C25-19
EXHIBIT "C"
CERTIFICATES OF INSURANCE AND ENDORSEMENTS
(Insert behind this page.)
10
ACRD® CERTIFICATE OF LIABILITY INSURANCE
�-----
DATE (MM/DD/YYYY)
04/09/2025
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
PRODUCER
McRae Associates Insurance Services
1265 N. Manassero St Suite 303
Anaheim, CA 92807
License #: 0637431
CONTACT Mariana Pichardo
NAME:
(A/c, No, Ext): (714)779-6999 (PHONE A,C,No): (714)779-6903 ADDRESS: [email protected]
INSURER(S) AFFORDING COVERAGE
NAIC #
INSURER A : Travelers Property Casualty Company of America 25674
INSURED
CROSSTOWN ELECTRICAL & DATA, INC.
5454 DIAZ ST.
Irwindale, CA 91706
INSURER B: TRAVELERS PROPERTY CASUALTY COMPANY OF AMERICA 25674
INSURERC: GREAT AMERICAN INSURANCE COMPANY
16691
INSURER D: ATLANTIC SPECIALTY INSURANCE COMPANY
27154
INSURERE: St Paul Surplus Lines Insurance Company
30481
INSURER F :
COVERAGES
CERTIFICATE NUMBER: 00001315-3660389
REVISION NUMBER: 698
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
LTR
TYPE OF INSURANCE
ADDL
INSD
SUBR
WVD
POLICY NUMBER
POLICY EFF
(MM/DD/YYYY)
POLICY EXP
IMM/DD/YYYY)
LIMITS
A
X
COMMERCIAL GENERAL LIABILITY
X
CLAIMS -MADE X OCCUR
Deductible $10,000
GEN'L AGGREGATE LIMIT APPLIES PER:
POLICY X PRO--JECT LOC
OTHER:
Y
Y
DT22-CO-7W 503833-TCT-24
06/03/2024
06/03/2025
EACH OCCURRENCE
DAMAGE TO RENTED
PREMISES (Ea occurrence)
MED EXP (Any one person)
PERSONAL & ADV INJURY
GENERAL AGGREGATE
PRODUCTS - COMP/OP AGG
$ 2,000,000
$
300,000
5,000
$ 2,000,000
$ 4,000,000
$ 4,000,000
B
AUTOMOBILE LIABILITY
X
X
ANY AUTO
OWNED
AUTOS ONLY
HIRED
AUTOS ONLY
X
SCHEDULED
AUTOS
NON -OWNED
AUTOS ONLY
Y
Y
810 -7W449049 -24-26-G
06/03/2024
06/03/2025
COMBINED SINGLE LIMIT
(Ea accident)
BODILY INJURY (Per person)
$ 1,000,000
BODILY INJURY (Per accident)
PROPERTY DAMAGE
(Per accident)
C
X
UMBRELLA LIAB
EXCESS LIAB
X
OCCUR
CLAIMS -MADE
DED
RETENTION $
Y
Y
TUE257205206
09/03/2024
09/03/2025
EACH OCCURRENCE
$ 10,000,000
$ 10,000,000
AGGREGATE
A
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
ANY PROPRIETOR/PARTNER/EXECUTIVE
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
If yes, describe under
DESCRIPTION OF OPERATIONS below
PROP & INLAND MAR.
Prof. & Poll. Liab.
Y/N
N
N/A
Y
UB-7W504031-24-26-G
06/03/2024
06/03/2025
X
PER
STATUTE
OTH-
ER
E.L. EACH ACCIDENT
$ 1,000,000
$ 1,000,000
$ 1,000,000
E.L. DISEASE - EA EMPLOYEE
E.L. DISEASE - POLICY LIMIT
BUILD/BPP $1,41
Each Occ/ Gen Agg
D
E
Y
Y
Y
Y
710-03-94-14-0003
ZCE-16P95095
05/10/2024
10/10/2024
05/10/2025
10/10/2025
3,849/ $300,000
$2 mill/ $4 mill
DESCRIPTION OF OPERATIONS / LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) RE: PROJECT NAME: CITYWIDE TRAFFIC SIGNAL MAINTENANCE / PROJECT LOCATION: CITYWIDE, BEAUMONT CA 92223 / PROJECT#C25-19/JOB#5361-25
THE CITY OF BEAUMONT ,ALONG WITH THEIR OFFICERS, OFFICIALS, AGENTS, EMPLOYEES AND VOLUNTEERS ARE
NAMED AS ADDITIONAL INSURED WITH RESPECTS TO THE ABOVE -MENTIONED POLICIES PER ATTACHED ENDORSEMENT(S). COVERAGE IS PRIMARY & NON-CONTRIBUTORY AS REQUIRED BY WRITTEN CONTRACT, PER (continued on ACORD 101 Additional Remarks Schedule)
CERTIFICATE HOLDER
CITY OF BEAUMONT
550 E 6TH STREET
BEAUMONT , CA 92223
CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
ACORD 25 (2016/03)
• age O • 11 © 1988-2015 ACORD CORPORATION. All rights reserved.
The ACORD name and logo are registered marks of ACORD Printed by MPC on 04/09/2025 at 12:17PM
AGENCY CUSTOMER ID: 00001315
LOC #:
ACORO�
ADDITIONAL REMARKS SCHEDULE
AGENCY
McRae Associates Insurance Services
NAMED INSURED
CROSSTOWN ELECTRICAL & DATA, INC.
POLICY NUMBER
N/A
CARRIER
Multiple Carriers
NAIC CODE
EFFECTIVE DATE:
ADDITIONAL REMARKS
THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: Certificate of Liability Insurance (continued from Description of Operations)
ATTACHED ENDORSEMENT FORMS. WAIVER OF SUBROGATION APPLIES, IF REQUIRED BY WRITTEN CONTRACT.
SHOULD ANY OF THE ABOVE -DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, A 30 DAY WRITTEN NOTICE WILL BE ISSUED.
ACORD 101 (2008/01)
© 2008 ACORD CORPORATION. All rights reserved.
The ACORD name arfd o 44*gpgte0®marks of ACORD
Printed by MPC on April 09, 2025 at 12:17PM
Policy Number: 810 -7W449049 -24-26-G
COMMERCIAL AUTO
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BUSINESS AUTO EXTENSION ENDORSEMENT
This endorsement modifies insurance provided under the following:
BUSINESS AUTO COVERAGE FORM
GENERAL DESCRIPTION OF COVERAGE — This endorsement broadens coverage. However, coverage for any injury, damage or medical expenses described in any of the provisions of this endorsement may be excluded or limited by another endorsement to the Coverage Part, and these coverage broadening provisions do not apply to the extent that coverage is excluded or limited by such an endorsement. The following listing is a general cover- age description only. Limitations and exclusions may apply to these coverages. Read all the provisions of this en- dorsement and the rest of your policy carefully to determine rights, duties, and what is and is not covered.
A. BROAD FORM NAMED INSURED
B. BLANKET ADDITIONAL INSURED
C. EMPLOYEE HIRED AUTO
D. EMPLOYEES AS INSURED
E. SUPPLEMENTARY PAYMENTS - INCREASED
LIMITS
F. HIRED AUTO - LIMITED WORLDWIDE COV-
ERAGE - INDEMNITY BASIS
G. WAIVER OF DEDUCTIBLE - GLASS
PROVISIONS
A. BROAD FORM NAMED INSURED
The following is added to Paragraph A.1., Who Is
An Insured, of SECTION II - COVERED AUTOS
LIABILITY COVERAGE:
Any organization you newly acquire or form dur-
ing the policy period over which you maintain
50% or more ownership interest and that is not
separately insured for Business Auto Coverage.
Coverage under this provision is afforded only un-
til the 180th day after you acquire or form the or-
ganization or the end of the policy period, which-
ever is earlier.
B.
BLANKET ADDITIONAL INSURED
The following is added to Paragraph c. in A.1.,
Who Is An Insured, of SECTION II - COVERED
AUTOS LIABILITY COVERAGE:
Any person or organization who is required under
a written contract or agreement between you and
that person or organization, that is signed and
executed by you before the "bodily injury" or
"property damage" occurs and that is in effect
during the policy period, to be named as an addi-
tional insured is an "insured" for Covered Autos
Liability Coverage, but only for damages to which
CA T3 53 02 15
H. HIRED AUTO PHYSICAL DAMAGE - LOSS OF
USE - INCREASED LIMIT
I. PHYSICAL DAMAGE - TRANSPORTATION
EXPENSES - INCREASED LIMIT
J. PERSONAL PROPERTY
K. AIRBAGS
L. NOTICE AND KNOWLEDGE OF ACCIDENT OR
LOSS
M.
BLANKET WAIVER OF SUBROGATION
N. UNINTENTIONAL ERRORS OR OMISSIONS
this insurance applies and only to the extent that
person or organization qualifies as an "insured"
under the Who Is An Insured provision contained
in Section II.
C. EMPLOYEE HIRED AUTO
1. The following is added to Paragraph A.1.,
Who Is An Insured, of SECTION II - COV-
ERED AUTOS LIABILITY COVERAGE:
An "employee" of yours is an "insured" while
operating an "auto" hired or rented under a
contract or agreement in an "employee's"
name, with your permission, while performing
duties related to the conduct of your busi-
ness.
2. The following replaces Paragraph b. in B.5.,
Other Insurance, of SECTION IV - BUSI-
NESS AUTO CONDITIONS:
b. For Hired Auto Physical Damage Cover-
age, the following are deemed to be cov-
ered "autos" you own:
(1) Any covered "auto" you lease, hire,
rent or borrow; and
(2) Any covered "auto" hired or rented by
your "employee" under a contract in
an "employee's" name, with your
© 2015 The Travelers Indemnity Company. All rights reserved. Page 1 of 4 Includes copyrighted material of Insurance Services Office, Inc. with its permission.
COMMERCIAL AUTO
permission, while performing duties
related to the conduct of your busi-
ness.
However, any "auto" that is leased, hired,
rented or borrowed with a driver is not a
covered "auto".
D. EMPLOYEES AS INSURED
The following is added to Paragraph A.1., Who Is
An Insured, of SECTION II - COVERED AUTOS
LIABILITY COVERAGE:
Any "employee" of yours is an "insured" while us-
ing a covered "auto" you don't own, hire or borrow
in your business or your personal affairs.
E. SUPPLEMENTARY PAYMENTS -INCREASED
LIMITS
1. The following replaces Paragraph A.2.a.(2),
of SECTION II - COVERED AUTOS LIABIL-
ITY COVERAGE:
(2) Up to $3,000 for cost of bail bonds (in-
cluding bonds for related traffic law viola-
tions) required because of an "accident"
we cover. We do not have to furnish
these bonds.
2. The following replaces Paragraph A.2.a.(4),
of SECTION II - COVERED AUTOS LIABIL-
ITY COVERAGE:
(4) All reasonable expenses incurred by the
"insured" at our request, including actual
loss of earnings up to $500 a day be-
cause of time off from work.
F. HIRED AUTO — LIMITED WORLDWIDE COV-
ERAGE — INDEMNITY BASIS
The following replaces Subparagraph (5) in Para-
graph B.7., Policy Period, Coverage Territory,
of SECTION IV - BUSINESS AUTO CONDI-
TIONS:
(5) Anywhere in the world, except any country or
jurisdiction while any trade sanction, em-
bargo, or similar regulation imposed by the
United States of America applies to and pro-
hibits the transaction of business with or
within such country or jurisdiction, for Cov-
ered Autos Liability Coverage for any covered
"auto" that you lease, hire, rent or borrow
without a driver for a period of 30 days or less
and that is not an "auto" you lease, hire, rent
or borrow from any of your "employees",
partners (if you are a partnership), members
(if you are a limited liability company) or
members of their households.
(a) With respect to any claim made or "suit"
brought outside the United States of
America, the territories and possessions
of the United States of America, Puerto
Rico and Canada:
(i)
You must arrange to defend the "in-
sured" against, and investigate or set-
tle any such claim or "suit" and keep
us advised of all proceedings and ac-
tions.
(ii) Neither you nor any other involved
"insured" will make any settlement
without our consent.
(iii) We may, at our discretion, participate
in defending the "insured" against, or
in the settlement of, any claim or
"suit".
(iv) We will reimburse the "insured" for
sums that the "insured" legally must
pay as damages because of "bodily
injury" or "property damage" to which
this insurance applies, that the "in-
sured" pays with our consent, but
only up to the limit described in Para-
graph C., Limits Of Insurance, of
SECTION II - COVERED AUTOS
LIABILITY COVERAGE.
(v) We will reimburse the "insured" for
the reasonable expenses incurred
with our consent for your investiga-
tion of such claims and your defense
of the "insured" against any such
"suit", but only up to and included
within the limit described in Para-
graph C., Limits Of Insurance, of
SECTION II - COVERED AUTOS
LIABILITY COVERAGE, and not in
addition to such limit. Our duty to
make such payments ends when we
have used up the applicable limit of
insurance in payments for damages,
settlements or defense expenses.
(b) This insurance is excess over any valid
and collectible other insurance available
to the "insured" whether primary, excess,
contingent or on any other basis.
(c) This insurance is not a substitute for re-
quired or compulsory insurance in any
country outside the United States, its ter-
ritories and possessions, Puerto Rico and
Canada.
CA T3 53 02 15
© 2015 The Travelers Indemnity Company. All rights reserved.
Includes copyrighted material of Insurance Services Office, Inc. with its permission.
COMMERCIAL AUTO
You agree to maintain all required or
compulsory insurance in any such coun-
try up to the minimum limits required by
local law. Your failure to comply with
compulsory insurance requirements will
not invalidate the coverage afforded by
this policy, but we will only be liable to the
same extent we would have been liable
had you complied with the compulsory in-
surance requirements.
(d) It is understood that we are not an admit-
ted or authorized insurer outside the
United States of America, its territories
and possessions, Puerto Rico and Can-
ada. We assume no responsibility for the
furnishing of certificates of insurance, or
for compliance in any way with the laws
of other countries relating to insurance.
G. WAIVER OF DEDUCTIBLE — GLASS
The following is added to Paragraph D., Deducti-
ble, of SECTION III - PHYSICAL DAMAGE
COVERAGE:
No deductible for a covered "auto" will apply to
glass damage if the glass is repaired rather than
replaced.
H. HIRED AUTO PHYSICAL DAMAGE - LOSS OF
USE - INCREASED LIMIT
The following replaces the last sentence of Para-
graph A.4.b., Loss Of Use Expenses, of SEC-
TION III - PHYSICAL DAMAGE COVERAGE:
However, the most we will pay for any expenses
for loss of use is $65 per day, to a maximum of
$750 for any one "accident".
I. PHYSICAL DAMAGE - TRANSPORTATION
EXPENSES - INCREASED LIMIT
The following replaces the first sentence in Para-
graph A.4.a., Transportation Expenses, of
SECTION III - PHYSICAL DAMAGE COVER-
AGE:
We will pay up to $50 per day to a maximum of
$1,500 for temporary transportation expense in-
curred by you because of the total theft of a cov-
ered "auto" of the private passenger type.
J. PERSONAL PROPERTY
The following is added to Paragraph A.4., Cover-
age Extensions, of SECTION III - PHYSICAL
DAMAGE COVERAGE:
Personal Property
We will pay up to $400 for "loss" to wearing ap-
parel and other personal property which is:
(1) Owned by an "insured"; and
(2) In or on your covered "auto".
This coverage applies only in the event of a total
theft of your covered "auto".
No deductibles apply to this Personal Property
coverage.
K. AIRBAGS
The following is added to Paragraph B.3., Exclu-
sions, of SECTION III - PHYSICAL DAMAGE
COVERAGE:
Exclusion 3.a. does not apply to "loss" to one or
more airbags in a covered "auto" you own that in-
flate due to a cause other than a cause of "loss"
set forth in Paragraphs A.1.b. and A.1.c., but
only:
a. If that "auto" is a covered "auto" for Compre-
hensive Coverage under this policy;
b. The airbags are not covered under any war-
ranty; and
c. The airbags were not intentionally inflated.
We will pay up to a maximum of $1,000 for any
one "loss".
L. NOTICE AND KNOWLEDGE OF ACCIDENT OR
LOSS
M.
The following is added to Paragraph A.2.a., of
SECTION IV - BUSINESS AUTO CONDITIONS:
Your duty to give us or our authorized representa-
tive prompt notice of the "accident" or "loss" ap-
plies only when the "accident" or "loss" is known
to:
(a) You (if you are an individual);
(b) A partner (if you are a partnership);
(c) A member (if you are a limited liability com-
pany);
(d) An executive officer, director or insurance
manager (if you are a corporation or other or-
ganization); or
(e) Any "employee" authorized by you to give no-
tice of the "accident" or "loss".
BLANKET WAIVER OF SUBROGATION
The following replaces Paragraph A.5., Transfer
Of Rights Of Recovery Against Others To Us,
of SECTION IV - BUSINESS AUTO CONDI-
TIONS:
5. Transfer Of Rights Of Recovery Against
Others To Us
We waive any right of recovery we may have
against any person or organization to the ex-
tent required of you by a written contract
signed and executed prior to any "accident"
or "loss", provided that the "accident" or "loss"
arises out of operations contemplated by
CA T3 53 02 15
© 2015 The Travelers Indemnity Company. All rights reserved.
Includes copyrighted material of Insurance Services Office, Inc. with its permission.
COMMERCIAL AUTO
such contract. The waiver applies only to the
person or organization designated in such
contract.
N. UNINTENTIONAL ERRORS OR OMISSIONS
The following is added to Paragraph B.2., Con-
cealment, Misrepresentation, Or Fraud, of
SECTION IV - BUSINESS AUTO CONDITIONS:
The unintentional omission of, or unintentional
error in, any information given by you shall not
prejudice your rights under this insurance. How-
ever this provision does not affect our right to col-
lect additional premium or exercise our right of
cancellation or non -renewal.
© 2015 The Travelers Indemnity Company. All rights reserved.
Includes copyrighted material of Insurance Services Office, Inc. with its permission.
CA T3 53 02 15
POLICY NUMBER: 810 -7W449049 -24-26-G
COMMERCIAL AUTO
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BLANKET ADDITIONAL INSURED - PRIMARY AND
NON-CONTRIBUTORY WITH OTHER INSURANCE -
CONTRACTORS
This endorsement modifies insurance provided under the following:
BUSINESS AUTO COVERAGE FORM
PROVISIONS
1. The following is added to Paragraph c. in A.1.,
Who Is An Insured, of SECTION II - COVERED
AUTOS LIABILITY COVERAGE:
This includes any person or organization who you
are required under a written contract or
agreement, that is signed by you before the
"bodily injury" or "property damage" occurs and
that is in effect during the policy period, to name
as an additional insured for Covered Autos
Liability Coverage, but only for damages to which
this insurance applies and only to the extent of
that person's or organization's liability for the
conduct of another "insured".
2. The following is added to Paragraph B.5., Other
Insurance of SECTION IV - BUSINESS AUTO
CONDITIONS:
Regardless of the provisions of paragraph a. and
paragraph d. of this part 5. Other Insurance, this
insurance is primary to and non-contributory with
applicable other insurance under which an
additional insured person or organization is a
named insured when a written contract or
agreement with you, that is signed by you before
the "bodily injury" or "property damage" occurs
and that is in effect during the policy period,
requires this insurance to be primary and non-
contributory.
CA T4 99 02 16
u 2016 The Travelers Indemnity Company. All rights reserved.
Includes copyrighted material of Insurance Services Office, Inc. with its permission.
COMMERCIAL GENERAL LIABILITY
POLICY NUMBER: DT22-CO -7W 503833 TCT-24 ISSUE DATE:05/30/2024 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
OTHER INSURANCE - DESIGNATED ADDITIONAL
INSUREDS - PRIMARY WITH RESPECT TO CERTAIN
OTHER INSURANCE
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE OF DESIGNATED ADDITIONAL INSUREDS
"As required by written contract"
PROVISIONS
The following is added to Paragraph 4.a.. Primary
Insurance, of SECTION IV - COMMERCIAL
GENERAL LIABILITY CONDITIONS:
The insurance afforded under this Coverage Part to
nv ariditionai insured shown in the Schedule Of
Designated Additional Insureds is primary to any of
the other insurance. whether primary, excess,
contingent or on any other basis, that is available to
such additional insured which covers such additional
insured as a named insured. and we will not share
with that other insurance.
CG D4 26 02 19 O 2017 The Travelers Indemnity Company. All rights reserved.
Includes copyrighted material of Insurance Services Office, Inc. with its permission.
Policy Number: DT22-CO-7W503833-TCT-24
COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BLANKET ADDITIONAL INSURED
(Includes Products -Completed Operations If Required By Contract) This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
PROVISIONS
The following is added to SECTION II - WHO IS AN
INSURED:
Any person or organization that you agree in a
written contract or agreement to include as an
additional insured on this Coverage Part is an
insured, but only:
a. With respect to liability for "bodily injury" or
"property damage" that occurs, or for "personal
injury" caused by an offense that is committed,
subsequent to the signing of that contract or
agreement and while that part of the contract or
agreement is in effect; and
b. If, and only to the extent that, such injury or
damage is caused by acts or omissions of you or
your subcontractor in the performance of "your
work" to which the written contract or agreement
applies. Such person or organization does not
qualify as an additional insured with respect to
the independent acts or omissions of such
person or organization.
The insurance provided to such additional insured is
subject to the following provisions:
a. If the Limits of Insurance of this Coverage Part
shown in the Declarations exceed the minimum
limits required by the written contract or
agreement, the insurance provided to the
additional insured will be limited to such
minimum required limits. For the purposes of
determining whether this limitation applies, the
minimum limits required by the written contract or
agreement will be considered to include the
minimum limits of any Umbrella or Excess
liability coverage required for the additional
insured by that written contract or agreement.
This provision will not increase the limits of
insurance described in Section III — Limits Of
Insurance.
b. The insurance provided to such additional
insured does not apply to:
(1)
Any "bodily injury", "property damage" or
"personal injury" arising out of the providing,
or failure to provide, any professional
architectural, engineering or surveying
services, including:
(a) The preparing, approving, or failing to
prepare or approve, maps, shop
drawings, opinions, reports, surveys,
field orders or change orders, or the
preparing, approving, or failing to
prepare or approve, drawings and
specifications; and
(b) Supervisory, inspection, architectural or
engineering activities.
(2) Any "bodily injury" or "property damage"
caused by "your work" and included in the
"products -completed operations hazard"
unless the written contract or agreement
specifically requires you to provide such
coverage for that additional insured during
the policy period.
c. The additional insured must comply with the
following duties:
(1) Give us written notice as soon as practicable
of an "occurrence" or an offense which may
result in a claim. To the extent possible, such
notice should include:
(a) How, when and where the "occurrence"
or offense took place;
(b) The names and addresses of any injured
persons and witnesses; and
(c) The nature and location of any injury or
damage arising out of the "occurrence"
or offense.
(2) If a claim is made or "suit" is brought against
the additional insured:
CG D2 46 0419
© 2018 The Travelers Indemnity Company. All rights reserved.
COMMERCIAL GENERAL LIABILITY
(3)
(a) Immediately record the specifics of the
claim or "suit" and the date received; and
(b) Notify us as soon as practicable and see
to it that we receive written notice of the
claim or "suit" as soon as practicable.
Immediately send us copies of all legal
papers received in connection with the claim
or "suit", cooperate with us in the
investigation or settlement of the claim or
defense against the "suit", and otherwise
comply with all policy conditions.
(4) Tender the defense and indemnity of any
claim or "suit" to any provider of other
insurance which would cover such additional
insured for a loss we cover. However, this
condition does not affect whether the
insurance provided to such additional
insured is primary to other insurance
available to such additional insured which
covers that person or organization as a
named insured as described in Paragraph 4.,
Other Insurance, of Section IV — Commercial
General Liability Conditions.
© 2018 The Travelers Indemnity Company. All rights reserved.
CG D2 46 04 19
Policy Number: DT22-CO-7W503833-TCT-24
COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
XTEND ENDORSEMENT FOR CONTRACTORS
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
GENERAL DESCRIPTION OF COVERAGE — This endorsement broadens coverage. However, coverage for any injury, damage or medical expenses described in any of the provisions of this endorsement may be excluded or limited by another endorsement to this Coverage Part, and these coverage broadening provisions do not apply to the extent that coverage is excluded or limited by such an endorsement. The following listing is a general coverage description only. Read all the provisions of this endorsement and the rest of your policy carefully to determine rights, duties, and what is and is not covered.
A. Who Is An Insured — Unnamed Subsidiaries
B. Blanket Additional Insured — Governmental
Entities — Permits Or Authorizations Relating To
Operations
PROVISIONS
A. WHO IS AN INSURED - UNNAMED
SUBSIDIARIES
The following is added to SECTION II - WHO IS
AN INSURED:
Any of your subsidiaries, other than a partnership,
joint venture or limited liability company, that is
not shown as a Named Insured in the
Declarations is a Named Insured if:
a. You are the sole owner of, or maintain an
ownership interest of more than 50% in, such
subsidiary on the first day of the policy period;
and
b. Such subsidiary is not an insured under
similar other insurance.
No such subsidiary is an insured for "bodily injury"
or "property damage" that occurred, or "personal
and advertising injury" caused by an offense
committed:
a. Before you maintained an ownership interest
of more than 50% in such subsidiary; or
b. After the date, if any, during the policy period
that you no longer maintain an ownership
interest of more than 50% in such subsidiary.
For purposes of Paragraph 1. of Section II — Who
Is An Insured, each such subsidiary will be
deemed to be designated in the Declarations as:
CG D3 16 02 19
C. Incidental Medical Malpractice
D. Blanket Waiver Of Subrogation
E. Contractual Liability — Railroads
F. Damage To Premises Rented To You
a. An organization other than a partnership, joint
venture or limited liability company; or
b. A trust;
as indicated in its name or the documents that
govern its structure.
