Calimesa City Council
December 16, 2024

Regular Meeting of the Calimesa City Council
Monday December 16, 2024

CALL TO ORDER
ROLL CALL: MAYOR MOLINA, MAYOR PRO TEM CERVANTEZ, COUNCIL MEMBER CUNDIEFF, COUNCIL MEMBER GARCIA AND COUNCIL MEMBER MANLY.

STAFF: CITY MANAGER KOLBOW, CITY ATTORNEY BARROW, CITY CLERK

GERDES, FINANCE DIRECTOR REID, PLANNING DIRECTOR LUCIA, INTERIM

PUBLIC WORKS DIRECTOR SHAKIR, CITY ENGINEER THORNTON, FIRE CHIEF O’CONNELL AND SHERIFF CAPTAIN NORTHRUP.

PLEDGE OF ALLEGIANCE

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 16, 2024 – 6:00 p.m.

Norton Younglove Multipurpose Senior Center
908 Park Avenue, Calimesa, CA 92320
Linda Molina, Mayor  Jeff Cervantez, Mayor Pro Tem
Eric Cundieff, Council Member  Edgar Garcia, Council Member  John Manly, 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 16, 2024

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 – 10)
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) There are no minutes ready for approval at this time.

2. RECEIVE AND FILE CITY COMMISSION & BOARD MINUTES.
a) Library Commission action minutes of October 1, 2024 regular meeting. b) Parks, Trails & Community Services Commission action minutes of November 6, 2024 regular meeting.

3. APPROVAL OF WARRANT REGISTERS.
a) Check Register Report with a total of $583,481.37 (Check Nos. 42836 to 42906). b) December 1, 2024 Council Payroll of $1,670.25
December 5, 2024 Payroll of $140,041.28

4. COUNCIL TRAVEL EXPENSES
RECOMMENDATION: That the City Council move to approve the Council Travel Training and Meeting/Mileage Expenses Report through November 30, 2024.

5. SURPLUS OF 1998 WELLS CARGO 15X6 TRAILER – TRANSFER POSESSION TO THE AMERICAN RED CROSS RIVERSIDE COUNTY.

RECOMMENDATION: That the City Council adopt Resolution No. 2024-65, a Resolution of the City Council of the City of Calimesa, California authorizing the City Manager and or his/her designee to release possession of a 1998 Wells Cargo 15x6 Trailer and transfer the same to the American Red Cross Riverside County.

6. COUNCIL APPROVAL OF AN ALLOCATION OF FUNDS TO BE USED FOR THE PURCHASE

OF EQUIPMENT AND SOFTWARE FOR THE PURPOSE OF A SECURE BACKUP SYSTEM OF THE CITY’S COMPUTER NETWORK.

RECOMMENDATION: That the City Council adopt Resolution No. 2024-66, amending the FY 2024- 25 Budget to include an additional appropriation to the Information Technology Account.

7. RECEIVE AND FILE THE FISCAL YEAR 2023-24 ANNUAL AUDITED FINANCIAL STATEMENTS AND RELATED REPORTS.

RECOMMENDATION: That the City Council receive and file the Fiscal Year 2023-24 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

Regular Meeting of the Calimesa City Council
Monday December 16, 2024

Accordance with Government Auditing Standards , and the Auditors’ Communication with Those Charged with Governance (SAS 114), Report on Compliance for the U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds Program (CSLFRF) Requirements for an Alternative CSLFRF Compliance Examination Engagement and Agreed Upon Procedures Applied the Appropriations Limitation Prescribed by Article X111-B of the California Constitution.

8. PROFESSIONAL SERVICES AGREEMENT FOR CONSULTANT SERVICES TO PROVIDE A DEVELOPMENT IMPACT FEE STUDY.

RECOMMENDATION: That the City Council:

1. Approve the professional services agreement with Willdan Financial Services in an amount not-to-exceed $68,310 to provide a Development Impact Fee study and authorize the Mayor to execute the contract on behalf of the City.

2. Adopt Resolution 2024-67, a Resolution of the City of Council of the City of Calimesa, California, Amending the Fiscal Year 2024-25 Budget to include an Adjustment in the Finance Department’s Professional Services Account in the General Fund.

9. CONSULTING AGREEMENT WITH KOSMONT & ASSOCIATES.

RECOMMENDATION: That the City Council:

1. Approve the Agreement with Kosmont & Associates, Inc. and authorize the City Manager to execute the contract on behalf of the City.

2. Adopt Resolution 2024-68, a Resolution of the City Council of the City of Calimesa, California, Amending the FY 2024-25 Budget to Include an Adjustment in the City Manager Professional Services Account in the General Fund.

10. TRANSPORTATION UNIFORM MITIGATION FEE PROGRAM AGREEMENT AMENDMENT 2 TO REIMBURSE TUMF FUNDS FOR I-10/SINGLETON ROAD INTERCHANGE PROJECT.

RECOMMENDATION: That the City Council authorize the Mayor to execute the Transportation Uniform Mitigation Fee Program Agreement Amendment 2 to reimburse TUMF Funds for I10/Singleton Road Interchange Project.

CALIMESA CHAMBER OF COMMERCE REPORT

BUSINESS ITEMS

11. SECOND READING AND ADOPTION OF ORDINANCE 406, AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF CALIMESA, CALIFORNIA, AMENDING THE CALIMESA MUNICIPAL CODE CHAPTER 8.45 REGULATING TO FIREWORKS; AND SECOND READING AND ADOPTION OF ORDINANCE 407, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CALIMESA ADOPTING AMENDMENTS TO THE 2022 EDITION OF THE

CALIFORNIA FIRE CODE RELATED TO OPEN AND OUTDOOR BURNING AND AMENDING TITLE 15 OF THE CALIMESA MUNICIPAL CODE REGARDING THE SAME RECOMMENDATION: That the City Council:

1. Conduct second reading by title only and adopt Ordinance 406, An Ordinance of the City Council of the City of Calimesa, California, Amending the Calimesa Municipal Code Chapter

8.45 Regulating Fireworks.

2. Conduct second reading by title only and adopt Ordinance 407, An Ordinance of the City Council of the City of Calimesa Adopting Amendments to the 2022 Edition of the California

Regular Meeting of the Calimesa City Council
Monday December 16, 2024

Fire Code Related to Open and Outdoor Burning and Amending Title 15 of the Calimesa Municipal Code Regarding the Same.

12. CITY COMMISSION APPOINTMENTS.

RECOMMENDATION:

1. That Mayor Molina, Council Member Cundieff and Council Member Garcia each appoint one member to the Library Commission and that the City Council ratify the appointments by a majority vote and adopt Resolution No. 2024-69 providing for appointments made.

2. That Mayor Molina, Council Member Cundieff and Council Member Garcia each appoint one member to the Parks Trails & Community Services Commission and that the City Council ratify the appointments by a majority vote and adopt Resolution No. 2024-70 providing for appointments made.

3. That Mayor Molina, Council Member Cundieff and Council Member Garcia each appoint one member to the Planning Commission and that the City Council ratify the appointments by a majority vote and adopt Resolution No. 2024-71 providing for appointments made.

13. CITY COUNCIL REGIONAL ORGANIZATION APPOINTMENTS.

RECOMMENDATION: That the City Council review the Council Regional Organization Assignments list and that the Mayor determine and assign the 2025 representatives.

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 Tuesday, January 21, 2025 at 6:00 p.m.

City Council Meeting
Agenda Report
Agenda Item No. 1
SUBJECT: APPROVAL OF CITY COUNCIL MEETING MINUTES
MEETING DATE: December 16, 2024
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk There are no minutes ready for approval at this time.

City Council Meeting
Agenda Report
Agenda Item No. 2
SUBJECT: APPROVAL OF COMMISSION MEETING MINUTES
MEETING DATE: December 16, 2024
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 October 1, 2024 and the Parks, Trails & Community Services Commission Regular meeting of November 6, 2024.

ATTACHMENTS:

Attachment A: Library Commission action minutes of October 1, 2024 Attachment B: Parks, Trails & Community Services action minutes of November 6, 2024

City Council Meeting
Agenda Report
Agenda Item No. 3
SUBJECT: APPROVAL OF WARRANT REGISTER
MEETING DATE: December 16, 2024
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 $583,481.37 (Check Nos.42836-42906) b) December 1, 2024 Council Payroll of $1,670.25
December 5, 2024 Payroll of $140,041.28

City Council Meeting
Agenda Report
Agenda Item No. 4
SUBJECT: COUNCIL TRAVEL, TRAINING AND MEETING/MILEAGE

EXPENSES
MEETING DATE: December 16, 2024
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, 2024.

ATTACHMENTS:

Attachment A: Council Travel, Training and Meeting/Mileage Expenses Report through November 30, 2024.

FISCAL YEAR 2024-25

COUNCIL TRAVEL AND MEETING/MILEAGE EXPENSES
ATTACHMENT 4A
MEETING/MILEAGE 01-1100-7590

DATE DESCRIPTION AMOUNT DATE DESCRIPTION AMOUNT
14-Aug State of District 5 Event $ 100.00
TOTAL TRAVEL/TRAINING $ - TOTAL MEETING/MILEAGE $ 100.00 REMAINING BALANCE $ 1,450.00 REMAINING BALANCE $ 500.00 MEETING/MILEAGE 01-1100-7590

DATE DESCRIPTION AMOUNT DATE DESCRIPTION AMOUNT
8-Jul Cal Cities Riverside Division Mtg $ 60.00
19-Sep Beaumont State of the City $ 75.00
10-Sep Calimesa Chamber Breakfast $ 30.00
9-Oct Banning SOTC $ 90.00
8-Oct Calimesa Chamber Breakfast $ 25.00
TOTAL TRAVEL/TRAINING $ - TOTAL MEETING/MILEAGE $ 280.00 REMAINING BALANCE $ 1,450.00 REMAINING BALANCE $ 320.00

JEFF CERVANTEZ TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585

WENDY HEWITT TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585

FISCAL YEAR 2024-25

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
10-16-10-18 LOCC Annual Conference Hotel $ 555.42 8-Jul Cal Cites Riverside Division Mtg $ 60.00 10-16-20204food expenses $ 40.00 14-Aug State of District 5 Event $ 100.00 17-Oct food expenses $ 57.97 8-Sep Cal Cites Riverside Division Mtg $ 65.00 16-Oct LOCC Riverside Div Lunch $ 80.00 9-Oct Banning SOTC $90.00 TOTAL TRAVEL/TRAINING $ 733.39 TOTAL MEETING/MILEAGE $ 315.00 REMAINING BALANCE $ 716.61 REMAINING BALANCE $ 285.00

LINDA MOLINA TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585

BILL DAVIS TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585

FISCAL YEAR 2024-25

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: SURPLUS OF 1998 WELLS CARGO 15X6 TRAILER – TRANSFER

POSESSION TO THE AMERICAN RED CROSS RIVERSIDE
COUNTY
MEETING DATE: December 16, 2024
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council adopt Resolution No. 2024-65, a Resolution of the City Council of the City of Calimesa, California authorizing the City Manager and or his/her designee to release possession of a 1998 Wells Cargo 15x6 Trailer and transfer the same to the American Red Cross Riverside County.

BACKGROUND: Since on or about the year 1998 the City of Calimesa has owned a 1998 15x6 Wells Cargo trailer that houses Red Cross emergency equipment, such as sleeping cots, blankets and various other emergency supplies. The Riverside County Red Cross on an annual basis comes to the City and inspects the trailer and contents and readies it for potential emergency use. Current city staff is not aware of why a Red Cross trailer was purchased by the City at that time and believes that the trailer should be owned by the Red Cross, as it houses their equipment and is used only by the Red Cross during an emergency. The City has contacted the Riverside County Red Cross, and they are in agreement to the transfer of the equipment from the City of Calimesa to the Red Cross.

The trailer has been sitting in the City Hall parking lot for many years and the tires are in need of replacement. Staff suggests that the tires be replaced on the trailer prior to its removal and transfer to the American Red Cross Riverside County.

FISCAL IMPACT: Cost of the new tires not to exceed $500.00 from 01-5100-7432 Public Works Repair & Maintenance of Vehicles.

ATTACHMENTS:

Attachment A: Agreement for transfer of Equipment
Attachment B: Resolution No. 2024-65

12100-0001/2188148v1 -1-

AGREEMENT
THIS AGREEMENT is made and entered into on December 16, 2024, by and between the CITY OF CALIMESA, a municipal corporation (“City”) and THE AMERICAN NATIONAL RED CROSS (“Red Cross”). The City and RED CROSS are sometimes referred to herein as the “Parties”, and individually as a “Party”.

RECITALS
A. WHEREAS the City desires to surplus equipment (consisting of a used emergency equipment trailer), for use by the Red Cross.

NOW, THEREFORE, in consideration of the Parties’ performance of the promises, covenants, and conditions stated herein, the City and Red Cross hereby covenant, represent and agree as follows:

1. The City shall convey to Red Cross the equuipment listed on in Exhibit A (hereinafter the “Equipment”). Transfer of ownership of the Equipment shall be deemed to have taken place upon execution of this Agreement and transfer of necessary ownership documents.

2. The Equipment shall be conveyed to Red Cross with no warranty, express or implied. The City expressly disclaims any warranties of fitness for purpose and merchantability. The City makes no representation that the Equipment can be used in any capacity. Red Cross shall accept the Equipment in “AS IS” condition. Red Cross releases the City from any and all claims of defect of the Equipment. Red Cross expressly waives any and all rights under Section 1542 of the Civil Code of the State of California, or any other federal or state statutory rights or rules, or principles of common law or equity, or those of any jurisdiction, government, or political subdivision, similar to Section 1542 (“Similar Provision”). Red Cross may not invoke the benefits of Section 1542 or any Similar Provision in order to prosecute or assert in any manner any claims released.

Section 1542 provides as follows:
“A general release does not extend to claims which the
creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

3. Red Cross shall defend, indemnify, and hold harmless the City, its officials, and every officer, employee and agent of the City (collectively the “Indemnitees”) from any claim, liability or financial loss (including, without limitation, attorneys’ fees and costs), injuries to property or persons (including without limitation, attorneys fees’ and costs) arising out of any acts or omissions of Red Cross, its officials, officers, employees or agents in connection with this Agreement, except for such claim, liability or financial loss or damage arising from the sole negligence or willful misconduct of the Indemnitees, as Attachment 5A

12100-0001/2188148v1 -2-
determined by court decision or by the agreement of the Parties. Red Cross shall defend the Indemnitees, at Red Cross’s own cost, expense, and risk, and shall pay and satisfy any judgment, award, or decree that may be rendered against the Indemnitees. Red Cross shall reimburse the Indemnitees for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided.

Red Cross’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Red Cross or the Indemnitees. All duties of Red Cross under this Section shall survive termination of this Agreement.

4. Red Cross shall make and pay for all necessary arrangements for the transportation of the Equipment to its facilities. The arrangements shall include the payment of all taxes, fees or charges and the procurement of all necessary insurance, licenses and permits required in connection with removal of the Equipment from City property and transfer to Red Cross.

5. This Agreement shall be interpreted in accordance with the laws of the State of California and the City of Calimesa without regard to conflict of law principles. In any action arising out of this Agreement, Red Cross consents to personal jurisdiction, and agrees to bring all such actions, exclusively in federal courts located in Los Angeles County, California.

6. If a Party commences any legal, administrative, or other action against the other Party arising out of or in connection with this Agreement, the prevailing Party in such action shall be entitled to have and recover from the losing Party all of its attorneys’ fees and other costs incurred in connection therewith, in addition to such other relief as may be sought and awarded.

7. The City shall not be obligated or liable under this Agreement to any party other than Red Cross.

8. If any part, term or provision of this Agreement is held void, illegal, unenforceable, or in conflict with any law of a federal, state or local government having jurisdiction over this Agreement, the validity of the remaining parts, terms or provisions of the Agreement shall not be affected thereby.
[Signatures begin next page]

12100-0001/2188148v1 -3-
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective duly authorized representatives on the date indicated above.

CITY OF CALIMESA
Will Kolbow
City Manager
ATTEST:

Darlene Gerdes
City Clerk
APPROVED AS TO FORM:

QUINN M. BARROW
City Attorney

THE AMERICAN NATIONAL RED
CROSS
Name: ______________________
Its: _________________________

12100-0001/2188148v1 -4-

EXHIBIT A
EQUIPMENT DESIGNATED AS SURPLUS:

Year, Make & Model: 1998 TW101M - WELLS CARGO 15X6 TRAILER License No:953918
VIN No.: 1WC200D16W4030906

RESOLUTION NO. 2024-65

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALIMESA, CALIFORNIA DECLARING ONE WELLS CARGO 15X6

TRAILER AS SURPLUS PROPERTY AND TRANSFER POSESSION

TO THE AMERICAN NATIONAL RED CROSS RIVERSIDE COUNTY
WHEREAS, Chapter 3.15.170, Surplus supplies and equipment, of the Calimesa Municipal Code, provides that all departments shall submit to the City Manager, at such times and in such form as he/she shall prescribe, reports showing all supplies, materials and equipment which are no longer used, or which have become obsolete or worn out; and
WHEREAS, the City Manager shall have the authority to sale as surplus all supplies, 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 on, new supplies, materials and equipment.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIMESA DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The City Council hereby declares certain property described in Exhibit A, hereto attached, as surplus property.

Section 2. The City Manager is hereby authorized to transfer one Wells Cargo 15x6 trailer to the American National Red Cross Riverside County pursuant to the procedures set forth in Chapter 3.15.170 of the Calimesa Municipal Code.

PASSED, APPROVED AND ADOPTED this 16th day of December 2024. _____________________________________

LINDA MOLINA, MAYOR
ATTEST:
_________________________________________

DARLENE GERDES, CITY CLERK
Attachment 5B

EXHIBIT A
RESOLUTION NO. 2024-65
EQUIPMENT DESIGNATED AS SURPLUS:

Year, Make & Model: 1998 TW101M - WELLS CARGO 15X6 TRAILER License No:953918
VIN No.: 1WC200D16W4030906

City Council Meeting
Agenda Report
Agenda Item No. 6
SUBJECT: COUNCIL APPROVAL OF AN ALLOCATION OF FUNDS TO BE

USED FOR THE PURCHASE OF EQUIPMENT AND SOFTWARE

FOR THE PURPOSE OF A SECURE BACKUP SYSTEM OF THE
CITY’S COMPUTER NETWORK.

MEETING DATE: December 16, 2024
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council adopt Resolution No. 2024-66, amending the FY 2024-25 Budget to include an additional appropriation to the Information Technology Account.

BACKGROUND: The City of Calimesa entered into an agreement with Active IT Solutions on October 1, 2024 for Managed Information Technology Support Services. The transition from our previous IT provider has been completed and Active IT Solutions, as a result, has created a Remediation Plan. The Remediation Plan indicates the need for the purchase of equipment and software that will provide expansive cyber security and full protection backups for the city-wide computer network. The software and equipment comes with a 36-month agreement at a cost of $17,400 annually.

Funds for the necessary equipment and software were not included in the Fiscal Year 2024-2025 budget and therefore staff is requesting an amendment to the Information Technology Account to provide funds in the amount of $8,700 to provide the funds necessary for the months of January – June 2025.

FISCAL IMPACT: The FY 2024-25 General Fund Budget requires an amendment to include an appropriation of $8,700 to the Information Technology Department Fund 2100-7230 Other Contract Services.

ATTACHMENTS:

Attachment A: Resolution No. 2024-66

RESOLUTION 2024-66

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALIMESA CALIFORNIA, AMENDING THE FY 2024-25 BUDGET

TO INCLUDE AN ADJUSTMENT IN INFORMATION

TECHNOLOGY IN THE GENERAL FUND
WHEREAS, the City of Calimesa entered into an agreement with Active IT Solutions on October 1, 2024 for Managed Information Technology Support Services; and WHEREAS, it is the intent of the City to provide expansive cyber security and full protections to its computer network with the purchase of appropriate equipment and software.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIMESA HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:

The Fiscal Year 2024-25 General Fund Budget is hereby amended as follows:
• Increase appropriations in account 01-2100-7230 by $9,000.

PASSED, APPROVED, and ADOPTED this 16th day of December 2024. _____________________________________

LINDA MOLINA, MAYOR
ATTEST:
_________________________________

DARLENE GERDES, CITY CLERK
Attachment 6A

CITY COUNCIL MEETING

AGENDA REPORT
Agenda Item No. 7
SUBJECT: RECEIVE AND FILE THE FISCAL YEAR 2023-24 ANNUAL AUDITED

FINANCIAL STATEMENTS AND RELATED REPORTS
MEETING DATE: December 16, 2024
PREPARED BY: Celeste Reid, Finance Director and Treasurer RECOMMENDATION: That City Council receive and file the Fiscal Year 2023-24 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), Report on Compliance for the U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds Program (CSLFRF) Requirements for an Alternative CSLFRF Compliance Examination Engagement and Agreed Upon Procedures Applied the Appropriations Limitation Prescribed by Article X111-B of the California Constitution.

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, 2024. 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 and related reports have been electronically provided to the City’s Finance Committee on December 5, 2024. All reports will be made available to the public on the City’s website on or before December 31, 2024. A review of fiscal information through June 30, 2024, and the City’s updated financial information for Fiscal Year 2024-25 will be provided at the mid-year budget review in February 2025.

FISCAL IMPACT: There is no fiscal impact associated with the recommended actions.

