Bridge and road tolls may be reimbursable with receipts.
Receipts are required for reimbursement of allowable parking fees.
MISCELLANEOUS EXPENSES:
Miscellaneous expenses, including charges for fax servic e, internet, the cost of usual or necessary services and supplies, including emergency repairs, parts or towi ng for City vehicles, conference registration fees, vehicle parking, bridge tolls, and any other justifiable business expenses shall be allowed if the expense is necessary for the employee to conduct City related business or is otherwise a legitimate business need.
A satisfactory explanation and documentation of t he circumstances is required for these miscellaneous expenditures. An employee's reimbursement request for actual miscellaneous expenses shall be accompanied by an original receipt or other original voucher.
272|PAGE
FINANCIAL POLICIES
NON-REIMBURSABLE EXPENSES:
Expenses that the city will not reimbu rse include, but are not limited to:
o Purchases made for goods and/or services of a business owned (whether in whole or in part) by any current member of the City Council, or other authority for which the city is a partner agency.
o The personal portion of any trip.
o Political or charitable contributions.
o Family expenses, including spouse or partner's expenses when accompanying an employee on agency-related business, as well as children- or pet-related expenses.
o Personal guest expenses
o Entertainment expenses, including but not limited to theater, movies (either in-room or at the theater), recreational events not related to City business (including gym, massage and/or golf related expenses), and cultural events not related to City business.
o Personal automobile expenses, including repairs, traffic citations, insurance, or gasoline.
o Personal alcohol or bar expenses, even when incu rred in conjunction with reimbursable meal expenses.
o Personal losses incurred while on City business.
o Expenses bearing no relation to City business, ev en if incurred while traveling for City business.
o If an expense is not outlined in this policy, it may be subject to dismissal or rejection.
PENALTIES:
Penalties for the misuse of public resources, non-com pliance with this policy or falsifying expense reports in violation of expense reporting policies may include, but are not be limited to, employee discipline as well as the penalties specified in state law including:
o The loss of reimbursement privileges.
o Restitution to the local agency.
o Civil penalties for misuse of public resources pu rsuant to Section 8314 of the Government Code; and,
o Prosecution for misappropriation of public resources, per Section 424 of the Penal Code.
273|PAGE
FINANCIAL POLICIES
EXEMPTIONS
The City Manager or Designee is authorized to exempt, by ratification after the expense is incurred or prior to the expense being incurred, any City personnel from the official rules, regulations, and procedures set forth herein under extenuating circumstances.
The City Manager or Designee may, at their discretion, approve or disapprove any of the types of travel and/or business expenses outlined above, or any other expense not listed, as they deem appropriate under the specific circumstances.
The City Manager or Designee shall decide all questions of interpretation of the policies, rules, regulations, and procedures set forth herein.
DISPUTES
Disputed expenditures may be brought to t he City Manager or Designee for resolution.
274|PAGE
DEBT ADMINISTRATION
The City of Cathedral City (“City”) has financed capital acquisitions by issuing bonds and entering into capital leases.
The table below highlights the total principal and interest due for FY 2023/2024 and FY 2024/2025. Amounts due beyond the current two-year budget period are summarized in a single line.
Separate tables identifying principal and interest amounts are included in the individual sections that follow.
BONDS
Lease Revenue Bonds
Lease revenue bonds were issued by the Cathedral City Public Financing Authority (“Authority”) and loaned to the City. The City pledged lease revenues to the Authority for repayment of the bonds. Monies from the 1997 bonds were used to make a construction loan to Big League Dreams Sports, LLC for the construction of a sports complex and community park. In July 2015 the authority sold lease revenue refunding bonds to refund the 1997 bonds.
On April 13, 2022, the Cathedral City Public Financing Aut hority issued Cathedral City Public Financing Authority Lease Revenue Bonds, 2022 Series A (Federally Taxable) in the amount of $28,780,000. The purpose of the issuance of the bonds was to refinance a portion of the City’s CalPERS Obligation and refund the outstanding Authority Lease Revenue Refunding Bonds Series 2015A (Taxable). The City Council approved the issuance of the pension obligation bonds on September 15, 2021.
The table below highlights the total principal and interest due for FY 2023/2024 and FY 2024/2025 on the new issue. Amounts due beyond the current two-year budget period are summarized in a single line.
