AGENDA
ITEM
5 PART 1
City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 7 - Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
Finance Purchase Agreements (Continued)
The annual debt service requirements for the finance purchase agreements outstanding at June 30, 2023 are as follows:
Year Ending
June 30, Principal Interest Total
2024 $ 22,264 $ 3,225 $ 25,489
2025 23,907 1,581 25,488
2026 49,857 139 49,996
Total 96,028 4,945 100,973
The leased assets are included in capital assets and are summarized by major asset class below:
Machinery and equipment $ 173,422
Less: accumulated depreciation (86,711)
Total $ 86,711
C. Fiduciary Funds
Summary of changes in long-term liabilities for the fiduciary funds for the year ended June 30, 2023 is as follows:
Classification
Balance Debt Debt Balance Due in Due in more
July 1, 2022 Issued Retired June 30, 2023 One Year than One Year Fiduciary Funds:
Publicly Offered:
Tax Allocation Bonds - 2011 School District $ 1,810,000 $ (1,810,000) S :
Bond discount (92,012) 92,012
.... 5,290,000 1,495,000
2014 Tax Allocation Refunding Bonds 6,715,000 (1,425,000) 3,795,000 Bond premium 839,573 (119,941) 719,632 719,632
2020 Tax Allocation Refunding Bonds 10,745,000 (210,000) 10,535,000 215,000 10,320,000 Total Tax Allocation Bonds $ 20,017,561 S (3,472,929) $ 16,544,632 $ 1,710,000 $ 14,834,632 2011 Tax Allocation Bonds - School District
On May 19, 2011, the Calexico Community Redevelopment Agency (Agency) issued its Merged Central Business District and Residential Redevelopment Project Area Tax Allocation Bonds (School District), Issue of 2011 (the "2011 CUSD TABs") for the purpose of financing the construction of certain capital improvements (the "Facilities") of the Calexico Unified School District (the "CUSD"). The 2011 CUSD TABs were issued at the request of the CUSD. The 2011 CUSD TABs are secured by certain tax increment pass-through revenues (the "CUSD Pass- through Revenues") pursuant to Section 3 of the each of the following agreements (collectively, the "Antecedent Agreements"):
68 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 7 - Long-Term Debt (Continued)
C. Fiduciary Funds (Continued)
2011 Tax Allocation Bonds - School District (Continued)
1. First Amended and Restated Public Improvements Agreement dated March 16, 1993;
2. Memorandum of Understanding dated October 20, 1993; and
3. Public Improvements Agreement dated December 20, 1993.
Pursuant to the Antecedent Agreements, the purpose of the CUSD Pass-through Revenues was to finance certain capital projects benefitting the CUSD. To the extent that any of the CUSD Pass-through Revenues were not so used, such unused moneys were to be transferred to the CUSD. Additionally, the CUSD previously requested and authorized the former RDA to use a portion of the CUSD Pass-through Revenues as security for and payment of the debt service for certain prior bonds (the "Prior Bonds"), the proceeds of which were used to finance the construction of certain capital improvements benefiting the CUSD.
The net proceeds from the 2011 CUSD TABs were intended to be used to construct the Facilities benefiting the CUSD and the CUSD Pass-through revenues were committed as security for and payment of the debt service for 2011 CUSD TABs. However, the State Department of Finance did not approve the Agency's Required Obligation Payment Schedule (ROPS) request to authorize disbursement of the net bond proceeds to CUSD and the net proceeds were not used for Facilities construction. On October 22, 2022, the Agency and CUSD entered into a settlement agreement calling for the bonds to be retired. On February 1, 2023, the 2011 CUSD TABS were redeemed and retired in full.
2014 Tax Allocation Refunding Bonds
On August 1, 2014, the Agency issued the 2014 Tax Allocation Refunding Bonds in the amount of $15,395,000.
The Bonds were issued to refinance previously issued bonds: (i) $16,120,000 original principal amount of Merged Central Business District and Residential Redevelopment Project Area Tax Allocation Refunding Bonds Issue of 2003A, outstanding principal refunded in the amount of $11,335,000; and (ii) $8,600,000 original principal amount of Merged Central Business District and Residential Redevelopment Project Area Tax Allocation Bonds, Issue of 2003C, outstanding principal refunded in the amount of $6,040,000.
The issue consists of serial bonds in the amount $15,395,000 payable annually on August 1 of each year, ommencing on August 1, 2015 and maturing in 2028 with interest rates ranging from 2.00% to 5.00% per annun interest payments are due on August 1 and February 1 of each year until the bonds are paid off. At June 30, 2023 the outstanding balance of the bonds was $5,290,000. Total principal and interest remaining on the bond is $5,896,750 payable through 2029.
The annual debt service requirements for the 2014 Tax Allocation Refunding Bonds at June 30, 2023, are as follows:
Year Ending
June 30, Principal Interest Total
2024 $ 1,495,000 $ 227,125 $ 1,722,125
2025 1,570,000 150,500 1,720,500
2026 520,000 98,250 618,250
2027 540,000 71,750 611,750
2028 565,000 44,125 609,125
2029 600,000 15,000 615,000
Total $ 5,290,000 $ 606,750 $ 5,896,750
69 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 7 - Long-Term Debt (Continued)
C. Fiduciary Funds (Continued)
2020 Tax Allocation Refunding Bonds
n January 2020 the Successor Agency issued $11,085,000 of Subordinate Tax Allocation Refunding Bonds. Th onds are special obligations of the Successor Agency payable from and secured by a pledge ot the successo Agency's tax revenues. Proceeds from the bonds, along with funds on hand, were used to refinance the Agency's outstanding bonds from series previously issued in 2000 ($515,000), 2006 ($9,465,000), and 2011 ($7,120,000) The issue consists of serial bonds maturing from 2021 to 2034 in annual installments of $130,000 to $1,680,000.
The bonds carry interest rates ranging from 1.9% to 3.2% and mature in 2034.
The annual debt service requirements for the 2020 Tax Allocation Refunding Bonds at June 30, 2023, are as follows:
Year Ending
June 30, Principal Interest Total
2024 215,000 $ 302,298 $ 517,298
2025 220,000 297,384 517,384
2026 1,420,000 277,210 1,697,210
2027 1,480,000 239,964 1,719,964
2028 1,525,000 198,836 1,723,836
2029-2033 5,400,000 347,099 5,747,099
2034 275,000 4,527 279,527
Total $ 10,535,000 $ 1,667,318 $ 12,202,318
Pledged Revenues
The Successor Agency has pledged tax revenues to the repayment of the former Calexico Redevelopment Agency's debts transferred to it on February 1, 2012 through the final maturity of the Bonds, or early retirement of the Bonds, whichever comes first.
Tax revenues consist of property tax revenues allocated to the Redevelopment Property Tax Trust Fund (RPTTF) for the Successor Agency that is maintained by the County of Imperial Auditor and Controller. The amounts so allocated are those that would have been allocated to the RDA had the RDA not been dissolved. The Auditor and Controller (A&C) then distributes RPTTF revenues to the Successor Agency based on Recognized Obligation Payment Schedules (ROPS) as approved by the California State Department of Finance (DOF) and after deducting amounts for A&C administrative costs and amounts required to be paid under tax-sharing agreements unless the payment of such amounts has been subordinated to payment of debt services on the Bonds. Each ROPS covers a twelve-month period and includes the applicable debt service payments on the Bonds.
Property tax revenue allocated to the RPTTF for the Successor Agency totaled $7,796,838 in fiscal year 2023. Total debt service of all Tax Allocation Bonds paid was $2,365,557, 30% of the RPTTF revenue available for distribution to the Successor Agency.
70 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 7 - Long-Term Debt (Continued)
D. Conduit Debt
Community Facilities District No. 2005-1 - Special Assessment Tax Bonds On September 1, 2005, the City issued special assessment tax bonds under the State Improvement Acts of 1911 and 1915 through the Community Facilities District No. 2005-1 (Hearthstone) of the City of Calexico ("District"), which was established by the City pursuant to a bond indenture dated July 1, 2006. The bonds were issued to finance certain public facilities and capital impact fees relating to a residential development within the District, fund an escrow account, fund a reserve account for the bonds, fund 18 months of capitalized interest on the bonds, and pay the cost of issuance of the bonds. These bonds are payable only from special assessment collections from the property owners. The City is not liable for repayment in any manner.
The City is only acting as an agent for the property owners and bondholders in collecting and applying the special assessments toward bond debt service. The bonds are, therefore, not reported as a liability in the accompanying basic financial statements. The special assessment tax bonds totaling $12,450,000 at June 30, 2023 were held by the District.
The development phases within the District have not been completed and sufficient District levies have not been collected to fully fund the District's debt service requirements. As of June 30, 2023, the scheduled principal payments due September 1, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 have not been paid. The bond reserve account held by the trustee was $7,933, which is less than the required balance of $1,016,560. City administrators, community facilities district consultants, the City Attorney, new property owners, and trustee attorneys are currently working on a financial plan to auction undeveloped property to provide a final solution to this issue.
Community Facilities District No. 2013-1 - Special Tax Bonds On February 1, 2014, the City issued special assessment tax bonds under the State Improvement Acts of 1911 and 1915 through the Communities Facilities District No. 2013-1 (Gran Plaza) of the City of Calexico ("District"), which was established by the City pursuant to a bond indenture dated February 1, 2014. Proceeds of the Bonds were used to (i) finance certain public facilities relating to an outlet shopping center within the District; (ii) fund a debt service reserve account; (iii) fund capitalized interest; and (iv) pay costs of issuance of the Bonds. These bonds are payable from special assessment collections from the property owner and from certain payments contributed to the District by the City pursuant to an agreement between the City and Property owner dated July 2, 2013. The City acts as an agent for the property owners and bondholders in collecting special assessments from the property owner and its wn contributions on behalf of the property owner. The District applies such collections toward bond debt service The bonds are not reported as a liability of the City in the accompanying basic financial statements. The special Note 8 - Compensated Absences
1. Governmental Activities
The City's liability for vested and unpaid compensated absences (accrued vacation and sick pay) in the governmental activities has been accrued and amounts to $1,698,987 at June 30, 2023.
