress 6,703 4,941 8,097 22,655 14,800 27,596 Structures, machinery & equipment 3,602 1,542 1,296 1,200 4,898 2,742 Infrastructure 6,039 29,354 373 357 6,412 29,711 Total Additions 20,458 35,837 10,174 24,212 30,632 60,049 Less: Decreases and depreciation (12,252) (33,554) (8,059) (8,416) (20,311) (41,970) Capital Asset Increase/(Decrease) 8,206$ 2,283$ 2,115$ 15,796$ 10,321$ 18,079$ Table 5
Schedule of Changes in Capital Assets/Infrastructure
(Dollars in Thousands)
Governmental Activities Business-Type Activities Total
As shown in Table 5, above, capital assets current year activity increased $8,206m (net of depreciation) for governmental activities and increased $2,115m (net of depreciation) for business-type activities for a total increase of $10,332m. In the governmental activities the increase includes a 2 Hybrid vehicles, a Pressure Washer, Chipper, Bucket Truck, Backhoe, 5 pickup trucks, Police radios, 2 Tesla’s, 7 Police vehicles and a Police van. Infrastructure additions included the addition of the Mickelson Park, 4th Street and Potrero Street improvements, Oak Valley and the I-10 signals, and street re-pavement. The Wastewater and Transit asset additions included a Ford F250 Truck, Spill Trailer, Jetter Truck, Vacant Land and 2 EV Shuttles.
Asset Disposals include 6 vehicles and 2 Police vehicles. Additional information regarding capital assets activities can be found in Notes 1f and 5 of the financial statements.
Long-Term Liabilities
In June 2012, GASB (Governmental Accounting Standards Board) issued Statement No. 68, requiring public employers to comply with new accounting and financial reporting standards. Statement No. 68 outlines a different approach to the recognition and calculation of pension obligations. Under the new GASB standards, employers that participate in a defined benefit pension plan administered as a trust or equivalent arrangement are required to record the net pension liability, pension expense, and deferred outflows/deferred inflows of resources related to pensions in their financial statements as part of their financial position. These amounts are presented in the statement of net position on page 16-17, with detailed information in Note 10 to the financial statements.
Governmental Activities - Governmental Activities - The City governmental funds have $91,079m in outstanding long-term liabilities as of June 30, 2022; with the majority ($76,584m) related to Local Agency Revenue Bonds. In the Governmental Activities, pension related obligations total $8,545m. Tables 6 below and Note 6, 7, 8, 9 and 10 to the financial statements offer a more detailed view of governmental long-term liabilities.
14 2022 2021 2022 2021 2022 2021
AB 1484 Due Diligence -$ 776$ -$ -$ -$ 776$ Lease Liability 757 153 - - 757 153 1994 Revenue Bonds, Series A 1,380 1,970 - - 1,380 1,970 2015 Refunding Revenue Bonds, Series A 9,535 9,770 - - 9,535 9,770 2015 Refunding Revenue Bonds, Series B 15,215 16,020 - - 15,215 16,020 2015 Refunding Revenue Bonds, Series C 3,805 4,040 - - 3,805 4,040 2015 Refunding Revenue Bonds, Series D 5,645 5,985 - - 5,645 5,985 2019 Refunding Revenue Bonds, Series A 4,755 5,085 - - 4,755 5,085 2020 Revenue Bonds, Series A 16,715 17,200 - - 16,715 17,200 2021 Revenue Bonds, Series A 18,675 18,675 - - 18,675 18,675 Bond premium
2019 revenue bond series A 859 937 - - 859 937 Wastewater Revenue Bonds, Series 2018A - - 77,565 78,860 77,565 78,860 Bond premium - - 7,217 7,843 7,217 7,843 Lease Liability - - 4 99 4 99 Compensated absence 2,902 2,773 403 375 3,305 3,148 Claims payable 2,291 2,806 - - 2,291 2,806 Net pension liability 8,545 17,640 1,102 2,300 9,647 19,940 Total 91,079$ 103,830$ 86,291$ 89,477$ 177,370$ 193,307$ Table 6
Long-Term Liabilities
(Dollars in Thousands)
Governmental Activities Business-Type Activities Total
Business-type Activities - The enterprise funds have $86,291m in outstanding long-term liabilities as of June 30, 2022. The wastewater fund has bonded debt of $77.565m consisting of the 2018 Wastewater Revenue Bonds originally issued for $81,105m with the first payment made on September 1, 2019: and the premium on the bond with a current outstanding balance of $7,217m. The Bond issue is paid with wastewater operating revenues. In the enterprise funds pension related obligations total $1,102m.
Additional detailed information for business-type long-term liabilities is shown in Note 6, 8 and 10 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
In FY2020, the COVID-19 pandemic caused a widespread health crisis, which was quickly followed by a widespread financial crisis due to many non-essential businesses were forced to shut down with stay-at- home orders issued by Governor Gavin Newsom. Throughout FY2021, the City and Inland Empire has seen a recovery as workers returned to work and businesses reopened. According to the UC Riverside School of Business, business activity in the Inland Empire expanded by 4.7% in the first quarter of 2022 compared to 6.4% in the fourth quarter of 2021.
Taner Osman, Research Manager at the UCR Center for Economic Forecasting said, “Despite greater instability in the macroeconomy today, there are still very few, if any, signs of weakness in the Inland Empire’s economic activity”. “Employment has continued to expand, and the workforce region is now larger than it was before the pandemic, something that is not true for the state as a whole”. Osman cautioned, that while the effects have not hit the Inland Empire yet, he believes it eventually will, but most likely not in 2022.
15 The City has still seen economic growth through FY 2022 with new industrial and commercial completed projects such as the second Amazon warehouse and the plan to build a 1.8 million-square-foot distribution center meant to house United Legwear and Apparel Company, LLC (ULAC). Currently, retail store Bath and Body Works is preparing to open their new Beaumont store and Dutch Bros coffee shop is in construction. Many other projects are in the permit process and will contribute to Beaumont’s growing economy.
City staff continues to update forecasting models to be better prepared for changes in economic conditions.
Care must be given to ensure that planned ongoing costs do not exceed revenues over the next three to five years. One area of concern is rising pension costs which the City in fiscal year 2022 addressed by establishing a Pension 115 Trust with PARS. Inflation has also been a continuing concern as the Consumer Price Index has increased 6.5% from July 2021 to 9.2% in July 2021 for Riverside-San Bernardino-Ontario area according to the U.S. Bureau of Labor Statistics. The inflation rate will need to be monitored as costs for goods and services as well as construction costs for projects could potentially have a negative impact on the FY23 budget and beyond.
On June 21, 2022, the City Council adopted the City of Beaumont Operating and Capital Improvement Program (CIP) Budget for the Fiscal Year beginning July 1, 2022 and ending June 30, 2023. The General Fund operating budget totals $60.669m and is funded by operating revenue of $51,981m, transfers in and other financing sources of $8,688m, leaving $7,377m of appropriations available throughout the FY. The approved CIP budget for fiscal year 2022/2023 totals $16,565m with a five-year CIP investment plan estimated at $37,413m.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives.
For any questions about this report or additional financial information, please contact the Finance and Administrative Services Department of the City of Beaumont, located at 550 E. 6th Street, Beaumont, CA 92223, (951) 572-3236 or [email protected].
