Agenda packet — Beaumont City Council, December 19, 2023 (part 7 of 8)

Capital grants and contributions decreased by $539k mostly due to a reduction in developer contributions.

Overall general revenues increased by $12,429m, due to the following changes in all major tax categories:
property taxes increased - $917k (current secured - $802k, unsecured property - $373k, property transfer tax decrease - $258k), sales tax increase - $1,640m, franchise tax increase - $89k (due to an increase of utilities franchise taxes), and other taxes increased $921k (transient occupancy tax and utility users tax increase - $653k, street light assessment increase - $236k and business license tax increase - $31k).

Investment revenues increased a net of $4,082m (due to rising interest rates on investments), Gain on sales of assets increased by $97k due to sale of land of $79k and vehicle auction sales. Miscellaneous revenues increased $3,915k due to collections from WRCOG settlement agreement. And finally, net transfers between governmental and business -type funds are for one-time bonus funds paid, the final payment for Vactor truck payment and funding of wastewater equipment replacement fund.

Business -type program revenues were down a net of $2,808m, when compared to last year. Primary decreases were related to a decrease in wastewater mitigation fees. The increase in wastewater operations service charges were $1,069m. Increases were due to annual rate increases and rising consumption levels resulting from new housing and commercial development connections within the City. Transit operating revenues had a decrease of $36k. Nonoperating revenues increased by $70k mainly attributable to a decrease of $187k in operating grants and contributions and an increase in investment earnings of $108k.

Governmental activities program expenses increased by $17,386m. The result was increases within personnel costs within specific programs during the fiscal year. An increase of $4,464m occurred in Public Safety mostly due to an increase in personnel and the fire services contract with Riverside County. A $5,525m increase in Public Works is mainly attributed to increases in personnel and depreciation expense.

Furthermore, there was a $770k increase in Community Development is mainly due to increases in personnel. General Government operations increase of $6,554m is primarily due to the large decrease in the net pension liability (and related deferred amounts) in the prior year to a significant increase in the net pension liability (and related deferred amounts) in the current year.

The business -type activities expenses reflected a net decrease of $1,381m in program expenses. The Wastewater Enterprise fund had an increase of $1,198m which is made up of an increase in pension obligation payment and operating expenses such as supplies and utility costs. The Transit Enterprise fund had a decrease of $183k mostly due to a decrease in pension obligation costs.

In comparison to fiscal year 2022, the overall change in net position from operations for governmental activities was an increase of $36,138m and business -type activities decreased by $15,636m resulting in an overall City net position increase of $20,502m for fiscal year 2023. 10

Page 765 of 1064 ends

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.

Table 3
Net Cost of Governmental Activities
(Dollars in Thousands)
Total Cost Net Cost
2023 2022 Change 2023 2022 Change
Functions:

General government $ 10,643 $ 4,089 $ 6,554 $ 7,061 $ 2,490 $ 4,571 Public safety 23,317 18,853 4,464 16,902 13,804 3,098
Public works 9,863 4,338 5,525 1,290 (2,656) 3,946
Community development 3,202 2,432 770 (2,176) (2,755) 579 Community services 4,988 2,513 2,475 (1,301) (4,997) 3,696 Refuse - - (114) 114
Interest and fiscal charges 2,564 4,966 (2,402) 2,564 4,966 (2,402) Total Governmental Activities $ 54,577 $ 37,191 $ 17,386 $ 24,340 $ 10,738 $ 13,602 In looking at table 3, you will note the major changes both in total cost and net cost. In 2023, total costs increased by $17,386m, a result of increase in general government, public works and community services, public safety, community development and a decrease in 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 $204,911m a net increase of $39,499m in fund balance; included in this amount are decrease in fund balance for General Fund of $3,888m, an increase in Development Impact Fees (DIF) $7,953m, Other Government Funds $1,324m (due to the addition of the Community Facilities District Special Revenue Fund); combined with increases in the Community Facilities District Capital Projects Fund $198k, General Capital Projects $30,756m, and Beaumont Financing Authority $3,156m. The General Fund had a net decrease in fund balance of $3,888m, resulting from net revenue exceeding expenditures by $19,353mm, netted with total other financing uses of ($23,240m). The significant change from the previous year is mainly due to the transfer of funds to cover capital projects.

In total the Proprietary Funds reported a negative change in net position of $15,636mm, with the Wastewater Enterprise showing a negative change of $15,934m and the Transit Enterprise showing a positive change of $298k. The Wastewater Enterprise ended with a negative change in net position of $15,935m, because of nonoperating expenses exceeding revenues by $18,163m netted against ongoing operating expenses exceeding operating revenues by $16k, and a positive change in transfers and capital contributions of $2,246m. The Transit Fund ended the year with a positive change of $298k, because of ongoing operating expenses exceeding operating revenues by $2,773m offset by nonoperating revenues of $2,621 m and transfers and capital contributions of $451 k. 11

Page 766 of 1064 ends

General Fund Budgetary Highlights
The actual expenditures of the General Fund at year-end were $3,888m more than the actual revenues.

The positive budget -to -actual variance of $11,783m was due to a positive increase in tax revenues and conservative spending citywide with saving in administration services. Of the unspent budget, actual revenues were $5,641 m 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 due to realized loss on investments from rebalancing transactions in the City's investment portfolio Other revenues came in higher than expected due to an increase in building permits and inspections. Favorable budget amendments and supplemental appropriations were made during the year to diminish budget overruns.

The original revenue budget was increased $6,364m mainly for interest earnings and a cost recovery from a WRCOG 3rd party settlement. While the expenditure appropriations budget was increased in total by $4,266m to allow for additional project funding with identified surplus funds to meet strategic goals set by the City Council.

Although, the final adopted budget projected a $15,671 m negative change in fund balance, favorable results in revenues of $5,641m, favorable results in expenditures of $4,996m and favorable results in other financing sources of $1,146k resulted in the combined favorable results of $11,783m, as the actual negative net change in fund balance was $3,888m for the fiscal year ending June 30, 2023.

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
Table 4
Capital Assets (net of depreciation)
(Dollars in Thousands)
Governmental Activities Business -Type Activities Total 2023 2022 2023 2022 2023 2022
Asset Type:

Land $ 32,661 $ 32,661 $ 3,458 $ 3,458 $ 36,119 $ 36,119 Construction in progress 12,287 9,021 113,496 111,672 125,783 120,693 Structures, machinery & equipment 17,677 16,599 16,936 41,004 34,613 57,603 Infrastructure 229,579 229,289 59,837 63,002 289,416 292,291 Right -to -use assets 1,173 760 262 6 1,435 766
Total $ 293,377 $288,330 $193,989 $219,142 $487,366 $507,472 At the end of fiscal year 2023, the City had $487,366m invested in a broad range of capital assets, a total decrease of $20,106m (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 decrease in the City of Beaumont investment in capital assets for fiscal year 2023 was 3.96% (a 1.75% increase in governmental activities and 11.47% decrease in business -type activities). For fiscal year 2023, net decreases are the result of the disposal of wastewater assets removed for the wastewater plant expansion. More information can be found in Note 5 of these financial statements.
12

Page 767 of 1064 ends

Long -Term Liabilities
Under the 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, with detailed information in Note 10 to the financial statements.

Governmental Activities - Governmental Activities - The City governmental funds have $108,511m in outstanding long-term liabilities as of June 30, 2023; with the majority ($80m) related to Local Agency Revenue Bonds. In the Governmental Activities, pension related obligations total $21,119m. Table 5 below and Notes 6, 7, 8, 9 and 10 to the financial statements offer a more detailed view of governmental long- term liabilities.

Table 5
Long -Term Liabilities
(Dollars in Thousands)
Governmental Activities Business -Type Activities Total 2023 2022 2023 2022 2023 2022
Lease liability $ 1,018 $ 757 $ - $ - $ 1,018 $ 757
Subscription liability 303 - 235 - 538 -
1994 Revenue Bonds, Series A - 1,380 - 1,380
2015 Refunding Revenue Bonds, Series A 9,270 9,535 - 9,270 9,535 2015 Refunding Revenue Bonds, Series B 14,380 15,215 - 14,380 15,215 2015 Refunding Revenue Bonds, Series C 3,600 3,805 - 3,600 3,805 2015 Refunding Revenue Bonds, Series D 5,290 5,645 - 5,290 5,645 2019 Refunding Revenue Bonds, Series A 4,415 4,755 - 4,415 4,755 2020 Revenue Bonds, Series A 16,200 16,715 - 16,200 16,715 2021 Revenue Bonds, Series A 17,265 18,675 - 17,265 18,675 Bond premium
2019 revenue bond series A 781 859 - 781 859
2023 Revenue Bonds, CFD 2016-3 8,800 - - 8,800 -
Wastewater Revenue Bonds, Series 2018A - - 76,210 77,565 76,210 77,565 Bond premium - - 6,630 7,217 6,630 7,217
Lease Liability - - - 4 - 4
Subscription liability 303 - 235 - 538 -
Compensated absences 3,465 2,902 478 403 3,943 3,305
Claims payable 2,302 2,291 - 2,302 2,291
Net pension liability 21,119 8,545 2,823 1,102 23,942 9,647 Total $ 108,511 $ 91,079 $86,611 $ 86,291 $195,122 $177,370 Business -type Activities - The enterprise funds have $86,611m in outstanding long-term liabilities as of June 30, 2023. The wastewater fund has bonded debt of $76.210m 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 $6,630m. The Bond issue is paid with wastewater operating revenues. In the enterprise funds pension related obligations total $2,823m.

Additional detailed information for business -type long-term liabilities is shown in Note 6, 8 and 10 to the financial statements.
13

Page 768 of 1064 ends

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
On December 15, 2022, the UC Riverside News reported that the business activity in the Inland Empire has continued to rise and despite the turbulence in the macroeconomy, was forecasted to continue its upward climb in the near -term future. They reported that business activity in the region increased at a 2.8% annualized rate during the 3rd quarter of 2022 and is forecast to grow between 2% and 3% over the following next 12 months. While they did report that they were seeing some weakness in the residential real estate market, that has been largely offset by impressive growth in employment, the labor force, consumer spending, building permits, and commercial real estate. The City of Beaumont has seen the continued trend in consumer spending with an increase of 9.1 % of sales tax revenue over FY22 with business and industry reporting the highest increase at 12.8% and State and County pools also increasing by 10.3%.

According to the Employment Development Department, between October 2022 and October 2023, total nonfarm employment increased by 23,100 a 1.4 percent change with private education and health services adding the most jobs over the year in the Riverside -San Bernardino -Ontario Metropolitan Statistical Area.

Government expanded by 9,900 jobs with local government having added 9,600 jobs. The City of Beaumont increased the personnel count in the General Fund in FY23 by 21.75 FTE and in FY24 by 21 FTE. The added personnel count was needed to keep up with the continued growth of the city and to meet the current service level as well as implementing strategic initiatives of the City Council.

As of July 2023, the Riverside -San Bernardino -Ontario CPI 12 -month percentage change was at 3.4 percent. At the time of this writing, it has increased to 4.9 percent. While this percentage is down from the July 2022 12 -month percentage change of 9.2 percent, inflationary pressures have continued to be a challenge with procurement of goods and services at the estimated planned costs within the budget. The inflationary indexes will continue to be monitored to ensure estimates used in the budgetary process are in line with current trends.

City staff continue 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. Additional assumptions are built into the budget to allow for annual contributions to the Pension 115 Trust. City staff are currently working on a pension funding strategy and policy to continue efforts of budget stabilization from increasing pension costs should there be an economic downturn and reduction of revenues.

On June 6, 2023, the City Council adopted the City of Beaumont Operating and Capital Improvement Program (CIP) Budget for the Fiscal Year beginning July 1, 2023, and ending June 30, 2024. The General Fund operating budget totals $63,074m and is funded by operating revenue of $62,228m, transfers in and other financing sources of $5,562m, leaving $4,716m of appropriations available throughout the fiscal year.

The approved CIP budget for fiscal year 2023/2024 totals $34,781m with a five-year CIP investment plan estimated at $56,652m.

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].
14

Page 769 of 1064 ends

Government -Wide Financial Statements

Page 770 of 1064 ends

CITY OF BEAUMONT
Statement of Net Position
June 30, 2023
Primary Government
ASSETS
Current assets:

Cash and investments
Restricted cash and investments
Receivables:

Accounts
Interest
Intergovernmental
Leases
Deposits
Inventory
Prepaid items
Total current assets
Noncurrent assets:

Restricted cash and investments with fiscal agent
Restricted investment in CFDs
Capital assets:

Nondepreciable
Depreciable, net
Total capital assets, net
Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows
Total deferred outflows of resources
Governmental
Activities
Business -Type
Activities
Total
$ 164,639,622 $ 22,219,249 $ 186,858,871
2,529,271
980,503
627,136
6,177, 887
602,614
362,254
514,407
176,433, 694
3,459,917
80,000,707
44,947,765
248,428, 856
293, 376, 621
376,837,245
553,270,939
11,851,941
11,851,941
- 2,529,271
2,972,279 3,952,782
1,263 628,399
207,379 6,385,266
- 602,614
- 362,254
97,424 97,424
7,090 521,497
25,504,684 201,938,378
1,442 3,461,359
- 80,000,707
116,954,485 161,902,250
77,034,760 325,463,616
193,989,245 487,365,866
193,990,687 570,827,932
219, 495, 371 772, 766, 310
1,558,286
1,558,286
See accompanying Notes to the Basic Financial Statements 15

Page 771 of 1064 ends

13,410,227
13,410,227

CITY OF BEAUMONT
Statement of Net Position (Continued)
June 30, 2023
Primary Government

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities
Salaries payable and related liabilities
Interest payable
Deposits payable
Unearned revenue
Compensated absences - due within one year
Claims payable - due within one year
Long-term liabilities - due within one year
Total current liabilities
Long-term liabilities:

Compensated absences - due in more than one year
Claims payable - due in more than one year
Long-term liabilities - due in more than one year
Aggregate net pension liability
Total long-term liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
Leases
Total deferred inflows of resources

NET POSITION
Net investment in capital assets
Restricted for:

Special projects
Debt service
Capital projects
Pension Trust
Total restricted
Unrestricted
Total net position
Governmental
Activities
$ 9,158, 692
201,752
3,846,781
33,993,284
433,150
65,472
4,771,383
52,470,514
3,032,057
2,236,384
76,550,182
21,119,421
102,938,044
155,408,558
1,564,307
610,726
2,175,033
212,055,056
27,487,423
83,460,624
52,315,932
2,529,271
165,793,250
29,690,983
Business -Type
Activities
$ 895,214
61,995
1,228,113
1,762,907
57,415
2,087,807
6,093,451
421,051
80,987,137
2,822,522
84,230,710
90,324,161
76,830
76,830
110,914,301
12,860,020
12,860,020
6,878,345
Total
$ 10,053,906
263,747
1,228,113
3,846,781
35, 756,191
490,565
65,472
6,859,190
58,563,965
3,453,108
2,236,384
157,537,319
23,941,943
187,168,754
245,732,719
1,641,137
610,726
2,251,863
322,969,357
27,487,423
83,460,624
65,175,952
2,529,271
178,653,270
36,569,328
$ 407,539,289 $ 130,652,666 $ 538,191,955
See accompanying Notes to the Basic Financial Statements 16

Page 772 of 1064 ends

CITY OF BEAUMONT
Statement of Activities
For the year ended June 30, 2023
Program Revenues
Functions/Programs
Primary government:

Governmental activities:

General government
Public safety
Public works
Community development
Community services
Interest and fiscal charges
Total governmental activities
Business -type activities:

Sewer
Transit
Total business -type activities
Total primary government
Expenses
$ 10,642,725
23,317,103
9,863,014
3,201,954
4,987,703
2,563,737
54,576,236
Charges for
Services
Operating Capital
Grants and Grant and
Contributions Contributions
$ 2,552,218 $ 945,278 $ 84,386
1,285,280 794,777 4,334,651
241,251 3,122,724 5,209,131
5,290,899 49,041 37,564
90,561 6,198,459
9,460,209
4,911,820
15,864,191
Total
$ 3,581,882
6,414,708
8,573,106
5,377,504
6,289,020
30,236,220
16,398,348 20,701,562 1,664,877 22,366,439
2,864,795 71,818 2,500,157 416,384 2,988,359
19,263,143 20,773,380 2,500,157 2,081,261 25,354,798
$ 73,839,379 $ 30,233,589 $ 7,411,977 $ 17,945,452 $ 55,591,018 See accompanying Notes to the Basic Financial Statements 17

Page 773 of 1064 ends

CITY OF BEAUMONT
Statement of Activities (Continued)
For the year ended June 30, 2023
Net (Expense) Revenue
and Change in Net Position
Functions/Programs
Primary government:

Governmental activities:

General government
Public safety
Public works
Community development
Community services
Interest and fiscal charges
Total governmental activities
Governmental Business -Type
Activities Activities
$ (7,060,843) $
(16,902,395)
(1,289,908)
2,175,550
1,301,317
(2,563,737)
(24,340,016)
Total
$ (7,060,843)
(16,902,395)
(1,289,908)
2,175,550
1,301,317
(2,563,737)
(24,340,016)
Business -type activities:

Sewer 5,968,091 5,968,091
Transit - 123,564 123,564
Total business -type activities 6,091,655 6,091,655
Total primary government (24,340,016) 6,091,655 (18,248,361) General revenues:

Taxes:

Property taxes 7,932,822 - 7,932,822
Property taxes in -lieu of motor vehicle taxes 6,952,148 - 6,952,148 Sales taxes 28,509,903 - 28,509,903
Vehicle License 56,058 - 56,058
Utility users tax 2,701,744 - 2,701,744
Franchise tax 3,253,677 - 3,253,677
Transient occupancy tax 432,921 - 432,921
Business licenses 381,453 - 381,453
Other taxes 972,981 - 972,981
Total taxes 51,193,707 - 51,193,707
Investment earnings 5,238,845 637,558 5,876,403
Miscellaneous 4,513,689 23,790 4,537,479
Gain/(loss) on disposal of assets 147,743 (23,004,970) (22,857,227) Transfers (615,736) 615,736 -
Total general revenues and transfers 60,478,248 (21,727,886) 38,750,362 Change in net position
Net position:

Beginning of year
36,138,232 (15,636,231) 20,502,001
371,401,057 146,288,897 517,689,954
End of year $ 407,539,289 $ 130,652,666 $ 538,191,955
See accompanying Notes to the Basic Financial Statements 18

Page 774 of 1064 ends

This page intentionally left blank.

Page 775 of 1064 ends

Governmental Fund Financial Statements

Page 776 of 1064 ends

This page intentionally left blank.

Page 777 of 1064 ends

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, refuse and self-insurance.

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.
19

Page 778 of 1064 ends

CITY OF BEAUMONT
Balance Sheet
Governmental Funds
June 30, 2023
Special Revenue Fund Capital Projects Funds
General Development Community Facilities
Fund Impact Fees (DIF) District (CFD)
ASSETS
Cash and investments
Cash and investments with fiscal agent
Restricted investments in Section 115 Trust
Investment in CFDs
Receivables:

Accounts
Interest
Lease
Due from other governments
Prepaids
Total assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities
Accrued payroll and related liabilities
Deposits payable
Unearned revenue
Total liabilities
Deferred Inflows of Resources:

Leases
Total deferred inflows of resources
Fund Balances (deficit):

Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows
of resources and fund balances
$ 40,620,057 $ 48,823,668 $ 13,214,314
2,529,271
875,846
627,136
602,614
5,540,302
244,171
76,288
$ 51,039,397 $ 48,899,956 $ 13,214,314
$ 4,060,258 $ 1,743,701 $
201,752 3,713,871 -
667,292 28,082,759
8,643,173 29,826,460
610,726
610,726
244,171 -
2,529,271 19,073,496
6,329,219 -
2,216,918
30,465,919
41,785,498
13,214,314
19,073,496 13, 214,314
$ 51,039,397 $ 48,899,956 $ 13,214,314
See accompanying Notes to the Basic Financial Statements 20

Page 779 of 1064 ends

CITY OF BEAUMONT
Balance Sheet (Continued)
Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Cash and investments with fiscal agent
Restricted investments in Section 115 Trust
Investment in CFDs
Receivables:

Accounts
Interest
Lease
Due from other governments
Prepaid
Total assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities
Accrued payroll and related liabilities
Deposits payable
Unearned revenue
Total liabilities
Deferred Inflows of Resources:

Leases
Total deferred inflows of resources
Fund Balances (deficit):

Nons penda ble
Restricted
Committed
Assigned
Unassigned
Total fund balances
Capital Projects Funds
General
Capital Projects
Debt Service Fund
Beaumont
Financing Authority
42,427,612 $
28,203
7,175
3,459,917
80,000,707
270,236
Other
Governmental
Funds
Total
Governmental
Funds
$ 12,737,324 $ 157,822,975
3,459,917
2,529,271
80,000,707
166
630,410
980,503
627,136
602,614
6,177, 887
514,407
42,462,990 $ 83,730,860 $ 13,367,900 $ 252,715,417
3,314,157 $
47,215
3,361,372
39,101, 618
39,101, 618
Total liabilities, deferred inflows
of resources and fund balances $
270,236
83,460,624
83,730,860
$ 33,029
85,695
5,243,233
5,361,957
8,413,927
(407,984)
8,005,943
$ 9,151,145
201,752
3,846,781
33,993,284
47,192, 962
610,726
610,726
514,407
126,691,632
45,430,837
2,216,918
30,057,935
204,911,729
42,462,990 $ 83,730,860 $ 13,367,900 $ 252,715,417
See accompanying Notes to the Basic Financial Statements 21

Page 780 of 1064 ends

This page intentionally left blank.

Page 781 of 1064 ends

CITY OF BEAUMONT
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Position
June 30, 2023
Total Fund Balances - Total Governmental Funds $ 204,911,729 Capital assets used in governmental activities were not financial resources and therefore, were not reported in governmental funds.

Capital assets, nondepreciable
Capital assets, depreciable/amortized
Less internal service fund capital assets
Long-term liabilities were not due and payable in the current period and therefore, were not reported in the governmental funds.

Compensated absences
Claims payable
Long-term liabilities
Less internal service fund liabilities
Aggregate collective net pension liability is not due and payable in the current period and therefore is not required to be reported in the governmental funds.