Classification
Balance Balance Due Within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Compensated absences $ 1,711,673 $ (12,686) $ 1,698,987 $ 207,818 $ 1,491,169 71 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 8 - Compensated Absences (Continued)
B. Business-Type Activities
In printy fund, the habit for eted and uned compensated ales daced ation and it ey is amount to $401,965 at June 30, 2023.
Classification
Balance Balance Due Within Due in More
July 1,2022 Additions Deletions June 30, 2023 One Year Than One Year Compensated absences 341,276 60,689 401,965 21,819 380,146 Note 9 - Risk Management
A. Summary
Changes in the claims liability amounts were as follows:
Workers' Compensation
Current Year
Beginning of Claims and Balance at
Fiscal Year Changes in Claim Fiscal Year
Liability Estimates Payments End
2020-2021 $ 1,939,000 $ 565,046 $ (432,046) $ 2,072,000 2021-2022 2,072,000 869,805 (585,805) 2,356,000
2022-2023 2,356,000 731,949 (708,949) 2,379,000
General Liability
Current Year
Beginning of Claims and Balance at
Fiscal Year Changes in Claim Fiscal Year
Liability Estimates Payments End
2020-2021 $ 757,568 $ 830,828 $ (29,332) $ 1,559,064
2021-2022 1,559,064 (536,071) (5,193) 1,017,800
2022-2023 1,017,800 795,592 38,368 1,851,760
B. Public Risk Innovation, Solutions, and Management - Excess Insurance Authority The City is a member of Public Risk Innovation, Solutions, and Management - Excess Insurance Authority (PRISM) The Authority is comprised of 55 California counties and currently consists of 262 public agencies, which includes municipalities, school districts, special districts and other Joint Powers Authorities (JPA). PRISM was formed as a Joint Powers Authority in 1979, pursuant to the California Government Code. The purpose of the Authority is to arrange, provide and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage.
72 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 9 - Risk Management (Continued)
C. Public Risk Innovation, Solutions, and Management - Excess Insurance Authority (Continued) The Board of Directors is comprised of 62 members, one representative from each member county and seven members elected by the public entity membership.
General Liability Insurance
Annual deposits are paid by member cities and are adjusted retroactively to cover costs. Each member city has a specific self-insured retention ("SIR") level. The City has a SIR level of $100,000 and pays 100% of all losses incurred under $100,000. The City does not share or pay for losses of other cities under $100,000. Losses of $100,000 to $5,000,000 are prorated among all participating cities on a payroll basis. Losses in excess of $5,000,000 are covered by excess insurance purchased by the participating cities, as a part of the pool, to a limit of $10,000,000.
This cost is also prorated on a payroll basis. The City purchased an optional excess coverage, which covers up to $20,000,000, and catastrophic coverage up to $50,000,000.
Workers' Compensation
The City has a SIR of $125,000 per claim and additional coverage above its SIR with PRISM to $5 million per claim; there is an additional $45 million of reinsurance above PRISM coverage bringing the total coverage to over $50 million per claim. The PRISM is ranked as the second largest public entity risk pool and the largest property and casualty pool in the nation.
During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage in the prior year.
The latest financial information of the Public Risk Innovation, Solutions, and Management - Excess Insurance Authority for fiscal year ended June 30, 2023, is as follows:
Total assets $1,184,851,570
Total deferred outflows $ 4,727,766
Total liabilities $ 921,522,389
Total deferred inflows $ 4,229,528
Total equities $ 263,827,419
Total revenues $1,610,800,387
Total expenses $1,491,011,440
Revenues over expenses $ 119,788,947
73 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 10 - Pension Plans
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred Outflows of Resources:
Pension contribution made after measurement date:
CaPERS Miscellaneous $ 1,046,787 $ 642,849 1,689,636
CaPERS Safety 2,089,521 2,089,521
Total pension contribution made after measurement date 3,136,308 642,849 3,779,157 Change in assumption:
CaPERS Miscellaneous 1,049,718 644,648 1,694,366
CaPERS Safety 1,909,830 1,909,830
Total change in assumption 2,959,548 644,648 3,604,196
Projected earnings on pension plan investments in excess of actual earnings:
CaPERS Miscellaneous 1,876,441 1,152,350 3,028,791
CalPERS Safety 2,991,054 2,991,054
Total projected earnings on pension plan investments in excess of actual earnings 4,867,495 1,152,350 6,019,845
Adjustment due to difference in proportions:
CalPERS Safety 1,013,012 1,013,012
Total adjustment due to difference in proportions 1,013,012 1,013,012 Difference between expected and actual experience:
CaPERS Miscellancous 67,938 41,722 109,660
CalPERS Safety 578,216 - 578,216
Total difference between expected and actual experience 646,154 41,722 687,876 Total deferred outflows of resources:
CalPERS Miscellaneous 4,040,884 2,481,569 6,522,453
CalPERS Safety 8,581,633 8,581,633
Total deferred outflows of resources 12,622,517 $ 2,481,569 $ 15,104,086 Net Pension Liabilities:
CalPERS Miscellaneous $ 10,244,060 $ 6,291,039 $ 16,535,099 CaPERS Safety 18,941,036 18,941,036
Total net pension liabilities $ 29,185,096 $ 6,291,039 $ 35,476,135 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 10 - Pension Plans (Continued)
A. Summary (Continued)
Governmental Business-Type
Activities Activities Total
Deferred Inflows of Resources:
Adjustment due to difference in proportions:
CaPERS Miscellaneous $ 18,047 $ 11,081 $ 29,128
CaPERS Safety
Total adjustment due to difference in proportions 18,047 11,081 29,128 Employer contributions in excess of proportionate share of contribution:
CalPERS Miscellaneous 619,096 380,197 999,293
CaPERS Safety 1,374,311 1,374,311
Total employer contributions in excess of proportionate share of contribution 1,993,407 380,197 2,373,604
Total deferred inflows of resources:
CaPERS Miscellaneous 637,143 391,278 1,028,421
CalPERS Safety 1,374,311 1,374,311
Total deferred inflows of resources $ 2,011,454 $ 391,278 $ 2,402,732 Pension Expense:
CaPERS Miscellaneous $ 443,348 $ 271,729 $ 715,077
CaPERS Safety 445,116 445,116
Total net pension expense $ 888,464 $ 271,729 $ 1,160,193 B. General Information about Pension Plans
Plan Description
The City contributes to the California Public Employees' Retirement System ("CalPERS"), a cost-sharing multiple- employer defined benefit pension plan. CaPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CaPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of the CalPERS annual financial report may be obtained from their executive office located at 400 P Street, Sacramento, California 95814.
Employees Covered by Benefit Terms
At June 30, 2022, the measurement date, the following employees were covered by the benefit terms:
Miscellaneous Safety Safety
Miscellaneous PEPRA Safety PEPRA Police PEPRA Fire
Active employees 57 47 33 10
Transferred and terminated employees 101 21 80
Retired employees and beneficiaries 132 90
Total 290 68 203 20 8
75 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 10 - Pension Plans (Continued)
B. General Information about Pension Plans (Continued)
Benefits Provided
CaPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CaPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least five years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay.
Following are the benefit provisions for each plan:
Miscellaneous Safety Safety
Miscellaneous PEPRA Safety PEPRA Police PEPRA Fire
Benefit formula 2.7% @55 2.0% @62 3.0% @50 2.7% @57 2.7% @57 Benefit vesting schedule Sycars service Sycars service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthiy for life monthly for life monthly for life Retirement age 55 62 50 50-57 50-57
Monthly benefits, as a % of
eligible compensation 2.7% 2.0% 3.0% 2.7% 2.7%
Required employer contribution rate 7.959% 7.114% 18.152% 13.044% 13.044% Contributions
For the year ended June 30, 2023, the contributions recognized as part of pension expense for each plan were as follows:
Miscellaneous $ 715,077
Safety 445,116
$ 1,160,193
Change in Assumptions
The discount rate lowered from 7.15% in 2022 to 6.90% in 2023. In the prior year, the actuarial report did not have any changes in assumptions.
