Beaumont City Council
December 17, 2024

CITY OF BEAUMONT
Statement of Net Position (Continued)
June 30, 2024
Primary Government
Governmental Business -Type
Activities Activities
Total

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities $ 6,937,557 $ 1,363,770 $ 8,301,327 Salaries payable and related liabilities 267,610 77,935 345,545 Interest payable 1,008,750 1,197,817 2,206,567
Deposits payable 4,609,786 4,609,786
Unearned revenue 19,988,880 1,385,100 21,373,980
Compensated absences - due within one year 877,773 152,790 1,030,563 Claims payable - due within one year 197,453 - 197,453
Long-term liabilities - due within one year 4,414,491 2,088,659 6,503,150 Total current liabilities 38,302,300 6,266,071 44,568,371 Long-term liabilities:

Compensated absences - due in more than one year 2,633,318 283,752 2,917,070 Claims payable - due in more than one year 1,346,503 - 1,346,503 Long-term liabilities - due in more than one year 63,896,868 78,910,946 142,807,814 Aggregate net pension liability 23,720,425 2,934,620 26,655,045 Total long-term liabilities 91,597,114 82,129,318 173,726,432 Total liabilities 129,899,414 88,395,389 218,294,803

DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
Leases
Total deferred inflows of resources
913,180
1,242,628
2,155, 808
45,979
959,159
1,242,628
45,979 2,201,787

NET POSITION
Net investment in capital assets 250,260,894 111,188,117 361,449,011 Restricted for:

Special projects 37,486,898 37,486,898
Debt service 67,147,636 - 67,147,636
Capital projects 63,674,368 12,860,020 76,534,388
Pension trust 3,436,595 - 3,436,595
Total restricted 171,745,497 12,860,020 184,605,517
Unrestricted 32,690,032 8,510,490 41,200,522
Total net position $ 454,696,423 $ 132,558,627 $ 587,255,050 See accompanying Notes to the Basic Financial Statements 16

CITY OF BEAUMONT
Statement of Activities
For the year ended June 30, 2024
Program Revenues
Functions/Programs
Primary government:

Governmental activities:

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

Sewer
Transit
Total business -type activities
Total primary government
Expenses
$ 9,732,268
23,792,153
10,238,467
2,773,721
7,612,112
3,263,298
Charges for
Services
Operating Capital
Grants and Grant and
Contributions Contributions
$ 2,500,319 $
1,610,143
877,152
4,086,518
118,393
57,412,019 9,192,525
Total
1,352,204 $ 229,840 $ 4,082,363
745,967 8,249,884 10,605,994
3,614,112 11,444,449 15,935,713
169,122 - 4,255,640
- 5,507,975 5,626,368
5,881,405 25,432,148 40,506,078
18,723,090 16,951,994 - 8,604 16,960,598
3,392,642 57,310 3,866,942 1,660,078 5,584,330
22,115,732 17,009,304 3,866,942 1,668,682 22,544,928
$ 79,527,751 $ 26,201,829 $ 9,748,347 $ 27,100,830 $ 63,051,006 See accompanying Notes to the Basic Financial Statements 17

CITY OF BEAUMONT
Statement of Activities (Continued)
For the year ended June 30, 2024
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
Business -type activities:

Sewer
Transit
Total business -type activities
Total primary government
General revenues:

Taxes:

Property taxes
Property taxes in -lieu of motor vehicle taxes
Sales taxes
Vehicle License
Utility users tax
Franchise tax
Transient occupancy tax
Business licenses
Other taxes
Total taxes
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position:

Beginning of year
End of year
Governmental Business -Type
Activities Activities
$ (5,649,905) $
(13,186,159)
5,697,246
1,481, 919
(1,985,744)
(3,263,298)
(16,905,941)
(1,762,492)
2,191,688
429,196
(16,905,941) 429,196
7,806,832
7,693,382
30,085,425
69,901
2,549,379
3,347,040
397,343
430,052
753,376
53,132, 730
10,445, 726
561,982
(77,363)
64,063,075 1,476,765
Total
$ (5,649,905)
(13,186,159)
5,697,246
1,481, 919
(1,985, 744)
(3,263,298)
(16,905,941)
(1,762,492)
2,191,688
429,196
(16,476,745)
7,806,832
7,693,382
30,085,425
69,901
2,549,379
3,347,040
397,343
430,052
753,376
53,132, 730
1,038,707
360,695
77,363
47,157,134 1,905,961
407, 539, 289 130,652,666
11,484,433
922,677
65,539,840
49,063,095
538,191, 955
$ 454,696,423 $ 132,558,627 $ 587,255,050
See accompanying Notes to the Basic Financial Statements 18

Governmental Fund Financial Statements

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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

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CITY OF BEAUMONT
Balance Sheet
Governmental Funds
June 30, 2024
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
$ 46,660,079 $ 43,814,992 $ 12,616,801
3,436,595
916,209
701,396
1,213,814
5,512,874
42,305
76,287
$ 58,483,272 $ 43,891,279 $ 12,616,801
$ 3,656,807 $ 309,227 $
267,610 -
4,524,091 -
743,923 15,275,615
9,192,431 15, 584,842
1,242,628
1,242, 628
42,305 -
3,436,595 28,306,437
10,672,713 -
1,318,631
32,577,969
48,048,213
12,616,801
28, 306,437 12, 616, 801
$ 58,483,272 $ 43,891,279 $ 12,616,801
See accompanying Notes to the Basic Financial Statements 20

CITY OF BEAUMONT
Balance Sheet (Continued)
Governmental Funds
June 30, 2024
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):

Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Capital Projects Funds
General
Capital Projects
Debt Service Fund
Beaumont
Financing Authority
53,516,011 $
494,974
7,175
3,638,015
67,147,636
253,346
Other
Governmental
Funds
Total
Governmental
Funds
$ 12,559,994 $ 169,167,877
3,638,015
3,436,595
67,147,636
8,602
677,832
1,496,072
701,396
1,213,814
6,197,881
295,651
54,018,160 $ 71,038,997 $ 13,246,428 $ 253,294,937
2,960,593 $
2,960,593
51,057,567
51,057,567
Total liabilities, deferred inflows
of resources and fund balances $
253,346
70, 785, 651
71,038,997
$ 10,930 $ 6,937,557
267,610
85,695 4,609,786
3,969,342 19,988,880
4,065,967 31,803,833
9,180,461
9,180,461
1,242,628
1,242,628
295,651
124, 325, 945
61,730,280
1,318,631
32,577,969
220,248,476
54,018,160 $ 71,038,997 $ 13,246,428 $ 253,294,937
See accompanying Notes to the Basic Financial Statements 21

CITY OF BEAUMONT
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Position
June 30, 2024
Total Fund Balances - Total Governmental Funds $ 220,248,476 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
Interest payable
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. 67, 031, 574
247, 902, 664
(3,305,663)
(3,511,091)
(1,543,956)
(68,311,359)
(1,008,750)
(23,720,425)
12,108, 247
(913,180)
9,719,886
Net Position of Governmental Activities $ 454,696,423
See accompanying Notes to the Basic Financial Statements 22

CITY OF BEAUMONT
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2024
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
Transfers in
Transfers (out)
Total other financing sources (uses)
Net changes in fund balances
FUND BALANCES:

Beginning of year, as previously reported
Correction of an error (Note 14)
Beginning of year, as restated
End of year
General
Fund
Special Revenue Fund
Development
Impact Fees (DIF)
$ 39,902,359 $
3,347,040
7,768,111
4,724,060
391,623
753,376
3,180,775
1,488,996
2,511,406
64,067,746
10,077,070
23,534,491
5,121,943
3,347,519
7,564,225
1,060,491
624,614
13,156
51,343,509
12,724,237
578,440
173,241
818
7,390,919
(14,604,940)
(6,461,522)
6,262,715
41,785,498
41,785,498
17,308,618
1,778,465
19,087,083
19,087,083
(9,854,142)
(9,854,142)
9,232,941
19,073,496
19,073,496
$ 48,048,213 $ 28,306,437
Capital Projects Funds
Community Facilities
District (CFD)
7,593
576,503
584,096
584,096
(1,181,609)
(1,181,609)
(597,513)
13,214,314
13,214,314
$ 12,616,801
See accompanying Notes to the Basic Financial Statements 23

CITY OF BEAUMONT
Statement of Revenues, Expenditures, and Changes in Fund Balance (Continued) Governmental Funds
For the year ended June 30, 2024
Capital Projects Funds Debt Service Fund Other Total
General Beaumont Governmental Governmental
Capital Projects Financing Authority Funds Funds
REVENUES:

Taxes $ $ $ 8,484,947 $ 48,387,306
Franchise fees 3,347,040
Intergovernmental 554,482 4,842,999 13,165,592
License and permits 20,129 22,052,807
Fines and forfeitures - 391,623
Assessments levied - 760,969
Use of money and property 1,792,374 2,402,880 479,901 10,210,898 Charges for services - 1,488,996
Other revenues 1,940,087 99,278 4,550,771
Total revenues 4,286,943 2,402,880 13,927,254 104,356,002 EXPENDITURES:

Current:

General government 4,613 10,081,683
Public safety - 350,163 23,884,654
Public works - 5,121,943
Community development 338,114 3,685,633
Community services - 1,490 7,565,715
Capital outlay 22,561,759 - 23,622,250
Debt service:

Principal 3,975,600 - 4,600,214
Interest, fiscal, and other charges 2,319,143 - 2,332,299 Total expenditures 22,561,759 6,294,743 694,380 80,894,391

REVENUES OVER
(UNDER) EXPENDITURES (18,274,816) (3,891,863) 13,232,874 23,461,611 OTHER FINANCING SOURCES (USES):

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

Beginning of year, as previously reported
Correction of an error (Note 14)
Beginning of year, as restated
End of year
30,230,765
30,230,765
11,955,949 (3,891,863)
39,101,618
39,101,618
83,730,860
(8,800,000)
74,930,860 8,005,943 196,111,729
578,440
173,241
818
401,567 38,023,251
(12,459,923) (38,100,614)
(12,058,356) 675,136
1,174,518 24,136,747
8,005,943
204,911,729
(8,800,000)
$ 51,057,567 $ 71,038,997 $ 9,180,461 $ 220,248,476
See accompanying Notes to the Basic Financial Statements 24

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, 2024
Net Change in Fund Balances - Total Governmental Funds $ 24,136,747 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
Lease/SBITA acquisition
Premium amortization
Interest payable
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. 27,185,276
(7,733,020)
4,871,334
(751,681)
78,071
(1,008,750)
Pension related net adjustments (1,693,571)
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 (45,884)
Changes in claims payable 757,900
Internal service funds are used by management to charge the costs of certain activities, for equipment and risk management, to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities. 1,360,712
Change in Net Position of Governmental Activities $ 47,157,134 See accompanying Notes to the Basic Financial Statements 25

Proprietary Fund Financial Statements

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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

CITY OF BEAUMONT
Statement of Net Position
Proprietary Funds
June 30, 2024
Business -type Activities - Governmental
Enterprise Funds Activities
Sewer Transit Internal Service
Fund Fund Total Fund
ASSETS
Current assets:

Cash and investments $ 23,024,078 $ 6,633 $ 23,030,711 $ 6,413,888 Receivables:

Accounts 2,613,442 51,544 2,664,986
Interest 1,263 1,263
Due from other governments 11,211 1,590,651 1,601,862
Deposits - -
Inventory - - -
Prepaids 1,000 1,000 335
Total current assets 25,649,994 1,649,828 27,299,822 6,414,223 Noncurrent assets:

Restricted cash and investments with fiscal agent 8,815 8,815 Capital assets:

Nondepreciable 5,969,773 1,088,585 7,058,358 1,265,785
Depreciable 303,429,387 10,567,750 313,997,137 2,719,164 Less: accumulated depreciation and amortization (122,271,546) (6,596,227) (128,867,773) (679,286) Total capital assets 187,127,614
Total noncurrent assets 187,136,429
5,060,108 192,187,722 3,305,663
5,060,108 192,196,537 3,305,663
Total assets 212,786,423 6,709,936 219,496,359 9,719,886

DEFERRED OUTFLOWS OF RESOURCES
Pension -related deferred outflows 867,482 636,154 1,503,636 Total deferred outflows of resources 867,482 636,154 1,503,636

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 1,304,863 58,907 1,363,770 Salaries payable and related liabilities 41,429 36,506 77,935 Due to other funds - - -
Interest payable 1,197,817 - 1,197,817
Unearned revenue 943,666 441,434 1,385,100
Compensated absences - due within one year 80,422 72,368 152,790 Long-term liabilities- due within one year 2,083,194 5,465 2,088,659 Total current liabilities 5,651,391 614,680 6,266,071
Noncurrent liabilities:

Compensated absences - due in more than one year
Long-term liabilities - due in more than one year
Net pension liability
149,355
78,910,946
1,693,050
134,397
1,241,570
283,752
78,910,946
2,934,620
Total noncurrent liabilities 80,753,351 1,375,967 82,129,318 Total liabilities 86,404,742 1,990,647 88,395,389

DEFERRED INFLOWS OF RESOURCES
Pension -related deferred inflows 26,527 19,452 45,979
Total deferred inflows of resources 26,527 19,452 45,979

NET POSITION (DEFICIT)
Net investment in capital assets 106,133,474 5,054,643 111,188,117 Restricted for capital projects 12,860,020 12,860,020
Unrestricted 8,229,142 281,348 8,510,490
Total net position
3,305,663
6,414,223
$ 127,222,636 $ 5,335,991 $ 132,558,627 $ 9,719,886
See accompanying Notes to the Basic Financial Statements 27

CITY OF BEAUMONT
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the year ended June 30, 2024
Business -type Activities - Governmental
Enterprise Funds Activities
Sewer Transit Internal Service
Fund Fund Total Fund
OPERATING REVENUES:

Charges for services
Other revenue
Total operating revenues
$ 13,555,693 $ 57,310 $ 13,613,003 $ 1,814,483
190,030 44,665 234,695 -
13, 745, 723 101,975 13, 847, 698 1,814,483
OPERATING EXPENSES:

Salaries 1,819,456 1,627,830 3,447,286
Fringe benefits 613,689 707,608 1,321,297
Administration 958,112 153,775 1,111,887
Contract services 1,938,502 34,458 1,972,960
Fuels, lubricants, and maintenance 851,917 109,858 961,775 - Replacement expense - - 263,329
Supplies 873,692 17,592 891,284 -
Office 57,155 24,586 81,741
Utilities 1,326,887 71,668 1,398,555 -
Depreciation and amortization 7,210,562 644,992 7,855,554 483,659 Total operating expenses 15,649,972 3,392,367 19,042,339 746,988

OPERATING INCOME (LOSS)
(1,904,249) (3,290,392) (5,194,641)
1,067,495
NONOPERATING REVENUES (EXPENSES):

Local transportation funds 2,291,220 2,291,220
Lease revenue 126,000 126,000 -
Gain on sale of capital assets 4 4 14,740
Mitigation fees 3,396,301 - 3,396,301 -
Intergovernmental - 1,575,722 1,575,722 -
Investment earnings 1,053,265 (14,558) 1,038,707 278,797 Interest expense (3,073,118) (275) (3,073,393) (320)
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
Total transfers and capital contributions
Change in net position
NET POSITION:

Beginning of year
End of year
1,376,448 3,978,113 5,354,561 293,217
(527,801) 687,721 159,920 1,360,712
1,660,074
8,604
40,790 36,573
49,394 1,696,647
1,660,074
8,604
77,363
1,746,041
(478,407) 2,384,368 1,905,961 1,360,712
127,701,043 2,951,623 130,652,666 8,359,174
$ 127,222,636 $ 5,335,991 $ 132,558,627 $ 9,719,886
See accompanying Notes to the Basic Financial Statements 28

CITY OF BEAUMONT
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
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
Other cash reciepts
Net cash provided by (used in) operating activities

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Local transportation funds
Intergovernmental
Transfers in
Net cash provided by (used in) noncapital
financial activities

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets
Proceeds from disposition of capital assets
Mitigation fees
Developer capital contributions
Capital grants received
Payment of principal on long-term liabilities
Payment of interest on long-term liabilities
Net cash provided by (used in) capital
and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income
Net cash provided by (used in) investing activities
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 with fiscal agent
Total cash and cash equivalents
Business -type Activities -
Enterprise Funds
Sewer Transit
Fund Fund
$ 13,566,786
(4,339,220)
(3,370,112)
190,030
$ 5,984
(395,024)
(2,400,445)
44,665
126,000
6,047,484 (2,618,820)
40,790
40,790
(2,955,645)
3,396,301
8,604
(1,446,326)
(3,649,567)
2,291,220
150,958
36,573
2,478,751
(2,989,293)
4 1,660,074
(191,954)
(275)
(4,646,633) (1,521,444)
1,053,265
1,053,265
2,494,906
20,537,987
(14,558)
(14,558)
(1,676,071)
Total
Governmental
Activities
Internal Service
Fund
$ 13,572,770 $ 1,814,483
(4,734,244) 91,043
(5,770,557)
234,695
126,000
3,428,664
2,291,220
150,958
77,363
2,519,541
(5,944,938)
4 3,396,301
8,604
1,660,074
(1,638,280)
(3,649,842)
1,905,526
(2,589,019)
14,740
(12,483)
(320)
(6,168,077) (2,587,082)
1,038,707
1,038,707
818,835
278,797
278,797
(402,759)
1,682,704 22,220,691 6,816,647
$ 23,032,893 $ 6,633 $ 23,039,526 $ 6,413,888
$ 23,024,078
8,815
$ 23,032,893
$ 6,633 $ 23,030,711 $ 6,413,888
8,815
$ 6,633 $ 23,039,526 $ 6,413,888
See accompanying Notes to the Basic Financial Statements 29

CITY OF BEAUMONT
Statement of Cash Flows (Continued)
Proprietary Funds
For the year ended June 30, 2024
Business -type Activities - Governmental
Enterprise Funds Activities
Sewer Transit Internal Service
Fund Fund Total Fund

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

Operating income (loss) $ (1,904,249) $ (3,290,392) $ (5,194,641) $ 1,067,495 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization 7,210,562 644,992 7,855,554 483,659 Other adjustments - 126,000 126,000 -
Changes in current assets, deferred outflows of resources, liabilities, and deferred inflows of resources:

Accounts receivable 358,619 (51,326) 307,293
Due from other governments 117,226 117,226
Deposits - 362,254
Inventories 97,424 97,424
Prepaids 5,655 436 6,091 (335)
Pension -related deferred outflows of resources 78,620 (23,970) 54,650 - Accounts payable and accrued liabilities 605,854 (137,298) 468,556 (7,547) Salaries payable and related liabilities 9,110 6,830 15,940 Unearned revenue (464,752) - (464,752)
Compensated absences (25,841) (16,083) (41,924)
Aggregate net pension liability (20,624) 132,722 112,098 Pension -related deferred inflows of resources (20,120) (10,731) (30,851) Total adjustments 7,951,733 671,572 8,623,305 838,031
Net cash provided by (used in) operating activities $ 6,047,484 $ (2,618,820) $ 3,428,664 $ 1,905,526 See accompanying Notes to the Basic Financial Statements 30

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Fiduciary Fund Financial Statements

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

CITY OF BEAUMONT
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Custodial Funds
ASSETS
Cash and investments $ 1,729,411
Cash and investments with fiscal agent 41,832,143
Due from other governments 210,347
Total assets 43,771,901

LIABILITIES
Interest payable 2,398,000
Unearned revenue 10,803
Deposits payable 47,862
Due to other governments 67,147,636
Due to bondholders 179,486,666
Total liabilities 249,090,967
Net Position (Deficit)
Restricted for:

Individuals, organizations and other governments
Total net position
(205,319,066)
$ (205,319,066)
See accompanying Notes to the Basic Financial Statements 32

CITY OF BEAUMONT
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2024
Custodial Funds
ADDITIONS:

Investment Income $ 1,336,372
Assessments 21,866,939
Bond proceeds 9,474,799
Total additions 32,678,110
DEDUCTIONS:

Administration 983,350
Payments to trustee 8,037,567
Interest expense 8,731,008
Bond proceeds to developer 15,485,019
Payment for infrastructure 1,940,086
Total deductions 35,177,030
Change in net position (2,498,920)
NET POSITION (DEFICIT):

Beginning of year (202,820,146)
End of year $ (205,319,066)
See accompanying Notes to the Basic Financial Statements 33

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Notes to the Basic Financial Statements

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CITY OF BEAUMONT
Index to the Notes to the Basic Financial Statements
For the year ended June 30, 2024
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
O. Implementation of New GASB Pronouncements 48
P. Upcoming Governmental Standards Implementation 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 64
Note 7 — Debt Without City Commitment 66
34

CITY OF BEAUMONT
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024
Note 8 — Compensated Absences 68
A. Governmental Activities 68
B. Business -Type Activities 68
Note 9 — Risk Management 68
Note 10 — Pension Plans 69
Note 11 — Other Required Disclosures 78
A. Deficit Fund Balances 78
B. Expenditures Exceeding Appropriations 78
Note 12 — Equity Classification 79
A. Fund Balances 79
B. Net Position 80
Note 13 — Commitments and Contingencies 80
A. Litigation 80
B. Grants 81
C. Construction Commitments 81
D. WRCOG Related Settlement Agreement 81
Note 14 — Correction of Error 82
35

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2024.

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, 2024.

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

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Government -Wide Financial Statements
The City's government -wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental and business - type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in the government -wide financial statements.

These financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, liabilities and deferred amounts, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Certain types of transactions are reported as program revenues within three categories in the statement of activities:
➢ Charges for services
➢ Operating grants and contributions
➢ Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business -type activities, which are presented as internal balances and eliminated in the total primary government column. However, those transactions between governmental and business -type activities have not been eliminated. The following interfund activities have been eliminated:
➢ Due from/to other funds
➢ Transfers in/out
Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all major governmental funds and non -major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences between fund balance as presented in these statements to the net position presented in the government -wide financial statements. The City has presented all major funds that meet the applicable criteria.
39

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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.

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

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) C. Cash, Cash Equivalents and Investments, (Continued)
The City holds investments in California Class securities, which are primarily comprised of municipal bonds issued by the State of California and other California -based local government securities. These investments are managed in accordance with the City's investment policy.

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.
43

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) F. Capital Assets, (Continued)
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.

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 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 and 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.
44

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) H. Compensated Absences, (Continued)
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.

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.

GAAP 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, 2022
June 30, 2023
July 1, 2022 to June 30, 2023
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 as of June 30 available taxes or those collected within 60 days.
45

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) J. Property Taxes, (Continued)
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.

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.
46

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) L. Fund Balances (Continued)
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.

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

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) O. Implementation of New GASB Pronouncements
GASB Statement No. 100 — the City adopted GASB Statement No. 100, Accounting Changes and Error Corrections. This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting —understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements. See Note 14 for details.

P. 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. 102, Certain Risk Disclosures is effective for fiscal years beginning after June 15, 2024.

GASB Statement No. 103, Financial Reporting Model Changes is effective for fiscal years beginning after June 15, 2025.

GASB Statement No. 104, Disclosure of Certain Capital Assets is effective for fiscal years beginning after June 15, 2025.

The remainder of the is page left intentionally blank
48

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2024:

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
$ 198,612,476
3,436,595
3,646,830
67,147,636
1,729,411
41,832,143
Total $ 316,405,091
Cash, cash equivalents, and investments, consisted of the following as of June 30, 2024:

Deposits with financial institutions $ 16,150,788
Deposits with fiscal agents 45,478,972
Petty cash 4,255
Investments 254,771,076
Total cash and investments $ 316,405,091
The remainder of the is page left intentionally blank
49

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 2 - Cash and Investments (Continued)
A. Summary (Continued)
As of June 30, 2024, 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, 2024:

Investment Type
State investment pool
California CLASS
Certificate of deposit
Medium Term Notes
Money market funds
US Treasury Bills
US Treasury Notes
Federal Home Loan Bank
Federal Farm Credit Bank
Highmark Plus
Restricted investments in CFDs
Total
Total as of
June 30, 2024
$ 49,836,601
32,625,627
5,110,271
14,301,871
25,062,632
422,948
43,366,457
7,096,226
6,364,212
3,436,595
67,147,636
$ 254,771,076
Measurement
Inputs
Uncategorized
Uncategorized
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

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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.

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
Maximum
Maturity
N/A
5 Years
5 Years
N/A
5 Years
5 Years
5 Years
5 Years
5 Years
Maximum
Percentage
of Portfolio
None
5%
50/0
None
None
5%
5%
None
5%
The remainder of the is page left intentionally blank
Maximum
Investment
in One Issuer
$75 million
30%
30%
20%
None
10%
10%
None
30%
51

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2024.

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

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2024, the City had the following investments and maturities:

Maturities
Investment Type
Amount 1 year or Tess 1 - 5 years More than 5 years
State investment pool $ 49,836,601 $ 49,836,601 $ - $
California CLASS 32,625,627 32,625,627
Certificates of deposit 5,110,271 5,110,271
Medium Term Notes 14,301,871 2,930,720 11,371,151
Money market funds 25,062,632 25,062,632 -
Municipal bonds 422,948 422,948
US Treasury Notes 43,366,457 1,319,112 42,047,345
Federal Home Loan Bank 7,096,226 1,499,145 5,597,081
Federal Farm Credit Bank 6,364,212 - 6,364,212
Restricted:

Investments in CFDs 67,147,636 4,015,000 21,135,000 41,997,636 Pension trust - Highmark Plus 3,436,595 3,436,595 - -
Total $ 254,771,076 $ 125,835,703 $ 86,937,737 $ 41,997,636 53

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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
California CLASS
Certificates of deposit
Medium Term Notes
Money market funds
US Treasury Notes
Municipal bonds
Federal Home Loan Banks
Federal Farms Credit Banks
Restricted investments in CFDs
Pension trust - Highmark Plus
Total
Custodial Credit Risk
$ 49,836,601
32,625,627
5,110,271
14, 301, 871
25,062,632
43,366,457
422,948
7,096,226
6,364,212
67,147,636
3,436,595
$ 254,771,076
Not Rated Not Rated
Not Rated Not Rated
Not Rated Not Rated
A1-Aaa A1-Aaa
Aaa AAAm
A1-Aaa A1-Aaa
A1-Aaa A1-Aaa
A1-Aaa A1-Aaa
A1-Aaa A1-Aaa
Not Rated Not Rated
Not Rated Not Rated
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

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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
State investment pool
California CLASS
Certificates of deposit
Medium Term Notes
Money market funds
US Treasury Notes
Municipal bonds
Federal Home Loan Banks
Federal Farms Credit Banks
Restricted investments in CFDs
Pension trust - Highmark Plus
Total
Note 3 - Receivables
A. Governmental Activities
Lease receivables
Total as of
June 30, 2024
$ 49,836,601
32, 625, 627
5,110,271
14,301,871
25,062,632
43,366,457
422,948
7,096,226
6,364,212
67,147, 636
3,436,595
$ 254,771,076
Percentage of
Investments

19.56%

12.81%

2.01%

5.61%

9.84%

17.02%

0.17%

2.79%

2.50%

26.36%

1.35%
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, 2024 was $1,213,814 and $522,695, respectively. In addition, the City recognized lease revenue of $105,532 during the fiscal year related to these leases.
55

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 4 - Interfund Balances and Transactions
A. Transfers
Transfers in and out for the year ended June 30, 2024, were as follows:

Transfers In Transfers Out Amount Purpose
General Fund Non -major Funds $ 1,612,780 CFD - City maintenance/admin; Council approved project funding
5,778,139 Project funding
Subtotal 7,390,919
Non -major Funds General Fund
Wastewater Fund
General Capital Projects Fund
General Fund
Non -major Funds
General Fund
CFD Capital Projects Fund
Development Impact Fund
Non -major fund
Non -major Funds - Transit Fund General Fund
401,567
Subtotal 401,567
38,863
1,927
Subtotal 40,790
14,127,937
1,181,609
9,854,142
5,067,077
Subtotal 30,230,765
36,573
Subtotal 36,573
Total $ 38,100,614
Capital projects
One time equity bonus
Capital Projects
Capital projects
Capital Projects
Capital Projects
Capital Projects
One time equity bonus
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56

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 5 - Capital Assets
A. Governmental Activities
Summary of changes in capital assets for governmental activities for the year ended June 30, 2024 is as follows:

Balance Balance
July 1, 2023 Additions Deletions June 30, 2024
Nondepreciable assets:

Land $ 32,661,061 $ 142,173 $ - $ 32,803,234
Construction in progress 12,286,704 24,342,742 (2,401,106) 34,228,340 Total nondepreciable assets 44,947,765 24,484,915 (2,401,106) 67,031,574 Depreciable/amortized assets:

Building and improvements 22,609,341 1,753,542 24,362,883 Machinery, furniture, and equipment 9,292,302 3,071,814 (140,000) 12,224,116 Vehicles 4,821,392 2,095,762 (224,057) 6,693,097
Infrastructure 460,752,867 21,530 460,774,397
Intangible right to use assets 1,838,948 751,681 2,590,629 Subtotal 499,314,850 7,694,329 (364,057) 506,645,122
Less accumulated depreciation/amortization:

Building and improvements (11,277,185) (491,309) (11,768,494) Machinery, furniture, and equipment (5,033,846) (630,583) 140,000 (5,524,429) Vehicles (2,735,225) (869,640) 220,215 (3,384,650)
Infrastructure (231,173,736) (5,603,170) (236,776,906)
Intangible right to use assets (666,002) (621,977) (1,287,979) Subtotal (250,885,994) (8,216,679) 360,215 (258,742,458) Total depreciable/amortized assets, net 248,428,856 (522,350) (3,842) 247,902,664 Total $ 293,376,621 $ 23,962,565 $ (2,404,948) $ 314,934,238 Governmental activities depreciation/amortization expense for capital assets for the year ended June 30, 2024, are as follows:

General government $ 492,610
Public safety 913,179
Public works 5,949,818
Community development 159,293
Community services 701,779
Total depreciation/amortization expense $ 8,216,679
57

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2024, is as follows:

Nondepreciable assets:

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

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

Building and improvements
Machinery, furniture, and equipment
Vehicles
Infrastructure
Intangible right to use assets
Subtotal
Total depreciable/amortized assets, net
Total
Balance
July 1, 2023 Additions
Balance
Deletions June 30, 2024
$ 3,458,322 $ - $ $ 3,458,322
113,496,163 2,814,974 (112,711,102) 3,600,035
116,954,485
2,814,974 (112,711,102)
730,835 -
44,468,730 13,900
6,293,683 3,221,565
146, 216, 335 112, 605, 600
337,395 109,094
198,046,978 115,950,159
7,058,357
730,835
44,482,630
9,515,248
258,821,935
446,489
313,997,137
(650,608) (39,966) (690,574)
(28,082,395) (1,781,542) (29,863,937)
(5,026,689) (563,594) (5,590,283)
(87,176,637) (5,383,414) (92,560,051)
(75,889) (87,038) (162,927)
(121,012,218) (7,855,554) (128,867,772)
77,034,760 108,094,605 185,129,365
$ 193,989,245 $ 110,909,579 $ (112,711,102) $ 192,187,722 Business -type activities depreciation/amortization expense for capital assets for the year ended June 30, 2024, are as follows:

Sewer $ 7,210,562
Transit 644,992
Total depreciation/amortization expense $ 7,855,554
58

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2024, is as follows:

Classification
Balance Balance Due Within Due in More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Governmental Activities:

City
Lease Liability $ 1,018,295 $ 578,440 $ (581,684) $ 1,015,051 $ 243,411 $ 771,640 Subscription Liability 302,563 173,241 (327,132) 148,672 58,009 90,663 Beaumont Public Financing Authority
2015 Refunding Revenue Bonds, Series A 9,270,000 (265,000) 9,005,000 250,000 8,755,000 2015 Refunding Revenue Bonds, Series B 14,380,000 - (850,000) 13,530,000 890,000 12,640,000 2015 Refunding Revenue Bonds, Series C 3,600,000 - (245,000) 3,355,000 255,000 3,100,000 2015 Refunding Revenue Bonds, Series D 5,290,000 - (360,000) 4,930,000 375,000 4,555,000 2019 Refunding Revenue Bonds, Series A 4,415,000 (355,000) 4,060,000 365,000 3,695,000 2020 Revenue Bonds, Series A 16,200,000 - (530,000) 15,670,000 545,000 15,125,000 2021 Revenue Bonds, Series A 17,265,000 - (1,370,000) 15,895,000 1,355,000 14,540,000 Bond premium 2019 Revenue Bond, Series A 780,707 - (78,071) 702,636 78,071 624,565 2023 Revenue Bonds, CFD 2016-3 8,800,000 - (8,800,000) - - - Total Revenue Bonds 80,000,707 (12,853,071) 67,147,636 4,113,071 63,034,565 Total governmental activities $ 81,321,565 $ 751,681 $ (13,761,887) $ 68,311,359 $ 4,414,491 $ 63,896,868 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, 2024, the City had total outstanding lease liability of $1,015,051 and right to use asset of $1,051,862, net of amortization.

Estimated future lease liability requirements are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 243,411 $ 34,085 $ 277,496
2026 248,320 25,693 274,013
2027 261,497 16,919 278,416
2028 261,823 7,690 269,513
Totals $ 1,015,051 $ 84,387 $ 1,099,438
59

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Subscription liabilities
The City has 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, 2024, the governmental activities of the City had total outstanding subscription liability of $148,672 and right to use asset of $250,788, net of amortization.

Estimated future subscription liability requirements are as follows:

Year Ending
June 30,
Principal
Interest Total
2025 $ 58,009 $ 673 $ 58,682
2026 45,762 165 45,927
2027 22,450 - 22,450
2028 22,451 - 22,451
Totals $ 148,672 $ 838 $ 149,510
Revenue Bonds
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%.

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, 2024 was $9,005,000 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. 60

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
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, 2024 was $13,530,000 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%.

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, 2024 was $3,355,000 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. 61

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
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%.

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, 2024 was $4,930,000 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 - 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

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2024 was $4,060,000 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, 2024 was $15,670,000 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

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2024 was $15,895,000 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.

Annual Debt Service Requirements to Maturity
The annual debt service requirements to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 4,035,000 $ 2,199,418 $ 6,234,418
2026 4,120,000 2,084,450 6,204,450
2027 4,230,000 1,965,516 6,195,516
2028 4,320,000 1,845,558 6,165,558
2029 4,430,000 1,715,366 6,145,366
2030-2034 23,410,000 6,258,114 29,668,114
2035-2039 12,525,000 2,876,175 15,401,175
2040-2045 8,755,000 878,874 9,633,874
2046-2050 620,000 15,375 635,375
Totals $ 66,445,000 $ 19,838,846 $ 86,283,846
B. Business -Type Activities
Summary of changes in long-term liabilities for the business -type activities for the year ended June 30, 2024, is as follows:

Classification
Business -Type Activities:

Wastewater Revenue Bonds
Bond Premium
Lease Liabilities
Subscription Liabilities
Total business -type activities $ 83,074,944 $ 109,094 $ (2,184,433) Balance
July 1, 2023
$ 76,210,000 $
Balance
Additions Deletions June 30, 2024
Due Within
One Year
Due in More
Than One Year
$ (1,425,000) $ 74,785,000 $ 1,495,000 $ 73,290,000
6,630,347 (546,153) 6,084,194 546,153 5,538,041
109,094 109,094 26,189 82,905
234,597 - (213,280) 21,317 21,317 -
$ 80,999,605 $ 2,088,659 $ 78,910,946
64

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 6 - Long -Term Liabilities (Continued)
Lease liabilities
During the current fiscal year, the City entered into a lease agreement for the use of the SAWPA Brine Line (capacity rights). The agreement is for four years with the City making monthly payments of $2,400. The agreement has an incremental borrowing rate of 2.69%.

As of June 30, 2024, the business -type activities of the City had total outstanding lease liabilities of $109,094 and right to use asset of $107,050, net of amortization.

Estimated future lease liability requirements are as follows:

Year Ending
June 30,
Principal
Interest Total
2025 $ 26,189 $ 2,610 $ 28,799
2026 26,895 1,904 28,799
2027 27,629 1,170 28,799
2028 28,381 416 28,797
Total $ 109,094 $ 6,100 $ 115,194
Subscription liabilities
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, 2024, the business -type activities of the City had total outstanding subscription liabilities of $21,317 and right to use asset of $176,512, net of amortization.