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
Pension -related deferred inflows of resources
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. 44, 947, 765
248,428,856
(1,200,303)
(3,465,207)
(2,301,856)
(81,321,565)
12,483
(21,119,421)
11,851,941
(1,564,307)
8,359,174
Net Position of Governmental Activities $ 407,539,289
See accompanying Notes to the Basic Financial Statements 22

Page 782 of 1064 ends

CITY OF BEAUMONT
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
REVENUES:

Taxes
Franchise fees
Intergovernmental
License and permits
Fines and forfeitures
Assessments levied
Use of money and property
Charges for services
Other revenues
Total revenues
EXPENDITURES:

Current:

General government
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:

Principal
Interest, fiscal, and other charges
Total expenditures

REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):

Lease acquisition
Subscription acquisition
Proceeds from sale of property
Proceeds from bond issuance
Transfers in
Transfers (out)
Total other financing sources (uses)
Net changes in fund balances
FUND BALANCES:

Beginning of year
End of year
General
Fund
$ 38,675,544
3,253,677
7,013,572
5,250,590
302,859
972,981
859,242
1,957,027
5,696,014
63,981,506
9,206,231
21,494,045
4,099,461
2,591,878
5,854,860
670,446
697,420
14,512
44,628,853
19,352,653
Special Revenue Fund
Development
Impact Fees (DIF)
10,663,998
1,041,632
11,705,630
11,705,630
Capital Projects Funds
Community Facilities
District (CFD)
273,110
315,549
588,659
588,659
696,732
552,455
147,743
8,899,322 132,921 -
(33,536,835) (3,884,929) (390,566)
(23,240,583) (3,752,008) (390,566)
(3,887,930) 7,953,622 198,093
45, 673, 428 11,119,874 13, 016, 221
$ 41,785,498 $ 19,073,496 $ 13,214,314
See accompanying Notes to the Basic Financial Statements 23

Page 783 of 1064 ends

CITY OF BEAUMONT
Statement of Revenues, Expenditures, and Changes in Fund Balance (Continued) Governmental Funds
For the year ended June 30, 2023
REVENUES:

Taxes
Franchise fees
Intergovernmental
License and permits
Fines and forfeitures
Assessments levied
Use of money and property
Charges for services
Other revenues
Total revenues
EXPENDITURES:

Current:

General government
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:

Principal
Interest, fiscal, and other charges
Total expenditures

REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):

Beginning of year
End of year
Capital Projects Funds
General
Capital Projects
248,658
434,945
1,707,572
2,391,175
9,380,107
9,380,107
(6,988,932)
38,301,641
(557,008)
37, 744, 633
30, 755, 701
Debt Service Fund
Beaumont
Financing Authority
2,288,363
2,288,363
5,383,071
2,549,144
7,932,215
(5,643,852)
8,800,000
8,800,000
3,156,148
Other Total
Governmental Governmental
Funds Funds
$ 7,546,662 $ 46,222,206
3,253,677
3,915,157 11,177,387
16,784 15,931,372
302,859
1,246,091
172,873 5,112,604
1,957,027
78,964 7,482,550
11,730,440 92,685,773
6,724
312,995
506,715
826,434
10,904,006
(9,580,282)
(9,580,282) 9,581,194
1,323,724 39,499,358
9,212,955
21,807,040
4,099,461
3,098,593
5,854,860
10,050,553
6,080,491
2,563,656
62,767,609
29,918,164
696,732
552,455
147,743
8,800,000
47,333,884
(47,949,620)
8,345,917 80,574,712 6,682,219 165,412,371
39,101,618 $ 83,730,860 $ 8,005,943 $ 204,911,729
See accompanying Notes to the Basic Financial Statements 24

Page 784 of 1064 ends

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, 2023
Net Change in Fund Balances - Total Governmental Funds $ 39,499,358 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) Depreciation expense (net of Internal Service Fund)
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
Proceeds from issuance of debt
Lease/SBITA acquisition
Premium amortization
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. 11, 948,191
(7,564,342)
6,002,420
(8,800,000)
(1,249,187)
78,071
Pension related net adjustments (2,450,473)
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
Changes in claims payable
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.

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. (562,982)
(11,105)
(1,650,037)
898,318
Change in Net Position of Governmental Activities $ 36,138,232 See accompanying Notes to the Basic Financial Statements 25

Page 785 of 1064 ends

Proprietary Fund Financial Statements

Page 786 of 1064 ends

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. 26

Page 787 of 1064 ends

CITY OF BEAUMONT
Statement of Net Position
Proprietary Funds
June 30, 2023
Business -type Activities - Governmental
Enterprise Funds Activities
Sewer Transit Internal Service
Fund Fund Total Fund
ASSETS
Current assets:

Cash and investments
Receivables:

Accounts
Interest
Due from other governments
Deposits
Inventory
Prepaids
20,536,545 $ 1,682,704 $ 22,219,249 $ 6,816,647
2,972,061
1,263
128,437
97,424
5,654
Total current assets 23,741,384
218 2,972,279
1,263
78,942 207,379
97,424
1,436 7,090
1,763,300 25,504,684
362,254
7,178,901
Noncurrent assets:

Restricted cash and investments with fiscal agent 1,442 - 1,442 Capital assets:

Nondepreciable 115,865,900 1,088,585 116,954,485 80,816 Depreciable 190,468,520 7,578,457 198,046,977 1,320,586 Less: accumulated depreciation and amortization (115,060,982) (5,951,235) (121,012,217) (201,099) Total capital assets 191,273,438 2,715,807 193,989,245 1,200,303 Total noncurrent assets 191,274,880 2,715,807 193,990,687 1,200,303 Total assets 215,016,264 4,479,107 219,495,371 8,379,204

DEFERRED OUTFLOWS OF RESOURCES
Pension -related deferred outflows 946,102
Total deferred outflows of resources 946,102
612,184 1,558,286
612,184 1,558,286

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 699,009 196,205 895,214 7,547 Salaries payable and related liabilities 32,319 29,676 61,995 Interest payable 1,228,113 - 1,228,113 -
Unearned revenue 1,408,418 354,489 1,762,907 -
Compensated absences - due within one year 11,968 45,447 57,415 - Long-term liabilities- due within one year 2,087,807 - 2,087,807 12,483 Total current liabilities 5,467,634 625,817 6,093,451
Noncurrent liabilities:

Compensated absences - due in more than one year
Long-term liabilities - due in more than one year
Net pension liability
243,650
80,789,718
1,713,674
177,401
197,419
1,108,848
421,051
80,987,137
2,822,522
Total noncurrent liabilities 82,747,042 1,483,668 84,230,710 20,030
Total liabilities 88,214,676 2,109,485 90,324,161 20,030

DEFERRED INFLOWS OF RESOURCES
Pension -related deferred inflows
Total deferred inflows of resources

NET POSITION (DEFICIT)
Net investment in capital assets
Restricted for capital projects
Unrestricted
Total net position
46,647 30,183 76,830
46,647 30,183 76,830
108,395,913 2,518,388 110,914,301 1,200,303
12,860,020 - 12,860,020
6,445,110 433,235 6,878,345 7,158,871
$ 127,701,043 $ 2,951,623 $ 130,652,666 $ 8,359,174
See accompanying Notes to the Basic Financial Statements 27

Page 788 of 1064 ends

This page intentionally left blank.

Page 789 of 1064 ends

CITY OF BEAUMONT
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the year ended June 30, 2023
Business -type Activities - Governmental
Enterprise Funds Activities
Sewer Transit Internal Service
Fund Fund Total Fund
OPERATING REVENUES:

Charges for services
Other revenue
$ 13,268,270 $ 71,818 $ 13,340,088 $ 1,143,577
4,532 19,258 23,790 -
Total operating revenues 13,272,802 91,076 13,363,878 1,143,577 OPERATING EXPENSES:

Salaries 1,873,822 1,545,224 3,419,046
Fringe benefits 18,520 (3,753) 14,767
Administration 1,491,907 184,703 1,676,610
Contract services 1,296,746 35,634 1,332,380
Fuels, lubricants, and maintenance 537,960 472,013 1,009,973 - Replacement expense - - - 237,114
Supplies 799,057 13,778 812,835 -
Office 22,406 23,496 45,902 -
Utilities 1,124,187 44,823 1,169,010 -
Depreciation and amortization 6,125,129 548,418 6,673,547 154,791 Total operating expenses

OPERATING INCOME (LOSS)
13,289,734 2,864,336 16,154,070 391,905
(16,932) (2,773,260) (2,790,192) 751,672
NONOPERATING REVENUES (EXPENSES):

Local transportation funds 2,096,563 2,096,563
Gain on sale of capital assets 1,535 8,505 10,040
Loss on disposal of capital assets (23,015,010) - (23,015,010) - Mitigation fees 7,433,292 - 7,433,292 -
Intergovernmental - 403,594 403,594 -
Investment earnings 525,017 112,541 637,558 146,727
Interest expense (3,108,614) (459) (3,109,073) (81)
Total nonoperating revenues (expenses)
Income (loss) before operating transfers and
capital contributions
TRANSFERS AND CAPITAL CONTRIBUTIONS:

Riverside County Transportation Commission
Developer capital contributions
Transfers in
(18,163,780) 2,620,744 (15,543,036) 146,646
(18,180,712) (152,516) (18,333,228) 898,318
416,384 416,384
1,664,877 - 1,664,877
580,896 34,840 615,736
Total transfers and capital contributions 2,245,773 451,224 2,696,997 Change in net position
NET POSITION:

Beginning of year
End of year
(15,934,939) 298,708 (15,636,231) 898,318
143,635,982 2,652,915 146,288,897 7,460,856
$ 127,701,043 $ 2,951,623 $ 130,652,666 $ 8,359,174
See accompanying Notes to the Basic Financial Statements 28

Page 790 of 1064 ends

CITY OF BEAUMONT
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
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
Payments to suppliers for goods and services
Payments for general and administrative expenses
Cash received from developers and others
Net cash provided by (used in) operating activities
$ 10,277,204 $ 71,600 $ 10,348,804 $ 1,143,577
(5,191,077) (976,371) (6,167,448) (612,237)
(3,887,297) (2,215,745) (6,103,042)
4,532 19,258 23,790
1,203,362 (3,101,258) (1,897,896) 531,340

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Local transportation funds 2,096,563 2,096,563
Intergovernmental - 899,164 899,164
Transfers in 580,896 34,840 615,736
Net cash provided by (used in) noncapital
financial activities 580,896 3,030,567 3,611,463

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (3,960,205) (512,643) (4,472,848) (780,825) Proceeds from disposition of capital assets 8,505 8,505 Mitigation fees 7,433,292 7,433,292
Developer capital contributions 1,664,877 1,664,877 -
Capital grants received 416,384 416,384
Payment of principal on long-term liabilities (1,965,758) 193,761 (1,771,997) (18,275) Payment of interest on long-term liabilities (3,131,197) (459) (3,131,656) (81) Net cash provided by (used in) capital
and related financing activities 41,009 105,548 146,557 (799,181) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income 525,017 112,541 637,558 146,727
Net cash provided by (used in) investing activities 525,017 112,541 637,558 146,727 Net change in cash and cash equivalents
CASH AND CASH EQUIVALENTS:

Beginning of year
End of year
RECONCILATION TO STATEMENT OF NET POSITION:

Cash and investments
Restricted cash and investments
Restricted cash and investments with fiscal agent
Total cash and cash equivalents
2,350,284 147,398 2,497,682 (121,114)
18,187, 703 1,535,306 19, 723, 009 6,937,761
$ 20,537,987 $ 1,682,704 $ 22,220,691 $ 6,816,647
$ 20,536,545 $ 1,682,704 $ 22,219,249 $ 6,816,647
1,442 1,442
$ 20,537,987 $ 1,682,704 $ 22,220,691 $ 6,816,647
See accompanying Notes to the Basic Financial Statements 29

Page 791 of 1064 ends

CITY OF BEAUMONT
Statement of Cash Flows (Continued)
Proprietary Funds
For the year ended June 30, 2023

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss)
Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization
Other adjustments
Changes in current assets, deferred outflows of resources, liabilities, and deferred inflows of resources:

Accounts receivable
Due from other governments
Deposits
Inventories
Prepaids
Pension -related deferred outflows of resources
Accounts payable and accrued liabilities
Salaries payable and related liabilities
Unearned revenue
Compensated absences
Aggregate net pension liability
Pension -related deferred inflows of resources
Total adjustments
Net cash provided by (used in) operating activities
Business -type Activities -
Enterprise Funds
Sewer Transit
Fund Fund
Total
Governmental
Activities
Internal Service
Fund
$ (16,932) $ (2,773,260) $ (2,790,192) $ 751,672
6,125,129
(360,201)
(37,414)
(97,424)
(5,654)
(518,517)
(1,307,643)
8,326
(2,593,451)
60,098
1,083,942
(1,136,897)
1,220,294
548,418
(218)
(1,436)
(291,494)
(385,191)
7,051
15,798
636,549
(857,475)
(327,998)
6,673,547
(360,419)
(37,414)
(97,424)
(7,090)
(810,011)
(1,692,834)
15,377
(2,593,451)
75,896
1,720,491
(1,994,372)
892,296
154,791
(5,823)
(362,254)
(7,046)
(220,332)
$ 1,203,362 $ (3,101,258) $ (1,897,896) $ 531,340
See accompanying Notes to the Basic Financial Statements 30

Page 792 of 1064 ends

This page intentionally left blank.

Page 793 of 1064 ends

Fiduciary Fund Financial Statements

Page 794 of 1064 ends

This page intentionally left blank.

Page 795 of 1064 ends

FIDUCIARY FUND FINANCIAL STATEMENTS
Custodial Funds - To account for collections received from special assessment district and their disbursement to bondholders.
31

Page 796 of 1064 ends

CITY OF BEAUMONT
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Custodial Funds
ASSETS
Cash and investments $ 21,218,187
Cash and investments with fiscal agent 21,506,447
Due from other governments 185,631
Total assets 42,910,265

LIABILITIES
Interest payable
Unearned revenue
Deposits payable
Due to other governments
Due to bondholders
Total liabilities
Net Position (Deficit)
Restricted for:

Individuals, organizations and other governments
Total net position
4,581,756
14,518
60,829
80,000,707
161,072,601
245,730,411
(202,820,146)
$ (202,820,146)
See accompanying Notes to the Basic Financial Statements 32

Page 797 of 1064 ends

CITY OF BEAUMONT
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2023
Custodial Funds
ADDITIONS:

Investment Income $ 374,817
Assessments 19,270,842
Bond proceeds 9,158,389
Total additions 28,804,048
DEDUCTIONS:

Payments to trustee
Interest expense
Bond principal
Payment for infrastructure
Total deductions
657,573
8,728,582
919,670
891,231
11,197, 056
Change in net position 17,606,992
NET POSITION (DEFICIT):

Beginning of year
End of year
(220,427,138)
$ (202,820,146)
See accompanying Notes to the Basic Financial Statements 33

Page 798 of 1064 ends

This page intentionally left blank.

Page 799 of 1064 ends

Notes to the Basic Financial Statements

Page 800 of 1064 ends

This page intentionally left blank.

Page 801 of 1064 ends

CITY OF BEAUMONT
Index to the Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 1 — Reporting Entity and Summary of Significant Accounting Policies 36 A. Reporting Entity 36
B. Basis of Accounting and Measurement Focus 38
C. Cash, Cash Equivalents and Investments 42
D. Restricted Cash and Investments 43
E. Prepaids and Inventory 43
F. Capital Assets 43
G. Long -Term Debt 44
H. Compensated Absences 44
I. Pensions 45
J. Property Taxes 45
K. Net Position 46
L. Fund Balances 46
M. Use of Estimates 47
N. Fair Value Measurement 47

0. Upcoming Governmental Standards Implementation 48
P. Implementation of New Pronouncements 48
Note 2 — Cash and Investments 49
A. Summary 49
B. Investments 51
C. External Investment Pool 52
D. Investment in CFD Bonds 53
E. Risk Disclosures 53
Note 3 — Receivables 55
A. Governmental Activities 55
Note 4 — Interfund Balances and Transactions 56
A. Transfers 56
Note 5 — Capital Assets 57
A. Governmental Activities 57
B. Business -Type Activities 58
Note 6 — Long -Term Obligations 59
A. Governmental Activities 59
B. Business -Type Activities 65
Note 7 — Debt Without City Commitment 67
34

Page 802 of 1064 ends

CITY OF BEAUMONT
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023
Note 8 — Compensated Absences 68
A. Governmental Activities 68
B. Business -Type Activities 69
Note 9 — Risk Management 69
Note 10 — Pension Plans 70
Note 11 — Other Required Disclosures 79
A. Deficit Fund Balances 79
B. Expenditures Exceeding Appropriations 80
Note 12 — Equity Classification 80
A. Fund Balances 80
B. Net Position 81
Note 13 — Commitments and Contingencies 81
A. Litigation 81
B. Grants 82
C. Construction Commitments 82
D. WRCOG Related Settlement Agreement 82
35

Page 803 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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.
36

Page 804 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) A. Reporting Entity (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.
37

Page 805 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) A. Reporting Entity (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, 2023.

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, 2023.

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. 38

Page 806 of 1064 ends

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.
39

Page 807 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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. 40

Page 808 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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. The Transit Fund is presented separately since it is the only nonmajor proprietary fund type, it is not considered a major fund.
41

Page 809 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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 one type of fiduciary fund presented: a custodial fund, which is used to account for Community Facilities District assessments, debt issuances, the financing of eligible public facilities and debt service. In addition, it also includes an Evidence Fund, used to store and manage evidence collected by law enforcement agencies.

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.

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.
42

Page 810 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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. Prepaids and Inventory
Inventories are valued at cost using the first-in/first-out (FIFO) method and consist of repair parts.

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. 43

Page 811 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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. 44

Page 812 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) I. Pensions
The City contracts with the California Public Employees' Retirement System (CaIPERS) 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. 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)
Measurement date (MD)
Measurement period (MP)
June 30, 2021
June 30, 2022
July 1, 2021 to June 30, 2022
Gains and losses related to changes in CaIPERS 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. 45

Page 813 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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 May 16, 2023, the City Council adopted the financial management policies that includes a fund balance policy authorizing the City Manager to make these determination. 46

Page 814 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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. 47

Page 815 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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. 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. 96, Subscription -Based Information Technology Arrangements. The objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for these arrangements by governments. This Statement increases the usefulness of governments' financial statements by requiring recognition of certain subscription assets and liabilities for arrangements that previously were 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 subscriptions are financings of the right to use an underlying asset and a liability.

The remainder of the is page left intentionally blank
48

Page 816 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 2 - Cash and Investments
A. Summary
The following is a summary of pooled cash and investments and restricted cash and investments as of June 30, 2023:

Statement of Net Position
Cash and investments
Restricted cash and investments
Restricted cash and investments with fiscal agent
Restricted investments in CFDs
Statement of Fiduciary Net Position
Cash and investments
Restricted cash and investments with fiscal agent
$ 186,858,871
2,529,271
3,461,359
80,000,707
21,218,187
21,506,447
Total $ 315,574,842
Cash, cash equivalents, and investments, consisted of the following as of June 30, 2023:

Deposits with financial institutions $ 15,627,540
Deposits with fiscal agents 24,967,807
Petty cash 3,503
Investments 274,975,992
Total cash and investments $ 315,574,842
The remainder of the is page left intentionally blank
49

Page 817 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 2 - Cash and Investments (Continued)
A. Summary (Continued)
As of June 30, 2023, 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 as of June 30, 2023:

Investment Type
State investment pool
Medium Term Notes
Money market funds
US Treasury Bills
US Treasury Notes
Federal Home Loan Banks
Federal Farms Credit Banks
Highmark Plus
Restricted investments in CFDs
Total
Total as of
June 30, 2023
$ 47,452,568
6,540,949
75,573,672
25,122,335
35,122,086
1,320,543
1,313,861
2,529,271
80,000,707
$ 274,975,992
Measurement
Inputs
Uncategorized
Level 2
Level 2
Level 2
Level 2
Level 2
Level 2
Uncategorized
Uncategorized
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.
50

Page 818 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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.

Page 819 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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.

Authorized
Investment Type
Local Agency Investment Fund (LAIF)
Negotiable Certificates of Deposits
Medium Term Notes
Money Market Funds
US Treasury Notes
Federal Home Loan Banks
Federal Farms Credit Banks
Guaranteed Investment Contracts
Local Obligation Bonds
C. External Investment Pool
Maximum
Maturity
N/A
None
N/A
N/A
None
None
None
None
None
Maximum
Percentage
of Portfolio
None
None
None
None
None
None
None
None
None
Maximum
Investment
in One Issuer
$75 million
None
None
None
None
None
None
None
None
The City is a voluntary participant in the Local Agency Investment Fund (LAIF), which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. 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, 2023.

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.
52

Page 820 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 2 - Cash and Investments (Continued)
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, 2023, the City had the following investments and maturities:

Maturities
Investment Type
Amount
State investment pool
Medium Term Notes
Money market funds
US Treasury Bills
US Treasury Notes
Federal Home Loan Bank
Federal Farm Credit Bank
Restricted:

Investments in CFDs
Pension trust - Highmark Plus
Total
$ 47,452,568
6,540,949
75,573,672
25,122, 335
35,122,086
1,320,543
1,313,861
80,000,707
2,529,271
$ 274,975,992
1 year or Tess
$ 47,452,568
75,573,672
25,122, 335
1,042,301
1,320,543
1,313,861
4,090,000
2,529,271
$ 158,444,551
1 - 5 years
$ -
6,540,949
34,079,785
21,905,000
$ 62,525,734
More than 5 years
$
54,005,707
$ 54,005,707
53

Page 821 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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.

Investment Type
Credit Quality Ratings
Standard &
Amount Moody's Poor's
State investment pool $ 47,452,568 Not Rated Not Rated
Medium Term Notes 6,540,949 A1-Aaa A1-Aaa
Money market funds 75,573,672 Aaa AAAm
US Treasury Notes 35,122,086 A1-Aaa A1-Aaa
US Treasury Bills 25,122,335 A1-Aaa A1-Aaa
Federal Home Loan Banks 1,320,543 A1-Aaa A1-Aaa
Federal Farms Credit Banks 1,313,861 A1-Aaa A1-Aaa
Restricted investments in CFDs 80,000,707 Not Rated Not Rated Pension trust - Highmark Plus 2,529,271 Not Rated Not Rated Total $ 274,975,992
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.
54

Page 822 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
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.