Year Ended
June 30
Lease
Revenue
Bonds
Limited
Obligation
Bonds
Tax
Allocation
Bonds
Capital
Lease
Obligations Total
2024 3,664,632$ 2,806,091 5,075,077 - 11,545,800 2025 3,609,694 2,808,942 5,075,001 - 11,493,636 2026 - 2036 24,597,955 25,494,294 34,624,955 - 84,717,203 Total 31,872,281$ 31,109,327 44,775,032 - 107,756,639
OUTSTANDING DEBT
Year Ended
June 30 Principal Interest Total
2024 2,705,000$ 959,632 3,664,632
2025 2,730,000 879,694 3,609,694
2026 - 2033 20,715,000 3,882,955 24,597,955 Total 26,150,000$ 5,722,281 31,872,281
LEASE REVENUE BONDS
275|PAGE
DEBT ADMINISTRATION
Local Agency Revenue Bonds
Local Agency Revenue bonds were issued by the Authority and used to purchase outstanding Assessment District Bonds: Assessment District 96-1 (Rio Vista), Assessment District 01-01, Assessment District 03-01 (35th Avenue), Assessment District 04-01 (Dream Homes) and Assessment District 04-02 (Cove). In addition, the Authority’s 2004 Limited Obligation Refunding Bonds, were refunded. Repaym ent of the bonds is secured solely by the payments received from the purchased assessment district bonds.
The table that follows highlights the total principal and interest due for FY 2023/2024 and FY 2024/2025. Amounts due beyond the current two-year budget period are summarized in a single line.
Tax Allocation Bonds
The proceeds of various tax allocation bonds issued by the Authority were either loaned to the former redevelopment agency to assist in financing the acquisition and construction of capital projects within the redevelopment area or used to purchase debt of the former redevelopment agency. Tax increment revenues were pledged by the former redevelopment agency to the Authority for debt service.
The State of California dissolved all redevelopment agencies in January 2012. Effective February 1, 2012, the Successor Agency to the RDA was established to pay all enforceable obligations of the former redevelopment agency. The tax allocation bonds are considered an enforce able obligation. Property taxes are allocated to the Successor Agency to the RDA from Riverside County based on the annually approved Recognized Obligation Payment Schedule (ROPS), which includes the bond payments.
In October 2014, the Successor Agency to the RDA issued Tax Allocation Refunding Bonds, Series 2014A ($46,140,000), Tax Allocation Housing Revenue Refunding Bonds, Series 2014B ($15,630,000) and Taxable Tax Allocation Housing Revenue Refunding Bonds, Series 2014C ($11,985,000). These bonds refunded the Cathedral City Public Financing Authority’s 2002 Tax Allocation Bonds, Series A; 2002 Tax Allocation Bonds, Series D; 2002 Tax Allocation Bonds, Series E; 2004 Tax Allocation Bonds, Series A; 2005 Tax Allocation Bonds, Series A; and a portion of the 2000 Tax Allocation Bonds, Series A.
In January 2021, the Successor Agency to the RDA issued Tax Allocation Revenue Refunding Bonds, Series 2021A ($26,195,000), Tax Allocation Revenue Refunding Bond s, Series 2021B ($5,905,000) and Subordinate Taxable Tax Allocation Revenue Refunding Bonds, Series 2021C ($18,840,000). These bonds refunded the Cathedral City Public Financing Authority’s 2004 Tax Allocation Bonds, Series B; 2007 Tax Allocation Bonds, Series A; and 2007 Tax Allocation Bonds, Series C.
Year Ended
June 30 Principal Interest Total
2024 1,880,000 $ 926,091 2,806,091
2025 1,955,000 853,942 2,808,942 2026 - 2036 20,970,000 4,524,294 25,494,294 Total 24,805,000$ 6,304,327 31,109,327
LOCAL AGENCY REVENUE BONDS
276|PAGE
DEBT ADMINISTRATION
The table below highlig
hts the total principal and interest due on the remaining tax allocation bonds for FY 2023/2024 and FY 2024/2025. Amounts due beyond the current two-year budget period are summarized in a single line. The table does not include the refunding bonds issued by the Succ essor Agency to the RDA as these bonds are the sole responsibility of the Successor Agency to the RDA (a private purpose trust fund).
