Regular Meeting of the Calimesa City Council
Monday, December 18, 2023
CALL TO ORDER
ROLL CALL: MAYOR DAVIS, MAYOR PRO TEM HEWITT, COUNCIL MEMBER CERVANTEZ, COUNCIL MEMBER MANLY AND COUNCIL MEMBER MOLINA.
STAFF: CITY MANAGER KOLBOW, CITY ATTORNEY BARROW, CITY CLERK
GERDES, FINANCE DIRECTOR REID, PLANNING DIRECTOR LUCIA, PUBLIC
WORKS ENGINEER SHAKIR, CITY ENGINEER THORNTON, FIRE CHIEF O’CONNELL AND SHERIFF CAPTAIN PETERSON.
PLEDGE OF ALLEGIANCE
PRESENTATIONS – City Employee Recognitions – City Manager Kolbow and Mayor Davis
COMMUNICATIONS FROM THE PUBLIC
Pursuant to the Brown Act, this is the opportunity for members of the public to directly address the Council on any item within the Council’s subject matter jurisdiction. Please note that this is also the time in which members of the public may address the Council on any item on the Consent Calendar. This is not the time for City Council discussion of non-agenda items. After receiving public comments, Council Members, or staff, after being recognized by the Mayor, may briefly respond to statements made by the public or questions posed by the public. In addition, Council Members may ask questions for clarification or make a referral to staff for factual information to be reported back to the Council at a later meeting.
Regular Meeting of the Calimesa City Council
Meeting Agenda
Monday, December 18, 2023 – 6:00 p.m.
Norton Younglove Multipurpose Senior Center
908 Park Avenue, Calimesa, CA 92320
William Davis, Mayor Wendy Hewitt, Mayor Pro Tem
Jeff Cervantez, Council Member John Manly, Council Member Linda Molina, Council Member Will Kolbow, City Manager Quinn Barrow, City Attorney The Calimesa City Council will be conducting this meeting in the Norton Younglove Senior Center. Members of the public may attend this meeting in person at the Norton Younglove Senior Center, 908 Park Avenue, Calimesa, CA 92320, or the public may view the City Council meetings live at https://www.youtube.com/@calimesacity900/live beginning at 6:00 p.m.
Submission of Public Comments: Public comment will be allowed by completing a speaker slip and providing it to the City Clerk at the meeting. Please observe a time limit of three (3) minutes when giving your presentation. When called upon, please step forward to the microphone, state your name for the record, whom you represent and any statement you wish to make. Please be advised that you may not defer your three (3) minutes to another speaker.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Clerk’s Office, (909) 795-9801. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.
Any public writings distributed by the City to at least a majority of the Council Members regarding any item on this regular meeting agenda will be made available at the public counter at City Hall located at 908 Park Avenue, Calimesa, CA 92320.
Regular Meeting of the Calimesa City Council
Monday, December 18, 2023
APPROVAL OF THE AGENDA, CONSENT CALENDAR AND WAIVER OF FULL READING OF ORDINANCES This is the time for the City Council to notify the public of any changes to the agenda; such as removal of an agenda item, rearrangement of the agenda, postponement of an agenda item or continuance of an item to a future meeting. This is also the time for the City Council to remove items from the Consent Calendar for individual consideration. Waiver of full reading of ordinances does not take policy action or approve or disapprove any ordinances on the agenda, it simply means that the entire text of the ordinance will not be read.
RECOMMENDATION: Move to approve the agenda and consent calendar Motion________________________ Second_______________________ Vote___________________________ CONSENT CALENDAR (Items 1 – 13)
The following items on the Consent Calendar are routine and customary items and are enacted by a single motion, with the exception of items previously removed during “Approval of the Agenda” for individual consideration. Any items removed shall be individually considered immediately after taking action on the Consent Calendar.
1. APPROVAL OF CITY COUNCIL ACTION MINUTES.
a) City Council action minutes of a regular meeting of December 4, 2023.
2. RECEIVE AND FILE CITY COMMISSION & BOARD MINUTES.
a) Library Commission action minutes of a regular meeting of November 7, 2023. b) Planning Commission action minutes of a regular meeting of November 27, 2023.
3. APPROVAL OF WARRANT REGISTERS.
a) Check Register Report with a total of $555,972.28 (Check Nos. 41219 to 41285) b) December 1, 2023 Council Payroll of $1,683.75
December 7, 2023 Payroll of $106,479.06
4. COUNCIL TRAVEL EXPENSES.
RECOMMENDATION: That the City Council move to approve the Council Travel Training and Meeting/Mileage Expenses Report through November 30, 2023
5. TREASURER’S REPORT FOR THE MONTH ENDED OCTOBER 31, 2023 RECOMMENDATION: That the City Council receive and file the Investment Report for the month ended October 31, 2023.
6. 2
ND READING OF ORDINANCE NO. 395, BY TITLE ONLY, AN ORDINANCE OF THE CITY OF CALIMESA, CALIFORNIA, AMENDING MUNICIPAL CODE CHAPTER 3.15 (SUPPLIES, SERVICES AND EQUIPMENT PURCHASE PROCEDURE) AND ADDING CHAPTER 3.60 (PUBLIC PROJECTS)”
RECOMMENDATION: That the City Council conduct 2nd reading by title only of Ordinance No. 395, An ordinance of the City of Calimesa, California, amending Municipal Code Chapter 3.15 (supplies, services and equipment purchase procedure) and adding Chapter 3.60 (public projects)”
7. APPLICATION FOR COUNTY OF RIVERSIDE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FOR CITY OF CALIMESA 2021-2022 COOPERATING CITY ALLOCATION.
Regular Meeting of the Calimesa City Council
Monday, December 18, 2023
RECOMMENDATION: That the City Council approve the application requesting County of Riverside Community Development Block Grant Program (CDBG) Application for City of Calimesa 2024-2025 Cooperating City Allocation for the construction of Americans with Disabilities (ADA) sidewalk improvements at the Calimesa Library.
8. ADOPTION OF A CITY-WIDE CIVIL RIGHTS POLICY
RECOMMENDATION: That the City Council adopt Resolution No. 2023-74, a Resolution of the City Council of the City of Calimesa, California, adopting a Civil Rights Policy.
9. RECEIVE AND FILE THE FISCAL YEAR 2022-23 ANNUAL AUDITED FINANCIAL STATEMENTS AND RELATED REPORTS.
RECOMMENDATION: That the City Council receive and file the Fiscal Year 2022-23 Annual Audit Report and Financial Statements, the Report on Internal Control over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards, and the Auditors’ Communication with Those Charged with Governance (SAS 114).
10. ACCEPTANCE OF TR 26925 DETENTION BASIN AND SECOND AMENDMENT TO
AGREEMENT FOR LANDSCAPE SERVICES BETWEEN THE CITY AND INLAND EMPIRE LANDSCAPE.
RECOMMENDATION: That the City Council:
1. Accept the detention basin for maintenance in Tract 26925 in Community Facilities District 2013-1 – JP Ranch; and
2. Approve the Second Amendment to the Agreement for Landscape Maintenance Services between the City of Calimesa and Inland Empire Landscape, authorize the Mayor to execute the amendment, and direct the City Manager to take all actions necessary to implement the Second Amendment.
11. CROWN CASTLE CELL TOWER LEASE EXTENSION PROPOSAL.
RECOMMENDATION: That the City Council approve the Lease Extension Proposal from Crown Castle for the Cell Tower located on City property.
12. SHOPOFF DEVELOPMENT CHERRY VALLEY BOULEVARD/I-10 INTERCHANGE IMPROVEMENT: ACCEPTANCE OF IMPROVEMENT AND RELEASE OF BONDS.
RECOMMENDATION: That the City Council:
1. Accept the public improvements completed by the Shopoff Development and begin the warranty period for the improvements.
2. Approve the release of the Faithful Performance Bond and Payment Bond.
13. COUNTY LINE ROAD NEIGHBORHOOD MARKET, LP, CONSENT TO ENCUMBER FEE DEDICATED PROPERTY.
RECOMMENDATION: That City Council approve Consent to Encumber Property and Authorize the City Manager to Issue a Letter to County Line Neighborhood Market, LP indicating Consent.
Regular Meeting of the Calimesa City Council
Monday, December 18, 2023
CALIMESA CHAMBER OF COMMERCE COMMENTS & REPORTS
PUBLIC HEARINGS
The order of business for the Public Hearing shall be:
Open Public Hearing
Staff Presentation
Applicant/Representative Presentation
Public Testimony
Applicant Rebuttal (if necessary)
Public Testimony Closed
. Close Public Hearing
Council Discussion
Council Motion and Vote
Speakers are encouraged to be brief and remain within the established time limit of three (3) minutes per speaker. Once the public hearing has been closed, no further testimony will be taken.
14. PUBLIC HEARING: CONSIDERATION OF ADOPTION OF TWO RESOLUTIONS OF
NECESSITY FOR THE ACQUISITION BY EMINENT DOMAIN OF CERTAIN REAL
PROPERTY INTERESTS FOR PUBLIC PURPOSES IN CONNECTION WITH THE COUNTY LINE ROAD TRANSPORTATION CORRIDOR PROJECT.
RECOMMENDATION: That the City Council:
1. Consider the following Resolutions, which are Resolutions of Necessity of the City of Calimesa Declaring Certain Real Property Interests Necessary for Public Purposes and Authorizing the Acquisition Thereof in Connection with the City’s County Line Road Transportation Corridor Project: Resolution No. 2023-75 and Resolution No. 2023-76.
2. Open and conduct a hearing on the adoption of the proposed Resolutions of Necessity, receive from City Staff the evidence stated and referred to in this Agenda Report (“Report”), take testimony from any person wishing to be heard on issues A, B, C, and D below, and consider all evidence to determine whether to adopt the proposed Resolutions of Necessity.
3. If the City Council finds, based on the evidence contained and referred to in this Report, the testimony and comments submitted to the City Council, that the evidence warrants the necessary findings with respect to the proposed Resolutions of Necessity, then City Staff recommends that the City Council, in the exercise of its discretion, adopt proposed Resolution of Necessity No. 2023-75 and proposed Resolution of Necessity No. 2023-76 (each of which requires a 4/5ths vote of the entire City Council) and authorize the City Attorney’s office to file eminent domain proceedings to acquire the real property interests described below, which consists of a permanent road easement and reciprocal access easement, respectively on the parcels described below:
15. PUBLIC HEARING: GENERAL PLAN AMENDMENT 23-03 – A CITY-INITIATED MINOR
AMENDMENT TO THE GENERAL PLAN LAND USE MAP (AND OTHER RELATED
GRAPHICS) TO ADJUST THE CITY BOUNDARY BETWEEN THE CITIES OF CALIMESA AND BEAUMONT ALONG CHAMPIONS DRIVE.
RECOMMENDATION: That the City Council:
1. Adopt CC Resolution 2023-77 approving General Plan Amendment 23-03
Regular Meeting of the Calimesa City Council
Monday, December 18, 2023
2. Adopt CC Resolution 2023-78 requesting that the Riverside County Local Agency Formation Commission take proceedings
3. Find this action categorically exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15319, 15060(c)(2), and 15061(b)(3).
BUSINESS ITEMS
16. TYPE– I STRUCTURAL FIRE PUMPER PURCHASE/REPLACEMENT FOR CALIMESA FIRE DEPARTMENT AND WAIVER OF FORMAL BIDDING IN CONNECTION THEREWITH.
RECOMMENDATION: That the City Council:
1. Approve the issuance of a purchase order to the Sutphen Corporation in the amount of $925,801 for the purchase of a 2023 Sutphen Monarch G2 Pumper HS – 7665 Demo 547.
2. Adopt Resolution 2023-79 a Resolution of the City of Calimesa waiving formal bidding and minimum bid requirements as provided by the City’s Municipal Code in connection with the purchase of an aerial ladder truck for the City of Calimesa Fire Department.
17. RESOLUTION NO. 2023-80 APPROVING AMENDMENT NO. 1 TO CITY MANAGER’S EMPLOYMENT AGREEMENT TO PROVIDE A 5% MERIT ADJUSTMENT AND AMEND OTHER TERMS AND BENEFITS.
RECOMMENDATION: That the City Council adopt Resolution No. 2023-80 amending the City Manager’s employment agreement to provide a 5% merit adjustment to his base salary and amend other terms and benefits.
18. CITYWIDE PAVEMENT MANAGEMENT FY 2023/24.
RECOMMENDATION: That the City Council:
1. Receive Staff’s Presentation and Defer Project Scope Determination to a Future Meeting for Fiscal Year 2023-24 Pavement Rehabilitation Program, or
2. Receive Staff’s Presentation and Provide Direction/Prioritization of Streets for Fiscal Year 2023-24 Pavement Rehabilitation Program.
MAYOR & COUNCIL MEMBER REPORTING OF COUNTY & REGIONAL MEETINGS/CONFERENCES This is the time for general comments, announcements, reports on meetings attended at public expense as required by AB 1234, requests of staff, and other issues of concern to Council Members may be presented briefly at this time. The Council may not legally take action on any item presented at this time other than to direct staff to investigate a complaint or place an item on a future agenda unless (1) by a majority vote, the Council determines that an emergency situation exists, as defined by Government Code § 54956.5 or (2) by a four-fifths vote, the Council determines that there is a need for immediate action and the need for action arose subsequent to the agenda being posted as required by Government Code § 54954.2(b).
CITY MANAGER COMMENTS & REPORTS
ADJOURNMENT
Adjourn to the Regular Meeting of the City Council on January 16, 2024, at 6:00 p.m.
City Council Meeting
Agenda Report
Agenda Item No. 1
SUBJECT: APPROVAL OF CITY COUNCIL MEETING MINUTES
MEETING DATE: December 18, 2023
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve the action minutes as presented for the Regular City Council meeting of December 4, 2023.
ATTACHMENTS:
Attachment A: City Council action minutes of December 4, 2023 regular meeting.
City Council Meeting
Agenda Report
Agenda Item No. 2
SUBJECT: APPROVAL OF COMMISSION MEETING MINUTES
MEETING DATE: December 18, 2023
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve the action minutes as presented for the Library Commission regular meeting of November 7, 2023 and the Planning Commission special meeting of November 27, 2023.
ATTACHMENTS:
Attachment A: Library Commission action minutes of regular meeting of 11/07/2023.
Attachment B: Planning Commission action minutes of special meeting of 11/27/2023.
City Council Meeting
Agenda Report
Agenda Item No. 3
SUBJECT: APPROVAL OF WARRANT REGISTER
MEETING DATE: December 18, 2023
PREPARED BY: Celeste Reid, Finance Director
RECOMMENDATION: That the City Council approve the Warrant Register as presented.
SUMMARY: The attached Check Register Report for City Council’s approval is as follows:
a) Check Register Report with a total of $555,972.28 (Check Nos. 41219-41285) b) December 1, 2023 Council Payroll of $1,683.75
December 7, 2023 Payroll of $106,479.06
City Council Meeting
Agenda Report
Agenda Item No. 4
SUBJECT: COUNCIL TRAVEL, TRAINING AND MEETING/MILEAGE
EXPENSES
MEETING DATE: December 18, 2023
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve the Council Travel, Training and Meeting/Mileage Expenses Report through November 30, 2023.
ATTACHMENTS:
Attachment A: Council Travel, Training and Meeting/Mileage Expenses Report through November 30, 2023.
FISCAL YEAR 2023-24
COUNCIL TRAVEL AND MEETING/MILEAGE EXPENSES
ATTACHMENT 4A
MEETING/MILEAGE 01-1100-7590
DATE DESCRIPTION AMOUNT DATE DESCRIPTION AMOUNT
TOTAL TRAVEL/TRAINING $ - TOTAL MEETING/MILEAGE $ -
REMAINING BALANCE $ 1,450.00 REMAINING BALANCE $ 600.00 MEETING/MILEAGE 01-1100-7590
DATE DESCRIPTION AMOUNT DATE DESCRIPTION AMOUNT
TOTAL TRAVEL/TRAINING $ - TOTAL MEETING/MILEAGE $ -
REMAINING BALANCE $ 1,450.00 REMAINING BALANCE $ 600.00
JEFF CERVANTEZ TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585
WENDY HEWITT TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585
FISCAL YEAR 2023-24
COUNCIL TRAVEL AND MEETING/MILEAGE EXPENSES
ATTACHMENT 4A
MEETING/MILEAGE 01-1100-7590
DATE DESCRIPTION AMOUNT DATE DESCRIPTION AMOUNT
TOTAL TRAVEL/TRAINING $ - TOTAL MEETING/MILEAGE $ -
REMAINING BALANCE $ 1,900.00 REMAINING BALANCE $ 600.00 MEETING/MILEAGE 01-1100-7590
DATE DESCRIPTION AMOUNT DATE DESCRIPTION AMOUNT
1-Jul LOCC Annual Conf Registration $ 75.00 10-Jul LOCC Riverside Division Meeting $ 40.00 31-Jul Airline ticket for Conference $ 336.97 11-Dec LOCC Riverside Division Meeting $ 45.00 TOTAL TRAVEL/TRAINING $ 411.97 TOTAL MEETING/MILEAGE $ 85.00 REMAINING BALANCE $ 1,038.03 REMAINING BALANCE $ 515.00
LINDA MOLINA TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585
BILL DAVIS TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585
FISCAL YEAR 2023-24
COUNCIL TRAVEL AND MEETING/MILEAGE EXPENSES
ATTACHMENT 4A
MEETING/MILEAGE 01-1100-7590
DATE DESCRIPTION AMOUNT DESCRIPTION AMOUNT
TOTAL TRAVEL/TRAINING $ - TOTAL MEETING/MILEAGE $ -
REMAINING BALANCE $ 1,450.00 REMAINING BALANCE $ 600.00
JOHN MANLY TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585
City Council Meeting
Agenda Report
Agenda Item No. 5
SUBJECT: TREASURER’S REPORT FOR THE MONTH ENDED OCTOBER 31, 2023
MEETING DATE: December 18, 2023
PREPARED BY: Celeste Reid, Finance Director and Treasurer RECOMMENDATION: That the City Council receive and file the Investment Report for the month ended October 31, 2023.
BACKGROUND: Pursuant to Council Resolution No. 2023-68 approved on November 6, 2023, the monthly Treasurer’s Report is hereby submitted. The report complies with the aforementioned Council resolution, as well as Government Code Section 53646.
DISCUSSION: The investment report provides information in accordance with the Investment Policy approved by Council Resolution No. 2023-68. Information includes the reporting of realized and unrealized gain and loss activity for the respective month of reporting. Generally, unrealized gains and losses are the day-to-day increases or decreases in an asset’s value. Until an investment is sold for cash, the gains or losses remain unrealized. Realized gains and losses reflect the results of selling of investments and are the difference between the cost basis and the market value as of the transaction date of sale. The City will continually have reportable changes of unrealized gain and loss activity between cost basis and market value as underlying investments are subject to the variability of market conditions. Staff evaluates investment options on an ongoing basis to ensure reasonable access to funds and reserves are set aside to maintain availability of cash position for general operations and capital assets.
Significant transactions during the month include a transfer on October 12, 2023 of $750,000 from the LAIF investment account to the Bank of America checking account.
FISCAL IMPACT: Revenue was recognized for interest and dividend earnings of $240,699 from LAIF, CFD and Successor Agency funds.
ATTACHMENTS:
Attachment A: Treasurer’s Report for the month ended October 31, 2023.
City Council Meeting
Agenda Report
Agenda Item No. 6
SUBJECT: 2
ND READING OF ORDINANCE NO. 395 - AN ORDINANCE OF
THE CITY OF CALIMESA, CALIFORNIA, AMENDING MUNICIPAL
CODE CHAPTER 3.15 (SUPPLIES, SERVICES AND EQUIPMENT
PURCHASE PROCEDURE) AND ADDING CHAPTER 3.60
(PUBLIC PROJECTS).
MEETING DATE: December 18, 2023
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council conduct 2nd reading by title only and adopt Ordinance No. 395, AN ORDINANCE OF THE CITY OF CALIMESA, CALIFORNIA, AN ORDINANCE OF THE CITY OF CALIMESA, CALIFORNIA, AMENDING MUNICIPAL CODE CHAPTER 3.15 (SUPPLIES, SERVICES AND EQUIPMENT PURCHASE PROCEDURE) AND ADDING CHAPTER 3.60 (PUBLIC PROJECTS).
ATTACHMENTS:
Attachment A: Ordinance No. 395
ATTACHMENT 6A
ORDINANCE NO. 395
12459-0001\2865073v3.doc
ORDINANCE NO. 395
AN ORDINANCE OF THE CITY OF CALIMESA, CALIFORNIA,
AMENDING MUNICIPAL CODE CHAPTER 3.15 (SUPPLIES,
SERVICES AND EQUIPMENT PURCHASE PROCEDURE) AND
ADDING CHAPTER 3.60 (PUBLIC PROJECTS)
, APPLYING THE RESIDENTIAL INFILL PRIORITY AREA OVERLAY ZO
THE CITY COUNCIL OF THE CITY OF CALIMESA DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Chapter 3.15 (SUPPLIES, SERVICES AND EQUIPMENT PURCHASE PROCEDURE) of Title 3 (REVENUE AND FINANCE) of the Calimesa Municipal Code is hereby amended and restated as follows:
Chapter 3.15
SUPPLIES, SERVICES AND EQUIPMENT PURCHASE PROCEDURE
3.15.010 Adoption of purchasing system.
The provisions of this chapter are adopted in accordance with the provisions of California Government Code Sections 54201 through 54205 regarding the purchase of supplies, equipment and services. In order to establish efficient procedures for the purchase of supplies, services and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function, and to assure the quality of purchases, a purchasing system is hereby adopted for the purchase of all city supplies, services and equipment.
3.15.020 - Centralized Purchasing Division.
There is hereby created a centralized Purchasing Division in which is vested authority for the purchase of supplies, equipment, and services. The Purchasing Agent shall administer and be responsible for the successful performance of all functions of the Purchasing Division. The Purchasing Agent shall purchase supplies, equipment, and services at the lowest possible cost commensurate with quality needed.
3.15.030 - Purchasing Agent.
The City Manager is designated as purchasing officer pursuant to Section
2.05.060(i) of this municipal code, and shall assign an employee to act as a Purchasing Agent. The Purchasing Agent shall be the head, and have general supervision of the Purchasing Division, and shall act as the purchasing agent for the City. The Purchasing Agent shall have authority to:
A. Purchase or contract for supplies, equipment, and services required by any using department or agency in accordance with the provision of Section 54201 et seq. of the California Government Code, and with purchasing procedures prescribed by this chapter, such administrative regulations as the Purchasing Agent shall adopt for the
internal management and operation of the Purchasing Division and such other rules and regulations as shall be prescribed by the Council or City Manager; B. Negotiate and recommend execution of contracts for the purchase of supplies, equipment, and services;
C. Act to procure for the City the needed quality in supplies, equipment, and services at least expense to the City;
D. Discourage collusion in bidding and induce full competition on all purchases; E. Prepare and recommend to the City Manager rules governing the purchase of supplies, equipment and services for the City;
F. Prepare and recommend to the Council revisions and amendments to the purchasing rules;
G. Keep informed of current developments in the field of purchasing, prices, market conditions and new products;
H. Prescribe and maintain processes as are reasonably necessary to the operation of this chapter and other rules and regulations; I. Supervise the inspection of all supplies, equipment, and services purchased to insure conformance with specifications; and
J. Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any agency and which have become unsuitable for City use.
K. Recommend local purchases whenever feasible, reasonable, and in the City’s best interest.
3.15.040 - Reserved.
Reserved.
3.15.050 - Specifications.