B. BLANKET ADDITIONAL INSURED -
GOVERNMENTAL ENTITIES - PERMITS OR
AUTHORIZATIONS RELATING TO OPERATIONS
The following is added to SECTION II - WHO IS
AN INSURED:
Any govemmental entity that has issued a permit
or authorization with respect to operations
performed by you or on your behalf and that you
are required by any ordinance, law, building code
or written contract or agreement to include as an
additional insured on this Coverage Part is an
insured, but only with respect to liability for "bodily injury", "property damage" or "personal and
advertising injury" arising out of such operations.
The insurance provided to such governmental
entity does not apply to:
a. Any "bodily injury", "property damage" or
"personal and advertising injury" arising out of
operations performed for the governmental
entity; or
b. Any "bodily injury" or "property damage"
included in the "products -completed
operations hazard".
© 2017 The Travelers Indemnity Company. All rights reserved. Page 1 of 3 Includes copyrighted material of Insurance Services Office, Inc., with its permission.
COMMERCIAL GENERAL LIABILITY
C. INCIDENTAL MEDICAL MALPRACTICE
1. The following replaces Paragraph b. of the
definition of "occurrence" in the
DEFINITIONS Section:
b. An act or omission committed in providing
or failing to provide "incidental medical
services", first aid or "Good Samaritan
services" to a person, unless you are in
the business or occupation of providing
professional health care services.
2. The following replaces the last paragraph of
Paragraph 2.a.(1) of SECTION II - WHO IS
AN INSURED:
Unless you are in the business or occupation
of providing professional health care services,
Paragraphs (1)(a), (b), (c) and (d) above do
not apply to "bodily injury" arising out of
providing or failing to provide:
(a) "Incidental medical services" by any of
your "employees" who is a nurse, nurse
assistant, emergency medical technician
or paramedic; or
(b) First aid or "Good Samaritan services" by
any of your "employees" or "volunteer
workers", other than an employed or
volunteer doctor. Any such "employees"
or "volunteer workers" providing or failing
to provide first aid or "Good Samaritan
services" during their work hours for you
will be deemed to be acting within the
scope of their employment by you or
performing duties related to the conduct
of your business.
3. The following replaces the last sentence of
Paragraph 5. of SECTION III - LIMITS OF
INSURANCE:
For the purposes of determining the
applicable Each Occurrence Limit, all related
acts or omissions committed in providing or
failing to provide "incidental medical
services", first aid or "Good Samaritan
services" to any one person will be deemed to
be one "occurrence".
4. The following exclusion is added to
Paragraph 2., Exclusions, of SECTION I -
COVERAGES - COVERAGE A - BODILY
INJURY AND PROPERTY DAMAGE
LIABILITY:
Sale Of Pharmaceuticals
"Bodily injury" or "property damage" arising
out of the violation of a penal statute or
ordinance relating to the sale of
D.
pharmaceuticals committed by, or with the
knowledge or consent of, the insured.
5. The following is added to the DEFINITIONS
Section:
"Incidental medical services" means:
a. Medical, surgical, dental, laboratory, x-ray
or nursing service or treatment, advice or
instruction, or the related furnishing of
food or beverages; or
b. The furnishing or dispensing of drugs or
medical, dental, or surgical supplies or
appliances.
6. The following is added to Paragraph 4.b.,
Excess Insurance, of SECTION IV -
COMMERCIAL GENERAL LIABILITY
CONDITIONS:
This insurance is excess over any valid and
collectible other insurance, whether primary,
excess, contingent or on any other basis, that
is available to any of your "employees" for
"bodily injury" that arises out of providing or
failing to provide "incidental medical services"
to any person to the extent not subject to
Paragraph 2.a.(1) of Section II — Who Is An
Insured.
BLANKET WAIVER OF SUBROGATION
The following is added to Paragraph 8., Transfer
Of Rights Of Recovery Against Others To Us,
of SECTION IV — COMMERCIAL GENERAL
LIABILITY CONDITIONS:
If the insured has agreed in a contract or
agreement to waive that insured's right of
recovery against any person or organization, we
waive our right of recovery against such person or
organization, but only for payments we make
because of:
a. "Bodily injury" or "property damage" that
occurs; or
b. "Personal and advertising injury" caused by
an offense that is committed;
subsequent to the execution of the contract or
agreement.
E. CONTRACTUAL LIABILITY — RAILROADS
1. The following replaces Paragraph c. of the
definition of "insured contract" in the
DEFINITIONS Section:
c. Any easement or license agreement;
© 2017 The Travelers Indemnity Company. All rights reserved.
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
CG D3 16 02 19
COMMERCIAL GENERAL LIABILITY
2. Paragraph f.(1) of the definition of "insured
contract" in the DEFINITIONS Section is
deleted.
F. DAMAGE TO PREMISES RENTED TO YOU
The following replaces the definition of "premises
damage" in the DEFINITIONS Section:
"Premises damage" means "property damage" to:
a. Any premises while rented to you or
temporarily occupied by you with permission
of the owner; or
b. The contents of any premises while such
premises is rented to you, if you rent such
premises for a period of seven or fewer
consecutive days.
CG D3 16 02 19 © 2017 The Travelers Indemnity Company. All rights reserved.
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
Policy Number: DT22-CO-7W503833-TCT-24
COMMERCIAL GENERAL LIABILITY
COMMERCIAL GENERAL LIABILITY COVERAGE FORM
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered.
Throughout this policy the words "you'' and "your" refer to the Named Insured shown in the Declarations, and
any other person or organization qualifying as a Named
Insured under this policy. The words "we", "us" and
"our" refer to the company providing this insurance.
The word "insured" means any person or organization
qualifying as such under Section II — Who Is An
Insured.
Other words and phrases that appear in quotation
marks have special meaning. Refer to Section V —
Definitions.
SECTION I — COVERAGES
COVERAGE A — BODILY INJURY AND PROPERTY
DAMAGE LIABILITY
1. Insuring Agreement
a. We will pay those sums that the insured
becomes legally obligated to pay as damages
because of "bodily injury" or "property damage"
to which this insurance applies. We will have
the right and duty to defend the insured against
any "suit" seeking those damages. However,
we will have no duty to defend the insured
against any "suit" seeking damages for "bodily
injury" or "property damage" to which this
insurance does not apply. We may, at our
discretion, investigate any "occurrence" and
settle any claim or "suit" that may result. But:
(1) The amount we will pay for damages is
limited as described in Section III — Limits
Of Insurance; and
(2) Our right and duty to defend end when we
have used up the applicable limit of
insurance in the payment of judgments or
settlements under Coverages A or B or
medical expenses under Coverage C.
No other obligation or liability to pay sums or
perform acts or services is covered unless
explicitly provided for under Supplementary
Payments.
b. This insurance applies to "bodily injury" and
"property damage" only if:
CG T1 00 02 19
(1) The "bodily injury" or "property damage" is
caused by an "occurrence" that takes place
in the "coverage territory";
(2) The "bodily injury" or "property damage"
occurs during the policy period; and
(3) Prior to the policy period, no insured listed
under Paragraph 1. of Section II — Who Is
An Insured and no "employee" authorized
by you to give or receive notice of an
"occurrence" or claim knew that the "bodily
injury" or "property damage" had occurred,
in whole or in part. If such a listed insured
or authorized ''employee" knew, prior to the
policy period, that the "bodily injury" or
"property damage" occurred, then any
continuation, change or resumption of such
"bodily injury" or "property damage" during
or after the policy period will be deemed to
have been known prior to the policy period.
c. "Bodily injury" or "property damage" which
occurs during the policy period and was not,
prior to the policy period, known to have
occurred by any insured listed under Paragraph
1. of Section II — Who Is An Insured or any
"employee" authorized by you to give or receive
notice of an "occurrence" or claim, includes any
continuation, change or resumption of that
"bodily injury" or "property damage" after the
end of the policy period.
d. "Bodily injury" or "property damage" will be
deemed to have been known to have occurred
at the earliest time when any insured listed
under Paragraph 1. of Section II — Who Is An
Insured or any "employee" authorized by you to
give or receive notice of an "occurrence" or
claim:
(1) Reports all, or any part, of the "bodily
injury" or "property damage" to us or any
other insurer:
(2) Receives a written or verbal demand or
claim for damages because of the "bodily
injury" or "property damage"; or
(3) Becomes aware by any other means that
"bodily injury" or "property damage" has
occurred or has begun to occur.
© 2017 The Travelers Indemnity Company . All rights reserved.
Includes copyrighted material of Insurance Services Office, Inc. with its permission.
COMMERCIAL GENERAL LIABILITY
c. Method Of Sharing
If all of the other insurance permits contribution
by equal shares, we will follow this method also.
Under this approach each insurer contributes
equal amounts until it has paid its applicable
limit of insurance or none of the loss remains,
whichever comes first.
If any of the other insurance does not permit
contribution by equal shares, we will contribute
by limits. Under this method, each insurer's
share is based on the ratio of its applicable limit
of insurance to the total applicable limits of
insurance of all insurers.
d. Primary And Non -Contributory Insurance If
Required By Written Contract
If you specifically agree in a written contract or
agreement that the insurance afforded to an
insured under this Coverage Part must apply on
a primary basis, or a primary and non-
contributory basis, this insurance is primary to
other insurance that is available to such insured
which covers such insured as a named insured,
and we will not share with that other insurance,
provided that:
(1) The "bodily injury" or "property damage" for
which coverage is sought occurs; and
(2) The "personal and advertising injury" for
which coverage is sought is caused by an
offense that is committed;
subsequent to the signing of that contract or
agreement by you.
5. Premium Audit
a. We will compute all premiums for this Coverage
Part in accordance with our rules and rates.
b. Premium shown in this Coverage Part as
advance premium is a deposit premium only. At
the close of each audit period we will compute
the earned premium for that period and send
notice to the first Named Insured. The due date
for audit and retrospective premiums is the date
shown as the due date on the bill. If the sum of
the advance and audit premiums paid for the
policy period is greater than the earned
premium, we will return the excess to the first
Named Insured.
c. The first Named Insured must keep records of
the information we need for premium
computation, and send us copies at such times
as we may request.
6. Representations
By accepting this policy, you agree:
a. The statements in the Declarations are
accurate and complete;
b. Those statements are based upon
representations you made to us; and
c. We have issued this policy in reliance upon
your representations.
The unintentional omission of, or unintentional error
in, any information provided by you which we relied
upon in issuing this policy will not prejudice your
rights under this insurance. However, this provision
does not affect our right to collect additional
premium or to exercise our rights of cancellation or
nonrenewal in accordance with applicable insurance
laws or regulations.
7. Separation Of Insureds
Except with respect to the Limits of Insurance,
any rights or duties specifically assigned in
Coverage Part to the first Named Insured,
insurance applies:
a. As if each Named Insured were the only
Named Insured; and
b. Separately to each insured against whom claim
is made or "suit" is brought.
8. Transfer Of Rights Of Recovery Against Others
To Us
If the insured has rights to recover all or part of any payment we have made under this Coverage Part,
those rights are transferred to us. The insured must
do nothing after loss to impair them. At our request,
the insured will bring "suit" or transfer those rights
to us and help us enforce them.
9. When We Do Not Renew
If we decide not to renew this Coverage Part, we will
mail or deliver to the first Named Insured shown in
the Declarations written notice of the nonrenewal
not less than 30 days before the expiration date.
If notice is mailed, proof of mailing will be sufficient proof of notice.
SECTION V — DEFINITIONS
1. "Advertisement" means a notice that is broadcast or
published to the general public or specific market
segments about your goods, products or services
for the purpose of attracting customers or
supporters. For the purposes of this definition:
a. Notices that are published include material
placed on the Internet or on similar electronic
means of communication; and
b. Regarding websites, only that part of a website
that is about your goods, products or services
for the purposes of attracting customers or
supporters is considered an advertisement.
© 2017 The Travelers Indemnity Company . All rights reserved.
Includes copyrighted material of Insurance Services Office, Inc. with its permission. and
this
this
CG T1 00 02 19
TRAVELERSJ
WORKERS COMPENSATION
AND
EMPLOYERS LIABILITY POLICY
ENDORSEMENT WC 99 03 76 ( A) -
POLICY NUMBER: UB-7W504031-24-26-G
WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS
ENDORSEMENT - CALIFORNIA
(BLANKET WAIVER)
We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule.
The additional premium for this endorsement shall be % of the California workers' compensation pre- mium.
Schedule
Person or Organization Job Description
As required by written contract
This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated.
(The information below is required only when this endorsement is issued subsequent to preparation of the policy.)
Endorsement Effective Policy No. UB-7W504031-24-26-G Endorsement No.
Insured 05/29/2024
Premium
Insurance Company Countersigned by
Trevelers Property Casualty Company
DATE OF ISSUE: - ST ASSIGN: Page 1 of 1
BEAUMONT
-CALIFORNIA-
California Levine Act Statement
California Government Code Section 84308, commonly referred to as the "Levine Act," prohibits any Beaumont City Council Member from participating in any action related to a contract or application if he or she receives any political contributions totaling more than $500 within the previous twelve months, and for twelve months following the date a final decision from the business/board or applicant.
The Levine Act also requires a member of the Beaumont City Council who has received such a contribution to disclose the contribution on the record of the proceeding.
Current Beaumont City Council Members are listed at:
https://www.beaumontca.gov/29/City-Council
Proposers are responsible for accessing this link to review the names prior to answering the following questions.
1. Have you or your company, or any agent/board member on behalf of you or your company/entity, made any political contributions of more than $500 to any Beaumont City Council Member in the 12 months preceding the date of the submission of your proposal or application, or the anticipated date of any Council action? YES If yes, please identify the Council Member(s):
X NO
2. Do you or your company/entity, or any agency on behalf of you or your company/entity, anticipate or plan to make any political contribution of more than $500 to any Beaumont City Council Member in the 12 months following any Council action related to your proposal or application?
YES If yes, please identify the Council Member(s):
X NO
Answering yes to either of the two questions above does not preclude the Beaumont City Council from awarding a contract or approving an application or any subsequent action. It does however, preclude the identified Council Member(s) from participating in any actions related to your proposal or application.
04/09/2025
Date
Signature, David Heermance
Crosstown Electrical & Data, Inc.
Company/Applicant Name
City of Beaumont I 550 E. 6th Street, Beaumont, CA 92223 I (951) 769-8520 I BeaumontCA.gov
S:EZP
A T T O R NE Y
Slovak Baron Empey Murphy & Pinkney LLP
74774 Highway 111
Indian Wells, CA 92210
Fed. I.D. #33-0833010
Telephone (760) 322-2275 Facsimile (760) 322-2107
April 14, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*TukwetCanyon
Professional services through: 3/31/2025
Additional Charges :
Invoice No. 93336
Amount
3/14/2025 Other professionals charges: Environmental Law Group LLP Invoice 27326 dated 4/10/2025 for 10,985.00 professional services rendered 3/14/2025 through 3/31/2025 Total Additional Charges: $10,985.00
BALANCE DUE - PLEASE SUBMIT PAYMENT: $10,985.00
S:EIP
A a T O i2 I'J _ Y
Slovak Baron Lmpey Murphy & Pinkney LLP
74774 Highway 111
Indian Wells, CA 92210
Fed. I.D. #33-0833010
Telephone (760) 322-2275 Facsimile (760) 322-2107
April 22, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*Wright
Professional services through: 3/31/2025
Additional Charges :
Invoice No. 93420
Amount
7/8/2024 Other professionals charges: Michael E. Gold MD Inc invoice number 2025042251918 dated 16,500.00 4/22/2025 for professional services
3/21/2025 Other professionals charges: Executive Mental Health invoice# SBEMP_20250404 for 14,449.00 professional services
Total Additional Charges:
Previous Balance:
$30,949.00
$0.00
BALANCE DUE - PLEASE SUBMIT PAYMENT: $30,949.00
S:EP
T T O R N E Y S
BILLING DEPARTMENT REPLY To:
[email protected] Palm Springs, California
April 29, 2025
CITY OF BEAUMONT PROFESSIONAL SERVICES THRU: 4/27/2025
TOTAL DUE:
Sincerely,
SBEMP, LLP
By: Accounting Department
$96,827.17
SLOVAK BARON EMPEY MURPHY & PINKNEY
SEP
OR N E Y S
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*Blackwell
Professional services through: 4/27/2025: Invoice # 93426 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$108.50
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR NE YS
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*Bosey Smith
Professional services through: 4/27/2025: Invoice # 93427 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$77.40
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR N E Y S
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*BP CEQA
Professional services through: 4/27/2025: Invoice # 93428 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$15,391.50
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR NE YS
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*Burrows
Professional services through: 4/27/2025: Invoice # 93429 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$1,097.00
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR NE YS
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*Cazares&Rosa
Professional services through: 4/27/2025: Invoice # 93430 BALANCE DUE - PLEASE SUBMIT PAYMENT:
Amount
$514.00
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR N E Y S
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*CCV Holdings
Professional services through: 4/27/2025: Invoice # 93431 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$5,191.82
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR NE YS
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*Deforge Park
Professional services through: 4/27/2025: Invoice # 93432 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$822.05
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR N E Y S
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*Fernley
Professional services through: 4/27/2025: Invoice # 93433 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$2,829.30
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR N E Y S
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*Iloputaife
Professional services through: 4/27/2025: Invoice # 93434 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$328.50
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR NE YS
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*Police Dept
Professional services through: 4/27/2025: Invoice # 93436 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$87.65
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR N E Y S
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*SenecaSprings
Professional services through: 4/27/2025: Invoice # 93437 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$1,476.20
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR NE YS
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*SierraClub
Professional services through: 4/27/2025: Invoice # 93438 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$26.00
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR N E Y S
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*TukwetCanyon
Professional services through: 4/27/2025: Invoice # 93439 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$12,524.50
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR N E Y S
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*Webb
Professional services through: 4/27/2025: Invoice # 93440 BALANCE DUE - PLEASE SUBMIT PAYMENT:
Amount
$165.00
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEW
A T T O R N E Y S
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont*Wright
Professional services through: 4/27/2025: Invoice # 93441 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$26,483.25
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR N E Y S
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont -Gen Lit
Professional services through: 4/27/2025: Invoice # 93442 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$2,947.00
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEW
OR N E Y S
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont-Labor&Employ
Professional services through: 4/27/2025: Invoice # 93443 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$4,780.00
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR NE YS
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont-OverRetainer
Professional services through: 4/27/2025: Invoice # 93445 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$14,477.50
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
SEP
OR NE YS
74774 Highway 111
Indian Wells, CA 92210
Fed. ID #33-0833010
Telephone 760-322-2275
April 29, 2025
City of Beaumont
E-MAIL INVOICES
Our file no:
City of Beaumont -Retainer
Professional services through: 4/27/2025: Invoice # 93446 BALANCE DUE — PLEASE SUBMIT PAYMENT:
Amount
$7,500.00
SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
www.sbemp.com
BEAUMONT
-C A L I F O R N I A-7
Staff Report
TO: City Council
FROM: Doug Story, Community Services Director
DATE May 6, 2025
SUBJECT: Approve a Memorandum of Understanding Between the City of Beaumont and the Beaumont Unified School District to Continue the Public Recreational Aquatics Program
Description A Memorandum of Understanding for access and use of the Beaumont Unified School District's pool facilities.
Background and Analysis:
On May 7, 2024, the City entered into a Memorandum of Understanding (MOU) with the Beaumont Unified School District (District) to offer recreational opportunities for the community utilizing the District's pool. Since the closing of the City's pool in 2021, most residents have limited access to swimming facilities, and in many cases, residents do not have private access to pools elsewhere. This can deprive individuals, particularly those without means of transportation, of opportunities for recreation, exercise, and learning essential water safety skills. This partnership with the District has helped close a gap by providing an accessible, safe, and structured environment for residents to learn and develop aquatic skills and enhance overall community well-being.
The 2024 Summer aquatics program was a tremendous success, drawing strong participation from the community and receiving positive feedback from attendees. Staff's efforts in planning and execution ensured a memorable and well -received experience for participants, setting a solid foundation for future seasonal programs.
Provided as Attachment A is an MOU between the City of Beaumont and the District to continue the Public Recreational Aquatics Program in Beaumont for the Summer of 2025. This MOU has been reviewed by legal counsel and is a result of multiple discussions with the District. This MOU is identical to the one signed in 2024, with the exception of the expanded dates that the program will be operating. The District will be taking this same MOU to their board on May 13, 2025, their next scheduled meeting.
Some of the basic terms of the MOU are as follows:
o Length of Time — expires August 1, 2025
o Termination — 60 -day notice
o Staffing — City to provide all staffing for programs operated within the pool (lifeguards, pool managers) and the District to provide custodial and pool maintenance workers.
o Facility Use Fees — waived
o Staff Fees — are paid by the City per rates included as "Exhibit B" Fiscal Impact:
The aquatics program is included in the FY 2024/25 Budget for Department 1550.
Additionally, future funding for this program has been included in the FY 2025/26 budget request.
The cost of this program includes the part-time salaries for lifeguards and a pool manager, currently budgeted as $32,000, as well as the operational and programming costs for the aquatics season, currently budgeted at $20,000. The estimated cost of reimbursable staff fees to the District for the use of the pool is estimated to be $22,000.
The cost to prepare this staff report is estimated to be $280.
Recommended Action:
Authorize the City Manager to sign a Memorandum of Understanding between the City of Beaumont and the Beaumont Unified School District to continue the Public Recreational Aquatics Program.
Attachments:
A. Memorandum of Understanding
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF BEAUMONT
AND
THE BEAUMONT UNIFIED SCHOOL DISTRICT
FOR THE USE OF THE FACILITY AT BEAUMONT HIGH SCHOOL
This Memorandum of Understanding ("MOU") is by and between the CITY OF BEAUMONT ("City"), a California municipal corporation and public body, and the BEAUMONT UNIFIED SCHOOL DISTRICT ("District"), a school district organized and existing under the laws of the State of California. This MOU is entered into as of , 2025 ("Effective Date"), as a collaborative effort to create recreational opportunities at the District's facilities. City and District are collectively referred to as "Parties" and individually as "Party".
Nothing in this MOU shall be construed to intend that the Facility" (as defined below) is surplus to the needs of the District as defined in California Government Code Section 11011.
RECITALS
WHEREAS, the District is in legal control and possession of real property depicted in the attached Exhibit A ("Facility") at Beaumont High School, 39139 Cherry Valley Blvd, Beaumont, CA 92223, which is capable of being used jointly by the Parties for recreational purposes;
WHEREAS, California law permits the Beaumont Unified School District Board of Trustees to grant the use of school buildings or grounds for public, literary, scientific, recreational, or educational meetings, or for the discussion of matters of general or public interest;
WHEREAS, District use of the Facility is generally during the school year with limited needs during the summer months and City needs are generally for the summer months;
WHEREAS, the District has limited funds for maintaining and improving the Facility and the City has limited land and resources for conducting City sponsored recreational programs;
WHEREAS, the Parties desire to use the Facility for community recreational purposes and enhance opportunities for recreational use and programs; 1 Rev. 4-17-2024
WHEREAS, the City has experience operating recreational facilities, including pools, of a similar scale or complexity and has demonstrated the skills, knowledge and experience necessary to supervise staff, including but not limited to lifeguards; WHEREAS, pool use and swimming is permitted only under direct supervision of certified persons. At minimum, a valid lifeguard and/or water safety instructor certificate; with certification of CPR and First Aid must be on file with the District's office to be qualified to supervise swimmers;
WHEREAS, the District desires to have sole and exclusive use during school hours and priority use after school hours on days when school is in session. Use of school facilities will be permitted based on availability in relation to the District's instructional and sports leagues calendars; and
WHEREAS, the Parties now wish to establish one comprehensive agreement that addresses the Parties respective terms for Facility use.
NOW, THEREFORE, and in consideration of the above, the Parties hereby agree as follows:
1. Facilitron Online Reservation Portal System
Facilitron, the District's online reservation portal system, for the Facility includes Terms of Use applicable to the City's use of the Facility. These Terms of Use are located on the District's website at: httjs:// www.facilitron.com/busd92223 . The District herein incorporates the Terms of Use into this MOU. To the extent that there are conflicts or inconsistencies between the MOU and the Terms of Use, this MOU shall control.
2. Term and Termination
A. Term. The term of this MOU shall begin on the Effective Date and shall end on August 1, 2025, unless the term of this MOU is otherwise terminated or extended as provided in this MOU.
B. Termination. Either Party may terminate this MOU with or without cause upon sixty (60) days' advance written notice to the other Party.
3. Rights and Obligations of the Parties
A. Rights and Responsibilities of the City. Under this MOU, the City is responsible for the following:
1) Staffing. The City shall be responsible, at its own cost, for recruiting, selecting, training and employing suitable, properly trained and 2 Rev. 4-17-2024
licensed/certificated staff needed to sufficiently supervise the Facility, including lifeguards, water safety instructors, and community service staff. All appointed candidates for employment for City aquatics programs at the Facility must pass (1) a drug and alcohol screening, (2) a tuberculosis (TB) screening, and (3) background check prior to appointment. All water safety staff and lifeguards selected by the City must have completed, and remain in good standing with, all certifications required by the American Lifeguard Association or the American Red Cross as the national certifying agencies for lifeguards. The City will ensure that a sufficient number of water safety staff and lifeguards are supervising City aquatics programs at all times, as specified in the most recent American Red Cross Lifeguarding Manual. To the extent the District, in its reasonable discretion, becomes concerned about the suitability of staff or supervision for City use and reasonably believes that the unsuitability could endanger the safety of persons or property, it may at any time suspend City use of the Facility immediately, until assurances acceptable to District staff, in their reasonable discretion, can be made by the City satisfying District safety concerns. 2) Emergency Action Plan. The City will develop and adopt emergency action plan(s) for the Facility, including site maps and the specific location of necessary safety equipment. Maps and other information regarding the location and use of such equipment will be made available to the City upon request pursuant to this MOU. To the extent the District, in its reasonable discretion, becomes concerned about the suitability of emergency action plans or other safety -related components of the City use, and reasonably believes that the unsuitability could endanger the safety of persons or property, it may at any time suspend City use of the Facility immediately, until assurances acceptable to District staff, in their reasonable discretion, can be made by the City satisfying District safety concerns. City shall notify the District as soon as practicable regarding an emergency at the Facility.