Investment Type
Total as of Percentage of
June 30, 2023 Investments
State investment pool $ 47,452,568 17.26%
Medium Term Notes 6,540,949 2.38%
Money market funds 75,573,672 27.48%
US Treasury Notes 35,122,086 12.77%
US Treasury Bills 25,122,335 9.14%
Federal Home Loan Banks 1,320,543 0.48%
Federal Farms Credit Banks 1,313,861 0.48%
Restricted investments in CFDs 80,000,707 29.09%
Pension trust - Highmark Plus 2,529,271 0.92%
Total $ 274,975,992
Note 3 - Receivables
A. Governmental Activities
Lease receivables
The City has entered into a various cell tower leases as the lessor. The leases range from 26 to 59 months. The lessees are required to make monthly fixed payments ranging from $3,324 to $24,000. The leases have interest rates of 1.33% and 2.40%. The combined value of the lease receivable and deferred inflow of resources as of June 30, 2023 was $602,614 and $610,726, respectively. In addition, the City recognized lease revenue of $58,710 during the fiscal year.
55

Page 823 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 4 - Interfund Balances and Transactions
A. Transfers
Transfers in and out for the year ended June 30, 2023, were as follows:

Transfers In Transfers Out Amount
General Fund Non -major Funds $ 8,342,314
General Capital Projects Fund 557,008
Subtotal 8,899,322
Development Impact Fees Non -major Funds 132,921
Subtotal 132,921
Wastewater Fund General Fund 195,170
Non -major Funds 385,726
Subtotal 580,896
General Capital Projects Fund General Fund 33,306,825
CFD Capital Projects Fund 390,566
Development Impact Fund 3,884,929
Non -major fund 719,321
Subtotal 38,301,641
Non -major Funds - Transit Fund General Fund 34,840
Subtotal 34,840
Total $ 47,949,620
Purpose
CFD - City maintenance/admin; Council approved
project funding; police radio funding; final Vactor
Truck payment
Premium pay from Corrections
Capital projects
One time equity bonus; final Vactor Truck payment
Capital Projects
Capital projects
Capital Projects
Capital Projects
Capital Projects
Correct CIP funding
The remainder of the is page left intentionally blank
56

Page 824 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 5 - Capital Assets
A. Governmental Activities
Summary of changes in capital assets for governmental activities for the year ended June 30, 2023 is as follows:

Balance
July 1, 2022
Nondepreciable assets:

Land $ 32,661,061
Construction in progress 9,020,722
Total nondepreciable assets 41,681,783
Depreciable/amortized assets:

Building and improvements
Machinery and equipment
Vehicles
Infrastructure
Intangible right to use assets
Subtotal
Less accumulated depreciation/amortization:

Building and improvements
Machinery and equipment
Vehicles
Infrastructure
Intangible right to use assets
Subtotal
Total depreciable/amortized assets, net
Total
22,609,341
8,408,509
3,945,617
454,928,094
856,533
490,748,094
Balance
Additions Deletions June 30, 2023
$ - $ - $ 32,661,061
9,131,236 (5,865,254) 12,286,704
9,131,236 (5,865,254) 44,947,765
1,281,292
1,256,344
5,824,773
982,415
9,344,824 (778,068) 499,314,850
(397,499)
(380,569)
22,609,341
9,292,302
4,821,392
460,752,867
1,838,948
(10,813,902) (463,283)
(4,902,099) (529,246) 397,499
(2,648,142) (467,652) 380,569
(225,638,896) (5,534,840)
(96,681) (569,321)
(244,099,720) (7,564,342) 778,068 (250,885,994)
246,648,374 1,780,482 - 248,428,856
$ 288,330,157 $ 10,911,718 $ (5,865,254) $ 293,376,621
(11,277,185)
(5,033,846)
(2,735,225)
(231,173,736)
(666,002)
Governmental activities depreciation/amortization
ended June 30, 2023, are as follows:
expense for capital assets for the year
General government
Public safety
Public works
Community development
Community services
Total depreciation/amortization expense
$ 632,303
462,632
5,858,724
114,127
496,556
$ 7,564,342
57

Page 825 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 5 - Capital Assets (Continued)
B. Business -Type Activities
Summary of changes in capital assets for business -type activities for the year ended June 30, 2023, is as follows:

Nondepreciable assets:

Land and Land improvements
Construction in progress
Total nondepreciable assets
Depreciable/amortized assets:

Building and improvements
Machinery and equipment
Vehicles
Infrastructure
Intangible right to use assets
Subtotal
Less accumulated depreciation/amortization:

Building and improvements
Machinery and equipment
Vehicles
Infrastructure
Intangible right to use assets
Subtotal
Total depreciable/amortized assets, net
Total
Balance
July 1, 2022
$ 3,458,322
111,672,254
115,130,576
730,835
90,196,501
6,133,406
145,872,949
8,514
242,942,205
Additions
$ -
1,885,624
1,885,624
910,106
328,731
1,140,835
337,395
2,717,067 (47,612,295) 198,046,977
Deletions
Balance
June 30, 2023
$ - $ 3,458,322
(61,715) 113,496,163
(61,715) 116,954,485
(47,435,327)
(168,454)
(8,514)
730,835
43,671,280
6,293,683
147,013,784
337,395
(599,625) (52,163)
(50,756,518) (1,745,013)
(4,700,549) (494,594)
(82,870,749) (4,305,888)
(2,838) (75,889)
(138,930,279) (6,673,547)
104,011,926 (3,956,480)
$ 219,142,502 $ (2,070,856)
Business -type activities depreciation/amortization
ended June 30, 2023, are as follows:

Sewer
Transit
Total depreciation/amortization expense $ 6,673,547
(651,788)
24,420,317 (28,081,214)
168,454 (5,026,689)
- (87,176,637)
2,838 (75,889)
24,591,609 (121,012,217)
(23,020,686) 77,034,760
$(23,082,401) $ 193,989,245
expense for capital assets for the year
$ 6,125,129
548,418
During the current fiscal year, the City decommissioned part of its wastewater plant resulting in a loss on disposal of $23,015,010. The remainder of the plant is still operational, is functioning, and currently in use. The replacement of the disposed piece will be put into service during the subsequent fiscal year.
58

Page 826 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 6 - Long -Term Liabilities
A. Governmental Activities
Summary of changes in long-term liabilities for the governmental activities for the year ended June 30, 2023, is as follows:

Classification
Balance Balance Due Within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Governmental Activities:

City
Lease Liability $ 756,608 $ 696,732 $ (435,045) $ 1,018,295 $ 454,335 $ 563,960 Subscription Liability 583,213 (280,650) 302,563 283,977 18,586 Beaumont Public Financing Authority
1994 Revenue Bonds, Series A 1,380,000 - (1,380,000) - - - 2015 Refunding Revenue Bonds, Series A 9,535,000 - (265,000) 9,270,000 245,000 9,025,000 2015 Refunding Revenue Bonds, Series B 15,215,000 (835,000) 14,380,000 850,000 13,530,000 2015 Refunding Revenue Bonds, Series C 3,805,000 (205,000) 3,600,000 245,000 3,355,000 2015 Refunding Revenue Bonds, Series D 5,645,000 (355,000) 5,290,000 360,000 4,930,000 2019 Refunding Revenue Bonds, Series A 4,755,000 (340,000) 4,415,000 355,000 4,060,000 2020 Revenue Bonds, Series A 16,715,000 (515,000) 16,200,000 530,000 15,670,000 2021 Revenue Bonds, Series A 18,675,000 - (1,410,000) 17,265,000 1,370,000 15,895,000 Bond premium -2019 Revenue Bond, Series A 858,778 (78,071) 780,707 78,071 702,636 2023 Revenue Bonds, CFD 2016-3 - 8,800,000 - 8,800,000 - 8,800,000 Total Revenue Bonds 76,583,778 8,800,000 (5,383,071) 80,000,707 4,033,071 75,967,636 Total governmental activities $ 77,340,386 $ 10,079,945 $ (6,098,766) $ 81,321,565 $ 4,771,383 $ 76,550,182 Lease liabilities
The City has entered into various leases for equipment, vehicles, and a building. The leases range from 24 to 72 months. The City is required to make annual fixed payments ranging from $7,758 to $331,429. In addition, certain leases require monthly fixed payments ranging from $2, 052 to $3,727. The leases have interest rates ranging from 0.188% to 4.84%.

As of June 30, 2023, the City had total outstanding lease liability of $1,018,295 and right to use asset of $782,301, net of amortization.

Estimated future lease liability requirements are as follows:

Year Ending
June 30,
Principal
Interest Total
2024 $ 454,335 $ 23,197 $ 477,532
2025 138,728 11,525 150,253
2026 138,402 8,368 146,770
2027 146,083 5,090 151,173
2028 140,747 1,631 142,378
Totals $ 1,018,295 $ 49,811 $ 1,068,106
59

Page 827 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Subscription liabilities
As of July 1, 2022 and during the current year, the City entered into several subscription - based IT arrangements for the use of various types of software. The agreements range from 18 to 60 months. The City is required to make annual fixed payments ranging from $2,802 to $90,000. The agreements have interest rates ranging from 1.71% to 2.894%.

As of June 30, 2023, the governmental activities of the City had total outstanding subscription liability of $302,563 and right to use asset of $390,646, net of amortization.

Estimated future subscription liability requirements are as follows:

Year Ending
June 30,
Principal
Interest Total
2024 $ 283,977 $ 7,722 $ 291,699
2025 11,034 406 11,440
2026 7,552 165 7,717
Totals $ 302,563 $ 8,293 $ 310,856
Revenue Bonds
Local Revenue Bonds - 1994
On January 15, 1994, the BFA issued $7,535,000 of 1994 Local Agency Revenue Bonds - Series A and $2,755,000 of 1994 Local Agency Revenue Bonds - Series B (the "Authority Bonds") for the purpose of acquiring the concurrently issued City of Beaumont Community Facilities District No. 93-1 Special Tax Bonds, 1994 Series A (the "District Bonds") in the amount of $9,260,000. Proceeds from the Authority Bonds were used to purchase the District bonds. The bonds were issued to provide the District with funds to design or acquire certain public improvements relating to the District, including water treatment plant facilities and infrastructure. These bonds were paid in full during the current fiscal year.

Local Agency Refunding Revenue Bonds - 2015 Series A
On March 17, 2015, the BFA issued $11,110,000 of 2015 Local Agency Revenue Bonds, Series A (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority 2005 Local Agency Revenue Bonds Series B.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2015 until maturity or earlier redemption. Interest on the bonds ranges from

2.00% to 5.00%.
60

Page 828 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2023 was $9,270,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves.

Local Agency Refunding Revenue Bonds - 2015 Series B
On April 23, 2015, the BFA issued $20,095,000 of 2015 Local Agency Refunding Revenue Bonds, Series B (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority 2004 Local Agency Revenue Bonds Series D.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2015 until maturity or earlier redemption. Interest on the bonds ranges from

2.00% to 5.00%.

Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2023 was $14,380,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves.

Local Agency Refunding Revenue Bonds - 2015 Series C
On May 15, 2015, the BFA issued $5,335,000 of 2015 Local Agency Refunding Revenue Bonds, Series C (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority 2004 Local Agency Revenue Bonds Series A.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2015 until maturity or earlier redemption. Interest on the bonds ranges from

2.00% to 4.125%.
61

Page 829 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2023 was $3,600,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves.

Local Agency Refunding Revenue Bonds - 2015 Series D
On May 15, 2015, the BFA issued $7,820,000 of 2015 Local Agency Refunding Revenue Bonds, Series D (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority 2004 Local Agency Revenue Bonds Series B.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2015 until maturity or earlier redemption. Interest on the bonds ranges from

2.00% to 4.250%.

Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves.

Local Agency Refunding Revenue Bonds - 2019 Series A
On August 8, 2019, the BPIA issued $5,375,000 of 2019 Local Agency Refunding Revenue Bonds, Series A (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority Local Agency Revenue Bonds Series 2007 A, C and D.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2021 until maturity or earlier redemption. Interest on the bonds ranges from

3.0% to 5.0%.
62

Page 830 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2023 was $4,415,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves.

Local Agency Refunding Revenue Bonds - 2020 Series A
On August 13, 2020, the BPIA issued $17,200,000 of 2020 Local Agency Refunding Revenue Bonds, Series A (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority Local Agency Revenue Bonds Series 2011 Series A & B and 2012 Series A.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing March 1, 2021 until maturity or earlier redemption. Interest on the bonds ranges from 0.773% to 2.245%.

Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2023 was $16,200,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves.

Local Agency Refunding Revenue Bonds - 2021 Series A
On June 30, 2021, the BPIA issued $18,675,000 of 2021 Local Agency Refunding Revenue Bonds, Series A (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority Local Agency Revenue Bonds Series 2012 Series B & C, 2013 Series A & B.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing March 1, 2022 until maturity or earlier redemption. Interest on the bonds ranges from 0.265% to 2.397%.
63

Page 831 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2023 was $17,265,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves. 2023 Revenue Bonds, CFD 2016-3
On May 9, 2023, the City authorized the issuance of CFD special tax bonds (CFD 2016-3 Sundance) in the amount of $8,800,000 to finance a portion of the costs of acquiring and constructing certain public infrastructure improvements necessary for development of property within the specific improvement area. Interest on the bonds is payable semi-annually on March 1 and September 1 of each year through September 2053, beginning on September 1, 2023. The bonds bear interest at 5%. Principal payments are due annually beginning on September 1, 2024. The notes are secured by a first pledge of the special tax revenues and funds on deposit in the Bond Fund, Reserve Fund, and Special Tax Fund. The City is not liable for the repayment of the special tax bonds and these debts do not constitute an obligation of the City.

Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2023 was $8,800,000 for the Authority Bonds and is reported in the City's financial statements as the BPIA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves.

In conjunction with the issuance of certain CFD debt, the BPIA issued debt in order to purchase the CFD debt as an investment. As of June 30, 2023, the BPIA owned $80,000,707 in CFD debt.
64

Page 832 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Annual Debt Service Requirements to Maturity
The annual debt service requirements to maturity are as follows:

Year Ending
June 30,
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2044
2045-2049
2050-2054
Totals
B. Business -Type Activities
Principal
$ 3,955,000
4,170,000
4,260,000
4,375,000
4,475,000
24,205,000
16,715,000
11,090,000
3,070,000
2,905,000
$ 79,220,000
Interest
$ 2,422,631
2,641,507
2,519,789
2,393,855
2,266,647
9,569,102
4,804,171
2,489,277
1,027,125
529,250
$ 30,663,354
Total
$ 6,377,631
6,811, 507
6,779,789
6,768,855
6,741,647
33,774,102
21,519,171
13,579,277
4,097,125
3,434,250
$ 109,883,354
Summary of changes in long-term liabilities for the business -type activities for the year ended June 30, 2023, is as follows:

Business -Type Activities:

Wastewater Revenue Bonds
Bond Premium
Lease Liability
Subscription Liability
Total business -type activities
Lease Liability
Balance
July 1, 2022
Classification
Balance Due Within Due in More
Additions Deletions June 30, 2023 One Year Than One Year $ 77,565,000 $ - $ (1,355,000) $ 76,210,000 $ 1,425,000 $ 74,785,000 7,217,363 - (587,016) 6,630,347 587,015 6,043,332
3,658 (3,658)
- 316,903 (82,306) 234,597 75,792 158,805
$ 84,786,021 $ 316,903 $ (2,027,980) $ 83,074,944 $ 2,087,807 $ 80,987,137 The City entered into a 36 -month lease as Lessee for the use of Konica Minolta copiers. An initial lease liability was recorded in the amount of $60,811, with 86% allocated to the General Fund for an initial lease liability of $52,297 and 14% allocated to the Transit Fund for an initial lease liability of $8,514. The lease liability was paid in full during the current fiscal year. 65

Page 833 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 6 - Long -Term Liabilities (Continued)
B. Business -Type Activities (Continued)
Subscription liabilities
As of July 1, 2022 and during the current year, the City entered into several subscription - based IT arrangements for the use of various types of software. The agreements range from 18 to 60 months. The City is required to make annual fixed payments ranging from $2,802 to $90,000. The agreements have interest rates ranging from 1.71% to 2.894%.

As of June 30, 2023, the business -type activities of the City had total outstanding subscription liability of $234,597 and right to use asset of $261,506, net of amortization.

Estimated future subscription liability requirements are as follows:

Year Ending
June 30,
Principal
Interest Total
2024 $ 75,792 $ 5,407 $ 81,199
2025 66,072 3,644 69,716
2026 45,824 2,194 48,018
2027 46,909 1,110 48,019
Total $ 234,597 $ 12,355 $ 246,952
Revenue Bonds
Wastewater Revenue Bonds, Series 2018A
On September 27, 2018, the Beaumont Public Improvement Authority issued $81,105,000 of revenue bonds, to finance the acquisition and construction of certain improvements to the City's Wastewater System and to purchase a debt service reserve surety policy. The bonds were issued at a premium of $9,698,952 which is amortized over the life of the bonds. Interest on the bonds is payable semi-annually on March 1 and September 1 of each year through September 1, 2049. The bonds bear interest ranging from 3% to 5%. Principal payments are due annually beginning on September 1, 2019. The bonds are a special limited obligation of the Authority payable solely from Authority Revenues.
66

Page 834 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 6 - Long -Term Liabilities (Continued)
B. Business -Type Activities (Continued)
The annual debt service requirements to maturity for the revenue bonds is as follows:

Year Ending
June 30, Principal
2024 $ 1,425,000
2025 1,495,000
2026 1,570,000
2027 1,655,000
2028-2032 9,605,000
2033-2037 11,975,000
2038-2042 15,040,000
2043-2047 19,315,000
2048-2051 14,130,000
Totals $ 76,210,000
Note 7 - Debt Without City Commitment
Interest
$ 3,648,713
3,575,713
3,499,088
3,418,463
15,751,563
13,374,469
10,316,250
6,043,625
1,083,500
$ 60,711,383
Total
$ 5,073,713
5,070,713
5,069,088
5,073,463
25,356,563
25,349,469
25,356,250
25,358,625
15,213,500
$ 136,921,383
The City authorized the formation of the various Community Facilities District's (the "CFD's") for purpose of the issuance of bonds under improvement acts of the State of California to finance eligible public facilities to serve developing commercial, industrial, residential, and/or mixed -use developments. Bonds issued by the CFD's are secured by annual special tax levies or liens placed on properties within each CFD. The City, and the BFA, are not liable for repayment and the City, acting as an agent on behalf of the CFD's, is only responsible for levying and collecting the special tax assessments, forwarding the collections to the bond trustee on behalf of bondholders, and initiating foreclosure proceedings on faulted special tax payments when necessary.

The bonds issued by the CFD are limited obligations and are payable solely from special tax assessments, specific bond reserves, and the proceeds from property foreclosures. Since these debts do not constitute an obligation of the City or the BFA/BPIA and the City or BFA/BPIA is not obligated to make payments on the bonds, the District Bonds (whose terms are disclosed in Note 6) are not reported as long-term liabilities in the accompanying City financial statements. The activities related to the District Bond reserves, special assessment tax collection, remittance to the bond trustee, repayment of District Bonds and use of new bond proceeds for developer capital projects for infrastructure, are reported as a custodial fund. 67

Page 835 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 7 - Debt Without City Commitment (Continued)
As of June 30, 2023, debt without City or BFA/BPIA commitment is as follows:
2015 Special Tax Bonds, Series A
2015 Special Tax Bonds, Series B
2015 Special Tax Bonds, Series C
2015 Special Tax Bonds, Series D
2019 Refunding Revenue Bonds, Series A
2020 Refunding Revenue Bond, Series A
2021 Refunding Revenue Bond, Series A
Premium
2023 Revenue Bonds, CFD 2016-3
Subtotal
2017 Special Tax Refunding Bonds, Series A
2018 Special Tax Bonds, Series A
2018 Special Tax Bonds, 1A 7B
2018 Special Tax Bonds, 1A 7D
2018 Special Tax Bonds, 1A 8E
2019 Special Tax Bonds, 1A2016-1
2019 Revenue Bonds, IA 2016-2
2019 Revenue Bonds, IA 2016-4
2020 Revenue Bonds, IA 8F
2020 Revenue Bonds, CFD 2019-1
Total Limited Obligation Bond Debt
Note 8 - Compensated Absences
Balance
June 30, 2023
$ 9,270,000
14,380,000
3,600,000
5,290,000
4,415,000
16,200,000
17,265,000
780,707
8,800,000
80,000,707
73,824,898
32,860,000
1,905,000
3,410,000
12,300,000
8,295,000
9,750,000
3,925,000
12,645,000
2,260,000
$ 241,175,605
The City's total liability for vested and unpaid compensated absences (vacation and vested sick leave) was $3,943,673 as of June 30, 2023.

A. Governmental Activities
For the governmental activities, compensated absences are generally liquidated by the General Fund.

Summary of changes in compensated absences for the year ended June 30, 2023, is as follows:

Balance
July 1, 2022
Classification
Balance Due Within
Additions Deletions June 30, 2023 One Year
Governmental Activities:

Compensated absences $ 2,902,225 $ 562,982 $
Total governmental activities $ 2,902,225 $ 562,982 $
$ 3,465,207
$ 3,465,207
Due in More
Than One Year
$ 433,150 $ 3,032,057
$ 433,150 $ 3,032,057
68

Page 836 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 8 - Compensated Absences (Continued)
B. Business -Type Activities
Summary of changes in compensated absences for the year ended June 30, 2023, is as follows:

Classification
Balance Balance Due Within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Business -Type Activities:

Compensated absences $ 402,570 $ 75,896
Total governmental activities $ 402,570 $ 75,896
Note 9 - Risk Management
$
$
$ 478,466 $ 57,415 $ 421,051
$ 478,466 $ 57,415 $ 421,051
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The City, including its component units, uses the General Fund to account for and finance risks for general liability, workers' compensation, and property damage. There were no settlements in excess of insurance coverage in any of the three prior fiscal years. There were no reductions in the City's limits of coverage during the fiscal year ended June 30, 2023.

General Liability and Property Damage Insurance
The City is self -insured to some extent for general liability claims. The City maintains a self -insured retention level of $250,000 for general liability with excess coverage up to $50,000,000, as a participant in the Exclusive Risk Management Authority of California (ERMAC), a Joint Powers Authority. Property damage is also insured through participation in ERMAC.

The City has entered into contracts with claims administrators to process claims against the City for general liability claims.

Workers' Compensation
The City of Beaumont maintains a self -insured workers' compensation plan, whereby the City covers the cost of medical claims its employees incur. The City has stop loss coverage for this plan to cover claims in excess of $300,000 per participant per year. The City utilizes a third -party administrator to manage claims in accordance with state law. 69

Page 837 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 9 - Risk Management (Continued)
Government Crime Policy
The City carries government crime insurance, including faithful performance/employee dishonesty, forgery or alteration, computer fraud, etc., in the amount of $15 million, with a $2,500 deductible.

The change in claims for the year was as follows:

Current Year
Beginning of Claims and Balance at
Fiscal Year Changes in Claim Fiscal Year
Liability Estimates Payments End
2020-2021 $ 2,206,395 $ 1,675,361 $ (1,075,636) $ 2,806,120 2021-2022 2,806,120 84,356 (599,725) 2,290,751
2022-2023 2,290,751 70,625 (59,520) 2,301,856
Note 10 - Pension Plans
For the governmental activities, pensions are generally liquidated by the General Fund.

Summary
Governmental Business -Type
Activities Activities
Total
Deferred outflows of resources:

CaIPERS Miscellaneous $ 4,006,950 $ 1,558,286 $ 5,565,236 CaIPERS Safety 7,844,991 - 7,844,991
Total deferred outflows of resources $ 11,851,941 $ 1,558,286 $ 13,410,227 Deferred inflows of resources:

CaIPERS Miscellaneous $ 197,559 $ 76,830 $ 274,389
CaIPERS Safety 1,366,748 - 1,366,748
Total deferred inflows of resources $ 1,564,307 $ 76,830 $ 1,641,137 Net pension liabilities:

CaIPERS Miscellaneous $ 7,257,912 $ 2,822,522 $ 10,080,434 CaIPERS Safety 13,861,509 - 13,861,509
Total net pension liabilities $ 21,119,421 $ 2,822,522 $ 23,941,943 Pension expenses:

CaIPERS Miscellaneous $ 1,506,930 $ 586,028 $ 2,092,958 CaIPERS Safety 3,517,241 - 3,517,241
Total net pension liabilities $ 5,024,171 $ 586,028 $ 5,610,199 70

Page 838 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 10 - Pension Plans (Continued)
General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost -Sharing Multiple -Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees' Retirement System (CaIPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as "risk pools"), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in four rate plans (two miscellaneous and two safety). Benefit provisions under the Plan are established by State statute and Local Government resolution. CaIPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CaIPERS' website, at www.calpers.ca.gov .

Benefit Provided
CaIPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full-time employment.

Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost -of -living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

The Plan operates under the provisions of the California Public Employees' Retirement Law (PERL), the California Public Employees' Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CaIPERS Board of Administration. The Plan's authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CaIPERS Board.

The Plan's provisions and benefits in effect on June 30, 2023 are summarized as follows:

Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of
eligible compensation
Required employer contribution rate
Miscellaneous

3.0% @ 60
5 years service
Monthly for life
50-67

2.0% to 3.0%

15.25%
Miscellaneous
PEPRA

2.0% @ 62
5 years service
Monthly for life
52-67

1.0%to2.5%

7.47%
Safety

3.0% @ 50
5 years service
Monthly for life
50-55

3.0%

23.75%
Safety
PEPRA

2.7% @ 57
5 years service
Monthly for life
50-57

2.0% to 2.7%

12.78%
71

Page 839 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 10 - Pension Plans (Continued)
General Information about the Pension Plans (Continued) Contributions
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CaIPERS' annual actuarial valuation process.

For public agency cost -sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan's actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.

Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2023 were $1,931,600 and $2,312,019, for the Miscellaneous and Safety plans, respectively. The actual employer payments of $3,588,836 made to CaIPERS by the City during the measurement period ended June 30, 2022 differed from the City's proportionate share of the employer's contributions of $4,965,721 by $1,376,885, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost -Sharing Multiple Employer Plan.

Net Pension Liability
The City's net pension liability for the Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
72

Page 840 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 10 - Pension Plans (Continued)
Net Pension Liability (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions:

Valuation Date
Measurement Date
Actuarial Cost Method
Asset Valuation Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Mortality Rate Table (1)
Post Retirement Benefit
Increase
June 30, 2021
June 30, 2022
Entry Age Normal
Fair Value of Assets

6.90%

2.30%
Varies by Entry Age and Service
Derived using CALPERS' membership data for all Funds
The lesser of contract COLA or 2.30% until Purchasing
Power Protection Allowance floor on purchasing power
applies, 2.30% thereafter.
(1) The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CaIPERS Experience Study for the period from 2001 to 2019. Pre -retirement and Post -retirement mortality rates include generational mortality improvement using 80% of Scale MP -2020 published by the Society of Actuaries. For more details on this table, please refer to the CaIPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CaIPERS website.

Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CaIPERS took into account both short- term and long-term market return expectations. Using historical returns of all of the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.
73

Page 841 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 10 - Pension Plans (Continued)
Net Pension Liability (Continued)
The expected real rates of return by asset class are as follows:

Asset Class
Assumed
Asset
Allocation
Real Return1'2
Global equity - cap -weighted 30.00% 4.54%
Global equity - non -cap -weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage -backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage (5.00%) (0.59%)
An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.