76 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 10 - Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan's proportionate share of the risk pool collective net pension liability over the measurement period:
Plan Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Miscellaneous
Balance at: 6/30/21 (valuation date) $ 57,464,091 $ 49,348,516 $ 8,115,575 Balance at: 6/30/22 (measurement date) 60,184,125 43,649,026 16,535,099 Net changes during 2021-2022 2,720,034 (5,699,490) 8,419,524 Safety
Balance at: 6/30/21 (valuation date) $ 59,791,046 $ 49,540,092 $ 10,250,954 Balance at: 6/30/22 (measurement date) 63,830,960 44,889,924 18,941,036 Net changes during 2021-2022 4,039,914 (4,650,168) 8,690,082 Total
Balance at: 6/30/21 (valuation date) $ 117,255,137 $ 98,888,608 18,366,529 Balance at: 6/30/22 (mcasurement date) 124,015,085 88,538,950 35,476,135 Net changes during 2021-2022 6,759,948 (10,349,658) 17,109,606 The City's net pension liability/(asset) for each Plan is measured as the proportionate share of the net pension liability/(asset). The net pension liability/(asset) of each of the Plans is measured as of June 30, 2021, and the total pension liability/(asset) for each Plan used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City's proportion of the net pension liability/(asset) was based on a projection of the City's long-term share of contribution o the pension plans relative to the projected contributions of all participating employers, actuarially determined The City's proportionate share of the net pension liability/(asset) for each plan as of June 30, 2021 and 2022 was as Miscellaneous Safety Total
Proportion - June 30, 2021 0.15006% 0.18954% 0.26351%
Proportion - June 30, 2022 0.14315% 0.16398% 0.30713%
Change - increase/(decrease) -0.00691% -0.02556% 0.04362% 77 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 10 - Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the year ended June 30, 2023, the City recognized pension expense of $715,077 and $445,116, for the Miscellaneous and Safety plans, respectively. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Miscellaneous Plans
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to measurement date $ 1,689,636 $ Difference between projected and actual earning on
pension plan investments 3,028,791
20,128
Adjustment due to differences in proportions
Changes in assumptions 1,694,366
Difference between actual and expected experience 109,660 :
Difference between employer's actual contributions
and proportionate share of contributions 999,293
Total $ 6,522,453 $ 1,028,421
Safety Plans
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to measurement date $ 2,089,521 $ Difference between projected and actual earning on
pension plan investments 2,991,054
Adjustment due to differences in proportions 1,013,012
Changes in assumptions 1,909,830
578,216 :
Difference between actual and expected experience
Difference between employer's actual contributions
and proportionate share of contributions 1,374,311
Total $ 8,581,633 $ 1,374,311
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to measurement date $ 3,779,157 $ - Difference between projected and actual earning on
pension plan investments 6,019,845
Adjustment due to differences in proportions 1,013,012 29,128 Changes in assumptions 3,604,196
Difference between actual and expected experience 687,876 :
Difference between employer's actual contributions
and proportionate share of contributions 2,373,604
Total 15,104,086 $ 2,402,732
78 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 10 - Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the Miscellaneous Plan and Safety Plan, $1,689,636 and $2,089,521, respectively, was reported as deferred outflows of resources related to pensions resulting from City's contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the measurement period ended June 30, 2023.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Miscellaneous Safety
Year Ended June 30, Plans Plans Total
2024 $ 782,203 $ 1,450,541 $ 2,232,744
2025 735,449 1,179,496 1,914,945
2026 434,232 663,183 1,097,415
2027 1,852,512 1,824,581 3,677,093
2028 -
: :
Thereafter
$ 3,804,396 $ 5,117,801 $ 8,922,197
Actuarial Assumptions
The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:
Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:
Discount rate 6.90%
Inflation 2.30%
Payroll growth 2.75%
Salary increases Varies by Entry Age and Service
Investment rate of return 7.00%
Mortality rate table Derived using CalPERS' Membership Data for all Funds. The mortality table used was developed based on CalPERS' specific data.
The table includes 20 years of mortality improvements using Society of Actuaries Scale MP-2020.
Post retirement benefit increase Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter.
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2022 valuation were based on the results of December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experiences Study can be found on the CalPERS website.
79 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 10 - Pension Plans (Continued)
C. Pension Liabilities, , Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate
assuming that both members and employers will make their required contributions on time and as scheduled in all calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculatec The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.
Assumed Asset
Asset Class Allocation Real Return 12
Global equity - cap-weighted 30.00% 4.54%
Global equity - non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
The discount rate used to measure the total pension liability was 6.90% for the plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CaPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate.
Based on the testing, none of the tested plans run out of assets. Thereforc, the current 6.90% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained from the CalPERS website under the GASB 68 Section.
80 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 10 - Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net position liability for the Plan, calculated using th liscount rate for each Plan, as well as what the City's proportionate share of the net pension liability would be if i were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current Plan's Net Pension Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellancous 24,739,280 $ 16,535,099 $ 9,785,093
Safety $ 27,755,992 $ 18,941,036 $ 11,736,801
Total $ 52,495,272 $ 35,476,135 $ 21,521,894
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.
D. Payable to the Pension Plan
At June 30, 2023, the City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2023.
Note 11 - Other Postemployment Benefits
A. Summary
Governmental Business-Type
Activities Activities Total
NetOPER liability:
Net OPEB liability $ 17,435,294 6,174,001 $ 23,609,295
Net OPE liability $ 17,435,294 $ 6,174,001 $ 23,609,295 Deferred inflows of resources:
Difference between expected and actual experience $ 2,469,091 $ 874,201 $ 3,343,292 Changes in assumptions 3,736,441 1,322,918 5,059,359
Net difference between projected and
actual earnings in OPEB plan investments 665 236 901
Total deferred inflows of resources $ 6,206,197 $ 2,197,355 $ 8,403,552 81 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11 - Other Postemployment Benefits (Continued)
B. General Information about OPEB
Plan Description
As of June 30, 2023, the date of its most recent OPEB actuarial valuation, the City provided health benefits to 40 retirees. In addition, 78 active employees are earning service credit for future retiree health benefits. With the exception of members of the Calexico Police Officers Association, employees hired on or after July 1, 2008 are not eligible for retiree health benefits. Employees hired prior to May 18, 1993 retiring from the City under CalPERS are eligible for City-paid retiree medical and dental benefits for themselves and eligible dependents. The retiree is responsible for a monthly contribution equal to $120. Employees hired on or after May 18, 1993 are eligible for City paid retiree medical benefits for themselves only to the retiree's attainment of age 65.
Eligibility
Eligibility requires retirement from the City under PERS with at least 20 years of service. Retirees with less than 30 years of service at retirement are required to pay a monthly contribution. The retiree may also elect to cover and pay for eligible dependents based on the COBRA rate.
Membership in the plan consisted of the following at June 30, 2022, the date of the latest actuarial valuation:
Retirees 40
Active plan members 78
Total 118
Contributions
The obligation of the City to contribute to the Plan is established and may be amended by the City Council. For the 2022-23 fiscal year, measurement period, Payments made outside of the trust were $1,141,249. Employees are currently not required to contribute to the plan. The City's funding policy is to amortize the unfunded net OPEB liability over a 30 year period as a level percentage of payroll.
In fiscal year 2023, the City elected to begin prefunding its OPEB obligation through the use of an irrevocable trust established with the California Employers' Retiree Benefit Trust Fund (CERBT). This trust fund is an agent multiple- employer plan which is administered by the CalPERS Board of Administration. The trust is used to accumulate and invest funds necessary to pay for future retiree benefits and to reduce the City's future cash flow requirements. At June 30, 2023, measurement date, the balance in this trust account was $713,314.
CERBT is a tax qualified irrevocable trust, organized under Internal Revenue Code (IRC) Section 115, established to prefund retirement health benefits. The CERBT issues a publicly available financial report that included financial statements and required supplementary information for the City, not individualizing, but in aggregate with the other CERBT participants. That report may be obtained by contacting CaPERS.
C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2023. The net OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2022. The net OPEB liability at June 30, 2023 was $23,609,295.
82 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11 - Other Postemployment Benefits (Continued)
C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) Actuarial Assumptions
The net OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Valuation Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost
Asset Valuation Method Market Value
Inflation 2.50%
Payroll Growth 2.75%
Salary Increases Varies by Entry Age and Service
Contribution Policy Contributes full ADC
Discount Rate 4.27%
Mortality, Retirement, Disability, Termination CaPERS 1997-2015 Experience Study Mortality Improvement Mortality projected fully generational with Scale MP-2019 Medical Trend Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of
3.75% in 2076
Medicare - 5.65% or 4.60% for 2023, decreasing to an ultimate rate of
3.75% in 2076
The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial experience study for the period July 1, 2022 through June 30, 2023. The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
Change in Assumption
The City's discount rate used to measure the net OPEB liability increased from 4.09% to 4.27% for the measurement period ended June 30, 2022. The final equivalent single discount rate used for this year's valuation is 4.27% with the assumption that the District will eventually pay the pay-go costs out of the OPEB trust when the Trust is expecte to be able to pay all future projected benefit payments.
Discount Rate
The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Target Long-Term Expected
Asset Class Allocation Rate of Return
Cilobal Equity 49.00% N/A
Fixed Income 23.00% N/A
TIPS 5.00% N/A
Commodities 3.00% N/A
REITs 20.00% N/A
100.00%
Long-term assumed rate of inflation 2.50%
Long-term expected rate of return 5.00%
83 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11 - Other Postemployment Benefits (Continued)
C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) Change in the Net OPEB Liability
Total OPEB Fiduciary Net OPEB
Liability Net Position Liability
Balance at June 30, 2022 23,973,201 $ 23,973,201
Changes Recognized for the Measurement Period:
Service Cost 164,532 464,532
Interest on the total OPEB liability 976,399 : 976,399
Difference between expected and actual experience 537,612 537,612 Changes of assumptions (487,886) (487,886)
Contributions from the employer - 1,853,249 (1,853,249) Net investment income 1,316 (1,316)
Administrative expenses (2)
Benefit payments (1,141,249) (1,141,249)
Net Changes during July 1, 2022 to June 30, 2023 349,408 713,314 (363,906) Balance at June 30, 2023 (measurement date) $ 24322,609 $ 713,314 $ 23,609,295 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.27%) or 1-percentage- point higher (5.27%) than the current discount rate:
Plan's Net OPEB Liability
Discount Rate - 1% Current Discount Discount Rate + 1%
(3.27%) Rate (4.27%) (5.27%)
$ 26,510,549 23,609,295 $ 21,139,119
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:
Plan's Net OPEB Liability
Healthcare Cost
-1% Trend Rates + 1%
$ 20,582,073 23,609,295 $ 27,256,124
City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11 - Other Postemployment Benefits (Continued)
C. Net OPEB Liability, OPER Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $474,871. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following Deferred outflows of resources and deferred inflows of resources Deferred outflows Deferred inflows
of Resources of Resources
Difference between expected and actual experience $ 3,343,292 Changes of assumptions : 5,059,359
Net difference between projected and
actual earnings in OPE plan investments 901
Total $ $ 8,403,552
As of June 30, 2023, the Plan's policy is to amortize the difference between projected OPEB plan investment earnings and actual earnings is amortized over a five-year period. The remaining gains and losses are amortized over the expected average remaining service life. The expected average remaining service life is 5 years, which was determined as of June 30, 2022, the beginning of the measurement period, for employces covered by the OPEB plan benefit terms as of the valuation date.