As needed, the Purchasing Agent, in conjunction with the using department or agency, shall develop standard specifications for repetitively procured items and services. Every specification shall be prepared to assure the broadest possible bidder participation consistent with the needs of the using department or agency. Alternate specification provisions for any particular bid invitation may be established by the Purchasing Agent.
3.15.060 - Formal contract procedure.
Except as otherwise specifically provided in this section or in other sections of this chapter, purchases of supplies, equipment and services of an estimated value exceeding
$25,000 shall be by formal sealed competitive bids. Awards for such expenditures shall be made by the Council to the lowest responsible bidder in accordance with the following provisions:
A. Lowest Responsible Bidder. "Lowest responsible bidder," as used in this chapter, shall mean that bidder who best responds in price, quality, service, fitness, or capacity to the particular requirements of the City. Price alone shall not be the determining factor but shall be considered along with the other factors, including, but not limited to, the ability of the bidder to deliver, availability of parts or service, prior experience and other factors relating to the particular needs of the City for the supplies, equipment or services to be purchased.
B. Notices Inviting Bids. The Purchasing Agent shall be responsible for posting notification of solicitation of bids, which shall include a general description of the articles to be purchased, state where bid specifications may be secured and the time and place for opening of the bids. The notice shall specify the factors referred to in subsection A of this section, which factors will be given special consideration in determining the lowest responsible bid for the supplies or equipment to be purchased. Notices shall be posted on the City's website and other public posting locations may be utilized as determined by the Purchasing Agent.
C. Bidders' Security. When deemed necessary by the Purchasing Agent, bidders' security may be prescribed in the notices inviting bids. Bidders shall be entitled to the return of bid securities; provided, however, a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within the time designated in the bid specifications. The Council, on the refusal or failure of the successful bidder to execute the contract, may award the contract to the next lowest responsible bidder. If the Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to the contract price differential between the lowest bid and the second lowest bid and the surplus, if any, shall be returned to the lowest bidder.
D. Performance Bonds. The Purchasing Agent shall have authority to require a performance bond before entering a contract in an amount reasonably necessary to protect the best interests of the City.
E. Bid Opening Procedure. Bids shall be submitted electronically through the electronic bidding system used by the City's Purchasing Division, unless the Purchasing Agent determines otherwise. Bids shall be made publicly available upon opening.
F. Confidentiality of Bids. All bids received pursuant to the provisions of this chapter shall not be revealed directly or indirectly to any other bidder until the bidding process is completed and all submitted bids have been verified. A tabulation of all bids received shall be available for public inspection during regular business hours after the bids have been verified.
G. Rejection of Bids. The Purchasing Agent may reject any and all bids presented and re-advertise for bids.
H. Award of Contracts. Any resulting contract shall be awarded by the Council to the lowest responsible bidder as defined in subsection A of this section.
3.15.070 - Informal contract procedure.
Subject to other applicable provisions of this chapter:
A. Value of Purchases. General purchases of supplies, equipment and services of $1,000 or less, shall be purchased directly by the departments under established administrative rules and authority. Purchases valued above $1,000 and up to $25,000 may be made in the open market pursuant to the procedure prescribed in this section without observing the procedures prescribed in Section 3.15.060 of this chapter.
B. Approval of Purchases. Any purchase above $1,000 and up to $10,000 shall be made by the Purchasing Agent, and require the prior approval of the City Manager. Any purchases above $10,000 must be approved by the City Council.
C. Minimum Number of Bids. Open market purchases above $1,000 and up to $25,000 shall, whenever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder.
3.15.080 - Purchase orders.
A. Purchase Orders. Purchases of supplies, equipment, and services shall be made only by numbered purchase order.
B. Change Orders. Any change order for an approved purchase or contract shall be documented by a purchase order addendum. The City Manager may authorize cumulative increases up to $10,000 as long as sufficient funding is available.
3.15.090 - Encumbrance of funds.
Except in cases of emergency, the Purchasing Agent shall not issue any purchase order for supplies, equipment or services unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged.
3.15.100 - Inspection and testing.
The Purchasing Agent shall inspect supplies and equipment delivered and contractual services performed to determine their conformance with the specifications set forth in the order or contract. The Purchasing Agent shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications.
3.15.110 - Emergency procurement.
For purposes of this section, an emergency shall be deemed to exist only when a condition exists that presents an immediate threat to health, safety or improved property and when a local emergency or disaster has been proclaimed.
A. When a local emergency is proclaimed, the City's normal purchasing procedures may be superseded by the following provisions to deal with the exigent circumstances.
B. Solicited bids that are non-responsive shall count towards the minimum number of bids required when there is a declared emergency or disaster in the City.
C. When an emergency or disaster is proclaimed, the City's normal requirements for sealed formal bids will be suspended to allow for telephonic or other electronic bids from potential vendors or suppliers, in lieu of written and/or sealed bids. In addition, the requirement for public posting may be waived. Also, if the purchase exceeds $10,000, those expenditures will be presented to the Council for ratification within 60 days.
D. If the emergency requires the immediate procurement of supplies, equipment or services and the amount is above $1,000 and does not exceed $10,000, the Purchasing Agent will obtain the EOC (Emergency Operations Center) Director's approval prior to making a purchase.
E. If during the proclaimed emergency, the Purchasing Agent is not available, the EOC Director may order the needed commodity or service from the nearest available source. As soon as possible thereafter, the EOC Director shall submit to the Purchasing Agent a notation that the commodity or service has been ordered on an emergency basis from the vendor designated and the Purchasing Agent shall prepare an after-the-fact purchase order.
F. If the emergency requires the immediate procurement of supplies, equipment or services needed to preserve life and/or property, the purchase may be made without following bidding procedures. However, written justification enumerating one or more of the following rationale, must be included with the purchase request: emergency protective measure, scarce commodity, emergency consulting services, emergency road clearance, other emergency requirement, and/or lack of bids. The use of a pre-existing contract may be utilized under these circumstances.
G. During a declared emergency or disaster, the Purchasing Agent has the authority to rescind a contract for non-performance within 24 hours when a contractor or vendor, once awarded a contract, is unable to perform under the terms of the contract and the resulting delay or non-performance present an immediate threat to life, safety or improved property.
H. All purchases made under emergency or disaster conditions shall require separate invoicing from routine (non-disaster related) purchases. All invoices shall state the goods, services or equipment provided and shall specify where the purchases were delivered and/or used.
3.15.120 - Professional services.
Contracts for services of specially-trained and professional persons shall be exempt from bidding. Such contracts may be procured by the Director of the Department (or designee)
that requires the services, in accordance with established administrative rules and procedures. If the amount exceeds $1,000 the City Manager's approval is required. All contracts exceeding $10,000 must be approved by the Council.
3.15.130 - Waivers.
At its discretion, the Council may, at any time by majority vote and without amending this chapter, waive purchasing procedures or alter these proceedings to fit a specific purchase when such waiver is not in violation of California State law. Whenever special market conditions require it, the City Manager may waive the open market requirements for replenishment of supplies, materials, and equipment, or for services, where the best interest of the City is served, provided that such waiver is ratified by the Council at a meeting within 30 days of the purchase.
3.15.140 - Alternative Purchasing Procedures
In lieu of the purchasing and bid procedures set forth in this article, the following alternative purchasing procedures may be used in the discretion of the Purchasing Agent for the purchase of supplies, equipment or services,
A. Where purchases are to be made in concert with or through agreements executed by other agencies, formal bid requirements as outlined in Section 3.15.060 of this chapter may be waived by the City Council.
B. Purchases of supplies, equipment or services where competitive bid procedures have already been utilized, such as purchases from federal, state or county governments, including, state of California agencies, counties, cities, joint power agencies, special districts, and nonprofit agencies whose main purpose is to assist cities or other public entities, and the supplies or equipment are supplied to the City at the same or better price, as was obtained through the competitive bid procedures of that entity.
C. When the requesting department determines in writing, after conducting a good faith review of the available sources, that there is only one source for the required equipment, supplies or services or that a sole source procurement is necessary to ensure compatibility with existing City equipment. The department requesting sole source procurement shall provide written evidence to support a sole source determination. Such evidence shall be approved by the Purchasing Agent. The City Manager may require that negotiations be conducted as to price, delivery and terms. The City Manager may also require the submission of cost or pricing data in connection with an award under this section.
3.15.150 - Unauthorized purchases and contracts.
It shall be unlawful for an officer, employee, or agent of the City to order the purchase of supplies, equipment, or services, or to make any contract in violation of this chapter, and any order, purchase or contract made contrary to the provisions of this chapter shall not be binding on the City, and the City shall not be obligated thereunder.
3.15.160 - Prohibition against splitting purchases.
Purchase of supplies, equipment or services shall not be divided or staged for the purpose of circumventing the bidding or approval requirements of this chapter.
3.15.170 - Disposition of City obsolete and surplus property.
The City Manager shall have authority to sell as surplus, materials and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for, or trade in the same one, new supplies, materials and equipment.
A. The sale of surplus supplies and equipment shall be made pursuant to rules prescribed by the city manager, and only after authorization from the City Council as to any items of an estimated value of $10,000 or more.
B. Surplus supplies and equipment may be sold to the public if so prescribed by the city manager and/or the city council. City officials and employees, and their immediate families, however, shall be ineligible to purchase such surplus items.
C. 3.15.180 - Reimbursement Agreements; Contracts Paid by Third Parties.
The City Manager is authorized to enter into the following agreements:
A. Reimbursement agreements, whereby a third party (typically a developer or project applicant) pays for services relating to processing a development application, or for services relating to conditions of approval for a project.
B. Professional services agreements that are paid solely by third parties pursuant to a reimbursement agreement.
Section 2. Chapter 3.60 (PUBLIC PROJECTS) is hereby added to Title 3 (REVENUE AND FINANCE) of the Calimesa Municipal Code as follows:
Chapter 3.60 - PUBLIC PROJECTS
3.60.010 - Intent.
The intent of this chapter is to provide standardized procedures for awarding contracts for public projects in conformance with the Uniform Public Construction Cost Accounting Act (California Public Contract Code Section 22000 et seq.).
3.60.020 - Definitions.
Unless the context otherwise requires, the following definitions shall govern the construction of this chapter:
"Public project" shall be defined as that term is defined in Section 22002(c) of the California Public Contract Code or any successor statute thereto.
"Uniform Public Construction Cost Accounting Act" shall mean the procedures and regulations set forth in Chapter 2, commencing with Section 22000, to Part 3 of Division 2 of the California Public Contract Code or any successor act thereto.
3.60.030 - Applicability.
All public projects shall be bid and let to contract in accordance with the procedures prescribed by the Uniform Public Construction Cost Accounting Act, or any successor act thereto, and the provisions set forth in this chapter.
3.60.040 - Bid requirements, purchasing procedures, and contracting procedures.
This section shall govern the procedures for bidding and awarding all purchase orders and contracts to perform public projects. Bidding requirements and other purchasing and contracting procedures are categorized into three different levels set forth below. Each level shall govern purchases and contracts of different values. Notwithstanding any provision of this chapter, the bidding and other procedures for awarding public project contracts shall not violate the limitations of the Uniform Public Construction Cost Accounting Act, as they may be amended from time to time by the State Controller or the State Legislature.
A. Level 1 Projects. Public projects that do not exceed the limit in Public Contract Code Section 22032(a), as it now exists or may subsequently be amended, may be performed by City employees by force account or may be awarded by negotiated contract or by purchase order without competitive bidding.
B. Level 2 Projects. Public projects that do not exceed the limit in Public Contract Code Section 22032(b), as it now exists or may subsequently be amended, may be let to contract by the informal bid procedures set forth in this subsection B. All level 2 project contracts shall require informal competitive written bidding, as follows:
1. Written bids.
(i) Bid specifications shall be prepared and written notices soliciting written bids shall be disseminated consistent with paragraph 3. of subsection B. of this section.
(ii) Bids shall be submitted in writing and must be received prior to the bid closing date to be considered.
(iii) The awarding authority shall award the contract to the lowest responsible and responsive bidder. The awarding authority may reject all bids, or waive any irregularities or informalities in any bid or bidding.
2. Contractors list. The City shall develop and maintain a list of qualified contractors, identified according to categories of work, in accordance with the provisions of Public Contract Code Section 22034, or any successor statute
thereto, and the minimum criteria for development and maintenance of the contractors list as determined by the California Uniform Construction Cost Accounting Commission.
3. Notice inviting informal bids. At least 10 calendar days prior to the date informal bids are due, the City shall mail, fax or email a notice inviting informal bids to one or both of the following: (i) all contractors from the applicable category of work to be bid, as shown on the contractors list developed in accordance with paragraph 2. of subsection B. of this section, or (ii) all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Public Contract Code Section 22036, or any successor statute thereto. The notice shall describe the project in general terms, shall clearly indicate how to obtain more detailed information about the project, and shall set forth the time and place for the submission of bids. Additional contractors or construction trade journals may be noticed at the discretion of the City department soliciting bids. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.
4. Excess bids. If all bids received pursuant to the procedures outlined in this subsection B. are in excess of the limit in Public Contract Code Section 22032(b), the City Council may employ the procedure authorized in Public Contract Code Section 22034(d).
C. Level 3 projects. Public projects that exceed the limit in Public Contract Code Section 22032(c), as it now exists or may subsequently be amended, shall, except as otherwise provided by law, be let to contract by the formal bidding procedures set forth in this subsection.
1. Notice inviting formal bids. The City shall publish and mail a notice inviting sealed formal bids in accordance with the provisions of Public Contract Code Section 22037, or any successor statute thereto.
2. Receipt of bids. Electronic bids shall be received through the electronic bidding system selected by the City, and shall not be opened until the time designated in the bid specifications. Bids must be received prior to the bid opening to be considered. Users of the City's electronic bidding system shall be charged a fee, in an amount determined by the City Council by resolution.
3. Award. The City Council shall award the bid to the lowest responsible bidder, or reject all bids pursuant to Public Contract Code Section 22038, or its successor statute. The City Council may waive any irregularities or informalities in any bid or bidding.
3.60.050 - Delegation of authority to award contracts for level 1 projects.
The City Manager is authorized to award bids and enter into contracts up to $10,000 for Level 1 public projects, pursuant to Section 3.60.040(a) of this chapter, provided there
exists an unencumbered appropriation in the fund account against which the expense is to be charged.
3.60.060 - Delegation of design approval authority.
The Public Works Director and City Engineer are authorized to approve plans or designs for purposes of design immunity pursuant to Government Code Section 830.6, for all public projects approved by the City Manager pursuant to Section 3.60.050. Nothing in this section is intended to, nor will it, preclude the City Council from separately or additionally approving plans or designs for purposes of design immunity pursuant to Government Code Section 830.6.
3.60.070 - Bid security.
Bid security shall be required as a condition of submitting a written bid unless deemed unnecessary by the City Manager or his or her designee. Bid security may be a bond issued by a licensed and duly qualified corporate surety, or the equivalent in cash, money order, cashier's check, certified check, unconditional letter of credit, or other form approved by the city attorney. Bid security must equal at least 10 percent of the bid amount.
3.60.080 - Emergencies.
In cases of emergency when repair or replacements are necessary, the City may proceed in compliance with Public Contract Code Section 22035, or any successor statute.
Section 3. The City Clerk shall certify the adoption of this Ordinance and shall cause it to be published in the manner required by law.
INTRODUCED AND APPROVED UPON FIRST READING this 4
th day of
December 2023 upon the following vote:
AYES: Cervantez, Davis, Hewitt, Manly and Molina
NOES: None
ABSENT: None
ABSTAIN: None
PASSED, APPROVED AND ADOPTED UPON SECOND READING this 18th day of December 2023, upon the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
WILLIAM DAVIS, MAYOR
ATTEST:
_________________________________
DARLENE GERDES, CITY CLERK
APPROVED AS TO FORM:
__________________________________
QUINN BARROW, CITY ATTORNEY
City Council Meeting
Agenda Report
Agenda Item No. 7
SUBJECT: APPLICATION FOR COUNTY OF RIVERSIDE COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FOR
CITY OF CALIMESA 2021-2022 COOPERATING CITY
ALLOCATION
MEETING DATE: December 18, 2023
PREPARED BY: Will Kolbow, City Manager
Margaret Monson, Director of Public Works
RECOMMENDATION: That the City Council approve the application requesting County of Riverside Community Development Block Grant Program (CDBG) Application for City of Calimesa 2024-2025 Cooperating City Allocation for the construction of Americans with Disabilities (ADA) sidewalk improvements at the Calimesa Library.
BACKGROUND: : The City received Notice of Funding Availability (NOFA) for the County of Riverside’s FY 2024-2025 Urban County CDBG program for Cooperating Cities dated September 4, 2020. This funding covers City projects as well as community service projects within the City for eligible organizations. Staff advertised for applications from the City’s potential subrecipients including non-profit service organizations, special districts, or other entities by public posting and advertisement in the local newspaper. No applications were requested or received for the service portion of available funding.
The City Council has prioritized ADA construction projects by establishing a fund for such projects as recommended by PARSAC (now CIRA), and by the completion of the ADA Transition Plan and report in 2015. The ADA improvements to City Facilities have been prioritized and the Calimesa Library is the next facility to be improved. The exterior access improvements from the public street are the next priority. The proposed improvements will bring the access into compliance and provide a safer path of travel from the street to the front door. Included in the plans are an ADA ramp at the crosswalk and reconstruction of the driveway to include an ADA compliant sidewalk behind the approach at the Library driveway.
DISCUSSION: City staff has completed the application of CDBG funding for the Calimesa Library ADA Sidewalk Improvement Project, which is included as Attachment A. The application requires approval by the City Council prior to submitting it to Riverside County Department of Housing and Workforce Solutions. The City is requesting a maximum of $20,795 in funding to assist in funding this construction. The Engineer’s Estimate is included in the Application for the construction for a total of $14,482. Additional costs estimated for staff time for plans and bidding, $10,000,
construction management, survey, inspection and materials testing is $10,000 for a total estimated cost of $34,482.
FISCAL IMPACT: Annually since 2012, the City’s General Fund has transferred $5,000 per year to the City’s ADA fund for the purpose of establishing a reserve for ADA compliance projects. Based upon the projected actuals for 2023-2024 in the approved 2023-24 Budget document, the City’s ADA fund is an estimated $65,000. The total estimated cost of the project is $34,482. Staff is recommending that the City Council approve the application for $20,795 from CDBG and appropriate $13,687 from the ADA fund to complete the project. If approved the project is ultimately approved by the County, the project budget would be incorporated into the 2024-25 budget process.
ATTACHMENTS:
Attachment A: County of Riverside Community Development Block Grant Program Application for City of Calimesa 2024-2025 Cooperating City Allocation Attachment B: NOFA
ATTACHMENT 7A
COUNTY OF RIVERSIDE COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRANM
APPLICATION FOR CITY OF CALIMESA 2024-
2025 COOPERATING CITY ALLOCATION
COUNTY OF RIVERSIDE
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
APPLICATION FOR CITY OF
2024-2025 CDBG ALLOCATION
I. GENERAL INFORMATION
Applying Organization Name:
Type of Organization: Non-Profit Organization Faith Based Organization For-Profit Organization Institution of Higher Education Organization Address:
City: Zip Code:
Mailing Address:
City: Zip Code:
Telephone Number: Fax Number:
Executive Director:
Telephone Number: E-mail:
Program Manager:
Telephone Number: E-mail:
Grant Writer:
Address (If different from above):
Telephone Number: E-mail:
II. ORGANIZATIONAL HISTORY (This is applicable only if you are a non-profit organization) Date Organization founded:
Date Organization incorporated as a non-profit organization (Attach Articles of Incorporation and Bylaws):
Federal identification number:
DUNS Number:
Organization Web Address:
1 Does your Organization expend $750,000 or more a year in federal funds? Y or N Number of paid staff:
Number of volunteers:
Members/Board of Directors (Attach):
III. PROJECT ACTIVITY
A. Name of Project:
B. Specific Location of Project
(Attach Project Map - include street address; if a street address has not been assigned provide APN) Street or APN:
City: Zip Code:
C. CDBG Funds Requested: (total amount for the project only) D. Where will the proposed activity occur (be specific as to the geographic boundaries)? If the project involves a new or existing facility, what is the proposed service/benefit area for the facility? E. In which City (ies)/Communities does the activity occur? City (ies):
Community (ies):
NOTE: HWS will make the final determination of the appropriate service area of all proposals.
F. If this project benefits residents of more than one community or jurisdiction, have requests been submitted to those other entitlement jurisdictions? (i.e., County district(s) 1 st
, 2
nd, 3rd, 4th, and/or 5th
, City of
Palm Springs, City of Moreno Valley, City of Riverside, etc.)
2 G. Check ONLY the applicable category your application represents.
Public Service
Homeless Activities
Real Property Acquisition (Must consult with EDA prior to submitting application) Housing
Rehabilitation/Preservation (please provide picture of structure) Public Facilities (construction)
Infrastructure (i.e. Streets, Sewer, Sidewalk, etc.)
Other: (provide description) ________________ __
H. Respond to A & B only if this application is for a public service project. (a) Is this a NEW service provided by your agency? Yes No (b) If service is not new, will the existing public service activity level be substantially increased or improved?
IV. PROJECT NARRATIVE
A. Provide a detailed Project Description. The description should only address or discuss the specific activities, services, or project that is to be assisted with CDBG funds. If CDBG funds will assist the entire program or activity, then provide a description of the entire program or activity:
3 B. Provide a detailed description of the proposed use of the CDBG funds only (e.g. client scholarships, purchase of specific equipment, rent, supplies, utilities, salaries, etc.):
C. What are the goals and objectives of the project, service, or activity? How will you measure and evaluate the success of the project to meet these goals and objectives (measures should be qualitative)?
D. Please identify the project milestones using an Estimated Timeline for Project Implementation:
4 V. PROJECT BENEFIT
A. Indicate the number of people or households that will directly benefit from your proposal using CDBG funds: Note: This is based on the expected number of clients to be served if the County funds your project for the requested amount.
B. Indicate the number of unduplicated clients that will be served (An unduplicated client is counted only once, no matter how many direct services the client receives during a funding year):
C. Length of proposed CDBG-funded activities or service (weeks, months, year):
D. Service will be provided to (check one or more):
Men Seniors
Women Severely Disabled Adults
Children (Range of children’s ages :__________) Migrant Farm Workers Homeless (Number of beds at facility :________) Families
5 E. What methods will be used for community involvement to assure that all who might benefit from the project are provided an opportunity to participate?
F. What evidence is there of a long-term commitment to the proposal? Describe how you plan to continue the work (project) after the CDBG funds are expended?
VI. National Objective
All CDBG-funded activities must meet at least one of the following National Objectives of the CDBG program. Indicate the category of National Objective to be met by your activity.
CATEGORY A: Benefit to low-moderate income persons (must be documented). Please choose either subcategory 1 or 2:
1. Limited Clientele:
The project serves clientele that will provide documentation of their family size, income, and ethnicity.
Identify the procedure you currently have in place to document that at least 51% of the clientele you serve are low-moderate income persons.
6 2. Clientele presumed to be principally low- and moderate-income persons:
The following groups are presumed by HUD to meet this criterion. You will be required to submit a certification from the client (s) that they fall into one of the following presumed categories.
The activity will benefit (check one or more)
Abused children Homeless persons
Battered spouses Illiterate adults
Elderly persons Persons living with AIDS
Severely disabled adults Migrant Farm workers
a. Describe the clientele above to be served by this activity:
b. Discuss how this project directly benefits low- and moderate- income residents:
CATEGORY B: Area Benefit - The project or facility serves, or is available to, ALL persons located within an area where at least 51% of the residents are low/moderate-income. (Applicant is welcome to contact a County of Riverside, HWS CDBG Program Manager for Census Information) 2010 Census Tract and Block Group numbers:
_______________
_______________
_______________
_______________
_______________
Total population in Census Tract(s) / block group(s):_______________________ Total percentage of low-moderate population in Census Tract(s) / block group(s):________
7 CATEGORY C: Activities undertaken to create or retain permanent jobs, at least 51% of which will be made available to or held by low/moderate-income persons.