ATTACHMENTS:

Attachment A: Annual Audit Report and Financial Statements for the year ended June 30, 2024 and 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 B: Auditors’ Communication with Those Charged with Governance (SAS 114) for the year ended June 30, 2024
Attachment C: Report on Compliance for the U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds Program (CSLFRF) Requirements For an Alternative CSLFRF Compliance Examination Engagement Attachment D: Agreed Upon Procedures Applied the Appropriations Limitation Prescribed by Article X111-B of the California Constitution

City of Calimesa
Calimesa, California
Annual Audit Report and
Financial Statements
For the year ended June 30, 2024
Attachment 7A

This page intentionally left blank

City of Calimesa
Annual Audit Report and Financial Statements
For the Year Ended June 30, 2024
-iTable of Contents
Page
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 ..... 55 Schedule of Pension Contributions – Last 10 Years ........................................................... 56 Budgetary Information ......................................................................................................... 57 Schedule of Revenues, Expenditures and Changes in Fund Balances:

General Fund ................................................................................................................ 58 Mitigation Fees Special Revenue Fund ........................................................................ 59

City of Calimesa
Annual Audit Report and Financial Statements
For the Year Ended June 30, 2024
-iiSupplementary Information:

Non-Major Governmental Funds:

Combining Balance Sheet ............................................................................................. 60 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .... 62 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Supplemental Law Enforcement Grant Special Revenue Fund .............................. 64 Housing Rehab – State Special Revenue Fund ....................................................... 65 Library Special Revenue Fund ................................................................................ 66 Transportation Air Quality Improvement Special Revenue Fund ............................ 67 Gas Tax Special Revenue Fund ............................................................................. 68 Measure A Fund – Budgetary Basis Special Revenue Fund ................................... 69 Lighting/Landscape District Special Revenue Fund ................................................ 70 Recycling Special Revenue Fund ........................................................................... 71 Housing Rehab – Federal Special Revenue Fund ................................................... 72 Road Maintenance and Rehab Special Revenue Fund .......................................... 73 Capital Projects Including ARPA Capital Projects Fund ........................................... 74 Traffic Improvement Fees Capital Projects Fund .................................................... 75 General Capital Projects Capital Projects Fund ........................................................ 76 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 ........................................................................................ 77

735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net

PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
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 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, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying 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 entity, as of June 30, 2024, 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 (Government Auditing Standards). 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.

-2-
Responsibilities of Management for the Financial Statements 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.

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 and Government Auditing Standards 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 and Government Auditing Standards, 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.

-3-
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison 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 GAAS, 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 combining and individual nonmajor fund financial statements, 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. Such 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. The 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 GAAS. In our opinion, the accompanying 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 9, 2024 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 the City’s 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 9, 2024

This page intentionally left blank

City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2024
-4-
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, 2024. 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, 2024, the City assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $63.5 million. Approximately 60% 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 $7.2 million.  At June 30, 2024, the City’s governmental funds reported combined ending fund balance of $26.2 million, an increase of approximately $1.6 million compared to prior fiscal year.  At June 30, 2024, the City’s general fund reported ending fund balance of $9.4 million, a decrease of approximately $358,000 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, 2024
-5-
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 16 governmental funds. The major governmental funds are the General Fund, Mitigation Fees Fund, Capital Projects Including American Rescue Plan Act (ARPA) Capital Projects Fund and the Traffic Improvement Fees 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, 2024
-6-
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 Community Facility 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) and mitigation fees collected on behalf of the Western Riverside County Regional Conservation Authority and 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, 2024
-7-

GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following table shows the condensed comparative Statement of Net Position for the fiscal years ended June 30, 2024 and 2023.
2024 2023
Assets:

Cash and investments $ 26,893,310 $ 24,010,182
Other assets 4,467,328 7,593,804
Capital assets, net 39,537,288 32,781,702
Total Assets 70,897,926 64,385,688
Deferred Outflows of Resources:

Deferred outflow - pension related 640,994 655,670
Total Deferred Outflows of Resources 640,994 655,670
Liabilities:

Other liabilities 5,210,413 7,061,695
Long-term liabilities 2,840,481 1,691,696
Total Liabilities 8,050,894 8,753,391
Deferred Inflows of Resources:

Deferred inflow - pension related amounts 30,340 63,557 Total Deferred Inflows of Resources 30,340 63,557
Net Position:

Net Investment in Capital Assets 38,255,473 32,474,109
Restricted 16,741,233 14,729,179
Unrestricted 8,460,980 9,021,122
Total Net Position $ 63,457,686 $ 56,224,410
Comparative Statements of Net Position
June 30, 2024 and 2023
Governmental Activities

City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2024
-8-
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 $63 million. This is an increase of $7 million or 13% 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, $38 million, or 60%, is net 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 $1.3 million with relation to capital assets.

Another portion of the City’s Net Position, $16.7 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 $8.5 million, or 13%, 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 increased by $2.9 million from the prior year.

City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2024
-9-
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, 2024 and 2023. 2024 2023
Revenues:

Program revenues:

Charges for services $ 1,193,168 $ 1,814,613
Operating grants and contributions 2,042,107 1,775,554
Capital grants and contributions 6,190,905 14,327,951
Total program revenues 9,426,180 17,918,118
General revenues:

Taxes:

General property taxes 4,671,922 4,510,964
Sales tax 1,677,534 1,630,565
Motor vehicle in-lieu 1,555,252 1,465,476
Franchise fees 600,897 577,334
Transient occupancy tax 58,549 77,853
Business Licenses 47,090 42,663
Unrestricted investment earnings 960,773 974,126
Unrealized loss on investments 316,186 (415,341)
Other 44,063 34,008
Total general revenues 9,932,266 8,897,648
Total Revenues 19,358,446 26,815,766
Expenses:

General government 2,232,306 3,787,958
Public safety 5,924,033 5,244,572
Public works, parks and senior center 3,277,504 5,757,854 Community development 622,716 1,041,731
Library 34,133 32,890
Interest on long-term liabilities 34,478 11,532
Total Expenses 12,125,170 15,876,537
Increase in net position 7,233,276 10,939,229
Net position - beginning of year, as previously reported 56,224,410 45,413,832 Adjustment - correction of an error - (128,651)
Net position - beginning of year, as restated 56,224,410 45,285,181 Net position - ending $ 63,457,686 $ 56,224,410
Comparative Statements of Activities and Changes in Net Position For the years ended June 30, 2024 and 2023
Governmental Activities

City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2024
-10-
GOVERNMENT-WIDE FINANCIAL ANALYSIS, (Continued)
The City’s expenses totaled $12.1 million in fiscal year 2023-24. These expenses were funded by program revenues of $9.4 million and general revenues of $9.9 million. This resulted in an increase in Net Position of $7.2 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 $621,000 due to a decrease in development related activity including reduction in revenues for building permits. Operating Grants and Contributions increased by $266,000 due to a larger distribution from the Public Services Community Facilities District Fund. Capital grants and contributions decreased by $8 million due to a reduction from prior year of $8.2 million of contributed infrastructure capital from development. Overall, program revenues decreased by $8.5 million.

General Revenues – The overall increase from the prior year is approximately $1 million or 12%.

Significant increases include $160,000 or 4% in property taxes, $90,000 or 6% in motor vehiclelieu taxes, $47,000 or 3% increase in sales taxes and $718,000 in investment earnings of which includes unrealized gains from the prior year.

Expenses – The overall decrease from the prior year is approximately $3.7 million or a 24% decrease. Significant decreases include $1.6 million in general government and $2.5 million in public works, parks and senior center and $419,000 in Community Development with a net increase of $680,000 in public safety.

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, 2024, the City’s combined governmental fund balances were $26.2 million, an increase of $1.6 million, or 7%, over the prior fiscal year. Of this amount, approximately $16.8 million represents nonspendable and restricted fund balance, $3.1 million represents committed fund balance, and $160,000 represents assigned fund balance. The balance represents unassigned fund balance of $6.1 million.

City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2024
-11-
FUND FINANCIAL ANALYSIS, (Continued)
The City’s governmental revenues in fiscal year 2023-24 were $19.4 million, which is a decrease of $7.4 million from the prior year. Significant variations include a reduction from the prior year contributed infrastructure capital of $8.2 million which was offset by unrealized gain activity of approximately $718,000. It should be noted both variations are based on technical accounting principles and relate to one-time activity. The City had other variances in several other revenue categories however, the net impact was minimal.

The City’s governmental expenditures in fiscal year 2023-24 were $18.8 million, a decrease of $7.8 million from fiscal year 2022-23. Significant variations include a reduction from the prior year of $8.2 million for contributed infrastructure capital, as well as a reduction in activity of $2.9 million capital street improvement projects and the building of the City Hall expansion, overall reductions in General Government of $137,000 and Community Development of $450,000 from the prior year. The reductions were offset by public safety increases of $3.9 million which includes the placed into service Fire Department Ladder Truck, Monarch Pumper and Command Vehicles 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, 2024, the General Fund had a total fund balance of $9.4 million which consisted of nonspendable fund balance of $62,000, committed fund balance of $3.1 million representing amounts set aside by City Council for emergencies and economic stability, calculated as 30% of annual operating expenditures and committed fund balance for equipment replacement, calculated as 5% of annual operating expenditures, assigned fund balance for insurance of $127,000, and unassigned fund balance of $6.1 million.

The net change in the fiscal year 2023-24 fund balance of the City’s General Fund decreased by $357,000. Revenues exceeded expenditures by $35,000, while other financing sources and uses of resulted in a net decrease of $393,000. Revenues decreased by $6.4 million and expenditures decreased by $4.4 million from the prior year.

The decrease in revenues of $6.4 million over prior year was a result of increases in most revenue categories with two offsetting decreases. The increase in categories include $300,000 in taxes, $234,000 intergovernmental revenue, $269,000 charges for services. $1.3 in developer fees, investment earnings of $427,000 over prior year. The decreases related to contributed infrastructure capital of $8.2 million and a reduction in license and permit revenues of $758,000.

City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2024
-12-
FUND FINANCIAL ANALYSIS, (Continued)
General Fund, (Continued)
The decrease in expenditures of $4.4 million is a result of development contributed infrastructure capital of $8.2 million reduction from prior year, with a reduction in community development of $400,000 for a total of $8.6 in reductions. The $4.2 million increases relate to General Government increases of $231,000 and $4 million in public safety which includes the Fire Department Ladder Truck, Monarch Pumper and Command Vehicles.

Mitigation Fees – Special Revenue Fund
The Mitigation Fee Fund accounts for revenue from development impact fees and grants to be used for facilities including 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 activity for Mitigation Fees for Traffic Improvements fees (see below) has been segregated out from the total Mitigation fees fund as this fund primarily reports significant capital projects for streets and interchange improvements.

Overall, remaining Mitigation Fees resulted in an increase in fund balance of $109,000 with a total fund balance of $10.5 million. The most significant activity in the fund was in relation to the storm drain flood control fund with $3 million in revenue from intergovernmental agency and $3 million in related expenditures to acquire right of way land.

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 and other funded projects for the City that are primarily funded through the general fund contributions or other special revenue funds for specific purpose to projects. The total amount of ARPA revenue for fiscal year 2023-24 is $566,000 with a remaining balance of $350,532 reported as unearned revenue as of June 30, 2024. It is anticipated the balance of ARPA funding will be utilized for the citywide pavement management program with funds obligated for this purpose as of December 31, 2024. The total fund balance as of June 30, 2024, is $1.8 million.

Traffic Improvement Fees – Capital Projects Fund
The Traffic Improvement Fees – Capital Projects Fund accounts for funding from Mitigation Fee Revenue as well as most other sources of intergovernmental agency revenue, grants revenue and developer contribution and expenditures as they relate to capital projects for significant interchange improvements, major street improvements and streets maintenance. This fund had previously been combined with Mitigation Fees – Special Revenue reporting, however due to the significant nature of the activity in the fund, it was determined to report this as a major fund. Total fund balance as of June 30, 2024 is $878,000.

City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2024
-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 2023-24 was increased by $1.8 million for revenue and $3.8 million 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 of $875,000 and actual expenditures have variances of $810,000. It should be noted the City Council approved as a part of the annual budget process, certain appropriations budgeted for in fiscal year 2023-24 may be re-budgeted to fiscal year 2024-

25. 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, 2024, the City’s capital assets used in governmental activities amounted to $39.5 million, net of depreciation.

Capital assets for governmental activities are presented below to illustrate changes from prior fiscal year:
2024 2023
Land 5,609,531 $ $ 2,553,184
Construction in Progress 8,859,247 7,971,218
Buildings and Improvements 5,288,504 5,113,086
Infrastructure:

Road Network 23,119,665 23,119,665
Machinery and equipment 5,247,852 1,363,169
Right-to-use assets - equipment 113,918 113,918
Right-to-use assets - subscriptions 106,469 -
Capital assets before depreciation 48,345,186 40,234,240 Less: accumulated depreciation (excludes land) (8,807,898) (7,452,538) Total net capital assets $ 39,537,288 $ 32,781,702
Governmental Activities
Additional information on capital assets can be found in Note 4 to the Basic Financial Statements.

Long-term Obligations
At June 30, 2024, the City had long-term debt outstanding of $1.5 million. 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, 2024
-14-
CAPITAL ASSETS AND LONG-TERM OBLIGATIONS (Continued)
Long-term Obligations (Continued)
The City’s long-term debt obligations at June 30, 2024 and 2023 were as follows:
2024 2023
Compensated absences $ 263,070 $ 193,070
Finance purchase agreements 1,106,238 222,103
Lease liabilities 58,282 85,490
Subscription liabilities 98,171 -
Total
$ 1,525,761 $ 500,663
Governmental Activities
Not included in the above total outstanding debt amount is the Successor Agency Trust. At June 30, 2024, there was $1.92 million 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 2024-25 recognized that:
 The adopted budget reflects cautious and moderate revenue estimates given variable factors in local economic and inflationary projections and anticipated timing of planned development.
 The City continues to focus opportunity to increase 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 park improvements, traffic projects, fund public safety, and recycling measures.  The City will have progress in several infrastructure and street improvement projects including the County Line corridor improvement plan, traffic interchange projects, and park improvements.
 The adopted fiscal year 2024-25 budget projected an approximate 78% General Fund reserve level at June 30, 2024, which is above the Council approved policy of 35%.

City of Calimesa
Management Discussion and Analysis
For the Year Ended June 30, 2024
-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

This page intentionally left blank

GOVERNMENT WIDE FINANCIALS

This page intentionally left blank

City of Calimesa
Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -16-
Governmental
Activities
Assets
Cash and investments 26,893,310 $
Receivables:

Taxes and other 556,126
Intergovernmental 1,041,663
Interest 354,001
Loans 856,398
Retentions 1,498,333
Prepaid expenses 62,105
Due from the Successor Agency 98,702
Capital assets not being depreciated 14,468,778
Capital assets being depreciated, net 25,068,510
Total Assets 70,897,926
Deferred Outflows of Resources
Deferred outflow - pension related 640,994
Total Deferred Outflows of Resources 640,994
Liabilities
Accounts payable 2,053,994
Retentions payable 419,065
Accrued payroll 131,469
Unearned revenue 1,889,394
Deposits 697,367
Interest payable 19,124
Noncurrent liabilities:

Due within one year 259,657
Due in more than one year 1,266,104
Net pension liability 1,314,720
Total Liabilities 8,050,894
Deferred Inflows of Resources
Deferred inflows - pension related 30,340
Total Deferred Inflows of Resources 30,340
Net Position
Net investment in capital assets 38,255,473
Restricted:

Legally restricted - Street and Road Improvements 1,056,500 Regulatory/grant restrictions 5,128,409
Legally restricted - Development Impact fees 10,556,324 Unrestricted 8,460,980
Total Net Position $ 63,457,686

City of Calimesa
Statement of Activities
For the Year Ended June 30, 2024
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 2,232,306 $ 439,931 $ - $ $ - $ 439,931 $ (1,792,375) Public safety 5,924,033 285,091 1,074,452 1,861,800 3,221,343 (2,702,690) Public works, parks and senior center 3,277,504 468,146 920,103 4,329,105 5,717,354 2,439,850 Community services and
development 622,716 - - - - (622,716)
Library 34,133 - 47,552 - 47,552 13,419
Interest on long-term liabilities 34,478 - - - - (34,478) Total governmental activities $ 12,125,170 $ 1,193,168 $ 2,042,107 $ 6,190,905 $ 9,426,180 (2,698,990) Taxes:

Property 4,671,922
Sales 1,677,534
1,555,252
Franchise fees 600,897
58,549
47,090
Total taxes 8,611,244
960,773
316,186
Other 44,063
9,932,266
7,233,276
Net position - beginning of year, as previously reported 56,353,061 Adjustment - correction of an error (128,651)
Net position - beginning of year, as restated 56,224,410 Net position - end of year $ 63,457,686
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

This page intentionally left blank

-18-

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.

Traffic Improvement Fees Capital Projects Fund accounts for funding from Mitigation Fee Revenue as well as most other sources of intergovernmental agency revenue, grants revenue and developer contribution and expenditures as they relate to capital projects for significant interchange improvements, major street improvements and street maintenance. This fund had previously been combined with Mitigation Fees – Special Revenue reporting, however due to the significant nature of the activity in the fund, it was determined to report this as a separate fund.

Non-Major Governmental Funds is the aggregate of all the non-major governmental funds.

City of Calimesa
Balance Sheet
Governmental Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -19-
Total Nonmajor Total
Capital Projects Traffic Governmental Governmental
General Mitigation Fees Including ARPA Improvement Fees Funds Funds ASSETS
Cash and investments 9,893,300 $ 10,614,654 $ 2,913,610 $ 902,976 $ $ 2,568,770 $ 26,893,310 Receivables:

Taxes and other 503,089 - - - 53,037 556,126
Intergovernmental - 172,135 - 626,337 243,191 1,041,663 Interest 354,001 - - - - 354,001
Loans - - - - 856,398 856,398
Retentions - - - 1,498,333 - 1,498,333
Prepaid expenses 62,105 - - - - 62,105
Due from other funds 80,506 - - - - 80,506
Due from the Successor Agency 98,702 - - - - 98,702
Total Assets $ 10,991,703 $ 10,786,789 $ 2,913,610 $ 3,027,646 $ 3,721,396 $ 31,441,144

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCE
Liabilities:

Accounts payable $ 941,725 $ 230,465 $ 620,130 $ 209,955 $ 51,719 $ 2,053,994 Retentions payable - - 107,152 310,050 1,863 419,065
Accrued payroll 131,469 - - - - 131,469
Unearned revenues 21,326 - 350,532 1,473,690 43,846 1,889,394 Due to other funds - - - - 80,506 80,506
Deposits 502,404 - - 156,000 38,963 697,367
Total Liabilities 1,596,924 230,465 1,077,814 2,149,695 216,897 5,271,795 Deferred Inflows of Resources:

Unavailable revenues 1,500 - - - - 1,500
Total Deferred Inflows of Resources 1,500 - - - - 1,500

FUND BALANCES
Nonspendable 62,105 - - - - 62,105
Restricted - 10,556,324 1,835,796 877,951 3,471,162 16,741,233 Committed for:

Emergencies and economic stabilization 2,632,926 - - - - 2,632,926 Equipment replacement 438,821 - - - - 438,821
Assigned for:

Capital projects - - - - 33,337 33,337
Insurance 127,484 - - - - 127,484
Unassigned 6,131,943 - - - - 6,131,943
Total Fund Balance 9,393,279 10,556,324 1,835,796 877,951 3,504,499 26,167,849 Total liabilities, deferred inflows of resources
and fund balance $ 10,991,703 $ 10,786,789 $ 2,913,610 $ 3,027,646 $ 3,721,396 $ 31,441,144 Major Funds

City of Calimesa
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -20-
Fund balance of governmental funds $ 26,167,849
net position (page 16) are different because:

Capital assets not being depreciated 14,468,778 $
Capital assets being depreciated, net 25,068,510 39,537,288 1,500
640,994
(30,340)
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds:

Compensated absences (263,070)
Interest payable (19,124)
Finance purchase agreement - fire engine (180,436)
Finance purchase agreement - pumper (925,802)
Lease liabilities (58,282)
Subscription liabilities (98,171)
Net pension liability (1,314,720) (2,859,605)
Net position of governmental activities $ 63,457,686
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 Balances For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -21-
Total Nonmajor Total
Capital Projects Traffic Governmental Governmental
General Mitigation Fees Including ARPA Improvement Fees Funds Funds

REVENUES
Taxes $ 8,461,042 $ - $ - $ - $ 105,863 $ 8,566,905
Licenses and permits 218,247 - - - - 218,247
Fines and forfeitures 106,373 - - - - 106,373
Intergovernmental 353,110 3,012,476 566,924 852,428 1,294,918 6,079,856 Charges for services 1,016,892 - - 8,400 - 1,025,292
Development fees 1,917,225 - - 141,381 - 2,058,606
Investment earnings 324,324 430,651 80,834 23,894 101,068 960,771 Unrealized loss on investments 316,186 - - - - 316,186
Other 28,268 - - - - 28,268
Total Revenues 12,741,667 3,443,127 647,758 1,026,103 1,501,849 19,360,504

EXPENDITURES
Current:

General government 2,375,493 5,984 - - 53,199 2,434,676 Public safety 9,012,513 11,368 - - 155,713 9,179,594
Public works, parks and senior center 734,690 3,370,096 698,189 990,658 680,207 6,473,840 Community services and development 583,125 - - - 1,270 584,395 Library - 5,184 - - 28,949 34,133
Debt service:

Principal - 41,667 - - - 41,667
Interest and fiscal charges - 15,354 - - - 15,354
Total Expenditures 12,705,821 3,449,653 698,189 990,658 919,338 18,763,659 Excess of Revenues Over Expenditures 35,846 (6,526) (50,431) 35,445 582,511 596,845