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Government-Wide Financial Statements
CITY OF BEAUMONT
Statement of Net Position
June 30, 2022
See accompanying Notes to the Basic Financial Statements 16 Primary Government
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 128,366,960$ 19,722,982$ 148,089,942$ Restricted cash and investments 2,344,101 - 2,344,101 Receivables:
Accounts 1,952,096 2,611,860 4,563,956 Interest 128,244 1,263 129,507 Intergovernmental 6,900,291 537,378 7,437,669 Leases 639,363 - 639,363 Prepaid items 348,417 - 348,417 Total current assets 140,679,472 22,873,483 163,552,955 Noncurrent assets:
Restricted cash and investments with fiscal agent 4,562,587 27 4,562,614 Restricted investment in CFDs 75,725,000 - 75,725,000 Intangible assets, net 759,852 5,676 765,528 Capital assets:
Nondepreciable 41,681,783 115,090,114 156,771,897 Depreciable, net 245,888,522 104,046,712 349,935,234 Total capital assets, net 287,570,305 219,136,826 506,707,131 Total noncurrent assets 368,617,744 219,142,529 587,760,273 Total assets 509,297,216 242,016,012 751,313,228
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 5,489,297 748,275 6,237,572 Total deferred outflows of resources 5,489,297 748,275 6,237,572
CITY OF BEAUMONT
Statement of Net Position (Continued)
June 30, 2022
See accompanying Notes to the Basic Financial Statements 17 Primary Government
Governmental Business-Type
Activities Activities Total
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 6,928,804$ 2,588,051$ 9,516,855$ Interest payable - 1,250,696 1,250,696 Salaries payable and related liabilities 314,776 46,618 361,394 Deposits payable 3,482,527 - 3,482,527 Unearned revenue 35,619,710 4,228,201 39,847,911 Compensated absences - due within one year 362,778 50,231 413,009 Claims payable - due within one year 659,698 - 659,698 Long-term liabilities - due within one year 4,988,980 1,945,673 6,934,653 Total current liabilities 52,357,273 10,109,470 62,466,742 Long-term liabilities:
Compensated absences - due in more than one year 2,539,447 352,339 2,891,786 Claims payable - due in more than one year 1,631,054 - 1,631,054 Long-term liabilities - due in more than one year 72,351,406 82,840,348 155,191,754 Aggregate net pension liability 8,544,660 1,102,031 9,646,691 Total long-term liabilities 85,066,567 84,294,718 169,361,285 Total liabilities 137,423,839 94,404,188 231,828,027
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 5,325,951 2,071,202 7,397,153 Leases 635,666 - 635,666 Total deferred inflows of resources 5,961,617 2,071,202 8,032,819
NET POSITION
Net investment in capital assets 210,229,919 134,350,805 344,580,724 Restricted for:
Special projects 17,982,754 - 17,982,754 Debt service 80,287,587 - 80,287,587 Capital projects 21,362,138 757,246 22,119,384 Pension Trust 2,344,101 - 2,344,101 Total restricted 121,976,580 757,246 122,733,826 Unrestricted 39,194,558 11,180,846 50,375,404 Total net position 371,401,057$ 146,288,897$ 517,689,954$
CITY OF BEAUMONT
Statement of Activities
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements 18 Program Revenues
Operating Capital
Charges for Grants and Grant and
Functions/Programs Expenses Services Contributions Contributions Total Primary government:
Governmental activities:
General government 4,089,581$ 1,576,212$ -$ 23,485$ 1,599,697$ Public safety 18,852,535 1,397,021 436,278 3,215,230 5,048,529 Public works 4,337,784 285,506 1,089,003 5,619,592 6,994,101 Community development 2,431,610 4,988,656 87,999 110,152 5,186,807 Community services 2,513,365 75,167 - 7,434,776 7,509,943 Refuse - 113,630 - - 113,630 Interest and fiscal charges 4,965,899 - - - - Total governmental activities 37,190,774 8,436,192 1,613,280 16,403,235 26,452,707 Business-type activities:
Sewer 17,596,817 23,478,300 - 1,406,649 24,884,949 Transit 3,047,754 114,583 2,687,154 475,106 3,276,843 Total business-type activities 20,644,571 23,592,883 2,687,154 1,881,755 28,161,792 Total primary government 57,835,345$ 32,029,075$ 4,300,434$ 18,284,990$ 54,614,499$
CITY OF BEAUMONT
Statement of Activities (Continued)
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements 19 Net (Expense) Revenue
and Change in Net Position
Governmental Business-Type
Functions/Programs Activities Activities Total
Primary government:
Governmental activities:
General government (2,489,884)$ -$ (2,489,884)$ Public safety (13,804,006) - (13,804,006) Public works 2,656,317 - 2,656,317 Community development 2,755,197 - 2,755,197 Community services 4,996,578 - 4,996,578 Refuse 113,630 - 113,630 Interest and fiscal charges (4,965,899) - (4,965,899) Total governmental activities (10,738,067) - (10,738,067) Business-type activities:
Sewer - 7,288,132 7,288,132 Transit - 229,089 229,089 Total business-type activities - 7,517,221 7,517,221 Total primary government (10,738,067) 7,517,221 (3,220,846) General revenues:
Taxes:
Property taxes 7,015,381 - 7,015,381 Sales taxes 26,869,849 - 26,869,849 Vehicle License 6,240,950 - 6,240,950 Utility users tax 2,058,730 - 2,058,730 Franchise tax 3,164,944 - 3,164,944 Transient occupancy tax 422,087 - 422,087 Business licenses 350,142 - 350,142 Other taxes 737,046 - 737,046 Total taxes 46,859,129 - 46,859,129 Other revenue 58,594 - 58,594
Investment earnings 1,157,022 (1,131,442) 25,580 Miscellaneous 598,614 1,206,829 1,805,443 Gain on sale of assets 51,186 - 51,186 Transfers (254,358) 254,358 -
Total general revenues and transfers 48,470,187 329,745 48,799,932 Change in net position 37,732,120 7,846,966 45,579,086 Net position:
Beginning of year, as restated 333,668,937 138,441,931 472,110,868 End of year 371,401,057$ 146,288,897$ 517,689,954$
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Governmental Fund Financial Statements
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20 GOVERNMENTAL FUND FINANCIAL STATEMENTS
Major Governmental Funds of the City are outlined below:
General Fund - This fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Beaumont, these services include general government, public safety, public works, community development, community service, and refuse.
Development Impact Fees Special (DIF) Special Revenue Fund - This fund is used to account for the receipt and expenditure of mitigation fees on specified capital projects.
Community Facilities Districts (CFD) Capital Projects Fund - This fund is used to account for bond and annual tax assessments proceeds to be used for the construction and implementation of off-site infrastructure improvements. In addition, the fund accounts for services and administration assessments received annually.
General Capital Projects Fund - This fund is used to account for financial resources to be used for acquisition, construction and improvement of the city's major capital facilities.
Beaumont Financing Authority / Beaumont Public Improvement Authority Debt Service Funds - These funds are authorized to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans to the City and/or to refinance outstanding obligations of the City.