Estimated future subscription liability requirements are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 21,317 $ 390 $ 21,707
Total $ 21,317 $ 390 $ 21,707
65

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 6 - Long -Term Liabilities (Continued)
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.

The annual debt service requirements to maturity for the revenue bonds is as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 1,495,000 $ 3,575,713 $ 5,070,713
2026 1,570,000 3,499,088 5,069,088
2027 1,655,000 3,418,463 5,073,463
2028 1,740,000 3,333,558 5,073,558
2029 1,825,000 3,244,463 5,069,463
2030-2034 10,525,000 14,829,813 25,354,813
2035-2039 13,060,000 12,291,669 25,351,669
2040-2044 16,620,000 8,734,250 25,354,250
2045-2049 21,345,000 4,011,875 25,356,875
2050-2051 4,950,000 123,750 5,073,750
Totals $ 74,785,000 $ 57,062,642 $ 131,847,642
Note 7 - Debt Without City Commitment
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. 66

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 7 - Debt Without City Commitment (Continued)
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.

As of June 30, 2024, 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
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, 1A 2016-1
2019 Revenue Bonds, IA 2016-2
2019 Revenue Bonds, IA 2016-4
2020 Revenue Bonds, IA 8F
2020 Revenue Bonds, CFD 2019-1
2023 Revenue Bonds, CFD 2016-3
2024 Revenue Bonds, CFD
Total Limited Obligation Bond Debt
Balance
June 30, 2024
$ 9,005,000
13,530,000
3,355,000
4,930,000
4,060,000
15, 670, 000
15, 895, 000
702,636
67,147,636
69,198,256
32,655,000
1,800,000
3,330,000
12,195,000
8,120,000
9,545,000
3,845,000
12,555,000
2,215,000
8,800,000
14, 550, 000
$ 245,955,892
67

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 8 - Compensated Absences
The City's total liability for vested and unpaid compensated absences (vacation and vested sick leave) was $3,947,633 as of June 30, 2024.

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, 2024, is as follows:

Classification
Balance Balance Due Within Due in More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Governmental Activities:

Compensated absences $ 3,465,207 $1,335,952 $(1,290,068) $ 3,511,091 $ 877,773 $ 2,633,318 Total governmental activities $ 3,465,207 $ 1,335,952 $(1,290,068) $ 3,511,091 $ 877,773 $ 2,633,318 B. Business -Type Activities
Summary of changes in compensated absences for the year ended June 30, 2024, is as follows:

Classification
Balance Balance Due Within Due in More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Business -Type Activities:

Compensated absences $ 478,466 $ 154,342 $ (196,266) $ 436,542 $ 152,790 $ 283,752 Total governmental activities $ 478,466 $ 154,342 $ (196,266) $ 436,542 $ 152,790 $ 283,752 Note 9 - Risk Management
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, 2024.

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.
68

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 9 - Risk Management (Continued)
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.

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:
2021-2022
2022-2023
2023-2024
Beginning of
Fiscal Year
Liability
$ 2,806,120
2,290,751
2,301,856
Current Year
Claims and
Changes in
Estimates
Claim
Payments
$ 84,356 $
70,625
(578, 397)
Balance at
Fiscal Year
End
(599,725) $ 2,290,751
(59,520) 2,301,856
(179,503) 1,543,956
Note 10 - Pension Plans
For the governmental activities, pensions are generally liquidated by the General Fund.

Summary
Deferred outflows of resources:

CaIPERS Miscellaneous
CaIPERS Safety
Total deferred outflows of resources
Deferred inflows of resources:

CaIPERS Miscellaneous
CaIPERS Safety
Total deferred inflows of resources
Net pension liabilities:

CaIPERS Miscellaneous
CaIPERS Safety
Total net pension liabilities
Pension expenses:

CaIPERS Miscellaneous
CaIPERS Safety
Total net pension expenses
Governmental
Activities
Business -Type
Activities
Total
$ 4,279,575 $ 1,503,636 $ 5,783,211
7,828,672 - 7,828,672
$ 12,108,247 $ 1,503,636 $ 13,611,883
$ 130,863
782,317
$ 913,180
$ 8,352,383
15,368,042
$ 23,720,425
$ 45,979
$ 45,979
$ 176,842
782,317
$ 959,159
$ 2,934,620 $ 11,287,003
15,368,042
$ 2,934,620 $ 26,655,045
$ 2,852,678 $
3,448,833
$ 6,301,511 $
$ 2,852,678
3,448,833
$ 6,301,511
69

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2024 are summarized as follows:

Miscellaneous

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

2.0% to 3.0%

17.26%
Miscellaneous
PEPRA

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

1.0%to2.5%

7.68%
Safety

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

3.0%

27.11%
Safety
PEPRA

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

2.0% to 2.7%

13.54%
70

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2024 were $1,961,630 and $2,510,413, for the Miscellaneous and Safety plans, respectively. The actual employer payments of $4,243,619 made to CaIPERS by the City during the measurement period ended June 30, 2023 differed from the City's proportionate share of the employer's contributions of $3,522,379 by $721,240, 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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
71

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2023 measurement period was determined by an actuarial valuation as of June 30, 2022, with update procedures used to roll forward the total pension liability to June 30, 2023. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Fair Value of Assets
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CALPERS' membership data for all Funds Post Retirement Benefit The lesser of contract COLA or 2.30% until Purchasing Increase Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.
(1) The mortalitytable used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CaIPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP -2020 published bythe Society of Actuaries. For more details on this table, please refer to the 2021 experience study 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.
72

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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%)
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.

Change of Assumptions
There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 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. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CaIPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014
73

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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
There were no subsequent events that would materially affect the results presented in this disclosure.

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.

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
Net Pension
Liability
Miscellaneous
Balance at: 6/30/22 (Valuation date) $ 45,894,203 $ 35,813,769 $ 10,080,434 Balance at: 6/30/23 (Measurement date) 49,834,513 38,547,510 11,287,003 Net changes during 2022-2023 $ 3,940,310 $ 2,733,741 $ 1,206,569 Valuation Date (VD), Measurement Date (MD).

Safety
Balance at: 6/30/22 (Valuation date) $ 60,447,793 $ 46,586,284 $ 13,861,509 Balance at: 6/30/23 (Measurement date) 63,546,139 48,178,097 15,368,042 Net changes during 2022-2023 $ 3,098,346 $ 1,591,813 $ 1,506,533 Valuation Date (VD), Measurement Date (MD).
74

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 10 - Pension Plans (Continued)
Proportionate Share of Net Pension Liability (Continued) 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, 2023 and 2024 fiscal years was as follows:

Proportion - June 30, 2023
Proportion - June 30, 2024
Change - Increase (Decrease)
Miscellaneous

0.21543%

0.22572%

0.01029%
Safety Total

0.20172%

0.20559%

0.20728%

0.21366%

0.00387% 0.00638%
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%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous $
Safety
Total
18,026,909 $ 11,287,003
24,085,441 15,368,042
$ 42,112,350
$ 5,739,482
8,240,947
$ 26,655,045 $ 13,980,429
75

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 10 - Pension Plans (Continued)
Proportionate Share of Net Pension Liability (Continued) 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).

The EARSL for PERF C for the measurement period ending June 30, 2023 is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (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, 2022), the City's net pension liabilities were $10,080,434 and $13,861,509, for the Miscellaneous and Safety plans, respectively. For the measurement period ending June 30, 2023 (the measurement date), the City incurred a pension expense of $2,852,678 and $3,448,833 for the Miscellaneous and Safety Plans, respectively.
76

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 10 - Pension Plans (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
As of June 30, 2024, 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 $ 1,961,630 $ - Difference between projected and actual earning on
pension plan investments 1,827,467 -
Change in Employer's Proportion 461,085 -
Changes in assumptions 681,447 -
Difference between actual and expected experience 576,602 89,445 Difference between employer's actual contributions
and proportionate share of contributions 274,980 87,397 Totals $ 5,783,211 $ 176,842
Safety Plans
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to measurement date $ 2,510,413 $ - Difference between projected and actual earning on
pension plan investments 2,103,112 -
Change in Employer's Proportion 901,014
Changes in assumptions 896,899
Difference between actual and expected experience 1,128,298 96,594 Difference between employer's actual contributions
and proportionate share of contributions 288,936 685,723 Totals $ 7,828,672 $ 782,317
The amounts above are net of outflows and inflows recognized in the 2022/23 measurement period expense. Contributions subsequent to the measurement date of $1,961,630 and $2,510,413, 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.
77

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 10 - Pension Plans (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
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
2025 $ 1,243,320 $ 1,565,153 $ 2,808,473
2026 827,293 1,101,520 1,928,813
2027 1,521,688 1,810,567 3,332,255
2028 52,438 58,702 111,140
2029 - - -
Thereafter - - -
Totals $ 3,644,739 $ 4,535,942 $ 8,180,681
Payable to the Pension Plan
The City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2024.

Note 11 - Other Required Disclosures
A. Deficit Equity Balances
As of June 30, 2024, there were no funds with deficit equity balances.

B. Expenditures Exceeding Appropriations
For the year ended June 30, 2024, expenditures exceeded appropriations in the following functions for the following:

Excess
Fund Function Expenditures
General Fund Capital outlay $ 419,901
Debt service: principal 624,614
Debt service: interest 13,156
Beaumont Financing Authority Debt service: principal 16,935 COPS Grant Fund Public Safety 32,491
Other Special Revenue Fund Interest 1,490
78

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
Note 11 - Other Required Disclosures
B. Expenditures Exceeding Appropriations (Continued)
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
Nonspendable:

Prepaid expenditures
Total nonspendable
Restricted
State Gas Tax
RMRA
Measure A
AB 2766
PEG Fees
Other Federal Grants
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
Major Funds
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
$ 42,305 $
42,305
$ 253,346 $ - $ 295,651
253,346 295,651
28,306,437 12,616,801
3,436,595
3,436,595
70,785,651
140,031
2,712,033
2,310,642
248,371
42,675
91,549
530,104
303,354
100,706
522,799
2,178,197
140,031
2,712,033
2,310,642
248,371
42,675
91,549
530,104
303,354
100,706
522,799
40,923,238
70,785,651
2,178,197
3,436,595
28,306,437 12,616,801
70,785,651
9,180, 461 124, 325, 945
Committed:

Capital Projects 3,865,000
Self Insurance 6,807,713
Pension Trust Funding -
Total Committed 10,672,713
51,057,567
54,922,567
6,807,713
51,057,567 - 61,730,280
Assigned:

Re -appropriation 1,318,631 - 1,318,631
Total Assigned 1,318,631 - - - - - 1,318,631
Unassigned 32,577,969 32,577,969
Total Fund Balances
$ 48,048,213 $ 28,306,437 $ 12,616,801 $ 51,057,567 $ 71,038,997 $ 9,180,461 $ 220,248,476 79

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2024, was determined as follows:

Governmental
Activities
Capital assets, net of accumulated depreciation $ 314,934,238 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 Plus capital related unspent proceeds
(1,015,051)
(148, 672)
(67,147, 636)
3,638,015
Net investment in capital assets $ 250,260,894
Business -type Activities
Business -type Activities
Total
Sewer Transit Enterprise
Fund Fund Funds
Capital assets, net of accumulated depreciation $ 187,127,614 $ 5,060,108 $ 192,187,722 Plus (less) capital related debt balance:

Capital related borrowings
Outstanding unamortized bond premium balance
Outstanding balance of lease liability
Outstanding balance of subscription liability
(74,785,000)
(6,084,194)
(109,094)
(15,852)
(5,465)
(74,785,000)
(6,084,194)
(109,094)
(21,317)
Net investment in capital assets $ 106,133,474 $ 5,054,643 $ 111,188,117 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. 80

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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, 2024 with a planned cost to complete of approximately $123,277,812.

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% *WRCOG'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
81

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2024
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
First $9,000,000
$9,000,001 - $12,000,000
$12,000,001 - $18,000,000
$18,000,001 and above
WRCOG City**
100% 0%
85% 15%
65% 35%
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, 2024, 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.

Note 14 - Correction of error
During the prior year, CFD debt issued was erroneously recorded in the City's Financing Authority.

June 30, 2023, as previously reported
Correction of error
Fund Financial
Statements
Beaumont
Financing Authority
$ 83,730,860
(8,800,000)
June 30, 2023, as restated $ 74,930,860
82

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Required Supplementary Information (Unaudited)

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CITY OF BEAUMONT
Budgetary Information
For the Year Ended June 30, 2024
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 Council. 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. 83

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CITY OF BEAUMONT
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes $ 39,350,462 $ 39,350,462 $ 39,902,359 $ 551,897
Franchise fees 3,299,914 3,299,914 3,347,040 47,126
Intergovernmental 7,717,772 7,717,772 7,768,111 50,339
License and permits 4,103,717 4,103,717 4,724,060 620,343 Fines and forfeitures 115,000 115,000 391,623 276,623
Assessments levied 957,344 957,344 753,376 (203,968)
Use of money and property 997,342 1,222,342 3,180,775 1,958,433 Charges for services 1,159,747 1,159,747 1,488,996 329,249 Other revenues 1,870,438 2,090,438 2,511,406 420,968
Total revenues 59,571,736 60,016,736 64,067,746 4,051,010 EXPENDITURES:

Current:

General government
City council 202,143 202,143 88,735 113,408
City clerk 459,449 570,909 483,378 87,531
Administration services 1,545,057 2,632,694 1,135,817 1,496,877 Finance and budget 1,942,334 1,962,456 1,757,321 205,135 Information Technology 1,798,922 1,950,151 1,615,635 334,516 HR / Risk Management 3,625,354 3,637,673 2,904,420 733,253 Legal 1,500,000 1,500,000 1,443,146 56,854
Communications 390,477 393,783 340,109 53,674
Nondepartmental 5,290,815 944,098 308,509 635,589
Public safety
Animal control 381,923 385,860 366,508 19,352
Office of Emergency 15,000 15,000 15,000
Police department 16,041,320 16,278,791 15,384,504 894,287 K-9 Unit 14,214 14,214 14,128 86
Police support 2,928,561 2,970,921 2,594,645 376,276
Fire 6,820,202 6,820,202 5,163,940 1,656,262
Nondepartmental 10,766 10,766 10,766 -
Public works
Public works 3,606,165 3,242,226 2,557,096 685,130
Street maintenance 2,720,618 2,793,354 2,564,847 228,507 Community development
Planning and community development 812,062 926,660 900,022 26,638 Community enhancement 362,525 399,185 381,201 17,984
Building and safety 1,544,181 1,596,179 1,238,886 357,293 Community development 1,207,540 1,947,582 827,410 1,120,172 Community services
Parks and recreation 1,899,199 1,929,035 1,647,812 281,223 Building maintenance 1,150,945 1,218,202 1,129,836 88,366 Parks and ground maintenance 5,427,070 5,874,349 4,786,577 1,087,772 Capital outlay 530,882 640,590 1,060,491 (419,901)
Debt service:

Principal - 624,614 (624,614)
Interest - 13,156 (13,156)
Total Expenditures 62,227,724 60,857,023 51,343,509 9,513,514

REVENUES OVER (UNDER)
EXPENDITURES (2,655,988) (840,287) 12,724,237 13,564,524 OTHER FINANCING SOURCES (USES):

Lease acquisition 578,440 578,440
Subscription acquistion - 173,241 173,241
Proceeds from sale of capital assets - 818 818
Transfers in 8,218,067 8,281,367 7,390,919 (890,448)
Transfers (out) (5,562,079) (15,066,312) (14,604,940) 461,372 Total other financing sources 2,655,988 (6,784,945) (6,461,522) 323,423 Net change in fund balance $ - $ (7,625,232) 6,262,715 $ 13,887,947 FUND BALANCE:

Beginning of year
End of year
41,785,498
$ 48,048,213
84

CITY OF BEAUMONT
Budgetary Comparison Schedule
Development Impact Fees (DIF) Special Revenue Fund
For the Year Ended June 30, 2024
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
$ 4,521,373 $ 4,521,373 $ 17,308,618 $ 12,787,245
257,200 257,200 1,778,465 1,521,265
4,778,573 4,778,573 19,087,083 14,308,510
4,778,573 4,778,573 19,087,083 14,308,510
OTHER FINANCING SOURCES (USES):

Transfers (out) (1,870,000) (39,640,752) (9,854,142) 29,786,610 Total other financing sources (uses) (1,870,000) (39,640,752) (9,854,142) 29,786,610 Net change in fund balance
FUND BALANCE:

Beginning of year
$ 2,908,573 $ (34,862,179) 9,232,941 $ 44,095,120
19,073,496
End of year $ 28,306,437
85

CITY OF BEAUMONT
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios
Last Ten Years
For the Year Ended June 30, 2024
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
6/30/2023
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%

0.22572%
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
11, 287, 003
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
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%
111.75%
Pension's Plans
Fiduciary Net
Position as a
Percentage of
the Total
Pension Liability

78.28%

78.45%

78.88%

76.93%

78.30%

78.16%

77.75%

90.19%

78.04%

77.35%
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. 86

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, 2024
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
6/30/2023
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%

0.20594%
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
15, 368, 042
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
6,360,725
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%
241.61%
Pension's Plans
Fiduciary Net
Position as a
Percentage of
the Total
Pension Liability

76.98%

77.95%

74.79%

73.93%

75.37%

75.68%

75.61%

89.10%

77.07%

75.82%
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 Survi ors Risk Pool. 87

CITY OF BEAUMONT
Schedule of Pension Plan Contributions
Last Ten Years
For the Year Ended June 30, 2024
Miscellaneous Plan
Contractually
Determined
Fiscal Year Contributions
Contribution in
Relation to the
Contractually
Determined
Contributions
Contribution
Deficiency
(Excess)
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 1,595,185 (1,595,185)
2021-22 1,667,472 (1,667,472)
2022-23 1,931,600 (1,931,600)
2023-24 1,961,630 (1,961,630)
Contributions as
a Percentage of
Em ployer's Covered
Covered Payroll Payroll
$ 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
11,642,973

17.79%

15.52%

16.78%

18.94%

22.23%

27.02%

19.50%

19.59%

19.13%

16.85%
'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.