Change of Assumptions
Effective with the June 30, 2021, valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CaIPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CaIPERS Experience Study and Review of Actuarial Assumptions.
74

Page 842 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 10 - Pension Plans (Continued)
Net Pension Liability (Continued)
Discount Rate
The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Subsequent Events
On July 12, 2021, CaIPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CaIPERS 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 0.20%, from 7.00% to 6.80%.

Since CaIPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes.

This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CaIPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

Pension Plan Fiduciary Net Position
Information about the pension plan's assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CaIPERS' audited financial statements, which are publicly available reports that can be obtained at CaIPERS' website, at www.calpers.ca.gov . The plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. 75

Page 843 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 10 - Pension Plans (Continued)
Proportionate Share of Net Pension Liability
The following table shows the Plan's proportionate share of the net pension liability over the measurement period.

Increase(Decrease)
Total Fiduciary
Pension Liability Net Position
Miscellaneous
Balance at: 6/30/21 (Valuation date) $
Balance at: 6/30/22 (Measurement date)
Net changes during 2021-2022 $ 5,765,369 $ (379,238) $ 6,144,607 Net Pension
Liability
40,128,834 $ 36,193,007 $ 3,935,827
45,894,203 35,813,769 10,080,434
Safety
Balance at: 6/30/21 (Valuation date) $ 52,399,728 $ 46,688,864 $ 5,710,864 Balance at: 6/30/22 (Measurement date) 60,447,793 46,586,284 13,861,509 Net changes during 2021-2022 $ 8,048,065 $ (102,580) $ 8,150,645 Valuation Date (VD), Measurement Date (MD).

The City's proportion of the net pension liability was determined by CaIPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CaIPERS Public Agency Cost -Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CaIPERS' website, at www.calpers.ca.gov.The City's proportionate share of the net pension liability/(asset) for each Plan as of June 30, 2021 and 2022 measurement dates was as follows:

Proportion - June 30, 2022
Proportion - June 30, 2023
Change - Increase (Decrease)
Miscellaneous

0.20728%

0.21543%

0.00815%
Safety Total

0.16273%

0.20172%

0.17837%

0.20728%

0.03899% 0.02891%
76

Page 844 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 10 - Pension Plans (Continued)
Proportionate Share of Net Pension Liability (Continued) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City's proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage -point lower (5.90%) or 1 percentage -point higher (7.90%) than the current rate:

Plan's Net Pension Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
Miscellaneous
Safety
Total
(5.90%)
$ 16,336,641
22,209,255
Rate (6.90%) (7.90%)
$ 10,080,434 $ 4,933,128
13,861,509 7,039,113
$ 38,545,896 $
23,941,943 $ 11,972,241
Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in 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 related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net difference between
projected and actual earnings
on pension plan investments
All other amounts
5 -year straight-line amortization
Straight-line amortization over the expected average
remaining service lives (EARSL) of all members that
are provided with benefits (active, inactive and
retired) as of the beginning of the measurement
period
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost -Sharing Multiple -Employer Plan (PERF C). 77

Page 845 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 10 - Pension Plans (Continued)
Proportionate Share of Net Pension Liability (Continued) The EARSL for PERF C for the measurement period ending June 30, 2022 is 3.7 years, which was obtained by dividing the total service years of 574,665 (the sum of remaining service lifetimes of the active employees) by 153,587 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members' probability of decrementing due to an event other than receiving a cash refund.

Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2021), the City's net pension liabilities were $3,935,827 and $5,710,864, for the Miscellaneous and Safety plans, respectively. For the measurement period ending June 30, 2022 (the measurement date), the City incurred a pension expense of $2,092,958 and $3,517,241 for the Miscellaneous and Safety Plans, respectively.

As of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Miscellaneous Plans
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to measurement date $ 1,931,600 $ - Difference between projected and actual earning on
pension plan investments 1,846,468 -
Change in Employer's Proportion 450,274 -
Changes in assumptions 1,032,951 -
Difference between actual and expected experience 202,435 135,582 Difference between employer's actual contributions
and proportionate share of contributions 101,508 138,807 Totals $ 5,565,236 $ 274,389
Safety Plans
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to measurement date $ 2,312,019 $ Difference between projected and actual earning on
pension plan investments 2,188,926
Change in Employer's Proportion 1,372,708 -
Changes in assumptions 1,397,660 -
Difference between actual and expected experience 573,678 150,525 Difference between employer's actual contributions
and proportionate share of contributions 1,216,223
Totals $ 7,844,991 $ 1,366,748
78

Page 846 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 10 - Pension Plans (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
The amounts above are net of outflows and inflows recognized in the 2021/22 measurement period expense. Contributions subsequent to the measurement date of $1,931,600 and $2,312,019, for the Miscellaneous and Safety Plans, respectively reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year.

Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Year Ended Miscellaneous Safety
June 30, Plans Plans Total
2024 $ 1,029,075 $ 1,286,988 $ 2,316,063
2025 801,298 999,427 1,800,725
2026 399,512 544,536 944,048
2027 1,129,362 1,335,273 2,464,635
2028 - -
Thereafter - -
Totals $ 3,359,247 $ 4,166,224 $ 7,525,471
Payable to the Pension Plan
The City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2022.

Note 11 - Other Required Disclosures
A. Deficit Fund Balances
As of June 30, 2023, the following governmental funds had deficit fund balances:

Fund
Other Federal Grants Fund
Fund Type Deficit
Non -Major fund $ (407,984)
The Other Federal Grants fund has a deficit fund balance as a result of receivables for grant incurred costs that had not been received within the reporting period. 79

Page 847 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 11 - Other Required Disclosures (Continued)
B. Expenditures Exceeding Appropriations
For the year ended June 30, 2023, expenditures exceeded appropriations in the following functions for the following:

Excess
Fund Function Expenditures
General Fund General government: Finance and budget $ 94,221 Public works: Public works 191,375
Debt service: principal 697,420
Debt service: interest 14,512
Road Maintenance and Rehabilitation General government 24 Other Federal Grants Fund Public safety 48,074
Community development 163,962
The budget was established in a manner different than the reporting, and though certain line items were over the departments were within total budget appropriation. Future budgets will consider all reporting elements for proper alignment. The capital budget includes estimated resources and capital expenditures based on the first year of the current capital improvements plan. The expenses are not always in the first year of the plan. The implementation of GASB 96 was not determinable at the time of budget and will be calculated for future years.

Note 12 - Equity Classification
A. Fund Balances
Major Funds
Nonspendable:

Prepaid expenditures
Total nonspendable
Restricted
RMRA
Measure A
AB 2766
PEG Fees
COPS Grant
State Asset Forfeiture
Federal Asset Forfeiture
Other Special Projects
Capital Projects
Debt Service
Community Facilities Districts
Investment in Section 115 Trust
Total restricted
Committed:

Capital Projects
Self Insurance
Total Committed
Community Beaumont
Development Facilities Financing
Impact Fees (DIF) District (CFD) General Authority Other General Special Revenue Capital Projects Capital Projects Debt Service Governmental Fund Fund Fund Fund Fund Funds
Total
$ 244,171 $
244,171
$ 270,236 $ - $ 514,407
- - 270,236 - 514,407
19, 073, 496 13, 214, 314
2,529,271
2,529,271
- 2,329,871 2,329,871
- 2,895,980 2,895,980
267,785 267,785
- 35,712 35,712
- 523,786 523,786
- 294,397 294,397
- 59,719 59,719
409,242 409,242
- 32,287,810
83,460,624 - 83,460,624
- 1,597,435 1,597,435
- 2,529,271
83,460,624 8,413,927 126,691,632
19,073,496 13,214,314
39,101,618 - - 39,101,618
6,329,219 - - - - - 6,329,219
6,329,219 - - 39,101,618 - - 45,430,837
Assigned:

Re -appropriation 2,216,918 - - - - - 2,216,918
Total Assigned 2,216,918 - - - - 2,216,918
Unassigned 30,465,919 - - - - (407,984) 30,057,935
Total Fund Balances
$ 41,785,498 $ 19,073,496 $ 13,214,314 $ 39,101,618 $ 83,730,860 $ 8,005,943 $ 204,911,729 80

Page 848 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 12 - Equity Classification (Continued)
B. Net Position
Governmental Activities
Net Investment in Capital Assets
Net position for governmental activities and business -type activities is classified as 1) net investment in capital assets, 2) restricted, or 3) unrestricted. Net position that was classified as net investment in capital assets as of June 30, 2023, was determined as follows:

Governmental
Activities
Capital assets, net of accumulated depreciation $ 293,376,621 Less capital related debt balance:

Outstanding principal balance of lease liability
Outstanding principal balance of subscription liability Outstanding principal balance of Beaumont Public Financing Authority debt (1,018,295)
(302, 563)
(80, 000, 707)
Net investment in capital assets $ 212,055,056
Business -type Activities
Business -type Activities
Total
Sewer Transit Enterprise
Fund Fund Funds
Capital assets, net of accumulated depreciation $ 191,273,438 $ 2,715,807 $ 193,989,245 Plus (less) capital related debt balance:

Capital related borrowings
Outstanding unamortized bond premium balance
Outstanding balance of subscription liability
(76, 210, 000)
(6,630,347)
(37,178)
(197,419)
(76, 210, 000)
(6,630,347)
(234, 597)
Net investment in capital assets $ 108,395,913 $ 2,518,388 $ 110,914,301 Note 13 - Commitments and Contingencies
A. Litigation
The City is a defendant in a number of lawsuits and a recipient of a number of claims that have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. 81

Page 849 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 13 - Commitments and Contingencies (Continued)
B. Grants
Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies. While no matters of non-compliance were disclosed by the audit of the financial statements or single audit of the Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs.

In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City.

C. Construction Commitments
Various construction projects in all fund types were in progress as of June 30, 2023 with a planned cost to complete of approximately $100,568,128.

D. WRCOG Restated Settlement Agreement
In May 2017, the City and Western Riverside Council of Governments ("WRCOG") entered into an Amended and Restated Settlement Agreement and Release (the "WRCOG Settlement"), which resolved the approximately $62 million judgment WRCOG had obtained against the City. Under the terms of the WRCOG Settlement, the City and WRCOG agreed that the City would rejoin WRCOG and adopt the WRCOG TUMF ordinance. Since the settlement, the City rejoined WRCOG and the TUMF program and as a result, and pursuant to the WRCOG Settlement, the City is now eligible to receive Measure A revenues from the Riverside County Transportation Commission (RCTC) based on the following schedule:

Period
WRCOG* City
Approval Date thru 5th Anniversary of Approval 0% 100%
Second five year period 25% 75%
Third five year period 40% 60%
Fourth five year period 60% 40%
End of fourth five year period through June 2039 75% 25% *W RCOG's share of Measure A revenues shall not exceed a total of $9,400,000 In October 2017, the City segregated $3,000,000, designated for funding Pennsylvania Avenue improvements in accordance with the agreement. The City agreed to complete needed transportation improvements as follows:

Improvement Estimated Cost Completion Deadline
Oak Valley Parkway, Segments 3, 4, and 15 $ 1,200,000 By January 1, 2022 Pennsylvania Avenue 3,800,000 None
82

Page 850 of 1064 ends

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2023
Note 13 - Commitments and Contingencies (Continued)
D. WRCOG Restated Settlement Agreement (Continued)
The City also agreed to assign Third Party Claims to WRCOG to diligently pursue civil lawsuits and through requests/applications for restitution in the criminal actions pending against Third Parties. Recovery related to Third Party Claims would be shared on the following schedule:

Recovery Amount WRCOG City**
First $9,000,000 100% 0%
$9,000,001 - $12,000,000 85% 15%
$12,000,001 - $18,000,000 65% 35%
$18,000,001 and above 50% 50%
**City guarantees $7,000,000 recovery to WRCOG and will pay 50% of the legal fees not to exceed $1,000,000
The settlement agreement stipulates that if Third Party Claims have not produced recoveries of at least $8,000,000 by July 2, 2022, the City will begin making payments to WRCOG in 20 equal annual installments beginning August 1, 2022. Any subsequent recoveries would adjust the annual installments as necessary. As of June 30, 2023, recoveries are approximately $24.7 million. The City continues to share in recoveries at the 35% rate until recoveries total $18 million at which time the City will begin collecting 50% of any recoveries. The City now shares in recoveries based on the settlement agreement; therefore, a liability has not been accrued.

Additionally, in October 2017, two of the seven criminal cases were resolved with guilty pleas with a restitution payment due to the City of $3,000,000. In December 2017, four more of the seven criminal cases were resolved with guilty pleas and restitution payments due of another $8,000,000. The last case was settled in September 2018 with a guilty plea.

WRCOG has released and discharged the City from the WRCOG judgment and Attorneys' Fee Award and interest, which collectively exceeded $62 million. WRCOG and the City also agreed that the litigation, judgment and pending appeals would be dismissed thereby ending the litigation between WRCOG and the City.
83

Page 851 of 1064 ends

Required Supplementary Information (Unaudited)

Page 852 of 1064 ends

This page intentionally left blank.

Page 853 of 1064 ends

CITY OF BEAUMONT
Budgetary Information
For the Year Ended June 30, 2023
Note 1 — Budgetary Information
The City Council approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the Council. All supplementary appropriations, where required during the period, are also approved by the Council. Intradepartmental budget transfers are approved by the City Manager. In most cases, expenditures may not exceed appropriations at the departmental level within the General Fund and at the fund level for other major special revenue funds. At fiscal year-end, all operating budget appropriations lapse.

Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).

Budgets were adopted for all funds except the Federal Asset Seizure Special Revenue Fund. 84

Page 854 of 1064 ends

CITY OF BEAUMONT
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2023
REVENUES:

Taxes
Franchise fees
Intergovernmental
License and permits
Fines and forfeitures
Assessments levied
Use of money and property
Charges for services
Other revenues
Total revenues
EXPENDITURES:

Current:

General government
City council
City clerk
Administration services
Finance and budget
Information Technology
HR / Risk Management
Finance
Nondepartmental
Public safety
Animal control
Office of Emergency
Police department
K-9 Unit
Police support
Fire
Nondepartmental
Public works
Public works
Street maintenance
Community development
Planning and community development
Community enhancement
Building and safety
Community development
Community services
Parks and recreation
Building maintenance
Parks and ground maintenance
Capital outlay
Debt service:

Principal
Interest
Total Expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Lease acquisition
Subscription acquistion
Proceeds from sale of capital assets
Transfers in
Transfers (out)
Total other financing sources
Net change in fund balance
FUND BALANCE:

Beginning of year
End of year
Budgeted Amounts
Original
$ 34,031,097
3,248,286
6,817,117
4,582,942
279,628
698,607
40,000
1,494,723
783,591
51,975,991
Final
$ 34,838,462
3,248,286
6,817,117
4,582,942
279,628
698,607
1,040,000
1,494,723
5,340,591
58,340,356
Actual
Amounts
$ 38,675,544
3,253,677
7,013,572
5,250,590
302,859
972,981
859,242
1,957,027
5,696,014
63,981,506
Variance with
Final Budget
$ 3,837,082
5,391
196,455
667,648
23,231
274,374
(180,758)
462,304
355,423
5,641,150
51,131 51,593 51,593
343,242 466,441 323,962 142,479
1,435,070 2,435,338 1,021,692 1,413,646
1,520,471 1,554,873 1,649,094 (94,221)
1,606,874 1,845,009 1,635,396 209,613
2,626,205 2,987,085 2,893,358 93,727
1,500,000 1,500,000 1,195,582 304,418
- 441,056 435,554 5,502
335,394 354,204 350,725 3,479
162,200 162,200 160,000 2,200
13,758,307 14,050,048 13,761,483 288,565
9,600 10,271 10,271 -
2,538,188 2,569,829 2,091,684 478,145
4,670,961 5,223,487 5,111,936 111,551
7,946 7,946 7,946
1,797,804 1,687,630 1,879,005 (191,375)
2,291,775 2,303,855 2,220,456 83,399
783,600 965,896 626,012 339,884
337,866 362,063 362,063 -
1,498,320 1,504,625 1,213,803 290,822
1,322,868 1,340,426 390,000 950,426
1,131,722 1,209,284 1,152,990 56,294
1,176,701 1,176,701 913,894 262,807
4,109,251 4,598,291 3,787,976 810,315
343,603 816,576 670,446 146,130
697,420 (697,420)
14,512 (14,512)
45,359,099 49,624,727 44,628,853 4,995,874
6,616,892 8,715,629 19,352,653 10,637,024
5,000
8,687,711
(7,932,671)
760,040
5,000
8,726,238
(33,117,617)
696,732 696,732
552,455 552,455
147,743 142,743
8,899,322 173,084
(33,536,835) (419,218)
(24,386,379) (23,240,583) 1,145,796
$ 7,376,932 $ (15,670,750)
(3,887,930) $ 11,782,820
45,673,428
$ 41,785,498
85

Page 855 of 1064 ends

CITY OF BEAUMONT
Budgetary Comparison Schedule
Development Impact Fees (DIF) Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

License and permits
Use of money and property
Total revenues

REVENUES OVER (UNDER)

EXPENDITURES
$ 4,727,963 $ 4,727,963 $ 10,663,998 $ 5,936,035
87,622 87,622 1,041,632 954,010
4,815,585 4,815,585 11,705,630 6,890,045
4,815,585 4,815,585 11,705,630 6,890,045
OTHER FINANCING SOURCES (USES):

Transfers in 132,921 132,921
Transfers (out) (3,850,000) (11,087,922) (3,884,929) 7,202,993 Total other financing sources (uses) (3,850,000) (11,087,922) (3,752,008) 7,335,914 Net change in fund balance
FUND BALANCE:

Beginning of year
End of year
$ 965,585 $ (6,272,337) 7,953,622 $ 14,225,959
11,119,874
$ 19,073,496
86

Page 856 of 1064 ends

CITY OF BEAUMONT
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios
Last Ten Years
For the Year Ended June 30, 2023
Miscellaneous Plan
Measurement
Date
6/30/2014
6/30/2015
6/30/2016
6/30/2017
6/30/2018
6/30/2019
6/30/2020
6/30/2021
6/30/2022
Employer's
Proportion of
the Collective
Net Pension
Liability

0.65770%

0.12477%

0.16750%

0.17352%

0.17792%

0.18574%

0.19475%

0.20727%

0.21542%
Employer's
Proportion
Share of the
Collective Net
Pension Liability
$ 4,092,766
3,423,018
5,818,570
6,840,289
6,705,339
7,438,139
8,214,777
3,935,827
10,080,434
Employer's
Covered Payroll
$ 5,932,314
5,411,229
4,722,459
4,864,133
5,052,100
5,203,663
5,145,199
8,181,668
8,512,450
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
as a Percentage
of the Employer's
Covered
Payroll

68.99%

63.26%
123.21%
140.63%
132.72%
142.94%
159.66%

48.11%
118.42%
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation.

Pension's Plans
Fiduciary Net
Position as a
Percentage of
the Total
Pension Liability

78.28%

78.45%

73.82%

72.89%

74.82%

78.16%

77.75%

90.19%

78.04%
1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Surviwrs Risk Pool. 87

Page 857 of 1064 ends

CITY OF BEAUMONT
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios (Continued)
Last Ten Years
For the Year Ended June 30, 2023
Safety Plan
Measurement
Date
6/30/2014
6/30/2015
6/30/2016
6/30/2017
6/30/2018
6/30/2019
6/30/2020
6/30/2021
6/30/2022
Employer's
Proportion of
the Collective
Net Pension
Liability

0.11126%

0.17862%

0.17381%

0.17034%

0.17176%

0.17251%

0.17600%

0.16273%

0.20172%
Employer's
Proportion
Share of the
Collective Net
Pension Liability
$ 6,923,153
7,359,819
9,002,206
10,177, 973
10, 078, 078
10,769,243
11, 725,412
5,710,864
13, 861, 509
Employer's
Covered Payroll
$ 4,232,207
4,134,515
3,613,896
3,722,313
3,862,606
3,978,484
3,676,631
4,334,892
5,303,955
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
as a Percentage
of the Employer's
Covered
Payroll
163.58%
178.01%
249.10%
273.43%
260.91 %
270.69%
318.92%
131.74%
261.34%
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation.

Pension's Plans
Fiduciary Net
Position as a
Percentage of
the Total
Pension Liability

76.98%

77.95%

74.79%

73.93%

75.38%

75.68%

75.61 %

89.10%

77.07%
1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool. 88

Page 858 of 1064 ends

CITY OF BEAUMONT
Schedule of Pension Plan Contributions
Last Ten Years
For the Year Ended June 30, 2023
Miscellaneous Plan
Contractually
Determined
Fiscal Year Contributions
Contribution in
Relation to the
Contractually
Determ ined
Contributions
Contribution
Deficiency
(Excess)
2013-14 $ 996,243 $ (996,243) $
2014-15 962,897 (962,897)
2015-16 732,914 (732,914)
2016-17 816,082 (816,082)
2017-18 956,792 (956,792)
2018-19 1,156, 583 (1,156,583)
2019-20 1,390,388 (1,390,388)
2020-21 1,595,1 85 (1,595,185)
2021-22 1,667,472 (1,667,472)
2022-23 1, 931, 600 (1,931,600)
Employer's
Covered Payroll
$ 5,932,314
5,411,229
4,722,459
4,864,133
5,052,100
5,203,663
5,145,199
8,181,668
8,512,450
10, 099, 832
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation.

Contributions as
a Percentage of
Covered
Payroll

16.79%

17.79%

15.52%

16.78%

18.94%

22.23%

27.02%

19.50%

19.59%

19.13%
Employers are assumed to make contributions equal to the actuarially determined contributions.

However, some employers may choose to make additional contributions towards their unfunded liability.

Employer contributions for such plans exceed the actuarially determined contributions.

Notes to Schedule:

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool.

Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CaIPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65% to 7.15% in 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from

7.50% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.50% discount rate. 89

Page 859 of 1064 ends

CITY OF BEAUMONT
Schedule of Pension Plan Contributions (Continued)
Last Ten Years
For the Year Ended June 30, 2023
Safety Plan
Contribution in
Relation to the Contributions as
Contractually Contractually Contribution a Percentage of Determined Determined Deficiency Employer's Covered
Fiscal Year Contributions Contributions (Excess) Covered Payroll Payroll 2013-14 $ 1,421,157 $ (1,421,157) $ - $ 4,232,207 33.58% 2014-15 1,356,940 (1,356,940) 4,134,515 32.82%
2015-16 1,181,118 (1,181,118) - 3,613,896 32.68%
2016-17 1,281,860 (1,281,860) 3,722,313 34.44%
2017-18 1,402,549 (1,402,549) - 3,862,606 36.31%
2018-19 1,645,661 (1,645,661) 3,978,484 41.36%
2019-20 1,838,564 (1,838,564) - 3,676,631 50.01%
2020-21 1,751,746 (1,751,746) 4,334,892 40.41%
2021-22 1,921,364 (1,921,364) - 5,303,955 36.23%
2022-23 2,312,019 (2,312,019) 6,360,725 36.35%
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. 'Employers are assumed to make contributions equal to the actuarially determined contributions.

However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.

Notes to Schedule:

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool.

Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CaIPERS Experience Study and Review of Actuarial Assumptions.There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp -up and ramp -down on UAL bases attributable to assumption changes and non -investment gains/losses. The new policy also does not utilize a five- year ramp -down on investment gains/losses. These changes apply onlyto new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CaIPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65% to 7.15% in 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.50% discount rate. 90

Page 860 of 1064 ends

This page intentionally left blank.