Proposed Job Creation/Retention
Total Jobs Expected to Create:
Total Jobs Expected to Retain:
CATEGORY D: Activities that provide assistance to micro-enterprise owners/developers who are low/moderate-income.
Proposed Assistance to Businesses
New Businesses expected to assist:
Existing Businesses expected to assist:
Enter Total Businesses expected to assist:
VII. FINANCIAL INFORMATION
A. Proposed Project Budget
Complete the following annual program budget to begin July 1, 2024. If your proposed CDBG-funded activity will start on a date other than July 1, 2024, please indicate starting date. Provide total Budget information and distribution of CDBG funds in the proposed budget.
The budgeted items are for the specific activity for which you are requesting CDBG funding - NOT for the budget of the “entire” organization or agency. (Note: CDBG funds requested must match amount requested in Project Activity, C above.)
(EXAMPLE: The Valley Senior Center is requesting funding for a new Senior Nutritional Program. The total cost of the program is $15,000 and $10,000 in CDBG funds is being requested for operating expenses associated with the proposed activity. The total Activity/Project Budget will include $5,000 of other non-CDBG funding and $10,000 in CDBG funds for a Grand Total of $15,000).
TOTAL ACTIVITY/
PROJECT BUDGET CDBG FUNDS
(Include non-CDBG Funds REQUESTED-Only
and CDBG Funds)
I. Personnel
A. Salaries & Wages $ $
B. Fringe Benefits $ $
C. Consultants & Contract Services $ $
PERSONNEL SUB-TOTAL $ $
8 II. Non-Personnel
A. Space Costs $ $
B. Rental, Lease or Purchase of
Equipment $ $
C. Consumable Supplies $ $
D. Travel $ $
E. Telephone $ $
F. Utilities $ $
G. Other Costs $ $
NON-PERSONNEL SUB-TOTAL: $ $
III. Other
A. Architectural/Engineering Design $ $
B. Acquisition of Real Property $ $
C. Construction/Rehabilitation $ $
D. Indirect Costs $ $
E. Other $ $
OTHER SUB-TOTAL: $ $
GRAND TOTAL: $ $
B. Leveraging
List other funding sources and amounts (commitments or applications) which will assist in the implementation of this activity. Current and pending evidence of leveraging commitments/applications must be submitted with application. (Attach) Federal:
State/Local:
Private:
Fees:
Donations:
Other:
9 C. What type of long-term financial commitment is there to the proposal? Describe how you plan to continue the work (project) after the CDBG funds are expended? D. Provide a summary by line item of your organization’s previous year’s income and expense statement. (Attach)
E. Does this project benefit residents of more than one community or jurisdiction, have requests been submitted to those other jurisdictions? Yes No
If yes, identify sources and indicate outcome.
If no, please explain.
F. Was this project or activity previously funded with CDBG? Yes No If yes, when?
Is this activity a continuation of a previously funded (CDBG) project? Yes No If yes, explain:
VIII. MANAGEMENT CAPACITY
A. Describe your organization’s experience in managing and operating project or activities funded with CDBG or other Federal funds.
10 B. Management Systems
Does your organization have written and adopted management systems (i.e., policies and procedures) including personnel, procurement, property management, record keeping, financial management, etc.?
C. Capacity
Please provide the names and qualifications of the person(s) that will be primarily responsible for the implementation and completion of the proposed project.
11 IX. APPLICATION CERTIFICATION
Undersigned hereby certifies that (check box after reading each statement and digitally sign the document):
1. The information contained in the project application is complete and accurate. ___ __
2. The applicant agrees to comply with all Federal and County policies and requirements imposed upon the project or activity funded by the CDBG program. ___ __
3. The applicant acknowledges that the Federal assistance made available through the CDBG program funding will not be used to substantially reduce prior levels of local, (NON-CDBG) financial support for community development activities. ___ __
4. The applicant fully understands that any facility built or equipment purchased with CDBG funds shall be maintained and/or operated for the approved use throughout its economic life, pursuant to CDBG regulation. ___ __
5. If CDBG funds are approved, the applicant acknowledges that sufficient non-CDBG funds are available or will be available to complete the project as described within a reasonable timeframe. ___ __
6. On behalf of the applying organization, I have obtained authorization to submit this application for CDBG funding. (DOCUMENTATION ATTACHED Minute Action and/or written Board Approval signed by the Board President) ___ __
DATE: ____________________
Signature: ___________________________________________
Print Name/Title
Authorized Representative: ____________________________________________
12 CHECK-LIST:
The following required documents listed below have been attached. Any missing documentation to the application will be cause for the application to be reviewed as INELIGIBLE.
Yes No ATTACHMENT
1. Members/Board of Directors
2. Articles of Incorporation and Bylaws
3. Project Activity Map
4. Project Benefit, Category B, Low Mod Area Maps (Attach if applicable)
5. Leveraging (Current evidence of commitment)
6. Income and Expense Statement
7. Management Capacity (Detailed organizational chart)
8. Board Written Authorization approving submission of application
City Council
Meetings
First and third Monday of each month at 6:00 p.m.
Norton Younglove Senior Center, 908 Park Avenue, Calimesa, CA 92320
Council meetings are open public meetings. Council organization and procedure during meetings is in accordance with the Council's Rules of Procedure. If a regular meeting falls on a holiday, the meeting shall be conducted the following Tuesday.
Brown Act Regulations - Council's Rules of
Procedure
The primary intent of California’s open meeting law, the Brown Act, is that the people’s business be conducted openly and
transparently, after providing an opportunity to the largest number of members of the public to directly address the council before the council takes action on any item. The Brown Act mandates that city councils adopt rules for “the conduct of business” and requires that agendas for regular meetings provide “an opportunity for members of the public to directly address the legislative body on any item of interest to the public,” including agenda items before or during the legislative body’s consideration of the item that is within the subject matter jurisdiction of the legislative body.
The Brown Act provides that city councils “may adopt reasonable regulations to ensure the intent” of the Brown Act is carried out.
Pursuant to the Brown Act, Calimesa Municipal Code Section
2.10.060 provides that the Calimesa City Council may, from time to time, adopt by resolution rules of procedure for the conduct of meetings. The rules of procedure, as amended by the City Council, provide an opportunity for members of the public to directly address the City Council on any item on the agenda before consideration of the item, in full compliance with the Brown Act, at a reasonable
time. Periodically, the Calimesa City Council reviews and amends its rules of procedure to facilitate the efficient and transparent conduct of the City’s business at a reasonable hour.
Council's Rules of Procedure(PDF)
Agendas & Minutes
Agenda Packets and Minutes are available to view in our Agenda Center.
Agenda packets are posted online on Thursday prior to the City Council meeting. The minutes will be posted online once they have been approved by the Council and the Successor Agency to the Calimesa Redevelopment Agency.
Any public writings distributed by the City to at least a majority of the Council Members regarding any item on this regular meeting agenda will be made available at the public counter at City Hall located at:
908 Park Avenue
Calimesa, CA 92320
The agendas are posted at the Calimesa Library, Norton Younglove Senior Center, and City Hall. Access prior years minutes and packets for the Council and CSA by contacting the City Clerk's Office at 909-795-9801.
Council Members
William "Bill"
Davis
Mayor
Email Mayor Davis
Linda Molina
Council Member
Email Council
Member Molina
Wendy Hewitt
Mayor Pro Tem
Email Mayor Pro Tem
Hewitt
Phone: (909) 795-
9801
More Information
Phone: (909) 795-
9801
More Information
Phone: (909) 795-
9801
More Information
Jeff Cervantez
Council Member
Email Council
Member Cervantez
Phone: (909) 795-
9801
More Information
John Manly
Council Member
Email Council
Member Manly
Phone: (909) 795-
9801
More Information
About the Council
The City of Calimesa was incorporated on December 1, 1990 and is a "General Law" City and is governed by a Council-Manager form of government. The five-member City Council is directly elected to staggered, four-year terms. The city is not comprised of districts or wards and the Council members are therefore elected on an "atlarge" basis and the Mayor is elected annually by a vote of the Council. The Council is responsible for policy development and appoints a City Manager to oversee policy implementation and overall City operations.
Successor Agency to the Redevelopment Agency
The City Council also serves as the Successor Agency to the Redevelopment Agency Board of Directors and the City Manager serves as the Executive Director. The Chairperson and Vice-Chair of the Agency are elected by a vote of its members. Successor Agency to the Redevelopment Agency Agendas/Minutes are
included on the City Council Agendas/Minutes webpage.
Council Legislation
Ordinance: An Ordinance is a law enacted by the City Council under powers delegated to it by State laws. Ordinances are the laws of a municipality and generally pertain to land use changes, building guidelines, noise limitations and the like. An ordinance is introduced at one meeting and then considered for passage at a second meeting of the City Council. It becomes effective 30 days after final passage. An ordinance can be repealed or amended by a subsequent ordinance and is
subject to referendum by the electorate. It is the most binding form of action taken by the Council.
Resolution: A resolution may be passed expressing the policy of the City Council or directing certain types of procedural or administrative actions. They are generally used for approving agreements, procedures or fund appropriations. It requires only one reading and may be changed by a subsequent resolution.
Motion: A motion requires majority council approval for a procedural or administrative action. Motions are usually used for disposition of business items on the agenda. When the City Council is not prepared to take definite action or when further study or information is needed, the City Council may refer the matter to staff, and advisory body, or a citizens' group for study or report.
CITY OF CALIMESA
CALIMESA LIBRARY
CITY OF CALIMESA
CALIMESA LIBRARY
VICINITY MAP
CONSTRUCTION NOTES:
#Item Description Quantity /Unit of Measure
CALIMESA BLVD.
PROJECT LOCATION
City of Calimesa
Organizational Structure
FY 2020-21
Administrative
Assistant I
City Manager
Deputy City Manager/
City Clerk/HR
Public Safety Community Development
Planning Manager Public Works*
Director
Code
Enforcement*
Associate Planner
Sr. Administrative
Assistant
Maintenance Supervisor
City Engineer*
Lead Maintenance
Worker
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Calimesa Library Facility Evaluation
Prepared by Alyson Hamlin, Branch Manager
Winter 2019/2020
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Calimesa Library Facility Evaluation
Table of Contents
Introduction 3
SWOT Report (Strengths, Weaknesses, Opportunities, & Threats) 4 Methodology 4
Summary of Findings 5
Evaluation of Existing Facility 6
Methodology 6
Library Commission Recommendations 9
Appendix A: Photos 11
Appendix B: Floorplan Changes Over Time 13
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Introduction:
Library Mission Statement: Calimesa Library provides a gathering place to bring residents together and enrich people’s lives by promoting literacy and lifelong learning, while creating community connections.
Library Vision Statement: Calimesa Library embraces our rich heritage and the possibilities of our future by providing informational, educational, and social opportunities for people of all ages.
Size of building and allotted staff: The Calimesa Library is a 2,520 square foot building located at 974 Calimesa Blvd, Calimesa, CA 92320. The library employs an experienced staff of five people: 1 Manager and 4 Library Associate II employees, including one Youth Services Coordinator. Allotted employee hours are 25 hours/wk, 20 hours/week (Youth Services Coordinator), 19 hours/week, and 19 hours/week.
Scope of Programming: The Calimesa Library provides extensive programming, which is made possible not only through the hard work of it knowledgeable employees, but through the dedication of several volunteers.
Recurrent Programs include:
Baby Storytime, Preschool Storytime, STEAM (Science, Technology, Engineering, Arts, and Math), Open Book Club, Adult Craft Night, Knitting & Crochet Club, Adult Card Making Class. On top of weekly and monthly recurrent programming, the library implements an extensive Summer Reading Program, with activities and awards for every age group. Since 2017, the library has partnered with the City of Calimesa to support YCJUSD’s Summer Lunch at 4th Street Park.
In spring 2019 our library completed the following SWOT analysis to help determine the Strengths, Weaknesses, Opportunities, and Threats to the Calimesa Library. While there are many things that the library does well, the staff at Calimesa Library firmly believes in maintaining a growth mindset. To that end, a SWOT analysis was conducted to determine areas for improvement and growth.
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SWOT Report (Strengths, Weaknesses, Opportunities, & Threats) Methodology:
Over a period of 90 days in spring 2019, the library was analyzed for its Strengths, Weaknesses, Opportunities, and Threats. The Branch manager analyzed several aspects of the library, from programming to circulation and collection management, to customer service. Next, library staff convened to offer their input regarding each of the SWOT categories. After that, a public forum was held where community members were free to give feedback regarding the library’s Strengths, Weaknesses, Opportunities, and Threats. The Branch Manager then analyzed notes from all three steps, giving special attention to commonly occurring themes. The SWOT analysis in this report reflects the consolidation and refinement of the information that was gathered.
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Summary of Findings:
Helpful to Calimesa Library Harmful to Calimesa Library Internal Forces
(Within the library)
Strengths
• Community Relationships
• Loyal patron base
• Customer Service
• Knowledgeable, friendly staff
• Connection to vast resources
through System/Consortium
• Supportive Library
Commission/Generous Budget
• Many programs for all age
groups
• Dedicated volunteer program
providers
• 8 public PCs
• Free Wi-Fi
Weaknesses
• Poor Signage (interior and
exterior)
• No Computer classes
• Limited staff time for
- Program prep
- Professional development
- Offsite outreach
• Not enough targeted teen
marketing
• Lack of volunteers
• Lack of program
prep/professional development
time
• Small building
• No community/quiet room
External Forces
(Outside the library)
Opportunities
• Procure new signage (interior
and exterior)
• Expand eNewsletter subscriber
base
• More outreach to Latinx
community
• Offer computer classes/tech
help
• Expand parking
• Expand storage
• $1000 from EDA for SRP
• $ from EDA for Volunteer
Appreciation
• Improve outreach to schools
• Revamp volunteer program and
expand community partnerships
• Lunch at the Library Grants
(Pop up programs in Park)
• Additional staff hours provided
for Head Start and Lunch in
Park
Threats
• Poor external signage
• Low eCommerce capabilities
(credit card use not available at
front desk or printer/copier
station)
• Competing with other
extracurriculars for families’
attention (especially during
school year)
• Non-patrons unaware of library
and/or its offerings
• Aging/Bedroom community
(slow growth rates)
• Small size of building leads
people to assume lack of
resources
• Circulation trending toward
DVDs over books
• Competition with streaming
services
• Competition with other local
libraries
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Evaluation of Existing Facility:
Methodology:
Staff evaluated the existing library structure’s suitability in meeting Calimesa’s needs using American Library Association (ALA) and American Planning Association (APA) standards.
From ALA Library Fact Sheet 11:
Building new libraries, additions, and even remodeling can be a daunting task, and one that most librarians do not undertake frequently. This fact sheet provides references to the tools, resources, and advice to help you manage your library building project, whether large or small. Although this list has been segmented by types of libraries, materials listed for one type may have useful information for planning other types of buildings.
Not all libraries are standalone buildings, or have the same internal features. A web search will turn up libraries that have been co-located in apartment buildings, grocery stores, senior centers, shopping malls, arts centers, and museums. Some libraries have coffee shops or theaters as well.
Please note that ALA no longer sets quantitative standards for public libraries, such as a library building with a recommended number of square feet based on population size. Such standards were last published by ALA in the 1970s. (Retrieved from http://libguides.ala.org/library-construction).
From PLA’s Planning the Public Library:
Planning the Public Library
In addition to an awareness of existing shortages, planning for library facilities requires an evaluation of future needs. These needs will continue to rise at an accelerated pace.
The general population growth is perhaps the most obvious influencing factor, but there are others as important. The proportion of younger people in the total population is continually increasing, and is also the largest group of library users, taking between 50 and 60 per cent of the books circulated by the average library.3 Similarly, the rising ratio
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of retired people with both time and inclination to use library facilities will increase demand for services. Other important factors are the generally higher level of educational achievement and increasing leisure time. Finally, concerted efforts on the part of the librarian to reach a large segment of the public which is now classified among the non-users will have a major influence in determining future public library needs.
Building Size
An evaluation of building size and condition is necessary to determine whether each structure can provide necessary services. The standards for building size are generally expressed in terms of square feet per capita. The Experience Formulas for Library Size and Costs, suggest minimum sizes ranging from 0.3 sq. ft. per capita for libraries serving 50,000 people or more to 0.6 or 0.65 for those serving 10,000 to 35,000 people, Another method of evaluation is consulting with the librarian. In order to analyze librarians' opinions concerning adequacy of building size, the Cuyahoga County study developed a set of six questions which described adequacy of library space during peak hours. The librarians were asked to give a numerical rating between 1 and 3 for the following situations: (1) lack of table space or sitting space; (2) insufficient browsing space around shelves; (3) congested internal movement; (4) insufficient space around the card catalog; (5) overflow of children into adult areas; (6) high noise level.
A score of 3 was given to indicate that conditions were satisfactory; 2 meant that conditions were adequate; and 1 meant that conditions were inadequate.
Although it was recognized that this evaluation was based exclusively on opinions and that crowding, where it existed, could be caused by poor design as well as by size, this measurement was considered more accurate than population figures and square feet per capita. Local standards for building size were based, not on population, but on a ratio of number of registrants to available space prevailing in those libraries which were considered to be ample in size. The maximum and minimum standard for library gross floor area was established in this case at 1.4 sq. ft. per registrant to 2.6 sq. ft. per registrant.
Another consideration in determining building size for new construction is the minimum area considered necessary to provide adequate services and justify the cost of construction. Wheeler and Goldhor suggest a minimum floor area of 8,000 sq. ft. When projected use of facilities indicates that 8,000 sq. ft. would be too large for actual needs alternative service such as bookmobiles should be considered.15 Total Main Floor Space
With the greater emphasis on interior convenience and comfort, there is also greater emphasis on placing the library areas used by the public for reading and browsing on the first floor at sidewalk level.
Meeting Room Space
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Space that is needed for auditorium and conference rooms depends on actual library programs. It should be recognized, however, that with the expanding concept of service, space should be made available for such activities as group meetings, lectures, and film showings.
Parking Facilities
The need for parking facilities should be determined in each individual case. Although the standard usually suggested is one square foot of parking for every square foot of building area, accessibility by walking and car should be taken into consideration.
The information obtained in identifying the "service areas," including the mode of transportation used by library patrons, can be used to determine need for parking facilities. In addition, it is necessary to observe the number of people who park at the library each hour to determine the maximum parking needs. Employee parking must also be provided, and, generally, two parking spaces for every three employees are considered necessary.
https://www.planning.org/pas/reports/report241.htm
Using the above methods, library staff evaluated the existing facilities. The results are included below, beginning with the raw data used for calculations:
Patron Accounts at Calimesa Library: 3119
Patrons Transacting at Calimesa Library (registered in different places as well as Calimesa): 3314
Per Capita Calculation, using population of 15,000 people:
15000 x .6 = 9000 sq ft
15000 x .65 = 9750 sq ft
Calculation using existing patron numbers:
3119 x 1.4 = 4366.6 sq ft
3314 x 2.6 = 8616.4 sq ft
Target size: 4400 – 9000 sq ft
Current Size: 2520 sq ft
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Alternate Rating Method: Satisfactory Adequate Inadequate Lack of table space/sitting space: 1 2 3
Insufficient browsing space around shelves: 1 2 3
Congested internal movement: 1 2 3
Insufficient space around the computer catalog: 1 2 3
Overflow of children into adult areas: 1 2 3
High noise level: 1 2 3
Note: Further evidence of those categories receiving a “3” can be seen in photos in Appendix A.
Library Commission Recommendations:
The library has experienced quite a lot of growth in programming and community participation over the past 5 years. Staff has made modifications over that time in order to maximize the space. These modifications include acquiring new furniture that fits more efficiently in the space, and weeding the collection for outdated/underused materials to eliminate poorly placed shelving units and open up the space for more seating. The staff has rearranged the furniture multiple times as well. (For detailed view of modifications over time, see Appendix B).
Library staff has now reached a point where all shelving and floor space is being used in the most efficient way possible, and the only other option to create more floor space for programs is to eliminate much-needed shelving. Conversely, in order to create more room for shelving, the only recourse is to eliminate much needed seating. Therefore, it is the recommendation of the Library Commission that the City Council explore options for expanding the current library space, particularly the addition of a community room. The addition of another space to be used as a community room would enable additional storage for staff, free up
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more space for wall shelving in the existing location, and allow for quiet study areas while maintaining the robust program schedule that the library currently provides for the community. The Library Commission also recommends that City Council hold community workshops to receive feedback from Calimesa residents regarding updates to the existing facility.
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Appendix A: Photos
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Appendix B: Previous Floorplans
2015
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2018
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Spring 2019
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Fall 2019
ATTACHMENT 7B
NOTICE OF FUNDING AVAILABILITY
(NOFA)
3403 Tenth Street, Suite 300 | Riverside, CA 92501 | FAX: (951) 374-3098 | Phone: (951) 955-1161 TO: Bonnie Johnson, City Manager
City of Calimesa
FROM: Juan Garcia, HWS Development Manager – CDBG/ESG Programs DATE: August 23, 2023
RE: Notice of Funding Availability (NOFA) for the County of Riverside’s 2024-2025 Urban County Community Development Block Grant Program
Attached please find a copy of the Notice of Funding Availability (NOFA) for the County of Riverside’s 2024- 2025 Urban County CDBG program for Cooperating Cities. The County opened the 2024-2025 CDBG application cycle starting August 18, 2023. In addition, the County has also begun preparing the 2024-2029 Five-Year Consolidated Plan which will include the 2024-2025 Action Plan. 2024-2025 Action Plan/Funding Cycle
Applications will be accepted from cooperating cities for both internal (city-administered projects) as well as applications from the cities’ subrecipients including non-profit organizations, special districts, or other entities.
All applications are due no later than December 15, 2023. Please see “What Cooperating Cities Must Submit to the County” at the end of this letter.
Every City must provide both a hard copy and a digital copy of their application for the 2024-2025 cycle. The NOFA (Notice of Funding Availability) includes an attached copy of the approved 2024-2025 CDBG Application.
If needed, a fillable PDF version of the CDBG application can be obtained by making a request. Alongside the original proposal, one additional copy of each proposal must be submitted to the County. Additionally, a resolution or minute order from your Council, approving the projects and authorizing the submission of the applications, must accompany the proposals.
Your city’s 2024-2025 CDBG allocation is estimated to be $32,722; this allocation is based upon updated information from HUD and is subject to change and is also subject to be reduced in the repayment amount of $11,927, as a result from the advancement of the City’s FY 2021-22 final allocation for the 5.CM.01-21 Norton Younglove Senior Center ADA Improvements. Therefore, your city’s 2024-2025 CDBG allocation is estimated to be $20,795.
Each cooperating city is responsible for planning, designing, and carrying out its own CDBG application process that best meets the needs of its city. The cities can decide to fund only internal city-administered projects, external subrecipient projects, or a combination of the two. The city council will make the final funding decisions based on the city’s priority community development needs.