OTHER FINANCING SOURCES (USES)
Transfers in - 161,000 1,220,000 310,000 90,000 1,781,000 Transfers out (1,426,000) (45,000) - - (310,000) (1,781,000) Issuance of debt 925,802 - - - - 925,802
Subscription acquisition 106,469 - - - - 106,469
Total Other Financing Sources (Uses) (393,729) 116,000 1,220,000 310,000 (220,000) 1,032,271 Net Change in Fund Balances (357,883) 109,474 1,169,569 345,445 362,511 1,629,116 Fund Balances, Beginning of year, as previously stated 9,751,162 10,979,356 666,227 - 3,270,639 24,667,384 Restatement - (532,506) - 532,506 (128,651) (128,651)
Fund Balances, Beginning of year, as restated 9,751,162 10,446,850 666,227 532,506 3,141,988 24,538,733 Fund Balances, End of year $ 9,393,279 $ 10,556,324 $ 1,835,796 $ 877,951 $ 3,504,499 $ 26,167,849 Major Funds

City of Calimesa
Reconciliation of the Statements of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -22-
Net change in fund balances - governmental funds $ 1,629,116 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. 8,135,444 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. (1,379,858)
reported as revenues in the funds. (2,058)
funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 195,785
however, pension expense is not recognized in the governmental funds. (300,931) 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 Government-Wide Statement of Net Position:

Long-term debt repayments 77,173
Issuance of debt (925,802)
Subscription acquisition (106,469)
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. (89,124)
Change in net position of governmental activities $ 7,233,276 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, Amounts reported for governmental activities in the statements of activities are different

-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, 2024
The accompanying notes are an integral part of these financial statements. -24-
Successor
Custodial Agency Trust
Funds Fund
ASSETS
Cash and investments 4,863,177 $ 305 $
Cash and investments with fiscal agent - restricted 2,110,044 229,956 Receivables:

Assessments 10,944 -
Total Assets 6,984,165 230,261

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 65,634
Total Deferred Outflows of Resources - 65,634

LIABILITIES
Accounts payable 46,646 -
Deposits 20,234 -
Unearned revenue - 6,000
Interest payable - 39,689
Due to City of Calimesa - 98,702
Noncurrent liabilities:

Due within one year - 125,000
Due in more than one year - 1,790,556
Total Liabilities 66,880 2,059,947

NET POSITION
Restricted
Debt service 6,912,849 229,956
Multiple Species Habitat Conservation Plan 4,436 -
Unrestricted (Deficit) - (1,994,008)
Total Net Position (Deficit) 6,917,285 $ (1,764,052) $

City of Calimesa
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -25-
Successor
Custodial Agency Trust
Funds Fund

ADDITIONS
Special assessments 3,081,974 $ - $
Redevelopment Property Tax Trust Fund distributions - 209,070 Investment earnings 260,443 11,889
Fees collected on behalf of other agencies 3,723 -
Miscellaneous 82,624 -
Total Additions 3,428,764 220,959

DEDUCTIONS
Administration 71,843 10,650
Debt service payments 1,338,245 73,043
Professional services and financial services 1,532,554 - Disbursement of fees to other agencies 3,730 -
Total Deductions 2,946,372 83,693
Change in Net Position 482,392 137,266
Net Position (Deficit), Beginning 6,434,893 (1,901,318) Net Position (Deficit), Ending 6,917,285 $ (1,764,052) $

NOTES TO BASIC FINANCIAL STATEMENTS

This page intentionally left blank

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-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, 2024
-27-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) B) Government-wide and Fund Financial Statements, (Continued) The Traffic Improvement Fees Capital Projects Fund is used to accounts for funding from Mitigation Fee Revenue as well as most other sources of intergovernmental agency revenue, grants revenue and developer contribution and expenditures as they relate to capital projects for significant interchange improvements, major street improvements and street maintenance.

This fund had previously been combined with Mitigation Fees – Special Revenue reporting, however due to the significant nature of the activity in the fund, it was determined to report this as a separate fund.

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.

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-28-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) C) Measurement Focus, Basis of Accounting, and Financial Presentation, (Continued) 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.

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.

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-29-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) D) Assets, Liabilities and Net Position or Equity, (Continued) 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.

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 2023-24.

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, 2024
-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, 2024
-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, 2024
-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, 2024, net investment in capital assets consisted of $39,537,288 of capital assets, net of depreciation less $1,281,815 of long-term debt and accrued interest, for a total of $38,255,473.

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, 2024
-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, 2024
-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 assets 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 assets 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 2024, the City adopted new accounting standards to conform to the following Governmental Accounting Standards Board Statements:

GASB Statement No. 100 – Accounting Changes and Error Corrections: The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023.

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-35-
2) CASH AND INVESTMENTS
Cash and investments as of June 30, 2024, are classified in the accompanying financial statements as follows:

Government Fiduciary
Activities Fund Total
Cash and investments 26,893,310 $ $ 4,863,482 $ 31,756,792 Cash and investments with fiscal agent - 2,340,000 2,340,000 Total cash and investments $ 26,893,310 $ 7,203,482 $ 34,096,792 Cash on hand $ 400
Deposits with financial institution 1,440,087
Local Agency Investment Funds 26,816,305
Certificates of Deposit 3,500,000
Cash and investments with fiscal agent 2,340,000
Total cash and investments $ 34,096,792
A) Deposits
The carrying amount of the City’s cash deposit was $1,440,087 at June 30, 2024. Bank balances before reconciling items were $1,471,498 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, 2024
-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.

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.

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-37-
2) CASH AND INVESTMENTS, (Continued)
B) Investments, (Continued)
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) 26,816,305 $ 26,816,305 $ Certificates of Deposit 3,500,000 3,500,000
Total Investments 30,316,305 $ 30,316,305 $

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-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, 2024 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, 2024
-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, 2024, the City had $26,816,305 invested in LAIF, which had invested 1.40% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 1.46% in the previous year. The remaining 98.60% of the pool investment funds were invested in United States Treasury Bills and Notes (59.76%), Federal Agency Discount Notes (14.73%), Certificates of Deposit (8.40%), Long Term Commercial Paper (5.68%), Federal Agency Debentures (7.73%), and other allowable investments (3.70%).

The LAIF fair value factor of 0.9963316042 was used to calculate the fair value of the investments in LAIF, resulting in in the following investment income in all funds:

Interest income $ 960,771
Unrealized gain/(loss) in changes in fair value of investments 316,186 Total investment income (loss) $ 1,276,957
3) INTERFUND TRANSACTIONS
A) Interfund Transfers
The composition of interfund transfers for the fiscal year ended June 30, 2024 were as follows:

Non Major
Capital Projects Traffic Governmental
Mitigation Fees Including ARPA Improvement Fees Funds Total Major Fund:

General Fund $ 161,000 $ 1,175,000 $ - $ 90,000 $ 1,426,000 Mitigation Fees - 45,000 - - 45,000
Nonmajor
Governmental Funds - - 310,000 - 310,000
Total $ 161,000 $ 1,220,000 $ 310,000 $ 90,000 $ 1,781,000 Transfers In
Transfers Out

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-40-
3) INTERFUND TRANSACTIONS, (Continued)
A) Interfund Transfers, (Continued)
The transfers which occurred were: Combined $90,000 from General Fund to Nonmajor Governmental Funds, $1,220,000 from the General Fund and Mitigations fees fund to the Capital Projects Including ARPA Fund, $161,000 from the General Fund to the Mitigation Fees Fund and $310,000 from the Nonmajor Governmental Funds to the Traffic Improvement Fees Fund. The transfers were to fund for capital projects.

B) Due to/from Other Funds
The General Fund reported due from Nonmajor Governmental Funds of $80,506 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, 2024 is as follows:

Beginning Ending
Balance Additions Deletions Balance
Governmental Activities:

Capital assets not being depreciated:

Land $ 2,553,184 $ 3,056,347 $ - $ 5,609,531
Construction in progress 7,971,218 888,029 - 8,859,247
Total capital assets not being depreciated 10,524,402 3,944,376 - 14,468,778 Capital assets being depreciated/amortized:

Building and improvements 5,113,086 175,418 - 5,288,504 Machinery and equipment 1,363,169 3,909,181 24,498 5,247,852 Road network 23,119,665 - - 23,119,665
Right-to-use assets - equipment 113,918 - - 113,918
Right-to-use assets - subscription - 106,469 - 106,469
Total capital assets being depreciated/amortized 29,709,838 4,191,068 24,498 33,876,408 Less accumulated depreciation/amortization for:

Buildings and improvements (1,515,863) (143,429) - (1,659,292) Machinery and equipment (714,521) (381,052) (24,498) (1,071,075) Road network (5,194,394) (792,127) - (5,986,521)
Right-to-use assets - equipment (27,760) (27,760) - (55,520) Right-to-use assets - subscription - (35,490) - (35,490) Total accumulated depreciation/amortization (7,452,538) (1,379,858) (24,498) (8,807,898) Total capital assets, being depreciated, net 22,257,300 2,811,210 - 25,068,510 Governmental activities capital assets, net $ 32,781,702 $ 6,755,586 $ - $ 39,537,288 Depreciation expense was charged to functions/programs of the City as follows:

General government $ 58,733
Public safety 386,343
Public works, parks and senior center 906,696
Community services and development 28,086
Total depreciation expense - governmental activities 1,379,858 $

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-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, 2024:

Due in
Beginning Balance Due Within More Than
Description Balance Additions Deletions Ending One Year One Year Compensated Absences 193,070$ $ 133,117 $ 63,117 $ 263,070 $ 52,614 $ 210,456 Finance Purchase Agreement - Fire Engine 222,103 - 41,667 180,436 43,000 137,436 Finance Purchase Agreement - Pumper - 925,802 - 925,802 91,203 834,599 Lease liabilities 85,490 - 27,208 58,282 28,176 30,106
Subscription liabilities - 106,469 8,298 98,171 44,664 53,507 Total Long-Term Liabilities $ 500,663 $ 1,165,388 140,290$ $ 1,525,761 $ 259,657 $ 1,266,104 Compensated absences
For the governmental funds, accumulated vacation, and compensatory time payable at June 30, 2024, was $263,070. 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, 2024, were as follows:

Fiscal Year
Ending
June 30, Principal Interest Total
2025 43,000 $ 5,773 $ 48,773 $
2026 44,376 4,398 48,774
2027 45,797 2,977 48,774
2028 47,263 1,512 48,775
Total $ 180,436 $ 14,660 $ 195,096

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-42-
5) LONG-TERM LIABILITIES, (Continued)
Finance Purchase Agreement – Pumper
On January 10, 2024, the City entered into a finance purchase agreement with Community First National Bank to finance the acquisition of a pumper. 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, 2024, were as follows:

Fiscal Year
Ending
June 30, Principal Interest Total
2025 91,203 $ 29,767 $ 120,970 $
2026 73,614 47,355 120,969
2027 77,791 43,178 120,969
2028 82,205 38,764 120,969
2029 86,869 34,100 120,969
2030-2034 514,120 90,730 604,850
Total $ 925,802 $ 283,894 $ 1,209,696
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, 2024, the value of the lease liabilities are $58,282. 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, 2024 was $113,918 with accumulated amortization of $55,520.

Future payments on the total lease liabilities are as follows:

Fiscal Year
Ending
June 30, Principal Interest Total
2025 28,176 $ 1,579 $ 29,755 $
2026 29,178 577 29,755
2027 928 2 930
Total $ 58,282 $ 2,158 $ 60,440

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-43-
5) LONG-TERM LIABILITIES, (Continued)
Subscription liabilities
The City entered a subscription agreement as Lessee for the use of the software for 27 months. Initial lease liability was recorded in the amount of $106,469. As of June 30, 2024, the value of the subscription liability is $98,171. The City is required to make annual payments ranging from $11,618-$48,797. The agreements have an interest rate of 3.5%. The subscription’s estimated useful life is 27 months as of the contract commencement. The value of the right to use asset as of June 30, 2024 was $106,469 with accumulated amortization of $35,490.

Future payments on the total lease liabilities are as follows:

Fiscal Year
Ending
June 30, Principal Interest Total
2025 44,664 $ 1,809 $ 46,473 $
2026 53,507 165 53,672
Total 98,171 $ 1,974 $ 100,145 $
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.

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-44-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
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.

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, 2024 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% 7.75%
Required employer contribution rates 10.66% 7.68%
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.

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-45-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
C) Contributions, (Continued)
Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2024 were $195,785. The actual employer payments of $193,807 made to CalPERS by the City during the measurement period ended June 30, 2023 differed from the City’s proportionate share of the employer’s contributions of $174,025 by $19,782, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.

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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2023 measurement period was determined by an actuarial valuation as of June 30, 2022, with update procedures used to roll forward the total pension liability to June 30, 2023. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Asset Valuation Method Fair Value of Assets
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 Increase Contract COLA up to 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies,

2.30% thereafter.
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full 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 2021 experience study report from November 2021 that can be found on the CalPERS website.

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-46-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
D) Net Pension Liability, (Continued)
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, 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
Change of Assumptions
There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to

6.90%. In determining the long-term expected rate of return, CalPERS took into account longterm market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-47-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
D) Net Pension Liability, (Continued)
Discount Rate
The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in 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 City’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: 6/30/2022 (VD) 5,152,266 $ 3,961,233 $ 1,191,033 $ Balance at: 6/30/2023 (MD) 5,500,859 4,186,139 1,314,720 Net changes during 2022-23 $ 348,593 $ 224,906 $ 123,687 Increase (Decrease)
Valuation Date (VD), Measurement Date (MD).

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-48-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
E) Proportionate Share of Net Pension Liability, (Continued) 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, 2022 and 2023 measurement dates was as follows:

Miscellaneous
Proportion - June 30, 2022 0.025450%
Proportion - June 30, 2023 0.026290%
Change - Increase (Decrease) 0.000840%
F) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.9 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) 2,058,688 $ 1,314,720 $ 702,371 $
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

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-49-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
G) Amortization of Deferred Outflows and Deferred Inflows of Resources, (Continued) The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).

The EARSL for PERF C for the measurement period ending June 30, 2023 is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

H) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2022), the City’s net pension liability was $1,191,033. For the measurement period ending June 30, 2023 (the measurement date), the City incurred a pension expense/(income) of $300,929.

As of June 30, 2024, 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 195,785 $ - $ Changes of assumptions 79,376 -
Differences between expected and actual experience 56,744 - Changes in employer's proportion 81,648 -
Differences between the employer's contribution and the employer's proportionate share of contributions 14,576 30,340 Differences between projected and actual earnings on
plan investments 212,865 -
Total $ 640,994 $ 30,340
The amounts above are net of outflows and inflows recognized in the 2022-23 measurement period expense. Contributions subsequent to the measurement date of $195,785 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year.

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-50-
6) EMPLOYEE RETIREMENT PLANS, (Continued)
H) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, (Continued)
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Fiscal Year Deferred Outflows/
Ending Inflows of
June 30, Resources
2025 140,059 $
2026 97,701
2027 171,001
2028 6,108
I) Payable to the Pension Plan
At June 30, 2024, 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, 2024, the City contributed $85,093 to the Plan.

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-51-
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, 2024
-52-
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, 2024:

Beginning Ending Due Within
Description Balance Additions Deletions Balance One Year Bonds
2014 Series bonds, Refunding 2,030,000 $ $ - $ (120,000) $ 1,910,000 $ 125,000 Deferred amounts
For issuance premium,
relating to 2014 bonds 5,926 - (370) 5,556 -
Total Bonds $ 2,035,926 $ - $ (120,370) $ 1,915,556 $ 125,000

City of Calimesa
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-53-
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
2025 125,000 $ $ 68,038
2026 130,000 64,288
2027 135,000 60,388
2028 135,000 56,169
2029 140,000 51,950
2030-2034 780,000 180,001
2035-2039 465,000 39,200
Total 1,910,000 $ $ 520,034
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, 2024, the amount held in the reserve account was $229,506 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, 2024
-54-
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, 2024 is as follows:

Issue Name Amounts of Issue Outstanding June 30, 2024
CFD 2012-1 Series 2014 IA1 2,855,000 $ 2,645,000 $
CFD 2013-1 Series 2015 IA1 1,565,000 1,460,000
CFD 2013-1 Series 2016 IA2 1,530,000 1,415,000
CFD 2012-1 Series 2017 IA2 4,205,000 3,980,000
CFD 2018-1 Series 2020 IA1 14,325,000 14,050,000
CFD 2013-1 Series 2020 IA3 3,038,476 3,009,481
11) PRIOR PERIOD RESTATEMENTS
As a result of the implementation of GASB 100, as described in Note 1, the City is required to restate its June 30, 2023 governmental funds’ fund balance. The Traffic Improvement Fees Fund was previously reported within the Mitigation Fees Fund and has now been separated due to the nature of the funding and more transparent reporting. This qualifies as a change to or within the financial reporting entity, under the guidance of GASB 100. The corrections to the Housing Rehab – State, Housing Refund – Federal and Governmental Activities are related to the incorrect recording of fees for loans that should not have been recorded at inception.

Changes to governmental fund balances are as follows:

Governmental
Activities Mitigation Fees
Traffic Improvement
Fees
Housing Rehab -
State
Housing Rehab -
Federal
Fund balance, as previously reported 56,353,061 $ $ 10,979,356 $ - $ 966,935 $ 378,147 Correction of an error (128,651) - - (70,323) (58,328)
Change to reporting entity - (532,506) 532,506 - -
Fund balance, as restated $ 56,224,410 $ 10,446,850 $ 532,506 $ 896,612 $ 319,819

This page intentionally left blank

REQUIRED SUPPLEMENTARY INFORMATION

This page intentionally left blank

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, 2024
-55-
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% June 30, 2023 0.01054% 1,314,720 1,327,901 99.01% 76.10% Notes to the schedule:
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, 2024
-56-
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%
June 30, 2024 195,785 (195,785) - 1,336,909 14.64%
Notes to the schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions were a follows:

Valuation date : 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 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% 2.30% 2.30% 2.50% 2.50%
Salary increases: (2) (2) (2) (2) (2)
Investment rate of return: 6.90% 6.90% 7.15% 7.00% 7.00% Retirement age: (3) (3) (3) (3) (3)
Mortality: (4) (4) (4) (4) (4)
Valuation date : 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 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: 2.63% 2.75% 2.75% 2.75% 2.75%
Salary increases: (2) (2) (2) (2) (2)
Investment rate of return: 7.25% 7.375% 7.50% 7.50% 7.50% Retirement age: (3) (3) (3) (3) (3)
Mortality: (4) (4) (4) (4) (4)
Valuation date : 6/30/2012
Actuarial cost method: Entry Age
Amortization method: (1)
Assets valuation method: 15 Year Smoothed Market
Method
Inflation: 2.75%
Salary increases: (2)
Investment rate of return: 7.50%
Retirement age: (3)
Mortality: (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.

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, 2024
-57-
(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
There were no expenditures in excess of appropriations in the current year.