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 only to 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. 88

CITY OF BEAUMONT
Schedule of Pension Plan Contributions (Continued)
Last Ten Years
For the Year Ended June 30, 2024
Safety Plan
Contractually
Determined
Fiscal Year Contributions
Contribution in
Relation to the
Contractually
Determ ined
Contributions
Contribution
Deficiency
(Excess)
2014-15 $ 1,356,940 $ (1,356,940) $
2015-16 1,181,118 (1,181,118)
2016-17 1,281,860 (1,281,860)
2017-18 1,402,549 (1,402,549)
2018-19 1,645,661 (1,645,661)
2019-20 1,838,564 (1,838,564)
2020-21 1,751,746 (1,751,746)
2021-22 1,921,364 (1,921,364)
2022-23 2,312,019 (2,312,019)
2023-24 2,510,413 (2,510,413)
Contributions as
a Percentage of
Employer's Covered
Covered Payroll Payroll
$ 4,134,515
3,613,896
3,722,313
3,862,606
3,978,484
3,676,631
4,334,892
5,303,955
6,360,725
6,886,421

32.82%

32.68%

34.44%

36.31%

41.36%

50.01%

40.41%

36.23%

36.35%

36.45%
'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.

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 only to 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. 89

Supplementary Information

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Major Governmental Funds
Budgetary Comparison Schedule

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CITY OF BEAUMONT
Major Governmental Fund Budgetary Comparison Schedule
Community Facilities District (CFD) - Capital Projects Fund For the Year Ended June 30, 2024
REVENUES:

Assessments levied
Use of money and property
Total revenues

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
Original Final
Actual
Amounts
Variance with
Final Budget
$ 1,058,869 $ 1,058,869 $ 7,593 $ (1,051,276)
- - 576,503 576,503
1,058,869
1,058,869
1,058,869
1,058,869
(2,800,000) (11,457,092)
(2,800,000) (11,457,092)
$ (1,741,131) $ (10,398,223)
584,096
584,096
(474,773)
(474,773)
(1,181,609) 10,275,483
(1,181,609) 10,275,483
(597,513) $ 9,800,710
13,214,314
$ 12,616,801
90

CITY OF BEAUMONT
Major Governmental Fund Budgetary Comparison Schedule
General Capital Projects - Capital Projects Fund
For the Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental $ 3,250,000 $ 54,702,584 $ 554,482 $ (54,148,102) Use of money and property - 1,792,374 1,792,374
Other revenues - 1,940,087 1,940,087
Total revenues 3,250,000 54,702,584 4,286,943 (50,415,641) EXPENDITURES:

Capital outlay 15,679,719 123,277,812 22,561,759 100,716,053 Total Expenditures 15,679,719 123,277,812 22,561,759 100,716,053

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Transfers in
(12,429,719) (68,575,228) (18,274,816) 50,300,412
12,429,719 69,467,538 30,230,765 (39,236,773)
Total other financing sources 12,429,719 69,467,538 30,230,765 (39,236,773) Net change in fund balance $ $ 892,310 11,955,949 $ 11,063,639 FUND BALANCE:

Beginning of year 39,101,618
End of year $ 51,057,567
91

CITY OF BEAUMONT
Major Governmental Fund Budgetary Comparison Schedule
Beaumont Financing Authority — Debt Service Fund
For the Year Ended June 30, 2024
REVENUES:

Use of money and property
Total revenues
EXPENDITURES:

Debt service:

Principal
Interest, fiscal, and other charges
Total Expenditures

REVENUES OVER (UNDER)

EXPENDITURES
Net change in fund balance
FUND BALANCE:

Beginning of year, restated
End of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
$ 6,104,192 $ 6,104,192 $ 2,402,880 $ (3,701,312)
6,104,192 6,104,192 2,402,880 (3,701,312)
3,955,000
2,149,192
6,104,192
$
3,975,600
2,302,208
6,277,808
(173,616)
$ (173,616)
3,975,600
2,319,143
6,294,743
(16,935)
(16,935)
(3,891,863) (3,718,247)
(3,891,863) $ (3,718,247)
74,930,860
$ 71,038,997
92

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Non -Major Governmental Funds
Combining Schedules

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CITY OF BEAUMONT
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2024
Special Revenue Funds
Road Maintenance
State Gas and Rehabilitation Measure A AB 2766
Tax Fund Act Fund Fund Fund
ASSETS
Cash and investments $ 5,954 $ 2,594,235 $ 2,143,675 $ 248,371 Receivables:

Accounts -
Due from other governments 134,077 117,798 166,967
Total assets $ 140,031 $ 2,712,033 $ 2,310,642 $ 248,371

LIABILITIES AND FUND BALANCES
Liabilities:

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

Unavailable revenue
Total deferred inflows of resources
$
$
$ $
Fund Balances (deficit):

Restricted 140,031 2,712,033 2,310,642 248,371
Total fund balances 140,031 2,712,033 2,310,642 248,371 Total liabilities and fund balances $ 140,031 $ 2,712,033 $ 2,310,642 $ 248,371 93

CITY OF BEAUMONT
Combining Balance Sheet (Continued)
Non -Major Governmental Funds
June 30, 2024
Special Revenue Funds
Other Federal COPS State
PEG Fees Grants Grant Asset Seizure
Fund Fund Fund Fund
ASSETS
Cash and investments $ 39,684 $ 3,759,486 $ 546,771 $ 337,477 Receivables:

Accounts 2,991
Due from other governments - 190,753 - -
Total assets $ 42,675 $ 3,950,239 $ 546,771 $ 337,477

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $
Deposits payable -
Unearned revenue - 3,858,690 16,667
Total liabilities - 3,858,690 16,667
Deferred Inflows of Resources:

Unavailable revenue
Total deferred inflows of resources
34,123
34,123
Fund Balances (deficit):

Restricted 42,675 91,549 530,104 303,354
Total fund balances 42,675 91,549 530,104 303,354
Total liabilities and fund balances $ 42,675 $ 3,950,239 $ 546,771 $ 337,477 94

CITY OF BEAUMONT
Combining Balance Sheet (Concluded)
Non -Major Governmental Funds
June 30, 2024
Special Revenue Funds
Federal Other Total Other
Asset Seizure Special Revenue Community Facilities Governmental Fund Fund District (CFD) Funds
ASSETS
Cash and investments $ 100,706 $ 587,980 $ 2,195,655 $ 12,559,994 Receivables:

Accounts 5,611 - 8,602
Due from other governments - - 68,237 677,832
Total assets $ 100,706 $ 593,591 $ 2,263,892 $ 13,246,428

LIABILITIES AND FUND BALANCES
Liabilities:

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

Unavailable revenue
Total deferred inflows of resources
$ 10,930 $ - $ 10,930
85,695 85,695
59,862 - 3,969,342
70,792 85,695 4,065,967
Fund Balances (deficit):

Restricted 100,706 522,799 2,178,197 9,180,461
Total fund balances 100,706 522,799 2,178,197 9,180,461 Total liabilities and fund balances $ 100,706 $ 593,591 $ 2,263,892 $ 13,246,428 95

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CITY OF BEAUMONT
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non -Major Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
Road Maintenance
State Gas and Rehabilitation Measure A AB 2766
Tax Fund Act Fund Fund Fund
REVENUES:

Taxes $ - $ $ 936,622 $ -
Intergovernmental 1,674,027 1,427,990 - 57,082
License and permits - -
Use of money and property 33,025 72,045 106,919 10,324
Other revenues - 25 - -
Total revenues 1,707,052
1,500,060 1,043,541 67,406
EXPENDITURES:

Current:

General Government 25 -
Public safety - - 86,820
Community development - - -
Community services - - -
Total expenditures
25 - 86,820

REVENUES OVER
(UNDER) EXPENDITURES 1,707,027
OTHER FINANCING SOURCES (USES):

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

Beginning of year
End of year
1,500,060 1,043,541 (19,414)
(1,566,996) (1,117,898) (1,628,879)
(1,566,996) (1,117,898) (1,628,879) -
140,031 382,162 (585,338) (19,414)
2,329,871 2,895,980 267,785
$ 140,031 $ 2,712,033 $ 2,310,642 $ 248,371
96

CITY OF BEAUMONT
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Non -Major Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
Other Federal COPS State
PEG Fees Grants Grant Asset Seizure
Fund Fund Fund Fund
REVENUES:

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

Current:

General Government
Public safety
Community development
Community services
$ $ $ - $
- 1,294,558 169,492
9,964 - -
1, 587 113,831 22,461 8,982
- 41,322 - -
11,551 1,449,711 191,953 8,982
4,588
15,919 146,958 25
Total expenditures 4,588 15,919 146,958 25

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

Transfers in
Transfers (out) (934,259) (38,677)
Total other financing sources (uses) (934,259) (38,677) 6,963 1,433,792 44,995 8,957
Net changes in fund balances 6,963 499,533 6,318
FUND BALANCES (DEFICIT):

Beginning of year
End of year
8,957
35,712 (407,984) 523,786 294,397
$ 42,675 $ 91,549 $ 530,104 $ 303,354
97

CITY OF BEAUMONT
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Concluded)
Non -Major Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
Federal Other Total Other
Asset Seizure Special Revenue Community Facilities Governmental Fund Fund District (CFD) Funds
REVENUES:

Taxes $ - $ $ 7,548,325 $ 8,484,947
Intergovernmental 37,050 182,800 4,842,999
License and permits 10,165 20,129
Use of money and property 3,937 12,504 94,286 479,901
Other revenues - 57,931 99,278
Total revenues
EXPENDITURES:

Current:

General Government
Public safety
Community development
Community services
Total expenditures

REVENUES OVER
(UNDER) EXPENDITURES
40,987 263,400 7,642,611 13,927,254
100,441
40,804
1,490
297,310
4,613
350,163
338,114
1,490
142,735 297,310 694,380
40,987 120,665 7,345,301 13,232,874
OTHER FINANCING SOURCES (USES):

Transfers in - 401,567 401,567
Transfers (out) - (7,108) (7,166,106) (12,459,923)
Total other financing sources (uses) - (7,108) (6,764,539) (12,058,356) Net changes in fund balances 40,987 113,557 580,762 1,174,518 FUND BALANCES (DEFICIT):

Beginning of year
End of year
59,719 409,242 1,597,435 8,005,943
$ 100,706 $ 522,799 $ 2,178,197 $ 9,180,461
98

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Non -Major Governmental
Budgetary Comparison Schedules

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CITY OF BEAUMONT
Budgetary Comparison Schedule
State Gas Tax Fund
For the Year Ended June 30, 2024
REVENUES:

Intergovernmental
Use of money and property
Total revenues
EXPENDITURES:

Current:

General Government
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
Original Final
Actual
Amounts
Variance with
Final Budget
$ 1,565,996 $ 1,565,996 $ 1,674,027 $ 108,031
1,000 1,000 33,025 32,025
1,566,996
5,290,815
5,290,815
(3,723,819)
(1,566,996)
(1,566,996)
1,566,996
944,098
944,098
622,898
(1,566, 996)
(1,566, 996)
$ (5,290,815) $ (944,098)
1,707,052
25 25
1,707,027
(1,566,996)
(1,566,996)
140,056
944,073
944,073
1,084,129
140,031 $ 1,084,129
$ 140,031
99

CITY OF BEAUMONT
Budgetary Comparison Schedule
Road Maintenance and Rehabilitation Act Fund
For the Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental $ 1,351,950 $ 1,351,950 $ 1,427,990 $ 76,040 Use of money and property 2,000 2,000 72,045 70,045
Other - - 25 25
Total revenues 1,353,950 1,353,950 1,500,060 146,110
EXPENDITURES:

Current:

General government
Total Expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Transfers (out)
1,353,950 1,353,950
1,500,060 146,110
(900,840) (2,018,738) (1,117,898) 900,840
Total other financing sources (900,840) (2,018,738) (1,117,898) 900,840 Net change in fund balance $ 453,110 $ (664,788) 382,162 $ 1,046,950 FUND BALANCE:

Beginning of year 2,329,871
End of year $ 2,712,033
100

CITY OF BEAUMONT
Budgetary Comparison Schedule
Measure A Fund
For the Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes $ 733,600 $ 733,600 $ 936,622 $ 203,022
Use of money and property 10,000 10,000 106,919 96,919
Total revenues 743,600 743,600 1,043,541 299,941

REVENUES OVER (UNDER)
EXPENDITURES 743,600 743,600 1,043,541 299,941
OTHER FINANCING SOURCES (USES):

Transfers (out)
(616,800) (2,264,528) (1,628,879) 635,649
Total other financing sources (616,800) (2,264,528) (1,628,879) 635,649 Net change in fund balance $ 126,800 $ (1,520,928) (585,338) $ 935,590 FUND BALANCE:

Beginning of year 2,895,980
End of year $ 2,310,642
101

CITY OF BEAUMONT
Budgetary Comparison Schedule
AB 2766 Fund
For the Year Ended June 30, 2024
REVENUES:

Intergovernmental
Use of money and property
Total revenues
EXPENDITURES:

Current:

Public safety
Total Expenditures
Net change in fund balance
FUND BALANCE:

Beginning of year
End of year
Budgeted Amounts
Original Final
$ 67,800
4,500
72,300
$ 72,300
Actual
Amounts
$ 67,800 $
4,500
72,300
90,000
90,000
$ (17,700)
Variance with
Final Budget
57,082 $ (10,718)
10,324 5,824
67,406
(4,894)
86,820 3,180
86,820 3,180
(19,414) $ (1,714)
267,785
$ 248,371
102

CITY OF BEAUMONT
Budgetary Comparison Schedule
PEG Fees Fund
For the Year Ended June 30, 2024
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
$ 18,738 $
500
19,238
12,000
2,630
14,630
4,608
Actual
Amounts
18,738 $ 9,964
500 1,587
19,238 11,551
12,000
2,630
14,630
4,608
$ 4,608 $
4,608
Variance with
Final Budget
$ (8,774)
1,087
(7,687)
4,588 7,412
- 2,630
4,588 10,042
6,963 2,355
6,963 $ 2,355
35,712
$ 42,675
103

CITY OF BEAUMONT
Budgetary Comparison Schedule
Other Federal Grants Fund
For the Year Ended June 30, 2024
REVENUES:

Intergovernmental
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 (DEFICIT):

Beginning of year
End of year
Budgeted Amounts
Original Final
Actual
Amounts
$ 2,430,000 $ 4,120,150 $ 1,294,558
- 113,831
63,300 41,322
2,430,000
2,430,000
(2,476,343)
(2,476,343)
4,183,450
55,160
1,401, 990
1,457,150
2,726,300
1,449, 711
15,919
15,919
1,433, 792
Variance with
Final Budget
$ (2,825,592)
113,831
(21,978)
(2,733,739)
39,241
1,401,990
1,441,231
(1,292,508)
(3,524,431) (934,259) 2,590,172
(3,524,431) (934,259) 2,590,172
$ (46,343) $ (798,131)
499,533 $ 1,297,664
(407,984)
$ 91,549
104

CITY OF BEAUMONT
Budgetary Comparison Schedule
COPS Grant Fund
For the Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental $ 150,000 $ 150,000 $ 169,492 $ 19,492 Use of money and property 9,459 9,459 22,461 13,002
Total revenues 159,459 159,459 191,953 32,494
EXPENDITURES:

Current:

Public safety
Total Expenditures

REVENUES OVER (UNDER)

EXPENDITURES
114,467
114,467
146,958 (32,491)
146,958 (32,491)
159,459 44,992 44,995 3
OTHER FINANCING SOURCES (USES):

Transfers (out) (71,168) (71,168) (38,677) 32,491
Total other financing sources (71,168) (71,168) (38,677) 32,491 Net change in fund balance $ 88,291 $ (26,176) 6,318 $ 32,494 FUND BALANCE:

Beginning of year 523,786
End of year $ 530,104
105

CITY OF BEAUMONT
Budgetary Comparison Schedule
State Asset Seizure Fund
For the Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property $ - $ $ 8,982 $ 8,982
Total revenues - 8,982 8,982
EXPENDITURES:

Current:

Public safety 25 25
Total Expenditures - 25 25

REVENUES OVER (UNDER)
EXPENDITURES (25) 8,957 8,982
Net change in fund balance $ - $ (25) 8,957 $ 8,982
FUND BALANCE:

Beginning of year 294,397
End of year $ 303,354
106

CITY OF BEAUMONT
Budgetary Comparison Schedule
Other Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental $ 5,000 $ 75,000 $ 182,800 $ 107,800
License and permits - 10,165 10,165
Use of money and property - 12,504 12,504
Other revenues 47,839 47,839 57,931 10,092
Total revenues 52,839 122,839 263,400 140,561
EXPENDITURES:

Current:

Public safety 13,225 194,172 100,441 93,731
Community development 25,400 63,400 40,804 22,596
Community service - - 1,490 (1,490)
Total Expenditures 38,625 257,572 142,735 114,837

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
14,214 (134,733) 120,665 255,398
(14,214) (14,214) (7,108) 7,106
(14,214) (14,214) (7,108) 7,106
$
- $ (148,947) 113,557 $ 262,504
409,242
$ 522,799
107

CITY OF BEAUMONT
Budgetary Comparison Schedule
Community Facilities Districts (CFD)
For the Year Ended June 30, 2024
REVENUES:

Taxes
Use of money and property
Total revenues
EXPENDITURES:

Current:

Community development
Total Expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

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

Beginning of year
End of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
$ 6,839,347 $ 6,839,347 $ 7,548,325 $ 708,978
6,839,347
320,001
320,001
6,519,346
- 94,286
6,839,347
320,001
320,001
6,519,346
7,642,611
297,310
297,310
7,345,301
401,567
(7,069,346) (7,715,913) (7,166,106)
(7,069,346)
(7,715,913) (6,764,539)
$ (550,000) $ (1,196,567)
94,286
803,264
22,691
22,691
825,955
401,567
549,807
951,374
580,762 $ 1,777,329
1,597,435
$ 2,178,197
108

Fiduciary Funds

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CITY OF BEAUMONT
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2024
ASSETS
Cash and investments
Cash and investments with fiscal agent
Due from other governments
Total assets
Community
Facilities Evidence
District Collection Fund
Total
$ 1,648,898 $ 80,513 $ 1,729,411
41,832,143 41, 832,143
210,347 210,347
43,691,388 80,513 43,771,901

LIABILITIES
Interest payable 2,398,000 2,398,000
Unearned revenue 10,803 10,803
Deposits payable 47,862 47,862
Due to other governments 67,147,636 - 67,147,636
Due to bondholders 179,486,666 179,486,666
Total liabilities 249,032,302 58,665 249,090,967
Net Position (deficit)
Restricted for:

Individuals, organizations and other governments
Total net position
(205,340,914)
21,848 (205,319,066)
$ (205,340,914) $ 21,848 $ (205,319,066)
109

CITY OF BEAUMONT
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2024
Community
Facilities Evidence
District Collection Fund
Total
ADDITIONS:

Investment Income $ 1,335,399 $ 973 $ 1,336,372
Assessments 21,848,509 18,430 21,866,939
Bond proceeds 9,474,799 - 9,474,799
Total additions 32,658,707 19,403 32,678,110
DEDUCTIONS:

Administration 983,350 983,350
Payments to trustee 8,037,567 - 8,037,567
Interest expense 8,730,981 27 8,731,008
Bond proceeds to developer 15,485,019 15,485,019
Payment for infrastructure 1,940,086 - 1,940,086
Total deductions 35,177,003 27 35,177,030
Change in net position
NET POSITION (DEFICIT:

Beginning of year
(2,518,296) 19,376 (2,498,920)
(202,822,618) 2,472 (202,820,146)
End of year $ (205,340,914) $ 21,848 $(205,319,066)
110

Statistical Section

CITY OF BEAUMONT
Net Position by Component
Last Ten (10) Fiscal Years
(accrual basis of accounting)
Fiscal Year
2015
2016
2017
2018
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
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
$
32, 785, 514
(89, 979, 209)
$ (57,193,695)
$
48,232,914
(22, 231, 046)
$ 26,001,868
$ 41,036,317
253,984,801
(13, 630, 302)
$ 281,390,816
$ 161,035,919
133, 927, 879
(7,563,390)
$ 287,400,408
$ 52,039,617 $ 50,742,754 $ 127,028,681 $ 124,163,481
(2,786,155)
897,094
2,246,526
9,681,229
$ 49,253,462 $ 51,639,848 $ 129,275,207 $ 133,844,710
$ 52,039,617 $ 50,742,754 $ 168,064,998
32,785,514 48,232,914 253,984,801
(92,765,364) (21,333,952) (11,383,776)
$ (7,940,233) $ 77,641,716 $ 410,666,023
Source: City of Beaumont Finance Department Audited Financial Statements $ 285,199,400
133, 927, 879
2,117, 839
$ 421, 245,118
111

2019 2020 2021 2022 2023 2024
$ 180,996,750 $ 191,989,902 $ 199,529,502 $ 210,229,919 $ 212,055,056 $ 250,260,894 125,918,630 118,674,754 121,676,799 121,976,580 165,793,250 171,745,497 457,794 7,180,682 12,223,595 39,194,558 29,690,983 32,690,032 $ 307, 373,174 $ 317, 845, 338 $ 333, 429, 896 $ 371,401, 057 $ 407, 539, 289 $ 454, 696, 423 $ 134,524,431 $ 137,744,251 $ 134,777,249 $ 134,350,805 $ 110,914,301 $ 111,188,117 - 595,399 757,246 12,860,020 12,860,020
(475, 808) 4,609,395 3,069,283 11,180, 846 6,878,345 8,510,490 $ 134,048,623 $ 142,353,646 $ 138,441,931 $ 146,288,897 $ 130,652,666 $ 132,558,627 $ 315,521,181 $ 329,734,153 $ 334,306,751 $ 344,580,724 $ 322,969,357 $ 361,449,011 125, 918, 630 118, 674, 754 122, 272,198 122, 733, 826 178, 653, 270 184, 605, 517 (18,014) 11,790,077 15,292,878 50,375,404 36,569,328 41,200,522 $ 441,421,797 $ 460,198,984 $ 471,871,827 $ 517,689,954 $ 538,191,955 $ 587,255,050 112

CITY OF BEAUMONT
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting)
Fiscal Year
2015 2016 2017 2018
Expenses
Governmental activities:

General govemment $ 7,309,913 $ 3,397,331 $ 7,593,312 $ 5,356,762 Public safety 13,414,301 11,236,896 13,526,022 18,969,972 Public works 1,552,407 1,976,427 5,030,993 5,563,653
Community development 1,914,356 1,367,789 4,441,655 2,431,640 Community services 4,880,614 3,050,603 2,528,668 3,478,806 Refuse 4,144,778 4,138,062 4,239,048 4,899,889
Pass -through payments - - -
Interest on long-term debt 2,660,836 10,369,211 7,181,818 Total governmental activities expenses 35,877,205 25,167,108 47,728,909 47,882,540 Business -type activities:

Sewer 7,986,837 6,043,880 11,192,584 10,430,002
Transit 2,211,872 2,478,621 2,990,218 3,119,254
Total business -type activities expenses 10,198,709 8,522,501 14,182,802 13,549,256 Total primary government expenses $ 46,075,914 $ 33,689,609 $ 61,911,711 $ 61,431,796 Program Revenues
Governmental activities:

Charges for senvices
Operating grants
Capital grants
Total governmental activities program revenues
Business -type activities:

Charges for services
Operating grants
Capital Grants
Total business -type activities program revenues
Total primary government revenues
Net (expense)/revenue
Governmental activities
Business -type activities
Total primary government net (expense)/revenue
$ 9,855,807 $ 9,561,023 $ 15,939,510 $ 15,749,036
6,337,968 9,449,166 286,368 77,514
4,364,103 5,304,634 12,450,382 20,409,806
$ 20,557,878 $ 24,314,823 28,676,260 36,236,356
8,021,109
1,847,564
10,445
7,362,793
2,063,600
1,479,942
7,644,407 8,282,833
2,262,277 2,347,256
473,715 6,171,672
$ 9,879,118 $ 10,906,335 10,380,399 16,801,761
$ 30,436, 996 $ 35, 221,158 $ 39, 056, 659 $ 53, 038,117 $ (15,319,327) $ (852,285) $ (19,052,649) $ (11,646,184) (319,591) 2,383,834 (3,802,403) 3,252,505
$ (15,638,918) $ 1,531,549 $ (22,855,052) $ (8,393,679) Source: City of Beaumont Finance Department Audited Financial Statements 113

2019 2020 2021 2022 2023 2024
$ 6,010,855 $ 6,387,414 $ 10,322,019 $ 4,089,581 $ 10,642,725 $ 9,732,268 15,641,308 17,326,496 17,896,367 18,852,535 23,317,103 23,792,153 8,536,946 4,051,200 8,738,889 4,337,784 9,863,014 10,238,467 2,396,300 2,203,993 2,109,290 2,431,610 3,201,954 2,773,721 3,840,603 4,805,108 4,567,596 2,513,365 4,987,703 7,612,112 5,504,512 - - -
4,415,612 4,980,043 4,742,632 4,965,899 2,563,737 3,263,298 46,346,136 39,754,254 48,376,793 37,190,774 54,576,236 57,412,019 14,993,895 15,084,760 16,480,072 17,596,817 16,398,348 18,723,090 3,353,923 3,260,924 3,103,538 3,047,754 2,864,795 3,392,642 18,347,818 18,345,684 19,583,610 20,644,571 19,263,143 22,115,732 $ 64,693,954 $ 58,099,938 $ 67,960,403 $ 57,835,345 $ 73,839,379 $ 79,527,751 $ 13,488,153 $ 6,004,874 $ 6,223,772 $ 8,436,192 $ 9,460,209 $ 9,192,525 884,195 1,626,798 4,116,354 1,613,280 4,911,820 5,881,405 17,527,025 8,773,350 16,582,075 16,403,235 15,864,191 25,432,148 31,899,373 16,405,022 26,922,201 26,452,707 30,236,220 40,506,078 8,993,637 10,697,882
2,557,412 3,228,349
1,575,041 7,334,406
10,955,015
2,251,555
1,852,603
15,059,173 28,161,792
23,592,883
2,687,154
1,881,755
20,773,380
2,500,157
2,081,261
25,354,798 22,544,928
17,009,304
3,866,942
1,668,682
13,126,090 21,260,637
$ 45,025,463 $ 37,665,659 $ 41,981,374 $ 54,614,499 $ 55,591,018 $ 63,051,006 $ (14,446,763) $ (23,349,232) $ (21,454,592) $ (10,738,067) $ (24,340,016) $ (16,905,941) (5,221,728) 2,914,953 (4,524,437) 7,517,221 6,091,655 429,196 $ (19,668,491) $ (20,434,279) $ (25,979,029) $ (3,220,846) $ (18,248,361) $ (16,476,745) 114

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 2015 2016 2017 2018
Government activities:

Taxes
Property taxes/in-lieu $ 3,894,320 $ 3,762,290 $ 4,852,263 $ 5,199,098 Sales taxes 4,209,246 4,966,331 4,851,947 5,631,332
Vehicle in lieu tax 3,244,340 3,506,871 3,768,042 4,125,662 Utility Users Tax 1,373,661 1,804,096 1,545,893 1,524,158 Franchise tax 944,869 929,261 805,244 3,285,697
Transient occupancy tax 224,705 283,999 325,874 363,868 Other taxes 209,124 77,163 880,255 1,194,389
Business Licenses 196,185 231,688 247,193
Transfers 322
Total taxes and transfers 14,100,265 15,526,196 17,261,206 21,571,719 Construction bond proceeds -
Developer Contributions - - 11,343,940
Investment Eamings 129,837 13,232 10,490,307 7,851,992
Miscellaneous 156,283 359,206 55,710 355,360
Other revenue - - -
Gain (Loss) on sale of capital assets - 42,237 5,341
Total governmental activities 14,386,385 15,898,634 27,849,460 41,128,352 Business -type activities:

Investment Eamings
Developer Contributions
Miscellaneous
Mitigation Fees
Transfers
Gain (Loss) on sale of capital assets
Total business -type activities
Total primary govemment
4,267 2,552 4,475 13,606
778,223
30 525,491
(322)
4,267 2,552 4,505 1,316,998
$ 14,390,652 $ 15,901,186 $ 27,853,965 $ 42,445,350
Extraordinary Items (Governmental Activities)
Write off of advance receivable $ (21,500,000) $ $ - $
Settlement - restitution - 3,000,000 -
Refunding CFD 93-01 - (11,947,642)
Successor Agency debt reversal 4,235,674 -
Gain on advance from city write off - - -
Gain on transfer of assets and liabilities to RDA Successor Agency - WRCOG judgement settlement 58,098,626
Total primary government $ (21,500,000) $ 62,334,300 $ 3,000,000 $ (11,947,642) Change in Net Position
Governmental activities
Business -type activities
Total primary government
$ (22,432,942) $ 77,380,649 $ 11,796,811 $ 17,534,526
(315,324) 2,386,386 (3,797,898) 4,569,503
$ (22,748,266) $ 79,767,035 $ 7,998,913 $ 22,104,029
Source: City of Beaumont Finance Department Audited Financial Statements 115

2019 2020 2021 2022 2023 2024
$ 5,656,662 $ 11,107,476 $ 12,701,479 $ 13,256,331 $ 14,884,970 $ 15,500,214 6,596,935 7,593,729 8,869,746 26,869,849 28,509,903 30,085,425 4,517,090 38,307 37,754 60,866 56,058 69,901
1,584,224 1,650,094 1,887,031 2,058,730 2,701,744 2,549,379 3,908,531 8,074,504 3,183,803 3,164,944 3,253,677 3,347,040 335,304 278,504 298,879 422,087 432,921 397,343
958,614 676,180 972,981 753,376
294,968 342,702 415,229 350,142 381,453 430,052
(3,120,964) 239,958 (254,358) (615,736) (77,363)
20,731,364 29,085,316 27,633,879 46,604,771 50,577,971 53,055,367 - 233,922
9,055,054 4,001,607
5,390,216 4,230,375 4,618,626
716,944 472,274 526,724
52,377 33,431 24,392
1,157, 022
657,208
51,186
5,238,845
4,513,689
147,743
10,445,726
561,982
35,945,955 33,821,396 37,039,150
48, 470,187
60,478,248 64,063,075
1,564,220 565,390 57,721
731,125
3,393 5,242 13,719
4,819,408 1,123,349
3,120,964 (239,958)
5,939 30
(1,131,442) 637,558 1,038,707
1,206,829 23,790 360,695
11,278,753
254,358 615,736 77,363
- (23,004,970)
5,425,641 5,390,070 954,831
11,608,498 (21,727,886) 1,476,765
$ 41,371,596 $ 39,211,466 $ 37,993,981 $ 60,078,685 $ 38,750,362 $ 65,539,840 $
$ - $ - $ - $ - $
$
21,499,192 $ 10,472,164
203,913 8,305,023
$ $ $ $
15, 584, 558 $ 37, 732,120 $ 36,138, 232 $ 47,157,134
(3,569,606) 19,125,719 (15,636,231) 1,905,961
$ 21, 703,105 $ 18, 777,187
12,014,952 $ 56,857,839 $ 20,502,001 $ 49,063,095
116

CITY OF BEAUMONT
Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2015 2016 2017 2018
General fund
Non Spendable:

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

Capital Projects
Self Insurance
Pension Trust Funding
Assigned for:

Re -appropriation
Unassigned
$ 249,493 $ 226,186 $ 213,399 $ 215,904
(7,438,424) (4,296,822)
Total general fund (7,188,931)
All other governmental funds
Prepaid items
Sewer capacity rights
Restricted for:

CFD Projects
Capital Projects
Streets Projects
Public Safety
PEG Fees
State Gas Tax
AB 2766
RMRA
Measure A
Other Special Projects
COPS Grants
State Asset Forfeiture
Federal Asset Forfeiture
Other Federal Grants
Debt service
Committed for:

Capital Projects
Unassigned
Total all other governmental funds
6,839,275 6,839,275
5,034,141 10, 315,492
(4,070,636)
12,086,815 17,370,671
$ - $
22,748,722 32,867,745
8,763,649 13, 967, 685
708,507 684,297
422,142 550,410
142,494 162,777
8,424,392
25,157, 602
688,820
219,517
357,051
306,698
981
8,462,228
15, 683, 985
788,141
250,014
263,369
370,379
90,333
223, 515, 398 101,180,155
32,785,514 48,232,914
258, 670, 459 127, 088, 604
Total fund balance all governmental funds $ 25,596,583 $ 44,162,278 $ 270,757,274 $ 144,459,275 Source: City of Beaumont Finance Department Audited Financial Statements 117

2019 2020 2021 2022 2023 2024
$ 220,634 $ 224,671 $ 225,715 $ - $ $ -
83,141 26,262 61,292 244,171 42,305
- 2,344,101 2,529,271 3,436,595
4,550,000 - 3,865,000
2,850,717 2,154,152 6,329,219 6,807,713
2,500,000
214,799 796,780 2,216,918 1,318,631
14, 980, 384 19, 290, 503 17, 576, 741 40, 317,103 30, 465, 919 32, 577, 969 15,284,159 24,065,174 23,394,234 45,673,428 41,785,498 48,048,213 $ $ $ 304,015 $ 287,125 $ 270,236 $ 253,346
9,145,832 9,036,520 5,884,930 2,274,176 1,597,435 2,178,197 12,877,575 13,336,436 13,674,329 24,136,095 32,287,810 40,923,238 1,110,144 664,780 - -
1,542,017 21,482 23,675 27,707 35,712 42,675
103,421 159,101 69,599 140,031
1,102, 061 474,841 621,930 343,995 267,785 248,371
551,820 1,437,670 1,117, 898 2,329,871 2,712,033
1,348,379 2,568,801 1,955,121 2,895,980 2,310,642
305,975 163,173 183,807 320,425 409,242 522,799
313,341 452,899 523,786 530,104
295,014 295,024 294,397 303,354
6,030 6,036 59,719 100,706
- 91,549
98,006,000 92,767,025 85,876,699 80,287,587 74,660,624 70,785,651 1,417,617 666,248
125, 610, 642 119, 030, 704
10,631,472 8,345,917
(84,997) (180,661)
121, 895, 817 119, 738, 943
39,101, 618
(407, 984)
51, 057, 567
154, 326, 231 172, 200, 263
$ 140,894,801 $ 143,095,878 $ 145,290,051 $ 165,412,371 $ 196,111,729 $ 220,248,476 118

CITY OF BEAUMONT
Changes in Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2015 2016 2017 2018
Revenues
Taxes $ 19,240,888 $ 29,927,330 $ 11,027,239 $ 12,163,969 Franchise fees - - 3,285,697
Intergovernmental revenues 297,016 29,788 5,787,280 11,263,234 Licenses, fees and permits 1,201,320 1,360,288 10,781,152 13,283,260 Fines and forfeitures 350,287 413,052 265,831 262,278
Assessment levied 9,309,555 9,240,825
Use of money and property 129,834 148,419 10,613,015 8,023,202 Charges for services 12,400,655 7,913,344 8,355,018 7,754,417 Other revenues 979,582 545,313 377,102 872,752
Interfund charges - - - -
Total Revenues 34,599,582 40,337,534 56,516,192 66,149,634 Expenditures
General government
Public safety
Public works
Community development
Community services
Refuse
Capital outlay
Debt service:

Principal
Refunding escrow agent
Interest, fiscal, and other charges
Total Expenditures
Excess of revenues over (under) expenditures
4,969,209
13, 585, 249
1,552,407
1,914,356
4,880,614
4,144, 778
4,735,084
12,318,788
1,976,427
1,367,789
3,050,603
4,138, 062
31,046,613 27,586,753
3,552,969 12, 750, 781
5,464,863 4,434,173
12, 524, 089 12, 956, 345
2,902,986 3,161,648
4,295,350 2,000,866
2,396,166 3,070,774
4,239,048 4,899,889
188,738 13,194, 674
6,167,352 118,212,977
10,369,211 7,181,818
48, 547, 803 169,113,164
7,968,389 (102,963,530)
Other Financing Sources (Uses)
Subscription acquisition - -
Lease acquisition 96,158 132,444
Proceeds from the sale of capital assets 42,237 5,341
Refunding bonds issued - - -
Premium on refunding bonds issued
Payment to refunded bond escrow agent - - -
Proceeds from bonds issued - - -
Developer contributions - - -
Transfers in - 11,280 22,007,107 14,209,907
Transfers out - (11,280) (22,007,107) (14,209,585)
Total Other Financing Sources (Uses) - 138,395 138,107
Net Change in Fund Balances Before Extraordinary Item 3,552,969 12,750,781 8,106,784 (102,825,423) Extraordinary Item (21,500,000) - -
Special Item - 3,000,000 (11,947,642)
Net Change in Fund Balances $ (17,947,031) $ 12,750,781 $ 11,106,784 $ (114,773,065) Debt Service as a percentage of
non -capital expenditures