Page 861 of 1064 ends

Supplementary Information

Page 862 of 1064 ends

Major Governmental Funds
Budgetary Comparison Schedule

Page 863 of 1064 ends

CITY OF BEAUMONT
Major Governmental Fund Budgetary Comparison Schedule
Community Facilities District (CFD) - Capital Projects Fund For the Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Assessments levied $ - $ - $ 273,110 $ 273,110
Use of money and property - - 315,549 315,549
Total revenues - - 588,659 588,659

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Transfers (out)
- - 588,659 588,659
(1,300,000) (1,450,000) (390,566) 1,059,434
Total other financing sources (1,300,000) (1,450,000) (390,566) 1,059,434 Net change in fund balance $ (1,300,000) $ (1,450,000) 198,093 $ 1,648,093 FUND BALANCE:

Beginning of year 13,016,221
End of year $ 13,214,314
91

Page 864 of 1064 ends

CITY OF BEAUMONT
Major Governmental Fund Budgetary Comparison Schedule
General Capital Projects - Capital Projects Fund
For the Year Ended June 30, 2023
REVENUES:

Intergovernmental
Use of money and property
Other revenues
Total revenues
Budgeted Amounts
Original Final
$ - $
EXPENDITURES:

Capital outlay 14,514,635 46,819,242
Total Expenditures 14,514,635 46,819,242

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Transfers in
Transfers (out)
Total other financing sources
Net change in fund balance
FUND BALANCE:

Beginning of year
End of year
(14,514,635) (46,819,242)
14,514,635
49,502,764
14,514,635 49,502,764
$ - $ 2,683,522
Actual Variance with
Amounts Final Budget
$ 248,658 $ 248,658
434,945 434,945
1,707,572 1,707,572
2,391,175 2,391,175
9,380,107 37,439,135
9,380,107 37,439,135
(6,988,932) 39,830,310
38,301,641
(557,008)
(11,201,123)
(557,008)
37,744,633 (11,758,131)
30,755,701 $ 28,072,179
8,345,917
$ 39,101,618
92

Page 865 of 1064 ends

CITY OF BEAUMONT
Major Governmental Fund Budgetary Comparison Schedule
Beaumont Financing Authority — Debt Service Fund
For the Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property $ 6,417,870 $ 6,417,870 $ 2,288,363 $ (4,129,507) Total revenues 6,417,870 6,417,870 2,288,363 (4,129,507) EXPENDITURES:

Debt service:

Principal 4,170,000 4,170,000 5,383,071 (1,213,071)
Interest, fiscal, and other charges 2,247,870 2,247,870 2,549,144 (301,274) Total Expenditures 6,417,870 6,417,870 7,932,215 (1,514,345)

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Proceeds from bond issuance
(5,643,852) (5,643,852)
8,800,000 8,800,000
Total other financing sources - 8,800,000 8,800,000
Net change in fund balance $ $ - 3,156,148 $ 3,156,148
FUND BALANCE:

Beginning of year 80,574,712
End of year $ 83,730,860
93

Page 866 of 1064 ends

This page intentionally left blank.

Page 867 of 1064 ends

Non -Major Governmental Funds
Combining Schedules

Page 868 of 1064 ends

CITY OF BEAUMONT
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2023
Special Revenue Funds
Road Maintenance
State Gas and Rehabilitation Measure A AB 2766
Tax Fund Act Fund Fund Fund
ASSETS
Cash and investments
Receivables:

Accounts
Due from other governments
Total assets
$
$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $
Deposits payable
Unearned revenue
Total liabilities
$ 2,220,332 $ 2,761,618 $ 249,545
109,539 134,362 18,240
$ 2,329,871 $ 2,895,980 $ 267,785
$
$ $
Fund Balances (deficit):

Restricted 2,329,871 2,895,980 267,785
Unassigned - - -
Total fund balances 2,329,871 2,895,980 267,785
Total liabilities and fund balances $ $ 2,329,871 $ 2,895,980 $ 267,785 94

Page 869 of 1064 ends

CITY OF BEAUMONT
Combining Balance Sheet (Continued)
Non -Major Governmental Funds
June 30, 2023
Special Revenue Funds
Other Federal COPS State
PEG Fees Grants Grant Asset Seizure
Fund Fund Fund Fund
ASSETS
Cash and investments $ 35,546 $ 4,472,193 $ 523,786 $ 323,576 Receivables:

Accounts 166 -
Due from other governments - 273,071 944
Total assets $ 35,712 $ 4,745,264 $ 523,786 $ 324,520

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $
Deposits payable
Unearned revenue
Total liabilities
$ $
5,153,248
5,153,248
Fund Balances (deficit):

Restricted 35,712
Unassigned - (407,984)
Total fund balances 35,712 (407,984)
523,786
523,786
523,786 $
Total liabilities and fund balances $ 35,712 $ 4,745,264 $ $
30,123
30,123
294,397
294,397
324,520
95

Page 870 of 1064 ends

CITY OF BEAUMONT
Combining Balance Sheet (Continued)
Non -Major Governmental Funds
June 30, 2023
Special Revenue Funds
Federal Other Total Other
Asset Seizure Special Revenue Community Facilities Governmental Fund Fund District (CFD) Funds
ASSETS
Cash and investments $ 59,719 $ 433,497 $ 1,657,512 $ 12,737,324 Receivables:

Accounts 166
Due from other governments 35,679 58,575 630,410
Total assets $ 59,719 $ 469,176 $ 1,716,087 $ 13,367,900

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ $ 72 $ 32,957 $ 33,029 Deposits payable 85,695 85,695
Unearned revenue 59,862 - 5,243,233
Total liabilities 59,934 118,652 5,361,957
Fund Balances (deficit):

Restricted 59,719 409,242 1,597,435 8,413,927
Unassigned - - - (407,984)
Total fund balances 59,719 409,242 1,597,435 8,005,943
Total liabilities and fund balances $ 59,719 $ 469,176 $ 1,716,087 $ 13,367,900 96

Page 871 of 1064 ends

CITY OF BEAUMONT
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non -Major Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds
Road Maintenance
State Gas and Rehabilitation Measure A AB 2766
Tax Fund Act Fund Fund Fund
REVENUES:

Taxes
Intergovernmental
License and permits
Use of money and property
Other revenues
Total revenues
$ $ $ 901,847 $ -
1,370,372 1,207,000 - 89,522
1,306 4,997 69,464 7,277
1,371,678 1,211,997
971,311 96,799
EXPENDITURES:

Current:

General Government 75 24 - -
Public safety - 173,009
Community development - -
Total expenditures 75 24 - 173,009

REVENUES OVER
(UNDER) EXPENDITURES
1,371,603 1,211,973
971,311 (76,210)
OTHER FINANCING SOURCES (USES):

Transfers (out) (1,441,202) (30,452) -
Total other financing sources (uses) (1,441,202) (30,452) - Net changes in fund balances (69,599) 1,211,973 940,859 (76,210) FUND BALANCES (DEFICIT):

Beginning of year 69,599 1,117,898 1,955,121 343,995
End of year $ $ 2,329,871 $ 2,895,980 $ 267,785
97

Page 872 of 1064 ends

CITY OF BEAUMONT
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Non -Major Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds
Other Federal COPS State
PEG Fees Grants Grant Asset Seizure
Fund Fund Fund Fund
REVENUES:

Taxes $ - $ $ - $ -
Intergovernmental - 982,401 156,938 944
License and permits 13,730 - - -
Use of money and property 900 4,905 12,839 929
Other revenues - - -
Total revenues
EXPENDITURES:

Current:

General Government
Public safety
Community development
Total expenditures

REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):

Transfers (out)
Total other financing sources (uses)
Net changes in fund balances
FUND BALANCES (DEFICIT):

Beginning of year
End of year
14,630 987,306 169,777 1,873
6,625 -
- 48,074 55,540
- 190,753 -
2,500
6,625 238,827 55,540 2,500
8,005 748,479 114,237 (627)
- (975,802) (43,350) -
- (975,802) (43,350) -
8,005 (227,323) 70,887 (627)
27,707 (180,661) 452,899 295,024
$ 35,712 $ (407,984) $ 523,786 $ 294,397
98

Page 873 of 1064 ends

CITY OF BEAUMONT
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Non -Major Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds
Federal Other Total Other
Asset Seizure Special Revenue Community Facilities Governmental Fund Fund District (CFD) Funds
REVENUES:

Taxes $ - $ $ 6,644,815 $ 7,546,662
Intergovernmental 53,147 54,833 3,915,157
License and permits 3,054 16,784
Use of money and property 536 11,285 58,435 172,873
Other revenues - 78,964 78,964
Total revenues
EXPENDITURES:

Current:

General Government
Public safety
Community development
53,683 148,136 6,703,250 11,730,440
6,724
33,872 312,995
15,847 300,115 506,715
Total expenditures 49,719

REVENUES OVER
(UNDER) EXPENDITURES
300,115 826,434
53,683 98,417 6,403,135 10,904,006
OTHER FINANCING SOURCES (USES):

Transfers (out) (9,600) (7,079,876) (9,580,282)
Total other financing sources (uses) (9,600) (7,079,876) (9,580,282) Net changes in fund balances 53,683 88,817 (676,741) 1,323,724 FUND BALANCES (DEFICIT):

Beginning of year 6,036 320,425 2,274,176 6,682,219
End of year $ 59,719 $ 409,242 $ 1,597,435 $ 8,005,943
99

Page 874 of 1064 ends

This page intentionally left blank

Page 875 of 1064 ends

Non -Major Governmental
Budgetary Comparison Schedules

Page 876 of 1064 ends

This page intentionally left blank.

Page 877 of 1064 ends

CITY OF BEAUMONT
Budgetary Comparison Schedule
State Gas Tax Fund
For the Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental $ 1,458,080 $ 1,458,080 $ 1,370,372 $ (87,708) Use of money and property 1,413 1,413 1,306 (107)
Total revenues 1,459,493 1,459,493 1,371,678 (87,815)
EXPENDITURES:

Current:

General Government
Total Expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Transfers (out)
Total other financing sources
441,056
441,056
1,459,493 1,018,437
75 440,981
75 440,981
1,371,603 353,166
(1,459,493) (1,459,493) (1,441,202) 18,291
(1,459,493) (1,459,493) (1,441,202) 18,291
Net change in fund balance $ $ (441,056) (69,599) $ 371,457 FUND BALANCE:

Beginning of year
End of year
69,599
$
100

Page 878 of 1064 ends

CITY OF BEAUMONT
Budgetary Comparison Schedule
Road Maintenance and Rehabilitation Act Fund
For the Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental $ 1,166,685 $ 1,166,685 $ 1,207,000 $ 40,315 Use of money and property 1,819.00 1,819.00 4,997 3,178 Total revenues 1,168,504 1,168,504 1,211,997 43,493
EXPENDITURES:

Current:

General government - 24 (24)
Total Expenditures 24 (24)

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Transfers (out)
Total other financing sources
Net change in fund balance
FUND BALANCE:

Beginning of year
End of year
1,168, 504 1,168, 504 1,211,973 43,469
(892,435) (892,435) 892,435
(892,435) (892,435) 892,435
$ 276,069 $ 276,069 1,211,973 $ 935,904
1,117,898
$ 2,329,871
101

Page 879 of 1064 ends

CITY OF BEAUMONT
Budgetary Comparison Schedule
Measure A Fund
For the Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes $ 604,800 $ 604,800 $ 901,847 $ 297,047
Use of money and property 1,100 1,100 69,464 68,364
Total revenues 605,900 605,900 971,311 365,411

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Transfers (out)
605,900 605,900 971,311 365,411
(604,800) (604,800) (30,452) 574,348
Total other financing sources (604,800) (604,800) (30,452) 574,348 Net change in fund balance $ 1,100 $ 1,100 940,859 $ 939,759 FUND BALANCE:

Beginning of year 1,955,121
End of year $ 2,895,980
102

Page 880 of 1064 ends

CITY OF BEAUMONT
Budgetary Comparison Schedule
AB 2766 Fund
For the Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental $ 70,000 $ 70,000 $ 89,522 $ 19,522
Use of money and property 1,130 1,130 7,277 6,147
Total revenues 71,130 71,130 96,799 25,669
EXPENDITURES:

Current:

Public safety - 188,785 173,009 15,776
Community services 12,360 12,360 - 12,360
Total Expenditures 12,360 201,145 173,009 28,136
Net change in fund balance $ 58,770 $ (130,015) (76,210) $ 53,805 FUND BALANCE:

Beginning of year 343,995
End of year $ 267,785
103

Page 881 of 1064 ends

CITY OF BEAUMONT
Budgetary Comparison Schedule
PEG Fees Fund
For the Year Ended June 30, 2023
REVENUES:

License and permits
Use of money and property
Total revenues
EXPENDITURES:

Current:

General government
Community service
Total Expenditures

REVENUES OVER (UNDER)

EXPENDITURES
Net change in fund balance
FUND BALANCE:

Beginning of year
End of year
Budgeted Amounts
Original Final
$ 22,475 $
120
Actual
Amounts
Variance with
Final Budget
22,475 $ 13,730 $ (8,745)
120 900 780
22,595 22,595 14,630 (7,965)
9,400
2,600
12,000
10,595
9,400
2,600
12,000
10,595
$ 10,595 $ 10,595
6,625 2,775
- 2,600
6,625 5,375
8,005 (2,590)
8,005 $ (2,590)
27,707
$ 35,712
104

Page 882 of 1064 ends

CITY OF BEAUMONT
Budgetary Comparison Schedule
Other Federal Grants Fund
For the Year Ended June 30, 2023
Budgeted Amounts
Original Final
REVENUES:

Intergovernmental $ 62,000
Use of money and property -
Total revenues 62,000
EXPENDITURES:

Current:

Public safety
Community development
Total Expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Transfers (out)
Total other financing sources
Net change in fund balance
FUND BALANCE (DEFICIT):

Beginning of year
End of year
12,000
12,000
50,000
Actual
Amounts
Variance with
Final Budget
$ 1,826,791 $ 982,401 $ (844,390)
- 4,905 4,905
1,826,791
26,791
26,791
1,800,000
987,306
48,074
190,753
238,827
748,479
(839,485)
(48,074)
(163,962)
(212,036)
(1,051,521)
(280,000) (2,030,000) (975,802) 1,054,198
(280,000) (2,030,000) (975,802) 1,054,198
$ (230,000) $ (230,000) (227,323) $ 2,677
(180,661)
$ (407,984)
105

Page 883 of 1064 ends

CITY OF BEAUMONT
Budgetary Comparison Schedule
COPS Grant Fund
For the Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental $ 150,000 $ 150,000 $ 156,938 $ 6,938 Use of money and property 751 751 12,839 12,088
Total revenues 150,751 150,751 169,777 19,026
EXPENDITURES:

Current:

Public safety 17,726 60,266 55,540 4,726
Total Expenditures 17,726 60,266 55,540 4,726

REVENUES OVER (UNDER)

EXPENDITURES
133,025 90,485 114,237 23,752
OTHER FINANCING SOURCES (USES):

Transfers (out) (70,456) (108,983) (43,350) 65,633
Total other financing sources (70,456) (108,983) (43,350) 65,633 Net change in fund balance $ 62,569 $ (18,498) 70,887 $ 89,385 FUND BALANCE:

Beginning of year 452,899
End of year $ 523,786
106

Page 884 of 1064 ends

CITY OF BEAUMONT
Budgetary Comparison Schedule
State Asset Seizure Fund
For the Year Ended June 30, 2023
REVENUES:

Intergovernmental
Use of money and property
Total revenues
EXPENDITURES:

Current:

Public safety
Total Expenditures

REVENUES OVER (UNDER)

EXPENDITURES
Net change in fund balance
FUND BALANCE:

Beginning of year
End of year
Budgeted Amounts
Original Final
$ 2,500 $
456
2,956
2,956
Actual
Amounts
2,500 $ 944
456 929
2,956 1,873
3,300
3,300
(344)
$ 2,956 $
(344)
2,500
2,500
Variance with
Final Budget
$ (1,556)
473
(1,083)
800
800
(627) (283)
(627) $ (283)
295,024
$ 294,397
107

Page 885 of 1064 ends

CITY OF BEAUMONT
Budgetary Comparison Schedule
Other Special Revenue Fund
For the Year Ended June 30, 2023
REVENUES:

Intergovernmental
License and permits
Use of money and property
Other revenues
Total revenues
EXPENDITURES:

Current:

Public safety
Community development
Total Expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Transfers (out)
Total other financing sources
Net change in fund balance
FUND BALANCE:

Beginning of year
End of year
Budgeted Amounts Actual
Original Final Amounts
$ 24,000 $ 24,000 $ 54,833
5,500 5,500 3,054
576 576 11,285
48,700 48,700 78,964
78,776 78,776 148,136
17,700
44,900
62,600
16,176
(9,600)
(9,600)
35,553
44,900
80,453
(1,677)
(9,600)
(9,600)
$ 6,576 $ (11,277)
33,872
15,847
49,719
98,417
(9,600)
(9,600)
88,817 $ 100,094
320,425
$ 409,242
Variance with
Final Budget
$ 30,833
(2,446)
10,709
30,264
69,360
1,681
29,053
30,734
100,094
108

Page 886 of 1064 ends

CITY OF BEAUMONT
Budgetary Comparison Schedule
Community Facilities Districts (CFD)
For the Year Ended June 30, 2023
REVENUES:

Taxes
Use of money and property
Total revenues
EXPENDITURES:

Current:

Community development
Total Expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Transfers (out)
Total other financing sources (uses)
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
$ 6,679,547 $ 6,679,547 $ 6,644,815 $ (34,732)
6,679,547
331,385
331,385
6,348,162
(6,348,162)
(6,348,162)
Net change in fund balance $
FUND BALANCE:

Beginning of year
End of year
- 58,435
6,679,547
331,385
331,385
6,348,162
58,435
6,703,250 23,703
300,115
300,115
6,403,135
31,270
31,270
54,973
(6,848,162) (7,079,876) (231,714)
(6,848,162) (7,079,876) (231,714)
$ (500,000)
(676,741) $ (176,741)
2,274,176
$ 1,597,435
109

Page 887 of 1064 ends

Fiduciary Funds

Page 888 of 1064 ends

This page intentionally left blank.

Page 889 of 1064 ends

CITY OF BEAUMONT
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023
Community
Facilities Evidence
District Collection Fund
Total
ASSETS
Cash and investments $ 21,140,368 $ 77,819 $ 21,218,187 Cash and investments with fiscal agent 21,506,447 - 21,506,447 Due from other governments 185,631 - 185,631
Total assets 42,832,446 77,819 42,910,265

LIABILITIES
Interest payable 4,581,756 - 4,581,756
Unearned revenue - 14,518 14,518
Deposits payable - 60,829 60,829
Due to other governments 80,000,707 - 80,000,707
Due to bondholders 161,072,601 161,072,601
Total liabilities 245,655,064 75,347 245,730,411
Net Position (deficit)
Restricted for:

Individuals, organizations and other governments
Total net position
(202,822,618)
2,472 (202,820,146)
$ (202,822,618) $ 2,472 $ (202,820,146)
110

Page 890 of 1064 ends

CITY OF BEAUMONT
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2023
Community
Facilities Evidence
District Collection Fund
Total
ADDITIONS:

Investment Income $ 374,765 $ 52 $ 374,817
Assessments 19,270,292 550 19,270,842
Bond proceeds 9,158,389 9,158,389
Total additions 28,803,446 602 28,804,048
DEDUCTIONS:

Payments to trustee 657,573 - 657,573
Interest expense 8,728,570 12 8,728,582
Bond proceeds 919,670 919,670
Payment for infrastructure 891,231 - 891,231
Total deductions 11,197,044 12 11,197,056
Change in net position 17,606,402 590 17,606,992
NET POSITION:

Beginning of year (220,429,020) 1,882 (220,427,138)
End of year $ (202,822,618) $ 2,472 $(202,820,146)
111

Page 891 of 1064 ends

Statistical Section

Page 892 of 1064 ends

CITY OF BEAUMONT
Net Position by Component
Last Ten (10) Fiscal Years
(accrual basis of accounting)
Fiscal Year
2014 2015 2016 2017
Governmental activities
Net investment in capital assets $ $ $ $ 41,036,317
Restricted 27,651,232 32,785,514 48,232,914 253,984,801 Unrestricted (34,861,337) (89,979,209) (22,231,046) (13,630,302) Total govemmental activities net position $ (7,210,105) $ (57,193,695) $ 26,001,868 $ 281,390,816 Business -type activities
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities net position
Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
$ 47,357,696 $ 52,039,617 $ 50,742,754 $ 127,028,681
3,461,080 (2,786,155) 897,094 2,246,526
$ 50, 818, 776 $ 49, 253, 462 $ 51, 639, 848 $ 129, 275, 207 $ 47,357,696 $ 52,039,617 $ 50,742,754 $ 168,064,998
27,651,232 32,785,514 48,232,914 253,984,801
(31,400,257) (92,765,364) (21,333,952) (11,383,776)
$ 43,608,671 $ (7,940,233) $ 77,641,716 $ 410,666,023
Source: City of Beaumont Finance Department Audited Financial Statements 112

Page 893 of 1064 ends

2018 2019 2020
2021 2022 2023
$ 161,035,919 $ 180,996,750
133, 927, 879 125, 918, 630
(7,563,390) 457,794
$ 287,400,408 $ 307,373,174
$ 124,163,481 $ 134,524,431
9,681,229 (475,808)
$ 133,844,710 $ 134,048,623
$ 285,199,400 $ 315,521,181
133, 927, 879 125, 918, 630
2,117,839 (18,014)
$ 421,245,118 $ 441,421,797
$ 191,989,902
118, 674, 754
7,180, 682
$ 317,845,338
$ 137,744,251
4,609,395
$ 142,353,646
$ 329,734,153
118, 674, 754
11,790,077
$ 460,198,984
$ 199,529,502
121,676,799
12,223,595
$ 333,429,896
$ 134,777,249
595,399
3,069,283
$ 138,441,931
$ 334,306,751
122,272,198
15, 292, 878
$ 471,871,827
$ 210,229,919
121,976,580
39,194, 558
$ 371,401,057
$ 134,350,805
757,246
11,180, 846
$ 146,288,897
$ 344,580,724
122,733,826
50, 375, 404
$ 517,689,954
$ 212,055,056
165, 793, 250
29,690,983
$ 407,539,289
$ 110,914,301
12,860,020
6,878,345
$ 130,652,666
$ 322,969,357
178,653,270
36,569,328
$ 538,191,955
113

Page 894 of 1064 ends

CITY OF BEAUMONT
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting)
Fiscal Year
2014 2015 2016 2017
Expenses
Governmental activities:

General government $ 4,968,528 $ 7,309,913 $ 3,397,331 $ 7,593,312 Public safety 15,219,502 13,414,301 11,236,896 13,526,022 Public works 7,812,711 1,552,407 1,976,427 5,030,993
Community development 6,947,833 1,914,356 1,367,789 4,441,655 Community services 156,923 4,880,614 3,050,603 2,528,668 Refuse 4,144,778 4,138,062 4,239,048
Pass -through payments - -
Interest on long-term debt 161,272 2,660,836 - 10,369,211 Total governmental activities expenses 35,266,769 35,877,205 25,167,108 47,728,909 Business -type activities:

Sewer 6,074,330 7,986,837 6,043,880 11,192,584
Transit 2,258,381 2,211,872 2,478,621 2,990,218
Total business -type activities expenses 8,332,711 10,198,709 8,522,501 14,182,802 Total primary government expenses $ 43,599,480 $ 46,075,914 $ 33,689,609 $ 61,911,711 Program Revenues
Governmental activities:

Charges for services $ 7,339,117 $ 9,855,807 $ 9,561,023 $ 15,939,510 Operating grants 4,708,037 6,337,968 9,449,166 286,368
Capital grants 6,051,679 4,364,103 5,304,634 12,450,382 Total governmental activities program revenues 18,098,833 $ 20,557,878 $ 24,314,823 28,676,260 Business -type activities:

Charges for services 8,041,655 8,021,109 7,362,793 7,644,407 Operating grants 1,636,434 1,847,564 2,063,600 2,262,277 Capital Grants 304,610 10,445 1,479,942 473,715
Total business -type activities program revenues 9,982,699 $ 9,879,118 $ 10,906,335 10,380,399 Total primary government revenues $ 28,081,532 $ 30,436,996 $ 35,221,158 $ 39,056,659 Net (expense)/revenue
Govemmental activities
Business -type activities
Total primary government net (expense)/revenue
$ (17,167,936) $ (15,319,327) $ (852,285) $ (19,052,649) 1,649,988 (319,591) 2,383,834 (3,802,403)
$ (15,517,948) $ (15,638,918) $ 1,531,549 $ (22,855,052) Source: City of Beaumont Finance Department Audited Financial Statements 114