Amount reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as future OPEB expense as follows:
Measurement Period Deferred Outflows/
Ended June 30 (Inflows) of Resources
2024 (1,757,856)
2025 (1,757,856)
2026 (1,757,859)
2027 (795,559)
2028 (2,341,524)
Thereafter 7,102
$ (8,403,552)
Note 12 - Commitments and Contingencies
A. Litigation
The City is a defendant in certain legal actions arising in the normal course of operations. Liabilities for the probable amounts of loss associated with these claims are have been accrued in the financial statements as discussed in Note 9 - Risk Management.
City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 12 - Commitments and Contingencies (Continued)
B. Grants
The City participates in certain federal and state assisted grant programs. These programs are subject to program ompliance audits by the grantors and their representatives. With respect to the City's other grant programs, an iability for reimbursement which may arise as the result of grantor audits, if any, is not believed to be material.
C. Construction
Various construction projects were in progress at June 30, 2023 with an estimated cost to complete of $89,119,338 planned for in all fund types.
D. CFD 2013-1
The City has committed to make annual payments to the Community Facility District 2013-1 (District) on behalf of the District's property owner through an Agreement Re: Covenants ("Agreement") executed in July 2013. The District was formed in 2013 to finance improvements supporting the development of the Gran Plaza shopping center and related City development impact fees.
In the Agreement, the City agreed to pay a portion of sales tax revenues earned from the Gran Plaza shopping center to the CFD on behalf of the property owner. Annual City payments are calculated in the following four step process:
1. The City retains the first $300,000 of sales tax carned at Gran Plaza each operating (calendar) year.
2. Sales tax in excess of $300,000 is paid to the District up to the District's annual debt service.
3. Sales tax in excess of $300,000 and in excess of the District's annual debt service is retained by the City, up to an amount matching the City's payment to the District for its annual debt service.
4. Sales tax in excess of amounts applied in Steps 1 to 3 is divided in half, with half retained by the City and half paid to the District for the refunding of outstand District bonds.
During the year ended June 30, 2023, the City paid $225,402 to the District under the terms of this Agreement.
Note 13 - Deferred Compensation Plan
The City offers a deferred compensation plan for regular employees created in accordance with Internal Revenue Code Section 457. Under the terms of this plan, employees may defer amounts of income up to a maximum of $17,000 per year or one-hundred percent (100%) of includable compensation, whichever is less. Amounts so deferred may be withdrawn or directed for future payment at separation of employment but may not be paid to the employee during employment with the City except for a catastrophic circumstance creating an undue and unforeseen financial hardship for the employee.
Federal legislation, (Small Business Job Protection Act of 1996) requires the Section 457 plan assets to be placed in trust for the exclusive use of the plan participants and their beneficiaries. The City's deferred compensation administrator qualifies as the plan trustee to meet Federal requirements. Since the plan assets are not considered the property and rights of the City, such assets are not reflected in the accompanying basic financial statements. 86 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 14 - Self-Funded Medical, Dental and Vision Plan
The City provides its employees, eligible retirees and elected officials with an option to participate in a self-funded employer sponsored health plan. In this plan the City takes on the financial risk of funding the plan from its assets and is responsible for managing and administering the plan.
The City administers the plan through a third-party administrator (TPA) and purchases excess insurance coverage to protect itself from extreme claims and utilization levels. This excess insurance is called employer stop-loss (ESL) coverage. In addition to covering the potential losses inherent with any group bencfit plan, the City's ESL coverage provides protection for the entire covered group, reimbursement for medical expenses above a specified dollar amount of $75,000, and coverage for catastrophic and high dollar claims such as transplants, leukemia, renal failure and premature births.
The City provides a network of Exclusive Provider Organization (EPO) participants and a Preferred Provider Organization (PPO) network for eligible retirees and Police Officers Association (POA) members.
Note 15 - Other Required Disclosures
A. Deficit Fund Balances/Net Position
At June 30, 2023, the Governmental Activities Statement of Net Position had an unrestricted net position deficit of $21,842,491.
At June 30, 2023, the following funds had a fund balances (deficit) or net position (deficit), which will be eliminated through the collection of grants revenues, future RPTTF tax allocations, and future development fees:
Fund Fund Type Deficit
DIF - Fire Fund Special Revenue Fund $ 63,430
Successor Agency to the Calexico Community Private Purpose Trust Fund Redevelopment Agency 10,712,247
B. Expenditures Exceeding Appropriations
For the year ended June 30, 2023, expenditures exceeded appropriations in the following functions of the General Fund:
Function Excess Expenditures
156,389
87 City of Calexico
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 16 - Fund Balance Classification
The City classifies fund balances, as shown on the Balance Sheet - Governmental Funds as of June 30, 2023 as follows:
Major Funds
LTA Measure D FEMA/ARPA Other
General Special Revenue Special Revenue Governmental
Fund Fund Funds Total
Non-spendable:
Inventories and prepaid items $ 68,715 $ $ 68,715
Total non-spendable 68,715 - 68,715
Restricted:
Debt service payments 998,170 998,170
Public works : 6,469,732 6,469,732
Culture and recreation 81,928 81,928
Housing 6,938,376 6,938,376
Capital projects 12484,975 26,561,079
6,912,447 7,163,657
Total restricted 12,484,975 6,912,447 21,651,863 41,049,285 Assigned:
Measure H 228,569 228,569
Capital projects : 1,192,429 1,192,429
Total assigned 228,569 1,192,429 1,420,998
Unassigned (deficit) 3,223,861 (63,430) 3,160,431
Total unassigned 3,223,861 (63,430) '3,160,431
Total fund balances $ 3,521,145 $ 12,484,975 $ 6,912,447 $ 22,780,862 $45,699,429 Note 17 - Net Investment in Capital Assets
Net Investment in Capital Assets at June 30 consisted of the following:
Governmental Business-Type
Activities Activities
Net investment in capital assets:
Capital assets, nondepreciable $ 10,760,921 $ 10,891,758 Capital assets, depreciable, net 68,579,839 39,886,090
Unspent bond proceeds 36,859,054
:
Deferred loss on refunding 72,069
Long-term debt:
Measure H Lease Revenue Bonds (6,138,976)
Finance Purchase Agreement (757,273) (96,028)
Water Revenue Bonds (16,519,615)
Wastewater Revenue Bonds (23,101,295)
Total net investment in capital assets $ 72,444,511 47,992,033 88 REQUIRED SUPPLEMENTARY INFORMATION
(Unaudited).
89 This page intentionally left blank.
06 City of Calexico
Required Supplementary Information (Unaudited)
Notes to the Budgetary Information
For the Year Ended June 30, 2023
Note 1 - Budgetary Information
The City Council has the responsibility for adoption of the City's budget. From the effective date of the budget, the amounts stated as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by motion during each fiscal year. The City Manager is authorized to transfer budget appropriations within the General Fund at the department level or at the fund level for other funds. Budget amendments to a total General Fund department budget, non-General Fund budget, or a capital project require City Council approval.
All appropriations lapse at the end of the fiscal year to the extent that they have not been expended. Lease contracts entered into by the City are subject to annual review by the City Council; hence, they legally are one-year contracts with an option to review for another fiscal year.