0.0% 0.0% 52.0% 410.8%
Source: City of Beaumont Finance Department Audited Financial Statements 119

2019 2020 2021 2022 2023 2024
$ 13,570,476 $ 14,996,887 $ 17,410,049 $ 36,366,045 $ 46,222,206 $ 48,387,306 3,908,531 8,074,504 3,183,803 3,164,944 3,253,677 3,347,040 11, 581, 831 10, 051, 669 11, 813, 339 8,973,877 11,177, 387 13,165, 592 8,044,621 3,708,535 6,525,592 12, 908, 883 15, 931, 372 22, 052, 807 249,914 617,981 344,816 425,252 302,859 391,623
6,786,653 6,491,075 7,288,277 6,898,216 1,246,091 760,969 5,569,684 4,337,680 4,693,106 1,243,832 5,112,604 10,210,898 6,944,423 1,469, 367 1,484, 669 1,595,732 1,957,027 1,488,996 4,627,173 1,021,777 7,016,584 771,271 7,482,550 4,550,771 61,283,306 50,769,475 59,760,235 72,348,052 92,685,773 104,356,002 5,940,387
14, 721,189
3,929,138
2,096,589
3,708,469
5,504,512
12,622,062
3,600,000
4,415,612
6,439, 508
16,731,402
2,855,850
1,952,789
3,998,071
7,964,820
3,405, 300
1,149,489
4,490,634
56,537,958 48,987,863
8,460,291 8,428,917 9,212,955 10, 081, 683
17,578,516 18,101,157 21,807,040 23,884,654
2,959,287 2,681,355 4,099,461 5,121,943
1,951,963 2,285,885 3,098,593 3,685,633
4,119,407 4,650,945 5,854,860 7,565,715
5,074,099 8,723,267 10,050,553 23,622,250
3,938,561 3,119,925 6,080,491
3,563,485 - -
4,820,703 5,099,969 2,563,656
52,466,312 53,091,420 62,767,609
4,745,348 1,781,612 7,293,923 19, 256, 632 29, 918,164
167,456
19,494
9,682,117
(12,803,081)
78,046
33,431 24,392
5,375,000 35,875,000
1,014,920 -
(6,389,920) (34,829,600)
10, 561, 452
(10, 561, 452)
(2,934,014) 111,477
1,811,334 1,893,089
18,489,635
(24, 659,177)
856,533
24,471
13, 031, 672
(13,286,030)
(5,099,750) 626,646
4,600,214
2,332,299
80, 894, 391
23,461,611
552,455 173,241
696,732 578,440
147,743 818
47, 877, 889
(48,493,625)
38, 023, 251
(38,100,614)
781,194 675,136
2,194,173 19, 883, 278
30,699,358 24,136,747
$ 1,811,334 $ 1,893,089 $ 2,194,173 $ 19,883,278 $ 30,699,358 $ 24,136,747

22.3% 28.3%

35.1% 21.1%

17.0% 12.5%
120

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 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 2024 7,806,832 30,085,425 397,343 3,347,040 2,549,379 7,693,382 69,901 430,052 52,379,354 Source: City of Beaumont Finance Department Audited Financial Statements (FY2012- 2014) Source: City of Beaumont Finance Department Tyler Accounting Software (FY2015 and older) 121

CITY OF BEAUMONT
Top 25 Sales Tax Producers
As of June 30, 2024
Calendar year 2023
Business Name
1st Street Arco
84 Lumber Co
Amazon Com Services
Amazon MFA
Beaumont Gas Mart
Beaumont RV
Best Buy
Big Text Trailers
CJ Foods
Grove 76
Home Depot
Icon Health and Fitness
In N Out Burger
Kohls
M A Mortenson Company
Mayas Chevron
Oak Valley 76
Oak Valley Chevron
Rancho Ready Mix Products
Ross
Shell
Stater Bros
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
Food Service Equip./Supplies
Service Stations
Building Materials
Light Industrial/Printers
Quick -Service Restaurants
Department Stores
Contractors
Service Stations
Service Stations
Service Stations
Contractors
Family Apparel
Service Stations
Grocery Stores
Service Stations
Discount Dept Stores
Fullfillment Centers
Percent of Fiscal Year Total Paid by Top 25 Accounts=89.44% Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HDL Companies 122

CITY OF BEAUMONT
Top 25 Sales Tax Producers
As of June 30, 2024
Calendar year 2014
Business Name
1st Street Arco
84 Lumber Co
Baker's Burgers
Beaumont Gas Mart
Beaumont Motorcycles
Beaumont RV
Bed Bath & Beyond
Best Buy
Big Tex Trailer World
Chili's
Dangelo Company
Food 4 Less
Grove 76
Highland Shell
Home Depot
Kohls
Oak Valley Chevron
Petco
Ross
Shell
Stater Bros
Trailer Factory Outlet
USA Gasoline
Verizon Wireless
Walmart Supercenter
Business Category
Service Stations
Building Materials
Quick -Service Restaurants
Service Stations
Boats/Motorcycles
Trailers/RVs
Home Furnishings
Electronics/Appliance Stores
Trailers/RVs
Casual Dining
Light Industrial/Printers
Grocery Stores
Service Stations
Service Stations
Building Materials
Department Stores
Service Stations
Specialty Store
Family Apparel
Service Stations
Grocery Stores
Trailers/RVs
Service Stations
Electronics/Appliance Stores
Discount Dept Stores
Percent of Fiscal Year Total Paid by Top 25 Accounts=72.21% Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HDL Companies 123

CITY OF BEAUMONT
Taxable Sales by Category
Last Ten Calendar Years (in thousands of dollars)
As of June 30, 2024
Calendar Year
Food Stores
Eating and Drinking Places
Building Materials
Auto Dealers and Supplies
Services Stations
Other Retail Stores
All Other Outlets
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
$ 18,558 $ 19,259 $ 21,016 $ 21,879 $ 23,369 $ 24,224 $ 27,104 $ 27,107 $ 28,433 $ 29,805 44,537 48,097 52,677 54,955 58,832 64,596 69,001 92,028 91,659 94,084 48,119 51,999 55,011 59,738 66,532 68,381 86,704 103,831 106,532 95,079 21,792 28,347 31,958 37,260 39,850 38,810 44,345 58,846 61,414 50,214 65,560 55,945 50,076 54,400 66,439 74,214 61,827 88,347 114,699 103,095 144,897 152,353 154,132 151,516 156,081 155,083 152,615 182,886 181,362 180,935 70,820 85,854 102,192 102,082 107,750 139,482 290,833 891,152 2,325,658 2,191,120 Total $ 414,283 $ 441,854 $ 467,062 $ 481,830 $ 518,853 $ 564,790 $ 732,429 $ 1,444,197 $ 2,909,757 $ 2,744,332 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.
124

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 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 2024 6,075,819,024 575,698,622 663,899,380 6,125,579 4,022,198 10,354 17,077,967 294,128,048 120,008 6,311,757 Source: City of Beaumont Finance Department
125

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 $ 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% 469, 769, 786 8,113, 781, 673 - 798,950 8,114, 580, 623 0.09538 100% 126

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 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 2024 1.0000 0.06200 0.14871 0.07777 0.01320 0.14988 0.00350 0.17500 1.63006 0.00000 0.09538 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. 127

CITY OF BEAUMONT
Principal Property Taxpayers
As of June 30, 2024
2023/2024 2014/2015
Taxpayer
Percentage of Percentage of
Assessed Total Taxable Assessed Total Taxable
Valuation Rank Assessed Value Valuation Rank Assessed Value MPLD II Inland Empire ULC LLC
Amazon Com Services LLC
Exeter 630 Nicholas LP
CJ Foods Manufacturing Beaumont Corp
USEF Crossroads I/11
Beaumont HD LLC
CJ Foods Manufacturing
Dura California LLC
Exeter Cherry Valley Land LLC
Brixton Beaumont LLC
CT Beaumont Partners
Frederick J Hanshaw
High Desert Partners
Trinity Partners LLC
HHI Riverside LLC
Walmart Real Estate Business Trust
Home Depot USA Inc
Valley View Center LLC
Dura Plastics Products Inc
SDC Fairway Canyon LLC
$ 265,415,704 1 3.27%
202,974,384 2 2.50%
133,620,000 3 1.65%
106,916,432 4 1.32%
85,892,359 5 1.06%
58,094,100 6 0.72%
49,444,284 7 0.61%
35,285,495 8 0.43%
33,989,863 9 0.42%
33,080,582 10 0.41%
$ 1,004,713,203 12.39%
$ 39,393,725 1 1.18%
38,283,005 2 1.14%
36,968,395 3 1.10%
27, 076,177 4 0.81%
24,658,609 5 0.74%
24,031,552 6 0.72%
23,331,405 7 0.70%
22,053,128 8 0.66%
20,049,299 9 0.60%
19,995,638 10 0.60%
$ 275,840,933 8.25%
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
128

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 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% 2024 8,113,782 7,806,832 96.2% 136,254 7,806,832 96.2%
Source: Riverside County Auditor -Controller Property Tax Division 129

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 Capita' 2015 $ - $ - $ 2,575,912 $ - $ - $ - $ 2,575,912 146% $ 63 2016 - 2,275,912 2,275,912 994% 56
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 2024 1,163,723 67,147,636 74,785,000 6,084,194 130,411 149,310,964 7791% 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
130

CITY OF BEAUMONT
Direct and Overlapping Governmental Activities Debt
As of June 30, 2024
2023-2024 Assessed Valuation $ 8,717,830,890
Total Debt Percent
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/24 Applicable (1) Debt 6/30/24 CFD 93-1 IA 1 $ 100.000% $
CFD 93-1 IA 2 100.000% -
CFD 93-1 IA 3 1,525,000 100.000% 1,525,000
CFD 93-1 IA 4 100.000% -
CFD 93-1 IA 5 100.000%
CFD 93-1 IA 6A1 22,182,406 100.000% 22,182,406
CFD 93-1 IA 6B 100.000% -
CFD 93-1 IA 7A1 9,005,000 100.000% 9,005,000
CFD 93-1 IA 7B 3,255,000 100.000% 3,255,000
CFD 93-1 IA 7C 1,305,000 100.000% 1,305,000
CFD 93-1 IA 7D 3,330,000 100.000% 3,330,000
CFD 93-1 IA 8 4,840,000 100.000% 4,840,000
CFD 93-1 IA 8A 4,596,635 100.000% 4,596,635
CFD 93-1 IA 8B 4,465,000 100.000% 4,465,000
CFD 93-1 IA 8C 26,938,779 100.000% 26,938,779
CFD 93-1 IA 8D 8,138,725 100.000% 8,138,725
CFD 93-1 IA 8E 12,195,000 100.000% 12,195,000
CFD 93-1 IA 8F 12,555,000 100.000% 12,555,000
CFD 93-1 IA 9 280,000 100.000% 280,000
CFD 93-1 IA 10 1,005,000 100.000% 1,005,000
CFD 93-1 IA 11 625,000 100.000% 625,000
CFD 93-1 IA 12 625,000 100.000% 625,000
CFD 93-1 IA 14 4,570,000 100.000% 4,570,000
CFD 93-1 IA 14A 9,200,000 100.000% 9,200,000
CFD 93-1 IA 14B 3,009,567 100.000% 3,009,567
CFD 93-1 IA 16 4,930,000 100.000% 4,930,000
CFD 93-1 IA 17A 6,900,000 100.000% 6,900,000
CFD 93-1 IA 17B 10,255,000 100.000% 10,255,000
CFD 93-1 IA 17C 8,475,000 100.000% 8,475,000
CFD 93-1 IA 18 3,355,000 100.000% 3,355,000
CFD 93-1 IA 19A 13,530,000 100.000% 13,530,000
CFD 93-1 IA 19C 14,802,144 100.000% 14,802,144
CFD 93-1 IA 20 2,275,000 100.000% 2,275,000
CFD 2016-1 8,120,000 100.000% 8,120,000
CFD 2016-2 9,545,000 100.000% 9,545,000
CFD 2016-3 8,800,000 100.000% 8,800,000
CFD 2016-4 3,845,000 100.000% 3,845,000
CFD 2019-1 2,215,000 100.000% 2,215,000
CFD 2018-1 IA -1 Beaumont USD 4,860,000 100.000% 4,860,000 CFD 2020-1 IA -1 Beaumont USD 3,410,000 100.000% 3,410,000 CFD 2020-1 IA -2 Beaumont USD 7,490,000 100.000% 7,490,000 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 246,453,256 131

DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:

Beaumont Unified School B & I (0.07777%) $ 126,534,350 100.000% $ 126,534,350 MT San Jacinto Comm (0.01320%) 242,210,000 6.435% 15,586,214 San Gorgonio Memorial Healthcare District (0.06281%) 94,135,000 56.539% 53,222,988 City of Beaumont Lease/SBITA 1,007,835 100.000% 1,007,835 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 196,351,386 OVERLAPPING TAX INCREMENT DEBT:
$ $
TOTAL DIRECT DEBT 1,007,835
TOTAL OVERLAPPING OBLIGATION DEBT 478,158,894

COMBINED TOTAL DEBT
$ 479,166,729 (2)
(1) The percentage of meriapping 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 dix.ided 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 2023-24 Assessed Valuation:

Total Overlapping Debt (excluding tax increment) 3.02%
Total Direct Debt ($156,657,292) 1.90%
Combined Total Debt (excluding tax increment) 5.23%
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
132

CITY OF BEAUMONT
Computation of Legal Debt Margin
Last Ten (10) Fiscal Years
2015 2016 2017 2018
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
$ 125,732,218 $ 138,385,746 $ 148,643,348 $ 161,750,651 96,158 132,444
$ 125,732,218 $ 138,385,746 $ 148,547,190 $ 161,618,207

0.00% 0.00%

0.06% 0.08%
Source: California Municipal Statistics, Riverside County Auditor -Controller Property Tax Division 133

2019 2020 2021 2022 2023 2024
$ 178,125, 370 $
197,598,651 $ 225,811,711 $ 251,346,367 $ 279,812,493 $ 304,296,773 167,456 78,046 251,240 760,266
1,007,835 1,320,858
$ 177,957,914 $ 197,520,605 $ 225,560,471 $ 250,586,101 $ 278,804,658 $ 302,975,915

0.09% 0.04%

0.11% 0.30%
Net Assessed Value
Plus Exempt Property
Total Assessed Value

0.36% 0.43%
Debt Limit: 3.75 percent of Total
Assessed Value
Debt applicable to Limitation:

Net Combined applicable to Limitation
Total Debt applicable to Limitation
Legal Debt Margin
$ 8,114, 580, 623
$ 8,114, 580, 623
304, 296, 773
478,158, 894
1,320,858
$ 302,975,915
134

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 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%
2024 13,745,723 8,439,410 5,306,313 5,073,713 105%
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
135

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 '* Income 2' Income * (percentage) * Age * High School Degrem * Bachelors Degree 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%
2023 57,416 1,916,563 33,380 4.00% 35.1 90% 26.8%
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. 136

CITY OF BEAUMONT
Principal Employers
Current Fiscal Year
2024 2015
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 137

CITY OF BEAUMONT
Full -Time Equivalent City Government Employees by Function Last Ten (10) Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
Administration
Administration 17.00 11.00 11.00 17.00 9.00 9.00 8.00 8.00 6.00 5.00 City Clerk 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Communication - - - - - 1.00
Economic Development - - - 2.00 2.00
Finance - 7.00 7.00 7.00 7.00 8.00 10.00
Human Resources - 2.00 2.00 2.00 3.00 3.75 4.75
Information Technology - - - - 1.00 1.00 3.00 4.00 5.00 6.00 Public safety
Animal Control
Police Officers
Police Support

4.00 3.00 2.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00

42.00 37.00 38.00 43.00 43.00 43.00 43.00 49.00 54.00 57.00

15.50 12.00 16.00 16.00 16.50 16.50 17.00 18.00 23.00 27.50 Community Development
Planning 1.00 3.00 2.00 7.00 7.00 7.00 7.00 7.00 5.50 6.50 Community Enhancement 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Building and Safety 5.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 7.00 7.00 Community Services
Parks and Recreation 19.00 15.00 16.00 8.50 8.00 8.00 5.00 5.00 7.50 9.50 Grounds Maintenance/Streets 11.50 5.50 7.50 19.00 20.00 20.00 20.00 20.00 19.50 21.50 Building Maintenance - - - - 4.00 4.00
Pool* 7.50 7.50 7.50 7.50 7.50 7.50 7.50 - - 1.00
Public Works
Public Works
Street Maintenance
Wastewater

2.00 2.00 2.00 3.00 2.75 3.50 6.50 6.50 9.00 11.00

2.00 2.00 1.50 5.00 5.00 5.00 5.00 7.00 7.00 9.00

2.50 7.00 7.25 12.00 10.50 14.50 17.00 15.00
Transit 22.00 25.00 25.00 26.00 26.00 26.00 23.00 23.00 23.25 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
138

CITY OF BEAUMONT
Operating Indicators by Function
Last Ten (10) Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
Police
Calls for service 29,852 30,753 26,357 26,526 27,277 32,056 27,506 46,253 47,087 83,868 Citations issued by Officers 2,320 1,308 2,667 1,702 1,398 1,711 1,036 4,132 3,445 3,975 Physical arrests 1,281 1,434 1,529 1,254 891 821 1,036 1,377 1,066 971 Fire
Total number of calls answered 3,177 3,186 3,225 3,618 3,886 4,282 3,879 4,244 5,023 6,172 % of calls for medical aid 83.7% 85.0% 82.2% 82.5% 81.7% 80.2% 84.0% 75.0% 74.8% 76.0% Highways and streets
Street resurfacing (miles) N/A N/A 0.65 1.05 9 20 28 29 30 4 Potholes repaired N/A N/A 49 100 395 638 494 618 531 768 Street light repaired - 260
Wastewater
Average daily sewage treatment 3.080 3.160 3.270 3.390 3.670 3.820 3.700 3.595 3.736 3.900 (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 139

CITY OF BEAUMONT
Capital Assets Statistics by Function
Last Ten (10) Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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
I&I Rehabilitation Value
140,000 188,738 247,760 89,268 187,282 487,242 526,164 664,992 735,374 302,719
3,334
131, 226, 200
14,684
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 21,530 2,208,322 3,600,000 1,050,000 - 6,385,002 736,810 451,901 - 3,676,047 3,950,198 - 1,140,835 2,580,409
172,238 969,346 3,352,629 185,501 359,613 1,927
427,311 2,236,307 15, 377, 340 26, 290, 328 20,188, 903 7,046,105 1,290,940 613,161 1,103,175 18,128,897 16,538,109 2,073,430 412,677 70,500 120,001 - 126,329
Sources: City of Beaumont Public Works and Police Departments, Riverside County Fire Department 140

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Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA. MST (Partner Emeritus)
Terry P. Shea, CPA (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
Monica Wysocki, CPA
Jacob Weatherbie, CPA, MSA
Bolim Han, CPA, MAcc
Anny Gonzalez, 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
AlliottGlobalAl liance"
R
M
A
S
ROGERS, ANDERSON. MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
December 6, 2024
To the Honorable City Council
City of Beaumont
Beaumont, California
We have audited the financial statements of the City of Beaumont (the entity) as of and for the year ended June 30, 2024, and have issued our report thereon dated December 6, 2024. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated April 9, 2024, our responsibility, as described by professional standards, is to form and express opinions 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 the system of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of the entity 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.
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STABILITY. ACCUP ge-12g7Fof 1277

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.