Page 895 of 1064 ends

2018 2019 2020 2021 2022 2023
$ 5,356,762 $ 6,010,855 $ 6,387,414 $ 10,322,019 $ 4,089,581 $ 10,642,725 18, 969, 972 15, 641, 308 17, 326, 496 17, 896, 367 18, 852, 535 23, 317,103 5,563,653 8,536,946 4,051,200 8,738,889 4,337,784 9,863,014 2,431,640 2,396,300 2,203,993 2,109,290 2,431,610 3,201,954 3,478,806 3,840,603 4,805,108 4,567,596 2,513,365 4,987,703 4,899,889 5,504,512
7,181,818 4,415,612 4,980,043 4,742,632 4,965,899 2,563,737 47,882,540 46,346,136 39,754,254 48,376,793 37,190,774 54,576,236 10, 430, 002 14, 993, 895 15, 084, 760 16, 480, 072 17, 596, 817 16, 398, 348 3,119,254 3,353,923 3,260,924 3,103,538 3,047,754 2,864,795 13, 549, 256 18, 347, 818 18, 345, 684 19, 583, 610 20, 644, 571 19, 263,143 $ 61,431,796 $ 64,693,954 $ 58,099,938 $ 67,960,403 $ 57,835,345 $ 73,839,379 $ 15,749,036 $ 13,488,153 $ 6,004,874 $ 6,223,772 $ 8,436,192 $ 9,460,209 77,514 884,195 1,626,798 4,116,354 1,613,280 4,911,820
20, 409, 806 17, 527, 025 8,773,350 16, 582, 075 16, 403, 235 15, 864,191 36,236,356 31,899,373 16,405,022 26,922,201 26,452,707 30,236,220 8,282,833
2,347,256
6,171,672
8,993,637
2,557,412
1,575,041
10, 697, 882 10, 955, 015
3,228,349 2,251,555
7,334,406 1,852,603
23,592,883
2,687,154
1,881,755
20,773,380
2,500,157
2,081,261
16,801,761 13,126,090 21,260,637 15,059,173 28,161,792 25,354,798 $ 53,038,117 $ 45,025,463 $ 37,665,659 $ 41,981,374 $ 54,614,499 $ 55,591,018 $ (11,646,184) $ (14,446,763) $ (23,349,232) $ (21,454,592) $ (10,738,067) $ (24,340,016) 3,252,505 (5,221,728) 2,914,953 (4,524,437) 7,517,221 6,091,655 $ (8,393,679) $ (19,668,491) $ (20,434,279) $ (25,979,029) $ (3,220,846) $ (18,248,361) 115

Page 896 of 1064 ends

CITY OF BEAUMONT
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting) (Continued)
General Revenues and Other Changes in
Net Position
Fiscal Year 2014 2015 2016 2017
Government activities:

Taxes
Property taxes/in-lieu $ 2,846,677 $ 3,894,320 $ 3,762,290 $ 4,852,263 Sales taxes 4,149,782 4,209,246 4,966,331 4,851,947
Vehicle in lieu tax 2,709,016 3,244,340 3,506,871 3,768,042 Utility Users Tax - 1,373,661 1,804,096 1,545,893
Franchise tax 882,609 944,869 929,261 805,244
Transient occupancy tax - 224,705 283,999 325,874
Other taxes 1,778,239 209,124 77,163 880,255
Business Licenses - 196,185 231,688
Transfers -
Total taxes and transfers 12,366,323 14,100,265 15,526,196 17,261,206 Construction bond proceeds
Developer Contributions
Investment Earnings
Miscellaneous
Gain (Loss) on sale of capital assets
Total governmental activities
Business -type activities:

Investment Earnings
Developer Contributions
Miscellaneous
Mitigation Fees
Transfers
Gain (Loss) on sale of capital assets
Total business -type activities
Total primary govemment
Extraordinary Items (Govemmental Activities)
Write off of advance receivable
Settlement - restitution
Refunding CFD 93-01
Successor Agency debt reversal
Gain on advance from city write off
Gain on transfer of assets and liabilities to RDA Successor Agency WRCOG judgement settlement
Total primary govemment
Change in Net Position
Governmental activities
Business -type activities
Total primary govemment
827,047 129,837
562,353 156,283
13,232
359,206
10,490,307
55,710
42,237
13, 755, 723 14, 386, 385
15,898,634 27,849,460
55,973
7,753
4,267 2,552
4,475
30 63,726 4,267 2,552 4,505
$ 13,819,449 $ 14,390,652 $ 15,901,186 $ 27,853,965
$ $ (21,500,000) $
4,235,674
58, 098, 626
3,000,000
$ (21,500,000) $ 62,334,300 $ 3,000,000
$ (3,412,213) $
1,713,714
(22,432,942) $ 77,380,649 $ 11,796,811
(315,324) 2,386,386 (3,797,898)
$ (1,698,499) $ (22,748,266) $ 79,767,035 $ 7,998,913
Source: City of Beaumont Finance Department Audited Financial Statements 116

Page 897 of 1064 ends

2018 2019 2020 2021 2022 2023
$ 5,199,098 $ 5,656,662 $ 11,107,476 $ 12,701,479 $ 13,256,331 $ 14,884,970 5,631,332 6,596,935 7,593,729 8,869,746 26, 869, 849 28, 509, 903 4,125,662 4,517,090 38,307 37,754 60,866 56,058
1,524,158 1,584,224 1,650,094 1,887,031 2,058,730 2,701,744 3,285,697 3,908,531 8,074,504 3,183,803 3,164,944 3,253,677 363,868 335,304 278,504 298,879 422,087 432,921
1,194,389 958,614 - 676,180 972,981
247,193 294,968 342,702 415,229 350,142 381,453
322 (3,120,964) 239,958 (254,358) (615,736)
21,571,719 20,731,364 29,085,316 27,633,879 46,604,771 50,577,971 - 233,922
11,343,940 9,055,054 4,001,607
7,851,992 5,390,216 4,230,375 4,618,626 1,157,022 5,238,845 355,360 716,944 472,274 526,724 657,208 4,513,689
5,341 52,377 33,431 24,392 51,186 147,743
41,128,352 35,945,955 33,821,396 37,039,150 48,470,187 60,478,248 13,606 1,564,220 565,390 57,721 (1,131,442) 637,558
778,223 731,125 -
525, 491 3,393 5,242 13,719 1,206,829 23,790
- 4,819,408 1,123,349 11,278,753
(322) 3,120,964 (239,958) 254,358 615,736
- 5,939 30 - (23,004,970)
1,316,998 5,425,641 5,390,070 954,831 11,608,498 (21,727,886) $ 42,445,350 $ 41,371,596 $ 39,211,466 $ 37,993,981 $ 60,078,685 $ 38,750,362 $ - $ $ $ $ $
(11,947,642)
$ (11,947,642) $
$ 17,534,526 $ 21,499,192 $ 10,472,164 $ 15,584,558 $ 37,732,120 $ 36,138,232 4,569,503 203,913 8,305,023 (3,569,606) 19,125,719 (15,636,231) $ 22,104,029 $ 21,703,105 $ 18,777,187 $ 12,014,952 $ 56,857,839 $ 20,502,001 117

Page 898 of 1064 ends

CITY OF BEAUMONT
Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2014 2015 2016 2017
General fund
Non Spendable:

Notes and Loans Receivable $
Advances to RDA Successor Agency 21,500,000
Prepaid items
Restricted
Investment in Section 115 Trust
Committed for:

Capital Projects
Self Insurance
Pension Trust Funding
Assigned for:

Re -appropriation
Unassigned
Total general fund
(6,354,884)
$ 249,493 $ 226,186 $ 213,399
(7,438,424)
6,839,275
(4,296,822) 5,034,141
15,145,116 (7,188, 931)
(4,070,636) 12,086,815
All other governmental funds
Non Spendable:

Prepaid items -
Restricted for:

CFD Projects 22,748,722 32,867,745 8,424,392
Capital Projects 26,605,667 8,763,649 13,967,685 25,157,602 Streets Projects 708,507 684,297 -
Public Safety 406,697 422,142 550,410 688,820
PEG Fees 109,778 142,494 162,777 219,517
State Gas Tax - 357,051
AB 2766 306,698
RMRA -
Measure A - - -
Other Special Projects 529,090 981
COPS Grants
State Asset Forfeiture
Federal Asset Forfeiture -
Debt service - - - 223,515,398
Committed for:

Capital Projects
Unassigned
Total all other governmental funds 27,651,232 32,785,514 48,232,914 258,670,459 Total fund balance all governmental funds $ 42,796,348 $ 25,596,583 $ 44,162,278 $ 270,757,274 Source: City of Beaumont Finance Department Audited Financial Statements 118

Page 899 of 1064 ends

2018 2019 2020 2021 2022 2023
$ 215,904 $ 220,634 $ 224,671 $ 225,715 $
83,141 - 26,262 61,292 244,171
6,839,275
10, 315, 492 14, 980, 384
$
2,344,101 2,529,271
4,550,000 - -
- 2,850,717 2,154,152 6,329,219
2,500,000 - -
- 214,799 796,780
19,290,503 17,576,741 40,317,103
2,216,918
30,465,919
17, 370,671 15,284,159
24,065,174 23,394,234
45,673,428 41,785,498
- $ 304,015 $ 287,125 $ 270,236
8,462,228 9,145,832 9,036,520 5,884,930 2,274,176 1,597,435 15, 683, 985 12, 877, 575 13, 336, 436 13, 674, 329 24,136, 095 32, 287, 810 788,141 1,110,144 664,780 - -
250,014 1,542,017 21,482 23,675 27,707 35,712
263,369 103,421 - 159,101 69,599 -
370,379 1,102,061 474,841 621,930 343,995 267,785
- 551,820 1,437,670 1,117,898 2,329,871
- 1,348,379 2,568,801 1,955,121 2,895,980
90,333 305,975 163,173 183,807 320,425 409,242
- - 313,341 452,899 523,786
295,014 295,024 294,397
- - 6,030 6,036 59,719
101,180,155 98,006,000 92,767,025 85,876,699 80,287,587 83,460,624 1,417,617 666,248
10,631,472
(84,997)
8,345,917
(180,661)
39,101,618
(407,984)
127,088,604
125, 610, 642 119, 030, 704 121, 895, 817
119, 738, 943 163,126, 231
$ 144,459,275 $ 140,894,801 $ 143,095,878 $ 145,290,051 $ 165,412,371 $ 204,911,729 119

Page 900 of 1064 ends

CITY OF BEAUMONT
Changes in Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2014 2015 2016 2017
Revenues
Taxes $ 9,681,600 $ 19,240,888 $ 29,927,330 $ 11,027,239 Franchise fees -
Intergovernmental revenues 7,376,149 297,016 29,788 5,787,280 Licenses, fees and permits 1,291,053 1,201,320 1,360,288 10,781,152 Fines and forfeitures 155,671 350,287 413,052 265,831
Assessment levied 9,309,555
Use of money and property 110,873 129,834 148,419 10,613,015 Charges for services 5,900,241 12,400,655 7,913,344 8,355,018 Other revenues 1,287,290 979,582 545,313 377,102
Interfund charges 6,175,682 - - -
Total Revenues 31,978,559 34,599,582 40,337,534 56,516,192 Expenditures
General government 5,067,238 4,969,209 4,735,084 5,464,863 Public safety 15,482,011 13,585,249 12,318,788 12,524,089 Public works 7,812,711 1,552,407 1,976,427 2,902,986
Community development 2,719,182 1,914,356 1,367,789 4,295,350 Community services 156,923 4,880,614 3,050,603 2,396,166 Refuse - 4,144,778 4,138,062 4,239,048
Capital outlay 10,404,333 188,738
Debt service:

Principal 300,000 6,167,352
Refunding escrow agent -
Interest, fiscal, and other charges - 10,369,211
Total Expenditures 41,942,398 31,046,613 27,586,753 48,547,803 Excess of revenues over (under) expenditures
(9,963,839) 3,552,969
12,750,781 7,968,389
Other Financing Sources (Uses)
Subscription acquisition - -
Lease acquisition - 96,158
Proceeds from the sale of capital assets - 42,237
Refunding bonds issued - -
Premium on refunding bonds issued -
Payment to refunded bond escrow agent -
Proceeds from bonds issued -
Developer contributions 6,051,679 -
Transfers in 3,556,910 11,280 22,007,107
Transfers out (3,556,910) (11,280) (22,007,107)
Total Other Financing Sources (Uses) 6,051,679 138,395
Net Change in Fund Balances Before Extraordinary Item
Extraordinary Item
Special Item
Net Change in Fund Balances
Debt Service as a percentage of
non -capital expenditures
(3,912,160) 3,552,969
(21,500,000)
12,750,781 8,106,784
3,000,000
$ (3,912,160) $(17,947,031) $ 12,750,781 $ 11,106,784

1.0% 0.0%
Source: City of Beaumont Finance Department Audited Financial Statements

0.0% 52.0%
120

Page 901 of 1064 ends

2018 2019 2020 2021 2022 2023
$ 12,163,969 $ 13,570,476 $ 14,996,887 $ 17,410,049 $ 36,366,045 $ 46,222,206 3,285,697 3,908,531 8,074,504 3,183,803 3,164,944 3,253,677 11,263,234 11,581,831 10,051,669 11,813,339 8,973,877 11,177,387 13,283,260 8,044,621 3,708,535 6,525,592 12,908,883 15,931,372 262,278 249,914 617,981 344,816 425,252 302,859
9,240,825 6,786,653 6,491,075 7,288,277 6,898,216 1,246,091 8,023,202 5,569,684 4,337,680 4,693,106 1,243,832 5,112,604 7,754,417 6,944,423 1,469,367 1,484,669 1,595,732 1,957,027 872,752 4,627,173 1,021,777 7,016,584 771,271 7,482,550 66,149,634 61,283,306 50,769,475 59,760,235 72,348,052 92,685,773 4,434,173 5,940,387
12,956,345 14,721,189
3,161,648 3,929,138
2,000,866 2,096,589
3,070,774 3,708,469
4,899,889 5,504,512
13,194,674 12,622,062
118,212,977 3,600,000
7,181,818 4,415,612
169,113,164 56,537,958
(102,963,530) 4,745,348
132,444
5,341
14,209,907
(14,209,585)
6,439,508 8,460,291 8,428,917 9,212,955
16,731,402 17,578,516 18,101,157 21,807,040
2,855,850 2,959,287 2,681,355 4,099,461
1,952,789 1,951,963 2,285,885 3,098,593
3,998,071 4,119,407 4,650,945 5,854,860
7,964,820 5,074,099 8,723,267 10,050,553
3,405,300 3,938,561
1,149,489 3,563,485
4,490,634 4,820,703
48,987,863 52,466,312
1,781,612 7,293,923
3,119,925 6,080,491
5,099,969 2,563,656
53,091,420 62,767,609
19,256,632 29,918,164
- - - 552,455
167,456 78,046 856,533 696,732
19,494 33,431 24,392 24,471 147,743
- 5,375,000 35,875,000 - -
1,014,920 -
(6,389,920) (34,829,600)
- - 8,800,000
9,682,117 10,561,452 18,489,635 13,031,672 47,877,889
(12,803,081) (10,561,452) (24,659,177) (13,286,030) (48,493,625) 138,107 (2,934,014)
(102,825,423) 1,811,334
(11,947,642)
111,477 (5,099,750)
1,893,089 2,194,173
626,646 9,581,194
19,883,278 39,499,358
$ (114,773,065) $ 1,811,334 $ 1,893,089 $ 2,194,173 $ 19,883,278 $ 39,499,358 410.8% 22.3%

28.3% 35.1%

21.1% 17.0%
121

Page 902 of 1064 ends

CITY OF BEAUMONT
General Fund Tax Revenue by Source
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
Fiscal Property Sales & Use Transient Franchise Utility Users Motor Vehicle Vehicle License Business Year Taxes Tax Occupancy Tax Fees Tax In Lieu Tax Collection Licenses Total 2014 $ 3,032,987 $ 4,149, 782 $ 196,114 $ 882,609 $ $ 2,709,016 $ 1,395,815 $ 204,470 $ 12, 570, 793 2015 4,016,833 4,209,246 224,705 944,869 1,373,661 3,244,340 209,124 14, 222, 779 2016 4,391,074 4,966,331 283,999 929,261 1,804,096 3,506,871 77,163 196,185 16,154, 980 2017 4,852,262 4,851,947 325,874 805,244 1,545,893 3,768,042 20,212 231,688 16,401,163 2018 5,199, 098 5,029,443 363,868 876,551 1,524,158 4,125, 662 242,634 17, 361, 415 2019 5,656,662 5,558,667 335,304 912,924 1,584,224 4,517,090 23,154 287,908 18, 875, 933 2020 6,109,624 6,593,630 278,504 8,074,504 1,650,094 4,997,852 38,307 337,993 28,080,507 2021 6,991,565 7,552,253 298,879 3,183, 803 1,887,031 5,709,914 37,754 408,435 26, 069, 635 2022 7,691,561 25, 349, 995 422,087 3,164, 944 2,058,730 6,240,950 60,866 343,807 45, 332, 940 2023 7,932,822 28, 509, 903 432,921 3,253,677 2,701,744 6,952,148 56,058 381,453 50, 220, 726 Source: City of Beaumont Finance Department Audited Financial Statements (FY2012- 2014) Source: City of Beaumont Finance Department Tyler Accounting Software (FY2015 and older) 122

Page 903 of 1064 ends

CITY OF BEAUMONT
Top 25 Sales Tax Producers
As of June 30, 2023
Calendar year 2022
Business Name
1st Street Arco
84 Lumber Co
Amazon Com Services
Amazon MFA
Beaumont Gas Mart
Beaumont RV
Best Buy
Big Text Trailers
Carson Trailer
CJ Foods
Grove 76
Home Depot
Icon Health and Fitness
Kohls
Mayas Chevron
Oak Valley Chevron
Raising Cane's
Rancho Ready Mix Products
Ross
Shell
Stater Bros
Trailer Factory Outlet
USA Gas
Walmart Supercenter
Wolverine Worldwide
Business Category
Service Stations
Building Materials
Fulfillment Centers
Fulfillment Centers
Service Stations
Trailers/RVs
Electronics/Appliance Stores
Trailers/RVs
Trailers/RVs
Food Service Equip./Supplies
Service Stations
Building Materials
Light Industrial/Printers
Department Stores
Service Stations
Service Stations
Quick -Service Restaurants
Contractors
Family Apparel
Service Stations
Grocery Stores
Trailers/RVs
Service Stations
Discount Dept Stores
Fulfillment Centers
Percent of Fiscal Year Total Paid by Top 25 Accounts=90.32% Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HDL Companies 123

Page 904 of 1064 ends

CITY OF BEAUMONT
Top 25 Sales Tax Producers
As of June 30, 2023
Calendar year 2013
Business Name Business Category
1st Street Arco Service Stations
84 Lumber Co Building Materials
Baker's Burgers Quick -Service Restaurants
Beaumont Gas Mart Service Stations
Beaumont RV Trailers/RVs
Beaumont Yamaha Kawasaki Polaris Boats/Motorcycles
Bed Bath & Beyond Home Furnishings
Best Buy Electronics/Appliance Stores
Big Tex California Trailers/RVs
Chili's Casual Dining
Dangelo Company Light Industrial/Printers
Food 4 Less Grocery Stores
Grove 76 Service Stations
Highland Shell Service Stations
Home Depot Building Materials
Kohls Department Stores
Oak Valley Chevron Service Stations
Petco Specialty Store
Ross Family Apparel
Shell Service Stations
Staples Office Supplies/Furniture
Stater Bros Grocery Stores
USA Gasoline Service Stations
Verizon Wireless Electronics/Appliance Stores
Walmart Supercenter Discount Dept Stores
Percent of Fiscal Year Total Paid by Top 25 Accounts=73.76% Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HDL Companies 124

Page 905 of 1064 ends

CITY OF BEAUMONT
Taxable Sales by Category
Last Ten Calendar Years (in thousands of dollars)
As of June 30, 2023
Calendar Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Food Stores
Eating and Drinking Places
Building Materials
Auto Dealers and Supplies
Services Stations
Other Retail Stores
All Other Outlets
$ 18,227 $ 18,558 $ 19,259 $ 21,016 $ 21,879 $ 23,369 $ 24,224 $ 27,104 $ 27,107 $ 28,433 37,418 44,537 48,097 52,677 54,955 58,832 64,596 69,001 92,028 91,659 44,479 48,119 51,999 55,011 59,738 66,532 68,381 86,704 103,831 106,532 17,701 21,792 28,347 31,958 37,260 39,850 38,810 44,345 58,846 61,414 68,696 65,560 55,945 50,076 54,400 66,439 74,214 61,827 88,347 114,699 140,906 144,897 152,353 154,132 151,516 156,081 155,083 152,615 182,886 181,362 65,430 70,820 85,854 102,192 102,082 107,750 139,482 290,833 891,152 2,325,658 Total $ 392,857 $ 414,283 $ 441,854 $ 467,062 $ 481,830 $ 518,853 $ 564,790 $ 732,429 $ 1,444,197 $2,909,757 Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HDL Companies
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available.