91 City of Calexico
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2023
Budgeted Amounts
General Fund Measure H Fund Original Actual Variance with Original Original Total Final Amounts Final Budget
REVENUES:
Property taxes $ 2,972,790 $ - $ 2,972,790 $ 3,112,590 $ 3,125,032 $ 12,442 Other taxes:
Other taxes 6,343,760 - 6,343,760 6,308,560 6,442,911 134,351 Measure H sales tax 3,600,000 3,600,000 3,600,000 3,587,998 (12,002) Total other taxes 6,343,760 3,600,000 9,943,760 2,908,560 10,030,909 122,349 Licenses, permits and fees 1,914,202 1,914,202 2,174,002 1,941,657 (232,345) Intergovernmental 3,698,100 3,698,100 3,793,100 3,790,861 (2,239) Charges for services 1,982,050 1,982,050 1,829,050 2,063,045 233,995 Fines and forfeitures 215,000 215,000 220,000 221,308 1,308 Investment income (loss) 519,913 519,913 524,913 564,981 40,068 Other revenues 20,527 20,527
Total revenues 17,645,815 3,600,000 21,245,815 21,562,215 21,758,320 196,105 EXPENDITURES:
Current:
General government 2,967,214 - 2,967,214 3,218,735 3,160,021 58,714 Public safety:
Police 5,876,558 850,000 6,726,558 6,713,202 6,633,909 79,293 Fire 5,711,999 400,000 6,111,999 6,111,999 6,268,388 (156,389) Total public safety 11,588,557 1,250,000 12,838,557 12,825,201 12,902,297 (77,096) Public works 1,251,638 1,251,638 1,026,638 1,018,893 7,745 Culture and recreation 1,194,209 100,000 1,294,209 1,149,209 1,127,772 21,437 Planning and building 1,103,640 1,103,640 844,640 843,029 1,611 Housing 149,900 149,900 149,900 133,380 16,520
Contribution to CFD 2013-1 250,000 250,000 225,402 225,402 Debt service:
Principal 235,874 235,874 235,874 235,874
Interest and fiscal charges 4,782 4,782 4,782 4,782
Total expenditures 18,745,814. 1,350,000 20,095,814 19,680,381 19,651,450 28,931
REVENUES OVER
(UNDER) EXPENDITURES (1,099,999) 2,250,000 1,150,001 1,881,834 2,106,870 225,036 OTHER FINANCING SOURCES (USES):
Transfers in 1,100,000 (1,100,000) -
Transfers out (998,000) (998,000) (1,525,000) (1,522,250) 2,750 Total other financing sources (uses) 1,100,000 (2,098,000) (998,000) (1,525,000) (1,522,250) 2,750 Net changes in fund balance $ 152,000 $ 152,001 356,834 584,620 $ 227,786 FUND BALANCE:
Beginning of year 2936,525
End of year ≤ 3,521,145
92 City of Calexico
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule - LTA Measure D Special Revenue Fund For the Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental $ 1,219,292 $ 1,219,292 $ 1,847,350 $ 628,058 Investment income (loss) 216,173 216,173
Total revenues 1,219,292 1,219,292 2,063,523 844,231
EXPENDITURES:
Current:
Public works 150,000 150,000 150,000
10.52.326
Capital outlay 8,420,340 10,617,965 65,639
Total expenditures 8,570,340 10,767,965 215,639 10,552,326 Net changes in fund balance $ (7,351,048) (9,548,673) 1,847,884 $ 11,396,557 FUND BALANCE:
Beginning of year 10,637,091
End of year 12,484,975
93 City of Calexico
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule - FEMA/ARPA Special Revenue Fund For the Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 8,296,487 8,296,487 4,763,493 (3,532,994) Total revenues 8,296,487 8,296,487 4,763,493 (3,532,994) EXPENDITURES:
Current:
Public safety -
108.,55 108,565 41,206 67,359
Culture and recreation
Planning and building 200,000 200,000 37,308 162,692
Capital outlay 8,118,922 8,118,922 980,048 7,138,874
Total expenditures 8,427,487 8,427,487 1,058,562 7,368,925 Net changes in fund balance $ (131,000) $ (131,000) 3,704,931 $ 3,835,931 FUND BALANCE:
Beginning of year 3,207,516
End of year $ 6,912,447
04 City of Calexico
Required Supplementary Information (Unaudited) (Continued) Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios Last Ten Years
For the Year Ended June 30, 2023
Miscellaneous Plan
Measurement period, year ended 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017
0.1431511% 0.1500581% 0.1282135% 0.1248795% 0.1205049% 0.1152051% Plan's proportion of the net pension liability
Plan's proportionate share of
the net pension liability $ 16,535,099 $ 8,115,575 $ 13,950,179 $ 12,796,448 $11,612,169 $ 11,772,982 Plan's covered-employee payroll $ 6,163,719 $ 5,984,193 $ 5,434,448 $ 5,438,921 $ 5,280,506 $ 5,126,704 Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 268.26% 135.62% 256.70% 235.28% 219.91% 229.64% Plan's fiduciary net position $ 43,649,026 $ 49,348,516 $ 41,257,766 $ 40,604,002 $ 39,627,144 $ 38,307,558 Plan's fiduciary net position as a percentage
of the total pension liability 72.53% 85.88% 74.73% 76.04% 77.34% 76.49% Plan's proportionate share of aggregate
employer contributions $ 1,494,398 $ 1,313,856 $ 1,133,328 895,434 687,419 $ 467,363 The Miscellaneous Plans transitioned from an Agent plan to Cost-Sharing plan at Measurement Date (6/30/2016), therefore only years since transition are shown. 95 City of Calexico
Required Supplementary Information (Unaudited) (Continued) Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) Last Ten Years
For the Year Ended June 30, 2023
Safety Plan
Measurement period, year ended 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6630/2015 Plan's proportion of the net pension liability 0.163980% 0.189542% 0.149893% 0.146625% 0.144796% 0.144796% 0.151039% un's proportionate share $ 18,941,036 $ 10,250,954 $ 16,309,009 $14,859,140 $ 14,129,130 $ 14,359,822 $ 12,862,930 $ 10,367,155 e net pension liabil
Plan's covered-employee payroil $ 4,885,896 $ 4,743,588 $ 3,298,148 $ 4,302,084 $ 4,176,782 $ 4,055,128 $ 3,937,017 $ 4,423,592 387.67% 216.10% 494.49% 345.39% 338.28% 354.12% 326.72% 234.36% Plan's fiduciary net position S 44,889,924 $49,540,092 $41,647,330 $ 40,888,911 $ 39,609,126 $37,100,280 $ 34,521,294 $ 36,372,416 Pot eir e potions a parcage. 70.33% 82.86% 71.86% 73.35% 73.71% 72.10% 72.85% 77.82% Plan's proportionate share of aggregate
$ 1,860,024 $ 1.750,135 $ 1,517,998 $ 1,249,931 $ 1,523,035 $ 1,466,631 $ 1,385,061 $ 1,275,182 employer contributions
' Information only presented from the implementation y car 96 City of Calexico
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Years
For the Year Ended June 30, 2023
Miscellaneous Plan
Total Pension Liability 6/30/2015' 6/30/2014'
Service cost 667,325 $ 693,757
Interest on total pension liability 3,135,933 2,997,774 Differences between expected and actual experience (259,080) Changes in assumptions (840,438)
Changes in benefit terms
Benefit payments, including refunds of employee contributions (1,654,333) (1,458,707) Net change in total pension liability 1,049,407 2,232,824 Total pension liability - beginning 42,585,621 40,352,797 Total pension liability - ending (a) 43,635,028 $ 42,585,621 Plan fiduciary net position
Contributions - employer 389,771 $ 344,145
Contributions - employee 375,172 396,410
Investment income (net of administrative expenses) 807,277 5,423,642 Benefit payments (1,654,333) (1,458,707)
Other (40,762)
Net change in plan fiduciary net position (12,875) 4,705,490 Plan fiduciary net position - beginning 36,319,001 31,613,511 Plan fiduciary net position - ending (b) $ 36,196,126 $ 36,319,001 Net pension liability - ending (a)-(b) $ 7,438,902 $ 6,266,620 Plan fiduciary net position as a percentage of the
total pension liability 82.95% 77.52%
Covered-employee payroll $ 5,315,723 $ 5,851,522
Net pension liability as a percentage of covered-
employee payroll 139.94% 107.09%
Notes to Schedule:
' - The Miscellaneous Plans transitioned from an Agent plan to Cost-Sharing plan at Measurement Date (6/30/2016), therefore only two years are shown.
97 City of Calexico
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions - Pension
Last Ten Years
For the Year Ended June 30, 2023
Miscellaneous Plan
Fiscal Year: 2022-23 2021-22 2020-21 2019-20 2018-19
Contractually determined
contribution (actuarially determined) $ 1,689,636 $ 1,494,398 $ 1,313,856 $ 1,133,328 $ 895,434 Contributions in relation to the
actuarially determined contributions (1,689,636) (1,494,398) (1,313,856) (1,133,328) (895,434) Contribution deficiency (excess) $ - $ - $ - $
Covered payroll $ 6,348,630 $ 6,163,719 $ 5,984,193 5,434,448 $ 5,438,921 Contributions as a percentage of
covered payroll 26.61% 21.96% 21.96% 20.85% 16.46%
Fiscal Ycar: 2017-18 2016-17 2015-16 2014-15 2013-141
Contractually determined
contribution (actuarially determined) 687,419 $ 467,363 438,015 $ 389,770 $ 344,145 Contributions in relation to the
actuarially determined contributions (687,419) (467,363) (438,015) (389,770) (344,145) Contribution deficiency (excess) $ $ $ $ $
Covered payroll $ 5,280,506 $ 5,126,704 $ 4,977,383 $ 5,315,723 5,851,522 Contributions as a percentage of
covered payroll 13.02% 9.12% 8.80% 7.33% 5.88%
Notes to Schedule
Methods and assumptions used to determine contribution rates:
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023 were derived from the June 30, 2020 funding valuation report.
Actuarial cost method Entry Age Normal
Amortization method/period For details, sce June 30, 2020 Funding Valuation Report Asset valuation method Actuarial Value of Assets. For details, sce June 30, 2020 Funding Valuation Report.
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll growth 2.750%
Investment rate of return 7.00% net of pension plan investment and administrative expenses.
The probabilities of retirement are based on the 2017 CaPERS Experience Study for the period from 1997 and Retirement age 2015.
The probabilities of mortality are based on the 2017 CaPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement Mortality using 90% of Scale MP-2016 published by the Society of Actuaries. ' Information only presented from the
98 City of Calexico
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions - Pension (Continued)
Last Ten Years
For the Year Ended June 30, 2023
Safety Plan
Fiscal Year: 2022-23 2021-22 2020-21 2019-20 2018-19
Contractually determined
contribution (actuarially determined) $ 2,089,52l 1,860,024 $ 1,750,135 $ 1,517,998 1,249,931 Contributions in relation to the
actuarially determined contributions (2,089,521) (1,860,024) (1,750,135) (1,517,998) (1,249,931) Contribution deficiency (excess) $ $ $ $
Covered payroll $ 5,032,473 $ 4,885,896 $ 4,743,588 $ 3,298,148 4,302,084 Contributions as a percentage of
covered payroll 41.52% 39.21% 36.89% 46.03% 29.05%
Fiscal Year: 2017-18 2016-17 2015-16 2014-15 2013-141
Contractually determined
contribution (actuarially determined) $ 1,523,035 1,466,631 $ 1,385,061 1,275,182 1,305,223 Contributions in relation to the
actuarially determined contributions (1,523,035) (1,466,631) (1,385,061) (1,275,182) (1,305,223) Contribution deficiency (excess) - $ $ $
Covered payroll 4,176,781 $ 4,055,128 $ 3,937,017 $ 4,423,592 4,864,763 Contributions as a percentage of
covered payroll 36.46% 36.17% 35.18% 28.83% 26.83%
Notes to Schedule
Methods and assumptions used to determine contribution rates:
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023 were derived from the June 30, 2020 funding valuation report.