City of Calimesa
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
General Fund
For the Year Ended June 30, 2024
-58-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 8,056,600 $ 8,319,800 $ 8,461,042 $ 141,242
Licenses and permits 594,850 242,090 218,247 (23,843)
Fines and forfeitures 30,000 37,000 106,373 69,373
Intergovernmental 64,000 77,840 353,110 275,270
Charges for services 1,022,950 1,024,150 1,016,892 (7,258) Development fees 274,200 1,929,266 1,917,225 (12,041)
Investment earnings 51,100 201,100 324,324 123,224
Unrealized loss on investments - - 316,186 316,186
Other 15,000 35,016 28,268 (6,748)
Total revenues 10,108,700 11,866,262 12,741,667 875,405

EXPENDITURES
Current:

General government 2,312,118 2,698,681 2,375,493 323,188 Public safety 5,728,723 9,327,621 9,012,513 315,108
Public works, parks and senior center 731,268 810,939 734,690 76,249 Community services and development 884,490 679,398 583,125 96,273 Total expenditures 9,656,599 13,516,639 12,705,821 810,818 REVENUES OVER EXPENDITURES 452,101 (1,650,377) 35,846 1,686,223

OTHER FINANCING SOURCES (USES)
Transfers in 943,900 943,900 - (943,900)
Transfers out (2,208,900) (2,369,900) (1,426,000) 943,900 Issuance of debt - 925,802 925,802 -
Subscription acquisition - 106,469 106,469 -
Total other financing sources (uses) (1,265,000) (393,729) (393,729) - Net change in fund balance $ (812,899) $ (2,044,106) (357,883) $ 1,686,223

FUND BALANCE
Beginning of year 9,751,162
End of year $ 9,393,279
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, 2024
-59-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 183,550 $ 7,404,188 $ 3,012,476 $ (4,391,712) $ Development fees 778,871 778,871 - (778,871)
Investment earnings 85,175 85,175 430,651 345,476
Total revenues 1,047,596 8,268,234 3,443,127 (4,825,107)

EXPENDITURES
Current:

General government 5,984 5,984 5,984 -
Public safety 11,368 11,368 11,368 -
Public works 3,413,918 13,143,394 3,370,096 9,773,298
Library 5,184 5,184 5,184 -
Debt service:

Principal 41,667 41,667 41,667 -
Interest and fiscal charges 8,700 15,000 15,354 (354)
Total expenditures 3,486,821 13,222,597 3,449,653 9,772,944 REVENUES OVER EXPENDITURES (2,439,225) (4,954,363) (6,526) 4,947,837

OTHER FINANCING SOURCES (USES)
Transfers in - 161,000 161,000 -
Transfers out - (45,000) (45,000) -
Total other financing sources (uses) - 116,000 116,000 - Net change in fund balance $ (2,439,225) $ (4,838,363) 109,474 $ 4,947,837

FUND BALANCE
Beginning of year, as previously reported 10,979,356
Restatement - Change in reporting entity (532,506)
Beginning of year, as restated 10,446,850
End of year $ 10,556,324
Budget Amounts

This page intentionally left blank

SUPPLEMENTARY INFORMATION

City of Calimesa
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
-60-
Supplemental
Law Transportation
Enforcement Housing Rehab - Air Quality
Grant State Library Improvements Gas Tax Measure A
ASSETS
Cash and investments $ 166,534 $ 314,938 $ 445,221 $ 70,048 $ 29,394 $ 998,473 Receivables:

Taxes and other - - 3,051 - - -
Intergovernmental - - - 3,688 57,175 58,027
Loans - 591,131 - - - -
Total Assets $ 166,534 $ 906,069 $ 448,272 $ 73,736 $ 86,569 $ 1,056,500

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 24,119 $ 338 $ 3,730 $ - $ 8,457 $ - Retentions payable - - - - - -
Unearned revenues - - 43,846 - - -
Due to other funds - - - - - -
Deposits - - 38,963 - - -
Total Liabilities 24,119 338 86,539 - 8,457 -
Fund Balances:

Restricted 142,415 905,731 361,733 73,736 78,112 1,056,500 Assigned - - - - - -
Total Fund Balances 142,415 905,731 361,733 73,736 78,112 1,056,500 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 166,534 $ 906,069 $ 448,272 $ 73,736 $ 86,569 $ 1,056,500 Special Revenue Funds

-61-
Special Revenue Funds Capital Projects
Lighting/ Road Total Nonmajor
Landscape Housing Rehab - Maintenance General Capital Governmental District Recycling Federal and Rehab Projects Fund Funds $ 74,901 $ 20,143 $ 4,017 $ 445,101 $ - $ 2,568,770
685 - - 49,301 - 53,037
- - - - 124,301 243,191
- - 265,267 - - 856,398
$ 75,586 $ 20,143 $ 269,284 $ 494,402 $ 124,301 $ 3,721,396 $ 6,480 $ - $ - $ - $ 8,595 $ 51,719
- - - - 1,863 1,863
- - - - - 43,846
- - - - 80,506 80,506
- - - - - 38,963
6,480 - - - 90,964 216,897
69,106 20,143 269,284 494,402 - 3,471,162
- - - - 33,337 33,337
69,106 20,143 269,284 494,402 33,337 3,504,499
$ 75,586 $ 20,143 $ 269,284 $ 494,402 $ 124,301 $ 3,721,396

City of Calimesa
Combining Statements of Revenues, Expenditures, and
Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
-62-
Supplemental
Law Transportation
Enforcement Housing Rehab - Air Quality
Grant State Library Improvements Gas Tax Measure A

REVENUES
Taxes $ - $ - $ - $ - $ - $ -
Intergovernmental 186,159 - 47,552 14,745 308,768 325,507 Investment earnings 5,154 11,804 17,349 2,557 1,817 35,352 Total Revenues 191,313 11,804 64,901 17,302 310,585 360,859

EXPENDITURES
Current:

General government - - 2,504 - - -
Public safety 155,713 - - - - -
Public works, parks and senior center - 2,685 - - 289,634 25,440 Community services and development - - - 1,270 - -
Library - - 28,949 - - -
Total Expenditures 155,713 2,685 31,453 1,270 289,634 25,440 Excess of Revenues Over Expenditures 35,600 9,119 33,448 16,032 20,951 335,419

OTHER FINANCING SOURCES (USES)
Transfers in - - - - - -
Transfers out - - - - - -
Total Other Financing Sources (Uses) - - - - - -
Net Change in Fund Balance 35,600 9,119 33,448 16,032 20,951 335,419 Fund Balance, Beginning of year, as previously stated 106,815 966,935 328,285 57,704 57,161 721,081 Restatement - error correction - (70,323) - - - -
Fund Balance, Beginning of year, as restated 106,815 896,612 328,285 57,704 57,161 721,081 Fund Balance, End of year $ 142,415 $ 905,731 $ 361,733 $ 73,736 $ 78,112 $ 1,056,500 Special Revenue Funds

-63-
Special Revenue Funds Capital Projects
Lighting/ Road Total Nonmajor
Landscape Housing Rehab - Maintenance General Capital Governmental District Recycling Federal and Rehab Projects Fund Funds $ 105,863 $ - $ - $ - $ - $ 105,863
- 5,000 - 282,886 124,301 1,294,918
2,153 712 160 22,948 1,062 101,068
108,016 5,712 160 305,834 125,363 1,501,849
- - 50,695 - - 53,199
- - - - - 155,713
181,026 6,004 - - 175,418 680,207
- - - - - 1,270
- - - - - 28,949
181,026 6,004 50,695 - 175,418 919,338
(73,010) (292) (50,535) 305,834 (50,055) 582,511
65,000 - - - 25,000 90,000
- - - (310,000) - (310,000)
65,000 - - (310,000) 25,000 (220,000)
(8,010) (292) (50,535) (4,166) (25,055) 362,511
77,116 20,435 378,147 498,568 58,392 3,270,639
- - (58,328) - - (128,651)
77,116 20,435 319,819 498,568 58,392 3,141,988
$ 69,106 $ 20,143 $ 269,284 $ 494,402 $ 33,337 $ 3,504,499

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Supplemental Law Enforcement Grant Special Revenue Fund For the Year Ended June 30, 2024
-64-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUE
Intergovernmental $ 162,000 $ 162,000 $ 186,159 $ 24,159 Investment earnings 825 825 5,154 4,329
Total revenues 162,825 162,825 191,313 28,488

EXPENDITURES
Current:

Public safety 163,699 163,699 155,713 7,986
Total expenditures 163,699 163,699 155,713 7,986
Net change in fund balance $ (874) $ (874) 35,600 $ 36,474

FUND BALANCE
Beginning of year 106,815
End of year $ 142,415
Budget Amounts

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Housing Rehab – State Special Revenue Fund
For the Year Ended June 30, 2024
-65-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUE
Intergovernmental 3,500 $ 3,500 $ - $ (3,500) $
Investment earnings 2,100 2,100 11,804 9,704
Total revenues 5,600 5,600 11,804 6,204

EXPENDITURES
Current:

Public works, parks and senior center 3,500 3,500 2,685 815 Total expenditures 3,500 3,500 2,685 815
Net change in fund balance 2,100 $ 2,100 $ 9,119 7,019 $

FUND BALANCE
Beginning of year, as previously reported 966,935
Restatement - Correction of an error (70,323)
Beginning of year, as restated 896,612
End of year $ 905,731
Budget Amounts

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Library Special Revenue Fund
For the Year Ended June 30, 2024
-66-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUE
Intergovernmental 36,000 $ $ 36,000 $ 47,552 $ 11,552
Investment earnings 3,300 3,300 17,349 14,049
Other 2,000 79,861 - (79,861)
Total revenues 41,300 119,161 64,901 (54,260)

EXPENDITURES
Current:

General government 7,000 7,000 2,504 4,496
Library 26,900 328,046 28,949 299,097
Total expenditures 33,900 335,046 31,453 303,593
Net change in fund balance $ 7,400 $ (215,885) 33,448 $ 249,333

FUND BALANCE
Beginning of year 328,285
End of year $ 361,733
Budget Amounts

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Transportation Air Quality Improvements Special Revenue Fund For the Year Ended June 30, 2024
-67-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUE
Intergovernmental $ 12,700 $ 12,700 $ 14,745 $ 2,045
Investment earnings 350 350 2,557 2,207
Total revenues 13,050 13,050 17,302 4,252

EXPENDITURES
Current:

Community services and development 1,270 1,270 1,270 -
Total expenditures 1,270 1,270 1,270 -
Net change in fund balance $ 11,780 $ 11,780 16,032 $ 4,252

FUND BALANCE
Beginning of year 57,704
End of year $ 73,736
Budget Amounts

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2024
-68-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUE
Intergovernmental 316,431 $ 300,431 $ 308,768 $ 8,337 $ Investment earnings 160 160 1,817 1,657
Total revenues 316,591 300,591 310,585 9,994

EXPENDITURES
Current:

Public works, parks and senior center 326,833 310,833 289,634 21,199 Total expenditures 326,833 310,833 289,634 21,199
Net change in fund balance (10,242) $ (10,242) $ 20,951 31,193 $

FUND BALANCE
Beginning of year 57,161
End of year $ 78,112
Budget Amounts

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Measure A Special Revenue Fund
For the Year Ended June 30, 2024
-69-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUE
Intergovernmental $ 318,000 $ 318,000 $ 325,507 $ 7,507 Investment earnings 6,300 6,300 35,352 29,052
Total revenues 324,300 324,300 360,859 36,559

EXPENDITURES
Current:

Public works, parks and senior center 25,440 230,440 25,440 205,000 Total expenditures 25,440 230,440 25,440 205,000
REVENUES OVER EXPENDITURES 298,860 93,860 335,419 241,559

OTHER FINANCING SOURCES (USES)
Transfers out (600,000) (600,000) - 600,000
Total other financing sources (uses) (600,000) (600,000) - 600,000 Net change in fund balance $ (301,140) $ (506,140) 335,419 841,559 $

FUND BALANCE
Beginning of year 721,081
End of year $ 1,056,500
Budget Amounts

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Lighting/Landscape District Special Revenue Fund
For the Year Ended June 30, 2024
-70-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUE
Taxes $ 108,000 $ 108,000 $ 105,863 $ (2,137)
Investment earnings 40 40 2,153 2,113
Total revenues 108,040 108,040 108,016 (24)

EXPENDITURES
Current:

Public works, parks and senior center 207,348 222,218 181,026 41,192 Total expenditures 207,348 222,218 181,026 41,192
REVENUES OVER EXPENDITURES (99,308) (114,178) (73,010) 41,168

OTHER FINANCING SOURCES (USES)
Transfers in 85,000 65,000 65,000 -
Total other financing sources (uses) 85,000 65,000 65,000 - Net change in fund balance $ (14,308) $ (49,178) (8,010) $ 41,168

FUND BALANCE
Beginning of year 77,116
End of year $ 69,106
Budget Amounts

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Recycling Special Revenue Fund
For the Year Ended June 30, 2024
-71-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUE
Intergovernmental 5,000 $ $ 5,000 $ 5,000 $ -
Investment earnings 125 125 712 587
Total revenues 5,125 5,125 5,712 587

EXPENDITURES
Current:

Public works, parks and senior center 5,000 7,000 6,004 996 Total expenditures 5,000 7,000 6,004 996
Net change in fund balance $ 125 $ (1,875) (292) $ 1,583

FUND BALANCE
Beginning of year 20,435
End of year $ 20,143
Budget Amounts

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Housing Rehab – Federal Special Revenue Fund
For the Year Ended June 30, 2024
-72-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUE
Investment earnings $ 250 $ 250 $ 160 $ (90)
Total revenues 250 250 160 (90)

EXPENDITURES
Current:

General government - 50,695 50,695 -
Public works, parks and senior center 1,000 1,000 - 1,000 Total expenditures 1,000 51,695 50,695 1,000
Net change in fund balance $ (750.00) $ (51,445) (50,535) $ 910

FUND BALANCE
Beginning of year, as previously reported 378,147
Restatement - Correction of an error (58,328)
Beginning of year, as restated 319,819
End of year $ 269,284
Budget Amounts

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Road Maintenance and Rehab Special Revenue Fund
For the Year Ended June 30, 2024
-73-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUE
Intergovernmental $ 269,426 $ 264,426 $ 282,886 $ 18,460 Investment earnings 5,000 5,000 22,948 17,948
Total revenues 274,426 269,426 305,834 36,408

EXPENDITURES
Total expenditures - - - -
REVENUES OVER EXPENDITURES 274,426 269,426 305,834 36,408

OTHER FINANCING SOURCES (USES)
Transfers out (310,000) (717,705) (310,000) 407,705
Total other financing sources (uses) (310,000) (717,705) (310,000) 407,705 Net change in fund balance $ (35,574) $ (448,279) (4,166) $ 444,113

FUND BALANCE
Beginning of year 498,568
End of year $ 494,402
Budget Amounts

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Capital Projects Including ARPA Capital Projects Fund
For the Year Ended June 30, 2024
-74-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 917,356 $ $ 917,356 $ 566,924 $ (350,432) Investment earnings 18,000 18,000 80,834 62,834
Total revenues 935,356 935,356 647,758 (287,598)

EXPENDITURES
Current:

Public works, parks and senior center 2,692,356 3,385,337 698,189 2,687,148 Total expenditures 2,692,356 3,385,337 698,189 2,687,148 REVENUES OVER EXPENDITURES (1,757,000) (2,449,981) (50,431) 2,399,550

OTHER FINANCING SOURCES (USES)
Transfers in 1,775,000 1,820,000 1,220,000 (600,000)
Total other financing sources (uses) 1,775,000 1,820,000 1,220,000 (600,000) Net change in fund balance $ 18,000 $ (629,981) 1,169,569 $ 1,799,550

FUND BALANCE
Beginning of year 666,227
End of year $ 1,835,796
Budget Amounts

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Traffic Improvement Fees Capital Projects Fund
For the Year Ended June 30, 2024
-75-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUE
Intergovernmental 3,500,000 $ 9,080,484 $ 852,428 $ (8,228,056) $ Charges for services - - 8,400 8,400
Development fees 5,665,719 3,972,583 141,381 (3,831,202) Developer contributions 791,300 540,000 - (540,000)
Interest income 1,000 1,000 23,894 22,894
Total revenues 9,958,019 13,594,067 1,026,103 (12,567,964)

EXPENDITURES
Current:

Public works, parks and senior center 6,919,947 14,088,521 990,658 13,097,863 Total expenditures 6,919,947 14,088,521 990,658 13,097,863 REVENUES OVER EXPENDITURES (494,454) 3,038,072 35,445 529,899

OTHER FINANCING SOURCES (USES)
Transfers in 310,000 717,705 310,000 (407,705)
Total other financing sources (uses) 310,000 717,705 310,000 (407,705) Net change in fund balance 3,348,072 $ 223,251 $ 345,445 122,194 $

FUND BALANCE
Beginning of year, as previously reported -
Restatement - Change in reporting entity 532,506
Beginning of year, as restated 532,506
End of year $ 877,951
Budget Amounts

City of Calimesa
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Capital Projects Capital Projects Fund
For the Year Ended June 30, 2024
-76-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUE
Intergovernmental $ - $ 140,615 $ 124,301 $ (16,314)
Investment earnings 225 225 - (225)
Unrealized loss on investments - - 1,062 1,062
Total revenues 225 140,840 125,363 (15,477)

EXPENDITURES
Current:

Public works, parks and senior center - 185,349 175,418 9,931 Total expenditures - 185,349 175,418 9,931
REVENUES OVER EXPENDITURES 225 (44,509) (50,055) (5,546)

OTHER FINANCING SOURCES (USES)
Transfers in 5,000 25,000 25,000 -
Total other financing sources (uses) 5,000 25,000 25,000 - Net change in fund balance $ 5,225 $ (19,509) (25,055) $ (5,546)

FUND BALANCE
Beginning of year 58,392
End of year $ 33,337
Budget Amounts

735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net

PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-77-

REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
The Honorable Mayor and Members of the City Council
City of Calimesa, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, 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, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 9, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the entity’s internal control over financial reporting (internal control) as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the entity’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

-78-
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

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

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

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Respectfully,
December 9, 2024

735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net

PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
December 9, 2024
To the Honorable City Council
City of Calimesa
Calimesa, California
We have audited the financial statements of the City of Calimesa (the entity) as of and for the year ended June 30, 2024, and have issued our report thereon dated December 9, 2024. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated April 1, 2024, our responsibility, as described by professional standards, is to form and express opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of the system of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of the entity solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

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

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

Attachment 7B

-2-
Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.

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

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

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

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

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

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

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the entity is included in Note 1 to the financial statements. The City has adopted GASB Statement No. 100, Accounting Changes and Error Corrections during 2024. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

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

-3-
The most sensitive accounting estimates affecting the entity’s financial statements are:

Management’s estimate of the net pension liability and related deferred inflows and outflows of resources are based on actuarial reports by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users.

The most sensitive disclosures affecting the entity’s financial statements relate to:

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

The disclosure of leases and subscription liabilities, right-to-use assets, and asset amortization in the basic financial statements is based on certain terms and assumptions in the agreements which could differ from actual amounts.

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

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion unit.

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

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated December 9, 2024.

-4-
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

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

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

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

San Bernardino, California
December 9, 2024

735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net

PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
REPORT ON COMPLIANCE FOR THE U.S. DEPARTMENT OF

TREASURY CORONAVIRUS STATE AND LOCAL FISCAL

RECOVERY FUNDS PROGRAM (CSLFRF) REQUIREMENTS FOR

AN ALTERNATIVE CSLFRF

COMPLIANCE EXAMINATION ENGAGEMENT
Independent Accountant’s Report
To the Honorable City Council
City of Calimesa
Calimesa, California
We have examined City of Calimesa’s (the City) compliance with the compliance requirements “activities allowed or unallowed” and “allowable cost/cost principles” (the specified requirements) as described in Part IV “Requirements for an Alternative Compliance Examination Engagement for Recipients That Would Otherwise be Required to Undergo a Single Audit or Program-Specific Audit as a Result of Receiving Coronavirus State and Local Fiscal Recovery Funds” of the CSLFRF section of the 2024 OMB Compliance Supplement (referred to herein as “Requirements for an Alternative CSLFRF Compliance Examination Engagement”) during the year ended June 30, 2024. Management of the City is responsible for the City’s compliance with the specified requirements. Our responsibility is to express an opinion on the City’s compliance with the specified requirements based on our examination.

Our examination was conducted in accordance with attestation standards established by the AICPA; the standards applicable to attestation engagements contained in Government Auditing Standards, issued by the Comptroller General of the United States; and in the “Requirements for an Alternative CSLFRF Compliance Examination Engagement.” Those standards and requirements require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

Attachment 7C

-2-
We are required to be independent and meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.

Our examination does not provide a legal determination on the City’s compliance with specified requirements.

In our opinion, the City complied, in all material respects, with the specified requirements referenced above during the year ended June 30, 2024.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we are required to report all deficiencies that are considered to be significant deficiencies or material weaknesses in internal control; fraud, and noncompliance with provisions of laws, regulations, contracts or grant agreements that have a material effect on the City’s compliance with the specified requirements and any other instances that warrant the attention of those charged with governance. We are also required to obtain and report the views of responsible officials concerning the findings, conclusions, and recommendations, as well as any planned corrective actions. We performed our examination to express an opinion on the City’s compliance with the specified requirements and not for the purpose of expressing an opinion on the internal control over the specified requirements or on compliance and other matters; accordingly, we express no such opinions. The results of our tests disclosed no matters that are required to be reported under Government Auditing Standards.

Intended Purpose
The purpose of this examination report is solely to express an opinion on whether the City complied, in all material respects with the specified requirements referenced above during the year ended June 30, 2024. Accordingly, this report is not suitable for any other purpose.

San Bernardino, California
December 9, 2024

735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net

PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
Independent Accountant’s Report
To the Honorable City Council
City of Calimesa, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the City of Calimesa, California (the City) for the year ended June 30, 2024. The management of the entity is responsible for the accompanying Appropriations Limit Worksheet.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. These procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreedupon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution, were performed solely to assist you in meeting the requirements. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the
population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our
procedures.

2. For the accompanying Appropriations Limit Worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit.

Finding: No exceptions were noted as a result of our
procedures.

Attachment 7D

-2-

3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the other documents referenced in number one above.

Finding: No exceptions were noted as a result of our procedures.

4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council during the prior year.

Finding: No exceptions were noted as a result of our procedures.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying Appropriations Limit Worksheet for the year ended June 30, 2024.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City of Calimesa, California, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record, and its distribution is not limited.

San Bernardino, California
December 9, 2024

-3-

FISCAL YEAR
2023-2024
Change in California Per Capita Personal Income 4.44%
Change in the Population for the
County of Riverside 0.34%
Change in California Per Capita Personal Income
Converted to a Ratio 1.044400
Change in City of Calimesa Population
Converted to a Ratio 1.003400
Calculation of Growth Factor (1.044400 x 1.003400) 1.0479510 Fiscal Year 2022-2023 Limit $ 10,153,735
Fiscal Year 2023 - 2024 Limit
($10,153,735 x 1.0479510) $ 10,640,616 *
Appropriations limit per resolution 10,640,616 $
*Allow for rounding.

APPROPRIATION LIMIT WORKSHEET

CITY OF CALIMESA

City Council Meeting
Agenda Report
Agenda Item No. 8
SUBJECT: PROFESSIONAL SERVICES AGREEMENT FOR CONSULTANT

SERVICES TO PROVIDE A DEVELOPMENT IMPACT FEE
STUDY.

MEETING DATE: December 16, 2024
PREPARED BY: Celeste Reid, Finance Director and Treasurer RECOMMENDATION: That the City Council:

1. Approve the professional services agreement with Willdan Financial Services in an amount not-to-exceed $68,310 to provide a Development Impact Fee study and authorize the Mayor to execute the contract on behalf of the City.

2. Adopt Resolution 2024-67, a Resolution of the City of Council of the City of Calimesa, California, Amending the Fiscal Year 2024-25 Budget to include an Adjustment in the Finance Department’s Professional Services Account in the General Fund.