Year Ended
June 30 Principal Interest Total
2024 2,891,094 $ 2,183,984 5,075,077
2025 3,015,528 2,059,473 5,075,001
2026 - 2036 23,084,379 11,540,575 34,624,955
Total 28,991,000$ 15,784,032 44,775,032
TAX ALLOCATION BONDS
277|PAGE
LEGAL DEBT MARGIN
Under State law, the City has a legal debt limitation not to exceed 15% of the total assessed valuation of taxable property within the City boundaries. In accordance with California Government Code Section 43605, only the City’s general obligation bonds are subject to the legal debt limit. With no outstanding debt subject to the legal debt limit and a legal debt limit of $773,530,976, the City is not at risk of exceeding the legal debt limit.
Legal Debt Margin Calculation as of June 30, 2022
Assessed value (net taxable) 1 $ 5,348,739,839
Debt limit (15% of assessed value) $ 802,310,976
Less outstanding debt (subject to legal debt limit) (28,780,000)
Legal debt margin $ 773,530,976
1 Source: HdL Coren & Cone (Riverside County Assessor 2021/22 Combined Tax Rolls), as reported in City of Cathedral City, California Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2022.
278|PAGE
APPENDICIES
Glossary of Acronyms
Glossary of Terms
279|PAGE
GLOSSARY OF ACRONYMS
A
AB: Assembly Bill
ABC: Alcohol Beverage Control
ACBCI: Agua Caliente Band of Cahuilla Indians
ACFR: Annual Comprehensive Financial Report
AD: Assessment District
ADA: Americans with Disabilities Act
ADFAP: Assessment District Fee Assistance Program
AFSCME: American Federation of State, County and Municipal Employees ALS: Advanced Life Support
AO: Ambulance Operator
APWA: American Public Works Association
ATP: Active Transportation Program
B
BLS: Basic Life Support
C
CA: California
CAD: Computer Aided Dispatch
CALED: California Association for Local Economic Development CalPERS: California Public Employees’ Retirement System CCFMA: Cathedral City Fire Management Association
CCHS: Cathedral City High School
CCPD: Cathedral City Police Department
CCPFA: Cathedral City Professional Firefighters Association CCPMA: Cathedral City Police Management Association
CCPOA: Cathedral City Police Officers Association
CDBG: Community Development Block Grant
CDTFA: California Department of Tax and Fee Administration CERT: Community Emergency Response Team
CFD: Community Facilities District
CHIP: Community Home Improvement Program
CIP: Capital Improvement Project
280|PAGE
GLOSSARY OF ACRONYMS
CIWMB: Countywide Integrated Waste Management Bureau
CMO’s: Collateralized Mortgage Obligations
COP: Citizens on Patrol
COVID-19: Novel Coronavirus 2019-nCoV
CPR: Cardiopulmonary Resuscitation
CRRA: California Resource Recovery Association
CSO: Community Resource Officer
CURC: City Urban Revitalization Corporation
CV: Coachella Valley
CVAG: Coachella Valley Association of Governments
CVEP: Coachella Valley Economic Partnership
CVRep: Coachella Valley Repertory
CVWD: Coachella Valley Water District
CY: Calendar Year
D
DHRP: Dream Homes Rehabilitation Program
DHS: Desert Hot Springs
DIF: Development Impact Fee
DMV: Department of Motor Vehicles
DRD: Desert Recreation District
DUI: Driving Under the Influence
E
E/O: East of
EAP: Employee Assistance Program
ECD: Early Childhood Development
EDA: Economic Development Authority
EMD: Emergency Management Division
EMD: Emergency Medical Dispatching
EMPG: Emergency Management Performance Grant
EMS: Emergency Medical Service
EMT: Emergency Medical Technician
281|PAGE
GLOSSARY OF ACRONYMS
EOC: Emergency Operations Center
ERICA: East Riverside County Interoperability Communications Authority ERP: Enterprise Resource Planning
F
FTE: Full-Time Equivalents
FTHB: First Time Home Buyer
FTO: Field Training Officer
FY: Fiscal Year
G
GASB: Governmental Accounting Standards Board
GC: Government Code
GCVCC: Greater Coachella Valley Chamber of Commerce
GEMT: Ground Emergency Medical Transport
GFOA: Government Finance Officers Association
GIS: Geographic Information Systems
H
HBPF: Highway Bridge Program Fund
HEAL: Healthy Eating Active Living
HSIP: Highway Safety Improvement Program
HUD: Housing and Urban Development
I
IES: Inland Empire Section
IO’s: Interest-Only
ISO: Insurance Services Office
L
LAIF: Local Agency Index Fund
LGBT: Lesbian, Gay, Bisexual, Transgender
LWCF: Land and Water Conservation Fund
M
MOE: Maintenance of Effort
MTNs: Medium-Term Notes
N