3) City Facility Use Fee. The City shall reimburse the District pursuant to Exhibit B ("City Facility Use Fee"). Requests for payment of the City Facility Use Fee shall be submitted by the District to the City for reimbursement within a reasonable time, and shall be payable within thirty (30) days of City receipt thereof. All or portions of City Facility Use Fees reasonably in dispute may be withheld until resolution of the underlying dispute.
4) Maintenance, Repair, and Cleaning. The City shall return the Facility and associated equipment to the District, after each use, in substantially the same state in which it is received, ordinary wear and tear excepted. Damages or discrepancies observed by District staff 3 Rev. 4-17-2024
attributable to the City's use of Facility under this MOU shall be reported to the City within a reasonable time, not to exceed sixty (60) days. The City shall review damage reports for appropriateness and shall reimburse the District for damages not reasonably in dispute within thirty (30) days of receipt of such reports. The City is not responsible for damages caused by the District's neglect or misuse or by natural disaster. The City will immediately report any damage, needed repair, unsafe condition or maintenance issue to the District upon discovery.
B. Rights and Responsibilities of the District. Under this MOU, the District is responsible for the following:
1) Maintenance, Repair, and Cleaning. Except as otherwise set forth hereunder, the District agrees to provide all routine maintenance required for the Facility. City staff will be provided with an on -call name and contact information for District staff that can respond to requests for emergency repairs occurring outside of the hours of 6:00 am to 2:30 pm on weekdays. The City, in its reasonable discretion, can review a necessary repair to determine whether City use can occur safely notwithstanding the need for repair, and, may elect to either (1) contact District staff for an emergency repair, (2) operate the use (if safe) notwithstanding the repair, or (3) postpone or cancel the City use until the routine repair can be made during regular business hours. In the event the City requires an emergency repair, the District will charge the City direct labor and materials costs for repairs incurred outside of regular business hours. Labor and materials costs will not be charged to City for repairs made during regular business hours. Costs incurred for repair required during non -regular business hours shall be invoiced to the City for reimbursement within a reasonable period of time not to exceed sixty (60) days. Reimbursement requests shall be submitted by the District to the City, and amounts not reasonably in dispute shall be payable within thirty (30) days of City receipt thereof.
2) Pool Use and Schedule, City Usage Times. The Parties currently agree to the proposed use schedule and class descriptions in Exhibit C attached hereto. The City's use shall be reserved solely through Facilitron, unless otherwise agreed to in writing between the Parties.
3) Emergency or Repair Closures. In the event the District in its reasonable discretion requires to close the Facility due to reasons outside of the District's reasonable control, or for repairs which require such closure, the District shall notify the City as soon as practicable, and the City shall comply with the District's direction to cancel or postpone City use. In the event of a closure under this 4 Rev. 4-17-2024
Paragraph, no City Facility Use Fee shall be due to the District for times when the Facility is not available for the City's use. In the event of a closure under this Paragraph, the Parties shall meet and confer in good faith regarding rescheduling or relocation of the cancelled City use.
C. Cooperation and Noninterference. The Parties shall use best efforts to cooperate to accomplish the purposes of this MOU. Neither Party shall unreasonably interfere with the other Party's rights or obligations under this MOU. To the extent the rights and obligations hereunder involve performance of a specific or specialized activity or program, neither Party shall conduct competitive activities or programs at a time, in a location, or in a manner which may reasonably be expected to discourage participation in or otherwise detract from the activity or program conducted pursuant to the rights and obligations of the other Party. Notwithstanding the foregoing, District reserves the right to have employee(s) at the Facility during City's use to monitor the use and ensure the City complies with the terms of this MOU. In the event that the police department determines that its presence is required at the Facility for City's use or event, City shall be solely responsible for complying with such request; provided, however, that District agrees to cooperate if necessary.
D. Materials and Equipment. Except as otherwise stated in this MOU, each Party shall provide all materials and equipment, including, but not limited to, safety flotation devices or kickboards, as may be necessary for that Party's performance hereunder, at that Party's sole cost and expense. .
E. Access to Facility. Unless otherwise stated, the rights of use or access granted pursuant to this MOU shall apply to the officers, employees, subcontractors, agents, and volunteers of the applicable Party provided that such persons shall be subject to the terms and conditions of this MOU. City is only permitted to enter District property to the extent necessary to effectuate the performance of this MOU. City shall comply with all applicable security and safety procedures, protocols, and practices required by the District. Access to District facilities is not permitted unless otherwise approved in accordance with the procedures provided in this MOU.
F. Compliance with Law. Each Party shall, at its sole expense, comply with all local, state, and federal laws and regulations applicable to the performance of this MOU, including obtaining and maintaining any required approval or permit necessary therefor. Each Party is independently responsible for reviewing and complying with all applicable laws.
G. Modifications to Facility. City shall make no modifications nor construct any improvements to the Facility without advance written consent from the District, in its sole discretion.
5 Rev. 4-17-2024
H. Substances. No alcoholic beverages or illegal substances will be permitted at the Facility.
4. City Insurance
City shall provide to District certificates of public liability insurance and property damage insurance in not less than the following amounts:
Bodily Injury Liability $2,000,000 each occurrence
Bodily Injury Liability $4,000,000 aggregate
Property Damage Liability $2,000,000 each occurrence
Property Damage Liability $4,000,000 aggregate
City shall provide to District a current and valid Certificate of Insurance naming the District as an additional insured in said public liability and property damage insurance policy. Said public liability insurance shall be placed with admitted insurers in California with a rating of "A" or better from the current Best Rating Guide. ]
5. Indemnification
The City agrees to defend, indemnify and hold harmless the District, its board of trustees, agents and employees, individually and collectively, from and against any and all costs, losses, claims, actions, court costs, attorneys fees, and judgments arising from personal injuries, property damage or otherwise that may arise out of or in connection with the City's negligence, recklessness or willful misconduct while using or occupying the Facility, furniture or equipment, including but not limited to:
A. Death or bodily injury to a persons, loss of or injury of property, or any loss, damage or expense which may have been sustained by the District or any persons, firm or corporation employed by the District or in connection with the activity called for in this MOU, except such injuries, losses, damages or expense to the extent caused by the negligence, recklessness or willful misconduct by the District or any persons, firms, corporations or contractors employed by, or contracted with the District.
B. Any injury to or death of persons or damage of property, any loss or theft sustained by persons, firms or corporations, including the City, arising from any act of neglect, default omission, negligence or willful misconduct of the City, its members, agents, or any person, firm or corporation employed by the City, either directly or by independent contract, spectators, participants or guests attributable in connection with the activity covered by this MOU, on or off District property. The City, as its own expense, cost, and risk, shall defend any and all actions, suits or other proceedings that may be brought or instituted against the District, its board, officers, agents, or employees and shall pay or satisfy and such claim, demand, liability or judgment rendered against the District, its board, officers, agents, or employees in any action, suit or other proceedings as result of, or arising out of the activity called for in this MOU, 6 Rev. 4-17-2024
except for such actions, suits, proceedings, demands, liability, judgment, injuries, losses, damages or expense to the extent arising out of or caused by the negligence, recklessness or willful misconduct by the District or any persons, firm, corporation or contractor employed by, or contracted with, the District.
6. Notices
All notices and other communications to be given by either Party must be in writing and may be effective by personal delivery, overnight courier, or first class or certified mail, return receipt requested and addressed to the appropriate Party as follows:
To City:
To District:
Doug Story, Community Service Director
550 E. 6th Street
Beaumont, CA 92223
Ana Gonzalez, Director of Facilities
350 Brookside Ave.
Beaumont, CA 92223
Notice shall be deemed received on the date personally delivered or, if mailed, three (3) days after deposit in the mail. Notice provided by overnight delivery shall be deemed received on the next business day after delivery by the overnight delivery service. A Party may change its addressee by written notice to the other party at any time.
7. Remedies and Breach
A. Cure Period. In the event of a default of the terms of this MOU by either Party, the non -defaulting Party shall give ten (10) days written notice and opportunity to cure (the "Cure Period") to the defaulting Party, and, if the default remains uncured at the end of the Cure Period, may terminate this MOU and shall have any and all rights and remedies available at law or in equity to recover for the uncured default. The Parties may agree in writing to a longer or shorter Cure Period. If a default cannot reasonably be cured in the Cure Period or presents a substantial risk to the health and safety of either Party or the public, the non -defaulting Party may immediately terminate this MOU and seek any and all rights and remedies available at law or in equity.
B. Rights and Remedies Cumulative. The rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.
8. Subcontract and Assignment
Neither Party shall have the right to assign its right or obligations under this MOU without written consent of the other Party.
7 Rev. 4-17-2024
9. Survival
All obligations arising prior to the expiration or termination of this MOU and all provisions of this MOU allocating liability between the Parties shall survive the expiration or termination of this MOU.
9. Applicable Law and Venue
This MOU shall be interpreted and enforced under the laws of the State of California. In the event that either Party brings any action against the other under this MOU, the Parties agree that trial of such action shall be vested exclusively in Riverside County.
10. Attorneys' Fees
If any legal action is commenced between the Parties to this MOU, each Party shall bear its own costs of suit, including attorneys' fees.
11. Severability
If any term, provision, covenant, or condition of this MOU shall be determined to be invalid, void, or unenforceable by a court of competent jurisdiction, the remainder of this MOU shall not be affected to the extent the remaining provisions are not rendered impractical to perform taking into consideration the purposes of this MOU.
12. Waiver
The waiver by either party of any breach of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, condition, or any subsequent breach of the same or any other term, covenant, or condition herein contained.
13. Successors and Assigns
This MOU shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, legal representatives, successor, and assigns.
14. Captions
The captions, subtitles, and headings contained in this MOU are for convenience only and shall not in any way affect the meaning or interpretation hereof or serve as evidence of the interpretation hereof, or of the intention of the Parties hereto.
15. Entire Agreement
This MOU, including the exhibits and any all documents referenced herein constitute the entire agreement of the Parties and supersede all prior negotiations and agreements whether written or oral.
8 Rev. 4-17-2024
16. Construction
The terms of this MOU shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this MOU or any other rule of construction which might otherwise apply.
17. Amendments
This MOU may be amended only by written agreement and no purported oral amendment to this MOU shall be valid. The City Manager or his or her designee may execute and approve amendments to this MOU on behalf of the City which in the City Manager's reasonable discretion not substantially modify the terms and conditions of this MOU, provided, however, that the City may instead require City Council for approval for any proposed amendment.
18. No Third -Party Beneficiaries
There are no intended third -party beneficiaries under this MOU and no such third parties shall have any rights or obligations hereunder.
19. Nondiscrimination
Each Party covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this MOU there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.
20. Authority to Execute
The persons executing this MOU on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this MOU on behalf of said Party, (iii) by so executing this MOU, such Party is formally bound to the provisions of this MOU, and (iv) that entering into this MOU does not violate any provision of any other agreement to which said Party is bound.
21. Counterparts
This MOU and all amendments and supplements to it may be executed in counterparts, and all counterparts together shall be construed as one document. 9 Rev. 4-17-2024
CITY OF BEAUMONT BEAUMONT UNIFIED SCHOOL DISTRICT
By: By:
Elizabeth Gibbs
City Manager
Dated: Dated:
Mays Kakish
Superintendent
10 Rev. 4-17-2024
Exhibit A
THE FACILITY
Beaumont High School Pool
39139 Cherry Valley Blvd, Beaumont, CA 92223
Slingr,tv.
11 Rev. 4-17-2024
Exhibit B
FACILITY USE
PERSONNEL FEES
Position
Hourly Rate
Custodian
56.92 Pool Maintenance Worker
56.38 12
Rev. 4-17-2024
Exhibit C
PROPOSED USE SCHEDULE AND CLASS DESCRIPTIONS
SWIM LESSONS
• Monday —Thursday
• 45 -minute sessions
• 2 weeks long
• Limit 8 per class
o 6 per class in pre-school level
• Cost per session: $50
Lesson Dates: All times 2pm to 8pm
FOUR TWO-WEEK SWIM SESSIONS:
• June 9th —June 19th
• June 23rd —July 3td
• July 7th —July 17th
• July 21st —July 31st
WATER AEROBICS SESSIONS
• 4 Sessions — Same as above schedule
• 2X per week — Monday/Wednesday
• 7:OOpm — 7:45pm
Additional Dates Requested:
• Saturday, May 31— Staff Training
• Saturday, June 7 — Swim Evaluations/Additional Staff Training • Saturday, June 14 — Swim Evaluations
• Saturday times: 9AM — 3PM
Time
Preschool
Level 1/2
Level 3
Water
Aerobics
2:30 p.m.
•
'
'
3:25 p.m.
•
'
'
4:20 p.m.
•
•
•
5:15 p.m.
•
'
'
6:10 p.m.
•
•
•
7:00 p.m.
'
CLASS DESCRIPTIONS:
Preschool (Starfish) — Introduction to independent pool safety, water entry and exit and basic swimming skills such as: kicking, bubble blowing, floating and underwater exploration. 13 Rev. 4-17-2024
Level 1/2 (Seahorse)- Introduction to in -water safety skills such as water entry and exit, fully submerged face, jumping, kicking, arm movement, breath control, supported floating, rolling over and personal safety. Students will learn to float without support and recover to a vertical position, glides, front arm motion, back arm motion, flutter kicks and rhythmic breathing.
Level 3 (Otters) — Students will learn to combine and coordinate arm motion, leg motion and rhythmic breathing, diving from the side of pool, back crawl, elements of breaststroke and fundamentals of treading water.
STAFFING STRUCTURE:
Recreation
Manager
Recreation
Coordinator
Rec
Specialist
Pool
Manager
Lifeguard
WSI
• The Pool Manager will oversee check-in/registration prior to the start of class, ensure all equipment is available for staff and answer questions from participants. • Lifeguards will be assigned to Swim Instructors at a 1:1 ratio. • One floating lifeguard in addition to 1:1 ratio
• One instructor for 10 aerobic participants.
• All staff are certified as lifeguards.
14 Rev. 4-17-2024
BEAUMONT
-C A L I F O R N I A
Staff Report
TO: City Council
FROM: Kari Mendoza, Administrative Services Director
DATE May 6, 2025
SUBJECT: A Resolution of the City Council of the City of Beaumont for Authorization of the Execution of the Certifications of Assurances and Authorized Agent Forms for the Low Carbon Transit Operations Program for a Free Transit Rides Promotion
Description Approval of a resolution required to complete the project allocation request under the FY 2024/2025 Low Carbon Transit Operations Program (LCTOP) cycle using deferred funds from FY 2022/2023.
Background and Analysis:
The City of Beaumont Transit Division has unexpended funds from its FY 2022/2023 allocation under LCTOP. These funds were originally designated for a discounted fare promotion, which remains active and is proceeding as planned.
Due to a revenue surplus in FY 2024/2025, the Transit Division was able to defer some use of the FY 2022/2023 LCTOP funds. As a result, staff is now requesting to reallocate these funds during the FY 2024/2025 LCTOP cycle to support an additional eligible project titled Free Transit Rides.
The proposed Free Transit Rides project will be implemented in FY 2025/2026 and includes:
• A Youth Ride Free program providing free transit access to youth riders for the entire fiscal year
• Ten designated fare -free days for all riders
This project aligns with the Transit Division's goals to increase ridership, improve access to public transportation, and enhance overall mobility. It is also expected to benefit priority populations by promoting transit use in disadvantaged communities and supporting regional connectivity. The total project cost is $93,700, of which $46,850 is estimated to directly benefit priority populations, as defined by LCTOP criteria.
To proceed with this reallocation, Caltrans requires an adopted resolution authorizing the execution of the Certification and Assurances and Authorized Agent forms.
Fiscal Impact:
The proposed project will be funded using deferred FY 2022/2023 LCTOP funds and any interest accrued.
The estimated cost to prepare this staff report is $97.
Recommended Action:
Waive the full reading and adopt by title only: "A Resolution of the City Council of the City of Beaumont for Authorization of the Execution of the Certifications of Assurances and Authorized Agent Forms for the Low Carbon Transit Operations Program for a Free Transit Rides Promotion."
Attachments:
A. FY 2024-2025 LCTOP Resolution
B. Authorized Agent Form
C. Certifications and Assurances
RESOLUTION #2025 -
AUTHORIZATION FOR THE EXECUTION OF THE
CERTIFICATIONS AND ASSURANCES AND AUTHORIZED AGENT FORMS
FOR THE LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP)
FOR THE FOLLOWING PROJECT(S):
FREE TRANSIT RIDES, $93,700
WHEREAS, the City of Beaumont is an eligible project sponsor and may receive state funding from the Low Carbon Transit Operations Program (LCTOP) for transit projects; and WHEREAS, the statutes related to state -funded transit projects require a local or regional implementing agency to abide by various regulations; and WHEREAS, Senate Bill 862 (2014) named the Department of Transportation (Department) as the administrative agency for the LCTOP; and
WHEREAS, the Department has developed guidelines for the purpose of administering and distributing LCTOP funds to eligible project sponsors (local agencies); and WHEREAS, the City of Beaumont wishes to delegate authorization to execute these documents and any amendments thereto to the City Manager.
WHEREAS, the City of Beaumont wishes to implement the following LCTOP project(s) listed above,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Beaumont that the fund recipient agrees to comply with all conditions and requirements set forth in the Certification and Assurances and the Authorized Agent documents and applicable statutes, regulations and guidelines for all LCTOP funded transit projects.
NOW THEREFORE, BE IT FURTHER RESOLVED that the City Manager be authorized to execute all required documents of the LCTOP program and any Amendments thereto with the California Department of Transportation.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the City of Beaumont that it hereby authorizes the submittal of the following project nomination(s) and allocation request(s) to the Department in FY2024-2025 LCTOP funds:
Project Name: Free Transit Rides
Short description of project: A year -long systemwide promotion giving free transit rides to youth, plus free rides for all riders on ten designated days.
Amount of LCTOP funds requested: $93,700
Benefit to a Priority Populations: Promotion provides incentives to disadvantaged community, promotes the use of public transportation, and promotes transit connectivity.
Amount to benefit Priority Populations: $46,850
Contributing Sponsor: Eric Debate, Transit Manager, Riverside County Transportation Commission (RCTC)
MOVED, PASSED, AND ADOPTED this 6th day of May 2025 by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
By:
Mike Lara, Mayor, City of Beaumont
ATTEST:
By:
Deputy City Clerk
� atifrww
FY 2024-2025 LCTOP
Authorized Agent
AS THE Mayor
(Chief Executive Officer/Director/President/Secretary)
OF THE City of Beaumont
(Name of County/City/Transit Organization)
I hereby authorize the following individual(s) to execute for and on behalf of the named Regional Entity/Transit Operator, any actions necessary for the purpose of obtaining Low Carbon Transit Operations Program (LCTOP) funds provided by the California Department of Transportation, Division of Local Assistance. I understand that if there is a change in the authorized agent, the project sponsor must submit a new form. This form is required even when the authorized agent is the executive authority himself. I understand the Board must provide a resolution approving the Authorized Agent. The Board Resolution appointing the Authorized Agent is attached.
Elizabeth Gibbs, City Manager OR
(Name and Title of Authorized Agent)
Kari Mendoza, Administrative Services Director OR
(Name and Title of Authorized Agent)
Jennifer Ustation, Finance Director
(Name and Title of Authorized Agent)
Mike Lara Mayor
(Print Name) (Title)
(Signature)
day
Approved this 6 of May 2025
� atifrww
FY 2024-2025 LCTOP
Certifications and Assurances
Lead Agency: City of Beaumont
Project Title: Free Transit Rides
Prepared by: Leslie Pelayo
The California Department of Transportation (Caltrans) has adopted the following Certifications and Assurances for the Low Carbon Transit Operations Program (LCTOP).
As a condition of the receipt of LCTOP funds, Lead Agency must comply with these terms and conditions.
A. General
1. The Lead Agency agrees to abide by the current LCTOP Guidelines and applicable legal requirements.
2. The Lead Agency must submit to Caltrans a signed Authorized Agent form designating the representative who can submit documents on behalf of the project sponsor and a copy of the board resolution appointing the Authorized Agent.
B. Project Administration
1. The Lead Agency certifies that required environmental documentation is complete before requesting an allocation of LCTOP funds. The Lead Agency assures that projects approved for LCTOP funding comply with Public Resources Code § 21 100 and § 21150.
2. The Lead Agency certifies that a dedicated bank account for LCTOP funds only will be established within 30 days of receipt of LCTOP funds.
3. The Lead Agency certifies that when LCTOP funds are used for a transit capital project, that the project will be completed and remain in operation for its useful life.
4. The Lead Agency certifies that it has the legal, financial, and technical capacity to carry out the project, including the safety and security aspects of that project.
5. The Lead Agency certifies that they will notify Caltrans of pending litigation, dispute, or negative audit findings related to the project, before receiving an allocation of funds.
6. The Lead Agency must maintain satisfactory continuing control over the use of project equipment and facilities and will adequately maintain project equipment and facilities for the useful life of the project.
7. Any interest the Lead Agency earns on LCTOP funds must be used only on approved LCTOP projects.
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FY 2024-2025 LCTOP
8. The Lead Agency must notify Caltrans of any changes to the approved project with a Corrective Action Plan (CAP).
9. Under extraordinary circumstances, a Lead Agency may terminate a project prior to completion. In the event the Lead Agency terminates a project prior to completion, the Lead Agency must (1) contact Caltrans in writing and follow-up with a phone call verifying receipt of such notice; (2) pursuant to verification, submit a final report indicating the reason for the termination and demonstrating the expended funds were used on the intended purpose; (3) submit a request to reassign the funds to a new project within 180 days of termination.
C. Reporting
1. The Lead Agency must submit the following LCTOP reports:
a. Annual Project Activity Reports October 30th each year. b. A Close Out Report within six months of project completion. c. The annual audit required under the Transportation Development Act (TDA), to verify receipt and appropriate expenditure of LCTOP funds. A copy of the audit report must be submitted to Caltrans within six months of the close of the year (December 31) each year in which LCTOP funds have been received or expended.
d. Project Outcome Reporting as defined by CARB Funding Guidelines. e. Jobs Reporting as defined by CARB Funding Guidelines.
2. Other Reporting Requirements: CARB develops and revises Funding Guidelines that will include reporting requirements for all State agencies that receive appropriations from the Greenhouse Gas Reduction Fund. Caltrans and project sponsors will need to submit reporting information in accordance with CARB's Funding Guidelines, including reporting on greenhouse gas reductions and benefits to disadvantaged communities.
D. Cost Principles
1. The Lead Agency agrees to comply with Title 2 of the Code of Federal Regulations 225 (2 CFR 225), Cost Principles for State and Local Government, and 2 CFR, Part 200, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments.
2. The Lead Agency agrees, and will assure that its contractors and subcontractors will be obligated to agree, that:
a. Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allow ability of individual project cost items and
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FY 2024-2025 LCTOP
b. Those parties shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. Every sub -recipient receiving LCTOP funds as a contractor or sub -contractor shall comply with
Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments.
3. Any project cost for which the Lead Agency has received funds that are determined by subsequent audit to be unallowable under 2 CFR 225, 48 CFR, Chapter 1, Part 31 or 2 CFR, Part 200, are subject to repayment by the Lead Agency to the State of California (State). All projects must reduce greenhouse gas emissions, as required under Public Resources Code section 75230, and any project that fails to reduce greenhouse gases shall also have its project costs submit to repayment by the Lead Agency to the State. Should the Lead Agency fail to reimburse moneys due to the State within thirty (30) days of demand, or within such other period as may be agreed in writing between the Parties hereto, the State is authorized to intercept and withhold future payments due the Lead Agency from the State or any third -party source, including but not limited to, the State Treasurer and the State Controller.
A. Record Retention
1. The Lead Agency agrees and will assure that its contractors and subcontractors shall establish and maintain an accounting system and records that properly accumulate and segregate incurred project costs and matching funds by line item for the project.
The accounting system of the Lead Agency, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles (GAAP) and enable the determination of incurred costs at interim points of completion. All accounting records and other supporting papers of the Lead Agency, its contractors and subcontractors connected with LCTOP funding shall be maintained for a minimum of three (3) years after the "Project Closeout" report or final Phase 2 report is submitted (per CARB Funding Guidelines, Vol. 3, page 3.A-16), and shall be held open to inspection, copying, and audit by representatives of the State and the California State Auditor.
Copies thereof will be furnished by the Lead Agency, its contractors, and subcontractors upon receipt of any request made by the State or its agents. In conducting an audit of the costs claimed, the State will rely to the maximum extent possible on any prior audit of the Lead Agency pursuant to the provisions of federal and State law. In the absence of such an audit, any acceptable audit work performed by the Lead Agency's external and internal auditors may be relied upon and used by the State when planning and conducting additional audits.
2. For the purpose of determining compliance with Title 21, California Code of Regulations, Section 2500 et seq., when applicable, and other matters connected with
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FY 2024-2025 LCTOP
the performance of the Lead Agency's contracts with third parties pursuant to Government Code § 8546.7, the project sponsor, its contractors and subcontractors and the State shall each maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts. All of the above referenced parties shall make such materials available at their respective offices at all reasonable times during the entire project period and for three (3) years from the date of final payment. The State, the California State Auditor, or any duly authorized representative of the State, shall each have access to any books, records, and documents that are pertinent to a project for audits, examinations, excerpts, and transactions, and the Lead Agency shall furnish copies thereof if requested.
3. The Lead Agency, its contractors and subcontractors will permit access to all records of employment, employment advertisements, employment application forms, and other pertinent data and records by the Civil Rights Department, or any other agency of the State of California designated by the State, for the purpose of any investigation to ascertain compliance with this document.