Actuarial cost method Entry Age Normal
Amortization method/period For details, see June 30, 2020 Funding Valuation Report Asset valuation method Actuarial Value of Assets. For details, see June 30, 2020 Funding Valuation Report.
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll growth 2.750%
Investment rate of return 7.00% net of pension plan investment and administrative expenses.
The probabilities of retirement are based on the 2017 CaPERS Experience Study for the period from 1997 and Retirement age 2015.
The probabilities of mortality are based on the 2017 CaPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement Mortality using 90% of Scale MP-2016 published by the Society of Actuaries. ' Information only presented from the
99 City of Calexico
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Years
For the Year Ended June 30, 2023
Measurement period, year ending 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018' Total OPE liability
Service cost 464,532 1,117,996 744,778 590,159 517,429 515,161 Interest 976,399 876,705 751,908 1,072,411 1,102,423 1,060,772 Changes of benefit terms
Differences between expected and actual experience 537,612 (10,079,367) 8,428,759 (9,512,833) Changes of assumptions (487,886) (6,361,053) 2,394,594 2,776,757 1,696,768 (472,245) Benefit payments, including refunds of member contributions (1,141,249) (985,181) (871,030) (852,037) (832,731) (781,907) Net change in total OPE lability 349,408 (15,430,900) 11,449,009 (5,925,543) 2,483,889 321,781 Total OPEB liability - beginning 23,973,201 39,404,101 27,955,092 33,880,635 31,396,746 31,074,965 Total OPEB Hability - ending (a) 24,322,609 23,973,201 39,404,101 27,955,092 33,880,635 31,396,746 OPE fiduciary net position
Contributions - employer 985,181 871,030 852,037 832,731 781,907 Net investment income 1,316
Benefit payments, including refunds of member contributions (1,141,249) (985,181) (871,030) (852,037) (832,731) (781,907) Administrative expense (2)
Net change in plan fiduciary net position 713,314
Plan fiduciary net position - beginning • 1.
Plan fiduciary net position - ending (b 713,314
Plan net OPEB liability-ending (4) - (b) 23,609,295 $ 23,973,201 39,404,101 27,955,092 33,880,635 31,396,746 Plan fiduciary net position as a
percentage of the total OPER liability 2.93% 0.00% 0.00% 0.00% 0.00% 0.00% = 33273
Covered-employee payroll 5,756, 155 6,400,439 $ 6,229,138 6,062,421 5,900,167 426.75% 416.48% 615.65% 308.14% 347.81% 532.13%
' Information only presented from the implementation year 100
City of Calexico
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions - OPEB
Last Ten Years
For the Year Ended June 30, 2023
Fiscal Year: 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 Contractually determined
contribution (actuarially determined) $ 1,853,249 $ 985,181 $ 871,030 $ 852,037 $ 832,731 $ 781,907 Contributions in relation to the
actuarially determined contributions
Contribution deficiency (excess)
Covered-employee payroll
Contributions as a percentage of
covered-employee payroll 33.50% 17.12% 13.61% 13.68% 13.74% 13.25% ' Information only presented from the implementation year of 2018 Notes to Schedule
Methods and assumptions used to determine contribution rates:
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023 are as follows:
Actuarial cost method Entry Age Normal, Level% of pay
Amortization method/period Level % of pay / 30-year fixed period for 2022/23 Asset valuation method Investment gains and losses spread over 5-year rolling period Discount rate 5.50%
Inflation 2.50%
Salary increases Varies by entry age and service
Medical trend Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Mortality CaPERS 2000-2019 Experience Study
Mortality improvement Mortality projected fully generational with Scale MP-2021 101
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102
SUPPLEMENTARY INFORMATION
103
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104
NON-MAJOR GOVERNMENTAL FUNDS
105
City of Calexico
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Special Revenue
Library Community Cannabis Operating
Donations Public Places Permits
ASSETS
Cash and investments 10,732 74,509 $ 179,357 47,628 30,516 486,595 Cash and investments with fiscal agents -
Receivables:
Accounts - 135
: 86,172
Intergovernmental
Deposits -
Total assets $ 10,732 74,509 179,357 47,628 30,651 572,767
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 3,313 $ $ - $ - $ 1,058 $ 27,709 Accrued payroll - 2,595
Due to other funds
Deposits payable 47,628 :
Unearned revenue 29,593
Total liabilities 3,313 47,628 30,651 30,304
Fund Balances:
Restricted 7,419 74,509 179,357 542,463
Assigned -
Unassigned (deficit)
Total fund balances 7,419 74,509 179,357 542,463
Total liabilities
and fund balances $ 10,732 74,509 179,357 $ 47,628 30,651 $ 572,767 =
(Continued)
106
City of Calexico
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2023
Special Revenue
Road Prop 172 State
Maintenance LTF Public Safety COPS Operation
Rehabilitation Article 3 TDA Sales Tax Grant Stonegarden ASSETS
Cash and investments $ 2,926,166 $ 340,697 $ 142,612 $ $ Cash and investments with fiscal agents
Receivables:
Accounts - - -
Intergovernmental 151,438 - 579,005 213,739 13,283
Deposits
Total assets $ 3,077,604 $ 340,697 142,612 $ 579,005 213,739 13,283
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 46,095 $ - $ 1,046 $ - $ - $ - Accrued payroll -
Due to other funds 579,005 188,739 13,283
Deposits payable -
Unearned revenue - -
Total liabilities 46,095 1,046 579,005 188,739 13,283
Fund Balances:
Restricted 3,031,509 340,697 141,566 25,000
:
Assigned -
Unassigned (deficit) -
Total fund balances 3,031,509 340,697 141,566 25,000
Total liabilities
and fund balances $ 3,077,604 340,697 142,612 $ 579,005 $ 213,739 $ 13,283 (Continued)
107
City of Calexico
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2023
Special Revenue
National Bravo-Victoria General
Asset Opioid Eastside Village Plan Solid
HIDTA Forfeiture Settlement Assessment Update Waste
ASSETS
Cash and investments $ 7,328 34,921 $ 1,415,477 8,596 991,865 Cash and investments with fiscal agents - - -
Receivables:
Accounts - -
: 5,713 :
Intergovernmental 4,307
Deposits -
Total assets $ • 1307 ] 1378 ] 2091 ] 11.90 ] 3806 3 та 991,865
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ 38 - $ 1,810 $ - $ 179,719 Accrued payroll
Due to other funds 4,307 -
Deposits payable -
:
Unearned revenue 34,742 58,085
Total liabilities 4,307 38 34,742 1,810 237,804
Fund Balances:
Restricted 7,290 179 1,419,380 8,596 754,061
Assigned
Unassigned (deficit) -
Total fund balances 7,290 179 1,419,380 8,596 754,061
Total liabilities
and fund balances $ 4,307 7,328 34,921 $ 1,421,190 8,596 $ 991,865 (Continued)
108
City of Calexico
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2023
Special Revenue
Business Local
Improvement HOME Grant CalHOME CDBG Housing
Programs
ASSETS
Cash and investments 19,634 868,019 $ 3,224,410 91,443 $ 2,701,992 $ 203,977 Cash and investments with fiscal agents - - -
Receivables:
Accounts 800 - 2,055 5,552
: - -
Intergovernmental -
Deposits - - -
Total assets 1 190 з 8899 3 320А0 ] 91413 ] 2200 3 2035,0 209,529
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ 34,844 S $ - $ 125,028 $ Accrued payroll - -
Due to other funds : -
Deposits payable
Unearned revenue
Total liabilities 125,028
Fund Balances:
Restricted 19,634 833,975 3,224,410 91,443 2,579,019 209,529 Assigned
Unassigned (deficit)
Total fund balances 19,634 833,975 3,224,410 91,443 2,579,019 209,529 Total liabilities
and fund balances 19,634 868,819 $ 3,224,410 91,443 $ 2,704,047 209,529 (Continued)
109
City of Calexico
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2023
Debt Service Capital Projects
Capital Grants
Measure H Measure H General Capital Capital Projects DIF - Parks/ Debt Service Capital Projects Projects Fund DIF - Libraries Recreation ASSETS
Cash and investments $ 116 $ - $ 1,397,679 $ - $ 199,519 $ 590,327 Cash and investments with fiscal agents 998,054 277,704 - Receivables:
Accounts - -
:
Intergovernmental - 771,506
Deposits - 137,900
Total assets $ 998,170 $ 1,675,383 909,406 199,519 590,327
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities - $ - S 1,964 $ 1,368 $ Accrued payroll -
Due to other funds 907,442
Deposits payable -
Uncarned revenue
Total liabilities 909,406 1,368
Fund Balances:
Restricted 998,170 482,954 - 198,151 590,327
:
Assigned 1,192,429 -
Unassigned (deficit)
Total fund balances 998,170 1,675,383 198,151 590,327
Total liabilities
and fund balances $ 998,170 $ $ 1,675,383 909,406 199,519 $ 590,327 =
(Continued)
110
City of Calexico
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2023
Capital Projects
DIF - General Cole Roa
DIF - Parking Government DIF - Traffic DIF - Police DIF - Fire mprovemen ASSETS
Cash and investments 267,242 339,515 $ 1,964,529 319,696 $ 1,588,242 Cash and investments with fiscal agents - - -
Receivables:
Accounts
:
Intergovernmental -
Deposits
Total assets $ 267,242 339,515 $ 1,964,529 319,696 $ 1,588,242
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ $ $ $ $
Accrued payroll -
Due to other funds 63,430
Deposits payable
Uncarned revenue
Total liabilities 63,430
Fund Balances:
Restricted 267,242 339,515 1,964,529 319,696 - 1,588,242 Assigned
Unassigned (deficit) (63,430)