We have evaluated whether certain nonattest services performed by our firm during the audit have created a significant threat to our independence in relation to the entity. We have identified a threat to our independence (preparation of the entity's financial statements, creating a self -review threat) that if not reduced to an acceptable level, would impair our independence. In order to reduce the threat to an acceptable level, we have applied the following safeguard:

Prior to the issuance of the entity's financial statements, another partner or manager, independent of the engagement, will review the financial statements.

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 Entity's Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the entity is included in Note 1 to the financial statements. The City adopted GASB Statement No. 100, Accounting Changes and Error Corrections during 2024. 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.
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Significant Accounting Estimates and Related Disclosures Accounting estimates and related disclosures 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 entity's financial statements are:

Management's estimate of the net pension liability and related deferred inflows and outflows of resources are based on actuarial reports 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 basic financial statements taken as a whole and in relation to the applicable opinion units.

Management's estimate of the liability for other post -employment benefits (OPEB) and related deferred inflows and outflows of resources 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 basic financial statements taken as a whole and in relation to the applicable opinion units.

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 entity's financial statements relate to:

The disclosure of net pension liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions. Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.

The disclosures of the other post -employment benefits (OPEB) liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions.

Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.

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. There were no uncorrected misstatements noted.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion unit.
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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 entity'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 6, 2024.

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 entity, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, 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 entity'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 entity'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 have:

Read the transmittal letter and statistical section and considered whether a material inconsistency existed between the other the information and the basic financial statements, or the other information otherwise appears to be materially misstated. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

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

Very truly yours,
toyeA.e, A-kde t.tou 7 „le.oft, LLP.
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CITY OF BEAUMONT
BEAUMONTA C A L 1 F O R N -
December 6, 2024
Rogers, Anderson, Melody & Scott, LLP
550 E. 6th Street, Beaumont, CA 92223
Phone (951) 769-8520 Fax (951) 769-8526
www.Beaumont-Ca.gov
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, 2024, 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 such that, in the light of surrounding circumstances, there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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 6, 2024:

Financial Statements
• We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated April 9, 2024, 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 the system 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.
• The methods, data and significant assumptions used by us in making accounting estimates and their related disclosures, are appropriate to achieve recognition, measurement, or disclosure that is reasonable in the context of the applicable financial reporting framework. • All related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. • 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.

City of Beaumont 1550 E. 6th Street,Ragen38f1, O �^2n 1 (951) 769-8520 1 BeaumontCA.gov

• We have reviewed and approved the various adjusting journal entries that were proposed by you for recording in our books and records and reflected in the financial statements. • 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, if any, 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. • Special items and extraordinary items 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.
• We have evaluated all of our lease and subscription agreements and have given you our assessment as to whether each agreement is subject to GASB Statement No. 87, Leases and GASB Statement No. 96, Subscription Based Information Technology Arrangements. • 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 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;
- Evaluated and accepted responsibility for the result of the service performed; and - Established and maintained internal controls, a process to monitor the system of internal controls.

• 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.

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 entity from whom you determined it necessary to obtain audit evidence.
- A written acknowledgement of all the documents that we expect to issue that will be included in the annual report and the planned timing and method of issuance of that annual report;
- A final version of the annual report (including all the documents that, together, comprise the annual report) in a timely manner prior to the date of the auditor's report. • The financial statements and any other information included in the annual report are consistent with one another, and the other information does not contain any material misstatements. • All information provided in electronic form are true representations of the original documents. • 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 provided to you our analysis of the entity's ability to continue as a going concern, including significant conditions and events present, and we believe that our use of the going concern basis of accounting is appropriate.
• We have no knowledge of any fraud or suspected fraud that affects the entity 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 entity'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 and we have not consulted legal counsel concerning litigation, claims, or assessments.
• We have disclosed to you the identity of the entity'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 entity 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 entity 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 entity 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 -November 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. • 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 entity 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.

Use of a Specialist
• We agree with the findings of specialists in evaluating the entity's net pension and net other post - employment benefit liabilities and related deferred amounts and have adequately considered the qualifications of the specialist in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists.
• We believe that the actuarial assumptions and methods used to measure pension and other postemployment benefit liabilities and costs for financial accounting purposes are appropriate in the circumstances
Cybersecurity
• There have been no cybersecurity breaches or other cyber events whose effects should be considered for disclosure in the financial statements, as a basis for recording a loss contingency, or otherwise considered when preparing the financial statements.

Supplementary Information in Relation to the Financial Statements as a Whole With respect to supplementary information accompanying the financial statements:
• We acknowledge our responsibility for the presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America. • We believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. • The methods of measurement or presentation have not changed from those used in the prior period.
• We believe any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances. • When the supplementary information is not presented with the audited financial statements, management will make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the entity of the supplementary information and the auditor's report thereon.
• 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 riot 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 entity of the supplementary information and the auditor's report thereon.

Required Supplementary Information
With respect to the required supplementary information accompanying the financial statements:
• We acknowledge our responsibility for the presentation of the required supplementary information in accordance with U.S. GAAP.
• We believe the required supplementary information, including its form and content, is measured and fairly presented in accordance with U.S. GAAP.
• The methods of measurement or presentation have not changed from those used in the prior period.
• We believe the significant assumptions or interpretations underlying the measurement or presentation
• of the required supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances.

Accounting Estimates and Related Disclosures
• The significant judgments made in making the accounting estimates have taken into account all relevant information of which we are aware.
• We have consistently and appropriately selected and applied methods, assumptions, and data when making accounting estimates.
• The assumptions we used in making and disclosing accounting estimates appropriately reflect our intent and ability to carry out specific courses of action on behalf of the entity, when relevant to the accounting estimates and disclosures.
• The disclosures related to accounting estimates, including those disclosures describing estimation uncertainty, are complete and are reasonable in the context of the applicable financial reporting framework.
• We have obtained and applied appropriate specialized skills and expertise in making accounting estimates.

• We are not aware of any events subsequent to the date of the financial statements that require adjustment to our accounting estimates and related disclosures included in the financial stategents.
� I
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Jenni er U;thio ,(Finance Director

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

PARTNERS
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)
Terry P. Shea. CPA (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
Monica Wysocki, CPA
Jacob Weatherbie, CPA. MSA
Bolim Han, CPA, MAcc
Anny Gonzalez, CPA

MEMBERS
American Institute of
Certified Public Accountants
PCPS The AICPA Alliance
rot CPA Firms
Governmental Audit
Quality Centel
California Society of
Certified Public Accountants
Proud Member of
AlliottGlobalAl liance"

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 the 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 (Government Auditing Standards), the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Beaumont (the city) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the entity's basic financial statements, and have issued our report thereon dated December 6, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the entity's internal control over financial reporting (internal control) as a basis for designing 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 entity's internal control. Accordingly, we do not express an opinion on the effectiveness of the entity'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 entity'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.
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STABILITY. ACCUR a e-1-397rof 1277

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the entity'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 financial statements. 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 entity'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 entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. kOye.A.e, �`t' e t�,t,pu^, M "Wit/ LLP.San Bernardino, California December 6, 2024
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BAUME ONTA -C A L I F O R N I
Staff Report
TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE December 17, 2024
SUBJECT: FY 2025-2026 Budget Timeline
Description Review and provide direction on proposed FY 2025-2026 budget timeline.

Background and Analysis:

The City of Beaumont prepares an annual operating budget and updates its Five -Year Capital Improvement Program (CIP) budget each year. The process generally begins in December or January and must be adopted by the City Council by June 30th of each year.

The Finance Department is beginning to coordinate the preparation of the FY 2025-26 City Operating Budget and will coordinate with the Public Works Department which leads the preparation of the CIP. The proposed timeline for the preparation and approval of the operating budget is provided below and is also depicted on the attached timeline:
• December
o Dec 17 - Present proposed timeline to City Council for review • January
o Jan 13 — Budget kickoff meeting with departments
o Jan 21 — City Council Meeting: Review and revise Strategic Plan o Jan 27 — Financial and Audit Committee Meeting — Review revenue planning and long-term forecast
• February
o Feb 4 — Wage and other expense items due to Finance
o Feb 11 - Department budget entry and forms due to Finance o Feb 12-26 — Finance reviews budget submissions
o Feb 14 — Capital request deadline
o Feb 24 — Capital request review
• March
o Mar 3-14 — City Manager and Finance meets with departments to discuss and review budgets and expiring contracts and grants

• April
o Apr 4 — Deadline for department's entry into Cleargov budget book o Apr 22 — City Council Workshop (Special Meeting) — City Council to receive departmental budget presentation and proposed CIP o Apr 28 — Financial and Audit Committee Meeting — Finance Committee review of proposed budget
• May
o May 6 — Tentative City Council Meeting — Saved for City Council additional information request
• June
o Jun 3 — City Council Meeting - Final budget to City Council for approval and adoption
o Jun 17 — City Council Meeting - Presentation of budget book and budget message to City Council
Fiscal Impact:

The estimated cost to prepare this report is $265.

Recommended Action:

Receive and file.

Attachments:

A. FY 2025-2026 Budget Timeline

FY 2025/26 BUDGET CALENDAR
Description
December 17
January 13
January 21
January 27
Jan 14 - Feb 11
February 4
February 12-26
February 14
February 24
Mar 3 - Mar 14
April 4
April 22
April 28
May 6
June 3
June 17
Council Meeting
Budget Kickoff
Council Meeting
Finance Committee Meeting
Operating Budget Deadline
Operating Budget Tools
Budget Submission Review
Capital Request Deadline
Capital Request Review
Admin Budget Review
Budget Book Entry Deadline
Council Workshop
Finance Committee Meeting
Council Meeting
Budget Adoption
Budget Book and Message
Present proposed timeline to City Council for review
Meet with Department Managers to discuss timeline and process Review and revise Strategic Plan
Revenue planning and long-term forecasting review
Departmental operating budget entry and forms due to Finance Wage and other expense budget items due to Finance
Finance reviews budget submissions
Deadline to submit capital budget requests into Cleargov by departments CIP meeting to review capital budget requests
City Manager and Finance to hold departmental budget review meetings Deadline for department's entry into Cleargov budget book City Council to receive departmental budget presentations and proposed CIP Finance Committee review of proposed budget
Tentative City Council Meeting: Saved for request of additional information Final budget to City Council for approval and adoption of FY25/26 budget Presentation of budget book and budget message to City Council

BAUME ONTA -C A L I F O R N I
Staff Report
TO: City Council
FROM: Robert L. Vestal, Public Works Director
DATE: December 17, 2024
SUBJECT: Proposed Ordinance to Update Participation in the TUMF Program; Resolution Adopting A TUMF Schedule
Description Ordinance and Resolution to adopt the 2024 Nexus Study and Fee Schedule for TUMF.

Background and Analysis:

The City of Beaumont is a Member Jurisdiction of the Western Riverside Council of Governments ("WRCOG"), a joint powers agency comprised of the County of Riverside and eighteen (18) cities located in Western Riverside County. Acting in concert, in 2002-2003 the WRCOG Member Jurisdictions developed a plan whereby the shortfall in funds needed to enlarge the capacity of the Regional System of Highways and Arterials due to new development in Western Riverside County could be made up in part by a Transportation Uniform Mitigation Fee ("TUMF") on future residential, commercial and industrial development. As a Member Jurisdiction of WRCOG and as a TUMF Participating Jurisdiction, the City participated in the preparation of a certain "Western Riverside County Transportation Uniform Fee Nexus Study," ("2002 Nexus Study") later adopted by the WRCOG Executive Committee. Based on the 2002 Nexus Study, the City adopted and implemented an ordinance authorizing the City's participation in a TUMF Program.

Pursuant to the Mitigation Fee Act (Gov. Code §§ 66000 et seq.), WRCOG has prepared a new nexus study ("2024 Nexus Study") to update the fees. On September 9, 2024, the WRCOG Executive Committee reviewed the 2024 Nexus Study and recommended TUMF Participating Jurisdictions update their fees by amending their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction.

The proposed Ordinance provides the legal basis for a revised TUMF schedule. The actual TUMF schedule will be established through the Resolution.

In accordance with the Mitigation Fee Act, the proposed Ordinance and 2024 Nexus Study:
(1) Identify the purpose of the revised fees;
(ii) identify the use to which the revised fees are to be put, including identification of any facilities to be financed;
(iii) determine how there is a reasonable relationship between the fee's use and the type of development project on which the fee is imposed; (iv) determine how there is a reasonable relationship between the need for the public facilities and the type of development project upon which the fees are imposed; and,
(v) determine how there is a reasonable relationship between the amount of the fees and the cost of the public facilities or portion of the public facility attributable to the development on which the fees are imposed.

The resolution will establish the Fee Schedule for TUMF as follows:

1. $12,380 per single family residential unit 1,800 square feet or less

2. $13,927 per single family residential unit between 1,801 and 2,300 square feet

3. $15,476 per single family residential unit between 2,301 and 2,700 square feet

4. $19,344 per single family residential unit greater than 2,700 square feet

5. $7,816 per multi -family residential unit

6. $2.33 per square foot of an industrial project

7. $7.72 per square foot of a retail commercial project

8. $4.89 per square foot of a service commercial project

9. $2.45 per square foot of a service Class A and B Office Fiscal Impact:

The estimated cost to prepare this report is $350.

Recommended Action:

Hold a public hearing;
Waive the full reading and approve by title only, "An Ordinance of the City of Beaumont Amending and Superseding Ordinance No. 1091 to Update Participation in the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program"; and,

Waive the full reading and adopt by title only, "A Resolution of the City Council of the City of Beaumont Amending the Applicable Transportation Uniform Mitigation Fee (TUMF) Applicable to all Developments in the City of Beaumont." Attachments:

A. TUMF Ordinance
B. Ordinance Exhibit A
C. TUMF Schedule Resolution (Draft)
D. 2024 Nexus Study
E. Notice

ORDINANCE NO.

AN ORDINANCE OF THE CITY OF BEAUMONT AMENDING
AND SUPERSEDING ORDINANCE NO. 1091 TO UPDATE

PARTICIPATION IN THE WESTERN RIVERSIDE COUNTY

TRANSPORTATION UNIFORM MITIGATION FEE (TUMF)

PROGRAM
The City Council of the City of Beaumont, California "(City") ordains as follows:

Section 1. Title.

This Ordinance shall be known as the "Western Riverside County Transportation Uniform Mitigation Fee Program Ordinance of 2024" ("Ordinance").

Section 2. Findings.

A. The City is a member agency of the Western Riverside Council of Governments ("WRCOG"), a joint powers agency comprised of the County of Riverside and 18 cities located in Western Riverside County. Acting in concert, the WRCOG Member Agencies developed a plan whereby the shortfall in funds needed to enlarge the capacity of the Regional System of Highways and Arterials in Western Riverside County (the "Regional System") could be made up in part by a Transportation Uniform Mitigation Fee ("TUMF") on future residential, commercial and industrial development. A map depicting the boundaries of Western Riverside County and the Regional System is attached here as Exhibit "A" and incorporated herein. As a Member Agency of WRCOG and as a TUMF Participating Jurisdiction, the City participated in the preparation of a certain "Western Riverside County Transportation Uniform Fee Nexus Study," dated October 18, 2002 (the "2002 Nexus Study") prepared in compliance with the Mitigation Fee Act (Gov. Code §§ 66000 et seq.) and adopted by the WRCOG Executive Committee.

Based on the 2002 Nexus Study, the City adopted and implemented an ordinance authorizing the City's participation in a TUMF Program.

B. In 2016, the TUMF Nexus Study ("2016 Nexus Study") was updated for the purpose of updating the fees. On July 10, 2017, the WRCOG Executive Committee reviewed the 2016 Nexus Study and TUMF Program and recommended TUMF Participating Jurisdictions amend their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction in order to update the TUMF Program.

C. On September 5, 2017, the City adopted Ordinance No. 1091, which adopted the 2016 Nexus Study and updated the TUMF.

D. In 2018, the TUMF Program was altered to adopt a process in which WRCOG calculates and collects TUMF on behalf of member agencies under the Western Riverside County Transportation Uniform Mitigation Fee Program Ordinance of 2018.

E. The City amended Ordinance No. 1091 on August 15, 2023, allowing WRCOG to calculate and collect TUMF on behalf of the City.

F. WRCOG, with the assistance of TUMF Participating Jurisdictions, has prepared an updated nexus study entitled "Transportation Uniform Mitigation Fee Nexus Study: 2024 Update" ("2024 Nexus Study") pursuant to California Government Code sections 66000 et seq.

(the Mitigation Fee Act), for the purpose of updating the fees. On September 9, 2024, the WRCOG Executive Committee reviewed the 2024 Nexus Study and TUMF Program and recommended TUMF Participating Jurisdictions amend their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction in order to update the TUMF Program.

G. Consistent with its previous findings made in the adoption of Ordinance No. 1091, the City Council has been informed and advised, and hereby finds, that if the capacity of the Regional System is not enlarged and unless development contributes to the cost of improving the Regional System, the result will be substantial traffic congestion in all parts of Western Riverside County, with unacceptable Levels of Service. Furthermore, the failure to mitigate growing traffic impacts on the Regional System will substantially impair the ability of public safety services (police and fire) to respond and, thus, adversely affect the public health, safety and welfare. Therefore, continuation of a TUMF Program is essential.