CITY OF BEAUMONT
Balance Sheet
Governmental Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements 21 Special Revenue Fund Capital Projects Funds
General Development Community Facilities
Fund Impact Fees (DIF) District (CFD)
ASSETS
Cash and investments 44,762,040$ 41,054,357$ 13,016,221$ Cash and investments with fiscal agent - - - Restricted investments in Section 115 Trust 2,344,101 - - Investment in CFDs - - - Receivables:
Accounts 419,255 1,470,279 - Interest 128,244 - - Lease 639,363 - - Due from other governments 6,133,415 - - Prepaid 61,292 - - Total assets 54,487,710$ 42,524,636$ 13,016,221$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 3,974,699$ 539,307$ -$ Accrued payroll and related liabilities 314,776 - - Deposits payable 3,364,141 6,997 - Unearned revenue 525,000 29,388,179 -
Total liabilities 8,178,616 29,934,483 - Deferred Inflows of Resources:
Unavailable revenue - 1,470,279 - Leases 635,666 - - Total deferred inflows of resources 635,666 1,470,279 - Fund Balances (deficit):
Nonspendable 61,292 - - Restricted 2,344,101 11,119,874 13,016,221 Committed 2,154,152 - - Assigned 796,780 - - Unassigned 40,317,103 - - Total fund balances 45,673,428 11,119,874 13,016,221 Total liabilities, deferred inflows
of resources and fund balances 54,487,710$ 42,524,636$ 13,016,221$
CITY OF BEAUMONT
Balance Sheet (Continued)
Governmental Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements 22 Capital Projects Funds Debt Service Fund Other Total General Beaumont Governmental Governmental
Capital Projects Financing Authority Funds Funds
ASSETS
Cash and investments 10,827,624$ -$ 11,768,957$ 121,429,199$ Cash and investments with fiscal agent - 4,562,587 - 4,562,587 Restricted investments in Section 115 Trust - - - 2,344,101 Investment in CFDs - 75,725,000 - 75,725,000 Receivables:
Accounts 57,426 - 5,136 1,952,096 Interest - - - 128,244 Lease - - - 639,363 Due from other governments - - 766,876 6,900,291 Prepaid - 287,125 - 348,417 Total assets 10,885,050$ 80,574,712$ 12,540,969$ 214,029,298$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 2,342,815$ -$ 57,390$ 6,914,211$ Accrued payroll and related liabilities - - - 314,776 Deposits payable - - 111,389 3,482,527 Unearned revenue 196,318 - 5,510,213 35,619,710 Total liabilities 2,539,133 - 5,678,992 46,331,224 Deferred Inflows of Resources:
Unavailable revenue - - 179,758 1,650,037 Leases - - - 635,666 Total deferred inflows of resources - - 179,758 2,285,703 Fund Balances (deficit):
Nonspendable - 287,125 - 348,417 Restricted - 80,287,587 6,862,880 113,630,663 Committed 8,345,917 - - 10,500,069 Assigned - - - 796,780 Unassigned - - (180,661) 40,136,442 Total fund balances 8,345,917 80,574,712 6,682,219 165,412,371 Total liabilities, deferred inflows
of resources and fund balances 10,885,050$ 80,574,712$ 12,540,969$ 214,029,298$
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CITY OF BEAUMONT
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
See accompanying Notes to the Basic Financial Statements 23 Total Fund Balances - Total Governmental Funds 165,412,371$ Capital assets used in governmental activities were not financial resources and therefore, were not reported in governmental funds.
Capital assets, nondepreciable 41,681,783
Capital assets, depreciable 245,888,522
Adjustments for Internal Service Fund capital assets, net (537,688) Intangible asset, net of amortization 759,852
Long-term liabilities were not due and payable in the current period and therefore, were not reported in the governmental funds.
Compensated absences - due within one year (362,778)
Compensated absences - due in more than one year (2,539,447) Claims payable - due within one year (659,698)
Claims payable - due in more than one year (1,631,054)
Long-term liabilities - due within one year (4,988,980) Long-term liabilities - due more than one year (72,351,406) Aggregate net pension liability is not due and payable in the current period and therefore is not required to be reported in the governmental funds. (8,544,660) Pension-related deferred outflows/inflows of resources in the governmental activities were not financial resources (uses) and therefore were not reported in the Governmental Funds Balance Sheet.
Pension-related deferred outflows of resources 5,489,297 Pension-related deferred inflows of resources (5,325,951) Unavailable revenues recorded in governmental fund financial statements resulting from activities in which revenues were earned but funds were not available were recognized as revenues in the Government-Wide Financial Statements. 1,650,037 Internal service funds are used by management to charge the costs of certain activities, for equipment and risk management, to individual funds. The assets and liabilities of the internal service funds must be added to the Statement of Net Position.7,460,856 Net Position of Governmental Activities 371,401,057$
CITY OF BEAUMONT
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements 24 Special Revenue Fund Capital Projects Funds
General Development Community Facilities
Fund Impact Fees (DIF) District (CFD)
REVENUES:
Taxes 34,846,091$ -$ -$ Franchise fees 3,164,944 - - Intergovernmental 6,307,226 - - License and permits 4,997,452 7,883,553 - Fines and forfeitures 425,252 - - Assessments levied 676,180 - - Use of money and property (1,407,979) 84,035 23,142 Charges for services 1,595,732 - - Other revenues 626,268 - -
Total revenues 51,231,166 7,967,588 23,142 EXPENDITURES:
Current:
General government 7,988,379 - - Public safety 18,098,087 - - Public works 2,786,620 - -
Community development 2,062,167 - - Community services 4,701,702 - - Capital outlay 1,811,830 - - Debt service:
Principal 99,925 - -
Interest and fiscal charges 3,666 - - Total expenditures 37,552,376 - -
REVENUES OVER
(UNDER) EXPENDITURES 13,678,790 7,967,588 23,142 OTHER FINANCING SOURCES (USES):
Lease acquisition 856,533 - - Proceeds from sale of property 24,471 - - Transfers in 7,591,630 533,502 -
Transfers (out) (111,272) (726,368) (681,250) Total other financing sources (uses)8,361,362 (192,866) (681,250) Net changes in fund balances 22,040,152 7,774,722 (658,108) FUND BALANCES:
Beginning of year, as restated 23,633,276 3,345,152 13,674,329 End of year 45,673,428$ 11,119,874$ 13,016,221$
CITY OF BEAUMONT
Statement of Revenues, Expenditures, and Changes in Fund Balance (Continued) Governmental Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements 25 Capital Projects Funds Debt Service Fund Other Total General Beaumont Governmental Governmental
Capital Projects Financing Authority Funds Funds
REVENUES:
Taxes -$ -$ 1,519,954$ 36,366,045$ Franchise fees - - - 3,164,944 Intergovernmental 72,694 - 2,593,957 8,973,877 License and permits - - 27,878 12,908,883 Fines and forfeitures - - - 425,252 Assessments levied - - 6,222,036 6,898,216 Use of money and property 10,221 2,510,301 24,112 1,243,832 Charges for services - - - 1,595,732 Other revenues 58,594 - 86,409 771,271 Total revenues 141,509 2,510,301 10,474,346 72,348,052 EXPENDITURES:
Current:
General government - - 17,539 8,005,918 Public safety - - 257,544 18,355,631 Public works - - - 2,786,620 Community development - - 236,221 2,298,388 Community services - - - 4,701,702 Capital outlay 6,911,437 - - 8,723,267 Debt service:
Principal - 3,020,000 - 3,119,925 Interest and fiscal charges - 5,096,303 - 5,099,969 Total expenditures 6,911,437 8,116,303 511,304 53,091,420
REVENUES OVER
(UNDER) EXPENDITURES (6,769,928) (5,606,002) 9,963,042 19,256,632 OTHER FINANCING SOURCES (USES):
Lease acquisition - - - 856,533 Proceeds from sale of property - - - 24,471 Transfers in 4,793,723 - 112,817 13,031,672 Transfers (out) (309,350) - (11,457,790) (13,286,030) Total other financing sources (uses)4,484,373 - (11,344,973) 626,646 Net changes in fund balances (2,285,555) (5,606,002) (1,381,931) 19,883,278 FUND BALANCES:
Beginning of year 10,631,472 86,180,714 8,064,150 145,529,093 End of year 8,345,917$ 80,574,712$ 6,682,219$ 165,412,371$
CITY OF BEAUMONT
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements 26 Net Change in Fund Balances - Total Governmental Funds 19,883,278$ Governmental funds report capital outlays as expenditures. However, in the Government-Wide Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense.