BACKGROUND: The City of Calimesa adopted in the Calimesa Municipal Code Chapters 18.110 and 18.115 the requirement for payment of development impact fees by new development within the city, to ensure that certain public facilities or capital improvements are constructed and made available consistent with the buildout of the City, in accordance with the City’s general plan and concurrent with the need caused by new development. The City of Calimesa’s current Development Impact Fee study dated March 27, 2017, was approved by City Council on August 7, 2017. Since that date, the City of Calimesa has experienced significant growth and has added an in-house Fire Department with Advanced Life Support Services. The in-house Fire Department’s scope and services were not included in the 2017 study. The City assesses a variety of development impact fees on new development to mitigate city-wide public improvements, public services, and community amenities. The City’s impact fee program must comply with the Mitigation Fee Act (California Government Code Section 6600 et. Seq., also known as Assembly Bill 1600) and the requirements of Assembly Bill 602.

Given the duration between the prior fee study and now projected needs of public facilities and capital improvement for the City, the City Council approved through the fiscal year 2024-25 budget process, a budget of $40,000 for professional services for the purpose of providing an updated development impact fee study.

DISCUSSION: City staff prepared a request for proposal on September 9, 2024 for a development impact fee study, with proposals due on October 3, 2024. The City received two proposals and

interviewed both consulting firms for further consideration. The interview panel consisted of the Finance Director, Accountant and City Engineer. City staff evaluated the cost of services to be provided, the approach to working with City staff, and overall experience. Based on the results of the interviews, City Staff respectfully recommends the City Council approve the professional services agreement with Willdan Financial Services for a not to exceed total contract cost of $68,310. This professional services agreement exceeds the current budget established for this one-time expenditure of $40,000. Accordingly, accepting this contract will necessitate a budget adjustment of $28,310 from unassigned general fund balance.

FISCAL IMPACT: The fiscal year 2024-25 Finance Department budget has $40,000 allocated for professional services to provide for a development impact fee study. An additional appropriation budget adjustment of $28,310 is requested for the total cost of the professional services agreement.

ATTACHMENTS:

Attachment A: Professional Services Agreement for Development Impact Fee Study.

Attachment B: Proposal Development Impact Fee Study – Willdan Financial Services Attachment C: Resolution 2024-67

PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated December 16, 2024 (“Effective Date”) and is between the City of Calimesa, a California municipal corporation (“City”) and Willdan Financial Services a [Legal Form of Entity and state of formation, e.g., California corporation, limited partnership, limited liability company] (“Consultant”). City and Consultant are sometimes referred to herein as the “Parties”, and individually as a “Party”.

RECITALS
A. City issued Request for Proposals on September 9, 2024, titled “Request for Proposal Development Impact Fee Study”. Consultant submitted a proposal dated October 3, 2024 in response to the RFP.

B. Consultant represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

C. City desires to retain Consultant as an independent contractor and Consultant desires to serve City to perform these services in accordance with the terms and conditions of this Agreement.

1. Consultant’s Services.

A. Scope of Services. Consultant shall perform the services described in the Scope of Services (the “Services”) for Development Impact Fee Study, attached as Exhibit A. City may request, in writing, changes in the Scope of Services to be performed. Any changes to the scope or cost of work must be in writing and mutually agreed upon by the Parties.

B. Party Representatives. For the purposes of this Agreement, the City Representative shall be the City Manager, or such other person designated in writing by the City Manager (the “City Representative”). For the purposes of this Agreement, the Consultant Representative shall be James Edison, Principle-in-Charge (the “Consultant Representative”).

The Consultant Representative shall directly manage Consultant’s Services under this Agreement. Consultant shall not change the Consultant Representative without City’s prior written consent.

C. Time for Performance. Consultant shall commence the Services on the Effective Date and shall perform all Services by the deadline established by the City Representative or, if no deadline is established, with reasonable diligence.

D. Standard of Performance. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City.

E. Personnel. Consultant has, or will secure at its own expense, all personnel required to perform the Services required under this Agreement. All of the Services required under this Agreement shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such Services.

Attachment 8A

F. Compliance with Laws. Consultant shall comply with all applicable federal, state and local laws, ordinances, codes, regulations and requirements.

G. Permits and Licenses. Consultant shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of Services under this Agreement, including a business license.

2. Term of Agreement. The term of this Agreement shall be from the Effective Date through December 31, 2025, unless sooner terminated as provided in Section 12 of this Agreement or extended.

3. Compensation.

A. Compensation. As full compensation for Services provided under this agreement, City shall pay Consultant the total sum of $68,310 (the Maximum Compensation), as set forth in the Approved Fee Schedule attached hereto as Exhibit B.

B. Expenses. The amount set forth in paragraph 3.A. above includes reimbursement for all expenditures incurred in the performance of this Agreement.

C. Unauthorized Services and Unanticipated Expenses. City will not pay for any services not specified in the Scope of Services, unless the City Council or the City Representative, if applicable, and the Consultant Representative authorize such services in writing prior to Consultant’s performance of those services or incurrence of additional expenses. Any additional services authorized by the City Council, or (where authorized) the City Manager shall be compensated at the rates set forth in Exhibit B, or, if not specified, at a rate mutually agreed to by the Parties. At the request of the Consultant, the City Council may, in writing, reimburse Consultant for an unanticipated expense at its actual cost. City shall make payment for additional services and expenses in accordance with Section 4 of this Agreement.

4. Method of Payment.

A. Invoices. Consultant shall submit to City an invoice, on a monthly basis, for the Services performed pursuant to this Agreement. Each invoice shall itemize the Services rendered during the billing period, hourly rates charged, if applicable, and the amount due. City shall review each invoice and notify Consultant in writing within ten Business days of receipt of any disputed invoice amounts.

B. Payment. City shall pay all undisputed invoice amounts within 30 calendar days after receipt up to the Maximum Compensation set forth in Section 3 of this Agreement. City does not pay interest on past due amounts. City shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Consultant. Notwithstanding the preceding sentence, if Consultant is a nonresident of California, City will withhold the amount required by the Franchise Tax Board pursuant to Revenue and Taxation Code Section 18662 and applicable regulations.

C. Audit of Records. Consultant shall make all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement available during Consultant’s regular working hours to City for review and audit by City.

5. Independent contractor. Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City.

6. Information and Documents.

A. Consultant covenants that all data, reports, documents, discussion, or other information (collectively “Data”) developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed or released by Consultant without prior written authorization by City. City shall grant such authorization if applicable law requires disclosure. Consultant, its officers, employees, agents, or subcontractors shall not without written authorization from the City Manager or unless requested in writing by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement or relating to any project or property located within the City. A response to a subpoena or court order shall not be considered “voluntary,” provided Consultant gives City notice of such court order or subpoena.

B. Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City may, but has no obligation to, represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, City’s right to review any such response does not imply or mean the right by City to control, direct or rewrite the response.

C. All Data required to be furnished to City in connection with this Agreement shall become City’s property, and City may use all or any portion of the Data submitted by Consultant as City deems appropriate. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the Services, surveys, notes, and other documents prepared in the course of providing the Services shall become City’s sole property and may be used, reused or otherwise disposed of by City without Consultant’s permission. Consultant may take and retain copies of the written products as desired, but the written products shall not be the subject of a copyright application by Consultant.

D. Consultant’s covenants under this Section shall survive the expiration or termination of this Agreement.

7. Conflicts of Interest. Consultant affirms that it presently has no interest and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of the Services contemplated by this Agreement. Consultant and its officers, employees, associates and subcontractors, if any, shall comply with all conflict of interest statutes of the State of

California applicable to Consultant’s Services under this Agreement, including the Political Reform Act (Gov. Code § 81000, et seq.) and Government Code Section 1090. During the term of this Agreement, Consultant may perform similar Services for other clients, but Consultant and its officers, employees, associates and subcontractors shall not, without the City Representative’s prior written approval, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Consultant shall incorporate a clause substantially similar to this Section into any subcontract that Consultant executes in connection with the performance of this Agreement.

8. Indemnification, Hold Harmless, and Duty to Defend.

A. Indemnities.
1) To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, subcontractors, materialmen, consultants or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Liabilities with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith. 2) Consultant shall pay all required taxes on amounts paid to Consultant under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement.
3) Consultant shall fully comply with the workers’ compensation law regarding Consultant and Consultant’s employees. Consultant shall indemnify and hold City harmless from any failure of Consultant to comply with applicable workers’ compensation laws. 4) City may offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this subparagraph A.2).

5) Consultant shall obtain executed indemnity agreements with provisions identical to those in this Section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnity obligations, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities at law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, consultants or their officers, agents, servants or employees (or any entity or individual that Consultant’s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties.

B. Workers’ Compensation Acts not Limiting.

Consultant’s indemnifications and obligations under this Section, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act.

Consultant expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.

C. Insurance Requirements not Limiting. City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The indemnities in this Section shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liabilities, tax, assessment, penalty or interest asserted against City.

D. Survival of Terms. Consultant’s indemnifications and obligations under this Section shall survive the expiration or termination of this Agreement.

9. Insurance.

A. Minimum Scope and Limits of Insurance. Consultant shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
1) Commercial General Liability Insurance with a minimum limit of $2,000,000.00 per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of $2,000,000.00 per project or location. If Consultant is a limited liability company, the commercial general liability coverage shall be amended so that Consultant and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of $2,000,000.00 per accident for bodily injury and property damage. If Consultant does not use any owned, non-owned or hired vehicles in the performance of Services under this Agreement, Consultant shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under subparagraph A.1) of this Section.

3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of $1,000,000.00 per accident for bodily injury or disease. If Consultant has no employees while performing Services under this Agreement, workers’ compensation policy is not required, but Consultant shall execute a declaration that it has no employees.
4) Professional Liability/Errors and Omissions Insurance with minimum limits of $2,000,000.00 per claim and in aggregate.

B. Acceptability of Insurers. The insurance policies required under this Section shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide. Self insurance shall not be considered to comply with the insurance requirements under this Section.

C. Additional Insured. The commercial general and automobile liability policies shall contain an endorsement naming City and its elected and appointed officials, officers, employees, agents and volunteers as additional insureds. This provision shall also apply to any excess/umbrella liability policies.

D. Primary and Non-Contributing. The insurance policies required under this Section shall apply on a primary non-contributing basis in relation to any other insurance or self-insurance available to City. Any insurance or self-insurance maintained by City, its elected and appointed officials, officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

E. Consultant’s Waiver of Subrogation. The insurance policies required under this Section shall not prohibit Consultant and Consultant’s employees, agents or subcontractors from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against City.

F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. At City’s option, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses.

G. Cancellations or Modifications to Coverage. Consultant shall not cancel, reduce or otherwise modify the insurance policies required by this Section during the term of this Agreement. The commercial general and automobile liability policies required under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail 30 days’ prior written notice to City. If any insurance policy required under this Section is canceled or reduced in coverage or limits, Consultant shall, within two Business Days of notice from the insurer, phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.

H. City Remedy for Noncompliance. If Consultant does not maintain the policies of insurance required under this Section in full force and effect during the term of this Agreement, or in the event any of Consultant’s policies do not comply with the requirements under this Section, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Consultant’s

expense, the premium thereon. Consultant shall promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Consultant.

I. Evidence of Insurance. Prior to the performance of Services under this Agreement, Consultant shall furnish City’s Risk Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section. The endorsements are subject to City’s approval. Consultant may provide complete, certified copies of all required insurance policies to City. Consultant shall maintain current endorsements on file with City’s Risk Manager. Consultant shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall furnish such proof at least two weeks prior to the expiration of the coverages.

J. Indemnity Requirements not Limiting. Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duty to indemnify City under Section 8 of this Agreement.

K. Subcontractor Insurance Requirements. Consultant shall require each of its subcontractors that perform Services under this Agreement to maintain insurance coverage that meets all of the requirements of this Section.

10. Mutual Cooperation.

A. City’s Cooperation. City shall provide Consultant with all pertinent Data, documents and other requested information as is reasonably available for Consultant’s proper performance of the Services required under this Agreement.

B. Consultant’s Cooperation. In the event any claim or action is brought against City relating to Consultant’s performance of Services rendered under this Agreement, Consultant shall render any reasonable assistance that City requires.

11. Records and Inspections. Consultant shall maintain complete and accurate records with respect to time, costs, expenses, receipts, correspondence, and other such information required by City that relate to the performance of the Services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to City, its designees and representatives at reasonable times, and shall allow City to examine and audit the books and records, to make transcripts therefrom as necessary, and to inspect all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three years after receipt of final payment.

12. Termination of Agreement.

A. Right to Terminate. City may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to Consultant at least five calendar days before the termination is to be effective. Consultant may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to City at least 60 calendar days before the termination is to be effective.

B. Obligations upon Termination. Consultant shall cease all work under this Agreement on or before the effective date of termination specified in the notice of termination. In the event of City’s termination of this Agreement due to no fault or failure of performance by Consultant, City shall pay Consultant based on the percentage of work satisfactorily performed up to the effective date of termination. In no event shall Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the Services required by this Agreement. Consultant shall have no other claim against City by reason of such termination, including any claim for compensation.

13. Force Majeure. Consultant shall not be liable for any failure to perform its obligations under this Agreement if Consultant presents acceptable evidence, in City’s sole judgment, that such failure was due to acts of God, embargoes, inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, judicial orders, enemy or hostile governmental action, fire or other casualty, or other causes beyond Consultant’s reasonable control and not due to any act by Consultant.

14. Default.

A. Consultant’s failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default.

B. In addition to the right to terminate pursuant to Section 12, if the City Manager determines that Consultant is in default in the performance of any of the terms or conditions of this Agreement, City shall serve Consultant with written notice of the default. Consultant shall have ten calendar days after service upon it of the notice in which to cure the default by rendering a satisfactory performance. In the event that Consultant fails to cure its default within such period of time, City may, notwithstanding any other provision of this Agreement, terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

15. Notices. Any notice, consent, request, demand, bill, invoice, report or other communication required or permitted under this Agreement shall be in writing and conclusively deemed effective: (a) on personal delivery, (b) on confirmed delivery by courier service during Consultant’s and City’s regular business hours, or (c) three Business Days after deposit in the United States mail, by first class mail, postage prepaid, and addressed to the Party to be notified as set forth below:

If to City: If to Consultant:
________________________________
City of Calimesa Willdan Financial Services
908 Park Avenue 27368 Via Industria, Ste. 200
Calimesa, California 92320 Temecula, CA 92590

Telephone: (909)795-9801 Telehone: (951)587-3500
Email: [email protected]
With a courtesy copy to:

Quinn M. Barrow, City Attorney
908 Park Avenue
Calimesa, California 92320
Telephone: (310) 802-5061
Email: [email protected]

16. Non-Discrimination and Equal Employment Opportunity. In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor or applicant for employment because of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, sexual orientation or other basis prohibited by law.

Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information or sexual orientation.

17. Prohibition of Assignment and Delegation. Consultant shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release Consultant from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.

18. No Third Party Beneficiaries Intended. This Agreement is made solely for the benefit of the Parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.

19. Waiver. No delay or omission to exercise any right, power or remedy accruing to City under this Agreement shall impair any right, power or remedy of City, nor shall it be construed as a waiver of, or consent to, any breach or default. No waiver of any breach, any failure of a condition, or any right or remedy under this Agreement shall be (1) effective unless it is in writing and signed by the Party making the waiver, (2) deemed to be a waiver of, or consent to, any other breach, failure of a condition, or right or remedy, or (3) deemed to constitute a continuing waiver unless the writing expressly so states.

20. Final Payment Acceptance Constitutes Release. The acceptance by Consultant of the final payment made under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Consultant for anything done, furnished or relating to Consultant’s work or services. Acceptance of payment shall be any negotiation of City’s check

or the failure to make a written extra compensation claim within ten calendar days of the receipt of that check. However, approval or payment by City shall not constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, subcontractors and agents for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by City for any defect or error in the work prepared by Consultant, its employees, subcontractors and agents.

21. Corrections. In addition to the above indemnification obligations, Consultant shall correct, at its expense, all errors in the work which may be disclosed during City’s review of Consultant’s report or plans. Should Consultant fail to make such correction in a reasonably timely manner, such correction may be made by City, and the cost thereof shall be charged to Consultant. In addition to all other available remedies, City may deduct the cost of such correction from any retention amount held by City or may withhold payment otherwise owed Consultant under this Agreement up to the amount of the cost of correction.

22. Non-Appropriation of Funds. Payments to be made to Consultant by City for services performed within the current fiscal year are within the current fiscal budget and within an available, unexhausted fund. In the event that City does not appropriate sufficient funds for payment of Consultant’s services beyond the current fiscal year, this Agreement shall cover payment for Consultant’s services only to the conclusion of the last fiscal year in which City appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year.

23. Exhibits. Exhibits A and B constitute a part of this Agreement and are incorporated into this Agreement by this reference. If any inconsistency exists or arises between a provision of this Agreement and a provision of any exhibit, or between a provision of this Agreement and a provision of Consultant’s proposal, the provisions of this Agreement shall control.

24. Entire Agreement and Modification of Agreement. This Agreement and all exhibits referred to in this Agreement constitute the final, complete and exclusive statement of the terms of the agreement between the Parties pertaining to the subject matter of this Agreement and supersede all other prior or contemporaneous oral or written understandings and agreements of the Parties. No Party has been induced to enter into this Agreement by, nor is any Party relying on, any representation or warranty except those expressly set forth in this Agreement. This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by both Parties.

25. Headings. The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the Parties to this Agreement.

26. Word Usage. Unless the context clearly requires otherwise, (a) the words “shall,” “will” and “agrees” are mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.

27. Time of the Essence. Time is of the essence in respect to all provisions of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be construed to limit or deprive a Party of the benefits of any grace or use period allowed in this Agreement.

28. Business Days. “Business days” means days Calimesa City Hall is open for business.

29. Governing Law and Choice of Forum. This Agreement, and any dispute arising from the relationship between the Parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be resolved in a superior court with geographic jurisdiction over the City of Calimesa.

30. Attorneys’ Fees. In any litigation or other proceeding by which a Party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing Party shall be entitled to recover all attorneys’ fees, experts’ fees, and other costs actually incurred in connection with such litigation or other proceeding, in addition to all other relief to which that Party may be entitled.

31. Severability. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid or unenforceable for any reason, the validity of and enforceability of the remaining provisions of this Agreement shall not be affected and continue in full force and effect.

32. Counterparts. This Agreement may be executed in multiple counterparts, all of which shall be deemed an original, and all of which will constitute one and the same instrument.

33. Corporate Authority. Each person executing this Agreement on behalf of his or her Party warrants that he or she is duly authorized to execute this Agreement on behalf of that Party and that by such execution, that Party is formally bound to the provisions of this Agreement. [SIGNATURE PAGE FOLLOWS]

The Parties, through their duly authorized representatives are signing this Agreement on the date stated in the introductory clause.

City:

City of Calimesa,
a California municipal corporation
By:

Name: Will Kolbow
Title: City Manager
ATTEST:

By:

Name: Darlene Gerdes
Title: City Clerk
APPROVED AS TO FORM:

By:

Name: Quinn M. Barrow
Title: City Attorney
APPROVED AS TO CONTENT:

By:

Name: Celeste Reid
Title: Finance Director
Consultant:

Willdan Financial Services
a __________________________
By:

Name: Chris Fisher
Title: Vice President
By:

Name:

Title:

PROOF OF AUTHORITY TO BIND

CONTRACTING PARTY REQUIRED

A-1

EXHIBIT A

SCOPE OF SERVICES

Development Impact Fee Study 

City of Calimesa, CA
Scope of Services and Schedule
/;<F
F86G<BA
BHG?<A8F
2<??74A
!<A4A6<4?
.8EI<68FS
Q2<??74AR
HA78EFG4A7<A:
B9
G;8
<GL
B9

4?<@8F4SF
Q
<GLR
78F<E8
GB

6BA7H6G
4
78I8?BC@8AG
<@C46G
@<G<:4G<BA
988
FGH7L
4F
J8??
4F
<78AG<9L
G;8
CEB=86G
B5=86G<I8F
4A7
7<F6HFF8F
G;8
546>:EBHA7
E8:4E7<A:
CH5?<6
946<?<G<8F
9<A4A6<A:
<A

4?<9BEA<4


?FB
BHG?<A87
<F
4A
BI8EI<8J
B9
BHE
<@C46G
988
CEB=86G

4CCEB46;



Project Understanding

F
C4EG
B9
G;8
?4E:8E
9<A4A6<4?
C?4AA<A:
899BEG
9BE

4?<@8F4
"8A8E4?
+?4A

G;8

<GL
F88>F
GB
HA78EFG4A7
J;4G
G;8
9<A4A6<4?

<@C46GF
B9
9BE8F8845?8
9HGHE8
78I8?BC@8AG
J<??
;4I8
BA
G;8
<GLSF
CH5?<6
F8EI<68F
4A7
<A9E4FGEH6GHE8

4A7
GB
<78AG<9L

CBG8AG<4?
:4CF
<A
9HA7<A:
9BE
G;BF8
A868FF4EL
<@CEBI8@8AGF
/;8

<GL
78F<E8F
GB
HC74G8
<@C46G
988F
GB
8AFHE8
4
94<E

4A7
E84FBA45?8
988
FGEH6GHE8

J;<?8
@88G<A:
G;8
E8DH<E8@8AGF
B9
G;8

4?<9BEA<4



 



!