F. Special Situations
Caltrans may perform an audit and/or request detailed project information of the project sponsor's LCTOP funded projects at Caltrans' discretion at any time prior to the completion of the LCTOP.
I certify all these conditions will be met.
Elizabeth Gibbs City Manager
(Print Authorized Agent) (Title)
(Signature) (Date)
BEAUMONT
-C A L I F O R N I A
Staff Report
TO: City Council
FROM: Thaxton Van Belle, Director of Water Reclamation
Sunshine Sanchez, Management Analyst
DATE May 6, 2025
SUBJECT: Follow -Up Report No. 4 — Sewer Mainline Failure and Emergency Repairs in Fairway Canyon
Description Local emergency due to the sewer mainline failure in Fairway Canyon.
Background and Analysis:
On March 3, 2025, City staff were notified of a major sewer mainline failure in the Fairway Canyon community caused by slope erosion behind Hogan Drive homes. The incident led to a manhole collapse and a subsequent 15 -inch sewer mainline failure, resulting in a raw sewage spill and the need for emergency response measures.
On March 4, 2025, City Council adopted a Resolution titled, "A Resolution Of The City Council Of The City Of Beaumont Declaring A Local Emergency And Authorizing The City Manager To Take Necessary Action", which authorized emergency expenditures in an amount not to exceed $500,000, directed staff to provide ongoing reports at each subsequent City Council meeting under California Public Contract Code Section 22050, and authorized the City Manager to take all necessary actions to mitigate further damage and ensure public health and safety.
On March 18, 2025, staff brought a follow-up status report regarding the emergency repairs in Fairway Canyon. No action was taken, but updated pictures were provided, along with an estimated amount of $21,000 that has been spent.
On April 1, 2025, staff brought a follow-up status report regarding the emergency repairs in Fairway Canyon. The full financial impact to date was $432,101, including requisitions added and costs on bypass pumping, equipment, and fuel. Staff were approved for an additional $500,000 to increase the total allocation to $1,000,000 to cover the costs for repairs.
On April 15, 2025, staff provided a follow-up regarding the emergency repairs in Fairway Canyon, which included construction progress updates with pictures and expenditures paid to date.
Construction activity update from April 15 to April 22, 2025:
• April 15: Demolition of the concrete disassembled and staged for removal. • April 16: Forming and pouring of the new sidewalk was done. • April 17: Sod was laid.
• April 18: Forms and caution tape were removed.
The costs are displayed on the table below:
Expenditures as of April 22, 2025
Encumbered
Amount Spent
Fuel for bypass pumps
$ 2,346.00
$ 3,640.00
Miscellaneous equipment
$ 1,294.00
$ 1,294.00
Charles King (Bypass pumps)
$ 40,000.00
$ 23,552.00
Weaver Grading
$ 389,500.00
$ 295,000.00
Total
$ 432,101.00
$ 323,486.00
Below are updated photos from the worksite:
Figure 1 - Completed New Sidewalk
Figure 2 — New Sod
Fiscal Impact:
Labor and material costs are being tracked to identify further expenses. A future budget amendment may be necessary to support ongoing emergency response and repair efforts.
The estimated cost to prepare this staff report is $300.
Recommended Action:
Direct staff to return at the next Council meeting with a follow-up report on emergency response efforts, expenditures, and timeline updates.
BEAUMONT
-C A L I F O R N I A
Staff Report
TO: City Council
FROM: Lisa Leach, CPA, Assistant Finance Director
DATE May 6, 2025
SUBJECT: 2025 City of Beaumont Financial Policies Updates Description Establish Policies for Internal Service Fund and update the 2025 Financial Policies.
Background and Analysis:
Financial policies provide guidelines for financial decision -making and are central to a strategic, long-term approach to financial management. Governments adopt formal financial policies to institutionalize good financial management practices, clarify strategic intent, promote long-term thinking, manage risks, and set decision -making boundaries. GFOA best practices recommend that governments formally adopt financial policies. Financial policies, which are adopted by the City Council, provide written guidance for how local government officials and staff should approach fiscal issues and core financial areas.
As part of the budget process, each year, the City's financial policies will be reviewed and updated by the finance department and prepared for City Council adoption. The financial policies will also be used during the Citywide audits to assess compliance and risk, and will be included in the City's budget book. Attached are the proposed 2025 City of Beaumont Financial Policies with recommended updates and changes in red. Minor language changes can be found on pages 21, 28, 29, 64, 65, and
66. An updated Purchasing and Contracts Table has been added to page 87, and the verbiage from the Ordinance has been added to pages 90 and 91. Language for responsibilities of grant approvals has been added to page 100, and the final edits occur on pages 138 and 139 of the Deposits Policy to include the Public Works Department.
Both the 2025 City of Beaumont and Financial Policies and the new Internal Service Fund Policy have been reviewed by the Finance and Audit Committee and were recommended to be forwarded on to City Council for adoption at the April 28, 2025, meeting.
New Internal Service Fund Policy
The City of Beaumont recognizes the need for an efficient and transparent process to manage aging City assets —including vehicles, equipment, facilities, and IT infrastructure. The proposed policy establishes guidelines for evaluating asset life cycles, replenishing funds, and ensuring timely replacements based on usage, condition, and technological advancements.
The policy mandates the formation of a Review Committee, composed of key departmental representatives, to assess asset conditions and replacement needs on an annual basis. This process aims to enhance fiscal responsibility by minimizing budgetary fluctuations and ensuring that aging assets are strategically replaced without causing undue financial strain.
The proposed Internal Service Funds Policy offers several benefits to the City's financial and operational planning:
• Predictable Budgeting — Establishes amortization schedules for asset replacement to minimize unexpected financial burdens.
• Comprehensive Asset Evaluation — Incorporates age, mileage, repair costs, and usability to determine replacement needs.
• Fund Replenishment Strategy — Ensures the availability of funds for future replacements through scheduled contributions by user departments. • Technology & Security Considerations — IT assets are evaluated separately, considering technological advancements and cybersecurity needs.
Under the policy, the Finance Department will assess fund balances annually to ensure that replacement needs align with available resources. Departments will be required to submit asset usage reports during budget preparation to facilitate informed decision - making.
Fiscal Impact:
The Internal Service Fund policy establishes a structured replenishment process funded through departmental allocations, interest earnings, and disposal proceeds from retired assets. The proposed 3.5% inflation rate factor ensures that future replacements are adequately funded, mitigating the risk of financial shortfalls. Updates to the 2025 City of Beaumont Financial Policies have no financial impact.
The cost of preparing this staff report is estimated to be $250.
Recommended Action:
Approve the 2025 City Financial Polices and Internal Service Fund Policy as presented.
Attachments:
A. 2025 City of Beaumont Financial Policies Manual
B. Internal Service Fund Policy
City of Beaumont -Finance Department Policies and Procedures Manual 2025 City of Beaumont
Finance Department
Policies and Procedures Manual
Council Adopted May 6, 2025
BEAUMONT
CALIFORNIA
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Table of Contents
Introduction 7
Accounting Policies 8
Introduction 8
Scope 8
Responsibility 8
Accounting Standards 8
GASB 87 — Lease Materiality Policy 9
GASB 96 — Subscription -Based Information Technology Arrangement (SBITA) Materiality Policy 10
Measurement Focus 11
Basis of Accounting 11
Assets, Liabilities and Fund Equity 12
Taxes and Other Revenues 15
Revenue Collections 18
Chart of Accounts 18
Periodic Journal Entries 18
Financial Reports 19
Independent Audits 19
Financial Management Policies 20
Introduction 20
Scope 20
Responsibility 20
Financial Policy Goals 20
Affiliated Agencies 21
Annual Budget 21
Budget Goals 21
Budget Appropriations 22
Appropriations Limit 22
Proposition 218 22
Budget Control and Monitoring 23
Review Council Actions 23
Additional Operating Budget Direction 23
Fund Balances 24
Fund Management 27
Enterprise Funds 27
Financial Planning Goals 27
Financial Plans and Forecasts 28
Capital and Other Asset Plans 28
Revenue Goals 29
Unfunded Mandates 29
Debt Management 29
Risk Management 30
Interest Earnings 30
Internal Control 30
Budget Adoption Procedures 31
2
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Statement of Investment Policy 33
Introduction 33
Governing Authority 33
Scope 33
Responsibility 33
Pooling of Funds 34
Objectives 34
Standard of Care 34
Indemnification 35
Ethics and Conflicts of Interest 35
Delegation of Authority 35
Finance Committee 35
Authorized Financial Institutions, Depositories, Broker Dealers, and Competitive Transactions36 Security Safekeeping and Delivery Procedures 37
Internal Controls 37
Authorized Investments 37
Bond Proceeds 42
Note on Credit Quality Requirements 42
Note on Maximum Maturity Limitation 42
Note on Diversification Requirements: The diversification requirements set forth above relating to the maximum allowable percentage for a particular issuer or investment type shall apply at the time of purchase. Due to fluctuations in the aggregate invested balance, these maximum percentages may be exceeded from time to time and shall not require liquidation to realign the portfolio. However, consideration should be given to this matter when future purchases are made. 42 Note on Other Requirements: 42
Prohibited Investments and Practices 43
Managing Portfolio and Investment Risks 43
Performance Standards & Evaluation 44
Reporting and Disclosure 44
Policy Review and Adoption 45
City of Beaumont Investment Policy 45
Glossary of Terms 45
Capital Assets Policies 55
Objectives 55
Overview 55
Responsibility 56
Definitions 56
Capital Expenditure Definition and Capitalization Policy (Accounting and Financial Reporting)57 Capitalization Valuations 58
Depreciation 59
Impairment 61
Disposal of Fixed Assets 62
Capital Improvement Policies 64
Introduction 64
Scope 64
Responsibility 64
New Construction 64
3
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Capital Project Funding and Construction Categories 64
Capital Project Financing 65
Five -Year Capital Improvements Plan 65
Utility Coordination 66
Five -Year Capital Improvements Plan (CIP) Preparation 66 Capital Project Priority Criteria Considerations 66
Capital Projects Priority Ranking 67
2018-03 Restated Bond Accounting Policies And Procedures 68 Purpose 68
Distribution and Training 68
Timelines 69
Project Cost Approval Processing 69
Trustee Notification 69
Payment Check Processing and Reviews 69
Recordkeeping 70
Exhibit A 71
Schedule 1 72
Restated Bond Disclosure 73
Procedures And Policies 73
Purpose 73
Distribution 73
Background 73
Engagement of Outside Disclosure Counsel 74
Disclosure Process 74
Land Assessment/Tax-Backed Securities 75
Formal "Page Turning" Session 77
Recordkeeping 77
Governing Principles for City Officials and Staff 77
Annual Continuing Disclosure Requirements 78
Training 80
Certificate of Receipt and Understanding 81
Exhibit A 82
Purchasing and Procurement Procedures 87
Ordinance Summary 87
Public Projects 89
A_ternativc Procccurc 90
Informal Competitive Bidding 90
Exemptions to Competitive Procurement Procedures for Professional Services (3.02.05) 91 Why Purchase Orders? 92
Purchase Order Exceptions 92
Requisition Approval Timing 92
City Departments 92
Approval Levels 93
Finance Department 93
Invoices 93
Purchase Order Changes 93
4
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Vendor Limit 94
Recycled Content Paper and Recovered Organic Waste Product Procurement Requirements 94 Standard Management Procedure and Purpose 94
Section 4.0 - Definitions 96
Grant Policies and Procedures 99
Definition and Purpose 99
Scope 99
Central Responsibility 99
Grant Application Procedures 99
Grant Acceptance Procedures 101
Grant Master File and Fiscal File 102
Grant Monitoring and Reporting 103
Indirect Costs 104
Personnel 104
Grant -Related Procurement and Policy Issues 104
Classification of Grant Revenue 106
Year-end Procedures 106
Grant Closeout 106
Detailed Federal Grant Procurement Policy 106
14.8 Contract Cost and Price 113
City Manager Exemption 115
Device 118
Replacement Period 118
Petty Cash Policy 119
Confidential Funds 121
Unclaimed Money Policy 123
Purpose 123
Policy 123
Procedures 123
Attachment 1 124
Attachment 2 125
Attachment 3 126
Procurement Card Program Policy 127
Electronic Funds Policy 134
Introduction 134
Incoming EFTS: 134
Outgoing EFTS: 135
Fedwire Payments to Vendors (Domestic or International) 135 Employee Direct Deposits 136
When Fraud is Identified 137
Banking Definitions 137
Policy and Procedure Management 137
Deposit -Based Funds Policy 138
5
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Purpose 138
Policy 138
Procedures 139
Donation Acceptance Policy 140
Purpose 140
Definitions 140
General Guidelines 140
Policy 142
6
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Introduction
The City of Beaumont has adopted Accounting, Financial management, Investment, Fixed asset, Grant, Procurement, Budget, Capital Improvement and various other policies to provide the framework for managing the City's financial resources and assuring uniformity in all Financial operations.
These policies are designed to:
1. Contribute to the confidence in the City operations and the commitment of the City Council, City Manager, and staff to sound financial practices.
2. Save time and energy of the City Council and appointed officials. Once certain financial decisions are made at the policy level, those policies may be applied to individual situations and issues.
3. Direct attention of the City Council, City Manager, department heads and the public to the City's total financial condition and link day-to-day operations with long-range financial planning.
4. Contribute to the stability and expeditious handling of the City's financial affairs. The City Council, City Manager and department heads may change overtime, but sound financial accounting policies will be in existence to guide whoever holds these positions. 7
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Accounting Policies
Introduction
The City's accounting policies are the specific principles, guidelines, basis, conventions, rules, regulations and practices applied by the City of Beaumont in accounting for the collection and disbursement of financial resources and in preparing and presenting accurate financial statements of fiscal transactions. Sound and practical accounting policies are the foundation of accurate accounting and reporting of financial information. The City's accounting policies help ensure that the institutional memory of how and why things were done in the past is not lost and serve as an important tool to capture how things are currently done. Accounting policies provide guidelines to support daily operations and sound administrative and policy decision making.
Scope
The City's accounting policies apply to all personnel, departments, divisions, and offices of the City government as well as all associated accounting funds under the direct authority of the City of Beaumont.
These accounting funds include, but are not limited to, the General Fund, Special Revenue Funds, Enterprise Funds, Internal Service Funds, Debt Service Funds, Capital Projects Funds, Private -Purpose Trust Funds and Agency Trust Funds. These accounting policies are also applicable to the City's blended component units, including the Beaumont Utility Authority, the Beaumont Parking Authority, Beaumont Financing Authority, and the Beaumont Public Improvement Authority.
Responsibility
The City Manager is ultimately responsible for the City's implementation and compliance with these policies unless the City Council authorizes exceptions. Under the direction of the City Manager, the Finance Director will review, develop, and implement a system of processes and procedures to ensure compliance with these policies throughout the entire organization. The City Manager will work with the Finance Director to ensure these policies are updated on a timely basis.
Accounting Standards
The annual budget and audited financial statements of the City of Beaumont are prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applicable to government entities. Generally Accepted Accounting Principles (GAAP) are national accounting standards adopted by the Governmental Accounting Standards Board (GASB). The Governmental Accounting Standards Board (GASB) is the nation-wide accepted standards body for establishing governmental accounting and financial reporting principles.
The City also complies with Financial Accounting Standard Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedure.
Beaumont's budget and audited financial statements present the financial position of the City government and its blended component units. Blended component units are entities for which the City is considered to 8
City of Beaumont -Finance Department Policies and Procedures Manual 2025 be fmancially accountable. This includes the Beaumont Utility Authority, the Beaumont Finance Authority, Beaumont Parking Authority, and the Beaumont Public Improvement Authority. These organizations are technically separate legal government entities but are in substance part of the City of Beaumont's government operations. The City Council acts as the board of directors for the Beaumont Utility Authority, Beaumont Parking Authority, the Beaumont Financing Authority, and the Beaumont Public Improvement Authority. City employees serve as the staff for all four of these governmental units. The budget and other financial information from these government entities is combined with the budget and financial data of the City of Beaumont. The Beaumont Utility Authority, Beaumont Parking Authority, Beaumont Financing Authority and the Beaumont Public Improvement Authority have a June 30 date for the end of their fiscal year.
GASB 87 — Lease Materiality Policy
PURPOSE
The purpose of the Lease Materiality Policy is to establish the dollar threshold at which City of Beaumont accounts for leases for external financial reporting purposes.
ADOPTION AND REVIEW
This policy shall be reviewed periodically for recommended revisions in order to maintain the policy in a manner that reflects the ongoing fmancial goals of the City of Beaumont and compliance with Generally Accepted Accounting Principles (GAAP). Finance Department management shall adopt and revise the policy as necessary.
POLICY
3.1. In accordance with Governmental Accounting Standard Board (GASB) Statement No. 87, Leases, a lease is defined as a contract that conveys control of the right to use another entity's nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange -like transactions (i.e., buildings, land, vehicles, and equipment). Any contract that meets this definition should be accounted for under the lease guidance as identified in GASB Statement No. 87. Subject to certain provisions and exceptions noted in the guidance, leases are generally reported as follows in a government's external financial statements:
3.1.1 Lessee: A lessee should recognize a lease liability and a lease asset at the commencement of the lease term. A lessee should reduce the lease liability as payments are made and recognize an outflow of resources (i.e., expense) for interest on the liability. The lessee should amortize the lease asset in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.
3.1.2 Lessor: A lessor should recognize a lease receivable and a deferred inflow of resources at the commencement of the lease term. A lessor should recognize interest revenue on the lease receivable and an inflow of resource (i.e., revenue) from the deferred inflows of resources in a systematic and rational manner over the term of the lease.
3.2. Effective July 1, 2024, The City of Beaumont has established a materiality dollar threshold for determining the inclusion or exclusion of leases in the external financial statements, both as lessee and lessor. At the commencement of the lease term, City of Beaumont will analyze the terms and 9
City of Beaumont -Finance Department Policies and Procedures Manual 2025 provisions of the lease agreement (contract) in order to calculate the value of the underlying asset.
3.2.1 An individual lease agreement (contract) that generates a right -to -use underlying asset value calculated at greater than or equal to $25,000 will be included in the external financial statements.
3.2.2 A lease agreement (contract) with an underlying asset value less than $25,000 may be included in the external financial statements at the discretion of City of Beaumont Finance management should it be determined that its exclusion might otherwise cause the financial statements to be incomplete or misleading in some manner.
GASB 96 - Subscription -Based Information Technology Arrangement (SBITA) Materiality Policy
PURPOSE
The purpose of the Subscription -Based Information Technology Arrangement (SBITA) Materiality Policy is to establish the dollar threshold at which the City of Beaumont accounts for SBITAs for external financial reporting purposes.
ADOPTION AND REVIEW
This policy shall be reviewed periodically for recommended revisions in order to maintain the policy in a manner that reflects the ongoing financial goals of the City of Beaumont and compliance with Generally Accepted Accounting Principles (GAAP). Finance Department management shall adopt and revise the policy as necessary.
POLICY
3.1. In accordance with Governmental Accounting Standard Board (GASB) Statement No. 96, Subscription -Based Information Technology Arrangements, a SBITA is defined as a contract that conveys control of the right to use another party's (a SBITA vendor's) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time m an exchange or exchange -like transactions. Any contract that meets this definition should be accounted for under the SBITA guidance as identified in GASB Statement No. 96.
3.2. Subject to certain provisions and exceptions noted in the GASB guidance, SBITAs are generally reported as a right -to -use subscription asset — an intangible asset — and a corresponding subscription liability in a government's external financial statements:
3.3. Effective July 1, 2024, City of Beaumont has established a materiality dollar threshold for determining the inclusion or exclusion of SBITAs in the external financial statements. At the commencement of the SBITA term, City of Beaumont will analyze the terms and provisions of the agreement (contract) in order to calculate the fixed and fixed in -substance future payments to the end of the subscription term.
33.1 An individual agreement (contract) that generates future payments over the subscription term 10
City of Beaumont -Finance Department Policies and Procedures Manual 2025 calculated at greater than or equal to $25,000 will be included in the external financial statements.
3.3.2 An agreement (contract) that generates future payments over the subscription term calculated at less than $25,000 may be included in the external financial statements at the discretion of City of Beaumont Finance Department management should it be determined that its exclusion might otherwise cause the financial statements to be incomplete or misleading in some manner.
Measurement Focus
The accounting and reporting treatment applied to a Fund is determined by its measurement focus. All Governmental Funds (General Fund, Special Revenue Funds and Debt Service Funds) are accounted for on a flow of current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Governmental Fund operating statements and budgets present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
All Proprietary Funds (Internal Service Funds and Enterprise Funds) and all Fiduciary Funds are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or non -current) associated with this activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary Funds operating statements present increases (revenues) and decreases (expenses) in net total assets.
Basis of Accounting
Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the City's financial statements. The Basis of Accounting relates to the timing of revenue recognition in the City's fmancial statements regardless of Measurement Focus applied. The accounting basis in the City's annual budget is the same as accounting basis in the City's annual audited financial statements.
1. Governmental Fund Types (Tax Supported Activities). The modified accrual basis of accounting is used by the City of Beaumont to apply revenues to expenditures in its Governmental Funds. Under the modified accrual basis of accounting revenues are recorded when they become measurable and available to pay for expenditures of the current period. "Measurable" means that the amount of the transaction can be determined. "Available" means collectible within the current period or soon enough thereafter to pay liabilities.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met.
Taxes, intergovernmental revenues, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and are therefore recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current period is considered to be susceptible to the accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. 11
City of Beaumont -Finance Department Policies and Procedures Manual 2025 The City of Beaumont considers all revenues available if they are collected within sixty (60) days after the end of the fiscal year. Revenues that are accrued include property taxes, franchise fees, interest revenue and charges for service. Sales taxes and motor vehicle license fees collected and held by the state at year end on behalf of the City are also recognized as revenue. Licenses, permits and fines are accrued when received as they are not measurable until received in cash. Investment earnings are recorded as earned. Other receipts and taxes become measurable and available when cash is received by the government and are recognized as revenue at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if accrual criteria are met.
Expenditure -driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.
The City reports deferred revenue on its balance sheet. Deferred revenues arise when potential revenue meets the asset recognition criteria but does not meet both the "measurable" and "available" revenue criteria for recognition in the current period. Deferred revenues also arise when the City receives resources before it has a legal claim to them, such as when grant monies are received prior to the incurring of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized.
2. Proprietary Fund Types (Business -Type Activities) and Fiduciary Fund Types (Resources Held in Trust). Expenditures are generally recognized in Enterprise Funds, Internal Service Funds, Private Purpose Trust Funds, and Agency Trust Funds under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which is recognized when due. Certain compensation absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. Under this method revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Assets, Liabilities and Fund Equity
1. Cash and Investments. Cash and cash equivalents represent the City's cash bank accounts including, but not limited to, certificates of deposit, money market funds and cash management pools for reporting purposes. Additionally, investments with maturities of three months or less when purchased are included as cash equivalents.
The City maintains a cash and investment pool that is available for use by all Funds. Interest earnings as a result of this pooling are distributed to the appropriate funds based on month -end cash balances in each fund. Cash is divided into three risk levels in accordance with standards that have been developed by the Governmental Accounting Standards Board (GASB) in Statement No. 3:
A. Category 1 Investments. Insured or collateralized investments with securities held by the City of Beaumont or by its agent in the City's name.
B. Category 2 Investments. Collateralized investments with securities held by the pledging financial institution's trust department or agent in the City's name.
C. Category 3 Investments. Uncollateralized investments. This includes any bank balance that 12
City of Beaumont -Finance Department Policies and Procedures Manual 2025 is collateralized with securities held by the pledging financial institution, or by its trust department or agent, but not in the City of Beaumont' name.
In accordance with Governmental Accounting Standards Board (GASB) 31, all City investments are stated at fair value. Fair value is based on the quoted market prices as of the valuation date. Aside from investments clearly identified as belonging to a specific fund, any unrealized gain/loss resulting from the valuation will be recognized within the General Fund to the extent cash and investments' balance exceeds the cumulative value of those investments subject to Governmental Accounting Standards Board (GASB) 31.
The fair value of the City's investment in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 is reported in the City's financial records and financial statements at amounts based on the pro -rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
2. Internal Controls. The internal control structure of the City of Beaumont is designed to ensure that the assets of the City are protected from loss, theft, or misuse. It is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. Internal controls within the City of Beaumont address the following issues:
A. Control of Collusion. Collusion occurs where two or more employees work in conjunction to defraud the City. The City has an organizational structure and operational policies and procedures that are designed to prevent collusion.
B. Separation of Transaction Authority from Accounting and Record Keeping. The City has segregated job duties so that the person who authorizes or performs the transactions is different from the person who records or otherwise accounts for the transaction. The City's Finance Department has divided duties and record keeping among employees with a Finance Director overseeing day-to-day operations.
C. Custodial Safekeeping. Funds collected by the City are deposited into the bank once a week.
Any small amounts of cash held at the end of the day are placed in a safe. Securities purchased from any bank or dealer (including appropriate collateral) for short-term or long-term cash investments are placed with an independent third party for custodial safekeeping.
D. Avoidance of Physical Delivery of Securities. The City avoids the physical delivery of securities. Book -entry securities are easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities.
E. Clear Delegation of Authority to Subordinate Staff Members. Staff members in the Finance Department have a clear understanding of their authority and responsibilities to avoid improper actions. Clear designation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities.
F. Written Confirmation of Transactions for Investments and Wire Transfers. Due to the 13
City of Beaumont -Finance Department Policies and Procedures Manual 2025 potential for error and improprieties arising from telephone and electronic transactions, all transactions are supported by written communications and approved by the authorized supervisor.
Written communications may be via -email if on letterhead and if the safekeeping institution has a list of authorized signatures.
G. Wire Transfer Agreement with Lead Bank. The City has a wire transfer agreement with its bank that addresses controls, security provisions and responsibilities of each party making and receiving wire transfers.