The County has established several minimum thresholds concerning the cooperating cities’ CDBG application process:
1. The process must be open and fair;
3403 Tenth Street, Suite 300 | Riverside, CA 92501 | FAX: (951) 374-3098 | Phone: (951) 955-1161
2. The city must publically notice (newspapers, city website, social media) the opening of the city’s 2024- 2025 CDBG application cycle and the city’s participation in the development of the County’s 2024-2029 Five-Year Consolidated Plan;
3. The notice should reference the County’s Notice of Funding Availability (NOFA) for the County of Riverside’s 2024-2025 Urban County CDBG program for Cooperating Cities;
4. The notice should be published in both English and Spanish if a significant portion of the city’s residents speak Spanish – if there is a significant number of residents that predominantly speak another language, the city should publish their notice in that language as well;
5. The notice must provide direction as to where applications can be obtained, when the applications are due, and other application submittal instructions;
6. The notice will identify any funding priorities established by the city (e.g., senior programs, street improvements, youth programs, etc.);
7. The city must allow at least 30 days for the application process;
8. The public notice must provide information on the application review and approval process (e.g., staff review/council approval; staff review/committee review/ council approval, etc.);
9. The public notice must identify a contact person for questions and assistance; and
10. The notice must contain the date, time, and location where the city council will make the final 2024-2025 CDBG funding determinations and the city’s community development priorities for their CDBG funding for the 2024-2029 Five Year Consolidated Plan.
2024-2029 Five-Year Consolidated Plan Process
An integral component of the Consolidated Plan is the participation of the cooperating cities in assessing their community development needs (these include affordable housing, social services, economic development, community facilities, etc.); reviewing available resources; and establishing priority projects and activities using HUD-CPD funding (includes CDBG, HOME, and ESG) over the next five years. This is typically accomplished through needs assessment surveys, public hearings, workshops, Town Halls/community meetings, and other methods that best serve the city’s residents, businesses, and other stakeholders.
Each cooperating city must design, plan, and implement its own outreach and assessment process. However, the methods used by the cooperating cities must be inclusive, accessible, effective, and documented.
For the unincorporated communities, the County utilizes a comprehensive community needs assessment (available online or paper copy) together with a series of community meetings. Furthermore, the County also requests detailed strategic plans, studies, needs assessments, and other documentation from non-profit and government agencies to incorporate into the Consolidated Plan. The County recommends that all cooperating cities utilize a combination of comprehensive needs assessment surveys and public forums. The cities can use the County’s online survey, available at the link below, as well as the paper version available upon request:
ENGLISH:
https://forms.office.com/g/9ZdR5Av3TD
SPANISH:
https://forms.office.com/g/ZGnpyVXazU
Please Note: The County’s online survey requires a zip code from the respondent. The County can provide each city with the results of surveys from their city. The city will have to compile all the data from paper surveys and the public meetings.
3403 Tenth Street, Suite 300 | Riverside, CA 92501 | FAX: (951) 374-3098 | Phone: (951) 955-1161 The cities can customize their surveys to meet their specific needs. The public forum can be a regular council meeting or special community meeting.
What Cooperating Cities Must Submit to the County:
Please see the attached Required Submittals from Cooperating Cities for a listing of items and documentation that must be submitted by each cooperating city for the 2024-2025 CDBG cycle and the 2024-2029 Consolidated Plan.
For additional information regarding the 2024-2025 CDBG application cycle or the 2024-2029 Consolidated Plan, please contact the CDBG Program Manager assigned to your city or:
Susana Orozco CDBG Program Manager
3403 10th Street, Suite 300
Riverside, CA 92501
(951) 955-5933
(951) 343-5609 FAX
[email protected]
We look forward to receiving your city’s applications for the 2024-2025 Cooperating Cities CDBG program, and we thank you for your city’s participation in the County’s CDBG program.
3403 Tenth Street, Suite 300 | Riverside, CA 92501 | FAX: (951) 374-3098 | Phone: (951) 955-1161 What Cooperating Cities Must Submit to the County
1. 2024-2025 CDBG applications as required in the attached Notice of Funding Availability (NOFA);
2. Summary of the City’s 2024-2029 Consolidated Plan community needs assessment and outreach efforts (public notices, social media, community meetings, surveys distributed/collected, etc.); and
3. The City’s five-year HUD-CPD funding priorities approved and adopted by the City Council (include staff report, minute order)
Examples: Senior and youth programs
Street and sidewalk improvements along Main Street
After School Programs
Housing Rehabilitation
Water, sewer, and fire hydrant improvements
Senior Center improvements
ADA upgrades
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COUNTY OF RIVERSIDE
NOTICE OF FUNDING AVAILABILITY
2024-2025 URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
FOR COOPERATING CITIES
I. Program Description:
The County of Riverside has opened the CDBG application period for the FY 2024-2025 Community Development Block Grant (CDBG) cycle for Cooperating Cities and their subrecipients within the County’s Urban County CDBG program.
CDBG is a flexible program that provides communities with resources to address a wide range of unique community development needs. Beginning in 1974, the CDBG program is one of the longest continuously run programs at HUD. The CDBG entitlement program allocates annual grants to larger cities and urban counties to develop viable communities by providing decent housing, a suitable living environment, and opportunities to expand economic opportunities, principally for low- and moderate-income persons.
The CDBG program is a federally funded program administered through the U.S. Department of Housing and Urban Development (HUD). As an Urban County in the Entitlement CDBG program, the County receives an annual formula allocation of CDBG funds from HUD. HUD determines the amount of each grant by using a formula comprised of several measures of community need, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relation to other metropolitan areas.
The program works to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses. CDBG is an important tool for helping local governments tackle serious challenges facing their communities. The CDBG program has made a difference in the lives of millions of people and their communities across the Nation.
CDBG was authorized under the Housing and Community Development Act of 1974, as amended, and is listed under the Catalog of Federal Domestic Assistance (CFDA) as 14.218. Applicable CDBG regulations can be found in 24 CFR Part 570 and 24 CFR Part 91.
CDBG funding has been used by the County, its cooperating cities, and other subrecipients for a wide variety of community, economic, and social development activities. Activities include public facilities such as fire stations, parks, community centers, senior centers, homeless shelters, health clinics, water and sewer improvements, and street and sidewalk improvements. CDBG also provides public service activities such as childcare, health care, after-school, programs, senior programs, food and clothing distribution, job training, recreation, and many more.
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All activities funded with the County’s CDBG funds must:
1. serve persons or communities within the County’s Urban County area;
2. be an eligible activity under CDBG regulations (24 CFR Part 570.201); and
3. meet a National Objective of the CDBG program (24 CFR Part 570.208).
Most activities meet a National Objective by benefitting low-income persons or low-income communities.
The County’s Urban County CDBG Program includes all of the unincorporated areas of Riverside County as well as the cooperating cities of Banning, Beaumont, Blythe, Calimesa, Canyon Lake, Coachella, Desert Hot Springs, Eastvale, La Quinta, Norco, Rancho Mirage, San Jacinto, and Wildomar. The cities of Lake Elsinore and Murrieta participate in the County’s Urban County program as a Metro City. For the purpose of this NOFA, Lake Elsinore and Murrieta are Cooperating Cities.
CDBG Award Information:
Subject to Federal appropriations, the County anticipates receiving approximately $7,500,000 in CDBG funds for the FY 2024-2025 program. The amount of CDBG funding to be allocated to the Cooperating Cities is expected to be approximately $2,400,000. The actual amount of the County’s allocation is determined by final funding appropriations from Congress and HUD’s CDBG allocation formula. Funds from this 2024-2025 CDBG application cycle will be available to the Cooperating Cities and their subrecipients no earlier than July 1, 2024.
Depending upon the type of activity to be funded, a successful cooperating cities subrecipient will have approximately ten (10) months to complete, expend, and drawdown their CDBG award for a public service activity, and approximately eighteen (18) months for a public facility or other CDBG activities.
All CDBG awards made by the County to the cooperating cities will be in the form of a grant. The cooperating cities must execute a Supplemental Agreement with the County each CDBG program year.
Non-city subrecipients (non-profits, special districts, etc.) receiving CDBG funds from a cooperating city will be required to enter into a County-approved subrecipient agreement with the awarding city. A subrecipient template can be requested from HWS.
II. Eligibility Information:
Eligible Applicants:
The County of Riverside will only accept CDBG applications from the cooperating cities listed above. The cooperating cities may award their CDBG funds to the following entities and organizations:
1. City Departments or Agencies;
2. Non-Profit organizations subject to 26 U.S.C. 501 (c)(3) of the tax code; and
3. Governmental agencies including the County, other Cities, Special Districts, and Tribes. *Individuals cannot apply for County CDBG funding.
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Non-profit organizations will be required to submit documentation as part of their cooperating city CDBG application including incorporation, bylaws, board of directors, and tax-exempt status.
Cost Sharing and Leveraging:
The cooperating cities and their subrecipient applicants are encouraged to utilize the greatest amount of leveraging possible to improve the competitiveness of their proposals. This matching contribution, referred to as “leveraging”, can include other Federal, State, local, or private funding; donations; “in-kind” contributions; and volunteer hours. Leveraging used to match previous CDBG grants cannot be used.
However, for the construction or rehabilitation of public facilities, the County may reject proposals where CDBG funding comprises less than 35% of the total project cost due to costs associated with compliance with CDBG and other Federal regulations.
Real Property Acquisition – Displacement of Tenants:
In order to comply with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, applicants considering the submittal of a CDBG application for real property acquisition and/or the displacement of tenants must contact HWS prior to the submittal of any application.
Compliance with Laws and Regulations
The successful applicants will be required to comply with all applicable federal, state, and local laws, regulations, and ordinances. Pursuant to an executed subrecipient agreement, the applicant will certify that it will adhere to and comply with the laws and regulations found in Attachment 1 as they may be applicable to a subrecipient of funds granted pursuant to the Housing and Community Development Act of 1974, as amended.
In addition, all CDBG-funded projects using CDBG for facility construction, renovation, or improvements will be considered as “Public Works,” and therefore, subject to applicable State of California Department of Industrial Relations requirements.
III. Application and Submission Information
Application Cycle for the 2024-2025 Program Year
The County will begin accepting applications from the cooperating cities and cities subrecipients for the 2024-2025 CDBG cycle starting August 18, 2023. A copy of the County-approved CDBG application is attached to this NOFA. An electronic WORD version of the CDBG application is available upon request.
ALL APPLICATIONS from the cooperating cities must be submitted using the County approved, paper application. The County is not using the Fillable Applicationsfor the cooperating city CDBG program. All CDBG applications from the cooperating cities must be submitted to HWS no later than 5:00 PM PST on Friday, December 15, 2023. You must submit two (2) copies of each application, one original and one copy.
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Questions, Technical Assistance, and Applications
For information or questions regarding the County’s CDBG program, the 2024-2025 CDBG application cycle, or for questions or assistance with the application, please contact Susana Orozco at [email protected] or 951-955-5933 or Nicholas Fonosch at [email protected] or 951.955.5936.
Individuals with hearing or speech disabilities may contact the CDBG program staff by utilizing the California Relay Service (711).
Application Instructions and Organization of Summitted Documents Cooperating cities and cities subrecipients must submit two (2) original hard copies of the application and documents (e.g., bylaws, authorizations, backup information, etc.) necessary to apply, along with a USB flash drive with the required backup for evaluation of application documents. County HWS will not accept submissions of application documents by email or over the Internet.
When compiling the flash drive please organize the folders, accordingly, please refer to the visual guide (below):
The CDBG application to be used by a Cooperating City and cities subrecipients for each activity consists of nine (9) primary sections:
1. General Information
2. Organizational History and Documents (applicable only for non-profit organizations)
3. Project Activity
4. Project Narrative
5. Project Benefit
6. National Objective Compliance
7. Financial Information (Budget Leveraging/Commitment)
8. Management Capacity
9. Application Certification and Authorization
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The cooperating cities and subrecipients are limited to the space available for each required response in the application. Cooperating cities and subrecipients may attach additional supporting documentation, including third-party verifications, and other information if desired.
Please Note: The cooperating city applications must be accompanied by a minute order, resolution, or other official authorization to submit the application.
Additional Information:
The cooperating cities and/or their subrecipients may be required to submit additional documentation to the County, prior to the receipt of their CDBG grant award. This documentation may include evidence or documentation related to:
Liability Insurance Workmen’s Compensation Insurance
Flood Insurance Other documentation for NEPA and CEQA environmental reviews 501 (c)(3) Status Incorporation Documents
Pursuant to Federal regulations, all cooperating cities and their subrecipients submitting applications for CDBG funds must comply with the following requirements prior to submitting their CDBG application to the County for the 2024-2025 program year:
1. Be registered in the System for Award Management (SAM) www.sam.gov system;
2. Provide a valid UEI number in the application; and
3. Must maintain an active SAM registration, with current information, during the performance period of the CDBG grant.
The County and the Cooperating Cities will not make any CDBG grant awards to any organization or government entity that fails to comply with the SAM and UEI requirements.
System for Award Management (SAM):
The System for Award Management (SAM) is combining Federal procurement systems and the Catalog of Federal Domestic Assistance into one new system. This consolidation is being done in phases. The first phase of SAM includes the functionality of the following systems:
1. Central Contractor Registry (CCR)
2. Federal Agency Registry
3. Excluded Parties List (EPLS)
4. Online Representations and Certifications Application How does SAM benefit organizations? The overarching benefits of SAM include streamlined and integrated processes, elimination of data redundancies, and reduced costs while providing improved capability.
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Unique Entity Identifier (UEI):
The Federal government requires all applicants for Federal grants to have a UEI number. The Federal government uses the UEI number to better identify related organizations that are receiving funding under Federal grants and to provide consistent name and address data for electronic grant application systems.
If you do not already have a UEI number, visit www.SAM.gov (https://sam.gov/content/entityregistration) Intergovernmental Review
Applications submitted under the County’s Urban County CDBG program are not subject to intergovernmental review pursuant to Executive Order 12372.
Application Submission Due Date and Time
ALL applications MUST be completely submitted no later than 5:00 PM (PST) on Friday, December 15, 2023.
All applications must be delivered to the County by either method listed below:
1. Postmarked no later than Friday, December 15, 2023, and addressed to:
Riverside County HWS
ATTN: CDBG Program
P.O. Box 1528
Riverside, CA 92502
2. Delivered to the County, no later than Friday, December 15, 2023, 5:00 PM (PST) at the following address:
Riverside County HWS
ATTN: CDBG Program
3403 10th. St. Suite 300
Riverside, CA 92501
CDBG applications for the 2024-2025 program year that are received after the deadline date and time will not be accepted.
Cooperating Cities submitting their applications in person or through a third-party courier can request a receipt at the time of delivery.
Other Submission Requirements
Applicants can request CDBG funding from the County and the Cooperating Cities for any eligible CDBG activity listed under 24 CFR Part 570.201-570.204 including real property acquisition, code enforcement, construction, and other activities.
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APPLICATION REVIEW INFORMATION
The County of Riverside uses a Priority Evaluation and Project Rating System for all CDBG proposals. As part of the review and evaluation process, EDA staff will review and evaluate all proposals utilizing the following checklist:
I. ACTIVITY EVALUATION:
Does the activity address an established need? (Identified in the 2019-2024 Consolidated Plan):
Is the proposed activity eligible (24 CFR 570.201) under the CDBG program? Does the proposed activity meet one of the three broad National Objectives? • Principally benefit low and moderate-income persons;
• Prevents or eliminates slum and blight; or
• Addresses an urgent need or problem in the community.
Has the applicant provided sufficient explanation concerning their ability to adequately and accurately document the benefit to low- and moderate-income persons? Can the project be implemented and completed within a reasonable amount of time (Public Service activities 1 year / all other activities 2 years maximum)? Has the applicant identified all the major tasks or components that will be required in carrying out the activity? Are there any potential issues or concerns? Has the applicant provided a reasonable estimate of the resources necessary for each component of the project, and has it developed a realistic budget that reflects these resources? Are other sources of funds (leveraging) committed to this project? Is the proposed budget for the CDBG-funded activity separate from other activities undertaken by the applicant?
II. APPLICANT (ORGANIZATIONAL) EVALUATION
Has the applicant ever undertaken the proposed activity before? What were the results? Does the applicant have experience with CDBG or other Federal programs? Has the applicant conducted a Single Audit (formerly OMB Circular A-133) within the last two years? Do the applicant and prospective staff understand the additional requirements associated with Federal funding?
Does the applicant have qualified staff for all the necessary functions associated with the proposed activity? Is there adequate staff time available? Does the applicant possess adequate administrative structures, management systems, and policies and procedures?
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Does the applicant possess adequate financial stability? Will the applicant be overly dependent upon CDBG funding?
III. ELIGIBLE ACTIVITIES
The cooperating cities and their prospective subrecipients should refer to HUD regulations found in 24 CFR Sections 570.201-204 regarding eligible uses of CDBG funding.
V. APPLICATION RATING CRITERION
Each complete CDBG application is rated by CDBG program staff to determine if the proposal meets the minimum score rating. The County uses a 100-point rating system with six (6) rating criteria with a minimum rating score of at least 50 points. The rating criteria are:
• Quality of Project Activity (23 points)
• Quality of Project Narrative/ Proposal elements (27 points for public service/ 25 points for public facility proposals)
• Explanation of Project Benefit/National Objective (16 points) • Proposed Budget (18 points for public service/ 20 for public facility proposals • Management Capacity (14 points)
• Overall Project Eligibility and Past Performance Indicators (2 points) There are three (3) threshold sub-criteria that all applications must receive at least five (5) points each, or the proposal will not be funded:
Does the proposed program/project comply with the overall regulations, goals, and objectives of the CDBG program? The application describes how the identified need relates to the objectives of the CDBG program.
Does the proposed activity address a priority community development need as identified in the Five-Year Consolidated Plan?
Does the organization have the demonstrated capacity to successfully implement and complete the proposed activity in a timely manner?
VI. APPLICATION REVIEW AND SELECTION PROCESS
The Cooperating Cities establish their own application process and make their own CDBG funding decisions – all cooperating city applications are subject to HWS review and Board of Supervisor approval.
VII. ANTICIPATED ANNOUNCEMENT, AWARD DATE, AND NOTICE
The Board of Supervisors for the County of Riverside will make all final CDBG funding decisions for the County’s 2024-2025 CDBG allocation. This is anticipated to occur in June or July of 2024 during a regular meeting of the Board of Supervisors when the Board approves the 2024-2025 One-Year Action Plan and 2024-2029 Five-Year Consolidated Plan.
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After the approval date, the cooperating cities will be notified by mail of the Board's funding decisions.
The One Year Action Plan is then submitted to the U.S. Department of Housing and Urban Development (HUD) for review and approval.
The letter will clearly indicate the amount of their award, and that this is not a notification to proceed or to incur costs. The letter will inform the cooperating city that a supplemental agreement will be prepared and forwarded in the near future with further instructions.
VIII. POST AWARD REPORTING REQUIREMENTS
To ensure compliance with the CDBG program National Objective requirements, all cooperating cities and their subrecipients will be required to comply with the applicable CDBG reporting requirements. The type, amount, frequency, format (paper or electronic), and detail of the reporting requirements depends upon the specific use of the CDBG funds and corresponding National Objective. All specific reporting requirements will be stated in the supplemental agreement.
POINTS OF CONTACT
For information about the CDBG program or the 2024-2025 application cycle, please contact the following:
Nicholas Fonosch, Office Assistant Susana Orozco, Principal Program Manager 3403 10th St. Suite 300 3403 10th St. Suite 300
Riverside, CA 92501 Riverside, CA 92501
(951) 955-5936 (951) 955-5933
[email protected] [email protected]
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PREPARATION OF THE COUNTY OF RIVERSIDE’S
2024-2029 FIVE YEAR CONSOLIDATED PLAN
The County of Riverside has initiated the preparation of the County’s next Five-Year Consolidated Plan.
The 2024-2029 Consolidated Plan is designed to assist the County, its cooperating cities, residents, and service providers assess affordable housing and community development needs and to make data-driven, place-based investment decisions.
The consolidated planning process serves as the framework for a community-wide dialogue to identify housing and community development priorities that align and focus funding from the HUD’s CPD formula block grant programs including the: Community Development Block Grant (CDBG) Program, HOME Investment Partnerships (HOME) Program, and Emergency Solutions Grants (ESG) Program.
The Consolidated Plan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities, and specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan.
The 2024-2025 Action Plan will be the first Action Plan of the 2024-2029 Consolidated Plan. Grantees report on accomplishments and progress toward Consolidated Plan goals in the Consolidated Annual Performance and Evaluation Report (CAPER).
A primary component of the Consolidated Plan process is a comprehensive community needs assessment survey. All interested persons, organizations, and agencies are encouraged to complete the online 2024-2029 Consolidated Plan Survey. The survey is available in English or Spanish and can be accessed at:
ENGLISH:
https://forms.office.com/g/9ZdR5Av3TD
SPANISH:
https://forms.office.com/g/ZGnpyVXazU
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ATTACHMENT I
Additional Federal Requirements
Whereas, the work under this Agreement is subject to applicable Federal, State, and local laws and regulations, including but not limited to the regulations pertaining to the Community Development Block Grant (24 CFR Part 570) and the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (2 CFR 200). All contractors, sub-contractors, consultants, and subconsultants agree to comply with, and are subject to, the following Federal requirements (if applicable):
1. Equal Employment Opportunity - Compliance with Executive Order 11246 of September 24, 1965, entitled "Equal Employment Opportunity", as amended by Executive Order 11375 of October 13, 1967, and as supplemented in Department of Labor regulations (41 CFR chapter 60). The Contractor/Consultant will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. Contractor/Consultant will ensure that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. The Contractor/Consultant will take affirmative action to ensure that applicants are employed and the employees are treated during employment, without regard to their race color, religion, sex, or national origin. Such actions shall include, but are not limited to, the following: employment, up-grading, demotion, or transfer; recruitment or recruitment advertising; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor/Consultant agrees to post in a conspicuous place, available to employees and applicants for employment, notices to be provided by the County setting forth the provisions of this non-discriminating clause.
2. Copeland “Anti-Kickback” Act (18 U.S.C. 874 and 40 U.S.C. 276c: All contracts and subgrants in excess of $2,000 for construction or repair awarded by recipients and subrecipients shall include a provision for compliance with the Copeland “Anti-Kickback” Act (18 U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR part 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he is otherwise entitled. The recipient shall report all suspected or reported violations to HUD.
3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7: When required by Federal program legislation, all construction contracts awarded by the recipients and subrecipients of more than $2000 shall include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 276a to a-7) and as supplemented by Department of Labor regulations (29 CFR part 5, “Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction”). Under this Act, contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor. In addition, contractors shall be required to pay wages not less than once a week. The recipient shall place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation and the award of a contract shall be conditioned upon the acceptance of the wage determination. The recipient shall report all suspected or reported violations to HUD.
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4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327 through 333: Where applicable, all contracts awarded by recipients in excess of $2000 for construction contracts and in excess of $2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327–333), as supplemented by Department of Labor regulations (29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard workweek of 40 hours. Work in excess of the standard workweek is permissible provided that the worker is compensated at a rate of not less than 1 1/2 times the basic rate of pay for all hours worked in excess of 40 hours in the workweek. Section 107 of the Act is applicable to construction work and provides that no laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence.
5. Rights to Inventions Made Under a Contract or Agreement— Contracts or agreements for the performance of experimental, developmental, or research work shall provide for the rights of the Federal Government and the recipient in any resulting invention in accordance with 37 CFR part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by HUD.
6. Rights to Data and Copyrights – Contractors and consultants agree to comply with all applicable provisions pertaining to the use of data and copyrights pursuant to 48 CFR Part 27.4, Federal Acquisition Regulations (FAR).
7. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), as amended—Contracts and subgrants of amounts in excess of $100,000 shall contain a provision that requires the recipient to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251 et seq.). Violations shall be reported to HUD and the Regional Office of the Environmental Protection Agency (EPA).
8. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)— Contractors who apply or bid for an award of $100,000 or more shall file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier shall also disclose any lobbying with nonFederal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to-tier-up to the recipient.
9. Debarment and Suspension (E.O.s 12549 and 12689)—No contract shall be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, “Debarment and Suspension,” as set forth at 24 CFR Part 24. This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O.
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12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees.