 




/;8
E8FH?G<A:
988F
J<??
9HA7
A8J
78I8?BC@8AGSF
F;4E8
B9
C?4AA87
946<?<G<8F
J;<?8
ABG

BI8E5HE78A<A:
78I8?BC@8AG
J<G;
HAA868FF4EL
6BFGF



'<FG87
58?BJ
<F
G;8
78I8?BC@8AG
<@C46G
988
G;4G
2<??74A
4FFH@8F
J<??
58
<A6?H787
<A
G;<F
FGH7L


"8A8E4?
+?4A

2<??74A
HA78EFG4A7F
G;4G
G;8

<GL
JBH?7
?<>8
GB
8KC?BE8
477<G<BA4?
988
64G8:BE<8F
GB
6BI8E
BG;8E
<A9E4FGEH6GHE8
E8DH<E8@8AGF

2<??74A
J<??
JBE>
J<G;
G;8

<GL

CEBI<7<A:
<A9BE@4G<BA
BA
GLC<64?
988
64G8:BE<8F
6;4E:87
5L
BG;8E
@HA<6<C4?<G<8F
4A7
4?FB
8K4@<A<A:
G;8

<GLSF
<A9E4FGEH6GHE8
C?4AA<A:
4A7
A887F
GB
78G8E@<A8
988
64G8:BE<8F
G;4G
JBH?7
58
;8?C9H?


Project Objectives
/;8
B5=86G<I8
B9
G;<F
CEB=86G
<F
GB
HC74G8
78I8?BC@8AG
<@C46G
988F
CHEFH4AG
GB
.G4G8
?4J
4A7
GB
4FF<FG
G;8

<GL
<A

HA78EFG4A7<A:
477<G<BA4?
<A9E4FGEH6GHE8
A887F
A868FF<G4G87
5L
9HGHE8
CEB=86G<BAF
FH6;
4F
G;8
;BHF<A:
8?8@8AG
/B

466B@C?<F;
G;<F
B5=86G<I8

G;<F
FGH7L
J<??


8I8?BC
4
G86;A<64??L
7898AF<5?8
988
=HFG<9<64G<BA

54F87
BA
G;8
E84FBA45?8
E8?4G<BAF;<C
4A7
7898E8AG<4?
E8I<8J
FG4A74E7F



-8I<8J
4A7
946<?<GL
FG4A74E7F

64C<G4?
946<?<G<8F
C?4AF
4A7
6BFGF

4A7
78I8?BC@8AG
4A7
:EBJG;
4FFH@CG<BAF

<A6?H7<A:
G;8
E868AG
$A9E4FGEH6GHE8
/4F>
!BE68
E8CBEG
4A7
946<?<G<8F
@4FG8E
C?4AF

$78AG<9L
CBG8AG<4?
477<G<BA4?
988F
GB
477E8FF
HA@8G
9HGHE8
64C<G4?
946<?<G<8F
A887F

+EBI<78
4
F6;87H?8
B9
@4K<@H@
=HFG<9<87
988F
5L
?4A7
HF8
64G8:BEL
4A7


+EBI<78
6B@CE8;8AF<I8
7B6H@8AG4G<BA
B9
4FFH@CG<BAF

@8G;B7B?B:<8F

4A7
E8FH?GF

<A6?H7<A:
9<A7<A:F
E8DH<E87

5L
G;8






Public Facilities Financing in California
/;8
6;4A:<A:
9<F64?
?4A7F64C8
<A

4?<9BEA<4
7HE<A:
G;8
C4FG

L84EF
;4F
FG847<?L
HA78E6HG
G;8
9<A4A6<4?
64C46<GL
B9
?B64?
:BI8EA@8AGF
GB
9HA7
<A9E4FGEH6GHE8

!BHE
7B@<A4AG
GE8A7F
FG4A7
BHG



/;8
C4FF4:8
B9
4
FGE<A:
B9
G4K
?<@<G4G<BA
@84FHE8F
FG4EG<A:
J<G;
+EBCBF<G<BA

<A

4A7
6BAG<AH<A:
G;EBH:;
G;8
C4FF4:8
B9
+EBCBF<G<BA

<A




86?<A<A:
CBCH?4E
FHCCBEG
9BE
5BA7
@84FHE8F
GB
9<A4A68
<A9E4FGEH6GHE8
9BE
G;8
A8KG
:8A8E4G<BA
B9
E8F<78AGF
4A7
5HF<A8FF8F




.G88C
E87H6G<BAF
<A
!878E4?
4A7
.G4G8
4FF<FG4A68
4A7


+8E@4A8AG
F;<9G<A:
5L
G;8
.G4G8
B9
?B64?
G4K
E8FBHE68F
GB
G;8
.G4G8
"8A8E4?
!HA7
GB
B99F8G
789<6<G
FC8A7<A:
5EBH:;G
BA
5L
E868FF<BAF


!4687
J<G;
G;8F8
GE8A7F

@4AL
6<G<8F
4A7
6BHAG<8F
;4I8
;47
GB
47BCG
4
CB?<6L
B9
:EBJG;
C4LF
<GF
BJA
J4L 
/;<F
CB?<6L

F;<9GF
G;8
5HE78A
B9
9HA7<A:
<A9E4FGEH6GHE8
8KC4AF<BA
9EB@
8K<FG<A:
E4G8
4A7
G4KC4L8EF
BAGB
A8J
78I8?BC@8AG
/;<F

9HA7<A:
F;<9G
;4F
588A
466B@C?<F;87
CE<@4E<?L
G;EBH:;
G;8
<@CBF<G<BA
B9
4FF8FF@8AGF
FC86<4?
G4K8F

4A7
78I8?BC@8AG

<@C46G
988F

4?FB
>ABJA
4F
CH5?<6
946<?<G<8F
988F


FF8FF@8AGF
4A7
FC86<4?
G4K8F
E8DH<E8
4CCEBI4?
B9
CEBC8EGL
BJA8EF
BE
E8:<FG8E87
IBG8EF
4A7
4E8
4CCEBCE<4G8
J;8A
G;8
9HA787
946<?<G<8F
4E8
7<E86G?L
E8?4G87
GB
G;8
78I8?BC<A:
CEBC8EGL


8I8?BC@8AG
<@C46G
988F

BA
G;8
BG;8E
;4A7

4E8
4A
4CCEBCE<4G8
9HA7<A:
FBHE68
9BE
946<?<G<8F
G;4G
58A89<G
78I8?BC@8AG
=HE<F7<6G<BA
J<78

8I8?BC@8AG
988F
A887
BA?L
4
@4=BE<GL
IBG8
B9
G;8
?8:<F?4G<I8
5B7L
9BE
47BCG<BA

Development Impact Fee Study

City of Calimesa, CA
Approach and Methodology
2<??74ASF
@8G;B7B?B:L
9BE
64?6H?4G<A:
CH5?<6
946<?<G<8F
988F
<F
5BG;
F<@C?8
4A7
9?8K<5?8
.<@C?<6<GL
<F
<@CBEG4AG
FB
G;4G

G;8
78I8?BC@8AG
6B@@HA<GL
4A7
G;8
CH5?<6
64A
84F<?L
HA78EFG4A7
G;8
=HFG<9<64G<BA
9BE
G;8
988
CEB:E4@

G
G;8
F4@8

G<@8

J8
HF8
BHE
8KC8EG<F8
GB
E84FBA45?L
8AFHE8
G;4G
G;8
CEB:E4@
<F
G86;A<64??L
7898AF<5?8

!?8K<5<?<GL
<F
<@CBEG4AG

FB
J8
64A
G4<?BE
BHE
4CCEB46;
GB
G;8
4I4<?45?8
74G4

4A7
G;8
4:8A6LSF
CB?<6L
B5=86G<I8F

*HE

HA78EFG4A7<A:
B9
G;8
G86;A<64?
FG4A74E7F
8FG45?<F;87
5L
FG4GHG8F
4A7
64F8
?4J
FH::8FGF
G;4G
4
E4A:8
B9
4CCEB46;8F
4E8
G86;A<64??L
7898AF<5?8


BAF8DH8AG?L

J8
64A
477E8FF
CB?<6L
B5=86G<I8F
E8?4G87
GB
G;8
988
CEB:E4@
FH6;
4F

86BAB@<6
78I8?BC@8AG
4A7
499BE745?8
;BHF<A:

!?8K<5<?<GL
4?FB
8A45?8F
HF
GB
4IB<7
8K68FF<I8
8A:<A88E<A:
6BFGF
4FFB6<4G87
J<G;
78G4<?87
946<?<GL
C?4AA<A:

28
64?6H?4G8
G;8
@4K<@H@
=HFG<9<45?8
<@C46G
988
4A7
CEBI<78
9?8K<5<?<GL
9BE
G;8
4:8A6L
GB
47BCG
988F
HC
GB
G;4G
4@BHAG


8I8?BC@8AG
<@C46G
988F
4E8
64?6H?4G87
GB
9HA7
G;8
6BFG
B9
946<?<G<8F
E8DH<E87
GB
466B@@B74G8
:EBJG;
/;8
9BHE
FG8CF

9B??BJ87
<A
4A
<@C46G
988
FGH7L
<A6?H78


01&*
1"
"5&01&+$
!"3"),-*"+1

+!
#212/"
$/,41%

$78AG<9L
4
54F8
L84E
9BE
8K<FG<A:
78I8?BC@8AG
4A7
4

:EBJG;
9BE864FG
G;4G
E89?86GF
<A6E84F87
78@4A7
9BE
CH5?<6
946<?<G<8F

!"+1&#6
#
&)&16
01
+!
/!0

8G8E@<A8
G;8
946<?<GL
FG4A74E7F
HF87
GB
C?4A
9BE
A8J
4A7
8KC4A787
946<?<G<8F

"1"/*&+"
#
&)&1&"0
/".2&/"!
1,
0"/3"
+"4
!"3"),-*"+1

+!
1%"&/
,010

FG<@4G8
G;8
GBG4?
4@BHAG
4A7

6BFG
B9
C?4AA87
946<?<G<8F

4A7
<78AG<9L
G;8
F;4E8
E8DH<E87
GB
466B@@B74G8
A8J
78I8?BC@8AG
4A7


) 2)
1"
#""
0 %"!2)"


??B64G8
946<?<G<8F
6BFGF
C8E
HA<G
B9
A8J
78I8?BC@8AG
GB
64?6H?4G8
G;8
CH5?<6
946<?<G<8F
988
F6;87H?8


28
7<F6HFF
>8L
4FC86GF
B9
BHE
4CCEB46;
GB
846;
B9
G;8F8
FG8CF
<A
G;8
FH5F86G<BAF
G;4G
9B??BJ

Growth Projections
$A
@BFG
64F8F

J8
E86B@@8A7
HF8
B9
?BA:

E4A:8
@4E>8G
54F87
CEB=86G<BAF
B9
A8J
78I8?BC@8AG


L
Q?BA:

E4A:8R
J8

FH::8FG

GB

L84EF
GB
64CGHE8
G;8
GBG4?
78@4A7
B9G8A
4FFB6<4G87
J<G;
@4=BE
CH5?<6
946<?<GL
<AI8FG@8AGF
4A7
FHCCBEG
4A4?LF<F
B9
785G
9<A4A6<A:

<9
A88787

$A
6BAGE4FG
GB
5H<?7
BHG
CEB=86G<BAF

@4E>8G
54F87
CEB=86G<BAF
CEBI<78
4

@BE8
E84?<FG<6
8FG<@4G8
B9
78I8?BC@8AG
46EBFF
4??
?4A7
HF8F

H<?7
BHG
CEB=86G<BAF
GLC<64??L
BI8E8FG<@4G8
6B@@8E6<4?
4A7
<A7HFGE<4?
78I8?BC@8AG
5864HF8
B9
G;8
BI8EFHCC?L
B9
G;8F8
?4A7
HF8F
E8?4G<I8
GB
E8F<78AG<4?
78I8?BC@8AG

Facility Standards
/;8
>8L
CH5?<6
CB?<6L
<FFH8
<A
78I8?BC@8AG
<@C46G
988
FGH7<8F
<F
G;8
<78AG<9<64G<BA
B9
946<?<GL
FG4A74E7F
F86BA7
5H??8G
45BI8

!46<?<GL
FG4A74E7F
7B6H@8AG
4
E84FBA45?8
E8?4G<BAF;<C
58GJ88A
A8J
78I8?BC@8AG
4A7
G;8
A887
9BE
A8J
946<?<G<8F

.G4A74E7F
8AFHE8
G;4G
A8J
78I8?BC@8AG
7B8F
ABG
9HA7
789<6<8A6<8F
4FFB6<4G87
J<G;
8K<FG<A:
78I8?BC@8AG

*HE
4CCEB46;
E86B:A<M8F
G;E88
F8C4E4G8
6B@CBA8AGF
B9
946<?<GL
FG4A74E7F

"*
+!
01
+!
/!0
78G8E@<A8
G;8
4@BHAG
B9
946<?<G<8F
E8DH<E87
GB
466B@@B74G8
:EBJG;
K4@C?8F
<A6?H78

C4E>
46E8F
C8E
G;BHF4A7
E8F<78AGF

FDH4E8
988G
B9
?<5E4EL
FC468
C8E
64C<G4

BE
:4??BAF
B9
J4G8E
C8E
74L

8@4A7

FG4A74E7F
@4L
4?FB
E89?86G
4
?8I8?
B9
F8EI<68
FH6;
4F
G;8
I8;<6?8F GB
64C46<GL
1


E4G<B
HF87
<A
GE499<6
C?4AA<A:


"0&$+
01
+!
/!0
78G8E@<A8
;BJ
4
946<?<GL
F;BH?7
58
78F<:A87
GB
@88G
8KC86G87
78@4A7
9BE
8K4@C?8
C4E>

<@CEBI8@8AG
E8DH<E8@8AGF
4A7
G86;AB?B:L
<A9E4FGEH6GHE8
9BE
B99<68
FC468
8F<:A
FG4A74E7F
4E8
GLC<64??L
ABG

8KC?<6<G?L
8I4?H4G87
4F
C4EG
B9
4A
<@C46G
988
4A4?LF<F
5HG
64A
;4I8
4
F<:A<9<64AG
<@C46G
BA
G;8
6BFG
B9
946<?<G<8F

*HE
4CCEB46;
<A6BECBE4G8F
6HEE8AG
946<?<GL
78F<:A
FG4A74E7F
<AGB
G;8
988
CEB:E4@
GB
E89?86G
G;8
<A6E84F<A:
6BAFGEH6G<BA
6BFG
B9
CH5?<6
946<?<G<8F
4A7


,01
01
+!
/!0
4E8
4A
4?G8EA4G8
@8G;B7
9BE
78G8E@<A<A:
G;8
4@BHAG
B9
946<?<G<8F
E8DH<E87
GB
466B@@B74G8
:EBJG;
54F87
BA
946<?<GL
6BFGF
C8E
HA<G
B9
78@4A7


BFG
FG4A74E7F
4E8
HF89H?
J;8A
78@4A7
FG4A74E7F
J8E8
ABG
8KC?<6<G?L
78I8?BC87
9BE
G;8
946<?<GL
C?4AA<A:
CEB68FF


BFG
FG4A74E7F
4?FB
8A45?8
7<998E8AG
GLC8F
B9
946<?<G<8F
GB
58
4A4?LM87
54F87
BA
4
F<A:?8
@84FHE8
6BFG
BE
I4?H8

HF89H?
J;8A
7<FC4E4G8
946<?<G<8F
4E8
9HA787
5L
4
F<A:?8
988
CEB:E4@

K4@C?8F
<A6?H78
946<?<GL
6BFGF
C8E
64C<G4

C8E
I8;<6?8
GE<C

BE
6BFG
C8E
:4??BA
B9
J4G8E
C8E
74L

Development Impact Fee Study


City of Calimesa, CA
Identifying New Development Facility Needs and Costs
28
64A
G4>8
F8I8E4?
7<998E8AG
4CCEB46;8F
GB
<78AG<9L
946<?<GL
A887F
4A7
6BFGF
GB
F8EI8
A8J
78I8?BC@8AG
/LC<64??L


G;<F
<F
4
GJB
FG8C
CEB68FF

<78AG<9L
GBG4?
946<?<GL
A887F
4A7

4??B64G8
GB
A8J
78I8?BC@8AG
<GF
94<E
F;4E8
B9
G;BF8
A887F

/BG4?
946<?<GL
A887F
4E8
B9G8A
<78AG<9<87
G;EBH:;
4
@4FG8E
946<?<GL
C?4AA<A:
CEB68FF
G;4G
GLC<64??L
G4>8F
C?468
6BA6HEE8AG
J<G;
BE
CE<BE
GB
6BA7H6G<A:
G;8
988
FGH7L

A:<A88E87
946<?<GL
C?4AF
4E8
C4EG<6H?4E?L
<@CBEG4AG
<A
G;8
4E84F
B9
GE499<6

J4G8E

F8J8E

4A7
FGBE@
7E4<A
7H8
GB
G;8
FC86<4?<M87
G86;A<64?
4A4?LF<F
E8DH<E87
GB
<78AG<9L
946<?<GL
A887F


/;8E8
4E8
G;E88
6B@@BA
@8G;B7F
9BE
78G8E@<A<A:
A8J
78I8?BC@8AGSF
94<E
F;4E8
B9
C?4AA87
946<?<G<8F
6BFGF

G;8
8K<FG<A:
<AI8AGBEL
@8G;B7

G;8
C?4AA87
946<?<G<8F
@8G;B7
4A7

G;8
FLFG8@
C?4A
@8G;B7
*9G8A
G;8
@8G;B7
F8?86G87

78C8A7F
BA
G;8
78:E88
GB
J;<6;
G;8
6B@@HA<GL
;4F
8A:4:87
<A
6B@CE8;8AF<I8
946<?<GL
@4FG8E
C?4AA<A:
GB
<78AG<9L
946<?<GL
A887F



/;8
9BE@H?4
HF87
5L
846;
4CCEB46;
4A7
G;8
47I4AG4:8F
4A7
7<F47I4AG4:8F
B9
846;
@8G;B7
<F
FH@@4E<M87
4F
9B??BJF


Existing Inventory Method
/;8
8K<FG<A:
<AI8AGBEL
@8G;B7
4??B64G8F
6BFGF
54F87
BA
G;8
E4G<B
B9
8K<FG<A:
946<?<G<8F
GB
78@4A7
9EB@
8K<FG<A:
78I8?BC@8AG
4F
9B??BJF

HEE8AG
14?H8
B9
K<FG<A:
!46<?<G<8F


HA<G
B9
78@4A7
K<FG<A:
8I8?BC@8AG
8@4A7

0A78E
G;<F
@8G;B7
A8J
78I8?BC@8AG
9HA7F
G;8
8KC4AF<BA
B9
946<?<G<8F
4G
G;8
F4@8
FG4A74E7
6HEE8AG?L
F8EI<A:
8K<FG<A:
78I8?BC@8AG


L
789<A<G<BA

G;8
8K<FG<A:
<AI8AGBEL
@8G;B7
E8FH?GF
<A
AB
946<?<GL
789<6<8A6<8F
4GGE<5HG45?8
GB
8K<FG<A:
78I8?BC@8AG

/;<F
@8G;B7
<F
B9G8A
HF87
J;8A
4
?BA:

E4A:8
C?4A
9BE
A8J
946<?<G<8F
<F
ABG
4I4<?45?8

*A?L
G;8
<A<G<4?

946<?<G<8F
GB
58
9HA787
J<G;
988F
4E8
<78AG<9<87
<A
G;8
988
FGH7L
!HGHE8
946<?<G<8F
GB
F8EI8
:EBJG;
4E8
<78AG<9<87
G;EBH:;
4A
4AAH4?