Total fund balances 267,242 339,515 1,964,529 319,696 (63,430) 1,588,242 Total liabilities
and fund balances $ 267,242 339,515 $ 1,964,529 $ 319,696 $ 1,588,242 (Continued)
111
City of Calexico
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2023
Capital Projects Total
Non-Major
Northwest Area Fast Area New River Governmental
Development Facilities Plan Grants Funds
ASSETS
Cash and investments $ 468,570 $ 944,431 53,310 $ 21,939,650 Cash and investments with fiscal agents - - 1,275,758
Receivables:
Accounts - 8,542
Intergovernmental 1,018,644 2,843,807
Deposits 137,900
Total assets $ 468,570 944,431 $ 1,071,954 $ 26,205,657
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - s $ 273,403 $ 697,395 Accrued payroll - 2,595
: 798,551 2,554,757
Due to other funds
Deposits payable - - 47,628
Unearned revenue - 122,420
Total liabilities 1,071,954 3,424,795
Fund Balances:
Restricted 468,570 944,431 - 21,651,863
Assigned - 1,192,429
Unassigned (deficit) - (63,430)
Total fund balances 468,570 944,431 - 22,780,862
Total liabilities
and fund balances $ 468,570 $ 944,431 $1,071,954 $ 26,205,657 (Concluded)
112
City of Calexico
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2023
Special Revenue
Other
Library Communit Art in Cannabis Operating
Donation Public Places Permits
REVENUES:
Intergovernmental 62,889 $ $ - $ 32,170 $ 1,040,896
Charges for services 56,031
Investment income (loss) : 935 1,183
-
Other revenues = 9,118
Total revenues 62,889 9,118 56,966 32,170 1,042,079
EXPENDITURES:
Current:
General government 5,006 - -
Public safety - - -
Public works - 764,321
Culture and recreation 55,470 2,829 2,394 - 32,172
Housing -
: 321 -
Capital outlay -
Debt service:
Principal
: :
Interest and fiscal charges -
Total expenditures 55,470 7,835 2,715 32,172 764,321
REVENUES OVER
(UNDER) EXPENDITURES 7,419 1,283 54,251 (2) 277,758
OTHER FINANCING SOURCES (USES):
Transfers in - - -
Transfers out -
Total other financing sources (uses)
-
Net change in fund balances 7,419 1,283 54,251 (2) 277,758 FUND BALANCES (DEFICIT):
Beginning of year 73,226 125,106 264,705
End of year $ 7,419 74,509 $ 179,357 $ - $ $ 542,463
(Continued)
113
City of Calexico
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2023
Special Revenue
Road Prop 172 State
Maintenance LTF Public Safety COPS Operation
Rehabilitation Article 3 TDA Sales Tax Grant Stonegarden REVENUES:
Intergovernmental $ 864,223 $ - S 579,006 $ 100,000 $ 21,038 Charges for services -
Investment income (loss) 14,972 1,712
Other revenues 5,816
Total revenues 879,195 7,528 773 579,006 100,000 12000 21,038 EXPENDITURES:
Current:
General government - -
Public safety - - 314,006 75,000 21,038
Public works 20,026 -
Culture and recreation
Housing
Capital outlay 56,760 9,275
Debt service:
Principal : -
Interest and fiscal charges -
Total expenditures 488,496 29,301 314,006 75,000 21,038
REVENUES OVER
(UNDER) EXPENDITURES 390,699 7,528 (28,528) 265,000 25,000 OTHER FINANCING SOURCES (USES):
Transfers in - -
Transfers out
Total other financing sources (uses)
Net change in fund balances 390,699 7,528 (28,528) 265,000 25,000 FUND BALANCES (DEFICIT):
Beginning of year 2,640,810 333,169 170,094 (265,000)
End of year $ 3,031,509 $ 340,697 $ 141,566 $ 25,000 $
(Continued)
114
City of Calexico
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2023
Special Revenue
National Bravo-Victoria General
Asset Opioid Eastside Village
HIDTA Forfeiture Settlement Assessment Update
REVENUES:
Intergovernmental 4,307 $ 7,290 $ - S - $
Charges for services - 532,756 - 2,657,579
Investment income (loss) 179 7,281 44 2,309
Other revenues
Total revenues 7,290 179 540,037 44 2,659,888
EXPENDITURES:
Current:
General government - - -
Public safety 4,307
Public works 46,811 2,381,926
Culture and recreation
Housing -
Capital outlay - 14,784 -
Debt service:
Principal - -
Interest and fiscal charges -
Total expenditures 4,307 61,595 2,381,926
REVENUES OVER
(UNDER) EXPENDITURES 7,290 179 478,442 44 277,962
OTHER FINANCING SOURCES (USES):
Transfers in -
Transfers out
Total other financing sources (uses)
Net change in fund balances - 7,290 179 478,442 277,962 FUND BALANCES (DEFICIT):
Beginning of year 940,938 8,552 476,099
End of year $ 7,290 $ $ 1,419,380 8,596 754,061
(Continued)
115
City of Calexico
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2023
Special Revenue
Business Local
Improvement HOME Grant Successor CalHOME Housing
District Housing Programs
REVENUES:
Intergovernmental $ $ 74,382 $ - $ - $ 170,817 $ -
Charges for services - 4,000
Investment income (loss) : 122,036 470 73,203
Other revenues
Total revenues 74,382 122,036 470 170,817 77,203
EXPENDITURES:
Current:
General government -
:
Public safety
Public works - - -
Culture and recreation -
Housing - 5,920 1,257 924 6,214 1,109
Capital outlay - - -
Debt service:
Principal - - - -
Interest and fiscal charges -
Total expenditures 5,920 1,257 924 6,214 1,109
REVENUES OVER
(UNDER) EXPENDITURES 68,462 120,779 (454) 164,603 76,094 OTHER FINANCING SOURCES (USES):
Transfers in - - 87,000
Transfers out (87,000)
Total other financing sources (uses) - (87,000) 87,000
Net change in fund balances - 68,462 33,779 (454) 164,603 163,094 FUND BALANCES (DEFICIT):
Beginning of year 19,634 765,513 3,190,631 91,897 2,414,416 46,435 End of year $ 19,634 833,975 $ 3,224,410 91,443 $ 2,579,019 209,529 (Continued)
116
City of Calexico
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2023
Debt Service Capital Projects
Capital Grants
Measure H Measure HI General Capital Capital Projects DIF - Parks/ Debt Service Capital Projects Projects Fund DIF - Librarics Recreation REVENUES:
Intergovernmental - $ - $ - S 950,917 $ - $ -
Charges for services - - 83,655 171,070
Investment income (loss) 53 5 5,701 1.. 1,026 3,037
Other revenues 73
Total revenues 53 78 5,701 950,917 84,681 174,107
EXPENDITURES:
Current:
General government 1,251 - 1,012
Public safety
250,000 :
Public works
Culture and recreation -
Housing -
Capital outlay 956,880 949,905 22,161
Debt service:
Principal 685,000 -
Interest and fiscal charges 309,000
Total expenditures 995,251 1,206,880 950,917 22,161
REVENUES OVER
(UNDER) EXPENDITURES (995,198) 78 (1,201,179) 62,520 174,107 OTHER FINANCING SOURCES (USES):
Transfers in 995,328 527,000 -
Transfers out (78) -
Total other financing sources (uses) 995,328 (78) 527,000 - Net change in fund balances 130 - (674,179) - 62,520 174,107 FUND BALANCES (DEFICIT):
Beginning of year 998,040 2,349,562 135,631 416,220
End of year $ 998,170 $ 1,675,383 $ $ 198,151 $ 590,327 (Continued)
117
City of Calexico
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2023
Capital Projects
DIF - General Cole Road
DIF - Parking Government DIF - Traffic DIF - Police DIF - Fire Improvements REVENUES:
Intergovernmental $ $ - - - $ $ -
Charges for services - 62,747 129,527 59,331 61,753
Investment income (loss) 1,374 1,746 10,104 1,644 (327) 8,169 Other revenues
Total revenues 1,374 64,493 139,631 60,975 61,426 8,169 EXPENDITURES:
Current:
General government
Public safety
Public works
Culture and recreation -
Housing -
Capital outlay -
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES 1,374 64,493 139,631 60,975 61,426 8,169 OTHER FINANCING SOURCES (USES):
Transfers in
: : :
Transfers out
Total other financing sources (uses)
Net change in fund balances 1,374 64,493 139,631 60,975 61,426 8,169 FUND BALANCES (DEFICIT):
Beginning of year 265,868 275,022 1,824,898 258,721 (124,856) 1,580,073 End of year $ 267,242 $ 339,515 $ 1,964,529 $ 319,696 (63,430) $ 1,588,242 (Continued)
118
City of Calexico
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2023
Capital Projects Total
Non-Major
Northwest Area East Area New River Governmental
Development Facilities Plan Grants Funds
REVENUES:
Intergovernmental $ $ 5,035,674
: $ 1.27.739
Charges for services 3,818,449
Investment income (loss) 2,411 4,858 264,898
Other revenues 15,007
Total revenues 2,411 4,858 1,127,739 9,134,028
EXPENDITURES:
Current:
General government 7,269
Public safety 414,351
Public works - - 3,894,820
Culture and recreation - 92,865
Housing 15,424
Capital outlay - - 1,127,739 3,137,825
Debt service:
Principal - 685,000
Interest and fiscal charges - 309,000
Total expenditures 1,127,739 8,556,554
REVENUES OVER
(UNDER) EXPENDITURES 2,411 4,858 577,474
OTHER FINANCING SOURCES (USES):
Transfers in - - - 1,609,328
Transfers out (87,078)
Total other financing sources (uses) 1,522,250
Net change in fund balances 2,411 4,858 - 2,099,724
FUND BALANCES (DEFICIT):
Beginning of year 466,159 939,573 20,681,138
End of year $ 468,570 $ 944,431 $ $ 22,780,862
(Concluded)
119
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120
INTERNAL SERVICE FUNDS
121
City of Calexico
Statement of Net Position
All Internal Service Funds
June 30, 2023
Employee Medical Workers'
Payroll Benefits Retirees Compensation
ASSETS
Current assets:
Cash and investments $ 634,453 $ 548,035 $ 527,265
Due from other funds :
2,000,000
Deposits : 125,000
Inventories and prepaid items 4,939
Total current assets 634,453 548,035 2,657,204
Total assets 634,453 548,035 2,657,204
LIABILITIES
Current liabilities:
Accounts payable 69,374 92,718 158,142
Claims payable - due within one year 768,000
Total current liabilities 69,374 92,718 926,142
Noncurrent liabilities:
Claims payable - due in more than one year 1,611,000
Total noncurrent liabilities 1,611,000
Total liabilities 69,374 92,718 2,537,142.