3. Accounts Receivable. Billed but unpaid services provided to individuals or non -Government entities are recorded as "accounts receivable." The Proprietary Funds include a year-end accrual for services through the end of the fiscal year, which have not yet been billed. Accounts receivables are reported in net of an allowance for uncollectible accounts in the Enterprise Funds.
4. Compensated Absences. It is the City's policy to permit employees to accumulate earned (but unused vacation), sick pay and compensatory time benefits up to the limits imposed in the City of Beaumont Personnel Manual. Vested or accumulated vacation, holiday and sick leave along with any compensatory time that is expected to be paid with expendable available financial resources is reported as an expenditure and fund liability in the Governmental Fund that will pay for it. Amounts not expected to be liquidated with expendable available financial resources are reported in the General Long -Term Debt Account Group. No expenditure is reported for these amounts. Vested leaves in Enterprise Funds are recorded as an expense and liability as the benefits accrue.
5. Long -Term Liabilities. The City reports long-term debt of Governmental Funds at face value. Long- term liabilities for all Governmental Funds and Fiduciary Funds do not affect net current assets and are not included on their respective balance sheets in previous years. Long-term liabilities of proprietary and non -expendable trust funds are accounted for in the respective funds.
6. Inventory. Inventory is valued at the cost that approximates market, using first -in, first -out (FIFO) method. The consumption method is used to account for the inventory of Governmental Funds including the General Fund, Special Revenue Funds and Capital Projects Funds. The value of the City's office supply inventory is not considered material and as a result, no inventory value is shown in the City's financial statements or in the annual budget.
7. Bond Discounts. In Governmental Funds, bond premiums, discounts, and issuance costs are recognized in the current period. Bond discounts are presented as a reduction of the face amount of the bonds payable. Issuance costs are reported as an expenditure of the period. For Proprietary Funds, bond premiums and discount, with issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs are reported as deferred charges.
8. Called Developer Bonds. Revenues from called developer bonds arising from contract defaults are deferred and recognized as revenues when the related costs to complete the project are incurred by the City.
9. Unappropriated Fund Balance and Unreserved Cash and Investments. The Unappropriated Fund Balance in Governmental Funds and Unreserved Cash and Investments balances in Proprietary Funds indicate that portion of Fund Equity which is available for appropriation in future periods.
Restricted Fund Balances or Reserved Fund Equity indicates that a portion of Fund Balance or Fund Equity has been segregated for specific purposes or is not available for appropriation. Reservations of 14
City of Beaumont -Finance Department Policies and Procedures Manual 2025 retained earnings are limited to outside third -party restrictions.
10. Contributed Capital. Contributed capital are non -cash assets recorded in Enterprise Funds and General Fund and primarily represents infrastructure such as water lines, sewer lines or assets received from other funds, developers, or customers. Contributed capital designations in the Enterprise Funds cannot be spent for operating or capital needs.
Taxes and Other Revenues
1. Property Taxes. Riverside County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Property tax is imposed on real property (land and permanently attached improvements such as buildings) and tangible personal property (moveable property) located within the state. The California property tax is ad valorem, based on the value of the property rather than on a fixed amount or benefit to the property or persons. Intangible assets and rights are not subject to taxation except to the extent that they are necessary to put real property interests to beneficial or productive use. Taxable property includes land, improvements, and other properties that are accounted for on the property tax rolls, which are primarily maintained by the Riverside County Assessor.
Tax rolls contain an entry for each parcel of land, including parcel number, owner's name, and value.
The amount of the tax is based on an annually determined assessed valuation. The property tax is paid to the county tax collector and allocated to local taxing agencies. The property tax is guaranteed by placing a lien on the real property. For this reason, types of properties are distinguished as secured or unsecured.
Certain special exemptions to the standard assessment rules are provided in the State Constitution and state law. These exemptions include federal and state-owned property, municipal owned property except property outside the legal boundaries of the agency, homeowners' property tax exemption, property owned, irrevocably dedicated to religious, hospital, cemeteries and schools and the California Air Patrol; Williamson Act; disabled veterans; and other exemptions.
Property taxes are levied in equal installments on November 1 and February 1. They become delinquent respectively on December 10 and April 10. The lien date is March 1 of each year. Property taxes are accounted for in the City of Beaumont General Fund. The City is permitted by Article XIIIA of the State of California Constitution (known as Proposition 13) to levy a maximum of $1.00 per $100 of full cash value.
Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 60 days after the end of the fiscal year.
Property tax on the unsecured roll is due on the March 1 lien date and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year-end accrual. Taxes on individual pieces of property may be delinquent up to five years before the property is sold for delinquent taxes.
Under state statute, the County Treasurer, acting as a tax collector, must settle and disburse all current tax collections to all taxing units by the end of March following the taxing year. Delinquent taxes are collected throughout the year and dispersed to the taxing units on a routine basis.
The City receives property taxes under the "Teeter Plan." The Teeter Plan allows cities to collect 100% of assessed taxes each year in lieu of receiving only those taxes collected by the County. Riverside County receives the penalties and interest when delinquent taxes are collected in future years. The County benefits by charging interest substantially higher than market rates when the delinquent taxes are collected. 15
City of Beaumont -Finance Department Policies and Procedures Manual 2025
2. Sales and Use Taxes. California sales tax is imposed on retailers for the privilege of selling tangible personal property. A portion of the tax is a state tax, and a portion is locally imposed. The tax base for the sales tax is the retail price of tangible personal property. Tangible personal property is any material asset, such as household goods and business equipment which is readily moveable and not permanently attached to real property. Sales tax applies to a transaction if (1) the seller's registered place of business in California participates in the sale and (2) title to the goods passes to the customer within the state.
The use tax complements the sales tax. It is imposed on the storage or use, or other consumption in California of property purchased from a retailer in cases where the sales tax is not collected. While sales tax is imposed on the seller, the use tax is imposed on the purchaser and at the same rates as the sales tax. The use tax was first imposed in 1935, in order to discourage buying from out of state solely for the purpose of avoiding state sales tax, and thereby placing California retailers at a competitive disadvantage. On April 25, 2019, Governor Newsom signed AB 147, which imposes the obligation to collect applicable transactions and use tax on all sales made for delivery in any city or county that impose a transactions and use tax and applies to a retailer whether inside or outside of California if, during the preceding or current calendar year, the total combined sales of tangible personal property in California or for delivery in California by the retailer and all persons related to the retailer exceed $500,000. Sales and use taxes are collected by the California Department of Tax and Fee administration (CDTFA) and remitted to the City quarterly. Sales and use taxes are recorded as revenues when received by the California Department of Tax and Fee administration (CDTFA).
3. Franchise Fees. Revenue received from the Gas Company for the ability to lay and use pipes and appurtenances for the transmitting and distribution of gas pursuant to Ordinance No. 339.
Revenue is remitted on a yearly basis, anticipated in April, for the prior year.
Revenue received from Southern California Edison for the use, construction, and transmission and distribution of electricity to the public for all purposes pursuant to Ordinance No. 251.
Revenue is remitted on a yearly basis, anticipated in April, for the prior year.
Revenue received from Waste Management for the exclusive franchise to collect, remove, and dispose of solid waste in the City's service area pursuant to the Collection Services Agreement for the Provision of Residential and Commercial Garbage, Recyclable Materials and Organic Wase Collection Services. Revenue is remitted on a quarterly basis.
Cable and Video franchise fees are collected from Charter and Frontier as "rent" or "toll" for the use of the streets and rights -of -way of a municipality. Payments are received on a quarterly basis. Additionally, Franchises are required to remit payment for the support of Public, Educational, and Governmental Access (PEG) fee. These payments are remitted on a quarterly basis.
4. Utility User Tax (UUT) A Utility User Tax is imposed for the consumption of utility services, including (but not limited to) electricity, gas, water, sewer, telephone, sanitation, and cable television.
This tax is the responsibility of the consumer. The tax is collected by the utility company as part of its normal billing processes and remitted to the City on the consumer's behalf. The revenue received from this tax can be used for general business purposes. Revenue is received on a monthly basis for monies collected in the prior month.
5. Transient Occupancy Tax (TOT) A Transient Occupancy Tax is imposed on occupants staying in room(s) within a hotel, motel, inn, etc for a period less than 30 days. Owners of these establishments are responsible for collecting TOT from it's consumers and remitting the funds back to the City. Revenue 16
City of Beaumont -Finance Department Policies and Procedures Manual 2025 is received on a quarterly basis.
6. Business License Tax The City imposes a business license tax on person(s) or entities for the privilege of conducting business within the City. The tax is most commonly based on gross receipts or levied at a flat rate. However, the business license tax can also be based on number/type of employees, units/spaces for rent, manufacturing weight, etc.... Majority of revenue is received between June and July as business license renewals are due June 30 of each year. However, revenues are received throughout the year due to new applications and late renewals.
7. Development Impact Fee Revenues The City seeks to recover some of the cost of growth through development impact fees on new developments in the City of Beaumont. As Beaumont's population grows, the demand for the expansion of public infrastructure and the purchase of capital equipment needed to serve new development in the City increases.
State law allows (State Mitigation Fee Act, Government Code 66000 et. seq.) and fairness dictates that the new residents creating the need for expanded infrastructure and additional equipment capital costs should make a contribution to their acquisition in the form of development impact fees. Development impact fees are collected by the City of Beaumont for the expansion of public infrastructure and facilities and the purchase of capital equipment needed for new development in the City. All development impact fees are deposited in separate special revenue and expenditure accounts in a separate Special Revenue Fund specifically designated for the particular development impact fee. Development impact fees can only be spent for capital purchases due to growth and are not used for salary or maintenance or operation expenditures.
California Government Code Section 65940.1 and Section 66016.5 require cities, counties, and special districts to update development impact fee information which includes:
Nexus Studies — Local agencies must prepare and adopt an impact fee nexus study to establish the legal and policy basis for adopting or increasing development impact fees. Nexus studies must be updated at least once every eight years. The City of Beaumont will make all attempts to update the nexus study at least every five -years.
8. Other Revenues Outside of taxes, the City earns revenues through regulatory fees and services rendered. These revenues are received throughout the year. Below is a listing of other revenue sources but is not inclusive of all revenues.
Regulatory fees include the following:
• Building and zoning permits;
• Zoning Variances and changes;
• Building and safety inspections;
• Fire inspections;
• Planning services;
• Permits;
• Alarm permits;
• Pet licenses;
Services provided include but are not limited to:
• School Resource Officers;
• Livescan services;
17
City of Beaumont -Finance Department Policies and Procedures Manual 2025 • Graduation patrol;
• Football patrol;
• Park rentals;
• Building rentals
Revenue Collections
The City will use all cost-effective means available to collect revenues due.
The Finance Department is responsible for ensuring all Accounts Receivable are properly pursued and accounted for, which includes an aging of each receivable and the development of a bad debt policy. The Finance Department will ensure, on an annual basis, that a report is provided to the City Council on the condition of the City's collection efforts and any accounts receivable and the development of a bad debt policy. The Finance Department will ensure, on an annual basis, that a report is provided to Council on the condition of the City's collection efforts and whether any accounts receivable should be written off.
The Mayor and City Council must approve any fee waivers.
Chart of Accounts
The City Chart of Accounts is a carefully arranged system classifying financial transactions for budgeting, accounting, and reporting purposes. The Chart of Accounts does the following:
1. Defines each account in order to assure uniform treatment in the classification recording and summarization of accounting transactions.
2. Provides a consistent basis for reporting accounting financial and related information to facilitate effective and meaningful communications with the public, bond investors, City departments City Manager and City Council.
3. Provide flexibility for other reporting needs as required for ongoing operations of the City.
Periodic Journal Entries
The Finance Director is responsible for seeing that the following journal entries are prepared and posted as appropriate to the General Ledger:
1. Monthly or Quarterly Postings to General Ledger. Monthly postings to the General Ledger include, but are not limited to, payroll related postings, including deferred compensation and contributions to the California Public Employees' Retirement System, tax receipts, wire transfers, bank account charges, investment earnings, transfers between funds, voided and non -sufficient fund checks, budget appropriation changes, reconciliation adjustments and miscellaneous entries including reclassifications.
2. Annual Postings to General Ledger. Annual postings to the General Ledger include, but are not limited to, accounts payable from invoices, accounts receivable from billings, grant accruals and/or deferrals, land transactions, fiscal agent activity on Community Facilities District (CFD) bonds or other bond issues, interest on notes receivable, capital asset transactions, reimbursements due to and due from accounts, deferred revenue and other accruals as required. 18
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Financial Reports
The City staff prepares appropriate monthly financial statements reflecting the operations of individual Funds for internal use by the City Council, City Manager, department heads and the general public. The City adheres to a policy of full and open public disclosure of all financial documents.
Independent Audits
An independent audit of the City's financial statements is conducted each year by an independent Certified Public Accounting firm. The City also participates in a number of federal and state assisted grant programs, which are subject to annual financial and compliance audits.
Staff will regularly use competitive processes to select and rotate new independent auditors that will be responsible for the annual audit of financial records in accordance with state and federal guidelines and generally accepted auditing standards.
The Annual Comprehensive Financial Report (ACFR) or audited financial statements along with the Management Letter and responses from management, will be completed and shared with the City Council. 19
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Financial Management Policies
Introduction
The City of Beaumont is accountable to the community for the use of public dollars. Municipal resources will be used wisely to ensure adequate funding for the services, public facilities, and infrastructure necessary to meet the community's present and future needs. Financial management policies serve as the blueprint to achieve the fiscal stability and accountability required to meet the City's goals and objectives.
Scope
The City's financial management policies apply to all personnel, depaitiiients, divisions, and offices of the City government as well as all associated accounting funds under the direct authority of the City of Beaumont. These accounting funds include, but are not limited to, the General Fund, Special Revenue Funds, Enterprise Funds, Internal Service Funds, Debt Service Funds, Capital Projects Funds, Private -Purpose Trust Funds and Agency Trust Funds. These financial management policies are also applicable to the City's blended component units, including the Beaumont Utility Authority, Beaumont Parking Authority, Beaumont Financing Authority and Beaumont Public Improvement Authority.
Responsibility
The City Manager is ultimately responsible for the City's implementation and compliance with these policies, unless the City Council authorizes exceptions. Under the direction of the City Manager, the Finance Director will review, develop, and implement a system of processes and procedures to ensure compliance with these policies throughout the entire organization. The City Manager will work with the Finance Director to ensure these policies are updated on a timely basis.
Financial Policy Goals
The objectives for comprehensive management policies are to:
• Guide City Council and City Management decisions that have significant fiscal impact. • Support the planning for financial sustainability and long-term needs. • Maintain and protect City assets and infrastructure.
• Set forth operating principles that minimize the financial risk in providing City services. • Optimize the efficiency and effectiveness of services to reduce the costs and improve service quality.
• Employ balanced and fair revenue policies that provide adequate funding for desired programs. • Promote sound financial management by providing accurate and timely information on the City's financial condition to the City Council and community.
20
City of Beaumont -Finance Department Policies and Procedures Manual 2025 • Maintain and enhance the City's credit ratings and prevent default on any municipal financial obligations.
• Ensure the legal and ethical use of financial resources consistently with Council policy through an effective system of internal controls.
• Promote cooperation and coordination within the City, and other governments and with the private sector in the financing and delivery of services.
• Provide the appropriate level of accountability in the use of public resources.
Affiliated Agencies
If agencies have been created through Council action, intergovernmental agreements, and state and federal laws, they should be managed with the same financial standards as City agencies. To protect the City's fiscal status and avoid an adverse effect on the City, affiliated agencies will be accountable for fmancial compliance and reporting standards as described in the City's Financial Management Policies. The City may audit financial records or performance data to ensure funds are spent in accordance with Council directions and policies. Affiliated agencies include, but are not limited to, agencies created by Council action, agencies with leadership appointed by the City Council and agencies that receive a majority of funds from the City.
Annual Budget
The annual budget is the primary mechanism for the implementation of City Council policies and the achievement of their goals and objectives. The budget is a policy document, operations guide, financial plan and a communications device. It is the single most important means of setting spending policies and priorities of the City. It constitutes approval by the City Council of service levels and operating programs and provides resources to finance them. Expenditures must be kept within total appropriations for all Accounting Funds.
Budget Goals
The City will develop and implement a budget process that will:
• Make prudent use of public resources.
• Include financial forecast information for resources, uses and ending fund balances to ensure that the City is planning adequately for current and future needs. • Provide adequate opportunity for public review and input. • Provide adequate opportunity for City Council review and deliberations. • Provide information on accomplishments and service _evels vis a vis community neecs strategic goals.
• Comply with City Code, State of California Local Budget Law, bond covenants and other promulgations.
21
City of Beaumont -Finance Department Policies and Procedures Manual 2025 The City Manager will develop and present a proposed City budget to the Mayor and City Council for consideration and adoption. The City Manager's proposed budget will opine on the short and long-term fmancial condition of the City, identify policy and financial and service issues, identify any use of one-time funds to support ongoing operations or key changes from previous years, identify funding requirements and sources of funds, provide supplemental information on programs and service areas, include budget and performance details for all City organizations and related recommendations to the City's vision and goals.
The Finance Department will issue guidelines and rules for the preparation and review of the department budget requests to the Mayor and City Council, including a proposed annual budget process and calendar.
The proposed process and calendar will support community input and Council deliberations.
Budget Appropriations
All Accounting Funds are included in the annual budget and all revenues and other financing sources are appropriated by the City Council each fiscal year in the annual budget. All Accounting Funds included in the City's annual audited financial statements are reviewed by the City's independent certified public accountants. The accounting basis in the City's annual budget is the same as the accounting basis used by the City's annual audited financial statements. Annual operating budgets in the General Fund and Enterprise Funds are carefully reviewed to ensure that budget appropriations are conservative because the City feels government units' function more efficiently under conservative budgets than where excess funds are made available.
Appropriations Limit
Under Article XIIIB of the California Constitution (the GANN Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must be either refunded to the State Controller or returned to the taxpayers through revised tax rates, revised fee schedules or other refund arrangements.
Proposition 218
Proposition 218, approved by the voters in November 1996, regulates the City's ability to impose, increase and extend taxes, assessments, and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218 maybe subject to a protest hearing process. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future by the voters. Therefore, the City's ability to finance the services for which the taxes, assessments and fees are imposed may be significantly impaired. Under Proposition 218:
1. Revenues derived from a property related fee must not exceed the funds required to provide the proportionate cost of the property related service. (The total cost limitation)
2. Revenues derived from the fee must not be used for any purpose other than for that which the fee is imposed. (The proportional cost limitation)
3. Fees may not be imposed for a service unless the services is actually used by, or immediately available to, the owner of the property subject to the fee. Fees based on potential or future use of a service are not permitted and stand-by charges must be classified as assessment subject to the ballot protest and proportionality requirements for assessments. (The future services prohibition) 22
City of Beaumont -Finance Department Policies and Procedures Manual 2025
4. No fee or charge may be imposed for general governmental services, such as police, fire, ambulance, or libraries, where the service is available to the public in substantially the same manner as it is to property owners. (The general government service prohibition) A public agency has the burden to prove compliance with these provisions if a fee is challenged in court.
Budget Control and Monitoring
The City Council appropriations and control points will be at the department level within each accounting fund. These City Council adopted appropriations and employee counts cannot be exceeded without City Council approval. The City Manager will have the authority to amend budgets within a departmental appropriation but changes in employee counts must be approved by the City Council. The Finance Department will maintain a system of tools for departments to manage their budgets and for financial monitoring and control of the City's budget during the fiscal year. This system will provide the departments, Mayor and City Council with information on revenue, expenditures and budget performance at both the department and fund level. The system will include provisions for amending the budget during the year in order to comply with this policy and State of California budgetary statutes.
The City Manager, through the Finance Department, will periodically report to the City Council financial status reports on revenues and expenditures to date, and the estimated year-end fund balances. The City Manager will, on a quarterly basis, review all City fmancial operations, report to Council on financial results and recommend financial actions necessary to meet the adopted budget's financial planning goals.
The mid -year budget monitoring report, audited financial statements, audit opinion and management letter will be presented to the Mayor and City Council for review and discussion as an action item on a City Council agenda. Any additional financial resources, whether additional projected revenues produced them or higher beginning fund balances, should be set aside for the next budget cycle. Any negative financial results should be highlighted, and a proposed plan of action should be provided to the Mayor and City Council for review and approval. General Fund discretionary resources that exceed budgeted amounts should be added to the General Fund contingency, except for funds allocated to infrastructure maintenance or replacement.
Review Council Actions
The City Manager, through the Finance Department, will review any proposed City Council actions. The objective of these reviews will be to ensure compliance with the City's budget direction and identify financial and service issues for the Council. The Finance Department will identify financial and service issues for the City Council. The Finance Department will establish and issue procedures and forms to submit fiscal impact statements for proposed Council actions.
Additional Operating Budget Direction
1. Balanced Budget. Financial resources shall be equal to or exceed expenditures in each accounting fund. Each City fund must identify on -going financial resources that at least match expected ongoing requirements. One-time resources and non -recurring ending balances may either be applied to reserves or used to fund one-time expenditures; they will not be used to fund ongoing programs, except as provided in Section 2. Each year the Finance Director will provide the City Council with the amount of discretionary revenue that is estimated to be non -recurring for the 23
City of Beaumont -Finance Department Policies and Procedures Manual 2025 General Fund.
2. One-time Funds. One-time funds can be used for ongoing expenditures only as a plan for:
(1) Transitioning to a permanent funding source,
(2) leading to organized program elimination, or
(3) as part of verifiable plan to address an existing recessionary period. Scenario 3 should be documented in the City's multi -year financial forecast.
3. General Discretionary Revenues. Unless otherwise explicitly stated by the Mayor and City Council, the City will not dedicate discretionary revenues for specific purposes in the General Fund.
This will preserve the ability of the Mayor and Council to determine the best use of available revenues to meet changing service requirements.
4. Transfers Between Funds. A schedule of all transfers between funds will be identified, explained, and appropriated in the Proposed and Adopted Budget. Any additional budget transfers between accounting funds will require City Council action.
5. Efficiency and Effectiveness. The City will optimize the efficiency and effectiveness of its services to reduce costs and improve service quality. The City will coordinate its service delivery with other applicable public and private service providers and seek the most cost-effective method for service delivery.
6. Self-Supporting/Full Cost Recovery Basis. The City will attempt to recover the costs of services providing a private benefit to users through the imposition of user fees and charges. The fees and charges will be based on cost accounting standards consistent with state or federal law when applicable. Fees and charges should include full costs i.e., direct, indirect, depreciation, interest charges, etc. and the Finance Director will ensure an annual user fee and charges schedule is regularly updated and approved by Council.
7. Recovery of Indirect or Overhead Costs. The City will endeavor to recover indirect or overhead costs through their allocation towards the calculation of user fees and charges or inter -fund charge.
However, a reasonable cost allocation methodology must be used consistent with Generally Accepted Accounting Principles (GAAP).
8. Contingencies. The City will budget a contingency account for each operating fund adequate to address reasonable but unforeseen requirements within the fiscal year.
9. Unexpended Appropriations at the End of the Fiscal Year. Unexpended appropriations cannot be used in subsequent fiscal years unless re -appropriated by the City Council.
Fund Balances
1. Definition and Purpose.
A. Governmental Funds. Accountants employ the term "Fund Balance" to describe the net assets of Governmental Funds calculated in accordance with generally accepted accounting principles (GAAP). Budget professionals commonly use this same term to describe the net assets of Governmental Funds calculated on a government's budgetary basis. In both cases, "Fund Balance" is intended to serve as a measure of the financial resources available in a Governmental Fund. It is essential the City of Beaumont maintain adequate levels of fund balance to provide working capital, 24
City of Beaumont -Finance Department Policies and Procedures Manual 2025 mitigate current and future risks (e.g., revenue shortfalls and unanticipated expenditures) and to ensure stable tax rates. Fund balance levels are also a crucial consideration in long-term financial planning.
B. Enterprise and Fiduciary Funds. The "Cash and Investment Fund Balance" is that portion of fund equity that can be used for operating, capital and debt service expenditures, and is intended to serve as a measure of the fmancial resources available in an Enterprise Fund. It is essential the City of Beaumont maintain adequate levels of cash and investment fund balances to provide working capital, mitigate current and future risks (e.g., revenue shortfalls and unanticipated expenditures) and to ensure stable utility rates. Cash and investment fund balance levels are also a crucial consideration in long-term financial planning.
Credit rating agencies carefully monitor levels of fund balance in a government's General Fund to evaluate a government's continued creditworthiness. Those interested primarily in a government's creditworthiness or economic conditions are likely to favor higher levels of fund balance. Opposing pressures often come from employee unions, taxpayers, and citizens' groups, which may view high levels of fund balance as "excessive."
2. Classification of Governmental Fund Balances.
Governmental Fund balances are classified into the following categories:
A. Nonspendable Fund Balances. Non -Spendable Fund Balances consist of items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.
B. Restricted Fund Balances. 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, contributions, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.
C. Committed Fund Balances. Committed Fund Balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body through City Council resolutions, etc., and that remain binding unless removed in the same manner.
D. Assigned Fund Balances. Assigned Fund Balances encompass the portion of net fund resources 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. The City Council has authorized the City Manager for that purpose.
E. Unassigned Fund Balances. This category is for any balances that have no restrictions placed upon them.
3. Fund Balance Policy Considerations.
In establishing a policy governing the level of unrestricted (unreserved) fund balance in governmental funds and cash and investment fund balance in its Enterprise Funds, the City Council 25
City of Beaumont -Finance Department Policies and Procedures Manual 2025 takes into consideration the following factors:
A. The predictability of its revenues and the volatility of its expenditures (i.e., higher levels of unrestricted (unreserved) fund balance may be needed if significant revenue sources are subject to unpredictable fluctuations or if operating expenditures are highly volatile).
B. The availability of resources in other funds as well as the potential drain upon General Fund resources from other funds (i.e., the availability of resources in other funds may reduce the amount of unrestricted (unreserved) fund balance needed in the General Fund, just as deficits in other funds may require that a higher level of unrestricted (unreserved) fund balance be maintained in the General Fund.