4C<G4?
$@CEBI8@8AG
+?4A

$+
4A7
5H7:8G
CEB68FF

CBFF<5?L
49G8E
6B@C?8G<BA
B9
4
A8J
946<?<GL
@4FG8E

C?4A


Planned Facilities Method
/;8
C?4AA87
946<?<G<8F
@8G;B7
4??B64G8F
6BFGF
54F87
BA
G;8
E4G<B
B9
C?4AA87
946<?<GL
6BFGF
GB
78@4A7
9EB@
A8J
78I8?BC@8AG
4F
9B??BJF

BFG
B9
+?4AA87
!46<?<G<8F


HA<G
B9
78@4A7
)8J
8I8?BC@8AG
8@4A7

/;<F
@8G;B7
<F
4CCEBCE<4G8
J;8A
FC86<9<6
C?4AA87
946<?<G<8F
64A
58
<78AG<9<87
G;4G
BA?L
58A89<G
A8J
78I8?BC@8AG

K4@C?8F
<A6?H78
FGE88G
<@CEBI8@8AGF
GB
4IB<7
789<6<8AG
?8I8?F
B9
F8EI<68
BE
4
F8J8E
GEHA>
?<A8
8KG8AF<BA
GB
4
CE8I<BHF?L
HA78I8?BC87
4E84

/;<F
@8G;B7
<F
4CCEBCE<4G8
J;8A
C?4AA87
946<?<G<8F
JBH?7
ABG
F8EI8
8K<FG<A:
78I8?BC@8AG

0A78E
G;<F
@8G;B7
A8J
78I8?BC@8AG
9HA7F
G;8
8KC4AF<BA
B9
946<?<G<8F
4G
G;8
FG4A74E7F
HF87
9BE
G;8
@4FG8E
946<?<GL
C?4A



System Plan Method
/;<F
@8G;B7
64?6H?4G8F
G;8
988
54F87
BA
G;8
E4G<B
B9
G;8
I4?H8
B9
8K<FG<A:
946<?<G<8F
C?HF
G;8
6BFG
B9
C?4AA87
946<?<G<8F
7<I<787
5L
78@4A7
9EB@
8K<FG<A:
C?HF
A8J
78I8?BC@8AG

14?H8
B9
K<FG<A:
!46<?<G<8F


BFG
B9
+?4AA87
!46<?<G<8F


HA<G
B9
78@4A7
K<FG<A:

)8J
8I8?BC@8AG
8@4A7

/;<F
@8G;B7
<F
HF89H?
J;8A
C?4AA87
946<?<G<8F
A887
GB
58
4A4?LM87
4F
C4EG
B9
4
FLFG8@
G;4G
58A89<GF
5BG;
8K<FG<A:
4A7
A8J
78I8?BC@8AG

$G
<F
7<99<6H?G

9BE
8K4@C?8

GB
4??B64G8
4
A8J
9<E8
FG4G<BA
FB?8?L
GB
A8J
78I8?BC@8AG
J;8A
G;4G
FG4G<BA
J<??
BC8E4G8
4F
C4EG
B9
4A
<AG8:E4G87
FLFG8@
B9
9<E8
FG4G<BAF
G;4G
JBE>
GB:8G;8E
GB
46;<8I8
G;8
78F<E87
?8I8?
B9
F8EI<68

+B?<68
FH5FG4G<BAF

6<I<6
68AG8EF

4A7
E8:<BA4?
C4E>F
4E8
8K4@C?8F
B9
F<@<?4E
946<?<G<8F


/;8
FLFG8@
C?4A
@8G;B7
8AFHE8F
G;4G
A8J
78I8?BC@8AG
7B8F
ABG
C4L
9BE
8K<FG<A:
789<6<8A6<8F
*9G8A

946<?<GL

FG4A74E7F
54F87
BA
CB?<6<8F
FH6;
4F
G;BF8
9BHA7
<A
"8A8E4?
+?4AF
4E8
;<:;8E
G;4A
8K<FG<A:
946<?<GL
FG4A74E7F
/;<F

@8G;B7
8A45?8F
G;8
64?6H?4G<BA
B9
G;8
8K<FG<A:
789<6<8A6L
E8DH<E87
GB
5E<A:
8K<FG<A:
78I8?BC@8AG
HC
GB
G;8
CB?<6L

54F87
FG4A74E7

/;8
?B64?
4:8A6L
@HFG
F86HE8
ABA
988
9HA7<A:
9BE
G;4G
CBEG<BA
B9
C?4AA87
946<?<G<8F

E8DH<E87
GB
6BEE86G

G;8
789<6<8A6L

GB
8AFHE8
G;4G
A8J
78I8?BC@8AG
E868<I8F
G;8
?8I8?
B9
F8EI<68
9HA787
5L
G;8
<@C46G
988

Development Impact Fee Study


City of Calimesa, CA
Calculating the Fee Schedule

G
<GF
F<@C?8FG

G;8
988
F6;87H?8
HF8F
G;8
6BFG
C8E
HA<G
B9
78@4A7
7<F6HFF87
<A
G;8
?4FG
FH5F86G<BA
GB
:8A8E4G8
G;8
988
F6;87H?8

/;<F
HA<G
6BFG
<F
@H?G<C?<87
5L
G;8
78@4A7
4FFB6<4G87
J<G;
4
A8J
78I8?BC@8AG
CEB=86G
GB
64?6H?4G8
G;8
988
9BE
G;4G
CEB=86G

/;8
988
F6;87H?8
HF8F
7<998E8AG
78@4A7
@84FHE8F
5L
?4A7
HF8
64G8:BEL
GB
CEBI<78
4
E84FBA45?8
E8?4G<BAF;<C
58GJ88A
G;8
GLC8
B9
78I8?BC@8AG
4A7
G;8
4@BHAG
B9
G;8
988
28
4E8
94@<?<4E
J<G;
4
J<78
E4A:8
B9
@8G;B7F

9BE
<78AG<9L<A:
4CCEBCE<4G8
?4A7
HF8
64G8:BE<8F
4A7
78@4A7
@84FHE8F
78C8A7<A:
BA
G;8
FGH7L

Related Approach Issues
Funding and Financing Strategies
$A
BHE
8KC8E<8A68

BA8
B9
G;8
@BFG
6B@@BA
CEB5?8@F
J<G;
<@C46G
988
CEB:E4@F
4A7
J<G;
@4AL
$+F
<F
G;4G
G;8

CEB:E4@
BE
C?4A
<F
ABG
9<A4A6<4??L
6BAFGE4<A87
GB
4AG<6<C4G87
E8I8AH8F
/;8
E8FH?G
<F
4
QJ<F;
?<FGR
B9
CEB=86GF
G;4G
:8A8E4G8
6B@@HA<GL
8KC86G4G<BAF
G;4G
B9G8A
64AABG
58
9H?9<??87
*HE
4CCEB46;
<F
GB
<AG8:E4G8
G;8
<@C46G
988
CEB:E4@

<AGB
G;8
?B64?
4:8A6LSF
8K<FG<A:

$+F
J;<?8
8A6BHE4:<A:
G;BF8
C?4AF
GB
58
9<A4A6<4??L
6BAFGE4<A87
GB
4I4<?45?8
E8FBHE68F

28
6?84E?L
FG4G8
G;8
6BFG
B9
6BEE86G<A:
8K<FG<A:
789<6<8A6<8F
<9
4AL

GB
7B6H@8AG
G;8
E8?4G<BAF;<C
58GJ88A

G;8
988
CEB:E4@
4A7
G;8
A887
9BE
477<G<BA4?
ABA
988
9HA7<A:


28
64A
4?FB
477E8FF
BA8
B9
G;8
@BFG
F<:A<9<64AG
7E4J546>F
B9
4A
<@C46G
988
CEB:E4@
O
G;8
<A45<?<GL
GB
FHCCBEG
6BAI8AG<BA4?
CH5?<6
785G
9<A4A6<A:

FB
CEB=86GF
64A
58
5H<?G
589BE8
4??
988
E8I8AH8F
;4I8
588A
E868<I87
$A

6B??45BE4G<BA
J<G;
9<A4A6<4?
47I<FBEF
4A7
HA78EJE<G8EF

J8
;4I8
78I8?BC87
FC86<9<6
HA78EJE<G<A:
6E<G8E<4
FB
G;4G
988F
64A
58
HF87
GB
C4L
546>
5BEEBJ<A:
<9
4ABG;8E
FBHE68
B9
6E87<G
8K<FGF
/LC<64??L

G;<F
4CCEB46;
<AIB?I8F
G;8
HF8
B9

8EG<9<64G8F
B9
+4EG<6<C4G<BA
BE
E8I8AH8
5BA7F
G;4G
4E8
64?<5E4G87
FB
G;4G
G;8L
64A
58
9H??L
E8C4<7
HF<A:
<@C46G
988
E8I8AH8F


Economic Development Concerns
/;8
78I8?BC@8AG
6B@@HA<GL
B9G8A
<F
6BA68EA87
G;4G
988F
4A7
BG;8E
8K46G<BAF
J<??
586B@8
GBB
;<:;
9BE
78I8?BC@8AG
GB
58
9<A4A6<4??L
984F<5?8
HA78E
6HEE8AG
@4E>8G
6BA7<G<BAF
'B64?
4:8A6<8F
;4I8
F8I8E4?
FGE4G8:<8F
GB
477E8FF
G;<F
6BA68EA

<A6?H7<A:



BA7H6G<A:
4A
4A4?LF<F
B9
G;8
GBG4?
5HE78A
C?4687
BA
78I8?BC@8AG
5L
8K46G<BAF

GB
F88
<9
984F<5<?<GL
@4L
58

6B@CEB@<F87
5L
G;8
CEBCBF87
988F


"4G;8E<A:
F<@<?4E
74G4
BA
G;8
GBG4?
988
5HE78A
<@CBF87
5L
A8<:;5BE<A:
BE
6B@C8G<A:
=HE<F7<6G<BAF

8I8?BC<A:
4
C?4A
9BE
C;4F<A:
<A
G;8
988F
BI8E
F8I8E4?
L84EF
GB
8A45?8
G;8
E84?
8FG4G8
@4E>8G
GB
47=HFG

+EBI<7<A:
BCG<BAF
9BE
78I8?BC8EF
GB
9<A4A68
<@C46G
988F
G;EBH:;
4FF8FF@8AGF
4A7
BG;8E
GLC8F
B9
9<A4A6<A:
7<FGE<6GF
4A7


$@CBF<A:
?8FF
G;4A
G;8
@4K<@H@
=HFG<9<87
988


$9
?8FF
G;4A
G;8
@4K<@H@
=HFG<9<87
988
<F
<@CBF87

J8
J<??
JBE>
J<G;
FG499
GB
<78AG<9L
4?G8EA4G<I8
E8I8AH8F
FBHE68F
9BE
G;8

$+

/;8

$+
F;BH?7
E8@4<A
9<A4A6<4??L
984F<5?8
GB
@4<AG4<A
E84?<FG<6
8KC86G4G<BAF
4@BA:
78I8?BC8EF

CB?<6L@4>8EF

4A7
G;8
CH5?<6


Stakeholder Participation
.G4>8;B?78E
C4EG<6<C4G<BA
G;EBH:;BHG
G;8
FGH7L
FHCCBEGF
4
FH668FF9H?
47BCG<BA
CEB68FF
*HE
4CCEB46;
<F
GB
6E84G8

6BAF8AFHF
9<EFG

4EBHA7
G;8
A887
9BE
946<?<G<8F
54F87
BA
4:E887
HCBA
946<?<GL
FG4A74E7F
.86BA7

J8
F88>
6BAF8AFHF

4EBHA7
4
984F<5?8
9HA7<A:
FGE4G8:L
9BE
G;8F8
A887F

?847<A:
GB
4A
4CCEBCE<4G8
EB?8
9BE
<@C46G
988F


"4<A<A:
6BAF8AFHF
4@BA:
I4E<BHF
:EBHCF
E8DH<E8F
4
54?4A687
7<F6HFF<BA
B9
5BG;
86BAB@<6
78I8?BC@8AG
4A7
6B@@HA<GL
F8EI<68
B5=86G<I8F

*9G8A

BHE
4CCEB46;
<A6?H78F
9BE@4G<BA
B9
4A
47I<FBEL
6B@@<GG88
GB
CEB@BG8
BHGE846;
GB
4A7
<ACHG
9EB@
G;8
78I8?BC@8AG
6B@@HA<GL
4A7
BG;8E
FG4>8;B?78EF
28
;4I8
8KG8AF<I8
8KC8E<8A68
946<?<G4G<A:

@88G<A:F
GB
8KC?4<A
G;8
CEB:E4@
4A7
:4<A
<ACHG


Program Implementation
!88
CEB:E4@F
E8DH<E8
4
68EG4<A
?8I8?
B9
47@<A<FGE4G<I8
FHCCBEG
9BE
FH668FF9H?
<@C?8@8AG4G<BA
*HE
9<A4?
E8CBEG
J<??

<A6?H78
E86B@@8A74G<BAF
9BE
4CCEBCE<4G8
CEB687HE8F

FH6;
4F


-8:H?4E?L
HC74G<A:
78I8?BC@8AG
9BE864FGF


-8:H?4E?L
HC74G<A:
988F
9BE
64C<G4?
CEB=86G
6BFG
<A9?4G<BA

-8:H?4E?L
HC74G<A:
64C<G4?
946<?<GL
A887F
54F87
BA
6;4A:<A:
78@4A7F

8I8?BC<A:
CEB687HE8F
9BE
78I8?BC8E
6E87<GF
4A7
E8<@5HEF8@8AGF
4A7


$A6?H7<A:
4A
47@<A<FGE4G<I8
6;4E:8
<A
G;8
988
CEB:E4@

Development Impact Fee Study 

City of Calimesa, CA
Work Plan
2<??74A
J<??
JBE>
J<G;
G;8

<GL
GB
HC74G8
<GF
<@C46G
988F
6BAF<FG8AG
J<G;
G;8
(<G<:4G<BA
!88
6G
4A7
BG;8E
E8?8I4AG
?4JF


28
J4AG
GB
8AFHE8
G;4G
BHE
F6BC8
B9
F8EI<68F
<F
E8FCBAF<I8
GB
G;8
<GLSF
A887F
4A7
FC86<9<6
?B64?
6<E6H@FG4A68F

28

J<??
JBE>
J<G;
G;8

<GL
GB
E8I<F8
BHE
CEBCBF87
F6BC8
54F87
BA
<ACHG
CE<BE
GB
4CCEBI4?
B9
4
6BAGE46G
4A7
4F
A88787

7HE<A:
G;8
6BHEF8
B9
G;8
FGH7L

2<??74A
4AG<6<C4G8F
HC74G<A:
G;8
9B??BJ<A:
988F


!?BB7

BAGEB?
E4<A4:8



7@<A<FGE4G<I8
!46<?<G<8F


'<5E4EL


.GE88G
4A7
/E499<6


'4J
A9BE68@8AG


+4E>F


!<E8
!46<?<G<8F

Task 1: Identify Policy Issues
Objective: $78AG<9L
4A7
7<F6HFF
CBG8AG<4?
CB?<6L
<FFH8F
E4<F87
5L
G;8
FGH7L
&<6>
B99
@88G<A:
J<G;
FG499
GB
E8I<8J

74G4
A887F

CB?<6L
<FFH8F

F6;87H?8
4A7
7<F6HFF
CBG8AG<4?
477<G<BA4?
988
64G8:BE<8F

Description: -8I<8J
4:8A6L
7B6H@8AGF
E8?4G87
GB
8K<FG<A:
64C<G4?
C?4AA<A:
CB?<6<8F
4A7
9HA7<A:
CEB:E4@F
<A6?H7<A:
8K<FG<A:
<@C46G
988F


E<A:
CB?<6L
<FFH8F
GB

<GL
FG499SF
4GG8AG<BA

4F
4CCEBCE<4G8

7HE<A:
G;8

CEB=86G
4A7
F88>
:H<74A68
CE<BE
GB
CEB6887<A:

+BG8AG<4?
CB?<6L
<FFH8F
<A6?H78



;4A:8F
<A
<@C?8@8AG4G<BA
E8FH?G<A:
9EB@





;4A:8F
<A
4CCEB46;
4A7
A8KHF
9<A7<A:F
A868FF4EL
GB
6B@C?L
J<G;




+BG8AG<4?
A8J
<@C46G
988F
9BE
6BAF<78E4G<BA
<A6?H7<A:

CBG8AG<4??L

5846;
4A7
6B4FG
E86E84G<BA

946<?<G<8F

?<98:H4E7
946<?<G<8F

;B@8?8FF
946<?<G<8F

4A7
?4J
8A9BE68@8AG
946<?<G<8F



78DH46L
B9
"8A8E4?
+?4A
4A7
BG;8E
CH5?<6
946<?<GL
C?4AA<A:
CB?<6<8F
8 :

?8I8?
B9
F8EI<68

FG4A74E7F
<@C46G
988
BE7<A4A68F
4A7
E8FB?HG<BAF

4A7
CE<BE
A8KHF
FGH7<8F



I4<?45<?<GL
B9
8K<FG<A:
CH5?<6
946<?<GL
@4FG8E
C?4AF
4A7
$+F
GB
<78AG<9L
A88787
946<?<G<8F


/LC8F
B9
946<?<G<8F
GB
58
9HA787
5L
846;
988


'4A7
HF8
64G8:BE<8F
9BE
<@CBF<G<BA
B9
988F


)8KHF
4CCEB46;
GB
78G8E@<A<A:
946<?<GL
FG4A74E7F


)8KHF
4CCEB46;
GB
4??B64G<A:
6BFG
5HE78A
4@BA:
?4A7
HF8F
<A6?H7<A:
A887
9BE
F8C4E4G8
988

MBA8F


+BG8AG<4?
4?G8EA4G<I8
9HA7<A:
FBHE68F

<9
A88787


!HA7<A:
8K<FG<A:
789<6<8A6<8F

<9
<78AG<9<87



+BG8AG<4?
988
MBA8F
BE
FH54E84F
GB
G4<?BE
G;8
988
CEB:E4@
BE
477E8FF
BG;8E
CB?<6L
6BAF<78E4G<BAF
4A7


$@C?8@8AG4G<BA
6BA68EAF
4A7
FGE4G8:<8F


Deliverables: 
$A9BE@4G<BA
E8DH8FGF
4A7

E8I<F87
CEB=86G
F6BC8
4A7
F6;87H?8
<9
A88787

Task 2: Identify Existing Development and Future Growth Objective: 
$78AG<9L
8FG<@4G8F
B9
8K<FG<A:
?8I8?F
B9
78I8?BC@8AG
4A7

<78AG<9L
4
CEB=86G<BA
B9
9HGHE8
:EBJG;
6BAF<FG8AG
J<G;
6HEE8AG
C?4AA<A:
CB?<6L


Description: $78AG<9L
54F8
L84E
9BE
8FG<@4G<A:
8K<FG<A:
?8I8?F
B9
78I8?BC@8AG
4A7
9BE
64?6H?4G<A:
946<?<GL
FG4A74E7F
54F87
BA
8K<FG<A:
946<?<GL
<AI8AGBE<8F
F88
/4F>


$A6?H78
8AG<G?87
78I8?BC@8AG
G;4G
JBH?7
58
8K8@CG

9EB@
988
CEB:E4@




BAFH?G
J<G;

<GL
FG499
GB
<78AG<9L
:EBJG;
CEB=86G<BAF
GB
4
789<A87
?BA:

E4A:8
C?4AA<A:
;BE<MBA

GB


L84EF

+EB=86G<BAF
CEBI<78
4
54F<F
9BE
78G8E@<A<A:
G;8
946<?<G<8F
A88787
GB
466B@@B74G8
:EBJG;
F88
/4F>



BAF<78E
CEB=86G<BAF
9EB@
E8:<BA4?
@8GEBCB?<G4A
C?4AA<A:
4:8A6<8F
4A7
BG;8E
4I4<?45?8
FBHE68F



<GL
FG499
GB
CEBI<78
8FG<@4G8F
4A7
CEB=86G<BAF
5L
MBA8
<9
A88787

8I8?BC
4CCEB46;
9BE
6BAI8EG<A:
?4A7
HF8
74G4
GB
@84FHE8
B9
946<?<GL
78@4A7
!BE
8K4@C?8

<78AG<9L

CBCH?4G<BA
4A7
8@C?BL@8AG
78AF<GL
946GBEF
GB
6BAI8EG
CBCH?4G<BA
4A7
8@C?BL@8AG
8FG<@4G8F
GB
7J8??<A:
HA<GF
4A7
5H<?7<A:
FDH4E8
9BBG4:8

.8?86G
4CCEBCE<4G8
4CCEB46;
9BE
846;
<@C46G
988
54F87
BA



I4<?45?8
?B64?
74G4
BA
946<?<GL
78@4A7
5L
?4A7
HF8
64G8:BEL


CCEB46;8F
HF87
5L
BG;8E
4:8A6<8F
4A7


.HCCBEG
9BE
BG;8E
4:8A6L
CB?<6L
B5=86G<I8F

Development Impact Fee Study 

City of Calimesa, CA

;4A:8F
GB
8FG<@4G8F
4A7
CEB=86G<BAF
7HE<A:
FH5F8DH8AG
G4F>F
6BH?7
64HF8
HA4AG<6<C4G87
899BEG
4A7
E8DH<E8
4A
4@8A7@8AG
GB
G;8
F6BC8
B9
F8EI<68F
4A7
5H7:8G
*5G4<A
4CCEBI4?
B9
8FG<@4G8F
4A7

CEB=86G<BAF
9EB@

<GL
FG499
CE<BE
GB
CEB6887<A:


Task 3: Determine Facility Standards
Note:

BA7H6G
/4F>F




4A7

F8C4E4G8?L
9BE
846;
<AG8A787
946<?<GL
4A7
988
GLC8

BA7H6G
G4F>F

6BA6HEE8AG?L
5864HF8
B9
G;8
89986G
B9
946<?<GL
FG4A74E7F
/4F>

946<?<GL
A887F
/4F>


4A7

4?G8EA4G<I8
9HA7<A:
/4F>

BA
G;8
988
64?6H?4G<BA


Objective: 8G8E@<A8
FG4A74E7F
GB
<78AG<9L
946<?<G<8F
E8DH<E87
GB
466B@@B74G8
:EBJG;

Description: $78AG<9L
4A7
8I4?H4G8
CBFF<5?8
946<?<GL
FG4A74E7F
78C8A7<A:
HCBA
G;8
946<?<GL
GLC8
6HEE8AG
946<?<GL

<AI8AGBEL
74G4

4A7
4I4<?45?8
946<?<GL
C?4AA<A:
7B6H@8AGF


BAF<78E
HF8
B9

47BCG87
CB?<6L

FG4A74E7F
8
:

"8A8E4?
+?4A

@4FG8E
946<?<GL
C?4AF

FG4A74E7F
78E<I87
9EB@
8K<FG<A:
946<?<GL
<AI8AGBE<8F
BE

FG4A74E7F
78E<I87
9EB@
4
?<FG
B9
C?4AA87
946<?<GL
CEB=86GF

<GL
FG499
GB
CEBI<78

CB?<6<8F

<AI8AGBE<8F

4A7
CEB=86G
?<FGF

2<??74A
J<??
JBE>
J<G;
G;8

<GL
GB
<78AG<9L
477<G<BA4?
6BFGF
G;4G

@<:;G
58
8?<:<5?8
9BE
9HA7<A:
5L
G;8
$!