H. The City Council finds and determines that there is a reasonable and rational relationship between the use of the TUMF and the type of development projects on which the fees are imposed because the fees will be used to construct the transportation improvements that are necessary for the safety, health and welfare of the residential and non-residential users of the development in which the TUMF will be levied.

The City Council finds and determines that there is a reasonable and rational relationship between the need for the improvements to the Regional System and the type of development projects on which the TUMF is imposed because it will be necessary for the residential and non-residential users of such projects to have access to the Regional system.

Such development will benefit from the Regional System improvements and the burden of such developments will be mitigated in part by payment of the TUMF.

J. The City Council finds and determines that the cost estimates set forth in the new 2024 Nexus Study are reasonable cost estimates for constructing the Regional System improvements and the facilities that compromise the Regional System, and that the amount of the TUMF expected to be generated by new development will not exceed the total fair share cost to such development.

K. The fees collected pursuant to this Ordinance shall be used to help pay for the design, planning, construction of and real acquisition for the Regional System improvements and its facilities as identified in the 2024 Nexus Study. The need for the improvements and facilities is related to new development because such development results in additional traffic and creates the demand for the improvements.

L. By notice duly given and published, the City Council set the time and place for a public hearing on the 2024 Nexus Study and the fees proposed thereunder and at least ten (10) days prior to this hearing, the City Council made the 2024 Nexus Study available to the public.

M. At the time and place set for the hearing, the City Council duly considered data and information provided by the public relative to the cost of the improvements and facilities for which the fees are proposed and all other comments, whether written or oral, submitted prior to the conclusion of the hearing.

N. The City Council finds that the 2024 Nexus Study proposes a fair and equitable method for distributing a portion of the unfunded costs of improvements and facilities to the Regional system.

O. The City Council hereby adopts the 2024 Nexus Study and its findings. The 2024 Nexus Study is attached and incorporated herein as Exhibit "B." P. The City Council hereby adopts this Ordinance to amend and supersede the provisions of Ordinance No. 1091
Section 3. Definitions.

For the purpose of this Ordinance, the following words, terms and phrases shall have the following meanings:

A. "Class 'A' Office" means an office building that is typically characterized by high quality design, use of high end building materials, state of the art technology for voice and data, on -site support services/maintenance, and often includes full service ancillary uses such as, but not limited to a bank, restaurant/office coffee shop, health club, printing shop, and reserved parking. The minimum requirements of an office building classified as Class 'A" Office shall be as follows: (i) minimum of three stories (exception will be made for March JPA, where height requirements exist); (ii) minimum of 10,000 square feet per floor; (iii) steel frame construction; (iv) central, interior lobby; and (v) access to suites shall be from inside the building unless the building is located in a central business district with major foot traffic, in which case the first floor may be accessed from the street to provide entrances/ exits for commercial uses within the building.

B. "Class `B' Office" means an office building that is typically characterized by high quality design, use of high end building materials, state of the art technology for voice and data, on -site support services/maintenance, and often includes full service ancillary uses such as, but not limited to a bank, restaurant/office coffee shop, health club, printing shop, and reserved parking. The minimum requirements of an office building classified as Class `B" Office shall be as follows: (i) minimum of two stories; (ii) minimum of 15,000 square feet per floor; (iii) steel frame, concrete or masonry shell construction; (iv) central, interior lobby; and (v) access to suites shall be from inside the building unless the building is located in a central business district with major foot traffic, in which case the first floor may be accessed from the street to provide entrances/exits for commercial uses within the building.

C. "Development Project" or "Project" means any project undertaken for the purposes of development, including the issuance of a permit for construction.

D. "Gross Acreage" means the total property area as shown on a land division of a map of record, or described through a recorded legal description of the property. This area shall be bounded by road rights of way and property lines.

E. "Habitable Structure" means any structure or part thereof where persons reside, congregate or work and which is legally occupied in whole or part in accordance with applicable building codes, and state and local laws.

F. "Industrial Project" means any development project that proposes any industrial or manufacturing use allowed in the following Ordinance No. 1128 zoning classifications: M or SP, with one of the aforementioned zones used as the base zone.

G. "Low Income Residential Housing" means "Residential Affordable Units": (A) for rental housing, the units shall be made available, rented and restricted to "lower income households" (as defined in Health and Safety Code Section 50079.5) at an "affordable rent" (as defined in Health and Safety Code Section 50053), ). Affordable units that are rental housing shall be made available, rented, and restricted to lower income households at an affordable rent for a period of at least fifty-five (55) years after the issuance of a certificate of occupancy for new residential development. and (B) for for -sale housing, the units shall be sold to "persons or families of low or moderate income" (as defined in Health and Safety Code Section 50093) at a purchase price that will not cause the purchaser's monthly housing cost to exceed "affordable housing cost (as defined in Health and Safety Code Section 50052.5) Affordable units that are for -sale housing units shall be restricted to ownership by persons and families of low or moderate income for at least forty-five (45) years after the issuance of a certificate of occupancy for the new residential development.

H. "Multi -Family Residential Unit" means a structure with two or more legal independent residential dwelling units intended for human habitation. "Non -Residential Unit" means retail commercial, service commercial and industrial development which is designed primarily for non -dwelling use, but shall include hotels and motels.

J. "Recognized Financing District" means a Financing District as defined in the TUMF Administrative Plan as may be amended from time to time.

K. "Residential Dwelling Unit" means a building or portion thereof used by one (1) family and containing but one (1) kitchen, which is designed primarily for residential occupancy including single-family and multi -family dwellings. "Residential Dwelling Unit" shall not include hotels or motels.

L. "Retail Commercial Project" means any development project that proposes any retail commercial activity use not defined as a service commercial project allowed in the following Ordinance No. 1128, 1150, and 1164 classifications: C -N, C -C, SP, DMU, BMU, SSMU, LC -R with one of the aforementioned zones used as the base zone, which can include any eating/dining facility residing on the retail commercial development premises.

M. "Service Commercial Protect" means any development project that is predominately dedicated to business activities associated with professional or administrative services, and typically consists of corporate offices, financial institutions, legal, and medical offices eating/dining facilities, and other uses related to personal or professional services.

N. "Single Family Residential Unit" means each residential dwelling unit development which is situated on one lot which shares no common wall, foundation, or other interconnection with another dwelling unit.

O. "TUMF Participating Jurisdiction" means a jurisdiction in Western Riverside County which has adopted and implemented an ordinance authorizing participation in the TUMF

Program and complies with all regulations established in the TUMF Administrative Plan, as adopted and amended from time to time by the WRCOG.

P. "Disabled Veteran" means any veteran who is retired or is in process of medical retirement from military service who is or was severely injured in a theatre of combat operations and has or received a letter of eligibility for the Veterans Administration Specially Adapted Housing (SAH) Grant Program.

Q. Government/public buildings, public schools, and public facilities means any owned and operated facilities by a government entity in accordance with Section G.

Exemptions, Subsection 2. of this Ordinance. A new development that is subject to a long-term lease with a government agency for government/public buildings, public schools, and public facilities shall apply only if all of the following conditions are met:
(a) The new development being constructed is subject to a long-term lease with a government agency.
(b) The project shall have a deed restriction placed on the property that limits the use to government/public facility for the term of the lease, including all extension options, for a period of not less than 20 years. Any change in the use of the facility from government shall trigger the payment of the TUMF in effect at the time of the change is made.
(c) No less than ninety percent of the total square footage of the building is leased to the government agency during the term of deed restriction the long term and any extensions thereof.
(d) The new development is constructed at prevailing wage rates. (e) A copy of the lease is provided to the applicable jurisdiction and to WRCOG.
(f) Based on the facts and circumstances WRCOG determines that the intent of the lease is to provide for a long-term government use, and not to evade payment of TUMF.

R. "Non-profit Organization" means an organization operated exclusively for exempt purposes set forth in section 501(c)(3) of the Internal Revenue Code, and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial port of its activities and it may not participate in any campaign activity for or against political candidates. For the purposes of the TUMF Program, the non-profit may be a 501(c) (3) charitable organization as defined by the Internal Revenue Service.

S. "Long -Term Lease" as used in the TUMF Program, a "long-term lease" shall mean a lease with a term of no less than twenty years.

T. "Mixed -Use Development" as used in the TUMF Program, means Developments with the following criteria: (1) three or more significant revenue -producing uses, and (2) significant physical and functional integration of project components.

U. "Guest Dwellings" and "Detached Second Units" according to the State of California legal definition as following: 1) Complies with the State of California Department of Housing and Community Development Accessory Dwelling Unit Handbook and 2) Are ministerially approved by each jurisdiction's local codes.

V. "TUMF Administrative Plan" means that the TUMF Administration Plan adopted by the WRCOG Executive Committee May 5, 2003, as amended, setting forth detailed administration procedures and requirements for the TUMF program.

Section 4. Establishment of the Transportation Uniform Mitigation Fee.

A. Adoption of TUMF Schedule. The City Council shall adopt an applicable TUMF schedule through a separate resolution, which may be amended from time to time.

B. Fee Calculation. The fees shall be calculated by WRCOG according to the calculation methodology fee set forth in the WRCOG TUMF Fee Calculation Handbook adopted July 14, 2003, as amended from time to time. In addition to data in the Fee Calculation Handbook, WRCOG Staff may consider the following items when establishing the appropriate fee calculation methodology:
• Underlying zoning of the site
• Land -use classifications in the latest Nexus Study
• Project specific traffic studies
• Latest Standardized reference manuals such as the Institute of Traffic Engineers Trip Generation Manual
• Previous TUMF calculations for similar uses
• WRCOG staff shall approve final draft credit / reimbursement agreement prior to execution
WRCOG shall have final determination regarding the appropriate methodology to calculate the fee based on the information provided by the local agency. In case of a conflict between the applicant, WRCOG, and/or the local agency regarding the fee calculation methodology, the dispute resolution process in the TUMF Administrative Plan will apply.

C. Fee Adjustment. The fee schedule may be periodically reviewed and the amounts adjusted by the WRCOG Executive Committee. By amendment to the Resolution reference is subsection A, above, the fees may be increased or decreased to reflect the changes in actual and estimated costs of the Regional System including, but not limited to, debt service, lease payments and construction costs. The adjustment of the fees may also reflect changes in the facilities required to be constructed, in estimated revenues received pursuant to this Ordinance, as well as the availability or lack thereof of other funds with which to construct the Regional System. WRCOG shall review the TUMF Program no less than every four (4) years after the effective date of this Ordinance. -
D. Purpose. The purpose of the TUMF is to fund those certain improvements to the Regional System as depicted in Exhibit "A" and identified in the 2024 Nexus Study, Exhibit "B." E. Applicability. The TUMF shall apply to all new development within the City, unless otherwise exempt hereunder.

F. Exemptions. The following types of new development shall be exempt from the provisions of this Ordinance and in TUMF Administrative Plan:

1. Low income residential housing as described in Section 3 Definitions, Subsection G of this Ordinance and in the TUMF Administrative Plan.

2. Government/public buildings, public schools, and public facilities as described in Section 3. Definitions, Subsection Q. of this Ordinance and in the TUMF Administrative Plan. Airports that are public use airports and are appropriately permitted by Caltrans or other state agency.

3. Development Projects which are the subject of a Public Facilities Development Agreement entered into pursuant to Government Code section 65864 et seq, prior to the effective date of Ordinance No. 1091, wherein the imposition of new fees are expressly prohibited, provided that if the term of such a Development Agreement is extended by amendment or by any other manner after the effective date of Ordinance No. 1091, the TUMF shall be imposed.

4. The rehabilitation and/or reconstruction of any habitable structure in use on or after January 1, 2000, provided that the same or fewer traffic trips are generated as a result thereof.

5. Guest Dwellings and Detached Second Units as described in this Ordinance in Section 3. Definitions, Subsection U. and in the Administrative Plan

6. Kennels and Catteries established in connection with an existing single family residential unit.

7. Any sanctuary, or other activity under the same roof of a church or other house of worship that is not revenue generating and is eligible for a property tax exemption (excluding concert venues, coffee/snack shops, book stores, for-profit pre- school day -cares, etc., which would be assessed TUMF.)

8. Any nonprofit corporation or nonprofit organization offering and conducting full-time day school at the elementary, middle school or high school level for students between the ages of five and eighteen years.

9. New single-family homes, constructed by non-profit organizations, specially adapted and designed for maximum freedom of movement and independent living for qualified Disabled Veterans."

10. Other uses may be exempt as determined by the WRCOG Executive Committee as further defined in the TUMF Administrative Plan.

G. Credit. Regional System improvements may be credited toward the TUMF in accordance with the TUMF Administrative Plan and the following:

Regional Tier
Arterial Credits: If a developer constructs arterial improvements identified on the Regional System, the developer shall receive credit for all costs associated with the arterial component based on approved Nexus Study for the Regional System effective at the time the credit agreement is entered into. WRCOG staff must pre -approve any credit agreements that deviate from the standard WRCOG approved format.
ii . Other Credits: In special circumstances, when a developer constructs off -site improvements such as an interchange, bridge, or railroad grade separation, credits shall be determined by WRCOG and the City in consultation with the developer.

All such credits must have prior written approval from WRCOG.

The amount of the development fee credit shall not exceed the maximum amount determined by the Nexus Study for the Regional System at the time the credit agreement is entered into or actual costs, whichever is less.

Local Tier
i. The local jurisdictions shall compare facilities in local fee programs against the Regional System and eliminate any overlap in its local fee program except where there is a Recognized Financing District has been established. ii . If there is a Recognized Financing District established, the local agency may credit that portion of the facility identified in both programs against the TUMF in accordance with the TUMF Administrative Plan.

Section 5. Reimbursements.

Should the developer construct Regional System improvements in excess of the TUMF fee obligation, the developer may be reimbursed based on actual costs or the approved Nexus Study effective at the time the agreement was entered into, whichever is less. Reimbursements shall be enacted through an agreement between the developer and the City, contingent on funds being available and approved by WRCOG. In all cases, however, reimbursements under such special agreements must coincide with construction of the transportation improvements as scheduled in the five-year Zone Transportation Improvement Program's adopted annually by WRCOG.

Section 6. Procedures for the Levy, Collection and Disposition of Fees.

A. Authority of the Building Department. The Director of Building & Safety, or his/her designee, is hereby authorized to provide WRCOG with development project specifics for the calculation of TUMF in a manner consistent with the TUMF Administrative Plan.

B. Payment and Collection. Payment of the fees shall be as follows:
i. All fees collected hereunder shall be collected by WRCOG for deposit, investment, accounting and expenditure in accordance with the provisions of this Ordinance, TUMF Administrative Plan, and the Mitigation Fee Act. ii . The fees shall be paid at the time a certificate of occupancy is issued for the Development Project or upon final inspection, whichever comes first (the "Payment Date"). However this section should not be construed to prevent payment of the fees prior to issuance of an occupancy permit or final inspection. Fees may be paid at the issuance of a building permit, and the fee payment shall be calculated based on the fee in effect at that time, provided the developer tenders the full amount of his/her TUMF obligation. If the developer makes only a partial payment prior to the Payment Date, the amount of the fee due shall be based on the TUMF fee schedule in place on the Payment Date. The fees shall be calculated according to fee schedule set forth in the Ordinance and the calculation methodology set forth in the Fee Calculation Handbook adopted July 14, 2003, as amended from time to time.
iii. The fees required to be paid shall be the fee amounts in effect at the time of payment is due under this Ordinance, not the date the Ordinance is initially adopted.

The City shall not enter into a development agreement which freezes future adjustments of the TUMF.
iv. If all or part of any development project is sold prior to payment of the fee, the property shall continue to be subject to the requirement for payment of the fee. The obligation to pay the fee shall run with the land and be binding on all the successors in interest to the property.
v. Fees shall not be waived.

C. Issuance of Certificate of Occupancy. The City shall not issue a certificate of occupancy for any Development Project until WRCOG has provided written evidence that it has collected the fee.

D. Appeals. Appeals shall be filed with WRCOG in accordance with the provisions of the TUMF Administrative Plan. Appealable issues shall be the application of the fee, application of credits, application of reimbursement, application of the legal action stay and application of exemption.

E. Reports to WRCOG. The Director of Building and Safety, or his/her designee, shall prepare and deliver to the Executive Director of WRCOG, periodic reports as will be established under Section 7 of this Ordinance.

Section 7. Appointment of the TUMF Administrator.

WRCOG is hereby appointed as the Administrator of the Transportation Uniform Mitigation Fee Program. WRCOG is hereby authorized to collect all fees generated from the TUMF within the City, and to invest, account for and expend such fees in accordance with the provisions of this Ordinance and the Mitigation Fee Act. The detailed administrative procedures concerning the implementation of this Ordnance shall be contained in the TUMF Administrative Plan . Furthermore, the TUMF Administrator shall use the Fee Calculation Handbook adopted July 14, 2003, as amended from time to time, for the purpose of calculating a developer's TUMF obligation. In addition to detailing the methodology for calculating all TUMF obligations of different categories of new development, the purpose of the Fee Calculation Handbook is to clarify for the TUMF Administrator, where necessary, the definition and calculation methodology for uses not clearly defined in the respective TUMF ordinances.

WRCOG shall expend only that amount of the funds generated from the TUMF for staff support, audit, administrative expenses, and contract services that are necessary and reasonable to carry out its responsibilities and in no case shall the funds expended for salaries and benefits exceed two percent (2%) of the revenue raised by the TUMF Program. The TUMF Administrative Plan further outlines the fiscal responsibilities and limitations of the Administrator.

Section 8. Effect.

No provisions of this Ordinance shall entitle any person who has already paid the TUMF to receive a refund, credit or reimbursement of such payment. This Ordinance does not create any new TUMF.

Section 9. Severability.

If any one or more of the terms, provisions or sections of this Ordinance shall to any extent be judged invalid, unenforceable and/or voidable for any reason whatsoever by a court of competent jurisdiction, then each and all of the remaining terms, provisions and sections of this Ordinance shall not be affected thereby and shall be valid and enforceable.

Section 10. No Procedural Defenses.

Prohibition of Jurisdictions from raising procedural defenses, including without limitation a statute of limitations, laches, the California Government Tort Claims Act, and necessary parties in a dispute with WRCOG regarding the matters set forth herein.