C. Liquidity (i.e., disparity between financial resources actually become available to make payments and the average maturity of related liabilities may require that a higher level of resources be maintained.)
D. Designations (i.e., the City of Beaumont may wish to maintain higher levels of Unrestricted (unreserved) fund balance to compensate for any portion of unrestricted (unreserved) fund balance already designated for a specific purpose).
4. Fund Balance Policies.
A. General Fund Reserves or Ending Fund Balance Policy. Working Capital Reserve Requirement to remain at 16% of the operating budget. This allows sufficient cash flow throughout the year when revenue receipts are not timely to expenditures. Budget Stabilization Reserve set at $5M to provide city staff time to address an economic downturn without having to dip into the Working Capital Reserve. Emergency Disaster Reserve set at $1M to provide funds that may not be available within the budget to address unforeseen emergency disaster brought upon by nature or human. NOTE: The Government Finance Officers Association recommends, at a minimum, that general purpose governments, regardless of size, maintain unrestricted fund balance in their General Fund of no less than two months of regular General Fund of no less than two months of regular General Fund operating revenues or regular General Fund operating expenditures.
B. Enterprise Reserves or Ending Fund Balance. The City will show adequate progress towards increasing Enterprise Fund reserves or Unassigned Fund Balance ultimately to 25% of the Enterprise Fund Balance. The City has established a Repair and Replace Reserve. Any funds remaining from a budget year will first address any shortfalls in the operating reserve requirement.
Any surplus funds over the operating requirement will be placed in the Repair and Replace fund to meet ongoing capital maintenance needs.
These fund balances will be maintained for the following purposes:
a) Provide sufficient working capital to meeting daily cash needs to avoid using short-term debt instruments.
b) Provide a reserve to absorb emergency expenditures caused by natural disasters such as fire, flood, or earthquake.
c) Cover any unanticipated deficit resulting from a shortfall in actual revenues in a given budget year or unanticipated cuts by the State Legislature and Governor of City revenues. 26
City of Beaumont -Finance Department Policies and Procedures Manual 2025 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 unrestricted resources in the following order: committed, assigned, and unassigned.
When the unrestricted (unreserved) fund balance of the General Fund exceeds the amount needed for the above purposes, the City Manager through the Finance Department will bring an item to Council for options of use that meet the strategic goals that have been established within the budget process.
Restricted (reserved) fund balances in the General Fund, Special Revenue Funds, and Capital Projects Funds will be separated out and identified in the City's accounting records, financial statements, budgets, and audit reports. This same policy is followed with respect to restricted amounts in the cash and investment balances of the Enterprise Funds. The purpose of this policy is to show the City Council, staff, and the public what funds in these balances are unrestricted and what funds are to be used for specific purposes.
Fund Management
Creation of new funds or elimination of existing funds shall be done by the Finance Depaitinent or City Council action. A review and report by the Finance Department will be required prior to City Council action. The Finance Department will conduct an annual review and, as part of the budget, explain the purpose of each fund and assess if each fund is needed.
Departments or programs that are primarily funded by user fees and charges should be segregated into their own funds or fund accounts to assist in cost accounting and ensuring fees and charges are recovering an adequate portion of costs.
Enterprise Funds
Budgets for Enterprise Funds will include the required level of debt service coverage for the fund and a description of the relationship between operating budgets and construction budgets.
Financial Planning Goals
The City of Beaumont will prepare long-range financial plans to guide the Mayor and City Council in adopting the City budget and to assist the City Council in ensuring the delivery of needed services through inevitable economic cycles. The financial plans will help the Mayor, Council and community evaluate the financial impact of all programs within the regional and local economic conditions. The plans will also assist in coordinating funding needs among enterprise, special revenue, and General Fund functions.
Financial planning and budgeting will be based on the following principles:
1. Revenue estimates will be prepared on a conservative basis to minimize the possibility that economic fluctuations could surprise the City and jeopardize ongoing serve delivery during the fiscal year.
2. Expenditure estimates will anticipate needs that are reasonably predicable. 27
City of Beaumont -Finance Department Policies and Procedures Manual 2025
3. Forecasts will rely on a common set of basic economic assumptions that will be established, updated, and distributed by the Finance Depaitinent.
Financial Plans and Forecasts
Prior to the initiation of the annual budget process, the Finance Department will prepare an annual City financial assessment report. This report will include a comprehensive overview of the City's financial condition.
Five-year financial forecasts and plans will be prepared annually for the General Fund, General Fund departments, major Enterprise Funds, Special Revenue Funds, and other funds that materially affect the City. Plans will be based on current service levels and funding sources, as well as anticipated changes to service levels and funding. If appropriate, the plans will identify additional resources needed to continue current service levels or identified service adjustments.
General Fund departments will forecast and monitor their own revenues and expenditures. The Finance Department will assist departments in developing appropriate systems, will retain fiscal oversight responsibility for the entire City and will publish regular financial status reports on revenues and expenditures.
Enterprise Fund and Special Revenue Fund forecasts will identify any impact on rates. The forecasts will discuss how standards for debt service coverage and operating reserves are established and maintained.
Departments that manage Enterprise and Special Revenue Funds will prepare and coordinate with the Finance Department on the presentation of regular status reports on revenues and expenditures.
Capital and Other Asset Plans
The departments that are responsible for major infrastructure and utility improvements will complete 10 or 20 -year master plans to support growth and replacement needs. The master plans must support and reconcile with the City's major planning documents.
The City will annually prepare a Citywide five-year Capital Improvements Plan (CIP) that provides the Mayor and City Council with an overview of the condition of its infrastructure. It should include prioritized department needs for capital replacement, additions, and major maintenance, along with the potential impacts of not funding certain projects. The plan will include estimated project costs and operating costs and will identify funding sources. Staff will ensure the proposed funding is in fact an eligible source under state law. It will highlight what projects are fully funded and which ones are not.
The City will annually adopt a Capital Budget that will include estimated resources and capital expenditures based on the first year of the current Capital Improvements Plan. Other major asset categories critical to service delivery such as facilities, fleet and technology will also have master plans to ensure their timely replacement.
The City will identify and include fu1 costs of future maintenance needs and annual operating costs of new capital improvements and equipment prior to funding as part of the Capital Budget.
In general, all assets will be maintained at a level that protects capital investment and minimizes future maintenance and replacement costs. A high priority will be placed on maintenance where deferring maintenance will result in greater costs to restore or replace neglected facilities such as roads. Each 28
City of Beaumont -Finance Department Policies and Procedures Manual 2025 department with major capital assets will maintain accurate information on the condition and lifespan of its major assets to assist in long-term planning, such as a pavement management index (PMI). Each department with major capital assets will develop replacement costs data for major assets to assist in City asset management and investment decisions.
Maintenance and operations of major capital assets should be given priority over acquisition of new assets.
Revenue Goals
1. The City will maximize and diversify its revenue base to raise sufficient revenue to support essential City services and to maintain services during periods of declining economic activity. The City's overall revenue structure will be designed to recapture some of the financial benefits resulting from City economic and community development investments. Revenue collection efforts that produce positive net income for City service delivery will be the highest budget priority.
2. Departments that primarily or exclusively operate with non -General Fund revenue will minimize reliance on General Fund support for discrete programs that are not supported with fees.
Unfunded Mandates
The City will oppose state or federal actions that mandate expenditures that the Mayor and City Council consider unnecessary and unfunded. The City will pursue intergovernmental funding to support the incremental cost of such mandates.
Debt Management
Public borrowing through lease -purchase agreements, general obligation (GO) bonds, revenue bonds, certificates of participation (COP) or other legal debt instruments may be in the public's best interest.
However, the City will pursue policies that will not saddle the City and its residents with excessive public debt and will carefully scrutinize any public borrowing proposals. Therefore, the City Council, City Manager or other staff members must use debt in a wise and judicious manner. Where public borrowing is considered appropriate by the City Council. It will be done in compliance with California law and in accordance with the following policies:
1. Debt is limited to equipment purchases and major capital projects. It is not used for general operating expenses. It is the policy of the City to maintain cash balances at a sufficient level for general operating costs (those items normally funded in the City's annual operating budget and having a useful life of less than one year). Short-term securities may be issued in cases where the City's normal cash flow has been disrupted as a result of natural disaster or unexpected delays in the receipt of federal or state revenues.
2. The maturity date for any debt does not exceed the reasonable expected useful life of the equipment or capital improvement being financed.
3. When practical, the City will develop, authorize, and issue revenue, special fee or other self- supporting debt instruments instead of incurring long term obligations payable from General Fund revenues.
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City of Beaumont -Finance Department Policies and Procedures Manual 2025
4. Coverage for revenue bonds or special fee debt instruments shall be determined based on advice of the City's Municipal Advisor, Bond Counsel and Underwriters in a manner to best align with the City's financing goals of achieving the lowest cost of borrowing, financial flexibility and security for bond owners.
5. The City will maintain good communication with the public and City Council regarding its financial condition.
6. The City will regularly evaluate its adherence to its debt policies. The City will promote effective communications with bond rating agencies and others in the bond marketplace based on full disclosure.
7. The City will adhere to its Beaumont amended and restated disclosure procedures.
To the extent feasible, debt issuances will be packaged and planned to minimize issuance fees and interest rates.
Risk Management
The City will maintain adequate levels of insurance and implement a risk management program for public liability, workers' compensation, and related exposures. The program will emphasize avoidance of risk whenever possible, funding for losses which cannot be avoided and transfer of risk to third parties whenever appropriate.
The risk management program will include the systematic and continuous identification of loss perils and exposures, the analysis of these in terms of frequency and severity probabilities, the appropriate application of sound risk control procedures and the financing of potential claims and administration costs within the City budget.
The City will use outside claims administrators.
As part of the annual budget process, staff will segregate and report to the Mayor and City Council the past results of the risk management program, its relative financial status and plans for the future. Resources will be established to fund open claims liabilities, incurred but not reported (IBNR) claims and a catastrophic reserve or insurance as annual recommended by an independent actuary, or as authorized by Generally Accepted Accounting Principles (GAAP).
Interest Earnings
The Finance Department will assign interest earnings and expenses to the appropriate accounting fund based on available cash balances consistent with generally accepted accounting principles (GAAP).
Investment policies will be reviewed annually and brought to the Mayor and Council for approval.
Internal Control
The City Manager, through the Finance Director, will be responsible for implementing and maintaining a 30
City of Beaumont -Finance Department Policies and Procedures Manual 2025 comprehensive system of internal controls that provides reasonable assurance that the City is operating in a way that is consistent with the desires of the City Council. Separation of duties, administrative policies and procedures, accounting and reporting tools and an overall organizational culture will be designed and encouraged to ensure the public's assets are protected and the City's business practices are in compliance with state and federal law, sound ethical principles, best management practices and City Council policy.
Budget Adoption Procedures
Budgetary procedures for the City have been established by the City Council, which require the legal adoption of a budget for all Accounting Funds. The following are the administrative procedures followed by the City in its budgetary process. (Please also see Figure 1.)
1. Budget Preparation. Department heads meet with employees and prepare proposed operating and capital budgets, as well as department goals and performance standards for the coming fiscal year based on guidance provided by the Finance Director, City Manager and City Council. The department heads submit these proposed budgets along with proposed goals and performance standards to City Manager no later than March 1. The Finance Director and City Manager takes information prepared by department heads and prepares the proposed budget for the coming fiscal year for the City Council.
2. Budget Presentation. During the month of May, the City Manager, authorized by the City Council to act as the Budget Officer, submits a proposed operating and capital budget for all Governmental, Proprietary, Fiduciary Funds and other accounting funds to the City Council for the subsequent fiscal year. The budget documents illustrate proposed financing sources along with the proposed operating and capital budget expenditures.
3. Budget Work Meetings. The Finance and Audit Committee will hold one or more public meetings to review the long-term fiscal forecast and the City Council will hold one or more public budget work meetings to review the proposed annual budget.
Figure 1
Annual Budget Calendar
Annual Budget Event
Time
Comments
Department heads submit proposed
operating and capital budgets, goals
and performance standards to City
Manager.
March 1
City Manager and Finance Director take
information prepared by department heads and
prepare the proposed budget for coming fiscal
year.
City Manager presents proposed
budget to City Council.
May and June
Proposed operating and capital budgets for all
Accounting Funds are distributed to public, press
and City Council. Copies are available for public
review at City Hall and on City website.
City Council reviews budget in work
meetings
May and June
City Council conducts reviews during work
meetings.
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City of Beaumont -Finance Department Policies and Procedures Manual 2025 Public is invited to comment on proposed annual
Public Hearing
June
budget. City Council makes final budget changes.
City Manager incorporates changes made by City
Council into final budget document.
Final budget is adopted by the City Council.
Since City revenues are highly dependent upon
Budget Adoption by City Council
June 30
the actions of the State Legislature, final budget
adoption may be delayed in any given year until
state budget is adopted.
4. Budget Public Hearing. A public hearing is held to receive comments on all aspects of the proposed budget. A notice in the local newspaper precedes the hearing. This notice is given at least ten days before the hearing and includes the time, date and place of the hearing. All budget documents are required to be available at least seven days prior to the public hearing.
5. Budget Adoption. A final budget is adopted by the City Council for the subsequent fiscal year beginning July 1. Since city revenues are highly dependent upon the actions of the State Legislature, final budget adoption may be delayed in any given year until the Governor and State Legislature adopt a state budget.
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City of Beaumont -Finance Department Policies and Procedures Manual 2025 Statement of Investment Policy
Introduction
In accordance with the charter of the City of Beaumont and under authority granted by the City Council, the City Manager is designated the responsibility for investing the unexpended cash in the City Treasury and the overall conduct of the City's investment program. The intent of this Investment Policy is to formalize the framework for the investment activities that shall be exercised to ensure the effective and judicious fiscal and investment management of the City's funds. The City's portfolio shall be designed and managed in such a manner as to comply with state and local laws, provide for daily cash flow requirement, ensure consistency with the prioritized objectives of safety, liquidity, and return, and in a manner consistent with prudent investment management and worthy of the public trust.
Governing Authority
The City's investment program shall be managed in conformance with federal, state, and other legal requirements, including California Government Code Sections 16429.1-16429.4, 53600-53609, and 53630- 53686. This Investment Policy was endorsed and adopted by the City Council and is effective May 18, 2021. This Investment Policy shall replace all previous versions.
Scope
The City's investment policies apply to all personnel, departments, divisions, and offices of the City government as well as all associated accounting funds under the direct authority of the City of Beaumont.
These accounting funds include, but are not limited to, the General Fund, Special Revenue Funds, Enterprise Funds, Internal Service Funds, Debt Service Funds, Capital Projects Funds, Private -Purpose Trust Funds and Agency Trust Funds. These investment policies are also applicable to the City's blended component units, including the Beaumont Utility Authority ,Beaumont Public Improvement Authority, Beaumont Financing Authority, and Beaumont Parking Authority.
The City commingles its investable assets to maximize interest earnings and to increase efficiencies with respect to investment pricing, safekeeping, and administration. Investment income will be allocated to the various funds based on their respective percentage participation in the total fund and in accordance with generally accepted accounting principles.
Proceeds arising from the issuance of debt shall be invested in accordance with the provisions of their governing bond documents and in a manner consistent with the City's general investment philosophy as outlined in this Investment Policy.
Responsibility
The City Manager is ultimately responsible for the City's implementation and compliance with these policies unless the City Council authorizes exceptions. Under the direction of the City Manager, the Finance Director will review, develop and implement a system of processes and procedures to ensure compliance with these policies throughout the entire organization. The City Manager will work with the Finance Director to ensure these policies are updated on a timely basis. 33
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Pooling of Funds
The City of Beaumont consolidates cash balances from all eligible funds to maximize investment earnings.
Funds held by the Trustee are not eligible to be pooled. The City schedules its collection of receipts, deposits of funds and disbursements of monies to ensure maximum availability of cash for temporary investment purposes. Investment income is allocated to the various Funds based on their respective participation and in accordance with Generally Accepted Accounting Principles (GAAP).
Objectives
The prioritized objectives of the City's investment program are to preserve principal (safety), ensure sufficient liquidity (liquidity), and generate a market rate of return (return).
1. Safety: Safety of principal is the foremost investment objective of the City's investment program.
Investment shall be undertaken in a manner designed to ensure the preservation of capital in overall portfolio growth. The City shall seek to preserve principal by mitigating credit risk and interest rate risk.
2. Liquidity: The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. Because not all liquidity needs can be anticipated, the investment portfolio shall focus on securities with active secondary and resale markets.
3. Return: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints of safety and liquidity.
Set forth in section 17 of this Investment Policy are certain strategies and principles utilized by the City to manage investment risks.
Standard of Care
The standard of prudence to be used by City investment officials shall be the "Prudent Investor Standard" and shall be applied in the context of managing the overall portfolio. As set forth in the California Government Code 53600.3, the Prudent Investor Standard states:
"...all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law." Consistent with the objectives set forth in section vi of this Investment Policy, in addition to safeguarding invested principal and ensuring sufficient liquidity for the City, a prudent investor should also seek to optimize portfolio return subject to these constraints. 34
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Indemnification
The City Manager, Finance Director, Finance Committee, City Council and other authorized persons responsible for managing or overseeing City funds, acting in accordance within written procedures and the intent and scope of this Investment Policy and exercising due diligence, shall be relieved of personal liability for an individual security's credit risk or market price changes, provided that deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.
Ethics and Conflicts of Interest
Officers and employees involved in the investment process will refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions. Consistent with the requirements of the California fair Political Practices Commission, employees and investment officials will disclose any material interest in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio.
Employees and officers will refrain from undertaking personal investment transactions with the same individual with whom business s is conducted on behalf of the City of Beaumont.
Delegation of Authority
The authority to manage the City's investment program is provided by the California Government Code Sections 53600 et seq. Authority to manage the City's investment program is granted to the City Manager and his or her designee. Responsibility for the operation of the investment program is hereby delegated to the Finance Director, who shall act in accordance with this investment policy. The Finance Director shall establish procedures for the operation consistent with this investment policy and may authorize other finance department staff to initiate investment transactions. All participants in the investment process shall seek to act responsibly as custodians of the public trust. No officer or designee may engage in an investment transaction except as provided under the terms of this policy and supporting procedures.
The City may contract with one or more external investment managers to assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy.
Such managers must be registered under the Investment Advisers Act of 1940 and specialize in the management of public funds fixed income portfolios.
Finance Committee
A Finance Committee is established to provide general oversight and direction concerning policy related issues concerning management of the City's investment portfolio. The committee shall meet quarterly unless circumstances require more frequent meetings.
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City of Beaumont -Finance Department Policies and Procedures Manual 2025 Authorized Financial Institutions, Depositories, Broker Dealers, and Competitive Transactions
In circumstances where the investment portfolio is managed internally, the requirements set forth in Sections A and B, below, shall apply:
1. The City shall maintain a list of financial institutions and depositories authorized to provide investment services. In addition, the City shall maintain a list of approved security broker/dealers selected by conducting a process of due diligence. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission ("SEC") Rule 15C3-1 (uniform net capital rule). The Finance Director will determine which financial institutions are authorized to provide investment services to the City. Institutions eligible to transact investment business with the City include:
a) Primary government dealers as designated by the Federal Reserve System b) Regional broker/dealers qualified under SEC Rule 15C3-1 c) Nationally or state -chartered banks
d) The Federal Reserve Bank
e) Direct Issuers of securities eligible for purchase
2. Investment staff shall review broker/dealers who would like to transact with the City to determine if they are adequately capitalized and make markets in the securities appropriate to the City's needs.
The Investment Officer shall send a copy of the current investment policy to all broker/dealers approved to transact with the City. Financial institutions which desire to become qualified broker/dealers for investment transactions (and which are not transacting solely through an investment advisor) must provide the City with a statement certifying that the institution has reviewed the California Government Code Section 53600 et seq. and the City's Investment Policy.
The selection of broker/dealers shall be at the sole discretion of the City.
3. Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the investment adviser, provided such broker/dealers meet the requirements set forth in section A, above.
4. Public deposits will be made only in qualified public depositories as established by State statutes.
Deposits will be insured by the Federal Deposit Insurance Corporation (FDIC), or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with state statutes. A written contract of deposit of public funds must be obtained from the financial institution, indicating the institution's policy and process of FDIC insurance and collateralization.
5. It is the policy of the City to require competitive bidding from at least three broker/dealers for investment transactions that are not classified as "new issue" securities whenever possible and practical. Such competitive bidding can be executed through competitive bidding or through the use of a nationally recognized trading platform. In such circumstances where competitive price comparisons are not available, best efforts will be made to document quotations for comparable or alternative securities.
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City of Beaumont -Finance Department Policies and Procedures Manual 2025 Security Safekeeping and Delivery Procedures
Third -Party safekeeping: To protect against fraud, embezzlement, or losses caused by collapse of an individual securities dealer and to enhance access to securities and interest payments, all securities owned by the City shall be held in safekeeping by a third -party bank trust department acting as agent for the City under the terms of a duly executed custody agreement. In connection with the City's annual independent audit, securities held in custody are audited to verify investment holdings. No outside broker/dealer or advisor may have access to the City funds, accounts or investments, and any transfer of funds to or through an outside broker/dealer must be approved by the City Council.
Delivery -Versus -Payment: All trades of marketable securities shall be cleared and settled on a standard delivery -versus -payment ("DVP") basis to ensure that securities are deposited in the City's safekeeping account prior to the release of funds.
Internal Controls
A system of internal controls has been established to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, or unanticipated changes in financial markets. Internal controls deemed most important include control of collusion, separation of transaction authority from accounting and record keeping, custodial safekeeping, avoiding physical delivery of securities, clear delegation of authority to subordinate staff members, written confirmation of transactions for investments and wire transfers and development of a wire transfer agreement with the lead bank and third -party custodian. Furthermore, an independent analysis by an external auditor shall be conducted annually to review internal control, account activity, and compliance with policies procedures, and applicable laws.
Authorized Investments
The investment of City funds shall be made in accordance with Sections 53600 et seq. of the California Government Code and in accordance with this Investment Policy. Permitted investments for the City shall include the following security types and related credit quality, maturity, and diversification constraints.
1. Municipal Bonds: Bonds issued by the City, the State of California, any other of the 49 states in addition to California, and any local agency within the state of California. This authorization includes the ability to invest in obligations payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by a state or any local agency in the state of California or by a department, board, agency, or authority of a state or any local agency in the state of California. a) Credit Quality: Securities in this category shall have a minimum credit rating of A (or its equivalent) by at least one nationally recognized statistical rating organization at the time of purchase.
b) Maximum Maturity: Five years at the time of purchase as measured by the settlement date. c) Diversification: No more than 5% of the portfolio may be invested in any single issuer. No more than 30% of the portfolio may be invested in this category.
2. U.S. Treasury Obligations: United States Treasury bills, notes, bonds, and certificates of indebtedness or those for which the faith and credit of the United States are pledged for the payment of principal and interest.
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City of Beaumont -Finance Department Policies and Procedures Manual 2025 a) Credit Quality: No minimum credit rating required for securities in this category. b) Maximum Maturity: Five years at the time of purchase as measured by the settlement date. c) Diversification: There are no dollar or percentage limits on securities in this category.
3. Federal Agency and Government Sponsored Enterprise Obligations: Federal agency or United States government -sponsored -enterprise obligations, participants, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government -sponsored enterprises.
a) Credit Quality: No minimum rating required for securities in this category. b) Maximum Maturity: Five years at the time of purchase as measured by the settlement date. c) Diversification: There are no dollar or percentage limits individual issuers in this category.
4. Commercial Paper: Commercial paper of "prime" quality and issued by a corporation organized and operating in the United States with total assets of at least $500 million. a) Credit Quality: Securities in this category must be rated "A-1" (or the equivalent) or higher by at least one nationally recognized statistical rating organization. In addition, debt other than commercial paper (if any) issued by corporations in this category must be rated at least "A" (or the equivalent) or better by at least one nationally recognized statistical rating organization. b) Maximum Maturity: 270 days at the time of purchase as measured by the settlement date. c) Diversification: No more than 5% of the City's portfolio may be invested in any single issuer of commercial paper. For purposes of this issuer limitation, holdings of commercial paper and medium -term notes of a single issuer shall be limited to 10% of total portfolio assets. No more than 25% of the total portfolio may be invested cumulatively in commercial paper or asset - backed commercial paper as defined in Section 6, below. No more than 10% of the outstanding commercial paper of any single issuer may be purchased.
5. Asset -Backed Commercial Paper: Asset -Backed Commercial paper of "prime" quality and issued by an entity organized within the United States as a special purpose corporation, trust, or limited liability company.
a) Credit Quality: Securities in this category must be rated "A-1" (or the equivalent) or higher by at least one nationally recognized statistical rating organization. In addition, the issuing entity must have program wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. b) Maximum Maturity: 270 days at the time of purchase as measured by the settlement date. c) Diversification: No more than 5% of the City's portfolio may be invested in any single issuer of commercial paper. For purposes of this issuer limitation, holdings of commercial paper and medium -term notes of a single issuer shall be limited to 10% of total portfolio assets. No more than 25% of the total portfolio may be invested cumulatively in asset -backed commercial paper 38
City of Beaumont -Finance Department Policies and Procedures Manual 2025 or commercial paper as defined in Section 5, above. No more than 10% of the outstanding commercial paper of any single issuer may be purchased.
6. Federally Insured Time Deposits: Non-negotiable certificates of deposit in state or federal chartered deposit insurance.
a) Credit Quality: Securities in this category shall be limited to the maximum amount covered by federal deposit insurance.
b) Maximum Maturity: Five years at the time of purchase as measured by the settlement date. c) Diversification: No more than 5% of the portfolio may be invested in any single issuer of non- negotiable or negotiable certificates of deposit. No more than 15% of the portfolio may be invested in any combination of non-negotiable certificates of deposit as set forth in subsections 6, 7, and 8 hereto. No more than 30% of the portfolio may be invested in any combination of non-negotiable or negotiable certificates of deposit.