The categories presented are intended to provide alternative information regarding the sources of the City's revenue.
125

Page 906 of 1064 ends

CITY OF BEAUMONT
Assessed Value and Estimated Actual Value of Taxable Property Last Ten (10) Fiscal Years
Fiscal
Year Real Property
Ended Residential Commercial Industrial Agricultural Institutional Miscellaneous Recreational Vacant SBE Nonunitary Cross Reference June 30 Property Property Property Property Property Property Property Property Property Property 2014 $ 2,121,323,112 $ 257,949,389 $ 142,714,557 $ 781,680 $ 648,056 $ $ 16,942,256 $ 219,214,037 $ 54,015 $ 3,364,361 2015 2,598,286,104 276,682,366 182,704,068 785,224 593,479 16,992,773 205,513,227 54,015 3,296,822 2016 2,940,232,521 291,491,374 176,247,926 231,754 1,321,210 17,224,749 190,999,251 54,015 3,613,513 2017 3,207,129,206 296,461,009 175,023,847 235,286 1,317,085 17,406,132 191,103,172 54,015 3,636,024 2018 3,472,221,513 304,990,342 222,291,436 239,990 602,342 17,658,455 216,147,224 54,015 4,005,605 2019 3,838,660,946 316,507,011 253,366,940 244,789 614,383 4,554 17,902,500 212,687,138 72,099 4,524,155 2020 4,270,998,304 352,992,505 282,751,732 1,551,755 626,675 7,212 16,944,899 218,705,217 72,099 4,052,652 2021 4,631,135,525 404,022,040 573,656,274 1,583,016 1,389,803 9,855 17,280,592 191,196,689 72,099 4,624,200 2022 4,950,153,622 458,317,291 574,633,573 1,600,351 3,866,025 9,956 14,854,980 240,309,457 72,099 4,913,634 2023 5,425,637,238 527,073,189 654,270,775 41,338,497 3,852,891 10,153 15,152,407 270,175,555 120,008 6,215,484 Source: City of Beaumont Finance Department
126

Page 907 of 1064 ends

CITY OF BEAUMONT
Assessed Value and Estimated Actual Value of Taxable Property (continued) Last Ten (10) Fiscal Years
Estimated Total Assessed
Actual Less: Total Direct Value as a
Unsecured Taxable Tax Exempt Unknown Assessed Tax Percentage of Property Value Real Property Property Value Rate Actual Value $ 68,677,971 2,833,569,181 $ (1,899,747) $ $ 2,833,569,181 0.10876 100% 66,013,382 3,352,859,152 (1,937,692) 3,352,859,152 0.10600 100% 66,523,710 3,690,286,550 (2,346,527) - 3,690,286,550 0.10440 100% 69,045,531 3,963,822,600 (2,411,293) - 3,963,822,600 0.10348 100% 72,696,977 4,313,350,687 (2,442,788) 4,313,350,687 0.10275 100% 102,926,670 4,750,009,869 (2,498,684) 4,750,009,869 0.10177 100% 116,425,944 5,265,128,994 - 4,168,358 5,269,297,352 0.10049 100% 191,707,077 6,016,677,170 - 4,968,448 6,021,645,618 0.10092 100% 331,571,397 6,700,991,838 1,577,940 6,702,569,778 0.09441 100% 385,609,044 7,460,183,197 1,483,275 7,461,666,472 0.09413 100% 127

Page 908 of 1064 ends

CITY OF BEAUMONT
Direct and Overlapping Property Tax Rates
(Rate per $100 of Taxable Value)
Last Ten (10) Fiscal Years
San Gorgonio Pass Schools
Mem Hospital Mt San Jacinto Total RDA Total
Fiscal Basic Debt Banning Beaumont Community San Jacinto Metropolitan San Gorgonio Pass Tax Incremental Direct Year Levy Service Unified Unified College Unified Water Water Rate Rate 1 Rate 2 2014 1.0000 0.11896 0.00000 0.09000 0.00000 0.00000 0.00000 0.18500 1.39396 0.00000 0.10876 2015 1.0000 0.11296 0.00000 0.08169 0.00000 0.00000 0.00000 0.18500 1.37965 0.00000 0.10600 2016 1.0000 0.08143 0.00000 0.07106 0.01394 0.00000 0.00000 0.18500 1.35143 0.00000 0.10440 2017 1.0000 0.08357 0.00000 0.07193 0.01320 0.00000 0.00000 0.18500 1.35370 0.00000 0.10348 2018 1.0000 0.09052 0.14473 0.07677 0.01320 0.15078 0.00350 0.18250 1.66200 0.00000 0.10275 2019 1.0000 0.08692 0.14278 0.07432 0.01320 0.15291 0.00350 0.18250 1.65613 0.00000 0.10177 2020 1.0000 0.06990 0.14526 0.07438 0.01320 0.15292 0.00350 0.17750 1.63666 0.00000 0.10049 2021 1.0000 0.06716 0.14500 0.07431 0.01320 0.15291 0.00350 0.17500 1.63108 0.00000 0.10092 2022 1.0000 0.06281 0.14588 0.07777 0.01320 0.15291 0.00350 0.17500 1.63107 0.00000 0.10299 2023 1.0000 0.06242 0.14609 0.07777 0.01320 0.14988 0.00350 0.17500 1.62786 0.00000 0.09413 Sources: HdL Coren & Cone, Riverside County Assessor 2013/14-2022/23 Tax Rate Table Note: In 1978 California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
1 RDA rate is based on the largest RDA tax rate area and includes only the rate(s) from indebtedness adopted prior to 1989 per California State Statute. RDA Direct and Overlapping rates are applied only to the incremental property values.
2 Total Direct Rate is the weighted average of all individual direct rates. 128

Page 909 of 1064 ends

CITY OF BEAUMONT
Principal Property Taxpayers
As of June 30, 2023
2022/2023 2013/14
Taxpayer
Percentage of Percentage of
Assessed Total Taxable Assessed Total Taxable
Valuation Rank Assessed Value Valuation Rank Assessed Value Amazon Com Services LLC
Brixton Beaumont LLC
Baldi Bros Construction
MPLD II Inland Empire ULC LLC
CJ Foods Manufacturing
Exeter 630 Nicholas LP
Exeter Cherry Valley Land LLC
CT Beaumont Partners
Sundance LLC
Dura Plastics Products Inc
Frederick J Hanshaw
High Desert Partners
Loma Linda University
HHI Riverside LLC
Trinity Partners LLC
SDC Fairway Canyon LLC
Lowes HIW Inc
USEF Crossroads I/11
Beaumont Crossroads Logistics Park II
$ 164,853,676 2 2.25%
57,298,000 4 0.78%
45,484,080 6 0.62%
124,647,913 3 1.70%
33,975,918 8 0.46%
33,323,400 9 0.45%
32,161,945 10 0.44%
34,728,575 7 0.47%
392,606,667 1 5.36%
50,390,726 5 0.69%
$ 969,470,900 13.22%
$ 16,696,679 10 0.59%
36,896,460 1 1.30%
19,967,486 8 0.71%
34,520,496 3 1.22%
36,801,324 2 1.30%
24,551,101 4 0.87%
20,621,506 7 0.73%
24,393,342 5 0.86%
22,848,002 6 0.81%
18,372,584 9 0.65%
$ 255,668,980 9.04%
Note: The amounts shown above includes assessed value data for both the City and the Redevelopment Agency.
1 Loma Linda University is a learning institution; therefore, a large portion of their property is exempt. 2 Pending Appeals on Parcels
Source: The HdL Companies, Riverside County Assessor Combined Tax Rolls and the SBE Non Unitary Tax Roll
129

Page 910 of 1064 ends

CITY OF BEAUMONT
Property Tax Levies and Collections
Last Ten (10 Calendar Years)
Collected within the
Fiscal Year of the Levy
Total Collections to Date
Fiscal Year Total Tax Current Percent of Collections
Ended Levy for Tax Current Taxes in Subsequent Percentage June 30 Fiscal Year Collections Collected Years Amount of Levy 2014 $ 2,831,669 $ 2,884,144 101.9% $ 128,141 $ 3,012,285 106.4% 2015 3,350,921 3,321,742 99.1% 139,009 3,460,752 103.3% 2016 3,687,940 3,578,931 97.0% 132,853 3,711,784 100.6% 2017 3,961,411 3,908,158 98.7% 129,042 4,037,200 101.9% 2018 4,310,908 4,644,611 107.7% 131,947 4,776,558 110.8% 2019 4,747,511 5,054,013 106.5% 143,229 5,197,242 109.5% 2020 5,269,297 5,474,560 103.9% 159,844 5,634,404 106.9% 2021 6,021,646 6,684,394 111.0% 100,766 6,785,160 112.7% 2022 6,581,880 7,015,381 106.6% 91,862 7,107,243 108.0% 2023 7,330,939 7,932,822 108.2% 99,955 8,032,777 109.6% Source: Riverside County Auditor -Controller Property Tax Division 130

Page 911 of 1064 ends

CITY OF BEAUMONT
Ratios of Outstanding Debt by Type
Last Ten (10) Fiscal Years
Governmental Activities Business -Type Activities
AB 1484 Total Percentage
Fiscal Lease/SBITA Beaumont Public Due Diligence Revenue Bond Lease/SBITA Primary of Personal Per Year Liability Financing Authority Review Bonds Premium Liability Government Income Capital 2014 $ - $ - $ 2,575,912 $ 8,430,000 $ - $ - $ 11,005,912 177% $ 269 2015 2,575,912 2,575,912 146% 63
2016 2,275,912 2,275,912 994% 50
2017 79,323 205,668,880 1,975,912 207,724,115 1683% 133 2018 186,483 91,881,186 1,675,912 - - 346,313 94,089,894 4979% 46 2019 297,242 88,605,000 1,375,912 81,105,000 9,469,765 268,459 181,121,378 127% 1,911 2020 251,240 84,839,620 1,075,912 80,105,000 8,495,497 183,671 174,950,940 141% 1,751 2021 152,680 79,681,849 775,912 78,860,000 7,842,647 99,306 167,412,394 155% 1,665 2022 756,608 76,583,778 77,565,000 7,217,363 3,658 162,126,407 170% 1,564 2023 1,320,858 80,000,707 - 76,210,000 6,630,347 234,597 164,396,509 200% 1,482 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 See the Schedule of Demographic and Economic Statistics later in this report for personal income and population.

Source: City of Beaumont Finance Department
131

Page 912 of 1064 ends

CITY OF BEAUMONT
Direct and Overlapping Governmental Activities Debt
As of June 30, 2023
Total Debt Percent
DIRECT AND OVERLAPPING TAXAND ASSESSMENT DEBT: 6/30/23 Applicable (1) Debt 6/30/23 CFD 93-1 IA 3 $ 1,660,000 100.000% $ 1,660,000
CFD 93-1 IA 6A1 23,621,378 100.000% 23,621,378
CFD 93-1 IA 7A1 9,270,000 100.000% 9,270,000
CFD 93-1 IA 7B 3,420,000 100.000% 3,420,000
CFD 93-1 IA 7C 1,370,000 100.000% 1,370,000
CFD 93-1 IA 7D 3,410,000 100.000% 3,410,000
CFD 93-1 IA 8 5,295,000 100.000% 5,295,000
CFD 93-1 IA 8A 4,895,072 100.000% 4,895,072
CFD 93-1 IA 8B 4,700,000 100.000% 4,700,000
CFD 93-1 IA 8C 27,313,368 100.000% 27,313,368
CFD 93-1 IA 8D 8,207,238 100.000% 8,207,238
CFD 93-1 IA 8E 12,300,000 100.000% 12,300,000
CFD 93-1 IA 8F 12,645,000 100.000% 12,645,000
CFD 93-1 IA 9 305,000 100.000% 305,000
CFD 93-1 IA 10 1,090,000 100.000% 1,090,000
CFD 93-1 IA 11 680,000 100.000% 680,000
CFD 93-1 IA 12 680,000 100.000% 680,000
CFD 93-1 IA 14 5,000,000 100.000% 5,000,000
CFD 93-1 IA 14A 9,970,000 100.000% 9,970,000
CFD 93-1 IA 14B 3,162,694 100.000% 3,162,694
CFD 93-1 IA 16 5,290,000 100.000% 5,290,000
CFD 93-1 IA 17A 7,485,000 100.000% 7,485,000
CFD 93-1 IA 17B 10,695,000 100.000% 10,695,000
CFD 93-1 IA 17C 8,550,000 100.000% 8,550,000
CFD 93-1 IA 18 3,600,000 100.000% 3,600,000
CFD 93-1 IA 19A 14,380,000 100.000% 14,380,000
CFD 93-1 IA 19C 15,925,148 100.000% 15,925,148
CFD 93-1 IA 20 2,450,000 100.000% 2,450,000
CFD 2016-1 8,295,000 100.000% 8,295,000
CFD 2016-2 9,750,000 100.000% 9,750,000
CFD 2016-3 8,800,000 100.000% 8,800,000
CFD 2016-4 3,925,000 100.000% 3,925,000
CFD 2019-1 2,260,000 100.000% 2,260,000
CFD 2018-1 IA -1 Beaumont USD 4,885,000 100.000% 4,885,000 CFD 2020-1 IA -1 Beaumont USD 3,420,000 100.000% 3,420,000 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 248,704,898 132

Page 913 of 1064 ends

DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:

Beaumont Unified School B & I (0.07777%) $ 112,394,151 100.000% $ 112,394,151 MT San Jacinto Comm (0.01320%) 247,850,000 6.024% 14,930,014 San Gorgonio Memorial Healthcare District (0.06281%) 97,260,000 55.699% 54,172,830 City of Beaumont Lease/SBITA 1,018,295 100.000% 1,018,295 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 182,515,291 OVERLAPPING TAX INCREMENT DEBT:
$ - $
TOTAL DIRECT DEBT 156,657,292
TOTAL OVERLAPPING OBLIGATION DEBT 430,201,894

COMBINED TOTAL DEBT
$ 586,859,186 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2022-23 Assessed Valuation:

Total Overlapping Debt (excluding tax increment) 3.33%
Total Direct Debt ($156,657,292) 2.10%
Combined Total Debt (excluding tax increment) 5.78%
Ratios to Redevelopment Incremental Valuation (0):

Total Overlapping Tax Increment Debt 0.00%
Source: Spicer Consulting Group, City of Beaumont Finance Department, the County of Riverside, Beaumont Unified School District, Mount San Jacinto Community College, and the San Gorgonio Memorial Healthcare District
133

Page 914 of 1064 ends

CITY OF BEAUMONT
Computation of Legal Debt Margin
Last Ten (10) Fiscal Years
2014 2015 2016 2017
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
$ 106, 258, 844 $ 125, 732, 218 $ 138, 385, 746 $ 148, 643, 348 - 96,158
$ 106, 258, 844 $ 125, 732, 218 $ 138, 385, 746 $ 148, 547,190

0.00% 0.00%

0.00% 0.06%
Source: California Municipal Statistics, Riverside County Auditor -Controller Property Tax Division 134

Page 915 of 1064 ends

2018 2019 2020 2021 2022 2023
$ 161,750,651 $ 178,125,370 $ 197,598,651 $ 225,811,711 $ 251,346,367 $ 279,812,493 132,444 167,456
78,046 251,240
760,266 1,007,835
$ 161, 618, 207 $ 177, 957, 914 $ 197, 520, 605 $ 225, 560, 471 $ 250, 586,101 $ 278, 804, 658

0.08% 0.09%

0.04% 0.11%

0.30% 0.36%
Net Assessed Value $7,330,938,516
Plus Exempt Property
Total Assessed Value $7,330,938,516
Debt Limit: 3.75 percent of Total
Assessed Value 274,910,194
Debt applicable to Limitation:

Net Combined applicable to Limitation 646,129,002
Total Debt applicable to Limitation 1,007,835
Legal Debt Margin $ 273,902,359
135

Page 916 of 1064 ends

CITY OF BEAUMONT
Pledge -Revenue Coverage
Last Ten (10) Fiscal Years
Wastewater Revenue Bonds
Operating Net Revenue
Fiscal Gross Expenses Available for Debt Service
Year Revenues Less Depreciation Debt Service Requirements Coverage 2014 $ 7,824,125 $ 3,591,728 $ 4,232,397 $ 189,777 2230% 2015 7,783,112 5,038,318 2,744,794 160,000 1715%
2016 8,093,961 3,611,202 4,482,759 - N/A
2017 9,775,709 4,734,121 5,041,588 - N/A
2018 9,360,710 3,584,743 5,775,967 - N/A
2019 10,375,954 5,244,292 5,862,787 1,661,355 353%
2020 11,091,715 4,954,754 10,956,369 4,868,688 225%
2021 12, 073, 223 5,101, 833 6,971,390 5,073,788 137%
2022 12,207,746 6,245,158 5,962,588 5,072,988 118%
2023 13,272,802 5,809,605 7,463,197 5,073,213 147%
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.

Operating expenses do not include interest or depreciation.

Source: City of Beaumont Finance Department
136

Page 917 of 1064 ends

CITY OF BEAUMONT
Demographic and Economic Statistics
Last Ten (10) Fiscal Years
Per
Capita Unemployment
Calendar Personal Personal Rate Median % of Pop 25+ with % of Pop 25+ with Year Population 1* Income 2* Income (percentage) * Age ` High School DegreE* Bachelors Degree 2013 40,876 $ 958,297 23,444 9.50% 33.2 87% 26.4%
2014 40,853 1,007,108 24,652 4.90% 32.9 86% 25.2%
2015 45,118 1,054,947 23,381 4.00% 34.4 87% 25.4%
2016 46,179 1,035,820 22,430 3.60% 34.6 87% 24.5%
2017 48,237 1,099,759 22,799 3.00% 34.4 87% 24.5%
2018 48,401 1,170,336 24,179 3.30% 35 87% 25.1%
2019 51,475 1,269,357 24,659 3.30% 35 88% 25.3%
2020 52,686 1,361,682 25,845 8.60% 34.5 88% 26.1%
2021 54,690 1,454,165 26,589 6.30% 34.4 88% 25.9%
2022 56,590 1,669,762 29,506 3.40% 34.7 89% 26.5%
Sources: 1 State of California, Department of Finance. 2 California Employment Development Department, * 2000-2009 Income, Age and Education Data: ESRI - Demographic Estimates are based on the last available Census. Projections are developed by incorporating all of the prior census data released to date.

Demographic Data is totaled from Census Block Groups that overlap the City's boundaries 2010 and later - Income, Age and Education Data - US Census Bureau, most recent American Community Survey. 137

Page 918 of 1064 ends

CITY OF BEAUMONT
Principal Employers
Current Fiscal Year
2023 2014
Percentage Percentage
of total City of total City
Employer Employees Rank Employment Employees Rank Employment Amazon 6,300 1 77.20% N/A 0.00%
Beaumont Unified School District 1,377 2 16.87% 639 1 17.23% CJ Foods 630 3 7.72% N/A 0.00%
Walmart 526 4 6.45% 100 2 2.70%
Total 8,833 108.23% 739 19.92%
Source: City of Beaumont Economic Development Department 138

Page 919 of 1064 ends

CITY OF BEAUMONT
Full -Time Equivalent City Government Employees by Function Last Ten (10) Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
Administration
Administration 20.00 17.00 11.00 11.00 17.00 9.00 9.00 8.00 8.00 6.00 City Clerk 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Economic Development - - - - - 2.00
Finance - - - 7.00 7.00 7.00 7.00 8.00
Human Resources - - - - 2.00 2.00 2.00 3.00 3.75
Information Technology - 1.00 1.00 3.00 4.00 5.00
Public safety
Animal Control
Police Officers
Police Support

5.00 4.00 3.00 2.00 3.00 2.00 2.00 2.00 2.00 2.00

43.00 42.00 37.00 38.00 43.00 43.00 43.00 43.00 49.00 54.00

19.00 15.50 12.00 16.00 16.00 16.50 16.50 17.00 18.00 23.00 Community Development
Planning 7.00 1.00 3.00 2.00 7.00 7.00 7.00 7.00 7.00 5.50 Community Enhancement 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Building and Safety 5.00 5.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 7.00 Community Services
Parks and Recreation 17.00 19.00 15.00 16.00 8.50 8.00 8.00 5.00 5.00 7.50 Grounds Maintenance/Streets 19.00 11.50 5.50 7.50 19.00 20.00 20.00 20.00 20.00 19.50 Building Maintenance - - - - - 4.00
Pool` 15.00 7.50 7.50 7.50 7.50 7.50 7.50 7.50
Public Works
Public Works
Street Maintenance
Wastewater

3.00 2.00 2.00 2.00 3.00 2.75 3.50 6.50 6.50 9.00

2.00 2.00 2.00 1.50 5.00 5.00 5.00 5.00 7.00 7.00

2.50 7.00 7.25 12.00 10.50 14.50 17.00
Transit 22.00 22.00 25.00 25.00 26.00 26.00 26.00 23.00 23.00 23.25 *FY2012, 2013, and 2014 Lifeguards were counted as 1 FTE instead of 0.5 FTE (part-time) Source: City of Beaumont Finance Department
139

Page 920 of 1064 ends

CITY OF BEAUMONT
Operating Indicators by Function
Last Ten (10) Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
Police
Calls for service 31,667 29,852 30,753 26,357 26,526 27,277 32,056 27,506 46,253 47,087 Citations issued by Officers 4,611 2,320 1,308 2,667 1,702 1,398 1,711 1,036 4,132 3,445 Physical arrests 1,621 1,281 1,434 1,529 1,254 891 821 1,036 1,377 1,066 Fire
Total number of calls answered
% of calls for medical aid
3,020 3,177 3,186 3,225 3,618 3,886 4,282 3,879 4,244 5,023

81.0% 83.7% 85.0% 82.2% 82.5% 81.7% 80.2% 84.0% 75.0% 74.8% Highways and streets
Street resurfacing (miles) N/A N/A N/A 0.65 1.05 9 20 28 29 30 Potholes repaired N/A N/A N/A 49 100 395 638 494 618 531 Wastewater
Average daily sewage treatment 3.080 3.080 3.160 3.270 3.390 3.670 3.820 3.700 3.595 3736 (million gallons)
Note: Fire services are contracted through the County of Riverside.

Source: City of Beaumont Public Works and Police Departments, and Riverside County Fire Services 140

Page 921 of 1064 ends

CITY OF BEAUMONT
Capital Assets Statistics by Function
Last Ten (10) Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
Public safety
* Police
Vehicles Added Value
Highways and streets
Storm Drain Added Value
Street Improvements
Culture and recreation
Parks Added Value
Sewer
Sewer Line Added Value
Lift Station Added Value
Treatment Plant Expansion
Brine Pipeline
60,000 140,000
1,560,925
302,719
3,334
131, 226, 200
14,684
Fire services are contracted through the County of Riverside Fire Dept. 188,738 247,760 89,268 187,282 487,242 526,164 664,992
- 1,184,800 1,596,757 4,001,608 185,007 36,581
399,000 1,395,105 25, 352, 242 5,854,301 6,086,700
172,238
427,311
613,161
2,208,322 3,600,000 1,050,000 6,385,002 736,810
969,346
2,236,307
1,103,175
3,676,047 3,950,198
3,352,629
15,377,340 26,290,328
18,128,897 16,538,109
Sources: City of Beaumont Public Works and Police Departments, Riverside County Fire Department 141

Page 922 of 1064 ends

1,140,835
185,501 359,613
20,188, 903 7,046,105 1,290,940
2,073,430 412,677 70,500

This page intentionally left blank.

Page 923 of 1064 ends

735 E. Carnegie Dr. Suite 100
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net

PARTNERS
Terry P. Shea, CPA
Scott W. Manno. CPA. CGMA
Leena Shanbhag, CPA. MST, CGMA
Bradferd A. Welebir, CPA, MBA, CGMA
Jenny W. Liu, CPA, MST
Gardenya Duran, CPA. CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA. MST (Partner Emeritus)

MANAGERS / STAFF
Seong-Hyea Lee, CPA. MBA
Evelyn Morentin-Barcena, CPA
Veronica Hernandez. CPA
Laura Arvizu, CPA
John Maldonado. CPA, MSA
Julia Rodriguez Fuentes. CPA. MSA
Demi Hite. CPA
Jeffrey McKennan. CPA

MEMBERS
American Institute of
Certified Public Accountants
PCPS The AICPA Alliance
for CPA Firms
Governmental Audit
Quality Center
California Society of
Certified Public Accountants
Proud Member of
AlliottGlobalAlliance"
R
M
A
S

ROGERS, ANDERSON, MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
December 11, 2023
To the Honorable City Council
City of Beaumont
We have audited the financial statements of the City of Beaumont (the City) as of and for the year ended June 30, 2023, and have issued our report thereon dated December 11, 2023. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated May 1, 2023, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement.

An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm, have complied with all relevant ethical requirements regarding independence.
-1-
STABILITY. ACCUf 6eTTIS7of 1064

Significant Risks Identified
We have identified the possibility of the following significant risks:

Management's override of internal controls over financial reporting: Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.

Revenue recognition: Revenue recognition is a generally accepted accounting principle that refers to the conditions under which an entity can recognize a transaction as revenue. Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits.

These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.

Qualitative Aspects of the City's Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1 to the financial statements, during the year, the City changed its method of accounting for Subscriptions by Adopting Governmental Accounting Standards Board (GASB) Statement No. 96 Subscription -Based Information Technology Arrangements. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments.

The most sensitive accounting estimates affecting the financial statements are:
• Management's estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments and determined that it is reasonable in relation to the basic financial statements taken as a whole.
• Management's estimate of depreciation expense is based on the useful lives of acquired assets. We evaluated the key factors and assumptions used to develop depreciation expense in determining that it is reasonable in relation to the financial statements taken as a whole.
-2-

Page 925 of 1064 ends

• Management's estimate of the net pension liability and related deferred inflows and outflows are based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the statements taken as a whole.
• Management's estimate of leases receivable, deferred inflows of resources related to leases, and lease amortization is based on present value calculations using certain terms and assumptions in the lease agreements in accordance with generally accepted accounting principles. Management's estimate of lease liabilities, right -to -use assets, and asset amortization is based on present value calculations using certain terms and assumptions in the lease agreements and estimated useful lives of assets in accordance with generally accepted accounting principles. We evaluated the key factors and assumptions used to develop the lease related estimates in determining that it is reasonable in relation to the financial statements taken as a whole.
• Management's estimate of subscription liabilities and subscription amortization is based on present value calculations using certain terms and assumptions in the subscription agreements in accordance with generally accepted accounting principles. Management's estimate of subscription liabilities, right -to -use assets, and asset amortization is based on present value calculations using certain terms and assumptions in the subscription agreements and estimated useful lives of assets in accordance with generally accepted accounting principles. We evaluated the key factors and assumptions used to develop the subscription related estimates in determining that it is reasonable in relation to the financial statements taken as a whole.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City's financial statements relate to:
• The disclosure of fair value of investments in the basic financial statements represents amounts susceptible to market fluctuations.
• The disclosure of accumulated depreciation in the basic financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item. • The disclosure of net pension liability and related deferred inflows and outflows in the basic financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.
• The disclosure of leases receivable, deferred inflows of resources related to leases, lease amortization, leases liabilities, right -to -use assets, and asset amortization in the basic financial statements is based on certain terms and assumptions in the lease agreements which could differ from actual amounts.
• The disclosure of subscription liabilities, right -to -use assets, and asset amortization in the basic financial statements is based on certain terms and assumptions in the subscription agreements which could differ from actual amounts.