10. Drug-Free Workplace Requirements—The Drug-Free Workplace Act of 1988 (42 U.S.C. 701) requires grantees (including individuals) of federal agencies, as a prior condition of being awarded a grant, to certify that they will provide drug-free workplaces. Each potential recipient must certify that it will comply with drug-free workplace requirements in accordance with the Act and with HUD's rules at 24 CFR Part 24, subpart F.
11. Access to Records and Records Retention: The Consultant or Contractor, and any sub-consultants or sub-contractors, shall allow all duly authorized Federal, State, and/or County officials or authorized representatives access to the work area, as well as all books, documents, materials, papers, and records of the Consultant or Contractor, and any sub-consultants or sub-contractors, that are directly pertinent to a specific program for the purpose of making audits, examinations, excerpts, and transcriptions. The Consultant or Contractor, and any sub-consultants or sub-contractors, further agree to maintain and keep such books, documents, materials, papers, and records, on a current basis, recording all transactions pertaining to this agreement in a form in accordance with generally acceptable accounting principles. All such books and records shall be retained for such periods of time as required by law, provided, however, notwithstanding any shorter periods of retention, all books, records, and supporting detail shall be retained for a period of at least four (4) years after the expiration of the term of this Agreement.
12. Federal Employee Benefit Clause: No member of or delegate to the congress of the United States, and no Resident Commissioner shall be admitted to any share or part of this agreement or to any benefit to arise from the same.
13. Energy Efficiency: Mandatory standards and policies relating to energy efficiency which are contained in the State energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94A 163, 89 Stat. 871).
14. Procurement of Recovered Materials (2 CFR 200.322.) A non-Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired by the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.
15. The Housing and Community Development Act of 1974, as amended, and the regulations issued thereto;
16. Executive Order 11063, as amended by Executive Order 12259, and implementing regulations at 24 CFR Part 107;
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17. Section 504 of the Rehabilitation Act of 1973 (PL 93-112), as amended, and implementing regulations;
18. The Age Discrimination Act of 1975 (PL 94-135), as amended, and implementing regulations;
19. The relocation requirements of Title II and the acquisition requirements of Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and the implementing regulations at 24 CFR Part 42;
20. The labor standard requirements as set forth in 24 CFR Part 570, Subpart K and HUD regulations issued to implement such requirements;
21. Executive Order 11988 relating to the evaluation of flood hazards and Executive Order 11288 relating to the prevention, control and abatement of water pollution;
22. The flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (PL 93-234);
23. Title VI of the Civil Rights Act of 1964 (PL 88-352) and implementing regulations issued at 24 CFR Part 1;
24. Title VIII of the Civil Rights Act of 1968 (PL 90-284) as amended;
25. The lead-based paint requirements of 24 CFR Part 35 issued pursuant to the Lead-based Paint Poisoning Prevention Act (42 USC 4801, et seq.).
25. The lead-based paint requirements of 24 CFR Part 35 issued pursuant to the Lead-based Paint Poisoning Prevention Act (42 USC 4801, et seq.);
26. The Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH Act), Public Law 111-22, Title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11371 et seq.), and the Housing and Community Development Act of 1974, as amended, and the regulations issued thereto;
27. Executive Orders 11625, 12432 and 12138. Consistent with HUD's responsibilities under these Orders, the SUBRECIPIENT must make efforts to encourage the use of minority and women's business enterprises in connection with ESG activities;
28. SUBRECIPIENT shall establish and maintain a procedure through which homeless individuals will be informed that use of the facilities and services is available to all on a nondiscriminatory basis;
29. SUBRECIPIENT agrees to abide by and include in any subcontracts to perform work under this Agreement, the following clause:
"During the performance of this Agreement SUBRECIPIENT and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, age (over 40) or sex. SUBRECIPIENT and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. SUBRECIPIENT and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.). The
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applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12990, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this Agreement by reference and made a part hereof as if set forth in full. SUBRECIPIENT and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement."; and
30. During the term of this Agreement, SUBRECIPIENT and its subcontractors, if any, shall not deny the benefits rendered hereunder to any person on the basis of religion, color, ethnic group identification, sex, age, or physical or mental disability.
City Council Meeting
Agenda Report
Agenda Item No. 8
SUBJECT: ADOPTION OF A CITY-WIDE CIVIL RIGHTS POLICY
MEETING DATE: December 18, 2023
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council adopt Resolution No. 2023-74, a Resolution of the City Council of the City of Calimesa, California, adopting a Civil Rights Policy.
BACKGROUND: The City of Calimesa Fire Department has been awarded an Assistance to Firefighters Grant (AFG) through the Federal Emergency Management Agency (FEMA) grant program. As part of the grant award the City must provide various documents, one of which is a Civil Rights Policy. We are therefore requesting Council approval and adoption of this Civil Rights Policy. It is imperative that the City establish certain policies to ensure that it complies with Federal civil rights laws and is committed to providing its programs and services without discrimination in accordance with Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Title IX of the Education Amendments Act of 1972, Age discrimination Ace of 1975 and the U.S. Department of Homeland Security regulation 6 C.F.R Part 19.
The City of Calimesa is committed to a work environment in which all individuals are treated with respect and dignity. Each individual has the right to work in a professional atmosphere that promotes equal employment opportunities and prohibits unlawful discriminatory practices, including harassment and has developed this policy to ensure that all its employees can work in an environment free from unlawful harassment, discrimination, and retaliation. The City of Calimesa will make every reasonable effort to ensure that all concerned are familiar with these policies and are aware that any complaint in violation of such policies will be investigated and resolved appropriately.
This Civil Rights Policy has been reviewed and found to be in compliance with applicable existing City codes and policies, as well as all applicable laws. Staff respectfully requests Council review and adoption of the Civil Rights Policy.
FISCAL IMPACT: None.
ATTACHMENTS:
Attachment A: Resolution No. 2023-74
Attachment B: Exhibits “A” Civil Rights Policy
ATTACHMENT 8A
RESOLUTION NO. 2023-74
RESOLUTION 2023-74
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALIMESA CALIFORNIA, ADOPTING A CIVIL RIGHTS
POLICY
WHEREAS, the City of Calimesa is committed to a work environment in which all individuals are treated with respect and dignity and each individual has the right to work in a professional atmosphere that promotes equal employment opportunities and prohibits unlawful discriminatory practices, including harassment; and WHEREAS, it is imperative that City establish certain policies to ensure that it complies with Federal civil rights laws and is committed to providing its programs and services without discrimination in accordance with Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Title IX of the Education Amendments Act of 1972, Age discrimination Ace of 1975 and the U.S. Department of Homeland Security regulation 6 C.F.R Part 19; and
WHEREAS, the Civil Rights Policy has been reviewed and found to be in compliance with applicable existing City codes and policies, as well as all applicable laws;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIMESA HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1: The City of Calimesa Civil Rights Policy (Exhibit A to this Resolution) is hereby approved.
PASSED, APPROVED, and ADOPTED this 18th day of December 2023. ________________________________
WILLIAM DAVIS, MAYOR
ATTEST:
_________________________________
DARLENE GERDES, CITY CLERK
ATTACHMENT 8B
CIVIL RIGHTS POLICY
(EXHIBIT A TO RESOLUTION NO. 2023-74)
Civil Rights Policy
ADOPTED DECEMBER 18, 2023 – RESOLUTION NO. 2023-74
City of Calimesa – Civil Rights Policy
OBJECTIVE
The City of Calimesa is committed to a work environment in which all individuals are treated with respect and dignity. Each individual has the right to work in a professional atmosphere that promotes equal employment opportunities and prohibits unlawful discriminatory practices, including harassment and retaliation. Therefore, the City of Calimesa expects that all conduct among persons in the office will be business-like and free of explicit bias, prejudice, and harassment.
The City of Calimesa has developed this policy to ensure that all its employees can work in an environment free from unlawful harassment, discrimination, and retaliation. The City of Calimesa will make every reasonable effort to ensure that all concerned are familiar with these policies and are aware that any complaint in violation of such policies will be promptly and thoroughly investigated and resolved appropriately.
Any employee who has questions or concerns about these policies should talk with the director of human resources or a member of the personnel practices committee.
These policies should not, and may not, be used as a basis for excluding or separating individuals of a particular gender, or any other protected characteristic, from participating in business or work-related social activities or discussions. In other words, no one should make the mistake of engaging in discrimination or exclusion to avoid allegations of harassment. The law and the policies of the City of Calimesa prohibit disparate treatment on the basis of sex or any other protected characteristic, with regard to terms, conditions, privileges, and perquisites of employment. The prohibitions against harassment, discrimination and retaliation are intended to complement and further those policies, not to form the basis of an exception to them.
EQUAL EMPLOYMENT OPPORTUNITY
It is the policy of the City of Calimesa to ensure equal employment opportunity without discrimination or harassment on the basis of race (including hairstyle/texture), color, religion (including religious dress and grooming practices), sex (including pregnancy, childbirth, and/or related conditions), sexual orientation, gender identity or expression, age, disability (both mental and physical), marital status, citizenship, national origin, genetic information, or any other characteristic protected by law. The City of Calimesa prohibits any such discrimination or harassment.
RETALIATION
The City of Calimesa encourages reporting of all perceived incidents of discrimination or harassment. It is the policy of the City of Calimesa to promptly and thoroughly investigate
City of Calimesa – Civil Rights Policy
such reports. The City of Calimesa prohibits retaliation against any individual who reports discrimination or harassment or who participates in an investigation of such reports.
SEXUAL HARASSMENT
Sexual harassment constitutes discrimination and is illegal under federal, state and local laws. For the purposes of this policy, “sexual harassment” is defined, as in the Equal Employment Opportunity Commission Guidelines, as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when, for example: a) submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment, b) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual, or c) such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile or offensive working environment.
Title VII of the Civil Rights Act of 1964 recognizes two types of sexual harassment: a) quid pro quo and b) hostile work environment. Sexual harassment may include a range of subtle and not-so-subtle behaviors and may involve individuals of the same or different gender. Depending on the circumstances, these behaviors may include unwanted sexual advances or requests for sexual favors; sexual jokes and innuendo; verbal abuse of a sexual nature; commentary about an individual’s body, sexual prowess or sexual deficiencies; leering, whistling or touching; insulting or obscene comments or gestures; display in the workplace of sexually suggestive objects or pictures; and other physical, verbal or visual conduct of a sexual nature.
HARASSMENT
Harassment on the basis of any other protected characteristic is also strictly prohibited.
Under this policy, harassment is verbal, written or physical conduct that denigrates or shows hostility or aversion toward an individual because of his or her race, color, religion (including religious dress and grooming practices), sex (including pregnancy, childbirth, and/or related conditions), sexual orientation, gender identity or expression, national origin, age, disability (both mental and physical), marital status, citizenship, genetic information, or any other characteristic protected by law, or that of his or her relatives, friends or associates, and that: a) has the purpose or effect of creating an intimidating, hostile or offensive work environment, b) has the purpose or effect of unreasonably interfering with an individual’s work performance, or c) otherwise adversely affects an individual’s employment opportunities.
Harassing conduct includes epithets, slurs or negative stereotyping; threatening, intimidating or hostile acts; denigrating jokes; and written or graphic material that
City of Calimesa – Civil Rights Policy
denigrates or shows hostility or aversion toward an individual or group that is placed on walls or elsewhere on the employer’s premises or circulated in the workplace, on company time or using company equipment by e-mail, phone (including voice messages), text messages, social networking sites or other means.
INDIVIDUALS AND CONDUCT COVERED
These policies apply to all applicants and employees, whether related to conduct engaged in by fellow employees or by someone not directly connected to The City of Calimesa (e.g., an outside vendor, consultant or customer).
Conduct prohibited by these policies is unacceptable in the workplace and in any workrelated setting outside the workplace, such as during business trips, business meetings and business-related social events.
REPORTING AN INCIDENT OF HARASSMENT, DISCRIMINATION OR RETALIATION The City of Calimesa encourages reporting of all perceived incidents of discrimination, harassment or retaliation, regardless of the offender’s identity or position. Individuals who believe that they have been the victim of such conduct should discuss their concerns with their immediate supervisor, any member of the personnel practices committee, human resources or any ombudsman. See the complaint procedure described below.
In addition, the City of Calimesa encourages individuals who believe they are being subjected to such conduct to promptly advise the offender that his or her behavior is unwelcome and to request that it be discontinued. Often this action alone will resolve the problem. The City of Calimesa recognizes, however, that an individual may not be comfortable doing so and may prefer to pursue the matter through complaint procedures.
COMPLAINT PROCEDURE
Individuals who believe they have been the victims of conduct prohibited by this policy or believe they have witnessed such conduct should discuss their concerns with their immediate supervisor, human resources, any member of the personnel practices committee or any ombudsman.
The City of Calimesa encourages the prompt reporting of complaints or concerns so that rapid and constructive action can be taken before relationships become irreparably strained. Therefore, while no fixed reporting period has been established, early reporting and intervention have proven to be the most effective method of resolving actual and/or perceived incidents of harassment.
Any reported allegations of harassment, discrimination or retaliation will be investigated promptly and thoroughly. The investigation may include individual interviews with the
City of Calimesa – Civil Rights Policy
parties involved and, where necessary, with individuals who may have observed the alleged conduct or may have other relevant knowledge.
The City of Calimesa will maintain confidentiality throughout the investigatory process to the extent consistent with adequate investigation and appropriate corrective action.
Retaliation against an individual for reporting harassment or discrimination or for participating in an investigation of a claim of harassment or discrimination is a serious violation of this policy and, like harassment or discrimination itself, will be subject to disciplinary action. Acts of retaliation should be reported immediately and will be promptly investigated and addressed.
Misconduct constituting harassment, discrimination or retaliation will be dealt with appropriately. Responsive action may include, for example, training, referral to counseling or disciplinary action such as a warning, reprimand, withholding of a promotion or pay increase, reassignment, temporary suspension without pay, or termination, as the City of Calimesa believes appropriate under the circumstances.
If a party to a complaint does not agree with its resolution, that party may appeal to the City of Calimesa’s City Manager.
False and malicious complaints of harassment, discrimination or retaliation (as opposed to complaints that, even if erroneous, are made in good faith) may be the subject of appropriate disciplinary action.
REASONABLE ACCOMMODATION
The City of Calimesa is committed to providing access and reasonable accommodation in its services, activities, programs, and employment opportunities in accordance with the Americans with Disabilities Act and other applicable laws.
Individuals may request reasonable accommodations from the City of Calimesa that they believe will enable them to have such equal opportunity to participate in our programs, activities, and services.
To request reasonable accommodations, please contact the City’s Risk Manager at (909) 795-9801, or by visiting Calimesa City Hall, 908 Park Avenue, Calimesa, CA 92320.
You may request a reasonable accommodation from the City of Calimesa at any time.
However, making the request in advance of a meeting, conference call, or visit will help ensure that the City of Calimesa is able to fulfill the request for an accommodation. For certain requests, such as requests for sign language interpretation, the City of Calimesa requests at least two weeks’ advance notice.
City of Calimesa – Civil Rights Policy
The City of Calimesa may contact you to obtain more information about your request and to better understand your needs. In addition, the City of Calimesa may review your request to determine:
▪ Whether the requested accommodation will be effective in allowing you to participate in the activity or program in which you are seeking participation; ▪ Whether the requested accommodation is reasonable, or an equally effective alternative to the requested accommodation is available; and ▪ Whether providing you with the requested accommodation would fundamentally alter the nature of the City of Calimesa’s program or impose undue financial or administrative burdens on the City of Calimesa.
In addition, in some cases the City of Calimesa may consult with you in an interactive process to determine on a case-by-case basis what reasonable accommodations can be made.
If the City of Calimesa determines that your requested accommodation would fundamentally alter the nature of the program or impose an undue financial or administrative burden, the City of Calimesa may deny your request. However, in the unlikely event that this occurs, the City of Calimesa will work with you to identify an alternative accommodation that allows you to effectively participate in the City of Calimesa’s program, activity, or service.
The City of Calimesa may not request medical documentation after receiving your request for a reasonable accommodation. The City of Calimesa’s questions will be limited to understanding the barrier to your ability to participate in the program or activity in which you are interested and the nature of an accommodation that will remove this barrier. You are not responsible for the cost of an auxiliary aid or service the City of Calimesa provides to you. There are many types of reasonable accommodations.
LANGUAGE ACCESS PLAN
It is the policy of the City of Calimesa to provide timely meaningful access for limited English proficiency (LEP) persons to all City programs and activities. All personnel shall provide free language assistance services to LEP individuals whom they encounter or whenever an LEP person requests language assistance services. All personnel will inform members of the public that language assistance services are available free of charge to LEP persons, and that the City will provide these services to them.
CITY COUNCIL MEETING
AGENDA REPORT
Agenda Item No. 9
SUBJECT: RECEIVE AND FILE THE FISCAL YEAR 2022-23 ANNUAL AUDITED
FINANCIAL STATEMENTS AND RELATED REPORTS
MEETING DATE: December 18, 2023
PREPARED BY: Celeste Reid, Finance Director and Treasurer RECOMMENDATION: That City Council receive and file the Fiscal Year 2022-23 Annual Audit Report and Financial Statements, the Report on Internal Control over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards, and the Auditors’ Communication with Those Charged with Governance (SAS 114).
DISCUSSION: The firm of Rogers, Anderson, Malody and Scott, LLP (RAMS) performs the independent annual financial audit for the City of Calimesa. The audit is required to be performed in accordance with generally accepted accounting principles and Government Auditing Standards. At the conclusion of the audit test work, the audit firm issues an opinion as to the fairness of presentation of the financial position of City governmental activities, each major fund, and the aggregate remaining fund information of the City. The City of Calimesa received a clean unmodified opinion on the financial statements. This indicates that in the auditor’s opinion, the information reported in the financial statements is presented fairly in all material respects the aggregate financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023. The audit firm is also required to issue a report related to internal controls and provide written communication to the Council on matters regarding how the audit was planned and conducted (SAS 114 report). These additional reports indicate there were no additional matters to address as a result of the audit.
The audit firm met with the City’s Finance Committee on December 11, 2023 and presented to the auditors’ report, letter of internal control and communication letter to those charged with governance.
All reports will be made available to the public on the City’s website on or before December 31, 2023.
A review of fiscal information through June 30, 2023 and the City’s updated financial information for Fiscal Year 2023-24 will be provided at the mid-year budget review in February 2024.
FISCAL IMPACT: There is no fiscal impact associated with the recommended action.
ATTACHMENTS:
Attachment A: Annual Audit Report and Financial Statements for the year ended June 30, 2023.
Attachment B: Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.
Attachment C: Auditors’ Communication with Those Charged with Governance (SAS 114) for the year ended June 30, 2023.
ATTACHMENT 9A
ANNUAL AUDIT REPORT AND FINANCIAL
STATEMENTS FOR THE YEAR ENDED
JUNE 30, 2023
City of Calimesa
Calimesa, California
Annual Audit Report and
Financial Statements
For the year ended June 30, 2023
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City of Calimesa
Annual Audit Report and Financial Statements
For the Year Ended June 30, 2023
-iTable of Contents
Page
INTRODUCTORY SECTION
Table of Contents ......................................................................................................................... i
FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................. 1 Management Discussion and Analysis ................................................................................... 4 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ............................................................................................. 16 Statement of Activities ................................................................................................... 17 Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ......................................................................................................... 19 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ...................................................... 20 Statement of Revenues, Expenditures and Changes in Fund Balances ................. 21 Reconciliation of the Statements of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities .................................... 22 Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position .............................................................................. 24 Statement of Changes in Fiduciary Net Position ........................................................... 25 Notes to Basic Financial Statements ........................................................................................ 26 Required Supplementary Information:
Schedule of Changes in the Net Pension Liability and Related Ratios – Last 10 Years ..... 54 Schedule of Pension Contributions – Last 10 Years ........................................................... 55 Budgetary Information ......................................................................................................... 56 Schedule of Revenues, Expenditures and Changes in Fund Balances:
General Fund ................................................................................................................ 57 Mitigation Fees Special Revenue Fund ........................................................................ 58
City of Calimesa
Annual Audit Report and Financial Statements
For the Year Ended June 30, 2023
-iiSupplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheet . ............................................................................................ 59 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .... 61 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Supplemental Law Enforcement Grant Special Revenue Fund .............................. 63 Housing Rehab – State Special Revenue Fund ....................................................... 64 Library Special Revenue Fund ................................................................................ 65 Transportation Air Quality Improvement Special Revenue Fund ............................ 66 Gas Tax Special Revenue Fund ............................................................................. 67 Measure A Fund – Budgetary Basis Special Revenue Fund ................................... 68 Lighting/Landscape District Special Revenue Fund ................................................ 69 Recycling Special Revenue Fund ........................................................................... 70 Housing Rehab – Federal Special Revenue Fund ................................................... 71 Road Maintenance and Rehab Special Revenue Fund .......................................... 72 Planning Grants Special Revenue Fund ................................................................. 73 Capital Projects Including ARPA Capital Projects Fund .......................................... 74 Report on Internal Control over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........................................................................................ 75
735 E. Carnegie Dr. Suite I 00
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Terry P Shea. CPA
Scott W Manno, CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Weleb,r. CPA. MBA. CGMA
Jenny W Liu, CPA. MST
Gardenya Duran, CPA. CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA. MST (Partner Emeritus)
MANAGERS/ STAFF
Seong-Hyea Lee, CPA. MBA
Evelyn Mo, entin-Barcena, CPA
Veronica Hernandez, CPA
Laura Arvizu, CPA
John Maldonado, CPA. MSA
Julia Rodnguez Fuentes. CPA. MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
MEMBERS
Amencan lnslltute of
Certified Public Accountants
PCPS Tlie A/CPA All,ance
for CPA Fmns
Governmental Aud,1
Qua/11y Cenre,
California Society of
Cert1f1ed Public Accountants
dil5b Proud Member of 9 AlliottGlobalAlliance~
mm
IIIIJ
ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
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Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
City of Calimesa, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Calimesa (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
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In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The supplementary information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining schedules and budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 11, 2023 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
San Bernardino, California
December 11, 2023
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City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2023
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This section provides the reader a narrative introduction and a readily understandable analytical overview of the City of Calimesa’s (City) financial activities and performance for the fiscal year ended June 30, 2023. Summary reports showing comparisons of current financial information with that of the previous year are included to enhance the clarity and usefulness of the reports. To gain a broad perspective of the City and its financial activities, we encourage the reader to consider the information presented here in conjunction with the information that we have provided in the letter of transmittal presented at the beginning of this report.
FINANCIAL HIGHLIGHTS
At June 30, 2023, the City assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $56.4 million. Approximately 59% of this amount is invested in capital assets (net of related debt) and therefore not available to meet the City’s ongoing operations.
During the fiscal year, the City’s net position increased by $10.9 million. At June 30, 2023, the City’s governmental funds reported combined ending fund balance of $24.7 million, an increase of $0.4 million compared to prior fiscal year. At June 30, 2023, the City’s general fund reported ending fund balance of $9.7 million, an increase of $1.0 million compared to prior fiscal year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements, which consists of three components: 1) Government-Wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to Basic Financial Statements. Required Supplementary Information is included in addition to the basic financial statements.
Government-Wide Financial Statements
The Government-Wide Financial Statements provide a broad view of the City’s financial position and activities, in a manner similar to private-sector business reporting. The Government-Wide Financial Statements include the Statement of Net Position and the Statement of Activities.
The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the differences reported as Net Position. This statement reports all assets, deferred outflows of resources, liabilities, and deferred inflows of resources using the accrual basis of accounting. Increases and decreases in Net Position serve as useful indicator of whether the financial position of the City is improving or deteriorating.
City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2023
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OVERVIEW OF THE FINANCIAL STATEMENTS, Continued
Government-Wide Financial Statements, Continued
The Statement of Activities provides information on how the City’s Net Position changed during the fiscal year. All changes in Net Position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. All revenues earned and expenses incurred during the fiscal year are reported in this statement, regardless of timing of related cash flows.