Capital outlay capitalized (net of Internal Service Fund) 14,215,936 Depreciation expense (net of Internal Service Fund) (6,547,349) Amortization on intangible asset (96,681)
The issuance of long-term liabilities provided current financial resources to governmental funds, but issuing debt increased long-term liabilities in the Government-Wide Statement of Net Position. Repayment of long-term liabilities was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.
Principal payments on long term liabilities 3,895,837
Premium amortization 78,071
Governmental funds report revenues and expenditures primarily pertaining to long-term liabilities, which are not reported in the statement of activities. At the government-wide level, these activities are reported in the statement of net position. This is the net expenditure reported in the governmental funds, which is not reported in the statement of activities.
Pension related net adjustments 4,050,005
Debt refunding adjustments (825,705)
Certain long-term assets and liabilities were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, long-term assets and liabilities were not reported as expenditures in governmental funds. These amounts represented the changes in long-term liabilities from prior year.
Changes in compensated absences (128,994)
Changes in claims payable 515,369
Changes in unavailable revenues were reported as deferred inflows of resources in the Governmental Funds but were previously reported as revenues in the Government-Wide Statement of Activities.1,650,037
Internal service funds are used by management to charge the costs of certain activities, for equipment and risk management, to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities.1,042,316 Change in Net Position of Governmental Activities 37,732,120$
Proprietary Fund Financial Statements
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27 PROPRIETARY FUND FINANCIAL STATEMENTS
Enterprise Funds:
Sewer Fund - The Sewer Fund was established to receive and disburse funds collected through sewer services charge fees and sewer facilities charges. These funds are used for the operation and maintenance of sewer disposal facilities and the financing of construction outlet sewers.
Transit Fund - The Transit Fund is intended to show the financial position and the operation and maintenance of the City's fixed route and dial-a-ride transit systems.
Internal Service Fund - The Internal Service Fund was established to account for future replacement of vehicles, equipment, and IT infrastructure. These funds are used to track goods and services shifted between departments on a cost reimbursement basis.
CITY OF BEAUMONT
Statement of Net Position
Proprietary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements 28 Governmental
Activities
Sewer Transit Internal Service
Fund Fund Total Fund
ASSETS
Current assets:
Cash and investments 18,187,676$ 1,535,306$ 19,722,982$ 6,937,761$ Receivables:
Accounts 2,611,860 - 2,611,860 - Interest 1,263 - 1,263 - Due from other governments 91,023 446,355 537,378 - Total current assets 20,891,822 1,981,661 22,873,483 6,937,761 Noncurrent assets:
Restricted cash and investments with fiscal agent 27 - 27 - Intangible assets, net of amortization - 5,676 5,676 - Capital assets:
Nondepreciable 113,939,814 1,150,300 115,090,114 83,491 Depreciable 235,975,728 6,998,425 242,974,153 500,504 Less: accumulated depreciation (133,524,625) (5,402,816) (138,927,441) (46,307) Total capital assets 216,390,917 2,745,909 219,136,826 537,688 Total noncurrent assets 216,390,944 2,751,585 219,142,529 537,688 Total assets 237,282,766 4,733,246 242,016,012 7,475,449
DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows 427,585 320,690 748,275 - Total deferred outflows of resources 427,585 320,690 748,275 -
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 2,006,652 581,399 2,588,051 14,593 Salaries payable and related liabilities 23,993 22,625 46,618 - Unearned revenue 4,001,869 226,332 4,228,201 - Interest payable 1,250,696 - 1,250,696 - Compensated absences - due within one year 10,471 39,760 50,231 - Long-term liabiltiies- due within one year 1,942,015 3,658 1,945,673 - Total current liabilities 9,235,696 873,774 10,109,470 14,593 Noncurrent liabilities:
Compensated absences - due in more than one year 185,049 167,290 352,339 - Long-term liabilites - due in more than one year 82,840,348 - 82,840,348 - Net pension liability 629,732 472,299 1,102,031 - Total noncurrent liabilities 83,655,129 639,589 84,294,718 - Total liabilities 92,890,825 1,513,363 94,404,188 14,593
DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows 1,183,544 887,658 2,071,202 - Total deferred inflows of resources 1,183,544 887,658 2,071,202 -
NET POSITION (DEFICIT)
Net investment in capital assets 131,608,554 2,742,251 134,350,805 537,688 Restricted for capital projects 757,246 - 757,246 - Unrestricted 11,270,182 (89,336) 11,180,846 6,923,168 Total net position 143,635,982$ 2,652,915$ 146,288,897$ 7,460,856$ Business-type Activities -
Enterprise Funds
CITY OF BEAUMONT
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements 29 Business-type Activities - Governmental
Enterprise Funds Activities
Sewer Transit Internal Service
Fund Fund Total Fund
OPERATING REVENUES:
Charges for services 12,199,547$ 114,583$ 12,314,130$ 1,111,018$ Other revenue 8,199 12,006 20,205 - Total operating revenues 12,207,746 126,589 12,334,335 1,111,018 OPERATING EXPENSES:
Salaries 1,581,568 1,334,721 2,916,289 - Fringe benefits 1,020,730 739,530 1,760,260 - Administration 827,396 142,139 969,535 - Contract services 1,284,884 49,704 1,334,588 - Fuels, lubricants, and maintenance 128,256 293,087 421,343 - Replacement expense - - - 66,069 Supplies 524,870 16,372 541,242 - Office 18,902 15,861 34,763 - Utilities 858,552 30,174 888,726 - Depreciation 7,586,607 423,103 8,009,710 46,307 Amortization - 2,838 2,838 - Total operating expenses 13,831,765 3,047,529 16,879,294 112,376 OPERATING INCOME (LOSS)(1,624,019) (2,920,940) (4,544,959) 998,642 NONOPERATING REVENUES (EXPENSES):
Local transportation funds - 2,295,914 2,295,914 - Gain on sale of capital assets - - - 26,715 Mitigation fees 11,278,753 - 11,278,753 - Intergovernmental - 391,240 391,240 - Investment earnings (1,135,640) 4,198 (1,131,442) 16,959 Interest expense (3,765,052) (225) (3,765,277) - Bond proceeds 1,186,624 - 1,186,624 - Total nonoperating revenues (expenses)7,564,685 2,691,127 10,255,812 43,674 Income (loss) before operating transfers and
capital contributions 5,940,666 (229,813) 5,710,853 1,042,316 TRANSFERS AND CAPITAL CONTRIBUTIONS:
Riverside County Transportation Commission - 475,106 475,106 - Developer capital contributions 1,406,649 - 1,406,649 - Transfers in 255,903 - 255,903 - Transfers (out) - (1,545) (1,545) - Total transfers and capital contributions 1,662,552 473,561 2,136,113 - Changes in net position 7,603,218 243,748 7,846,966 1,042,316 NET POSITION:
Beginning of year 136,032,764 2,409,167 138,441,931 6,418,540 End of year 143,635,982$ 2,652,915$ 146,288,897$ 7,460,856$
CITY OF BEAUMONT
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements 30 Business-type Activities - Governmental
Enterprise Funds Activities
Sewer Transit Internal Service
Fund Fund Total Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users 6,721,247$ (786,282)$ 5,934,965$ 1,111,018$ Payments to suppliers for goods and services (5,669,309) 92,432 (5,576,877) (51,476) Payments for general and administrative expenses (2,833,165) (1,962,132) (4,795,297) - Cash received from developers and others 8,199 12,006 20,205 - Net cash provided by (used in) operating activities (1,773,028) (2,643,976) (4,417,004) 1,059,542
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Local transportation funds - 2,295,914 2,295,914 - Intergovernmental - 391,240 391,240 - Transfers in 255,903 - 255,903 - Transfers (out) - (1,545) (1,545) - Net cash provided by (used in) noncapital
financial activities 255,903 2,685,609 2,941,512 -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (9,454,904) (678,634) (10,133,538) (583,995) Mitigation fees 11,278,753 - 11,278,753 - Developer capital contributions 1,406,649 - 1,406,649 - Capital grants received - 475,106 475,106 - Payment of principal on long-term liabilities (2,019,590) 3,658 (2,015,932) - Payment of interest on long-term liabilities (3,782,319) (225) (3,782,544) - Bond Proceeds 1,186,624 - 1,186,624 - Net cash provided by (used in) capital
and related financing activities (1,384,787) (200,095) (1,584,882) (583,995) CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from disposition of capital assets - - - 26,715 Investment income (1,135,559) 4,198 (1,131,361) 16,959 Net cash provided by (used in) investing activities (1,135,559) 4,198 (1,131,361) 43,674 Net change in cash and cash equivalents (4,037,471) (154,264) (4,191,735) 519,221 CASH AND CASH EQUIVALENTS:
Beginning of year 22,225,174 1,689,570 23,914,744 6,418,540 End of year 18,187,703$ 1,535,306$ 19,723,009$ 6,937,761$ RECONCILATION TO STATEMENT OF NET POSITION:
Cash and investments 18,187,676$ 1,535,306$ 19,722,982$ 6,937,761$ Restricted cash and investments with fiscal agent 27 - 27 - Total cash and cash equivalents 18,187,703$ 1,535,306$ 19,723,009$ 6,937,761$
CITY OF BEAUMONT
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements 31 Business-type Activities - Governmental
Enterprise Funds Activities
Sewer Transit Internal Service
Fund Fund Total Fund
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) (1,624,019)$ (2,920,940)$ (4,544,959)$ 998,642$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:
Depreciation 7,586,607 423,103 8,009,710 46,307 Amortization - 2,838 2,838 - Changes in current assets, deferred outflows of resources, liabilities, and deferred inflows of resources:
Accounts receivable (59,883) - (59,883) - Due from other governments (91,023) - (91,023) - Inventories - (351,122) (351,122) - Pension-related deferred outflows of resources (42,079) 13,416 (28,663) - Accounts payable and accrued liabilities (2,853,845) 497,630 (2,356,215) 14,593 Salaries payable and related liabilities 6,124 (238) 5,886 - Unearned revenue (5,327,394) (549,743) (5,877,137) - Compensated absences 66,072 (38,262) 27,810 - Aggregate net pension liability (602,485) (595,622) (1,198,107) - Pension-related deferred inflows of resources 1,168,897 874,964 2,043,861 - Total adjustments (149,009) 276,964 127,955 60,900 Net cash provided by (used in) operating activities (1,773,028)$ (2,643,976)$ (4,417,004)$ 1,059,542$
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Fiduciary Fund Financial Statements
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32 FIDUCIARY FUND FINANCIAL STATEMENTS
Custodial Funds - To account for collections received from special assessment district and their disbursement to bondholders.
Private Purpose Trust Funds - To account for activities of the Successor Agency to the dissolved Beaumont Redevelopment Agency.
CITY OF BEAUMONT
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements 33 Private Purpose
Trust Fund
Custodial Funds Succesor Agency
ASSETS
Cash and investments 20,983,284$ -$
Restricted cash and investments with fiscal agent 13,621,551 - Due from other governments 282,076 - Total assets 34,886,911 -
LIABILITIES
Interest payable 4,184,332 -
Unearned revenue 12,634 -
Deposits payable 68,976 -
Due to other governments 107,742,432 -
Due to bondholders 143,305,675 -
Total liabilities 255,314,049 -
Net Position
Restricted for:
Individuals, organizations and other governments (220,427,138) - Total net position (220,427,138)$ -$
CITY OF BEAUMONT
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements 34 Private Purpose
Trust Fund
Custodial Funds Succesor Agency
ADDITIONS:
Investment Income 9,547$ -$
Assessments 20,048,194 -
Total additions 20,057,741 -
DEDUCTIONS:
Payments to trustee 4,197,050 -
Interest expense 10,100,671 -
Bond proceeds 8,720,632
Payment for infrastructure 2,178,143 -
Donations - 22,003
Total deductions 25,196,496 22,003
Change in net position (5,138,755) (22,003)
NET POSITION:
Beginning of year (215,288,383) 22,003
End of year (220,427,138)$ -$
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Notes to the Basic Financial Statements
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CITY OF BEAUMONT
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
35 Note 1 – Reporting Entity and Summary of Significant Accounting Policies .................... 37
A. Reporting Entity ........................................................................................................ 37 B. Basis of Accounting and Measurement Focus ......................................................... 39 C. Cash, Cash Equivalents and Investments ................................................................ 43 D. Restricted Cash and Investments ............................................................................ 44 E. Prepaid Items ........................................................................................................... 44 F. Capital Assets .......................................................................................................... 44 G. Long-Term Debt ....................................................................................................... 45 H. Compensated Absences .......................................................................................... 45 I. Pensions ................................................................................................................... 46 J. Property Taxes ......................................................................................................... 46 K. Net Position .............................................................................................................. 47 L. Fund Balances ......................................................................................................... 47 M. Use of Estimates ...................................................................................................... 48 N. Fair Value Measurement .......................................................................................... 48 O. Upcoming Governmental Standards Implementation ............................................... 49 P. Implementation of New Pronouncements ................................................................ 49
Note 2 – Cash and Investments .............................................................................................. 50
A. Cash Deposits .......................................................................................................... 50 B. Investments .............................................................................................................. 52 C. External Investment Pool ......................................................................................... 53 D. Investment in CFD Bonds ........................................................................................ 54 E. Risk Disclosures ....................................................................................................... 54
Note 3 – Receivables ............................................................................................................... 56
A. Governmental Activities ............................................................................................ 56
Note 4 – Interfund Balances and Transactions ..................................................................... 58
A. Transfers .................................................................................................................. 58
Note 5 – Capital Assets ........................................................................................................... 59
A. Governmental Activities ............................................................................................ 59 B. Business-Type Activities .......................................................................................... 60 C. Fiduciary Fund Financial Statements ....................................................................... 61
Note 6 – Long-Term Obligations ............................................................................................ 61
A. Governmental Activities ............................................................................................ 61 B. Business-Type Activities .......................................................................................... 68
Note 7 – Debt Without City Commitment ............................................................................... 70
CITY OF BEAUMONT
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022
36 Note 8 – Compensated Absences .......................................................................................... 71
A. Governmental Activities ............................................................................................ 71 B. Business-Type Activities .......................................................................................... 71
Note 9 – Risk Management ..................................................................................................... 71
Note 10 – Pension Plans ......................................................................................................... 73
A. Summary .................................................................................................................. 73 B. General Information about the Pension Plans .......................................................... 74 C. Net Pension Liability ................................................................................................. 76 D. Proportionate Share of Net Pension Liability ............................................................ 79 E. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions ............................................................................................... 81 F. Payable to the Pension Plan .................................................................................... 82
Note 11 – Other Required Disclosures .................................................................................. 82
A. Deficit Fund Balances .............................................................................................. 82 B. Expenditures Exceeding Appropriations .................................................................. 83
Note 12 – Equity Classification ............................................................................................... 83
A. Fund Balances ......................................................................................................... 83 B. Net Position .............................................................................................................. 84
Note 13 – Commitments and Contingencies ......................................................................... 84
A. Litigation ................................................................................................................... 84 B. Grants ....................................................................................................................... 85 C. Construction Commitments ...................................................................................... 85 D. WRCOG Related Settlement Agreement ................................................................. 85
Note 14 – Prior Period Adjustment ......................................................................................... 87
A. Accounting Error Correction ..................................................................................... 87
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
37 Note 1 - Reporting Entity and Summary of Significant Accounting Policies
The basic financial statements of the City of Beaumont, California (the "City") have been prepared in conformity with accounting principles generally accepted of the United States of America ("US GAAP") as applied to governmental agencies. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.