7. Collateralized Time Deposits: Non-negotiable certificates of deposit in state or federally chartered banks, savings and loans, or credit unions in excess of federal deposit insurance limits which are fully collateralized in accordance with state law.
a) Credit Quality: Securities in this category exceeding federal deposit insurance limits shall be collateralized in accordance with state law and be issued by institutions which have long-term debt obligations rated "A" (or the equivalent) or better and short-term debt obligations, if any, rated "Al" (or the equivalent) or better by at least two nationally recognized statistical rating agencies.
b) Maximum Maturity: Five years at the time of purchase as measured by the settlement date. c) Diversification: No more than 5% of the portfolio may be invested in any single issuer of non- negotiable or negotiable certificates of deposit. No more than 15% of the portfolio may be invested in any combination of non-negotiable certificates of deposit as set forth in subsections 7, 8, and 9 hereto. No more than 30% of the portfolio may be invested in any combination of non-negotiable or negotiable certificates of deposit.
8. Certificate of Deposit Placement Services: Non-negotiable certificates of deposit at a commercial bank, savings bank, savings and loan association, or credit union that that uses a private sector entity to assist in the placement of deposits (e.g., CDARS).
a) Credit Quality: The full amount of each deposit and the interest that may accrue on each such deposit shall at all times be insured by federal deposit insurance. b) Maximum Maturity: Five years at the time of purchase as measured by the settlement date. c) Diversification: No more than 5% of the portfolio may be invested in any single issuer of non- negotiable or negotiable certificates of deposit. No more than 15% of the portfolio may be invested in any combination of non-negotiable certificates of deposit as set forth in subsections 7, 8, and 9 hereto. No more than 30% of the portfolio may be invested in any combination of non-negotiable or negotiable certificates of deposit.
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9. Negotiable Certificates of Deposit: Negotiable certificates of deposit issued by a nationally or state -chartered bank, a savings association, or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or a federally licensed or state -licensed branch of a foreign bank.
a) Credit Quality: Securities in this category exceeding federal deposit insurance limits shall be issued by institutions which have long-term debt obligations rated "A" (or the equivalent) or better and short-term debt obligations, if any, rated "A-1" (or the equivalent) or better by at least two nationally recognized statistical rating agencies. b) Maximum Maturity: Five years at the time of purchase as measured by the settlement date. c) Diversification: No more than 5% of the portfolio may be invested in any single issuer of non- negotiable or negotiable certificates of deposit. No more than 30% of the portfolio may be invested in any combination of non-negotiable or negotiable certificates of deposit.
10. Repurchase Agreements: Repurchase agreements with specific terms and conditions may be transacted with banks and brokers. Such investments must be subject to a "Master Repurchase Agreement" substantially m the form developed by the Securities Industry and Financial Markets Association ("SIFMA").
a) Credit Quality: Repurchase agreements shall be collateralized with U.S. Treasury and Federal Agency securities (as authorized herein) maintained at a value of at least 102% of the market value of the repurchase agreement. Securities used as collateral for repurchase agreements shall be delivered to the City's custodian bank.
b) Maximum Maturity: 1 year at the time of entry.
c) Diversification: There are no dollar or percentage limits on securities in this category.
11. Medium -Term Corporate Notes: Medium -term corporate notes shall mean all corporate and depository institution debt securities issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
a) Credit Quality: Securities in this category shall be rated in the "A" category or better by at least two nationally recognized statistical rating organizations at the time of purchase. b) Maximum Maturity: Five years at the time of purchase as measured by the settlement date. c) Diversification: No more than 5% of the portfolio may be invested in any single issuer. No more than 10% of the total portfolio may be invested in the commercial paper and medium - term notes of a single issuer. No more than 30% of the portfolio may be invested in this category.
12. Money Market Mutual Funds: Money market mutual funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15U.S.C. Sec. 80a-1 et seq.) meeting the credit quality requirements set forth below or retaining an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' 40
City of Beaumont -Finance Department Policies and Procedures Manual 2025 experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).
a) Credit Quality: Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations. b) Maximum Maturity: No maturity restrictions apply.
c) Diversification: No more than 20% of the portfolio may be invested in this category.
13. Mortgage Pass -Through and Asset -Backed Securities: Mortgage pass -through securities, collateralized mortgage obligations, mortgage -backed or other pay -through bond, equipment lease - backed certificate, consumer receivable pass -through certificate, or consumer receivable -backed bonds meeting the requirements set forth below.
a) Credit Quality: Securities eligible for investment under this subdivision not issued or guaranteed by an agency or issuer identified in subdivision (2) or (3) shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less.
b) Maximum Maturity: Five years at the time of purchase as measured by the settlement date. c) Diversification: With the exception of obligations issued or guaranteed by an agency or issuer identified in subdivision (2) or (3) no more than 5% of the portfolio may be invested in any single issuer. No more than 10% of the total portfolio may be invested in this category.
14. State of California Local Agency Investment Fund: The State of California Local Agency Investment Fund ("LAIF") managed by the State of California Treasurer's Office. a) Credit Quality: No credit rating requirements exist for LAIF. In addition, should LAIF invest in securities or instruments prohibited or not specifically authorized by the City's Investment policy, the City is not prohibited from investing in LAIF provided sufficient information is available to allow the City to understand the risks associated with investing in LAIF. b) Maximum Maturity: No maturity restrictions apply.
c) Diversification: The City may invest up to the maximum amount permitted by California state law.
15. Joint Powers Authority Pools: Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in securities authorized by California Government Code Section 53601 subdivisions (a) to (r), inclusive, and that has retained an investment adviser that is registered or exempt from registration with the Securities and Exchange Commission having not less than five years of experience investing in the securities and obligations authorized by California Government Code Section 53601 and having at least five hundred million dollars ($500,000,000) under management.
a) Credit Quality: There are no credit rating requirements for Joint Powers Authority Pools. b) Maximum Maturity: No maturity restrictions apply.
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City of Beaumont -Finance Department Policies and Procedures Manual 2025 c) Diversification: The City may invest up to the maximum amount permitted by California law.
16. Supranational Securities: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank eligible for purchase and sale within the United States.
a) Credit Quality: Securities in this category shall be rated in the "AA" category or better by at least one nationally recognized statistical rating organization at the time of purchase. b) Maximum Maturity: Five years at the time of purchase as measured by the settlement date. c) Diversification: No more than 10% of the portfolio may be invested in any single issuer. No more than 15% of the portfolio may be invested in this category.
Bond Proceeds: Proceeds arising from the issuance of debt shall be invested in accordance with the provisions of their governing bond documents and in a manner consistent with the City's general investment philosophy as outlined in this Investment Policy. Bond proceeds are not eligible as a part of the City's pooled funds. Securities authorized by the bond indenture or similar investment documents that are not authorized by the City's Investment Policy will be considered approved investments for bond proceeds when the bond indenture or similar authorizing document is approved by the City Council. Bond reserve funds, escrow funds and any funds approved by the City Council may be invested in securities with maturity limits of five years or an appropriate longer period. The bond indenture shall provide any specific restrictions or limitations on either the nature or the duration of the investments and should be the governing document.
Note on Credit Quality Requirements: Should the credit rating of a security owned by the City be downgraded to a level below that required by this Investment Policy, the City will review the credit situation and determine if such securities should be sold or retained in the portfolio based upon its remaining term to maturity, the credit outlook for the issuer, and other relevant facts and circumstances. If the decision is made to retain a downgraded security, it will be closely monitored by the City and reported quarterly to the Finance Committee.
Note on Maximum Maturity Limitation: The five-year maturity limitation of this Investment Policy shall be measured as of the transaction settlement date. In accordance with section 53601 of the California Government Code, this five-year maturity limitation may be extended if deemed prudent by the Investment Officer and provided that the City Council has approved such investment either specifically or as part of an investment program approved by the legislative body no less than three months prior to the investment.
Note on Diversification Requirements: The diversification requirements set forth above relating to the maximum allowable percentage for a particular issuer or investment type shall apply at the time of purchase. Due to fluctuations in the aggregate invested balance, these maximum percentages may be exceeded from time to time and shall not require liquidation to realign the portfolio. However, consideration should be given to this matter when future purchases are made.
Note on Other Requirements: Should any investment fall out of compliance with any other guidelines of this policy after its purchase, the City will review the situation and determine if such securities should be sold or retained in the portfolio based upon its remaining term to maturity, the credit outlook for the issuer, and other relevant facts and circumstances. If the decision is made to retain such a security, it 42
City of Beaumont -Finance Department Policies and Procedures Manual 2025 will be closely monitored by the City and reported quarterly to the Finance Committee.
Prohibited Investments and Practices
Provided below are certain prohibited investments and investment practices intended to help safeguard invested balances.
1. In accordance with California Government Code section 53601.6, investments in inverse floaters, range notes, mortgage -derived interest -only strips are prohibited. In addition, the purchase of any security that could result in zero interest accrual if held to maturity is also prohibited except for the purchase securities issued or backed by the United States government in the event of, and for the duration of, a period of negative market interest rates.
2. Investments not specifically described herein are prohibited.
3. The purchase or sale of securities on margin is prohibited.
4. The purchase of securities denominated in foreign currencies is prohibited.
5. The purchase or sale of securities done solely to speculate on the direction of future interest rates is prohibited.
Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, any such monies shall be reinvested only as provided for in this policy.
Managing Portfolio and Investment Risks
Safety of principal is the foremost investment objective of the City. Each investment transaction shall seek to ensure that capital losses are avoided, whether from securities default, broker/dealer default, or erosion of market value. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust. In a diversified portfolio, it must be recognized that occasional measured losses are inevitable and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented. The City shall seek to preserve principal by mitigating credit risk and market risk as set forth below.
Mitigating Credit Risk: Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City shall seek to mitigate credit risk by adopting the following strategies:
1. Adhering to the diversification requirements set forth in Section XIII of this policy which limits the amount of the total portfolio that may be invested in any single issuer.
2. Utilizing an active management strategy that allows for the sale of securities prior to their scheduled maturity dates for purposes of improving the portfolio's credit quality, liquidity, yield, or return profile in response to changing market conditions or City circumstances.
3. Reviewing downgraded securities. Should the credit rating of a security owned by the City be downgraded to a level below that required by this Investment Policy, the City will review the credit situation and determine if such securities should be sold or retained in the portfolio based upon its remaining term to maturity, the credit outlook for the issuer, and other relevant facts and circumstances.
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4. Monitoring any downgraded securities. If the decision is made to retain a downgraded security, it will be closely monitored by the City and reported quarterly to the Investment Committee.
Mitigating Interest Rate Risk: Market risk is the risk that the value of a security or portfolio will fluctuate due to changes m the general level of interest rates. The City understands that while longer -term portfolios have the potential to generate higher investment returns over time, they also exhibit a greater volatility of return. In addition, the City further recognizes certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded call options, will affect the market risk characteristics of the portfolio differently. Accordingly, the City will mitigate market risk by adopting the following strategies:
1. The City shall maintain sufficient balances in short-term investments to provide liquidity for expected and contingent expenditures thereby limiting the need to sell securities prior to maturity.
Liquidity funds shall be maintained in short-term investments such as LAIF, deposit accounts collateralized in accordance with state law, and money market funds and instruments with minimal market risk.
2. Longer -term securities shall be scheduled to mature in advance of known expenditure requirements whenever possible.
3. The City shall avoid the purchase of securities for the sole purpose of short-term speculation.
4. The maximum stated final maturity of any security in the portfolio shall be five years, except as otherwise stated in this Investment Policy.
5. The maximum percentage of callable securities (excluding securities with "make whole" call provisions) held in the portfolio shall be 20%.
6. The weighted average duration of the actively managed portion of the portfolio, i.e., non -liquidity funds, shall be maintained in a range of +/- 25% the duration of a market benchmark as selected by the City based upon the City's risk tolerances and investment objectives.
Performance Standards & Evaluation
Consistent with the City's circumstances and risk tolerances, the investment performance objective for the managed portfolio shall be to earn a total rate of return over market cycles that is approximately equal to the return on the City's chosen benchmark index.
Reporting and Disclosure
In accordance with Government Code Section 53646(8)(1), the City Treasurer shall submit to the Finance Committee a quarterly report that will then be taken to the City Council. The report shall include a complete description of the portfolio, the type of investments, the issuers, maturity dates, par values and the current market values of each component of the portfolio, including funds managed for the City of Beaumont by third party contract managers. The report will also include the source of the portfolio valuation. As specified in Government Code 53646(e), if all funds are placed in the Local Agency Investment Fund (LAIF), FDIC insured accounts and/or county investment pool, the foregoing report elements may be replaced by copies of the latest statements from such institutions. The report must also include a certification that (1) all investment actions executed since the last report have been in full compliance with the investment policy, and, (2) the City of Beaumont will meet its expenditures obligations within the cash 44
City of Beaumont -Finance Department Policies and Procedures Manual 2025 flow needs.
Policy Review and Adoption
The City of Beaumont's investment policy shall be adopted by resolution of the City Council on, at minimum, an annual basis. This investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return as well as its relevance to current law and financial and economic trends. In accordance with Senate Bi11 564 and Senate Bi11 866, effective January 1, 1996, the City staff brings forward each year the City's Investment Policy for review by the City Council. Any amendments to the policy shall be forwarded to City Council for approval.
City of Beaumont Investment Policy
Glossary of Terms
This Glossary of Terms is provided for general reference purposes only and does not constitute or reflect an exhaustive or exclusive list of terms and definitions that may be applicable to the City of Beaumont's Investment Policy Statement. The definitions included herein do not modify or otherwise amend or supersede any of the terms of this Investment Policy Statement or applicable State or Federal law.
ACCRUED INTEREST: The amount of interest that is earned but unpaid since the last interest payment date.
ADJUSTABLE -RATE NOTE: (See Floating Rate Note)
AGENCY SECURITIES: (See U.S. Government Agency Securities) AMORTIZATION: The systematic reduction of the amount owed on a debt issue through periodic payments of principal.
ASSET -BACKED COMMERCIAL PAPER: A short-term investment vehicle with a maturity date that is typically between 90 and 270 days. A bank or other fmancial institution typically issues the security itself.
The notes are backed by the company's physical assets such as trade receivables. Companies will use an asset -backed commercial paper to fund short-term financing needs.
AVERAGE LIFE: The average length of time that an issue of serial bonds and/or term bonds with a mandatory sinking fund feature is expected to be outstanding.
ASKED PRICE: The price at which securities are offered from a seller.
ASSET BACKED SECURITIES (ABS): (See Receivable -Backed Securities) BANKERS' ACCEPTANCE (BA): Negotiable money market instruments issued primarily to finance international trade. These are time drafts in which a bank "accepts" as its financial responsibility to pay the principal at maturity even if the importer does not. In essence, these are bank obligations collateralized by goods being shipped between an exporter and an importer.
BASIS POINT: When a yield is expressed as percentage terms (e.g., 2.25%), the digits to the right of the decimal point are known as basis points. One basis point equals 1/100 of one percent. Basis points are used more often to describe changes in yields on bonds, notes and other fixed -income securities. 45
City of Beaumont -Finance Department Policies and Procedures Manual 2025 BENCHMARKS: Indexes created to include multiple securities representing some aspect of the total market. Benchmarks are often used as a standard against which the performance of a security, mutual fund, or investment manager may be measured.
BID PRICE: The price at which a buyer offers to buy a security.
BOND INDENTURE: The contract associated with a bond. The terms of a bond indenture include a description of the bond features, restrictions placed on the issuer, and the actions that will be triggered if the issuer fails to make timely payments.
BOND PROCEEDS: The proceeds from the sale of bonds, notes, and other obligations issued by an entity, and reserves and funds maintained by an entity for debt service purposes.
BOOK ENTRY: The system, maintained by the Federal Reserve, by which most money market securities are "delivered" to an investor's custodian bank. The Federal Reserve maintains a computerized record of the ownership of these securities and records any changes in ownership corresponding to payments made over the Federal Reserve wire (delivery versus payment). The owners of these securities do not receive physical certificates.
BOOK VALUE: The original cost of the investment, plus accrued interest and amortization of any premium or discount.
BROKER: A broker brings buyers and sellers together and is compensated for his/her service.
CALLABLE BONDS: Bonds that may be redeemed by the issuing company prior to the maturity date.
CALL PRICE: The price at which an issuer may redeem a bond prior to maturity. The price is usually at a slight premium to the bond's original issue price to compensate the holder for loss of income and ownership.
CALL RISK: The risk to a bondholder that a bond may be redeemed prior to maturity.
CAPITAL GAIN/LOSS: The profit or loss realized from the sale of a capital asset.
CERTIFICATE OF DEPOSIT (CD or NCD): A deposit of funds at a bank for a specified period of time that earns interest at a specified rate. Commonly known as "CDs" or "negotiable CDs." CERTIFICATE OF DEPOSIT PLACEMENT SERVICES: The purpose of the Certificate of Deposit Account Registry Service (CDARS) is to help people who invest in certificate of deposits (CDs) keep their money insured while also staying below the Federal Deposit Insurance Corporation (FDIC) insurance limit of $250,000 per depositor per bank.
COLLATERAL: Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public moneys.
COLLATERLIZED TIME DEPOSIT: A Time Deposit supported by collateral.
COLLATERALIZED MORTGAGE OBLIGATION (CMO): A type of mortgage -backed security that contains a pool of mortgages bundled together and sold as an investment. Organized by maturity and level of risk, CMOs receive cash flows as borrowers repay the mortgages that act as collateral on these securities. 46
City of Beaumont -Finance Department Policies and Procedures Manual 2025 In turn, CMOs distribute principal and interest payments to their investors based on predetermined rules and agreements.
COMMERCIAL PAPER (CP): Short-term unsecured promissory notes issued by corporations for maturities of 270 days or less.
CONVEXITY: A measure of a bond's price sensitivity to changing interest rates. A high convexity indicates greater sensitivity of a bond's price to interest rate changes.
CREDIT OUTLOOK: (See Rating Outlook)
CREDIT QUALITY: The measurement of the financial strength of a bond issuer. This measurement helps an investor to understand an issuer's ability to make timely interest payments and repay the loan principal upon maturity. Generally, the higher the credit quality of a bond issuer, the lower the interest rate paid by the issuer because the risk of default is lower. Credit quality ratings are provided by nationally recognized statistical rating organizations.
CREDIT RISK: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security.
CREDIT WATCH: Indicates that a company's credit is under review and credit ratings are subject to change. Positive (+) credit watch indicates that the credit rating is under review for possible upgrade.
Negative credit watch (-) indicates that the credit rating is under review for possible downgrade.
Evolving/Neutral credit watch indicates that credit rating is under review with direction uncertain.
COUPON: The rate at which a bond pays interest.
CURRENT YIELD: The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor's cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.
CUSTODIAN: A bank or other financial institution that keeps custody of stock certificates and other assets.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
DELIVERY VERSUS PAYMENT (DVP): Delivery of securities with a simultaneous exchange of money for the securities.
DERIVATIVE: A security whose interest rate of principal amount may vary and are determined by a market index or a combination of market indexes.
DISCOUNT: The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as Treasury bills and bankers' acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.
DIVERSIFICATION: An investment principle designed to spread the risk in a portfolio by dividing 47
City of Beaumont -Finance Department Policies and Procedures Manual 2025 investments among different sectors, industries and companies.
DOLLAR -WEIGHTED AVERAGE MATURITY: A calculation that expresses the "average maturity" of an investment portfolio using each investment's maturity weighted by the size of that investment.
DOWNGRADE: A negative change in the credit rating of a security.
DURATION: A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed -income security. This calculation is based on three variables:
term to maturity, coupon rate and yield to maturity. The duration of a security is a useful indicator of its price volatility for given changes in interest rates.
EMBEDDED CALL OPTION: A feature of a financial instrument that lets issuers take specified actions at some future time. Embedded call options are provisions included in some fixed -income securities that allow the issuer to call back (redeem) the issue at a date earlier than the legal final maturity date.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system. The FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.
FEDERAL FUNDS RATE: Interest rate charged by banks with excess reserves at a Federal Reserve district bank to banks needing overnight loans to meet reserve requirements. A target rate is set by the FOMC.
FEDERAL OPEN MARKET COMMITTEE (FOMC): This committee sets Federal Reserve guidelines regarding purchases and sales of government securities in the open market as a means of influencing the volume of bank credit and money.
FEDERAL RESERVE SYSTEM: A U.S. centralized banking system, which has supervisory powers over the 12 Federal Reserve banks and member banks.
FEDERALLY INSURED TIME DEPOSIT: A Time Deposit insured by the FDIC.
FITCH, INC: (see Nationally Recognized Statistical Rating Organization) FIXED -INCOME SECURITIES: Securities that return a fixed income over a specified period.
FLOATING RATE NOTE: A debt security whose interest rate is reset periodically (monthly, quarterly, annually) and is based on a market index (e.g., Treasury bills, LIBOR, etc.).
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP): GAAP is a combination of authoritative standards (set by policy boards) and the commonly accepted ways of recording and reporting accounting information. GAAP aims to improve the clarity, consistency, and comparability of the communication of financial information.
INTEREST: The amount earned while owning a debt security, generally calculated as a percentage of the principal amount.
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City of Beaumont -Finance Department Policies and Procedures Manual 2025 INTEREST RATE RISK: The risk of potential investment losses that result from a change in interest rates.
INTERNAL CONTROLS: An internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management.
INVERSE FLOATER: A bond or other type of debt whose coupon rate has an inverse relationship to a benchmark rate. An inverse floater adjusts its coupon payment as the interest rate changes.
INVESTMENT COMPANY ACT OF 1940: Federal legislation which sets the standards by which investment companies, such as mutual funds, are regulated in the areas of advertising, promotion, performance reporting requirements, and securities valuations.
INVESTMENT MANAGERS: An investment manager is a person or organization that makes investment decisions about portfolios of securities on behalf of clients under the investment objectives and parameters the client has defined.
JOINT POWERS AUTHORITY (JPA): An entity permitted under the laws of some U.S. states, whereby two or more public authorities (e.g., local governments, or utility or transport districts), not necessarily located in the same state, may jointly exercise any power common to all of them.
LETTER OF CREDIT: A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
LIQUIDITY: The speed and ease with which an investment can be converted to cash.
LOCAL AGENCY: County, city, city and county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation.
MAKE -WHOLE CALL PROVISION: A type of call provision on a bond allowing the issuer to pay off remaining debt early. The issuer typically has to make a lump -sum payment to the investor. The payment is derived from a formula based on the net present value (NPV) of previously scheduled coupon payments and the principal that the investor would have received.
MARGIN: The collateral that an investor is required to deposit with their broker or an exchange to cover the credit risk the holder poses for the broker or the exchange when trading with borrowed or leveraged funds.
MARK -TO -MARKET: The market valuation for every security in a portfolio used in determining its total market value and the Net Asset (NAV) in the case of mutual funds or other pooled investment products.
MARKET RISK: The risk that changes in overall market conditions or interest rate may adversely affect current market prices.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. 49
City of Beaumont -Finance Department Policies and Procedures Manual 2025 MASTER REPURCHASE AGREEMENT: A written contract between the parties of a repurchase agreement establishing each party's rights in all current and future transactions until termination of the contract by either party.
MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
MEDIUM -TERM NOTES (MTN): Debt securities issued by a corporation or depository institution with a maturity ranging from nine months to five years. The term "medium -term note" refers to the time it takes for an obligation to mature and includes other corporate debt securities originally issued for maturities longer than five years, but which have now fallen within the five- year maturity range. MTNs issued by banks are also called "bank notes."
MONEY MARKET: The market in which short-term debt instruments (Treasury bills, discount notes, commercial paper, bankers' acceptances, etc.) are issued and traded.
MONEY MARKET MUTUAL FUNDS: An investment company that pools money from investors and invests in a variety of short-term money market instruments.
MOODY'S INVESTORS SERVICE, INC: (See Nationally Recognized Rating Services) MORTGAGE DERIVED INTEREST ONLY STRIP: A security based solely on the interest payments from a pool of mortgages. Once the principal on the mortgages or bonds has been repaid, interest payments stop, and the value of the IO falls to zero.
MORTGAGE PASS -THROUGH SECURITIES: A security created when one or more mortgage holders form a collection (pool) of mortgages and sells shares or participation certificates in the pool. The cash flow from the collateral pool is "passed through" to the security holder as monthly payments of principal, interest, and pre -payments.
MUNICIPAL BONDS: Bonds, notes and other securities issued by a state, municipality, or county.
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO): Firms that review the creditworthiness of the issuers of debt securities and express their opinion in the form of letter ratings (e.g., AAA, AA, A, BBB, etc.). The primary rating agencies are the following: Standard & Poor's Corporation; Moody's Investor Services, Inc.; and Fitch, Inc.
NEGOTIABLE CD: (See Certificates of Deposit)
NET ASSET VALUE (NAV): A per-share valuation of a mutual fund based on total assets minus total liabilities.
NEW ISSUE SECURITIES: A new issue refers to a bond offering that is made for the first time.
NON -CALLABLE: Bond that cannot be called at the option of the issuer.
OFFER PRICE: The price asked by a seller of securities.
PAR or PAR VALUE: The amount of principal that must be paid at maturity. Also referred to as the face amount of a bond, normally quoted in $1,000 increments per bond. 50
City of Beaumont -Finance Department Policies and Procedures Manual 2025 PHYSICAL DELIVERY: The delivery of an investment to a custodian bank in the form of a physical certificate and/or supporting documents evidencing the investment (as opposed to "book entry" delivery).
PORTFOLIO: A group of securities held by an individual or institutional investor.
PREMIUM: The difference between the par value of a bond and the market value of the bond, when the market value is above par.
PRICE RISK: The risk that the price of a bond sold prior to maturity will be less than the price at which the bond was originally purchased.
PRIMARY DEALER: Banks and securities brokerages authorized to buy and sell government securities in direct dealings with the Federal Reserve Bank of New York in its execution of Federal Open Market Operations.