The Government-Wide Financial Statements present governmental activities only because the City does not have business-type activities. The governmental activities of the City include general government, public safety, public works, parks and senior center, community services and development, and library. Property and local taxes, investment earnings, charges for services, operating and grants and contributions finance these activities.
Fund Financial Statements
Funds are groupings of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The funds of the City can be divided into two categories: governmental funds and fiduciary funds.
Governmental Fund Financial Statements are used to report basically the same functions as governmental activities in the Government-Wide Financial Statements. However, unlike the Government-Wide Financial Statements, Governmental Fund Financial Statements focus on near-term inflows and outflows of spendable resources, as well as the available balances of spendable resources at the end of the fiscal year. This information may be useful in assessing the City’s near-term financial requirements.
To better understand the City’s long-term and near-term financial requirements, it is useful to compare the information presented for governmental funds with the information provided for governmental activities in the Government-Wide Financial Statements. Both the governmental funds balance sheet and statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.
The City reports 15 governmental funds. The major governmental funds are the General Fund, Mitigation Fees Fund and Capital Projects Including American Rescue Plan Act (ARPA) Capital Projects Fund, which are presented separately in the Governmental Fund Financial Statements.
Information on the other governmental funds is combined into a single aggregated presentation as non-major governmental funds. Individual fund data for each non-major governmental fund is provided in the form of combining statements as supplementary information elsewhere in the report.
City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2023
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OVERVIEW OF THE FINANCIAL STATEMENTS, Continued
Government-Wide Financial Statements, Continued
Fiduciary funds are used to account for resources held for the benefit of parties external to the City. These funds are not included in the Government-Wide Financial Statements because the resources of the fiduciary funds are not available to support the City’s own programs. The City’s Fiduciary Fund Financial Statements provide financial information about the activities of the Special Assessment Districts, for which the City acts solely as an agent. The City’s fiduciary funds are presented as an agency fund that accounts for the aggregate activity in the City’s Community Facilities Districts (CFD), as well as a private purpose trust fund to account for the activity of the Successor Agency to the City.
Notes to Basic Financial Statements
The Notes to Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund Financial Statements.
Supplementary Information
The Required Supplementary Information includes budgetary comparison schedules for the General Fund and the Mitigation Fees Fund.
Combining and individual fund statements and schedules provide information for non-major governmental funds and are presented immediately following the Required Supplementary Information.
City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2023
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GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following table shows the condensed comparative Statement of Net Position for the fiscal years ended June 30, 2023 and 2022.
2023 2022
Assets:
Cash and investments $ 24,010,182 $ 26,133,590
Other assets 7,722,455 4,374,162
Capital assets, net 32,781,702 22,341,317
Total Assets 64,514,339 52,849,069
Deferred Outflows of Resources:
Deferred outflow - pension related 655,670 273,960
Total Deferred Outflows of Resources 655,670 273,960
Liabilities:
Other liabilities 7,061,695 6,129,790
Long-term liabilities 1,691,696 1,017,996
Total Liabilities 8,753,391 7,147,786
Deferred Inflows of Resources:
Deferred inflow - pension related amounts 63,557 448,904 Total Deferred Inflows of Resources 63,557 448,904
Net Position:
Net Investment in Capital Assets 32,474,109 22,078,839
Restricted 14,857,830 15,555,294
Unrestricted 9,021,122 7,892,206
Total Net Position $ 56,353,061 $ 45,526,339
Comparative Statements of Net Position
June 30, 2023 and 2022
Governmental Activities
City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2023
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GOVERNMENT-WIDE FINANCIAL ANALYSIS, (Continued)
Net Position may serve over time as a useful indicator of the City’s financial position. The City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $56 million. This is an increase of $11 million or 25% over the prior fiscal year. The reasons for this increase are detailed below in the Comparative Statements of Activities and Changes in Net Position.
The largest portion of the City’s Net Position, $32 million, or 58%, is investment in capital assets.
The City uses these capital assets to provide services to residents; consequently, they are not available for future spending. There is outstanding debt of $308,000 with relation to capital assets.
Another portion of the City’s Net Position, $14.9 million, or 26%, are resources subject to external restrictions and may only be used for the purpose intended by the entities that provided these funds to the City.
The remaining balance of the City’s Net Position of $9 million, or 16%, represents unrestricted Net Position, which may be used to finance daily operations without constraints established by debt covenants or other legal requirements.
The City’s cash and investments decreased by $2,123,408.
City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2023
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GOVERNMENT-WIDE FINANCIAL ANALYSIS, (Continued)
The following table shows the condensed comparative Statements of Activities and Changes in Net Position for the fiscal years ended June 30, 2023 and 2022. 2023 2022
Revenues:
Program revenues:
Charges for services $ 1,814,613 $ 1,993,540
Operating grants and contributions 1,775,554 658,374
Capital grants and contributions 14,327,951 3,057,405
Total program revenues 17,918,118 5,709,319
General revenues:
Taxes:
General property taxes 4,510,964 3,904,944
Sales tax 1,630,565 1,491,164
Motor vehicle in-lieu 1,465,476 1,312,885
Franchise fees 577,334 523,468
Transient occupancy tax 77,853 95,675
Business Licenses 42,663 46,853
Unrestricted investment earnings 974,126 93,373
Unrealized loss on investments (415,341) (384,192)
Other 34,008 73,657
Total general revenues 8,897,648 7,157,827
Total Revenues 26,815,766 12,867,146
Expenses:
General government 3,787,958 1,660,155
Public safety 5,244,572 4,883,140
Public works, parks and senior center 5,757,854 1,329,597 Community development 1,041,731 925,353
Library 32,890 23,217
Interest on long-term liabilities 11,532 -
Total Expenses 15,876,537 8,821,462
Increase in net position 10,939,229 4,045,684
Net position - beginning, as restated 45,413,832 41,480,655 Net position - ending $ 56,353,061 $ 45,526,339
June 30, 2023 and 2022
Governmental Activities
Comparative Statements of Activities and Changes in Net Position
City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2023
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GOVERNMENT-WIDE FINANCIAL ANALYSIS, (Continued)
The City’s expenses totaled $15.9 million in fiscal year 2022-23. These expenses were funded by program revenues of $17.9 million and general revenues of $8.9 million. This resulted in an increase in Net Position of $10.9 million.
Program Revenues – Program Revenues include fees and other specific charges designed to support the costs of programs provided to residents, as well as revenues related to operating activity, capital improvements and new development. Charges for services decreased by $178,927 due to a decrease in development related activity including reduction in revenues for building permits. Operating Grants and Contributions increase by $1,117,180 due to changes in account categorizations over prior year. Capital grants and contributions increased by $11,270,546 due to contributed infrastructure capital from development of $8.2 million and the increases in revenues relating to the County Line Road roundabout LPP project and ARPA revenue recognition for the city-wide pavement management program in 2022-23. Overall, program revenues increased by $12,208,799.
General Revenues – The overall increase from the prior year is approximately $1,739,821 or 24%.
Significant increases include $606,020 or 16% in property taxes, $152,591 or 12% in motor vehicle-lieu taxes, $139,401 or 9% increase in sales taxes and $880,753 in investment earnings.
Expenses – The overall increase from the prior year is approximately $7 million or an 80% increase. Significant increases include $2.1 million in general government and $4.4 million in public works, parks and senior center. General government increases of $2.1 million were primarily a result of increases in $1.2 million in excess capital outlay, $0.4 million in personnel costs, and $0.3 million in operations and professional services. Public works, parks and senior center increases of $4.4 million were primarily a result of $1.1 million in operations and professional services, and $3.3 million in excess capital outlay.
FUND FINANCIAL ANALYSIS
Governmental Funds
The City’s governmental funds provide information on short-term inflows, outflows, and balances of spendable resources. This information is useful in evaluating the City’s financing requirements.
Unreserved fund balance may serve as a useful measure of the government’s net resources available for spending at the end of fiscal year.
At June 30, 2023, the City’s combined governmental fund balances were $24.7 million, an increase of $0.4 million, or 1%, over the prior fiscal year. Of this amount, approximately $14.9 million represents restricted fund balance, $3.1 million represents committed fund balance, and $0.2 million represents assigned fund balance. The balance represents unassigned fund balance of $4.7 million.
City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2023
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FUND FINANCIAL ANALYSIS, (Continued)
The City’s governmental revenues in fiscal year 2022-23 were $26.8 million, which is an increase of $14 million from the prior year. Significant changes include development related activity due to contributed infrastructure capital contributions totaled $8.2 million, an increase of 100% from the prior year. Other increases include $0.8 million from the prior year in taxes, $0.8 million from investment earnings, and $3.5 million in intergovernmental activity which represents grant funding and municipal contributions relating to shared capital streets and road improvements. It should be noted that typically grant funding, municipal contributions and development fees are one-time in nature and subject to timing as development occurs within the City of Calimesa.
The City’s governmental expenditures in fiscal year 2022-23 were $26.5 million, an increase of $15.5 million from fiscal year 2021-22. The overall increase of $15.5 million includes $8.2 million for development related activity due to contributed infrastructure capital, $5.2 million increases in street related projects including the city-wide pavement management program and County Line Road roundabouts LPP project. General Government category increased by $0.8 million and Public Safety category increased by $0.5 million.
The following provides an analysis of the City’s major funds:
General Fund
The General Fund is the primary operating fund of the City. At June 30, 2023, the General Fund had a total fund balance of $9,751,162, which consisted of nonspendable fund balance of $1,898,447, committed fund balance of $2,615,850 representing amounts set aside by City Council for emergencies and economic stability (calculated as 30% of annual operating expenditures), committed fund balance for equipment replacement of $435,975 (calculated as 5% of annual operating expenditures), assigned fund balance for insurance of $127,745, and unassigned fund balance of $4,673,145.
The net change in fiscal 2022-23 fund balance of the City’s General Fund increased by $1,007,961. Revenues exceeded expenditures by $2,009,902, while other financing uses of transfers to other funds resulted in a decrease of $1,001,941. Revenues increased by $10,226,230 and expenditures increased by $9,636,403 from the prior year. The increase in expenditures in the current fiscal year also includes capital costs from the prior year that were erroneously capitalized and are now being expensed.
The increase in revenues of $10,226,230 over prior year was a result of increases in most revenue categories. The most significant increase in revenue was $8.2 million in developer contributions relating to the development related revenue of contributed infrastructure capital, with the remaining change in revenues totaling $2 million. The $2 million increase over prior year include the categories of $823,000 in taxes, $432,000 in licenses and permits, $179,000 in development fees, and $592,000 in investment earnings.
City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2023
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FUND FINANCIAL ANALYSIS, (Continued)
General Fund, (Continued)
The increase in expenditures of $9,636,403 includes and is a result of development contributed infrastructure capital of $8.2 million, with the remaining change in expenditures totaling $1.4 million. The $1.4 million increase over prior year include categories of General Government of $540,000 from primarily $370,000 in personnel costs and $111,000 in lease expenses, Public Safety of $470,000 from primarily $161,000 personnel costs and $308,000 from contract services, equipment and capital improvements, Public Works, Parks and Senior Center of $147,000 primarily from contract and professional services and Community Services and Development of $282,000 primarily from contract and professional services.
Mitigation Fees – Special Revenue Fund
The Mitigation Fee Fund accounts for revenue from development impact fees and grants to be used for facilities including street and traffic, storm drain, parks, library, public safety and general government. These fees are used to mitigate the impacts of new development. Activity in the fund will vary from year to year based upon the timing of development moving forward and capital projects managed within the mitigation fee funds. The revenue in this fund is typically collected prior to the issuance of a building permit for new construction and is subject to timing of developments. The expenditures can vary greatly from year to year as city-initiated projects for infrastructure and equipment purchases are moved forward. The net change in fiscal year 2022- 23 fund balance of the Mitigation Fee funds decreased by $1,254,329. Revenues increased over prior year by $2,279,815 due to variability and timing of development projects. Expenditures increased over prior year by $3,893,816 due to a new street, improvements, capital projects and there was also an increase of $325,000 in transfers in from the RMRA fund to fund capital projects, with a beginning deposit balance restatement of $112,506 for previously recognized revenue that is a deposit balance.
Capital Projects Including ARPA - Capital Projects Fund The Capital Projects Including ARPA Fund accounts for revenues received for the American Rescue Plan act for which monies will be used for various eligible purposes. The total amount received by the City for ARPA fund is $2,191,266 with a remaining balance of $917,456 of the funds are reported as unearned revenue as of June 30, 2023. It is anticipated the balance of ARPA funding will be utilized for the citywide pavement management program in future fiscal years. The total fund balance as of June 30, 2023, is $666,227.
City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2023
-13-
FUND FINANCIAL ANALYSIS, (Continued)
GENERAL FUND BUDGETARY HIGHLIGHTS
The budgetary comparison schedule for the General Fund is presented in the Required Supplementary Information. The General Fund budget for fiscal year 2022-23 was increased by $3,346,603 for revenue and $3,272,074 for expenditures. Budget amendments were a result of changes in actual results in revenue categories and in response to services provided throughout the year. Actual revenues had variances for the developer contributed infrastructure capital amounts of approximately $8.2 million and there was a corresponding variance on the expenditure amounts as well. With the remaining expenditure variance of $3 million in savings, it should be noted a portion of the savings were a result of the lack of availability of materials and equipment.
As such, certain appropriations will “rollover” and be re-budgeted to fiscal year 2023-24.
CAPITAL ASSETS AND LONG-TERM OBLIGATIONS
Capital Assets
The City’s capital assets include those assets that are used in the performance of the City’s services. At June 30, 2023, the City’s capital assets used in governmental activities amounted to $32.8 million, net of depreciation.
Capital assets for governmental activities are presented below to illustrate changes from prior fiscal year:
2023 2022
Land 2,553,184 $ $ 1,918,401
Construction in Progress 7,971,218 7,668,906
Buildings and Improvements 5,113,086 4,478,993
Infrastructure:
Road Network 23,119,665 13,717,079
Machinery and equipment 1,363,169 1,352,871
Right-to-use assets - equipment 113,918 -
Capital assets before depreciation 40,234,240 29,136,250 Less: accumulated depreciation (excludes land) (7,452,538) (6,794,933) Total net capital assets $ 32,781,702 $ 22,341,317
Governmental Activities
Additional information on capital assets can be found in Note 4 to the Basic Financial Statements.
Long-term Obligations
At June 30, 2023, the City had long-term debt outstanding of $500,663 compared to $572,656 in the prior year. Both the finance purchase agreement and compensated absences were reduced while the lease liability obligation increased. This resulted in a net decrease of $71,993. Additional information on long-term obligations is provided in Note 5 to the Basic Financial Statements.
City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2023
-14-
CAPITAL ASSETS AND LONG-TERM OBLIGATIONS (Continued)
Long-term Obligations (Continued)
The City’s long-term debt obligations at June 30, 2023 and 2022 were as follows:
2023 2022
Compensated absences $ 193,070 $ 310,178
Finance purchase agreement 222,103 262,478
Lease liabilities 85,490 -
Total
$ 500,663 $ 572,656
Governmental Activities
Not included in the above total outstanding debt amount is the Successor Agency Trust. At June 30, 2023, there was $2,035,926 bond debt outstanding. Additional information on the Successor Agency Trust is provided in Note 9 to the Basic Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City’s adopted budget for 2023-24 recognized that:
The City continues to have planned commercial and residential development projects which result in economic and population growth.
The adopted budget reflects conservative revenue estimates given variable factors in local economic and inflationary projections and the timing of when planned development will move forward.
The City continues to focus on increasing revenues through growth of property and sales tax resources which will be key to sustaining service levels and long-term fiscal stability as well as seeking out grants available from other agencies to support traffic flow, to fund public safety equipment acquisitions and animal control services. Development will continue to play a major role in fiscal year 2023-24 in the areas of revenue and infrastructure.
The City will complete or have progress in several infrastructure and street improvement projects including the County Line corridor improvement plan, traffic interchange projects, and park improvements.
The City established Vehicle and IT replacement funds to provide resources for anticipated mid-range replacements of city-wide vehicles and IT functions. The City established an additional reserve of $75,000 for the purpose of expanding resources committed to Parks and Trails.
The adopted fiscal year 2023-24 budget projects an approximate 72% General Fund reserve level at June 30, 2023, which is well above the Council approved policy of 35%.
City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2023
-15-
REQUEST FOR INFORMATION
This financial report is designed to provide residents, taxpayers, customers, investors, and creditors with a general overview of the City’s finances. Questions concerning any information provided in this report or requests for additional information should be addressed to the City of Calimesa, Finance Department, 908 Park Avenue, Calimesa, California 92320.
BASIC FINANCIAL STATEMENTS
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GOVERNMENT WIDE FINANCIALS
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City of Calimesa
Statement of Net Position
For the Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -16-
Governmental
Activities
Assets
Cash and investments $ 24,010,182
Receivables:
Taxes and other 614,916
Intergovernmental 2,239,564
Interest 223,348
Loans 1,084,334
Retentions 1,481,773
Prepaid expenses 1,898,447
Deposits 75,489
Due from the Successor Agency 104,584
Capital assets not being depreciated 10,524,402
Capital assets being depreciated, net 22,257,300
Total Assets 64,514,339
Deferred Outflows of Resources
Deferred outflow - pension related 655,670
Total Deferred Outflows of Resources 655,670
Liabilities
Accounts payable 1,631,466
Retentions payable 370,717
Accrued payroll 88,477
Unearned revenue 2,536,314
Deposits 2,434,721
Noncurrent liabilities:
Due within one year 107,489
Due in more than one year 393,174
Net pension liability 1,191,033
Total Liabilities 8,753,391
Deferred Inflows of Resources
Deferred inflows - pension related 63,557
Total Deferred Inflows of Resources 63,557
Net Position
Net investment in capital assets 32,474,109
Restricted:
Legally restricted - Street and Road Improvements 721,081 Regulatory/grant restrictions 3,157,393
Legally restricted - Development Impact fees 10,979,356 Unrestricted 9,021,122
Total Net Position $ 56,353,061
City of Calimesa
Statement of Activities
For the Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -17-
Net (Expense)
Revenue and
Changes in Net
Program Revenues Position
Operating Capital Grants
Charges for Grants and and Governmental
Functions/Programs: Expenses Services Contributions Contributions Total Activities Primary Government:
Governmental activities:
General government 3,787,958 $ 1,384,547 $ - $ - $ 1,384,547 $ (2,403,411) $ Public safety 5,244,572 387,496 878,397 - 1,265,893 (3,978,679) Public works, parks and senior center 5,757,854 42,570 859,220 14,327,951 15,229,741 9,471,887 Community services and
development 1,041,731 - - - - (1,041,731)
Library 32,890 - 37,937 - 37,937 5,047
Interest on long-term liabilities 11,532 - - - - (11,532) Total governmental activities 15,876,537 $ 1,814,613 $ 1,775,554 $ 14,327,951 $ 17,918,118 $ 2,041,581 Taxes:
Property 4,510,964
Sales tax 1,630,565
1,465,476
Franchise fees 577,334
77,853
42,663
Total taxes 8,304,855
974,126
(415,341)
Other 34,008
8,897,648
10,939,229
Net position - beginning of year, as restated 45,413,832 Net position - end of year $ 56,353,061
General Revenues:
Motor vehicle in-lieu
Transient occupancy taxes
Business Licenses
Unrestricted investment earnings
Unrealized loss on investments
Total general revenues
Change in net position
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Fiduciary Fund Financial Statements
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GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund accounts for resources traditionally associated with governmental which are not required legally or by sound financial management to be accounted for in another fund.
Mitigation Fees Special Revenue Fund accounts for various sources of development related revenue including facilities fees, traffic fees, and park acquisition, flood drainage control, and improvement fees. These fees are used to expand facilities as development occurs, thus mitigating a portion of the impacts associated with development.
Capital Projects including ARPA Capital Projects Fund accounts for the City of Calimesa's major capital projects and accounts for one-time revenues received from the federal government for the American Rescue Plan Act (ARPA), for which monies will be used for various eligible projects. ARPA was passed to provide economic relief to municipal governments.
Non-Major Governmental Funds is the aggregate of all the non-major governmental funds.
City of Calimesa
Balance Sheet
Governmental Funds
June 30, 2023
The accompanying notes are an integral part of these financial statements. -19-
Total Nonmajor Total
Capital Projects Governmental Governmental
General Mitigation Fees Including ARPA Funds Funds
ASSETS
Cash and investments 9,927,892 $ 10,237,744 $ 1,696,384 $ 2,148,162 $ 24,010,182 $ Receivables:
Taxes and other 516,173 - - 98,743 614,916
Intergovernmental - 2,126,284 - 113,280 2,239,564
Interest 221,201 2,147 - - 223,348
Loans - - - 1,084,334 1,084,334
Retentions - 1,481,773 - - 1,481,773
Prepaid expenses 1,898,447 - - - 1,898,447
Deposits - 75,489 - - 75,489
Due from other funds 41,097 - - - 41,097
Due from the Successor Agency 104,584 - - - 104,584
Total Assets 12,709,394 $ 13,923,437 $ 1,696,384 $ 3,444,519 $ 31,773,734 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE
Liabilities:
Accounts payable 599,957 $ 947,794 $ 32,392 $ 51,323 $ 1,631,466 $ Retentions payable - 290,408 80,309 - 370,717
Accrued payroll 88,477 - - - 88,477
Unearned revenues 26,482 1,549,879 917,456 42,497 2,536,314 Due to other funds - - - 41,097 41,097
Deposits 2,239,758 156,000 - 38,963 2,434,721
Total Liabilities 2,954,674 2,944,081 1,030,157 173,880 7,102,792 Deferred Inflow of Resources:
Unavailable revenues 3,558 - - - 3,558
Total Deferred Inflows of Resources 3,558 - - - 3,558
FUND BALANCES
Nonspendable 1,898,447 - - - 1,898,447
Restricted - 10,979,356 666,227 3,212,247 14,857,830
Committed for:
Emergencies and economic stabilization 2,615,850 - - - 2,615,850 Equipment replacement 435,975 - - - 435,975
Assigned for:
Capital projects - - - 58,392 58,392
Insurance 127,745 - - - 127,745
Unassigned 4,673,145 - - - 4,673,145
Total Fund Balance 9,751,162 10,979,356 666,227 3,270,639 24,667,384 Total liabilities, deferred inflow of resources
and fund balance $ 12,709,394 $ 13,923,437 $ 1,696,384 $ 3,444,519 $ 31,773,734 Major Funds
City of Calimesa
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position
June 30, 2023
The accompanying notes are an integral part of these financial statements. -20-
$ 24,667,384
net position (page 17) are different because:
Capital assets not being depreciated $ 10,524,402
Capital assets being depreciated, net 22,257,300 32,781,702 3,558
655,670
(63,557)
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds:
Compensated absences (193,070)
Finance purchase agreement payable (222,103)
Lease liabilities (85,490)
Net pension liability (1,191,033) (1,691,696)
Net position of governmental activities $ 56,353,061
Deferred outflows of resources related to pensions have not been reported in governmental funds.
Deferred inflows of resources related to pensions have not been reported in governmental funds.
current financial resources are classified as Deferred Inflows of Resources in the funds.
Amounts reported for governmental activities in the statement of Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds.