A. Reporting Entity
The City was incorporated November 18, 1912 under the general laws of the State of California. The City operates under a Council-Manager form of government and provides basic local governmental services including public safety (police and fire), maintenance and construction of public improvements, cultural, recreation, planning, zoning, transportation, sewer and general administration.
In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The primary criteria for including a potential component unit within the reporting entity are the governing body's financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship if it appoints a voting majority of an organization's governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.
A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.
Blended Component Units
The financial reporting entity consists of the primary government, the City, and its component units. In addition, component units can be other organizations for which the primary government is accountable and their exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
Blended component units, although legally separate entities, are, in substance part of the government's operation and so data from these units are combined with data of the primary government.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
38 Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)
A. Reporting Entity (Continued)
Blended Component Units (Continued)
Although the following are legally separate from the City, they have been "blended" as though they are part of the City because the component unit's governing body is substantially the same as the City's and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.
The following specific criteria were used in determining the status of the component unit:
Members of the City Council also act as the governing body of the component unit. The City and the component unit are financially interdependent. The component unit is managed by employees of the City. A portion of the City's salary and overhead expenses is billed to the component unit each year.
Beaumont Financing Authority
The Beaumont Financing Authority (the "BFA)" was founded by the execution of a joint exercise of powers agreement dated April 1, 1993, by the City of Beaumont and the former Beaumont Redevelopment Agency. The BFA is authorized to issue revenue bonds to be repaid from the proceeds of public obligations and to provide financing and refinancing for public capital improvements of public entities, including the City, the former Redevelopment Agency, and the Community Facilities Districts. The City Council of the City of Beaumont serves as the governing board for the BFA and the City has fiduciary responsibility for the BFA. The BFA exclusively benefits the City. Transactions are reported in the Beaumont Financing Authority Debt Service fund. There are no separate financial statements available.
Beaumont Utility Authority
The Beaumont Utility Authority (the "BUA") was established on May 15, 2001 by a joint powers agreement between the City of Beaumont and the former Beaumont Redevelopment Agency.
The BUA was created to provide a binding framework for the relationship between the City's utility enterprise fund and the City's General Fund, to address possible impacts of Proposition 218, and to provide greater fiscal strength for the City's fund. The City Council serves as the governing board for the BUA and the City has operational responsibility for the BUA.
Transactions are reported in an enterprise fund. There are no separate financial statements available.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
39 Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)
A. Reporting Entity (Continued)
Blended Component Units (Continued)
Beaumont Parking Authority
The Beaumont Parking Authority (the "BPA") was established on May 1, 2018 by the City of Beaumont City Council through resolution 2018-12 that declared a need for a parking authority in the city. The BPA was created to establish the Beaumont Public Improvement Authority though a joint powers agreement. The City Council serves as the governing board for the BP A and the City has operational responsibility for the BPA. There was no financial activity for the BPA during the fiscal year ending June 30, 2021.
Beaumont Public Improvement Authority
The Beaumont Public Improvement Authority (the "BPIA") was established on May 15, 2018 by a joint powers agreement between the City of Beaumont and the Beaumont Parking Authority. The BPIA is authorized to issue revenue bonds to be repaid from the proceeds of wastewater services and to provide financing and refinancing for public capital improvements of the City's wastewater system The City Council serves as the governing board for the BPIA and the City has operational responsibility for the BPIA. There was no financial activity for the BPIA since inception through the fiscal year ending June 30, 2021.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance, revenues, and expenditures, or expenses as appropriate.
Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.
The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.
Deferred Outflows of Resources represent outflows of resources (consumption of net assets) that apply to future periods and therefore, will not be recognized as an expense until that time.
Deferred Inflows of Resources represent inflows of resources (acquisition of net assets) that apply to future periods and therefore, are not recognized as revenue until that time.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
40 Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Government-Wide Financial Statements
The City's government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental and business- type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in the government-wide financial statements.
These financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, liabilities and deferred amounts, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Certain types of transactions are reported as program revenues within three categories in the statement of activities:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. However, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
Due from/to other funds
Transfers in/out
Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences between fund balance as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that meet the applicable criteria.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
41 Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes.
Expenditures are recorded in the accounting period in which the related fund liability is incurred.
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 as soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met.
Governmental funds of the City are outlined below:
General Fund - This fund accounts for all revenues and expenditures to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In the City, these services include general government, public safety, public works, community development, community service, and refuse.
Development Impact Fees (DIF) Special Revenue Fund - This fund is used to account for the receipt and expenditure of mitigation fees on specified capital projects.
Community Facilities Districts (CFD) Capital Projects Fund - This fund is used to account for bond and annual tax assessments proceeds to be used for the construction and implementation of off-site infrastructure improvements. In addition, the Fund accounts for services and administration assessments received annually.
General Capital Projects Fund - This fund is used to account for financial resources to be used for acquisition, construction and improvement of the city's major capital facilities.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
42 Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Beaumont Financing Authority / Beaumont Public Improvement Authority Debt Service Funds - These funds are authorized to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans to the City and/or to refinance outstanding obligations of the City.
Other Governmental Funds - Other Governmental Funds is the aggregate of all the non- major governmental funds.
Proprietary Fund Financial Statements
Proprietary fund financial statements include a statement of net position, a statement of revenues, expenses and changes in net position, and a statement of cash flows for each major proprietary fund.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses and changes in net position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues.
Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
Proprietary funds of the City are outlined below:
Enterprise Funds
Sewer Fund - This fund was established to receive and disburse funds collected through sewer services charge fees and sewer facilities charges. These funds are used for the operation and maintenance of sewer disposal facilities and the financing of construction outlet sewers.
Transit Fund - The Transit Fund is intended to show the financial position and the operation and maintenance of the City's fixed route and dial-a-ride transit systems.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
43 Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Internal Service Funds
Internal Service Fund - This fund was established to account for future replacement of vehicles, equipment, and IT infrastructure. These funds are used to track goods and services shifted between departments on a cost reimbursement basis.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of fiduciary net position and a statement of changes in fiduciary net position. The City has two types of fiduciary funds presented. They are the private purpose trust funds and custodial funds.
The private purpose trust funds account for activities of the Successor Agency to the Beaumont Redevelopment Agency (the "Successor Agency").
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. Custodial funds use the economic resource measurement focus.
C. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.
Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pool funds in structured notes and asset-backed securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these structured notes and asset-backed securities are subject to market risk as to change in interest rates.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
44 Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)
D. Restricted Cash and Investments
Certain restricted cash and investments are held 1) for transit related activities or 2) by a fiscal agent for the redemption of bonded debt and for acquisition and construction of capital projects.
E. Prepaid Items
Certain payments to vendors reflect cost applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
F. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available. Donated capital assets are valued at acquisition value on the date of the donation. City policy has set the capitalization threshold for reporting capital assets at $5,000.
Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:
Years
Buildings 30
Infrastructure 35 - 120
Machinery and equipment 3 - 5
Furniture and fixtures 3 - 5
Vehicles 3
Computer equipment 3
The City defines infrastructure as the basic physical assets that allow the City to function. The infrastructure assets include streets (including bridges, streetlights, sidewalks, culverts and curbs), sewer system (including plant, collection systems, drains, lift stations), and park lands.
Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. Interest accrued during capital assets construction, if any, is capitalized for the business-type and proprietary funds as part of the asset cost.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
45 Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)
G. Long-Term Debt
Government-Wide Financial Statements
Long-term debt and other financial obligations are reported as liabilities in the appropriate funds.