PRIME RATE: The base rate that banks use in pricing commercial loans to their best and most creditworthy customers.
PRINCIPAL: The face value or par value of an investment.
PRINCIPAL PAYDOWNS: A reduction in the principal amount owed on a loan or other debt often associated with mortgage -backed or other paythrough security structures subject to prepayments.
PROSPECTUS: A legal document that must be provided to any prospective purchaser of a new securities offering registered with the SEC. This can include information of the issuer, the issuer's business, the proposed use of proceeds, the experience of the issuer's management, and certain certified financial statements.
RANGE NOTE: A range note or range accrual is a structured product based on an underlying index whose returns are maximized if that index stays within the investor's defined range. Commonly referred to as range accrual note, it is a type of financial derivative.
RATING OUTLOOK: The potential direction of the credit rating assigned by a NRSRO for a specific company.
REINVESTMENT RISK: The risk that coupon payments (or other payments received) cannot be reinvested at the same rate as the initial investment.
RECEIVABLE -BACKED SECURITIES: Securities collateralized with consumer receivables, such as automobile loans, credit card receivables, or home equity loans, which are owned by the issuer, but placed with a trustee for the benefit of the investor.
RECEIVABLE PASS -THROUGH CERTIFICATE: A debt obligation that is backed by a portfolio of receivables, normally issued by a bank or financial institution. The interest and principal of the obligation is paid out of the cash flow generated by the receivable's portfolio.
REFUNDED BOND: A bond secured by an escrow fund that is sufficient to pay off the entire issue of bonds at the next call date (pre -funded) or maturity (escrowed to maturity). 51
City of Beaumont -Finance Department Policies and Procedures Manual 2025 REGISTERED STATE WARRANT: A short-term obligation of a state governmental body issued in anticipation of revenue.
REPURCHASE AGREEMENT (REPO): The purchase of securities, on a temporary basis, with the seller's simultaneous agreement to repurchase the securities back at a later date at a specified price that includes interest for the buyer's holding period.
RULE 2a-7 OF THE INVESTMENT COMPANY ACT: Applies to all money market mutual funds and mandates such funds to maintain certain standards, including a 13 -month maturity limit and a 60 -day average maturity on investments, to help maintain a constant net asset value of one dollar ($1.00).
RULE G-37 OF THE MUNICIPAL SECURITIES RULEMAKING BOARD: Federal regulations to sever any connection between the making of political contributions and the awarding of municipal securities business.
SAFEKEEPING: Storage and protection of a customer's financial assets, valuables, or documents, provided by an institution serving as an Agent or Custodian and, where control is delegated by the customer.
SECURITIES & EXCHANGE COMMISSION (SEC): The federal agency responsible for supervising and regulating the securities industry.
SETTLEMENT DATE: The date when a trade is final, and the buyer must make payment to the seller while the seller delivers the assets to the buyer.
SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION (SIFMA): A not -for- profit trade association that represents securities brokerage firms, investment banking institutions, and other investment firms.
SINKING FUND: Money accumulated on a regular basis in a separate custodial account that is used to redeem debt securities or preferred stock issues.
STANDARD & POOR' S CORPORATION: (See Nationally Recognized Rating Services) STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF): A voluntary program created by statute began in 1977 as an investment alternative for California's local governments and special districts. This program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the State Treasurer's Office professional investment staff at no additional cost to the taxpayer.
STRUCTURED INVESTMENT VEHICLE (SIV): A pool of investment assets that attempts to profit from credit spreads between short-term debt and long-term structured finance products such as asset -backed securities (ABS). Funding for SIVs comes from the issuance of commercial paper that is continuously renewed or rolled over; the proceeds are then invested in longer maturity assets that have less liquidity but pay higher yields.
SUPRANATIONAL: An entity that is formed by two or more central governments with the purpose of promoting economic development for the member countries. Examples include the International Bank for Reconstruction and Development, International Finance Corporation, and the Inter -American Development Bank.
SURETY BOND: A promise to be liable for the debt, default, or failure of another. It is a three -party 52
City of Beaumont -Finance Department Policies and Procedures Manual 2025 contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee).
THIRD -PARTY CUSTODIAL AGREEMENT: (See Custodian)
TOTAL RETURN: The sum of all investment income plus changes in the capital value of the portfolio.
For mutual funds, return on an investment is composed of share price appreciation plus any realized dividends or capital gains. This is calculated by taking the following components during a certain time period:
Total Return $ = (Ending value — Beginning value) + Coupons and Dividends Received Total Return % = Total Return $/Beginning Value x 100
TRADE DATE: The date and time corresponding to an investor's commitment to buy or sell a security.
U.S. GOVERNMENT AGENCY SECURITIES: Debt securities issued by U.S. Government sponsored enterprises and federally related institutions. These government agencies include Federal Home Loan Banks (FHLB), Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac), Federal National Mortgage Association (FNMA or Fannie Mae), Federal Farm Credit Banks (FFCB), Resolution Trust Corporation (RTC), and Tennessee Valley Authority (TVA).
U.S. TREASURY SECURITIES: Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the U.S. and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.
Treasury Bills: Non -interest -bearing discount securities with maturities under one year issued by the U.S Treasury.
Treasury Notes: Interest -bearing obligations of the U.S. Treasury with maturities ranging from two to ten years from date of issue.
Treasury Bonds: Interest -bearing obligations issued by the U.S. Treasury with maturities that range from ten to thirty years from date of issue.
UNIFORM NET CAPITAL RULE: SEC Rule 15C3-1 outlining capital requirements for broker/dealers.
VARIABLE RATE NOTE: (See Floating Rate Note)
VOLATILITY: A degree of fluctuation in the price and valuation of securities.
WEIGHTED AVERAGE MATURITY (WAM): The average maturity of all the securities that comprise a portfolio. According to SEC rule 2a-7, the WAM for SEC registered money market mutual funds may not exceed 60 days and no one security may have a maturity that exceeds 397 days.
WHEN ISSUED (WI): A conditional transaction in which an authorized new security has not been issued.
All "when issued" transactions are settled when the actual security is issued.
YIELD: The annual rate of return on a debt investment computed as though held to maturity expressed as 53
City of Beaumont -Finance Department Policies and Procedures Manual 2025 a percentage.
YIELD TO CALL (YTC): The rate of return an investor earns from a bond assuming the bond is redeemed (called) prior to its nominal maturity date.
YIELD TO MATURITY (YTM): The rate of return earned on an investment considering all cash flows and timing factors: interest earnings, discounts, and premiums above par.
ZERO -COUPON BONDS/U.S. TREASURY STRIPS: A bond which represents ownership of a single coupon or principal payment due on a U.S. Treasury bond. Zeros or strips mature at face value at a specified date in the future and make no payments until that date. They always sell at a discount from face value. 54
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Capital Assets Policies
Objectives
The purpose of this policy is: (1) to describe the policies and procedures utilized in the City's capital asset management system, and (2) put guidelines in place to account for and depreciate the City's capital assets.
The primary goals of this policy are:
• To ensure that the City's capital assets are accounted for in conformance with the generally accepted accounting policies; and
• To establish a consistent and cost-effective way to account for the City's capital assets.
Overview
This Capital Asset Management policy is in accordance with generally accepted accounting principles and closely conforms to the capital asset accounting practices as recommended by the Government Finance Officers Association (GFOA). The Government Finance Officers Association recommends that every state and local government consider the following applicable guidelines in establishing capitalization thresholds for capital assets:
• Capital assets should be capitalized only if they have an estimated useful life of at least two years following the date of acquisition.
• Capitalization thresholds should be applied to individual assets rather than to group of similar items (e.g., desks, tables). However, for assets that qualify for capitalization and depreciation under the "group method", see Capitalization Section for the appropriate threshold application. • As a general rule, capitalization thresholds should be designed to encompass approximately 80% of a government's total non -infrastructure assets.
• In no case should a government establish a capitalization threshold of less than $5,000 for any individual item.
• Governments should exercise control over their non -capitalized capital assets by establishing and maintaining adequate internal control procedures at the department level.
Capital assets are recorded as expenditures in governmental funds at the time the assets are received, and the liability is incurred. These assets will be capitalized at cost in the government wide financial statements.
Per le 34:
• Capital Assets are defined as land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, infrastructure, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period.
• Infrastructure Assets are defined as long lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets.
Examples include roads, bridges, drainage systems, sewer systems and lighting systems. 55
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Responsibility
The City Manager is ultimately responsible for the City's implementation and compliance with these policies unless the City Council authorizes exceptions. Under the direction of the City Manager, the Finance Director will review, develop, and implement a system of processes and procedures to ensure compliance with these policies throughout the entire organization. The City Manager will work with the Finance Director to ensure these policies are updated on a timely basis.
Definitions
The City of Beaumont will apply the following definitions to its capital asset policies and procedures.
Buildings. Structures of a fixed or semi -fixed nature, which provide shelter and/or create interior space.
Buildings also include picnic shelters, storage sheds and restrooms.
Construction in Progress. Assets that are being built that are not usable at the end of the fiscal year, such as an incomplete building, waterline, sewer line, storm drain line, street, road, traffic signal, or other public improvement or infrastructure.
Capital Expenditure. A capital expenditure is an outlay for fixed assets, including land, building, machinery, equipment, construction in progress, design in progress, improvements and infrastructure with an original cost of $10,000or more. The capitalization threshold for land improvements shall be $25,000 whereas building improvements shall be $50,000.
Design in Progress. Capital improvement projects that are in planning or the design stage. The expenditure of these projects is capitalized at year-end if the design has exceeded$ 10,000.
Equipment. Moveable personal property with a useful life of more than one year and a value of $10,000or more. Such items as furniture, machines, tools, vehicles, and computers are included in this category.
Capital Asset. Tangible and intangible property owned by the City with a value of $10,000or more and a useful life of at least one year.
Improvements. Physical property of a fixed nature that is added (affixed) to land or buildings. These assets include ground improvements, sidewalks, driveways, landscaping, sprinklers, fences, parking lots, etc.
Building improvements include such items as carpeting, air conditioning systems or improvements through remodeling.
Infrastructure. Includes bridges, traffic signals, streets, roads, curbs, gutters, sidewalks, water lines, sewer lines and storm drain lines.
Intangibles. Items such as software (not replacement or upgrades).
Land. Includes the investment in real property or the ownership of ground space such as parcels, easements, and rights -of -way.
Streets and Roads. Includes all streets and roads that have pavement as well as curb, gutter and sidewalk.
Street Drainages. Includes storm drainage piping and manholes underneath streets and roads. 56
City of Beaumont -Finance Department Policies and Procedures Manual 2025 Traffic Signals. All traffic lighting systems that control traffic.
Vehicles. All vehicles and rolling stock equipment that are maintained by the Public Works Department or Community Services Department.
Capital Expenditure Definition and Capitalization Policy (Accounting and Financial Reporting)
Capital Expenditures for capital assets, including land, buildings, machinery, equipment, construction in progress, design in progress, improvements, and infrastructure with an original cost of $10,000or more and a useful life of at least two -years, will be subject to accounting and reporting (capitalization). All costs associated with the purchase or construction of the asset are part of the capitalization threshold including ancillary costs such as freight, transportation charges, site preparation expenditures, professional fees, warranties, taxes and legal claims directly attributable to the asset acquisition. Specific capitalization guidelines are described:
1. Capitalization Threshold. An exception to the $10,000 threshold is land and some infrastructure.
All costs associated with the purchase or acquisition of land parcels, rights -of -way, or easements, are capitalized, regardless of cost.
2. Fixed Asset Components. For the purpose of capitalization, the threshold will generally not apply to components of capital assets. For example, a keyboard, monitor and central processing unit purchased as components of a computer system will not be evaluated individually against the capitalization threshold. The entire computer system will be treated as a single capital asset provided the entire system meets the $10,000 threshold.
Individual assets that cost less than $10,000 but operate as part of a network system may be capitalized in the aggregate using the "group method" if the estimated average useful life of the individual asset is at least (3) years. A network, or group is determined to be where individual components may be below $10,000 but are independent, and the overriding value to the City is on the entire network and not the individual assets (e.g., computer systems and telephone systems). In this case, the entire network or group will be capitalized as one system with many components to the system.
3. Grants. Any asset required to be controlled and separately reported pursuant to grant conditions or any other externally imposed reporting requirement, will be capitalized, regardless of cost. For example, a grant program that has funded the acquisition of a capital asset may impose a requirement that the capital asset be tracked and identified as a grant -funded asset.
4. Dedications and Donations. When an asset is acquired through dedications, donations, developer funding, or in -lieu of fees, the asset will be recorded at its estimated fair market value at the date of acquisition, as determined by the appropriate City department using an appropriate method to determine value. If the donation is a combination of land, structure, equipment, etc., the fair values will be segregated as applicable.
5. Repairs and Maintenance. The following criteria are the basis for distinguishing costs as either 57
City of Beaumont -Finance Department Policies and Procedures Manual 2025 capital or repair and maintenance expense:
• With respect to improvements on non -infrastructure and infrastructure under the Basic Approach, costs should be capitalized if the useful life of the asset is substantially extended, or the cost results in a substantial increase in the capacity or efficiency of the assets. Otherwise, the cost should be expensed as repair and maintenance.
• With respect to improvements on infrastructure under the Modified Approach, costs should be capitalized if expenditures substantially increase the capacity or efficiency of an infrastructure.
Otherwise, costs, including those that preserve the useful life of an infrastructure asset, are expensed.
6. Improvements. Improvements to existing capital assets will be presumed (by definition) to extend the useful life of the related capital assets, and therefore, will be subject to capitalization only if the cost of the improvement meets the $10,000 threshold. Therefore, an improvement to a capital asset that had an original cost of less than$10,000, but now exceeds the threshold as a result of the improvement, should be combined as a single asset at the total cost (original cost plus the cost of the improvement) and capitalized.
7. Capital Projects. Capital projects will be capitalized as "design in progress" or "construction in progress" until completed. The costs associated with the capital project include direct costs, such as labor and materials, as well as indirect and ancillary costs. The City utilizes the Project Accounting module of the financial software to track and report project budgets, actual costs, encumbrances, revenue sources and status of projects.
Capitalization Valuations
The objective of capital asset accounting is to account for the City's historical acquisition cost, not present market or replacement values of City capital assets. Therefore, capital assets are valued at historical cost. In those instances where historical costs are not available, capital assets are valued at estimated historical cost.
Donated capital assets are valued at their estimated fair market value on the date donated. In valuating capital assets, the following guidelines are used.
1. Buildings. Costs include all expenditures in connection with their acquisition such as purchase price or construction cost, fixtures attached to the structure, architect's fees, engineering fees, and insurance during construction.
2. Construction in Progress. Assets are recorded in the same manner as assets acquired by purchase or construction contract. Costs that are capitalized are service charges, materials, and architects and engineering payments and retentions.
3. Design in Progress. Costs that are capitalized include service charges, materials and architects and engineering payments and retentions.
4. Equipment. Costs include all expenditures including the purchase price (before trade-in allowance) freight charges, taxes and installation costs.
5. Improvements. Costs include all expenditures in connection with their acquisition such as purchase price or construction costs, materials costs, installation costs, fixtures, architect's fees, engineering fees, freight charges, taxes and insurance during construction. 58
City of Beaumont -Finance Department Policies and Procedures Manual 2025
6. Infrastructure. Costs include all expenditures in connection with their construction including labor costs, material costs, installation costs, engineering fees, freight charges, sales taxes and insurance during construction.
7. Land. Costs include all expenditures in connection with land acquisition such as purchase price, appraisal fees, title policy fees, demolition, site clearance, etc.
8. Street Drainage. Costs include all expenditures in connection with their construction including materials costs, installation costs, engineering fees, freight charges, sales taxes and insurance during construction.
9. Streets and Roads. Costs include all expenditures in connection with their construction including material costs, installation costs, engineering fees and insurance during construction.
10. Traffic Signals. Costs include purchase price, freight charges, taxes and installation charges.
11. Vehicles. Costs include purchase price, sales tax, freight charges and installation costs.
Depreciation
1. Principles and Guidelines. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charge to depreciation expense each year represents that year's pro rata share of the cost of the capital -asset.
General Accounting Standards Board (GASB) Statement 34 requires that all capital assets with limited useful lives be depreciated over their estimated useful lives. Alternatively, the "modified approach" may be used for certain capital assets. Depreciation is not provided under this approach, but all expenditures for these assets are expensed, unless they are additions or improvements.
Except for streets and roads covered by the "modified approach," depreciation is booked on capital assets. Depreciation of all capital assets is charged as an expense against operations each year. The total amount of depreciation taken over the years, called accumulated depreciation, is reported on the balance sheet as a reduction in the book value of the capital assets.
Depreciation is used solely in Proprietary Fund Types. Depreciation is important in these funds because it is included as an operational expense of these funds. Unlike Governmental Fund Types, capital assets are reported in the balance sheet accounts of each Proprietary Fund. The use of these assets over a period of time is charged as a depreciation expense.
2. Depreciation Method. Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated.
3. Estimated Useful Life.
The City has established recommended useful lives for capital assets as follows:
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City of Beaumont -Finance Department Policies and Procedures Manual 2025
ASSET CLASS
USEFUL LIFE
Building and Improvements
10 — 30 years
Infrastructure
10 — 50 years
Street Drainage
40 — 50 years
Curb, Gutter and Sidewalk
40 years
Traffic Signals
20 years
Equipment and Machinery
3 - 20 years
Furniture and Fixtures
3 - 20 years
Vehicles
5 - 10 years
Inventory Control Policy
1. Inventory Control Criteria. Inventory control is applied only to movable assets and not to land, buildings or other immovable assets. Certain assets subject to inventory control will be accounted for and controlled through the same systems and procedures used to account and control capital assets subject to capitalization. Capital assets will be subject to inventory control if they meet at least one of the following criteria:
A. The capital asset has a useful life that exceeds two years.
B. The original cost of the capital asset is equal to or greater than$10,000.
C. Any asset less than $10,000 as requested from a department. This may include certain machinery and equipment that, due to their portability, character or value outside of the office are susceptible to loss, theft, misplacement or borrowing. It may also include any asset that has been requested by a department to be controlled in order to satisfy an internal (operational) or external federal or state regulatory requirement.
D. Any asset required to be controlled and separately reported pursuant to grant conditions or any other externally imposed reporting requirement. For example, a grant program that has funded the acquisition of a capital asset may impose a requirement that the capital asset be tracked and identified as a grant funded asset.
2. Annual Review and Certification. Each Department Head holds ultimate responsibility for safeguarding their capital assets against theft or loss. At the end of each fiscal year, the Finance Department will forward to each department a listing of their capital assets for review and certification.
It is the responsibility of the Department Head to verify and certify the accuracy of the information contained in that report. Any discrepancies must be reported to the Finance Department.
3. Fixed Asset Report. All departments involved in the construction or dedication of improvements or infrastructure assets must complete a capital asset report when filing a Notice of Completion or Acceptance. The report must be forwarded to the Finance Department for inclusion in the City's capital asset database and the City's engineers for inclusion on the City's Geographic Information Systems (GIS) database.
4. Transfers of Fixed Asset. Requests for transfers of capital assets will be in writing and submitted to the Finance Department and City Manager for approval. The Finance Department will be responsible for making the appropriate transfers on the City's computerized Capital Asset database and keeping a file of all transfers.
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City of Beaumont -Finance Department Policies and Procedures Manual 2025 Impairment
As part of the periodic inventory of capital assets, a measurement of physical condition will also be performed. The Government Accounting Standards Board (GASB) Statement No. 42 Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries will be applied. The City is required to evaluate prominent events or changes in circumstances affecting capital assets to determine whether impairment has occurred.
"Impairment" may include physical damage, enactment or approval of laws or regulations, changes in environmental factors, technical changes, or evidence of obsolescence, changes in the manner or duration of use of an asset, and construction stoppages.
A capital asset is impaired if both:
1. The decline in the ability to use an asset is large in magnitude (>$100,000).
2. The event is outside the normal life cycle of a capital asset.
In the case of theft, fire, flood, obsolescence, or other event regarding the usefulness of an asset, departments need to evaluate the usefulness or availability of that asset in the future. This may require outside assistance from an appraiser and/or the Finance Department to determine significance and applicability. Impairment must be conspicuous — e.g., known to the City that a material event has occurred.
To measure the amount of the impairment, the depaitment will need to work with the Finance Department to determine if the above factors exist. If so, the portion of the asset to be adjusted would depend on the usefulness after repair (if applicable.) Usefulness assessments will need to be known as soon as possible.
Other items will need to be known include:
1. What is the estimated cost to restore the asset to full utility?
2. What would be the current cost to replace the asset?
3. What is the salvage value, if any?
If there is impairment, these items will be used to measure impairment given the facts of the occurrence.
Once known, this information must be communicated to the Finance Director in writing so the asset value may be adjusted on the City's Asset Register.
Additionally, impairment losses should be reported in financial statements in accordance with the guidance provided by GASB. If not otherwise apparent from the face of the financial statements, the description, amount, and financial statement classification of impairment losses should be disclosed in the notes to the financial statements. If evidence is available to demonstrate that the impairment will be temporary, the capital asset should not be written down.
Impaired capital assets that are idle should be disclosed, regardless of whether the impairment is considered permanent or temporary.
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City of Beaumont -Finance Department Policies and Procedures Manual 2025 Disposal of Fixed Assets
Disposal Authority. No capital assets may be disposed of without the approval of the City Council or the City Manager and Finance Department. Disposal of all land and buildings and all other capital assets with a value of over $10,000 must have City Council approval. If it is determined that the capital assets sold as a unit have a value less than$10,000 , the property may be disposed of in a manner approved by the Department Head, Finance Department, and the City Manager. Capital assets will only be disposed of after checking with other City departments to see if they can use the property.
Disposal Value. It is the responsibility of each depar Intent to appraise capital assets designated as surplus prior to sale.
Disposal Methods. Capital Assets may be disposed of in the following ways:
1. Sealed bids after at least three public notices have been published in the newspaper.
2. Public auction after at least three notices have been published in the newspaper.
3. Traded in to reduce the purchase price of a new replacement for a capital asset.
4. Taken to a federal or state surplus property facility and sold through that facility.
5. Sold or donated to another government agency.
6. Recycled and disposed of as junk to a landfill or other appropriate waste removal facility.
7. Other method approved by the City Council or the City Manager where it is believed that the highest price can be obtained for the capital asset. The City Council or City Manager will determine the most appropriate method of disposing of capital assets.
Proceeds from Sales and Auctions. All proceeds from the sale of capital assets will be allocated to the City's General Fund unless the property was originally purchased with monies from a specific City Accounting Fund, in which case, the proceeds will be returned to that specific Accounting Fund, or to the Internal Service Fund which will be used to replace that asset.
SYSTEM DESIGN
The City utilizes Tyler Fixed Assets module software which is an internet based solution to tracking and managing the capital assets and related depreciation. Assets are added to the software as identified for capitalization. The software system has been established to include the following data:
• Date Placed in Service
• Fixed Asset ID number
• Description
• Asset Control Account
• Estimated Useful Life
• Serial Number (if applicable)
• Department
• Location
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City of Beaumont -Finance Department Policies and Procedures Manual 2025 • Total Cost
• Useful Life
• Current Depreciation Expense
• Accumulated Depreciation
• Disposition Date
• Method of Disposition
• Sale Price
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City of Beaumont -Finance Department Policies and Procedures Manual 2025 Capital Improvement Policies
Introduction
Capital improvement policies ensure that limited capital improvement funds are expended efficiently, effectively and provide the maximum public benefit. The Capital Improvement Plan (CIP) outlines a schedule of public service expenditures. The CIP does not address all of the capital expenditures for the City, but provides for large, physical improvements which are permanent, including the basic facilities, services and installations needed for the functioning of the community. These include utilities, municipal facilities and other miscellaneous projects. A capital improvement project is an investment of public and/or private funds of at least $25,000 and a useful life of more than two years.
Scope
The City's capital Improvement policies apply to all personnel, departments, divisions, and offices of the City government as well as all associated accounting funds under the direct authority of the City of Beaumont. These accounting funds include, but are not limited to, the General Fund, Special Revenue Funds, Enterprise Funds, Internal Service Funds, Debt Service Funds, Capital Projects Funds, Private -Purpose Trust Funds and Agency Trust Funds. These capital improvement policies are also applicable to the City's blended component units, including the Successor Agency to the Beaumont Redevelopment Agency, Beaumont Utility Authority, Beaumont Conservation Authority and Beaumont Public Financing Authority.
Responsibility
The City Manager is ultimately responsible for the City's implementation and compliance with these policies, unless the City Council authorizes exceptions. Under the direction of the City Manager, the Public Works Director and Finance Director will review, develop and implement a system of processes and procedures to ensure compliance with these policies throughout the entire organization. The City Manager will work with the Public Works Department and Finance Director to ensure these policies are updated on a timely basis.
New Construction
New residential, commercial and industrial developments must be approved by the City Engineer and be fully completed before acceptance by the City. The City requires surety bonds or stand 3y etters o' credit in a form approved by the City Attorney to guarantee the construction of off -site improvements in all new developments. The improvements that must be installed in each development are water lines, sewer lines, flood control facilities, underground electrical lines, underground telephone lines, underground natural gas lines, underground cable television lines, curbs, gutters, sidewalks and a finished street, with enough road base and asphalt depth to last at least 15 years. Construction standards to achieve this useful life have been determined and adopted by the City.
Capital Project Funding and Construction Categories
Beaumont capital projects may be divided into four categories. They are current -year funded projects, Five -Year Capital Improvements Plan (CIP) projects, planned, but unfunded projects, and unfunded future needs projects.
1. Category 1 Projects: Current -Year Funded Projects. This category includes projects that funding has been appropriated in the current fiscal year's capital budgets and legal contracts have been signed to commit these funds. The City Council has determined through the annual budgeting process that these projects are in the best interest of the public's health, safety, and welfare. These projects have been carefully planned to maximize the benefits derived through 64