NET POSITION
Unrestricted 565,079 455,317 120,062
Total net position $ $ 565,079 $ 455,317 $ 120,062
(Continued)
122
City of Calexico
Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2023
General Unemployment
Liability Insurance Total
ASSETS
Current assets:
Cash and investments $ 1,416,138 $ 7,314 $ 3,133,205
Due from other funds 564,758 2,564,758
Deposits 50,000 175,000
Inventories and prepaid items 3,023 7,962
Total current assets 2,033,919 7,314 5,880,925
Total assets 2,033,919 7,314 5,880,925
LIABILITIES
Current liabilities:
Accounts payable 93,220 1,753 415,207
Claims payable - due within one year 1,459,760 2,227,760 Total current liabilities 1,552,980 1,753 2,642,967
Noncurrent liabilities:
Claims payable - due in more than one year 392,000 2,003,000 :
Total noncurrent liabilities 392,000 2,003,000
Total liabilities 1,944,980 1,753 4,645,967
NET POSITION
Unrestricted 88,939 5,561 1,234,958
Total net position $ 88,939 $ 5,561 $ 1,234,958
(Concluded)
123฿
City of Calexico
Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the Year Ended June 30, 2023
Employee Medical Workers
Payroll Benefits Retirees Compensation
OPERATING REVENUES:
Charges for scrvices $ - $ 2,342,394 $ 1,221,043 $ 1,201,539 Other revenue - 418,744 54,996
Total operating revenues 2,761,138 1,276,039 1,201,539
OPERATING EXPENSES:
Salaries and benefits 712,000
Material, supplies, and operational expenses 34,705 8,402 110,260 Insurance 296,950
Claim payments 11286,109 685,386 731,949
Claims administration 1,018,719 274,739 37,380
Total operating expenses 2,339,533 1,680,527 1,176,539
OPERATING INCOME (LOSS) 421,605 (404,488) 25,000
NONOPERATING REVENUES (EXPENSES):
Investment income 7,348 4,938 13,073
Total nonoperating revenues (expenses) 7,348 4,938 13,073 INCOME (LOSS) BEFORE TRANSFERS 428,953 (399,550) 38,073 TRANSFERS:
Transfers in 300,000
Transfers out (300,000) 220,000
Total transfers (300,000) 300,000 (20,000)
Changes in net position 128,953 (99,550) 18,073
NET POSITION:
Beginning of year 436,126 554,867 101,989
End of year $ $ 565,079 $ 455,317 120,062
(Continued)
124
City of Calexico
Statement of Revenues, Expenses, and Changes in Net Position (Continued) All Internal Service Funds
For the Year Ended June 30, 2023
General Unemployment
Liability Insurance Total
OPERATING REVENUES:
Charges for scrvices $ 1,065,001 $ 42,943 $ 5,872,920
Other revenue 473,740
Total operating revenues 1,065,001 42,943 6,346,660
OPERATING EXPENSES:
Salaries and benefits 712,000
Material, supplies, and operational expenses 89,484 242,851 Insurance 708,212 1,005,162
laim payment: 1,324,622 12,630 4,040,696
laims administration 34,042 1,364,880
Total operating expenses 2,156,360 12,630 7,365,589
OPERATING INCOME (LOSS) (1,091,359) 30,313 (1,018,929)
NONOPERATING REVENUES (EXPENSES):
Investment income 4,318 276 29,953
Total nonoperating revenues (expenses) 4,318 276 29,953 INCOME (LOSS) BEFORE TRANSFERS (1,087,041) 30,589 (988,976) TRANSFERS:
Transfers in 1,093,760 1,393,760
Transfers out (30.000) (350,000)
Total transfers 1,093,760 (30,000) 1,043,760
Changes in net position 6,719 589 54,784
NET POSITION:
Beginning of year 82,220 4,972 1,180,174
End of year $ 88,939 $ 5,561 $ 1,234,958
(Concluded)
125
City of Calexico
Statement of Cash Flows
All Internal Service Funds
For the Year Ended June 30, 2023
Employee Medical Workers
Payroll Benefits Retirees Compensation
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users $ 1,587 $ 2,763,732 $ 1,276,039 $ 1,201,539 Cash payments to suppliers for goods and services (567) (61,788) (662,376) (329,170) Cash payments for claims (2,304,828) (960,125) (746,473) Net cash provided by (used in) operating activities 1,020 397,116 (346,462) 125,896
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds 6,486
Cash payments to other funds (1,020) :
Transfers in - 300,000 :
Transfers out (300,000) (20,000)
Net cash provided by (used in) noncapital
financing activities (1,020) (300,000) 300,000 (13,514) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest income - 7,348 4,938 13,073
Net cash provided by investing activities 7,348 4,938 13,073 Net increase (decrease) in cash and cash equivalents 104,464 (41,524) 125,455 CASH AND CASH EQUIVALENTS:
Beginning of year 529,989 589,559 401,810
End of year $ $ 634,453 $ 548,035 $ 527,265
(Continued)
126
City of Calexico
Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2023
General Unemployment
Liability Insurance Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users $ 1,134,559 $ 42,943 6,420,399 Cash payments to suppliers for goods and services (1,292,169) (2,346,070) Cash payments for claims (314,609) (16,309) (4,342,344) Net cash provided by (used in) operating activities (472,219) 26,634 (268,015)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds 260,636 267,122
Cash payments to other funds :
(1,020)
Transfers in 1.03.760 - 1,393,760
Transfers out (30,000) (350,000)
Net cash provided by (used in) noncapital
financing activities 1,354,396 (30,000) 1,309,862
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest income 4,318 276 29,953
Net cash provided by investing activities 4,318 276 29,953 Net increase (decrease) in cash and cash equivalents 886,495 (3,090) 1,071,800 CASH AND CASH EQUIVALENTS:
Beginning of year 529,643 10,404 2,061,405
End of year $ 1,416,138 $ 7,314 $ 3,133,205
(Continued)
127
City of Calexico
Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2023
Employee Medical Workers
Payroll Benefits Retirees Compensation
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED
BY OPERATING ACTIVITIES:
Operating income (loss) $ 421,605 $ (404,488) $ 25,000
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Changes in operating assets and liabilities:
Accounts receivable 1,587 2,594
Deposits
:
Inventories and prepaid items - (144)
Accounts payable (567) (27,083) 58,026 78,040
Accrued payroll
:
Deposits payable
Claims payable 23,000
Total adjustments 1,020 (24,489) 58,026 100,896
Net cash provided by (used in)
operating activities $ 1,020 $ 397,116 $ (346,462) $ 125,896 (Continued)
128
City of Calexico
Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2023
General Unemployment
Liability Insurance Total
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED
BY OPERATING ACTIVITIES:
Operating income (loss) $ (1,091,359) $ 30,313 $ (1,018,929) Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Changes in operating assets and liabilities:
Accounts receivable 69,558 73,739
Deposits
Inventories and prepaid items 210,095 209,951
Accounts payable (494,473) (3,679) (389,736)
Accrued payroll
Deposits payable
Claims payable 833,960 856,960
Total adjustments 619,140 (3,679) 750,914
Net cash provided by (used in)
operating activities $ (472,219) $ 26,634 (268,015)
(Concluded)
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CUSTODIAL FUNDS
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City of Calexico
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023
Corsair 2013-1 Hearthstone
Gran Plaza 2005-1
CFD CFD Total
ASSETS
Cash and investments 226,496 $ 291,913 $ 518,409
Cash and investments with fiscal agents 769,275 59,131 828,406 Receivables:
Intergovernmental : 55,146 55,146
Total assets 995,771 406,190 1,401,961
LIABILITIES
Accounts payable $ 1,103 3,438 4,541
Total liabilities 1,103 3,438 4,541
NET POSITION
Restricted for:
Individuals, organizations, and other governments 994,668 402,752 1,397,420 Total Net Position 994,668 402,752 $ 1,397,420
City of Calexico
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2023
Corsair 2013-1 Hearthstone
Gran Plaza 2005-1
CFD CFD Total
ADDITIONS:
Special assessments for other governments $ 363,847 $ 726,180 $ 1,090,027 Investment earnings 23,678 5,650 29,328
Contribution from City 225,402 225,402
Total additions 612,927 731,830 1,344,757
DEDUCTIONS:
Administration 24,358 43,723 68,081
Public safety 141,617 141,617
Payments - principal 295,000 295,000
Payments- interest 350,350 650,088 1,000,438
Total deductions 669,708 835,428 1,505,136
Changes in net position (56,781) (103,598) (160,379)
NET POSITION:
Beginning of year 1,051,449 506,350 1,557,799
End of year $ 994,668 $ 402,752 $ 1,397,420
134