Revenues in the statement of activities that do not provide
City of Calimesa
Statement of Revenues, Expenditures and Changes in Fund Balance For the Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -21-
Total Nonmajor Total
Capital Projects Governmental Governmental
General Mitigation Fees Including ARPA Funds Funds
REVENUES
Taxes 8,157,131 $ - $ - $ 106,710 $ 8,263,841 $
Licenses and permits 975,816 - - - 975,816
Fines and forfeitures 60,901 - - - 60,901
Intergovernmental 118,793 4,297,800 1,273,810 1,139,247 6,829,650 Charges for services 747,499 1,400 - - 748,899
Development fees 632,263 537,466 - - 1,169,729
Developer contributions 8,171,860 - - - 8,171,860
Investment earnings 629,643 244,849 50,095 49,539 974,126 Unrealized loss on investments (415,341) - - - (415,341) Other 52,649 - - - 52,649
Total Revenues 19,131,214 5,081,515 1,323,905 1,295,496 26,832,130
EXPENDITURES
Current:
General government 2,144,416 368,427 - 59,097 2,571,940 Public safety 5,095,472 10,015 - 137,981 5,243,468
Public works, parks and senior center 8,897,243 6,216,224 1,661,613 813,555 17,588,635 Community services and development 987,663 - - 45,540 1,033,203 Parks and recreation - - - - -
Library - 10,789 - 22,101 32,890
Debt service:
Principal - 40,375 - - 40,375
Interest and fiscal charges (3,482) 15,014 - - 11,532
Total Expenditures 17,121,312 6,660,844 1,661,613 1,078,274 26,522,043 Excess of Revenues Over Expenditures 2,009,902 (1,579,329) (337,708) 217,222 310,087
OTHER FINANCING SOURCES (USES)
Transfers in - 325,000 1,000,000 113,705 1,438,705
Transfers out (1,113,705) - - (325,000) (1,438,705)
Lease acquisition 111,764 - - - 111,764
Total Other Financing Sources (Uses) (1,001,941) 325,000 1,000,000 (211,295) 111,764 Net Change in Fund Balance 1,007,961 (1,254,329) 662,292 5,927 421,851 Fund Balance, Beginning of year, as restated 8,743,201 12,233,685 3,935 3,264,712 24,245,533 Fund Balance, End of year $ 9,751,162 $ 10,979,356 $ 666,227 $ 3,270,639 $ 24,667,384 Major Funds
City of Calimesa
Reconciliation of the Statements of Revenues, Expenditures and Changes in Fund Balance of the Governmental Funds to the Statement of Activities For the Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -22-
Net change in fund balance - governmental funds $ 421,851 because:
expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This was the amount of capital assets purchased in the current period. 11,215,833
Statement of Activities, but they did not require the use of current financial resources. Therefore, depreciation and amortization expense was not reported as expenditures in the Governmental Funds. (775,448) reported as revenues in the funds. (16,364)
funds, however, these amounts are reported as a deferred outflow of resources in the GovernmentWide Statement of Net Position. 193,807 however, pension expense is not recognized in the governmental funds. (172,443) and this contributes to the change in fund balance. In the Statement of Net Position, however, issuing debt increases long-term liabilities and does not affect the Statement of Activities. Repayment was an expenditure in governmental funds, but the repayment reducted long-term liabilities in the GovernmentWide Statement of Net Position:
Long-term debt repayments 66,649
Lease acquisition (111,764)
financial resources and, therefore, are not reported as expenditures in the governmental fund. In addition, some expenditures recorded in the governmental funds have already been expensed in the government-wide in prior years. 117,108
Change in net position of governmental activities 10,939,229 $ Amounts reported for governmental activities in the statements of activities are different Issuance of long term debt is reported as other financing sources in the governmental funds Some expenses reported in the statement of activities do not require the use of current Governmental funds reported additions of capital assets as capital outlay and program Depreciation and amortization expense on capital assets was reported in the Government-Wide Revenues in the statement of activities that do not provide current financial resources are not Current year employer pension contributions are recorded as expenditures in the governmental Pension expense is recorded as incurred in the Government-Wide Statement of Activities,
-23-
FIDUCIARY FUND FINANCIAL STATEMENTS
Custodial Funds
Custodial Funds account for assets held by the City for unspent special assessments collected for various Community Facility Districts and mitigation fees collected on behalf of Western Riverside County Regional Conservation Authority.
Private Purpose Trust Funds
Successor Agency Trust Fund accounts for assets and liabilities transferred from the City to the Successor Agency Trust Fund.
City of Calimesa
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
The accompanying notes are an integral part of these financial statements. -24-
Successor
Custodial Agency Trust
Funds Fund
ASSETS
Cash and investments 4,350,301 $ 50 $
Cash and investments with fiscal agent - restricted 2,128,630 218,321 Receivables:
Assessments 29,756 -
Total Assets 6,508,687 218,371
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 70,010
Total Deferred Outflows of Resources - 70,010
LIABILITIES
Accounts payable 53,560 -
Deposits 20,234 -
Unearned revenue - 6,000
Interest payable - 43,189
Due to City of Calimesa - 104,584
Noncurrent liabilities:
Due within one year - 120,000
Due in more than one year - 1,915,926
Total Liabilities 73,794 2,189,699
NET POSITION
Restricted
Debt service 6,430,457 218,321
Multiple Species Habitat Conservation Plan 4,436 -
Unrestricted - (2,119,639)
Total Net Position 6,434,893 $ (1,901,318) $
City of Calimesa
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -25-
Successor
Custodial Agency Trust
Funds Fund
ADDITIONS
Special assessments 2,901,284 $ - $
Redevelopment Property Tax Trust Fund distributions - 295,221 Investment earnings 137,226 6,889
Fees collected on behalf of other agencies 22,197 -
Total Additions 3,060,707 302,110
DEDUCTIONS
Administration 66,925 97,433
Debt service payments 1,292,971 127,261
Professional services and financial services 1,159,108 - Disbursement of fees to other agencies 22,195 -
Total Deductions 2,541,199 224,694
Change in Net Position 519,508 77,416
Net Position, Beginning, as restated 5,915,385 (1,978,734) Net Position, Ending 6,434,893 $ (1,901,318) $
NOTES TO BASIC FINANCIAL STATEMENTS
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City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-26-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Description of the Reporting Entity
The City of Calimesa (the City) was incorporated on December 1, 1990, under the laws of the State of California and enjoys all the rights and privileges applicable to the general law city. It is governed by an elected five-member Council and Council-appointed Mayor. As required by accounting principles generally accepted in the United States of America, these financial statements present the City (the primary government).
B) Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on the primary government. For the most part, the effect of interfund activity has been removed from these statements.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues.
The fund financial statements provide information about the City’s funds. Separate financial statements are provided for governmental funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.
The City reports the following major governmental funds:
The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.
The Mitigation Fees Fund is used to account for various sources of development related revenue including Fire, Library, Law Enforcement and Administration facility fees, traffic improvement, flood control and drainage fees, park acquisition and improvement fees. These fees are used to expand facilities as development occurs, thus mitigating a portion of the impacts associated with development. Capital projects are also included in these expenditures.
The Capital Projects Including ARPA Capital Projects Fund is used to account for revenue received from the America Rescue Plan Act, to be used for eligible projects.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-27-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) B) Government-wide and Fund Financial Statements, (Continued) Additionally, the City reports the following non-major fund types:
The Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.
The Capital Projects Fund is used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays. The City’s non-major capital projects fund accounts for projects related to the Americans with Disabilities Act (ADA).
Other capital project expenditures are recorded directly in either the General Fund or applicable Special Revenue Funds that serve as the funding sources for each capital project.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City has two types of fiduciary funds, Custodial Funds that account for monies collected on behalf of other governmental agencies and Community Facilities Districts, and a Private Purpose Trust Fund, which accounts for the activities of the Successor Agency to the City of Calimesa Redevelopment Agency. Fiduciary funds are accounted for using the accrual basis of accounting.
C) Measurement Focus, Basis of Accounting, and Financial Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Non-exchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues, except for grant revenues to be available if they are collected within 60 days of the end of the current fiscal period. Grant revenues are generally considered available if they are collected within 180 days. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-28-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) C) Measurement Focus, Basis of Accounting, and Financial Presentation, (Continued) As a general rule, the effect of interfund activity has been eliminated from the governmentwide financial statements. Amounts reported as program revenues include 1) charges to members, customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated sources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. In addition, fiduciary funds are not included in the government-wide financial statements.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then use unrestricted resources as needed.
D) Assets, Liabilities and Net Position or Equity
Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.
In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas:
Interest Rate Risk
Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-29-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) D) Assets, Liabilities and Net Position or Equity, (Continued) The City participates in an investment pool managed by the State of California, the Local Agency Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and Asset-backed Securities. The LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-backed Securities are subject to market risk as to change in interest rates.
Receivables
During the course of normal operations, the City carries various receivable balances for taxes, interest, services and special assessments. Accounts receivables are shown net of an allowance for doubtful accounts. There were no allowance for doubtful accounts for fiscal year 2022-23.
Interfund Transactions
Interfund transactions are reflected as loans, reimbursements for services provided or transfers. Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from funds” (i.e., the current portion of interfund loans).
Use of Estimates
The financial statements have been prepared in accordance with generally accepted accounting principles accepted in the United States of America and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts.
Unearned Revenues
In the fund financial statements, unearned revenues represent cash advances from various entities that have not been spent; therefore, no revenue has been recognized.
Claims and Judgments
Only the short-term liability (if any) is reflected as a current liability in all applicable governmental fund types, the remainder of the liability is reported as long-term debt in the statement of net position. The City determined that no liability needs to be accrued for claims and judgments.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-30-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) D) Assets, Liabilities and Net Position or Equity, (Continued) Capital Assets
Capital assets, which include land, buildings, improvements, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 ($50,000 for infrastructure assets) and an estimated useful life in excess of three years. Such assets are reported at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend lives are not capitalized.
Capital assets of the primary government are depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings 50
Building improvements 25-30
Infrastructure 30-50
Vehicles 3-15
Office equipment 3-7
Computer equipment 3-10
Pension Plan
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
In addition, the City also sponsors the City of Calimesa Public Agency Retirement System (PARS) defined Contribution Plan for its fire employees. No assets or liabilities are reported for the PARS plan. Additional information about the City’s pension plans is included in Note
6.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-31-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) D) Assets, Liabilities and Net Position or Equity, (Continued) Employee Leave Benefits
Compensated absences are the amounts due to employees for future absences which are attributed to services already rendered. Vacation pay is payable to employees at the time a vacation is taken or upon separation of employment. Sick leave is payable when an employee is unable to work because of illness. The vested portion of compensated absences is included as a long-term liability in the statement of net position.
The following are summaries of the City’s compensated leave policies:
Compensatory time
With the exception of a few items, compensatory time is usually payable to the employee upon termination at the rate of pay at separation.
Sick leave
Employees accrue sick leave in accordance with schedules set forth in the City’s Personnel Rules. All employees with at least six months service are allowed to accrue up to 960 hours of sick leave. Employees are not paid upon separation for accrued sick leave, therefore no liability is accrued in these financial statements for sick leave. The City Manager has no limit on sick accruals. Upon separation, the City Manager’s sick leave is payable at 100%. If retiring, the City Manager can elect conversion to service credit.
Vacation leave
Employees accrue vacation leave in accordance with schedules set forth in the City’s Personnel Rules. Employees will be paid upon separation all accrued vacation leave up to a maximum of 240 hours. The City Manager has no limit on vacation accruals.
Property Taxes
The County of Riverside, California, bills and collects the property taxes and remits them to the City in installments during the year. The County is permitted by State Law (Proposition 13) to levy taxes at 1 percent per $100 of full market value (at time of purchase) and can increase the assessed values no more than 2 percent per year. The City receives a share of this basic levy proportionate to what was received in the 1976 to 1978 period.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-32-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) D) Assets, Liabilities and Net Position or Equity, (Continued) Property taxes are assessed and collected each fiscal year according to the following property tax calendar:
Lien Date January 1
Levy Date July 1
Due Date November 1, First Installment
February 1, Second Installment
Collection December 10, First Installment
April 10, Second Installment
Net Position
Government-Wide Financial Statements
In the Government-Wide Financial Statements, net position is classified in the following categories:
Net Investment in Capital Assets – This category consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets. As of June 30, 2023, net investment in capital assets consisted of $32,781,702 of capital assets, net of depreciation less $307,593 of long-term debt, for a total of $32,474,109.
Restricted – This category includes amounts restricted by external creditors, grantors, contributors, or laws or regulations of other governments.
Unrestricted – This category includes amounts that do not meet the definition of “net investment in capital assets” or “restricted net position” as defined above.
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first.
Fund Balances
Nonspendable Fund Balance – That portion of fund balance that includes amounts that are either 1) not in a spendable form; or 2) legally or contractually required to be maintained intact.
Amounts considered “not in a spendable form” include items that are not expected to be converted to cash such as prepaid items and long-term notes receivable.
Restricted Fund Balance – That portion of fund balance that reflects constraints placed on the use of resources (other than nonspendable items) that are either 1) externally imposed by creditors, such as through debt covenants, grantors, contributors or the laws and regulations of other governments; or 2) imposed by law through constitutional provisions or enabling legislation. These restrictions may be effectively changed only with the consent of the resource provider.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-33-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) D) Assets, Liabilities and Net Position or Equity, (Continued) Committed Fund Balance – That portion of fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council, the City’s government’s highest level decision making authority. In order for funds to be considered committed, a resolution must be passed by the City Council. The established constraints remain binding until City Council takes action to amend the applicable resolution.
The City has a committed amount in the General Fund for emergencies and economic stability, which may only be accessed by majority vote of the City Council. The amount is calculated as thirty (30) percent of the General Fund’s annual operating budget, excluding one-time activity. The City also reports a committed amount for equipment replacement that is calculated as five (5) percent of the General Fund’s annual operating budget, excluding one-time activity.
Assigned Fund Balance – Represents that portion of fund balance that includes amounts that are constrained by the City’s intended use of the resources but are neither restricted nor committed. Such intent needs to be established at the highest level of decision making or by an official designated for that purpose. The City Council has the authority to assign amounts to be used for specific purposes.
Unassigned Fund Balance – Represents that portion of fund balance that includes amounts that are not contained in any of the other fund balance categories. The General Fund is the only governmental fund that may report a positive amount as unassigned fund balance. For all other governmental funds, only negative balances may be reported as unassigned fund balance.
When an expenditure is incurred for purposes for which both restricted and unrestricted funds are available, it is the City’s policy to apply the restricted funds first. The City also considers committed funds to be spent first, assigned funds to be spent second and unassigned funds to be spent last when an expenditure is incurred for purposes for which committed, assigned and unassigned fund balance is available.
Long-term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities. Bond premiums and discounts, 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. Bond issuance costs are expensed in the year of issuance.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-34-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) D) Assets, Liabilities and Net Position or Equity (Continued) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position (balance sheet) will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of net position (balance sheet) will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
E) New Pronouncements
In 2023, the City adopted new accounting standards to conform to the following Governmental Accounting Standards Board Statements:
GASB Statement No. 91 - Conduit Debt Obligations: The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021.
GASB Statement No. 94 - Public-Private and Public-Public Partnerships and Availability Payment Arrangements: The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The requirements of this Statement are effective for reporting periods beginning after June 15, 2022.
GASB Statement No. 96 – Subscription Based IT Arrangements: This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). The requirements of this Statement are effective for reporting periods beginning after June 15, 2022.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-35-
2) CASH AND INVESTMENTS
Cash and investments as of June 30, 2023, are classified in the accompanying financial statements as follows:
Government Fiduciary
Activities Fund Total
Cash and investments 24,010,182 $ 4,350,351 $ 28,360,533 $ Cash and investments with fiscal agent - 2,346,951 2,346,951 Total cash and investments $ 6,697,302 24,010,182 $ 30,707,484 $ Cash on hand $ 400
Deposits with financial institution 1,399,084
Local Agency Investment Funds 26,961,049
Cash and investments with fiscal agent 2,346,951
Total cash and investments $ 30,707,484
A) Deposits
The carrying amount of the City’s cash deposit was $1,399,084 at June 30, 2023. Bank balances before reconciling items were $2,107,792 the total amount of which was insured and/or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City’s cash deposits.
California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City has not waived collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-36-
2) CASH AND INVESTMENTS, (Continued)
B) Investments
Authorized investments
Under provisions of the City’s investment policy, and in accordance with Section 53601 of the California Government Code, the City may invest in the types of investments as listed in the table below.
The City’s investment policy is to apply the prudent-person rule: Investments shall be made with the care, skill, prudence, and diligence under circumstances then prevailing, including but not limited to the general economic conditions and the anticipated needs of the City, 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 of capital and maintain the liquidity needs of the City. The table below identifies the investment types that are authorized for investments held by the City. The Table also identifies certain provisions of these investments that address interest risk and concentration of credit risk.
Maximum Maximum
Maximum Percentage Investment in
Authorization investment type Maturity Allowed One Issuer U.S. Treasury Obligations 5 years None None
Local Agency Investment Fund (LAIF) 5 years None $75 million* Collateralized and/or FDIC-Insured
Demand Deposits 5 years None None
Certificates of Deposit 2 years 15% None
FNMA (Fannie Mae) 5 years 75% None
GNMA (Ginnie Mae) 5 years 20% None
FHLMC (Freddie Mac) 5 years 75% None
Federal Home Loan Bank (FHLB) 5 years 75% None
Federal Farm Credit Bank (FFCB) 5 years 75% None
Federal Agricultural Mortgage
Corporation (FAMC of Farmer Mac) 5 years 75% None
Tennessee Valley Authority 5 years 75% None
Money Market Mutual Funds 5 years 5% None
*$75 million limit is maximum deposit limit set by LAIF.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-37-
2) CASH AND INVESTMENTS, (Continued)
B) Investments, (Continued)
Investments authorized by debt agreements
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.
The table below identifies the investment types that are authorized for investments held by bond trustee. The Table also identifies certain provisions of these debt agreements that address interest risk and concentration of credit risk.
Maximum Maximum
Maximum Percentage Investment in
Authorization investment type Maturity Allowed One Issuer U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances None None None
Commercial Paper None None None
Money Market Mutual None None None
Repurchase/Investment Agreement 180 days None None
Investment Contracts None None None
Local Agency Investment Fund (LAIF) None None *$75 million FHA Obligations Guaranteed by U.S. Government None None None Federal Funds None None None
Negotiable Certificate of Deposit None None None
Time Deposits None None None
FDIC Insured Deposits None None None
Debt Obligations None None None
$75 million limit is maximum deposit limit set by LAIF.
Interest rate risk
The City’s investment policy mitigates interest rate risk by:
(1) Structuring the City’s portfolio so that securities mature to meet the City’s cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to their maturation to meet those specific needs; (2) Investing primarily in short-term securities; and
(3) Occasionally restructuring the portfolio to minimize the loss of market value and/or to maximize cash flows.
Remaining
Maturity
Investment Type Totals 12 Month or Less
Local Agency Investment Fund (LAIF) 26,961,049 $ $ 26,961,049 Total Investments $ 26,961,049 $ 26,961,049
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-38-
2) CASH AND INVESTMENTS, (Continued)
B) Investments, (Continued)
Custodial credit risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in possession of an outside party. The City’s investment policy limits its exposure to custodial credit risk.
Credit risk/pooled cash
The City currently follows GASB No. 40 which established the way the city discloses credit, custodial, interest rate and foreign currency risks. Currently, custodial and interest rate risk are minimal. The City does not own any foreign currency. The City’s most significant investment, LAIF, does not have a rating provided by a nationally recognized statistical rating agency.
Disclosures relating to credit risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City currently invests excess monies in the LAIF and checking and savings accounts at local banks. Currently the City mitigates credit risk by:
(1) Limiting investments to the safest types of securities; (2) Pre-qualifying with an established financial institution with which it will do business; and
(3) Diversifying the investment portfolio so that a failure of any one issuer or backer will not place an undue financial burden on the City.
Concentration of credit risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City’s most significant investment, LAIF, does not have a rating provided by a nationally recognized statistical rating agency.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The balance is available for withdrawal on demand. The City’s investment with LAIF at June 30, 2023 includes a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-39-
2) CASH AND INVESTMENTS, (Continued)
B) Investments, (Continued)
Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.
Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as collateralized mortgage obligations) or credit card receivables.
As of June 30, 2023, the City had $26,961,049 invested in LAIF, which had invested 1.46% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 1.88% in the previous year. The remaining 98.54% of the pool investment funds were invested in United States Treasury Bills and Notes (62.44%), Federal Agency Discount Notes (15.38%), Certificates of Deposit (7.56%), Long Term Commercial Paper (4.41%), Federal Agency Debentures (4.95%), and other allowable investments (3.80%).
The LAIF fair value factor of 0.984828499 was used to calculate the fair value of the investments in LAIF, resulting in in the following investment income in all funds:
Interest income $ 974,126
Unrealized gain/(loss) in changes in fair value of investments (415,341) Total investment income (loss) $ 558,785
3) INTERFUND TRANSACTIONS
A) Interfund Transfers
The composition of interfund transfers for the fiscal year ended June 30, 2023 were as follows:
Non Major
Governmental
Mitigation Fees ARPA Funds Total
Major Fund:
General Fund $ 1,000,000 - $ $ 113,705 $ 1,113,705
Nonmajor
Governmental Funds 325,000 - - 325,000
Total $ 325,000 $ 1,000,000 $ 113,705 $ 1,438,705
Transfers In
Transfers Out
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-40-
3) INTERFUND TRANSACTIONS, (Continued)
A) Interfund Transfers, (Continued)
The transfers which occurred were: Combined $113,705 from General Fund to Nonmajor Governmental Funds and the Capital Projects Including ARPA Fund and $325,000 from the Road Maintenance and Rehab Fund to the Mitigation Fees Fund. The transfers were to fund Lighting/Landscape District activities and for capital projects.
B) Due to/from Other Funds
The General Fund reported due from Nonmajor Governmental Funds of $41,097 that represents short term borrowings to be repaid upon receipt of future revenues. 4) CAPITAL ASSETS
A summary of changes in capital assets at June 30, 2023 is as follows:
Beginning Ending
Balance Additions Deletions Balance
Governmental Activities:
Capital assets not being depreciated:
Land 1,918,401 $ $ 634,783 $ 2,553,184 - $
Construction in progress 7,668,906 2,597,212 2,294,900 7,971,218 Total capital assets not being depreciated 9,587,307 3,231,995 2,294,900 10,524,402 Capital assets being depreciated/amortized:
Building and improvements 4,478,993 634,093 5,113,086 - Machinery and equipment 1,352,871 128,141 117,843 1,363,169 Road network 13,717,079 9,402,586 23,119,665 -
Right-to-use assets - equipment 113,918 - - 113,918
Total capital assets being depreciated/amortized 19,548,943 10,278,738 117,843 29,709,838 Less accumulated depreciation/amortization for:
Buildings and improvements (1,386,329) (129,534) (1,515,863) - Machinery and equipment (697,373) (134,991) (117,843) (714,521) Road network (4,711,231) (483,163) (5,194,394) -
Right-to-use assets - equipment (27,760) - - (27,760)
Total accumulated depreciation/amortization (6,794,933) (775,448) (117,843) (7,452,538) Total capital assets, being depreciated, net 12,754,010 9,503,290 22,257,300 - Governmental activities capital assets, net $ 22,341,317 $ 12,735,285 $ 2,294,900 $ 32,781,702 Depreciation expense was charged to functions/programs of the City as follows:
General government $ 42,401
Public safety 115,896
Public works, parks and senior center 592,400
Community services and development 24,751
Total depreciation expense - governmental activities 775,448 $
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-41-
5) LONG-TERM LIABILITIES
The following is a summary of the changes in the long-term liabilities for the fiscal year ended June 30, 2023:
Due in
Beginning Balance Due Within More Than
Description Balance Additions Deletions Ending One Year One Year Compensated Absences 310,178 $ 146,935 $ 264,043 $ 193,070 $ 38,614 $ 154,456 $ Finance Purchase Agreement 262,478 - 40,375 222,103 41,667 180,436 Lease liabilities 111,764 - 26,274 85,490 27,208 58,282 Total Long-Term Liabilities 572,656 $ $ 258,699 $ 330,692 $ 500,663 $ 107,489 $ 393,174 Compensated absences
For the governmental funds, accumulated vacation, and compensatory time payable at June 30, 2023, was $193,070. These amounts are payable from futures resources and therefore have been recorded as long-term liabilities. These liabilities are generally liquidated by the General Fund.