Task 4: Determine Facilities Needs and Costs
Objective: $78AG<9L
G;8
GLC8

4@BHAG
4A7
6BFG
B9
946<?<G<8F
E8DH<E87
GB
466B@@B74G8
:EBJG;
4A7
6BEE86G
789<6<8A6<8F

<9
4AL


Description: ,H4AG<9L
GBG4?
C?4AA87
946<?<G<8F
54F87
BA
:EBJG;
CEB=86G<BA
9EB@
/4F>

4A7
946<?<GL
FG4A74E7F
9EB@
/4F>


KCE8FF
C?4AA87
946<?<G<8F
<A
:8A8E4?
DH4AG<G<8F
FH6;
4F
46E8F
B9
C4E>?4A7
BE
4F
4
FC86<9<6
?<FG

B9
64C<G4?
CEB=86GF
9EB@
4
@4FG8E
946<?<GL
C?4A



'B64G<BA
B9
C?4AA87
946<?<G<8F
@4L
BE
@4L
ABG
58
FC86<9<87
$9
BA?L
4
:8A8E4?
78F6E<CG<BA
B9
C?4AA87

946<?<G<8F
<F
4I4<?45?8
G;EBH:;
G;8
C?4AA<A:
;BE<MBA


<GL
FG499
GB
CEBI<78
4
?<FG
B9
FC86<9<6
64C<G4?
CEB=86GF
9BE
HF8
B9
988
E8I8AH8F
7HE<A:
G;8
F;BEG
G8E@
8
:

9<I8
L84EF



<FG<A:H<F;
58GJ88A

946<?<G<8F
A88787
GB
F8EI8
:EBJG;
G;4G
64A
58
9HA787
5L
<@C46G
988F
4A7

946<?<G<8F
A88787
GB
6BEE86G
8K<FG<A:
789<6<8A6<8F
G;4G
64AABG
58
9HA787
5L
<@C46G
988F
0F8
BA8

B9
G;E88
6BFG
4??B64G<BA
@8G;B7F
8K<FG<A:
<AI8AGBEL

FLFG8@
C?4A

BE
C?4AA87
946<?<G<8F




"4G;8E
C?4AA<A:
?8I8?
74G4
BA
A8J
946<?<G<8F
6BFGF
54F87
BA
?H@C
FH@
CEB=86G
6BFG
8FG<@4G8F
BE
HA<G

6BFGF
4A7
CEB=86G
DH4AG<G<8F
46E8F

5H<?7<A:
FDH4E8
988G

?4A8
@<?8F

8G6



BAF<78E
E868AG

<GL

8KC8E<8A68

?B64?
@4E>8G
74G4
FH6;
4F
?4A7
GE4AF46G<BAF

4A7
6BAFH?G4AG
G84@
8KC8E<8A68
9EB@
CE<BE

CEB=86GF

$A9?4G8
B?78E
6BFG
8FG<@4G8F
GB
54F8
L84E
HF<A:
4CCEBCE<4G8
6BFG
<A7<68F


/;8
E8I<F87
946<?<GL
6BFGF
J<??
9BE@
G;8
54F<F
B9
G;8
64C<G4?
<@CEBI8@8AG
CEB:E4@
A88787
9BE
6B@C?<4A68
J<G;




%&/
/ ,-"
,#
3,.(
!,"/
+,0
&+ )1!"

!!&0&,+
)
"+$&+"".&+$

+
)5/&/
&+ )1!&+$
0.
##&

"+$&+"".&+$
0,
&!"+0&#5
0,0
)
#
&)&05
+""!/
"4&/0&+$
!"#& &"+ &"/
,.
,/0
"/0&*
0"/

+5
/1 %

"+$&+"".&+$!"/&$+
3,.(

+
"
-.,2&!"!
1+!".


/"-
.
0"
,+0.
0
3&0%

&))!
+
+$&+"".&+$

,.


0%&.!
-
.05
,3"2".

&))!
+

+
1/"
.,1$%
!"/ .&-0&,+/

+!
,*-
.
)"/
0,

) 1)
0"



."
/,+
)"
,/0
"/0&*
0"
/1##& &"+0
#,.
1/"
&+
0%"

/01!5

Task 5: Identify Funding and Financing Alternatives
Objective: 8G8E@<A8
G;8
8KG8AG
B9
4?G8EA4G<I8
ABA
988
9HA7<A:
4I4<?45?8
9BE
A8J
946<?<G<8F


Description: $9
<@C46G
988F
4E8
:B<A:
GB
BA?L
C4EG<4??L
9HA7
4
64C<G4?
CEB=86G
G;8




E8DH<E8F
G;8

4:8A6L
E8CBEG
BA
G;8
4AG<6<C4G87
FBHE68
4A7
G<@<A:
B9
G;8
477<G<BA4?
9HA7<A:
8I8EL
9<I8
L84EF
/;8E8

4E8
GJB
GLC8F
B9
4?G8EA4G<I8
9HA7<A:
FBHE68F
G;4G
J8
J<??
<78AG<9L


!HA7<A:
9EB@
ABA
<@C46G
988
FBHE68F
GB
6BEE86G
8K<FG<A:
789<6<8A6<8F
4A7



!HA7<A:
9EB@
A8J
78I8?BC@8AG
BG;8E
G;4A
<@C46G
988F
G;4G
@HFG
58
6E87<G87
4:4<AFG
A8J
78I8?BC@8AGSF
<@C46G
988
6BAGE<5HG<BAF

CBFF<5?L
<A6?H7<A:
G4K8F
C4<7
GB
9<A4A68
946<?<G<8F




$78AG<9L
4AG<6<C4G87
4?G8EA4G<I8
9HA7<A:
54F87
BA
<A9BE@4G<BA
9EB@
<GL
FG499
BE
ABG8
G;4G
9HA7F
4E8
FG<??

GB
58
<78AG<9<87
54F87
BA
4
?<FG
B9
CEB545?8
9HA7<A:
4?G8EA4G<I8F
$9
988F
J<??
9HA7
785G
F8EI<68
<A6?H78

9<A4A6<A:
6BFGF
<A
G;8
GBG4?
6BFG
B9
946<?<G<8F




FFH@8
946<?<G<8F
GB
58
9HA787
CE87B@<A4AG?L
BA
4
C4L
4F
LBH
:B
54F<F

.6BC8
7B8F
ABG
<A6?H78
4

64F;
9?BJ
4A4?LF<F
GB
4A4?LM8
89986G
B9
G<@<A:
B9
988
E8I8AH8F
BA
9<A4A6<A:
6BFGF

Development Impact Fee Study 

City of Calimesa, CA
Task 6: Comparison Analysis
Objective: +EBI<78
4
6B@C4E<FBA
B9
G;8
6HEE8AG
4A7
CEBCBF87
<@C46G
988F
GB
G;BF8
B9
6B@C4E45?8 FHEEBHA7<A:

=HE<F7<6G<BAF
<A
-<I8EF<78

BHAGL



Description:
<GL
FG499
J<??
6B@C4E8
4
GBG4?
B9
9<I8
-<I8EF<78

BHAGL
=HE<F7<6G<BAF
GB
58
F8?86G87
5L
G;8

<GL

2<??74A

J<??
:H<78
FG499
<A
6B@C4E<FBA
@8G;B7B?B:L
4A7
CEBI<78
8K4@C?8F
9EB@
BG;8E
=HE<F7<6G<BAF

Task 7: Calculate Fees and Prepare Report
Objective: +EBI<78
G86;A<64??L
7898AF<5?8
988
E8CBEG
G;4G
6B@CE8;8AF<I8?L
7B6H@8AGF
CEB=86G
4FFH@CG<BAF

@8G;B7B?B:<8F

4A7
E8FH?GF


Description: "8A8E4G8
988
F6;87H?8
GB
4CCBEG<BA
946<?<GL
6BFGF
GB
<A7<I<7H4?
78I8?BC@8AG
CEB=86GF
0F8
946<?<GL
6BFGF

C8E
HA<G
B9
78@4A7
@H?G<C?<87
5L
78@4A7
5L
?4A7
HF8
64G8:BEL
54F87
BA
74G4
78I8?BC87
<A
CE<BE
G4F>F




+E8C4E8
7E49G
E8CBEG
G45?8F
9BE

<GL
FG499
GB
E8I<8J

G;4G
7B6H@8AG
846;
FG8C
B9
G;8
4A4?LF<F

<A6?H7<A:

F6;87H?8
B9
@4K<@H@
=HFG<9<87
988F
5L
946<?<GL
GLC8
?4A7
HF8
64G8:BEL
4A7
4??
BG;8E
E8DH<E8@8AGF
B9
G;8
(<G<:4G<BA
!88

6G



!B??BJ<A:
BA8

EBHA7
B9
6B@@8AGF
9EB@

<GL
FG499
BA
G;8
DH4AG<G4G<I8
4A4?LF<F
4A7
988
F6;87H?8F

CE8C4E8
47@<A<FGE4G<I8
7E49G
E8CBEG

/;8
E8CBEG
J<??
6BAG4<A
4??
E8DH<E87
64?6H?4G<BAF
4A7
4FFH@CG<BAF


$A
477<G<BA

2<??74A
J<??
CEBI<78
G;8

<GL
J<G;
58FG
CE46G<68F
E8:4E7<A:
4
E4A:8
B9
CB?<6L
786<F<BAF
9BE
6BAF<78E4G<BA
5L
G;8

<GL

BHA6<?

<A6?H7<A:
<A68AG<I8F
9BE
499BE745?8
;BHF<A:
CEB7H6G<BA
4A7
6BAF<78E4G<BAF
B9
G;8
<@C46G
B9
988F
BA
78I8?BC@8AG
<A
G;8
<GL



!B??BJ<A:
BA8

EBHA7
B9
6B@@8AGF
BA
47@<A<FGE4G<I8
7E49G
CE8C4E8
CH5?<6
7E49G
9BE
CE8F8AG4G<BA
GB

<AG8E8FG87
C4EG<8F

G;8
CH5?<6
4A7
8?86G87
B99<6<4?F

/;<F
CH5?<6
E8I<8J
7E49G
J<??
58
CE8F8AG87
4A7
CH5?<6
FG4>8;B?78E
@88G<A:F
4A7
4G
4

BHA6<?
<A9BE@4G<BA4?
F8FF<BA

+E8C4E8
9<A4?
E8CBEG

<9
A868FF4EL

54F87

BA
6B@@8AGF
E868<I87
BA
G;8
CH5?<6
7E49G
E8CBEG

$9
E8DH8FG87

CBFG
G;8
E8CBEG
BA
BHE
J85F<G8
9BE
CH5?<6

4668FF

)BG8
G;4G
4F
B9
%4AH4EL


G;8
)8KHF
FGH7L
<F
47BCG87
F8C4E4G8?L
9EB@
G;8
988F

4A7
J<G;

4

74L
ABG<68



!88F
J<??
58
64?6H?4G<A:
E8F<78AG<4?
?4A7
HF8F
<A
6B@C?<4A68
J<G;




+EBI<78
?8:4?
6BHAF8?
J<G;
6BC<8F
B9
988
E8FB?HG<BAF
4A7
BE7<A4A68F
HF87
5L
BG;8E
=HE<F7<6G<BAF

Deliverables:
28
J<??
CEBI<78
HC
GB
GJB

5BHA7
6BC<8F
B9
G;8
7E49G
E8CBEG
BA8

HA5BHA7
6BCL

BA8

(<6EBFB9G

2BE7
6BCL
4A7
HC
GB
GJB

5BHA7
6BC<8F
B9
G;8
9<A4?
E8CBEG

Task 8: Policy Guidance and Best Practices
Objective: +EBI<78
477<G<BA4?
:H<74A68
BA
4
E4A:8
B9
CB?<6L
<FFH8F
E8DH8FG87
5L
G;8
<GL


Description: $A
477<G<BA4?
GB
G;8
?8:4?
4A7
G86;A<64?
E8DH<E8@8AGF
B9
G;8
A8KHF
FGH7L
2<??74A
J<??
CEBI<78
:H<74A68

4A7
FHCCBEG
BA
G;8
9B??BJ<A:
<FFH8F


K8@CG<BAF
BE
47=HFG@8AGF
GB
988F
9BE
CB?<6L
CE<BE<G<8F
FH6;
4F
499BE745?8
;BHF<A:
BE
86BAB@<6
78I8?BC@8AG



HEE8AG
988
466BHAG<A:
4A7
47@<A<FGE4G<BA


+BG8AG<4?
A8J
988
64G8:BE<8F



AAH4?
988
E8CBEG<A:
4A7
HC74G8
@8G;B7B?B:L



8FG
CE46G<68F
9EB@
BG;8E
=HE<F7<6G<BAF

4F
4CC?<645?8



Deliverables:
(8@B
9BE

<GL

BHA6<?
G;8F8
<FFH8F
4E8
GLC<64??L
<A6?H787
<A
G;8
FG499
E8CBEG
BE
4F
4
F8C4E4G8
4GG46;87
@8@B



Task 9: Meetings
Objective: /;8
CEB=86G
@4A4:8E
BE
BG;8E
A868FF4EL
2<??74A
FG499
J<??
4GG8A7
CEB=86G
@88G<A:F


@8@58E
B9
G;8

$@C46G
!88
CEB=86G
G84@
J<??
4GG8A7
HC
GB
9<I8

<A
C8EFBA
@88G<A:F
4A7
CE8F8AG4G<BAF
G;EBH:;BHG

G;8

<GLSF
8A:4:8@8AG

+;BA8
6BA98E8A68F
4E8
ABG
6BAF<78E87
@88G<A:F
9BE
G;8
CHECBF8F
B9
G;<F
F6BC8




Optional: *CG<BA4?
FG4>8;B?78E
4A7

BHA6<?
@88G<A:F
@4L
58
E8DH8FG87
5L
G;8

<GL

Development Impact Fee Study 

City of Calimesa, CA
Staff Support
/B
6B@C?8G8
BHE
G4F>F

J8
J<??
A887
G;8
6BBC8E4G<BA
B9

<GL
B9

4?<@8F4
FG499

28
FH::8FG
G;4G
G;8

<GL
4FF<:A
4
>8L

<A7<I<7H4?
GB
E8CE8F8AG
G;8

<GL
4F
G;8
CEB=86G
@4A4:8E
J;B
64A
9HA6G<BA
4F
BHE
CE<@4EL
6BAG46G
28
4AG<6<C4G8
G;4G

G;8

<GLSF
CEB=86G
@4A4:8E
J<??



BBE7<A4G8
E8FCBAF8F
GB
E8DH8FGF
9BE
<A9BE@4G<BA




BBE7<A4G8
E8I<8J
B9
JBE>
CEB7H6GF
4A7



#8?C
E8FB?I8
CB?<6L
<FFH8F



2<??74A
J<??
E8?L
BA
G;8
I4?<7<GL
4A7
466HE46L
B9
G;8

<GLSF
74G4
4A7
7B6H@8AG4G<BA
GB
6B@C?8G8
G;8
4A4?LF<F

2<??74A

J<??
E8?L
BA
G;8
74G4
4F
58<A:
466HE4G8
J<G;BHG
C8E9BE@<A:
4A
<A78C8A78AG
I8E<9<64G<BA
B9
466HE46L
4A7
J<??
ABG
58
E8FCBAF<5?8
9BE
4AL
8EEBEF
G;4G
E8FH?G
9EB@
<A466HE4G8
74G4
CEBI<787
5L
G;8
6?<8AG
BE
4
G;<E7
C4EGL


Project Disclaimer
/;8

<GL
B9

4?<@8F4
9HEG;8E
E8CE8F8AGF

46>ABJ?87:8F

4A7
4:E88F
G;4G

<
/;8

<GL
HF8F

BE
@4L
HF8

G;8
F8EI<68F
B9
BA8
BE
@BE8
@HA<6<C4?
47I<FBEF
E8:<FG8E87
J<G;
G;8
0 .

.86HE<G<8F
4A7

K6;4A:8

B@@<FF<BA
Q.

R
GB
47I<F8
<G
<A
6BAA86G<BA
J<G;
@HA<6<C4?
9<A4A6<4?
CEB7H6GF
4A7
G;8
<FFH4A68
B9
@HA<6<C4?
F86HE<G<8F

<<
/;8

<GL
<F
ABG
?BB><A:
GB
2<??74A
GB
CEBI<78

4A7

<GL
F;4??
ABG
BG;8EJ<F8
E8DH8FG
BE
E8DH<E8
2<??74A
GB
CEBI<78

4AL
47I<68
BE
E86B@@8A74G<BAF
J<G;
E8FC86G
GB
@HA<6<C4?
9<A4A6<4?
CEB7H6GF
BE
G;8
<FFH4A68
B9
@HA<6<C4?
F86HE<G<8F
<A6?H7<A:
4AL
47I<68
BE
E86B@@8A74G<BAF
J<G;
E8FC86G
GB
G;8
FGEH6GHE8
G<@<A:

G8E@F

4A7
BG;8E
F<@<?4E

@4GG8EF
6BA68EA<A:
FH6;
9<A4A6<4?
CEB7H6GF
BE
<FFH8F
<<<
/;8
CEBI<F<BAF
B9
G;<F
CEBCBF4?
4A7
G;8
F8EI<68F
GB
58
CEBI<787
;8E8HA78E
4F
BHG?<A87
<A
G;8
F6BC8
B9
F8EI<68F
4E8
ABG
<AG8A787
4A7
F;4??
ABG
58
6BAFGEH87
GB
6BAFG<GHG8
BE
<A6?H78
4AL
@HA<6<C4?
47I<FBEL
F8EI<68F
J<G;<A
G;8
@84A<A:
B9
.86G<BA


B9
G;8
0
.

.86HE<G<8F
K6;4A:8

6G
B9


4F
4@8A787
G;8
Q K6;4A:8

6GR

4A7
G;8

EH?8F
4A7
E8:H?4G<BAF
47BCG87
G;8E8HA78E


<I
!BE
G;8
4IB<74A68
B9
7BH5G
4A7
J<G;BHG
?<@<G<A:
G;8
9BE8:B<A:

<A
6BAA86G<BA
J<G;
4AL
E8I8AH8
CEB=86G<BAF

64F;

9?BJ
4A4?LF8F

984F<5<?<GL
FGH7<8F
4A7
BE
BG;8E
4A4?LF8F
2<??74A
@4L
CEBI<78
G;8

<GL
J<G;
E8FC86G
GB
9<A4A6<4?


86BAB@<6
BE
BG;8E
@4GG8EF
E8?4G<A:
GB
4
CEBFC86G<I8

A8J
BE
8K<FG<A:
<FFH4A68
B9
@HA<6<C4?
F86HE<G<8F
B9
G;8
<GL





4AL
FH6;
CEB=86G<BAF

FGH7<8F
4A7
4A4?LF8F
F;4??
58
54F87
HCBA
4FFH@CG<BAF

BC<A<BAF
BE
I<8JF
<A6?H7<A:


J<G;BHG
?<@<G4G<BA

4AL
4FFH@CG<BAF
E8?4G87
GB
E8I8AH8
:EBJG;
8FG45?<F;87
5L
G;8
<GL

<A
6BA=HA6G<BA
J<G;
FH6;

B9
<GF
@HA<6<C4?

9<A4A6<4?

?8:4?
4A7
BG;8E
47I<F8EF
4F
<G
788@F
4CCEBCE<4G8
4A7
 
HA78E
AB
6<E6H@FG4A68F
F;4??

2<??74A
58
4F>87
GB
CEBI<78

ABE
F;4??
<G
CEBI<78

4AL
47I<68
BE
E86B@@8A74G<BAF
BE
FH5=86G<I8
4FFH@CG<BAF

BC<A<BAF
BE
I<8JF
J<G;
E8FC86G
GB
G;8
46GH4?
BE
CEBCBF87
FGEH6GHE8
G8E@F

G<@<A:

CE<6<A:
BE
BG;8E
F<@<?4E
@4GG8EF

J<G;
E8FC86G
GB
4AL
@HA<6<C4?
9<A4A6<4?
CEB7H6GF
BE
@HA<6<C4?
F86HE<G<8F
<FFH4A68F
<A6?H7<A:
4AL
E8I<F<BAF
BE

4@8A7@8AGF
G;8E8GB
4A7

I
)BGJ<G;FG4A7<A:
4??
B9
G;8
9BE8:B<A:

G;8

<GL
E86B:A<M8F
G;4G
<AG8ECE8G<I8
:H<74A68
E8:4E7<A:
@HA<6<C4?
47I<FBEL
46G<I<G<8F
<F
6HEE8AG?L
DH<G8
?<@<G87
4A7
<F
?<>8?L
GB
8IB?I8
4A7
78I8?BC
7HE<A:
G;8
G8E@
B9
G;8
CBG8AG<4?
8A:4:8@8AG
4A7

GB
G;4G
8A7

G;8

<GL
J<??
JBE>
J<G;
2<??74A
G;EBH:;BHG
G;8
G8E@
B9
G;8
CBG8AG<4?
:E88@8AG
GB
8AFHE8
G;4G
G;8

:E88@8AG
4A7
G;8
F8EI<68F
GB
58
CEBI<787
5L
2<??74A
;8E8HA78E
<F
<AG8ECE8G87
5L
G;8
C4EG<8F

4A7
<9
A868FF4EL

4@8A787

<A
4
@4AA8E
<AG8A787
GB
8AFHE8
G;4G
G;8

<GL
<F
ABG
4F><A:
2<??74A
GB
CEBI<78

4A7
2<??74A
<F
ABG
<A
946G

CEBI<7<A:
BE
E8DH<E87
GB
CEBI<78

4AL
@HA<6<C4?
47I<FBEL
F8EI<68F