The financial statement disclosures are neutral, consistent, and clear. -3-

Page 926 of 1064 ends

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all such mistatements.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City's financial statements or the auditor's report. No such disagreements arose during the course of the audit.

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated December 11, 2023.

Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City's auditors.

Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City's annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.

However, in accordance with such standards:

We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. -4-

Page 927 of 1064 ends

We were engaged to report on the combining and individual non -major fund financial statements and the budgetary comparison schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on introductory and statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it.

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

Very truly yours,
tOrA.:C/ w.ci2.t.tpu.,
San Bernardino, California
December 11, 2023
,fcoft, LLP.
-5-

Page 928 of 1064 ends

BEAUF O R N MONAT
-c A L 1 1 -
December 11, 2023
Rogers, Anderson, Melody and Scott, LLP
735 E. Carnegie Dr., Suite 100
San Bernardino, CA 92408
This representation letter is provided in connection with your audit of the City of Beaumont (the City) which comprise of the respective financial position of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information as of June 30, 2023, as of and for the year then ended, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, for the purpose of expressing opinions on whether the basic financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows, where applicable, of the various opinion units of the City in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP).

Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.

We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of December 11, 2023:

Financial Statements
• We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated April 29, 2022, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP. • We acknowledge our responsibility 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. • We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
• We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
• We have reviewed, approved, and taken responsibility for the financial statements and related notes.
• We have a process to track the status of audit findings and recommendations. • We have identified and communicated to you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented.
• Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.
• All related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP.

City of Beaumont 1 550 E. 6th Street, Elvdlac ,9Cef9f6641 (951) 769-8520 1 BeaumontCA.gov

• All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. • The effects of uncorrected misstatements during the current engagement are immaterial, both individually and in the aggregate, to the applicable opinion units and to the financial statements as a whole.
• The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.
• All component units, as well as joint ventures with an equity interest, are included and other joint ventures and related organizations are properly disclosed. • All funds and activities are properly classified.
• All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements —and Management's Discussion and Analysis for State and Local Governments, GASB Statement No. 37, Basic Financial Statements —and Management's Discussion and Analysis for State and Local Governments: Omnibus as amended, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users. • All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved. • Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy.
• All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal.
• All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis. • All interfund and intra-entity transactions and balances have been properly classified and reported.
• Deposit and investment risks have been properly and fully disclosed. • Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated.
• All required supplementary information is measured and presented within the prescribed guidelines.
• With regard to investments and other instruments reported at fair value:
— The underlying assumptions are reasonable and they appropriately reflect management's intent and ability to carry out its stated courses of action. — The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied. — The disclosures related to fair values are complete, adequate, and in accordance with U.S. GAAP.
— There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements. • With respect to the Preparation of the Financial Statements, we have performed the following:
— Made all management decisions and performed all management functions; — Assigned a competent individual to oversee the services; — Evaluated the adequacy of the services performed;
City of Beaumont 1 550 E, 6th 5treePa@eugaGct ,@6423 1 (951) 769-8520 1 BeaumontCA.gov

— Evaluated and accepted responsibility for the resultofthe service performed; and — Established and maintained internal controls, including monitoring ongoing activities.

Information Provided
• We have provided you with:
— Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters; — Additional information that you have requested from us for the purpose of the audit; and
— Unrestricted access to persons within the City from whom you determined it necessary to obtain audit evidence.
• All transactions have been recorded in the accounting records and are reflected in the financial statements.
• We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. • We have no knowledge of any fraud or suspected fraud that affects the City and involves:
— Management;
— Employees who have significant roles in internal control; or — Others where the fraud could have a material effect on the financial statements. • We have no knowledge of any allegations of fraud, or suspected fraud, affecting the City's financial statements communicated by employees, former employees, vendors, regulators, or others.
• We are not aware of any pending or threatened litigation, claims, and assessments whose effects should be considered when preparing the financial statements. • We have disclosed to you the identity of all the City's related parties and all the related party relationships and transactions of which we are aware. • There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. • The City has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
• We have disclosed to you all guarantees, whether written or oral, under which the City is contingently liable.
• We have disclosed to you all nonexchange financial guarantees, under which we are obligated and have declared liabilities and disclosed properly in accordance with GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, for those guarantees where it is more likely than not that the City will make a payment on any guarantee.
• We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB-62), Codification of Accounting and Financial Reporting Guidance Contained in Pre -December 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year.

Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year.

City of Beaumont 1 550 E. 6th Street, g c 1Cef91op. ( (951) 769-8520 1 BeaumontCA.gov

• We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds.
• There are no:
— Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations.
— Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62. — Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62
— Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12).
• The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you.
• We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance. • There have been no changes or updates to legal information disclosed to you by our attorney(s) since the date of such legal response and now.

Supplementary Information in Relation to the Financial Statements as a Whole With respect to the supplementary information (SI) accompanying the financial statements:
• We acknowledge our responsibility for the presentation of the SI in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP). • We believe the SI, including its form and content, is fairly presented. • The methods of measurement or presentation have not changed from those used in the prior period.
• We believe the following significant assumptions or interpretations underlying the measurement or presentation of the SI, and the basis for our assumptions and interpretations, are reasonable and appropriate.
• We acknowledge our responsibility to include the auditor's report on the supplementary information in any document containing the supplementary information and that indicates the auditor reported on such supplementary information.
• We acknowledge our responsibility to present the supplementary information with the audited financial statements or, if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the City of the supplementary information and the auditor's report thereon.

Required Supplementary Information
With respect to the required supplementary information (RSI) accompanying the financial statements:
• We acknowledge our responsibility for the presentation of the RSI in accordance with accounting principles general accepted for government in the United States of America (U.S. GAAP).

City of Beaumont 1 550 E. 6th Street u$aatqbi@423 1 (951) 769-8520 1 BeaumontCA.gov

• We believe the RSI, including its form and content, is measured and fairly presented in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP).
• The methods of measurement or presentation have not changed from those used in the prior period.

Title: T I n( n c e. 01 rf c y —
Printed Name en V1
Date: JO 1 l 1
City of Beaumont 1 550 E. 6th Street, Pagip 3c f91O64 ( (951) 769-8520 1 BeaumontCA.gov

735 E. Carnegie Dr. Suite 100
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net

ROGERS, ANDERSON, MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948

REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor's Report
To the Honorable City Council
City of Beaumont
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, business -type activities, each major fund, and the aggregate remaining fund information of the City of Beaumont (the City) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 11, 2023.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered 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 our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility 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, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
1 STABILITY. ACCUf 6e y34Tof 1064

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, material weaknesses may exist that have not been identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. kOy a ca itkekt,tou ?'1 ,eft, LLP.
au4xSan Bernardino, California
December 11, 2023
2

Page 935 of 1064 ends

CITY OF

BEAUMONT
`,I 1-1-Y 111�. LI 1 /11nu1111111111111111111111111111-'-1-1-11 ry FY2023 DRAFT ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
1 L �1171111771101117C117111{ly]�7111111IIA 11117111111111)_779 11111.1.1.177_1

BEAUMONNT

CIVIC CETER

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Beaumont
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Cam. P 2,1 =ze
Executive Director/CEO

ANNUAL COMPREHENSIVE FINANCIAL

REPORT ACFR (DRAFT)
• First year to present the GFOA Certificate of
Achievement for Excellence in Financial Reporting
• Third ACFR for the City of Beaumont
• Provides a broader view of the City's financial position • Three Sections:
• Introductory Section
• Financial Section
• Statistical Section

Page 937 of 1064 ends

2 ANNUAL COMPREHENSIVE

FINANCIAL REPORT ACFR
(DRAFT)
Introductory Section:
• Letter of Transmittal
• Principal Officers
• Organizational Chart
3

Page 938 of 1064 ends

ANNUAL COMPREHENSIVE FINANCIAL REPORT ACFR (DRAFT)
• Financial Section:
• Independent Auditor's Report
• Management's Discussion & Analysis
• Government -Wide Financial Statements
• Fund Financial Statements
• Notes to the Financial Statements
• Required Supplementary Information
• Combining Financial Statements and Schedules

Page 939 of 1064 ends

4 ANNUAL COMPREHENSIVE

FINANCIAL REPORT ACFR
(DRAFT)
• Government -Wide Financial Statements
• Broad Overview of the City's
finances, similar to a private -sector
business
• Long-term focus
• Activity classified as:
• Governmental Activity
• Business -Type Activity

Page 940 of 1 ends

ANNUAL COMPREHENSIVE FINANCIAL REPORT ACFR (DRAFT)
(In Thousands)
City Assets (What We Own)
2023 2022
Current Assets consisting mainly of cash and amounts owed to the City Net Capital Assets consisting mainly of buildings, equipment, and vehicles Non -Current Assets consisting mainly of restricted cash and investments, loan receivable $ 201,938
$ 487,366
$ 83,462
$ 163,553
$ 506,707
$ 81,053
TOTAL CITY ASSETS '$ 772,766 F$ 751,313
Deferred Outflows of Resources, which have a positive effect on Net Position $ 13,410 $ 6,238 TOTAL CITY ASSETS AND DEFERRED OUTFLOWS $ 786,176 $ 757,551 City Liabilities (What We Owe)
2023 2022
Current Liabilities consisting mainly of all amounts the City owes, except for debt Non -Current Liabilities consisting of long-term obligations, including pension $ 58,486
$ 187,247
$ 62,467
$ 169,361
TOTAL CITY LIABILITIES "$ 245,733
Deferred Inflows of Resources, which have a negative effect on Net Positiion Deferred Inflows related to debt/leases
$
$
1,641
610
.$
$
$
231,828
7,397
636
TOTAL CITY LIABILITIES AND DEFERRED INFLOWS $ 247,984 $ 239,861 CITY NET FINANCIAL POSITION $ 538,192 $ 517,690
Government -Wide Statements of
Net Position

Page 941 of 1064 ends

6 Governmental Activities
(In Thousands)
70,000
60,000
50,000
40,000
30,000
20,000
10,000
25,000
20,000
15,000
10,000
5,000
2022 2023
■ Total Revenues ■ Total Expenses
Business Activities
(In Thousands)
2022
2023
■ Total Revenues ■ Total Expenses

ANNUAL COMPREHENSIVE

FINANCIAL REPORT ACFR
(DRAFT)
Government -Wide Changes in Net Position

Page 942 of 1064 ends

7 ANNUAL COMPREHENSIVE

FINANCIAL REPORT ACFR
(DRAFT)
Fund Financial Statements
• Fund accounting used to control
resources that have been segregated
for specific activities or objectives
• Near -Term focus
• All funds fall into one of three broad
categories
Governmental
Funds
Activities realted to
serving the public
Proprietary Funds
Activities with an
objective to recover
costs through user
charges
Fiduciary Funds
Financial
resources held
for others as
trustee

Page 943 of 1064 ends

8 General Fund Revenues
2023 2022
Taxes
Franchise Fees
Intergovernmental
License & Permits
Fines & Forfeitures
Assessments Levies
Use of Money and Property
Charges for Services
Other Revenues
$ 38, 675, 544
$ 3,253,677
$ 7,013,572
$ 5,250,590
$ 302,859
$ 972,981
$ 859,242
$ 1,957,027
$ 5,696,014
$ 34,846,091
$ 3,164, 944
$ 6,307,226
$ 4,997,452
$ 425,252
$ 676,180
$ (1,407,979)
$ 1,595,732
$ 626,268
r

TOTAL GENERAL FUND REVENUES
r$ 63,981,506
$ 51, 231,166
General Fund Ex ' enditures
2023 2022
General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service
Interest and Fiscal Charges
$ 9,206,231
$ 21, 494, 045
$ 4,099,461
$ 2,591,878
$ 5,854,860
$ 670,446
$ 697,420
$ 14,512
$ 7,988,379
$ 18, 098, 087
$ 2,786,620
$ 2,062,167
$ 4,701,702
$ 1,811,830
$ 99,925
$ 3,666
TOTAL GENERAL FUND EXPENDITURES $ 44,628,853 $ 37,552,376 Other Revenues, including Transfers In $ 10,296,252 $ 8,472,634 Other Expenditures, including Transfers Out $ (33,536,835) $ (111,272) INCREASE/(DECREASE) IN FUND BALANCE $ (3,887,930) $ 22,040,152

ANNUAL COMPREHENSIVE

FINANCIAL REPORT ACFR
(DRAFT)
General Fund Operating Results

Page 944 of 1064 ends

9 ANNUAL COMPREHENSIVE FINANCIAL REPORT ACFR (DRAFT)
Overall General Fund Decrease in
Fund Balance of $3,887,930
• Total Revenues over budget by $5,641,150
• Expenditures below budget by $4,995,874
• Other funding sources/(uses) over budget by
$1,145,796
• Overall budget savings of $11,782,820.
• Planned spend down of $15,670,750 resulted
in only $3,887,930 of spend down
Budget Results
General Fund
Budgeted
Ori:inal
Budgeted
Final
Actual
Variance with
Final Bud:et
Total Revenues
Expenditures
Other Financing Uses
Net Change in Fund Balance
$ 51,975,991
$ (45,359,099)
$ 760,040
$ 7,376,932
$ 58, 340, 356
$ (49,624,727)
$ (24,386,379)
$ (15, 670, 750)
$ 63, 981, 506 $ 5,641,150
$ (44,628,853) $ 4,995,874
$ (23,240,583) $ 1,145,796
$ (3,887,930) $ 11, 782, 820

Page 945 of 1064 ends

10 ANNUAL

COMPREHENSIVE

FINANCIAL REPORT

ACER (DRAFT)
Fund Balance Categories
• Nonspendable — Items that cannot be
spent because they are not in
spendable form.
• Restricted — Portion of net fund
resources subject to externally
enforceable legal restrictions.
• Committed — Portion of net fund
resources constrained by limitations
imposed by formal action of the City
Council.
• Assigned — Portion of net fund
balance reflecting government's
intended use of resources.
• Unassigned — Available resources

Page 946 of 1064 ends

11 ANNUAL

COMPREHENSIVE

FINANCIAL REPORT

ACFR (DRAFT)
Fund Balance - General Fund
• Unassigned $30.47 million as of
June 30, 2023
• City policy states that 16% of annual
operating budget for working cash
flow, $5.0 million for budget
stabilization, and 1.0 million for
emergency disaster.
• Working cash flow $10.85 million
• Budget stabilization 5.0 million
• Emergency reserve $1.0 million
• Total reserves $16.85 million
• Available fund balance $13.62 million

FUND BALANCE - GENERAL FUND
Nonspendable
1%
Unassigned
73%
Restricted
6%
Committed
15%
Assigned
5%

Page 947 of 1064 ends

12 ANNUAL COMPREHENSIVE

FINANCIAL REPORT ACFR
(DRAFT)
• Statistical Section:
• Provides financial trends
• Revenue Capacity
• Debt Capacity
• Demographic and Economic
Information
• Operating Information

Page 948 of 10 ends

BEAUMONT
- C !� 1 1 0 R "1 A
Staff Report
TO: City Council
FROM: Robert Vestal, Public Works Director
DATE December 19, 2023
SUBJECT: Professional Services Agreement with Mark Thomas for the Potrero Interchange, Phase II (CIP 2016-003)
Description Award a Professional Services Agreement (PSA) to Mark Thomas for the Potrero Interchange, Phase II (Phase II).

Background and Analysis:

In 2010 City consultants began working on the design for Potrero Interchange. The project was divided into two phases. Mark Thomas was a subconsultant and performed the majority of the design.

In 2015, Mark Thomas completed 99% of the design for Phase I and 65% of the design for Phase I I . The total project expenditure up to this date exceeds $11M.

On August 16, 2016, City Council approved a professional services agreement (PSA) for Mark Thomas to finish the Phase I design. Two amendments were subsequently approved for a total contract amount of $442,300. Potrero Interchange, Phase construction was completed in 2020.

On March 20, 2018, City Council approved a Transportation Uniform Mitigation Fee (TUMF) Improvement and Credit Agreement with Pardee Homes to prepare plans, specifications, and estimates (PS&E) for Phase I I . The credit was estimated at $1,694,743. Subsequent to the agreement, Pardee Homes contracted directly with Mark Thomas to prepare the PS&Es for Phase I I . Phase II was developed to the 95% level.

There is currently $25K remaining on the contract but is actively being billed against.

On September 7, 2021, City Council approved a PSA with Mark Thomas for a revised traffic analysis. One amendment was subsequently approved for a total contract amount of $112,344. Phase II consisted of a six ramp, partial clover leaf interchange. The six ramp interchange would consist of 4 on -ramps and 2 off -ramps. The additional analysis determined that the elimination of the direct east bound and west bound on -ramps could yield significant cost savings (approximately $7M in 2020) and still remain fully

Page 949 of 1064 ends

functional with minor modifications. Additionally, a 15 -year traffic projection demonstrated that the interchange would still operate within an appropriate level of service. Refer to Figure 1 for Project layout.

Figure 1 - Phase II Layout (Orange on -ramps are removed) In order to finish Phase II plans and make the project Ready to List (RTL), the plans, specifications, cost estimate, and supporting documentation must be revised and updated to Caltrans's current standards. Mark Thomas has prepared a scope and fee to deliver the project to RTL. The scope includes:
• Supplemental topo
• Right of Way Certification
• Environmental recertification
• Supplemental Project Report
• Supplemental Design Standard Decision Document (SDSDD) • Drainage Report
• Stormwater Data Report (SWDR)
• Traffic Management Plan (TMP)
• Geotechnical
• Revised and Updated PS&E
• Construction Support

Page 950 of 1064 ends

The TUMF Credit agreement with Pardee Homes and subsequent contract with Mark Thomas did not include several of the studies, reports, and documents needed for a project to be RTL.

On June 29, 2023, the City was awarded $33,500,000 in TCEP funding for Phase I I .

The TCEP grant has strict requirements to obligate the funds prior to June 30, 2025. In order to meet this deadline, the City must move forward immediately with completing the design and other required documents.

Subsequently, City staff is recommending awarding a PSA to Mark Thomas utilizing the public exigency exception from the normal procurement process, permitted by the City's Municipal Code Chapter 3.02.050(c.)— Exemptions to competitive procurement procedure.
"3.02.050 - Exemptions to competitive procurement procedure.

Upon obtaining approval from the City Council, the Purchasing Officer may engage services of a professional firm or individual without complying with the competitive procurement procedures in the following circumstances:

A. Legal services
B. The services are available only from a single source; or C. Public exigency or emergency will not permit delay; or D. State or federal grant or loan requirements authorize noncompetitive procurement of such services; or
E. After solicitation of a number of sources, competition is deemed inadequate.

Exigency is the need to avoid, prevent, or alleviate serious harm or injury, financial or otherwise, to the applicant, and use of competitive procurement proposals would prevent the urgent action required to address the situation.

Additionally, the City is at risk for financial injury of $33.5M if Phase II is not ready by June 30, 2025. Mark Thomas has all the project knowledge, documents, staff, and has demonstrated the ability to meet the deadline.

Future PSA Amendments
City staff, Mark Thomas, and RCTC are aligned to have the project RTL by February 15, 2025, pending City Council approval tonight. As the project progresses it may be prudent to revise the design in order to maintain the RTL date. One possibility is keeping the direct on -ramps as currently designed in order to ensure the quickest processing through Caltrans. However, the consequence of adding the ramps will be additional construction costs. Subsequently, City staff is recommending a 15% contingency for design to allow the fastest response to design and Caltrans challenges.

Page 951 of 1064 ends

Any change requiring compensation in excess of 15% will therefore require City Council approval.

Fiscal Impact:

The cost to prepare this staff report is estimated to be $750.

The total design budget is $3,250,000 which consists of $3,000,000 from WRCOG Reimbursement Agreement using Pass Zone TIP funds; and $250,000 from General Funds, already programmed to the Project.

Mark Thomas' fee for Phase II is $2,724,388. Mark Thomas' fee and the 15% contingency will be paid from the design budget using the Pass Zone TIP (Design) funds first and then General Funds (Design).

The following is an accounting summary table for Phase II. 2016-003 Potrero Phase II Project Accounting Summary
Funding Summary
Funding Year
Funding Source
Amount
21/22
Pass Zone TIP (Design)
$1,500,000
22/23
Pass Zone TIP (Design)
$1,500,000
23/24
Pass Zone TIP (Construction)
$3,500,000
23/24
TCEP (State)
$7,500,000
23/24
TCEP NHFP (Federal)
$26,000,000
23/24
RCTC TUMF RA (Construction)
$8,000,000
23/24
General Fund (Design)
$250,000
23/24
General Fund (Construction)
$750,000
Total Project Funding = $49,000,000
Budget Summary
Project Component
Budget
Encumbered
Paid to Date
Remaining
Budget
Project Management
$0
$0
$0
$0
Preliminary Services
$0
$0
$0
$0
Environmental
$125,000
$0
$0
$125,000
Design
$3,250,000
($112,344)
($109,836)
$3,137,656
Construction
$44,577,000
$0
$0
$44,577,000
Construction Management
$8,888,000
$0
$0
$8,888,000
Permits
$0
$0
$0
$0
RCTC Internal Cost
$1,153,000
$0
$0
$1,153,000
Right-of-way
$4,553,000
($4,980)
$0
$4,548,020

Page 952 of 1064 ends

Project Summary Totals
$62,546,000
($117,324)
($109,836)
$62,428,676
Recommended Action:

Award a Professional Services Agreement to Mark Thomas for the Potrero Interchange, Phase II Project in an amount not to exceed $2,724,388; and, Authorize the City Manager to amend the Professional Services Agreement with Mark Thomas up to an additional $408,658 (15%).

Attachments:

A. PSA with Mark Thomas

Page 953 of 1064 ends

City of Beaumont Agreement #
C23-139

AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR

THIS AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR is made and effective as of the 19th day of December 2023, by and between the CITY OF BEAUMONT ("CITY") whose address is 550 E. 6th Street, Beaumont, California 92223 and Mark Thomas & Company, a California Corporation, whose address is 16795 Von Karman Ave. Suite 205, Irvine, CA 92606 ("CONTRACTOR").

RECITALS
This Agreement is entered into on the basis of the following facts, understandings and intentions of the parties to this Agreement:

A. CITY desires to engage CONTRACTOR to provide SR-60/Potrero Blvd Ph II Final Plans, Specifications and Estimates; and
B. CONTRACTOR has made a proposal ("Proposal") to the CITY to provide such professional services, which Proposal is attached hereto as Exhibit "A" and incorporated herein by this reference; and
C. CONTRACTOR agrees to provide such services pursuant to, and in accordance with, the terms and conditions of this Agreement, and represents and warrants to CITY that CONTRACTOR possesses the necessary skills, licenses, certifications, qualifications, personnel and equipment to provide such services.

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and mutual covenants contained herein, CITY and CONTRACTOR agree as follows:

1. Term of Agreement. This Agreement is effective as of the date first above written and shall continue until terminated as provided for herein. Notwithstanding anything in this Agreement to the contrary, this Agreement shall automatically terminate after one (1) year(s) unless extended by the parties with the approval of the City Council of the CITY.

2. Services to be Performed. CONTRACTOR agrees to provide the services ("Services") as follows: Development Impact Fees Study per Exhibit "A". All Services shall be performed in the manner and according to the timeframe set forth in the Proposal. CONTRACTOR designates Mark Thomas as CONTRACTOR'S professional(s) responsible for overseeing the Services provided by CONTRACTOR.

3. Associates and Subcontractors. CONTRACTOR may, at CONTRACTOR's sole cost and expense, employ such competent and qualified independent associates, subcontractors and consultants as CONTRACTOR deems necessary to perform the Services; provided, however, that CONTRACTOR shall not subcontract any of the Services without the written consent of CITY.

4. Compensation.

Page 9511 of 1064 ends

Beaumont City CouncilDecember 19, 2023

Beaumont City Council
December 19, 2023