Bond premiums and discounts, as well as insurance premiums paid to bond insurers, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable premium or discount. Issuance costs are expensed in the period when incurred.
Fund Financial Statements
The fund financial statements do not present long-term assets or liabilities. These amounts are shown in the reconciliation of the governmental funds balance sheet to the government- wide statement of net position.
H. Compensated Absences
Government-Wide Financial Statements
City employees have vested interest in varying levels of vacation and sick leave based on their length of employment and related bargaining unit. Vacation leave is payable to employees at the time a vacation is taken or upon termination of employment. Vacation leave balance accruals are capped at two the employee's annual accrual rate. Sick leave is payable only when an employee is unable to work due to personal or family illness or at separation from employment at different levels depending on the length of employment arid the bargaining unit. There is no cap on the amount of sick leave that can be accrued but there is a cap on the amount that can be cashed out upon termination. Employees with less than five years of employment do not have vested privilege on sick leave and their sick leave is forfeited upon termination. The amount of compensated absences is accrued when incurred in the government-wide financial statements.
Fund Financial Statements
In governmental funds, compensated absences are recorded as expenditures in the years paid. It is the City's policy to liquidate unpaid compensated absences from future resources, rather than currently available financial resources. When an employee is terminated at fiscal year end, the amount of his or her reimbursable unused vacation and/or sick leave is recorded as a liability in the governmental funds. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund's share of the unpaid liability is recorded as a long-term liability of the fund.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
46 Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)
I. Pensions
The City contracts with the California Public Employees' Retirement System (CalPERS) to provide a defined benefit pension plan for its employees and retirees. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported by the plans (Note 10). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.
GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following time frames are used.
Valuation date (VD) June 30, 2020
Measurement date (MD) June 30, 2021
Measurement period (MP) July 1, 2020 to June 30, 2021
Gains and losses related to changes in CalPERS estimates and assumption for determining the total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources and are recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
J. Property Taxes
Property taxes are levied on January 1 and are payable in two installments: November 1 and February 1 of each year. Property taxes become delinquent on December 10 and April 10, for the first and second installments, respectively. The lien date is March 1. The County of Riverside, California (County) bills and collects the property taxes and remits them to the City according to a payment schedule established by the County. City property tax revenues are recognized when received in cash except at year end when they are accrued pursuant to the modified accrual basis of accounting. The City recognizes as revenues at June 30 available taxes or those collected within 60 days.
The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can increase the property tax rate no more than 2% per year. The City receives a share of this basic levy proportionate to what it received during the years 1976 to 1978.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
47 Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)
K. Net Position
For government-wide and proprietary fund financial statements, net position is categorized as follows:
Net Investment in Capital Assets - This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets.
Restricted - This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.
Unrestricted - This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.
When expenses are incurred for purposes for which both restricted and unrestricted net position is available, the City's policy is to apply restricted net position first.
L. Fund Balances
For governmental fund financial statements, fund balances are categorized as follows:
Nonspendable - Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories and long term receivables, or items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.
Restricted - Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.
Committed - Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations imposed by the formal action of the government's highest level of decision making authority normally through resolutions, etc., and that remain binding unless rescinded or modified in the same manner. The City Council is considered the highest authority for the City.
Assigned - Assigned fund balances encompass the portion of net fund balance reflecting the government's intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. On April 5, 2016, the City Council adopted the financial management policies that includes a fund balance policy authorizing the City Manager to make these determination.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
48 Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)
L. Fund Balances (Continued)
Unassigned - This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned for those purposes, it may be necessary to report negative unassigned fund balance in that particular fund.
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City's policy is to apply restricted fund balances first, then unrestricted fund balances as they are needed. When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned.
M. Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosure.
Accordingly, actual results could differ from those estimates.
N. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:
Level 1 - Inputs are unadjusted, quoted prices for identical assets and liabilities in active markets at the measurement date.
Level 2 - Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.
Level 3 - Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
49 Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)
O. Upcoming Governmental Accounting Standards Implementation
The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements:
GASB Statement No. 91, Conduit Debt Obligations is effective for periods beginning after December 15, 2021.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements is effective for periods beginning after June 15, 2022.
GASB Statement No. 96, Subscription-Based Information Technology Arrangements is effective for periods beginning after June 15, 2022.
GASB Statement No. 99, Omnibus 2022 has varying implementation dates with the earliest being effective for fiscal years beginning after June 15, 2022.
GASB Statement No. 100, Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62 is effective for fiscal years beginning after June 15, 2023.
GASB Statement No. 101, Compensated Absences is effective for fiscal years beginning after December 15, 2023. Earlier application is encouraged.
P. Implementation of New Pronouncements
GASB has issued Statement No. 87, Leases. The objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract.
It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
50 Note 2 - Cash and Investments
A. Cash Deposits
The following is a summary of pooled cash and investments and restricted cash and investments at June 30, 2022:
Statement of Net Position
Cash and investments 148,089,942$
Restricted cash and investments 2,344,101
Restricted cash and investments with fiscal agent 4,562,614 Restricted investments in CFDs 75,725,000
Statement of Fiduciary Net Position
Cash and investments 20,983,284
Restricted cash and investments with fiscal agent 13,621,551 Total 265,326,492$
Cash, cash equivalents, and investments, consisted of the following at June 30, 2022:
Deposits with financial institutions 17,692,572$
Deposits with fiscal agents 17,359,389
Petty cash 6,628
Investments 230,267,903
Total cash and investments 265,326,492$
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
51 Note 2 - Cash and Investments (Continued)
A. Cash Deposits (continued)
At June 30, 2022, cash and investments, are reported at fair value based on quoted market prices. The following table represents the fair value measurements of investments recognized in the accompanying Statement of Net Position measured at on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2022:
Total
as of Measurement
June 30, 2022 Inputs
Investments:
State investment pool 73,800,459$ Uncategorized
Certificate of deposit 204,941 Uncategorized
Medium Term Notes 4,904,080 Level 2
Money market funds 35,000,000 Level 2
US Treasury Notes 33,461,604 Level 2
Federal Home Loan Banks 2,708,261 Level 2
Federal Farms Credit Banks 1,339,457 Level 2
Guaranteed investment contract 780,000 Uncategorized Highmark Plus 2,344,101 Uncategorized
Restricted investments in CFDs 75,725,000 Uncategorized Total 230,267,903$
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits.
California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits; however, the City has not waived the collateralization requirements.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
52 Note 2 - Cash and Investments (Continued)
B. Investments
Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of bond proceeds held by the City's bond trustee (fiscal agent) which is described below.
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity of Portfolio in One Issuer
Local Agency Investment Fund (LAIF) N/A None $75 million Negotiable Certificates of Deposits 5 Years 5% 30%
Medium Term Notes 5 Years 5% 30%
Money Market Funds N/A None 20%
US Treasury Notes 5 Years None None
Federal Home Loan Banks 5 Years 5% 10%
Federal Farms Credit Banks 5 Years 5% 10%
Guaranteed Investment Contracts 5 Years None None
Local Obligation Bonds 5 Years 5% 30%
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
53 Note 2 - Cash and Investments (Continued)
B. Investments (Continued)
Investments Authorized by Debt Agreements
Investments of bond proceeds held by the City's bond trustee are governed by provisions of the related debt agreement rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity of Portfolio in One Issuer
Local Agency Investment Fund (LAIF) N/A None $75 million Negotiable Certificates of Deposits None None None
Medium Term Notes N/A None None
Money Market Funds N/A None None
US Treasury Notes None None None
Federal Home Loan Banks None None None
Federal Farms Credit Banks None None None
Guaranteed Investment Contracts None None None
Local Obligation Bonds None None None
C. External Investment Pool
The City is a voluntary participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City's investments in LAIF at June 30, 2022 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:
Structured Notes, are debt securities (other than asset-backed securities) whose cash- flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.
Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2022, the City had $73,800,459 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Backed Securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The value of the City's position in the pool is the same as the value of the pool shares. LAIF is unrated as of June 30, 2022.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
54 Note 2 - Cash and Investments (Continued)
C. External Investment Pool (continued)
Currently, LAIF does not have an investment rating. LAIF has a minimum $5,000 transaction amount in increments of $1,000 with a maximum of 15 transactions (combination of deposits and withdrawals) per month. LAIF requires a one-day prior notice for deposits and withdrawals of $10 million or more.
D. Investment in CFD Bonds
The Beaumont Financing Authority (BFA) and the Beaumont Public Improvement Authority (BPIA) issued Local Agency Revenue Bonds ("Authority Bonds") for investment in the City of Beaumont Community Facilities District (CFD) Special Tax Bonds ("District Bonds"). The District Bonds are local obligation bonds secured solely by special assessments on property owners within the CFD. The Authority Bonds issued by the BFA are repaid solely by debt service payments made on the District Bonds to the BFA. The repayment schedules of the District Bonds, and interest thereon, to the BFA; are concurrent and sufficient to satisfy the debt service requirements of the respective Authority Bonds.
E. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity, the greater the sensitivity its fair value is to changes in market interest rates. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy provides that final maturities of securities cannot exceed five years. Investments governed by the bond indentures may be longer. Maturities of investments vary and depend on liquidity needs of the City.
As of June 30, 2022, the City had the following investments and maturities:
Maturities
Amount 1 year or less 1 - 5 years More than 5 years
Investments:
State investment pool 73,800,459$ 73,800,459$ -$ -$ Certificate of deposit 204,941 204,941 - - Medium Term Notes 4,904,080 - 4,904,080 - Money market funds 35,000,000 35,000,000 - - US Treasury Notes 33,461,604 7,602,515 25,859,089 - Federal Home Loan Banks 2,708,261 - 2,708,261 - Federal Farms Credit Banks 1,339,457 - 1,339,457 - Guaranteed investment contract 780,000 780,000 - - Restricted:
Investments in CFDs 75,725,000 4,510,000 17,065,000 54,150,000 Pension trust - Highmark Plus 2,344,101 2,344,101 - - Total 230,267,903$ 124,242,016$ 51,875,887$ 54,150,000$
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
55 Note 2 - Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Credit Risk
Credit Risk is the risk of loss due to failure of the security issuer. The risk can be identified thru the rating assigned by a nationally recognized statistical rating organization to the issuers of securities. The City minimizes this risk by investing only in the type of investments allowed for municipalities by the Government Code as listed on the City's investment policy and investing only in instruments that are most credit worthy.
Credit Quality Ratings
Standard &
Amount Moody's Poor's
Investments:
State investment pool 73,800,459$ Not Rated Not Rated Certificate of deposit 204,941 Not Rated Not Rated Medium Term Notes 4,904,080 A1-Aaa A1-Aaa
Money market funds 35,000,000 Aaa AAAm
US Treasury Notes 33,461,604 A1-Aaa A1-Aaa
Federal Home Loan Banks 2,708,261 A1-Aaa A1-Aaa
Federal Farms Credit Banks 1,339,457 A1-Aaa A1-Aaa Guaranteed investment contract 780,000 Not Rated Not Rated Restricted investments in CFDs 75,725,000 Not Rated Not Rated Pension trust - Highmark Plus 2,344,101 Not Rated Not rated Total 230,267,903$
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City's investments were subject to custodial credit risk.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
56 Note 2 - Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond the amount stipulated by the California Government Code. City investments that are greater than 5 percent of the total investments are in either an external investment pool or mutual funds and are therefore exempt. The City's investment in CFDs is restricted and is secured by special assessments from property owners and a tax lien on the underlying property.
Total Percentage
as of of
Investment Type June 30, 2022 Investments
Investments:
State investment pool 73,800,459$ 32.05%
Certificate of deposit 204,941 0.09%
Medium Term Notes 4,904,080 2.13%
Money market funds 35,000,000 15.20%
US Treasury Notes 33,461,604 14.53%
Federal Home Loan Banks 2,708,261 1.18%
Federal Farms Credit Banks 1,339,457 0.58%
Guaranteed investment contract 780,000 0.34%
Restricted investments in CFDs 75,725,000 32.89%
Pension trust - Highmark Plus 2,344,101 1.02%
Total 230,267,903$
Note 3 - Receivables
A. Governmental Activities
For the year ended June 30, 2022, changes in the loan receivable of the City's loan program is as follows:
Balance Balance
July 1, 2021 Additions Deletions June 30, 2022
Loan receivable:
Calimesa loan 225,715$ -$ (225,715)$ -$ Total 225,715$ -$ (225,715)$ -$
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
57 Note 3 - Receivable (continued)
A. Governmental Activities (continued)
Calimesa Loan
The City entered into a loan agreement with City of Calimesa for the design and construction of portions of Cherry Valley Boulevard and Palmer Drive. The City of Calimesa will repay the loans within the next 20 years, plus simple interest annually at the rate paid by the Local Agency Investment Fund (LAIF) on January 1 of each year on the unpaid balance. The balance of the loan totaled $0 at June 30, 2022. The final payment included interest of $869 calculated at the LAIF rate of 1.09%.
Lease receivables
For the year ended June 30, 2022, the financial statements include the adoption of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the disclosures below.
On July 1, 2021, the City entered into a 26 month lease as Lessor for the use of cell tower at Chatigny Center. An initial lease receivable was recorded in the amount of $507,543. As of June 30, 2022, the value of the lease receivable is $490,298. The lessee is required to make monthly fixed payments of $24,000. The lease has an interest rate of 1.33%. The cell tower’s estimated useful life was 26 months as of the contract commencement. The value of the deferred inflow of resources as of June 30, 2022 was $488,022 and the City recognized lease revenue of $17,245 during the fiscal year.
On July 1, 2021, the City entered into a 59 month lease as Lessor for the use of cell tower at City Hall. An initial lease receivable was recorded in the amount of $182,012. As of June 30, 2022, the value of the lease receivable is $149,065. The lessee is required to make monthly fixed payments of $3,324. The lease has an interest rate of 2.4%. The cell tower’s estimated useful life was 59 months as of the contract commencement. The value of the deferred inflow of resources as of June 30, 2022 was $147,644 and the City recognized lease revenue of $36,271 during the fiscal year.
As of June 30, 2022, the City had total outstanding lease receivable of $639,363 and related deferred inflows of resources of $635,666.
CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
58 Note 4 - lnterfund Balances and Transactions
A. Transfers
Transfers in and out for the year ended June 30, 2022, were as follows:
Transfers In Transfers Out Amount Purpose
General Fund Non-major Funds 7,458,709$
CFD - City maintenance/admin; Overtime; Corrections;
Maintenance; Safety/Labor Costs
General Capital Projects Fund 132,921 Premium Pay from ARPA Grant Subtotal 7,591,630
Development Impact Fees CFD Captial Projects Fund 357,073 Corrections General Capital Projects Fund 176,429 Capital Projects Subtotal 533,502
Wastewater Fund Non-major Funds 7,088 Corrections CFD Captial Projects Fund 248,815 Capital Projects Subtotal 255,903
General Capital Projects Fund Non-Major Funds 3,991,993 Capital projects CFD Captial Projects Fund 75,362 Capital Projects Development Impact Fund 726,368 Capital Projects Subtotal 4,793,723
Non-major Funds General Fund 111,272 Correct CIP Funding Transit Fund 1,545 Premium Pay from ARPA Grant correction Subtotal 112,817
Total 13,287,575$