Finance Purchase Agreement – Fire Truck
On October 16, 2017, the City entered into a finance purchase agreement with the Municipal Finance Corporation to finance the acquisition of a fire engine. The balance will be paid off in 10 annual installment payments and is not considered a lease in accordance with GASB Statement No. 87. Future debt service requirements as of June 30, 2023, were as follows:
Fiscal Year
Ending
June 30, Principal Interest Total
2024 41,667 $ 7,107 $ 48,774 $
2025 43,001 5,773 48,774
2026 44,376 4,398 48,774
2027 45,797 2,977 48,774
2028 47,262 1,512 48,774
Total 222,103 $ 21,767 $ 243,870 $
Lease liabilities
The City entered into various leases as Lessee for the use of equipment for 60 months. Initial lease liability was recorded in the amount of $111,764. As of June 30, 2023, the value of the lease liabilities are $85,490. The City is required to make monthly payments ranging from $606-$1,874. The leases have an interest rate of 1.09%. The equipment’s estimated useful lives are 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2023 was $113,918 with accumulated amortization of $27,760.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-42-
5) LONG-TERM LIABILITIES, (Continued)
Future payments on the total lease liabilities are as follows:
Fiscal Year
Ending
June 30, Principal Interest Total
2024 27,208 $ 2,547 $ 29,755 $
2025 28,176 1,579 29,755
2026 29,178 577 29,755
2027 928 2 930
Total 85,490 $ 4,705 $ 90,195 $
6) EMPLOYEE RETIREMENT PLANS
Defined Benefit Plan:
A) Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in two rate plans (two miscellaneous). Benefit provisions under the Plan are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.
B) Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full-time employment.
Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-43-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
B) Benefits Provided, (Continued)
The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.
The Plan’s provisions and benefits in effect at June 30, 2023 are summarized as follows:
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 52-62
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 7.00% 6.75%
Required employer contribution rates 9.12% 7.47%
Required employer dollar UAL payment (annual) $79,147 $0 Miscellaneous
C) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process.
The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2023 were $193,807. The actual employer payments of $156,867 made to CalPERS by the City during the measurement period ended June 30, 2022 differed from the City’s proportionate share of the employer’s contributions of $205,472 by $48,605, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-44-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
D) Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increase Varies by entry age and service Investment Rate of Return 6.90%
Mortality Rate Table(1) Derived by CalPERS membership data for all funds Post Retirement Benefit Contract COLA up to 2.50% until Purchasing Power Increase Protection Allowance Floor on Purchasing Power applies (1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-45-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
D) Net Pension Liability, (Continued)
Long-term Expected Rate of Return, (Continued)
The City’s net pension liability for the Plan is measured as the proportionate share of the total net pension liability of the Plan. The net pension liability of the Plan is measured as of June 30, 2021, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportionate of the net pension liability was based on the City’s plan liability and asset-related information where available, and proportional allocations of individual plan amounts as of the valuation date where not available.
In determining the long-term expected rate of return, CalPERS took into account both shortterm and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.
The expected real rates of return by asset class are as follows:
Assumed Asset
Asset Class Allocation Real Return 1,2
Global equity - cap-weighted 30.00% 4.54%
Global equity - non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
2 Figures are based on the 2021 Asset Liability Management study 1 An expected inflation of 2.30% used for this period
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-46-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
D) Net Pension Liability, (Continued)
Change of Assumptions
Effective with the June 30, 2021, valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Discount Rate
The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%.
Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes.
This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-47-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
D) Net Pension Liability, (Continued)
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.
E) Proportionate Share of Net Pension Liability
The following table shows the Local Government’s proportionate share of the Plan’s net pension liability over the measurement period.
Proportionate Share of
Total Pension Liability
Proportionate Share of
Fiduciary Net Position
Proportionate Share of
Net Pension Liability
Balance at: 6/30/2021 (VD) 4,853,393 $ 4,408,053 $ 445,340 $ Balance at: 6/30/2022 (MD) 5,152,266 3,961,233 1,191,033 Net changes during 2021-22 298,873 $ (446,820) $ 745,693 $ Increase (Decrease)
Valuation Date (VD), Measurement Date (MD).
The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The City’s proportionate share of the net pension liability for the miscellaneous Plan as of the June 30, 2021 and 2022:
Miscellaneous
Proportion - June 30, 2021 0.023450%
Proportion - June 30, 2022 0.025450%
Change - Increase (Decrease) 0.002000%
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-48-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
F) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the Local Government’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.9 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.9 percent) or 1 percentage-point higher (7.9 percent) than the current rate:
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.9%) Rate (6.9%) (7.9)%
Plan's Net Pension
Liability/(Asset) $ 1,893,380 $ 1,191,033 $ 613,176
G) Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Net difference between
projected and actual
earnings on pension
plan investments
5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL)
of all members that are provided with
benefits (active, inactive and retired) as of
the beginning of the measurement period
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).
The EARSL for PERF C for the measurement period ending June 30, 2022 is 3.7 years, which was obtained by dividing the total service years of 574,665 (the sum of remaining service lifetimes of the active employees) by 153,587 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-49-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
H) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2021), the City’s net pension liability was $445,340. For the measurement period ending June 30, 2022 (the measurement date), the City incurred a pension expense/(income) of $172,444.
As of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date $ 193,807 $ - Changes of assumptions 122,046 -
Differences between expected and actual experience 7,899 - Changes in employer's proportion 113,752 -
Differences between the employer's contribution and the employer's proportionate share of contributions - 63,557 Differences between projected and actual earnings on
plan investments 218,166 -
Total 655,670 $ $ 63,557
The amounts above are net of outflows and inflows recognized in the 2021-22 measurement period expense. Contributions subsequent to the measurement date of $193,807 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
Fiscal Year Deferred Outflows/
Ending Inflows of
June 30, Resources
2024 111,053 $
2025 97,506
2026 56,308
2027 133,439
I) Payable to the Pension Plan
At June 30, 2023, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year then ended.
Defined Contribution Plan:
The City sponsors the City of Calimesa Public Agency Retirement System (PARS) Defined Contribution Plan for its fire employees. An Eligible Employee shall participate in this Plan if he or she is a full-time Fire Safety Employee of the City on or after September 1, 2017. The City contributes 7.5% of employee compensation annually into the Plan. Employees’ contributions are optional. Each Participant shall be one hundred percent (100%) vested in his or her Employer Contribution Account at all times. During the fiscal year ended June 30, 2023, the City contributed $65,256 to the Plan.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-50-
7) RISK MANAGEMENT
In July 1996, the City became a member of the Public Agency Risk Sharing Authority of California (PARSAC), a consortium of California cities, established in May 1986 to pool resources, share risks, purchase excess insurance and to share costs for professional risk management and claims administration. During fiscal year ended June 30, 2022, PARSAC merged with Redwood Empire Municipal Fund (REMF) and became California Intergovernmental Risk Authority (CIRA). The Authority’s governing board consists of one appointed official and an alternate from each participating city.
General and auto liability, public officials’ errors and omission – The City maintains a selfinsurance program for its general and auto liability, and public officials’ errors and omission.
For liability claims, the City is at risk for up to $10,000 per occurrence; amounts in excess of $10,000 up to $1,000,000 are covered through the California Intergovernmental Risk Authority (CIRA). Amounts in excess of $1,000,000 up to $35,000,000 are covered through additional insurance purchased from third parties by CIRA.
Employment practices liability – The City maintains a self-insurance program for its employment practices liability. For liability claims, the City is at risk for up to $10,000 per occurrence; amounts in excess of $10,000 up to $1,000,000 are covered through the Employment Risk Management Authority (ERMA).
Workers’ compensation – The City maintains workers’ compensation insurance through CIRA.
The City is at risk up to $25,000 per occurrence. Coverage through CIRA is up to $500,000 per claim. Claims in excess of $500,000, up to $5,000,000 are covered by policies purchased by CIRA through third parties.
Property insurance – The City maintains a self-insurance program for its property up to $5,000. Amounts in excess of $5,000 up to $1,000,000 are covered through additional insurance purchased from third parties by CIRA.
Employee dishonesty, theft, fraud – The City maintains employee dishonesty, theft, and fraud insurance through CIRA up to $2,500. Amounts in excess of $2,500 up to $1,000,000 are covered by policies purchased from third parties by CIRA. 8) CONTINGENCIES
The City participates in certain federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any liability for reimbursement which may arise as the result of these audits is not believed to be material.
The City is not involved in any pending lawsuits that may have a material adverse effect on the financial statements of the City.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-51-
9) DISSOLUTION OF REDEVELOPMENT AGENCIES IN CALIFORNIA AND RESULTANT
SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (AB 1X 26) that provides for the dissolution of all redevelopment agencies in the State of California.
Likewise, this action affected the reporting entity of the City of Calimesa in that the former Redevelopment Agency’s financial activities and related disclosures were reported within the City’s government-wide financial statements (blended component unit) as capital project and debt service funds. Timelines established within AB 1X 26 included the dissolution and cessation of redevelopment agencies as of February 1, 2012.
AB 1X 26 prescribes that either the city or another local government entity must serve as the successor agency to the former redevelopment agency. The role of the successor agency is to hold net assets of the former redevelopment agency until they can be transferred to the state or respective county. On February 6, 2012 the City Council adopted Resolution No. 2012-01 which provided for the low-to-moderate income housing functions (LMI) and related net assets of the former Redevelopment Agency to be assumed by the City Council.
Resolution No. 2012-01 of the Calimesa Successor Agency (CSA) was approved which provided for the City to act as the successor agency to the former Redevelopment Agency.
For clarity and ease of financial statement presentation purposes, both the LMI and nonhousing financial activities and net position subsequent to January 31, 2012 are reported as fiduciary funds in these basic financial statements.
In future fiscal years, successor agencies will only be allocated revenue by the State and respective county in amounts necessary to pay installment and/or bonded indebtedness annual payments required by listed enforceable obligations of the former redevelopment agencies which are supported by legally enforceable documents, such as bond indentures and related covenants. These payments will occur until such time that the obligations are paid in full.
The following is a summary of the changes in bonds payable in the Successor Agency Trust Fund for the fiscal year ended June 30, 2023:
Beginning Ending Due Within
Description Balance Additions Deletions Balance One Year Bonds
2014 Series bonds, Refunding 2,145,000 $ $ - $ (115,000) $ 2,030,000 $ 120,000 Deferred amounts
For issuance premium,
relating to 2014 bonds 6,321 - (395) 5,926 -
Total Bonds $ 2,151,321 $ - $ (115,395) $ 2,035,926 $ 120,000
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-52-
9) DISSOLUTION OF REDEVELOPMENT AGENCIES IN CLIFORNIA AND RESULTANT SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, (Continued) 2014 Tax Allocation Refunding Revenue Bonds
In May 2014, the Calimesa Successor Agency (City) issued Calimesa Redevelopment Project No. 1 and Project No. 5 Tax Allocation Refunding Revenue Bonds, Series 2014, in the aggregate principal of $2,925,000.
The bonds are dated May 2014 and are in denominations of $5,000 and bear interest at rates ranging from 2.00% to 4.00%. Principal is payable annually on December 1 beginning on December 2014.
Interest is payable semi-annually on June 1 and December 1 commencing on December 1, 2014. The bonds mature between the time frames of December 1, 2014 and December 2038 in amounts ranging from $60,000 to $920,000.
The annual debt service requirements on the 2014 Bonds are as follows:
Fiscal Year
Ending
June 30, Principal Interest
2024 120,000 $ $ 74,038
2025 125,000 68,038
2026 130,000 64,288
2027 135,000 60,388
2028 135,000 56,169
2029-2033 750,000 207,188
2034-2038 595,000 62,363
2039 40,000 1,600
Total 2,030,000 $ $ 594,072
The bonds were issued to assist the Agency in the financing of redevelopment activities, to fund the Reserve Subaccounts and to pay certain costs relating to the issuance of the bonds.
Per the bond indenture, a reserve is required to be maintained and at June 30, 2023, the amount held in the reserve account was $217,893 which was fully funded. The bonds are payable from and equally and ratably secured by a first pledge of Revenues consisting primarily of certain property tax revenues to be derived from the Project Areas.
Pledged revenues
The Successor Agency pledged 100% of future tax increment revenue (less amounts payable by or required to be set-aside by the Agency under any pass-through agreements and by the amount required to be set-aside for low and moderate housing as required by the California Health and Safety Code) as security for the bonds. While the pledge was originally considered outstanding for the duration of the debt service requirements, the dissolution of redevelopment agencies pursuant to AB 1X26 has led to the practice of the State of California granting annual payments to successor agencies to make the required bond debt services requirements as well as payments for other obligations listed on each agency’s schedule of enforceable obligations.
City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-53-
10) CONDUIT DEBT
The City has previously issued bonds for various Community Facilities Districts under the public improvement act (Mello-Roos Community Facilities Act of 1982) of the State of California to finance the acquisition and construction of certain public facilities servicing property within the respective district boundaries. The bonds are secured by annual special tax levies or liens placed on the property within the district.
The City is not liable for repayment and acts only as an agent for the property owners in collecting the special taxes or assessments, forwarding the collections to bondholders, and initiating foreclosure proceedings when necessary. These bonds are payable solely from special taxes, specific reserves, and the proceeds from property foreclosures to be levied by the district. The outstanding balance of all conduit debt of the City as of June 30, 2023 is as follows:
Issue Name Amounts of Issue Outstanding June 30, 2023
CFD 2012-1 Series 2014 IA1 2,855,000 $ 2,685,000 $
CFD 2013-1 Series 2015 IA1 1,565,000 1,480,000
CFD 2013-1 Series 2016 IA2 1,530,000 1,435,000
CFD 2012-1 Series 2017 IA2 4,205,000 4,030,000
CFD 2018-1 Series 2020 IA1 14,325,000 14,160,000
CFD 2013-1 Series 2020 IA3 3,038,476 3,035,592
11) PRIOR PERIOD RESTATEMENTS
The City has the following prior period restatements in the current year related to the correction of deposit balances and for changes related to the approved last and final ROPS for the Successor Agency.
Changes to governmental fund balances are as follows:
Mitigation Fees
Fund balance, as previously reported 12,346,192 $
Prior period adjustment (112,507)
Fund balance, as restated 12,233,685 $
Changes to governmental net position and fiduciary net position are as follows:
Governmental
Activities
Successor Agency
Trust Fund
Net position, as previously reported 45,526,339 $ (1,930,297) $ Prior period adjustment (112,507) (48,437)
Net position, as restated 45,413,832 $ (1,978,734) $
REQUIRED SUPPLEMENTARY INFORMATION
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City of Calimesa
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Rations – Last 10 Years For the Year Ended June 30, 2023
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Measurement Date
Employer's Proportion
of the Collective Net
Pension Liability1
Employer's
Proportionate Share
of the Collective Net
Pension Liability Covered Payroll
Employer's
Proportionate Share
of the Collective Net
Pension Liability as a
percentage of the
Covered Payroll
Pension Plan's
Fiduciary Net Position
as a percentage of the
Total Pension Liability
June 30, 2014 0.00783% 487,296 $ 610,159 $ 79.86% 79.82% June 30, 2015 0.00710% 487,286 835,197 58.34% 78.40%
June 30, 2016 0.00790% 683,932 697,838 98.01% 74.06%
June 30, 2017 0.00808% 801,322 699,490 114.56% 73.31%
June 30, 2018 0.00789% 760,407 821,901 92.52% 75.26%
June 30, 2019 0.00839% 860,069 802,415 107.19% 75.26%
June 30, 2020 0.00886% 963,472 929,097 103.70% 75.10%
June 30, 2021 0.00823% 445,340 850,713 52.35% 88.29%
June 30, 2022 0.01031% 1,191,033 1,024,657 116.24% 76.88% Notes to the schedule:
*Fiscal year 2015 was the 1st year of implementation, therefore there are fewer than 10 years shown. 1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.
City of Calimesa
Required Supplementary Information
Schedule of Pension Contributions – Last 10 Years
For the Year Ended June 30, 2023
-55-
Fiscal Year
Actuarially Determined
Contribution
Contribution in Relationto
the Actuarially Determined
Contribution
Contribution Deficiency
(Excess) Covered Payroll
Contributions as a
Percentage of Covered
Payroll
June 30, 2015 $ 93,041 $ (93,041) $ - $ 835,197 11.14%
June 30, 2016 82,408 (82,408) - 697,838 11.81%
June 30, 2017 90,337 (90,337) - 699,490 12.91%
June 30, 2018 81,270 (81,270) - 821,901 9.89%
June 30, 2019 99,636 (99,636) - 802,415 12.42%
June 30, 2020 122,260 (122,260) - 929,097 13.16%
June 30, 2021 131,048 (131,048) - 850,713 15.40%
June 30, 2022 156,867 (156,867) - 1,024,657 15.31%
June 30, 2023 193,807 (193,807) - 1,327,901 14.59%
Notes to the schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions were a follows:
Valuation date : 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Actuarial cost method: Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method: (1) (1) (1) (1) (1)
Assets valuation method: Market Value Market Value Market Value Market Value Market Value Inflation: 2.30% 2.50% 2.50% 2.63% 2.75%
Salary increases: (2) (2) (2) (2) (2)
Investment rate of return: 7.15% 7.00% 7.00% 7.25% 7.375% Retirement age: (3) (3) (3) (3) (3)
Mortality: (4) (4) (4) (4) (4)
Valuation date : 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Actuarial cost method: Entry Age Entry Age Entry Age Entry Age Amortization method: (1) (1) (1) (1)
Assets valuation method: Market Value Market Value Market Value 15 Year Smoothed Market Method
Inflation: 2.75% 2.75% 2.75% 2.75%
Salary increases: (2) (2) (2) (2)
Investment rate of return: 7.50% 7.50% 7.50% 7.50%
Retirement age: (3) (3) (3) (3)
Mortality: (4) (4) (4) (4)
(1) Level percentage of payroll, closed
(4) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board. *Fiscal year 2015 was the 1st year of implantation, therefore there are fewer than 10 years shown.
Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
(2) Depending on age, service, and type of employment
(3) 50 for all plans, with the exception of 52 for Miscellaneous PEPRA 2% @62 Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and noninvestment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to
7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
City of Calimesa
Notes to the Required Supplementary Information
For the Year Ended June 30, 2023
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(1) BUDGETARY INFORMATION
The City Council has the responsibility for adoption of the City’s budgets. Budgets are adopted for governmental funds. 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 resolution during each fiscal year. The City Manager is authorized to transfer funds from one major expenditure category to another within the same department and fund. Any revisions that alter the total expenditures of any fund must be approved by the City Council.
All appropriations lapse at the end of the fiscal year to the extent that they have not been expended.
Budgetary comparisons are provided in the accompanying financial statements for all funds with legally adopted budgets. Budget amounts are adopted on a basis consistent with accounting principles accepted in the United States of America.
(2) EXPENDITURES IN EXCESS OF APPROPRIATIONS
The following funds reported an excess of expenditures over appropriations:
Fund
General Fund $ 5,124,159
Housing Rehab - State Special Revenue Fund 840
Amounts over
budget
These expenditures are funded with a combination of excess revenues or by the unassigned fund balances.
City of Calimesa
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
General Fund
For the Year Ended June 30, 2023
-57-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 7,225,400 $ $ 7,940,133 $ 8,157,131 $ 216,998
Licenses and permits 474,752 887,052 975,816 88,764
Fines and forfeitures 30,500 46,700 60,901 14,201
Intergovernmental 19,895 101,950 118,793 16,843
Charges for services 748,376 748,376 747,499 (877)
Development fees 281,300 2,289,415 632,263 (1,657,152)
Developer contributions - - 8,171,860 8,171,860
Investment earnings 20,000 102,200 629,643 527,443
Unrealized loss on investments - - (415,341) (415,341)
Other 15,000 46,000 52,649 6,649
Total revenues 8,815,223 12,161,826 19,131,214 6,969,388
EXPENDITURES
Current:
General government 1,748,401 2,226,978 2,144,416 82,562 Public safety 5,501,316 7,821,553 5,095,472 2,726,081
Public works, parks and senior center 788,071 863,086 8,897,243 (8,034,157) Community services and development 687,291 1,085,536 987,663 97,873 Debt service:
Interest and fiscal charges - - (3,482) 3,482
Total expenditures 8,725,079 11,997,153 17,121,312 (5,124,159) REVENUES OVER EXPENDITURES 90,144 164,673 2,009,902 1,845,229
OTHER FINANCING SOURCES (USES)
Transfers out (1,090,000) (1,113,705) (1,113,705) -
Lease acquisition - - 111,764 111,764
Total other financing sources (uses) (1,090,000) (1,113,705) (1,001,941) 111,764 Net change in fund balance $ (999,856) $ (949,032) 1,007,961 1,956,993 $
FUND BALANCE
Beginning of year 8,743,201
End of year $ 9,751,162
Budget Amounts
City of Calimesa
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Mitigation Fees Special Revenue Fund
For the Year Ended June 30, 2023
-58-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental - $ 18,035,956 $ $ 4,297,800 $ (13,738,156) Charges for services - 200,000 1,400 (198,600)
Development fees 89,050 2,231,825 537,466 (1,694,359)
Investment earnings 27,445 174,975 244,849 69,874
Total revenues 116,495 20,642,756 5,081,515 (15,561,241)
EXPENDITURES
Current:
General government 5,143 414,406 368,427 45,979
Public safety 10,015 10,015 10,015 -
Public works 1,362,985 24,450,718 6,216,224 18,234,494
Library 6,101 72,936 10,789 62,147
Debt service:
Principal 40,375 40,375 40,375 -
Interest and fiscal charges 9,000 10,000 15,014 (5,014) Total expenditures 1,433,619 24,998,450 6,660,844 18,337,606 REVENUES OVER EXPENDITURES (1,317,124) (4,355,694) (1,579,329) 2,776,365
OTHER FINANCING SOURCES (USES)
Transfers in 233,000 732,705 325,000 (407,705)
Total other financing sources (uses) 233,000 732,705 325,000 (407,705) Net change in fund balance $ (1,084,124) $ (3,622,989) (1,254,329) $ 2,368,660
FUND BALANCE
Beginning of year, as retstated 12,233,685
End of year $ 10,979,356
Budget Amounts
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SUPPLEMENTARY INFORMATION
City of Calimesa
Combining Balance Sheet
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
-59-
Supplemental
Law Transportation
Enforcement Housing Rehab - Air Quality
Grant State Library Improvements Gas Tax Measure A
ASSETS
Cash and investments $ 118,087 $ 257,731 $ 412,278 $ 54,069 $ 17,495 $ 664,239 Receivables:
Taxes and other - - - - - -
Intergovernmental - - - 3,635 52,803 56,842
Loans - 710,044 - - - -
Total Assets $ 118,087 $ 967,775 $ 412,278 $ 57,704 $ 70,298 $ 721,081
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 11,272 $ 840 $ 2,533 $ - $ 13,137 $ - Unearned revenues - - 42,497 - - -
Due to other funds - - - - - -
Deposits - - 38,963 - - -
Total Liabilities 11,272 840 83,993 - 13,137 -
Fund Balances:
Restricted 106,815 966,935 328,285 57,704 57,161 721,081 Assigned - - - - - -
Total Fund Balances 106,815 966,935 328,285 57,704 57,161 721,081 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 118,087 $ 967,775 $ 412,278 $ 57,704 $ 70,298 $ 721,081 Special Revenue Funds