NFIRS: National Fire Incident Reporting System
282|PAGE
GLOSSARY OF ACRONYMS
NIBRS: National Incident-Based Reporting System
NIMS: National Information Management System
NPDES: National Pollution Discharge Elimination System
O
OPEB: Other Post-Employment Benefits
OSHA: Occupational Safety and Health Administration
OTS: Office of Transportation Safety
P
PACT: Post-Release Accountability & Compliance Team
PBI: Project Budget Indicator
PEG: Public Education and Government
PIP: Parks Improvement Project
PMP: Pavement Management Program
PO’s: Principal-Only
POST: Police Officers Standards Training
PPE: Personal Protective Equipment
PSEC: Public Safety Enterprise Communication
PSR: Project Study Report
PUC: Public Utility Commission
Q
QAF: Quality Assurance Fee
R
RCTC: Riverside County Transportation Commission
RDA: Redevelopment Agency
REAS: Rubberized Emulsion Aggregate Slurry
REMSA: Riverside County EMS Agency
RIPA: Racial Profiling Data Collection
RMRA: Road Maintenance and Rehabilitation Account
RMS: Records Management System
ROPS: Recognized Obligation Payment Schedule
S
S/O: South of
283|PAGE
GLOSSARY OF ACRONYMS
SAS: Statement of Auditing Standards
SB1: Senate Bill 1
SCAG: Southern California Association of Governments
SCAQMD: South Coast Air Quality Management District
SCLP: Short-Lived Climate Pollutants
SCRAP: Student Creative Recycle Art Program
SEMS: Standard Emergency Management System
SFST: Standardized Field Sobriety Test
SHARP: Sewer Hookup Assistance Program
SRRE: Source Reduction Recycling Element
STVR: Short-Term Vacation Rental
T
TAB: Tax Allocation Bond
TDA: Transportation Development Act
TOT: Transient Occupancy Tax
TOWS: Threats, Opportunities, Weaknesses and Strengths
TUT: Transactions and Use Tax
U
UUT: Utility Users’ Tax
V
VHF: Very High Frequency
VLF: Vehicle License Fee
284|PAGE
GLOSSARY OF TERMS
A
ACCRUAL BASIS OF ACCOUNTING: Revenues are recognized when both measurable and earned; expenditures are recorded when services have been substantially performed or goods have been received and the liabilities incurred.
ADOPTED BUDGET: The official budget as approved by the City Council prior to the start of each fiscal year.
AMENDED BUDGET: The official budget as approved by the City Council with amendments approved throughout the budgeted fiscal year.
ANNEXATION: The inclusion, attachment, or addition of territory to a city.
APPROPRIATIONS: A legal authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation is us ually limited in amount and to the time when it may be expended.
ASSESSED VALUATION: A municipality’s property tax base stated in dollars based on real estate and/or other taxable business property for the purposes of taxation, sometimes expressed as a percent of the full market value of the taxable property within a community.
ASSESSMENT DISTRICT: Assessment Districts are created to provide public works improvements to a large area at one time. Municipal bonds are sold for the full cost of the improvements.
AUDIT: An official examination of an organizations or individual’s accounts, performed by an independent entity.
AUTHORITY OR AGENCY: A state or local unit of government created to perform a single activity or a limited group of functions and authorized by the state legislature to issue bonded debt.
B
BALANCED BUDGET: When the budgeted expenditures are equal to or less than the budgeted revenues plus other available sources.
BOND: A security whereby an issuer borrows money from an investor and agrees and promises, by written contract, to pay a fixed principal sum on a specified date (maturity date) and at a specified rate of interest.
BOND DISCOUNT: The amount at which a bond or note is bought, or sold, below its par value excluding accrued interest.
BOND PREMIUM: The amount at which a bond or note is bought or sold above its par value or face value without including accrued interest.
BROKER: A bond trader in the secondary market buying from and selling to bond dealers. Its most common usage is as a description of a bond salesperson.
BUDGET: A plan of financial operation comprised of estimated expenditures for a given period and the proposed means of financing the expenditures (through revenues).
BUDGET MESSAGE: A written discussion of the budget presented by the City Manager, or their designee to the City Council.
285|PAGE
GLOSSARY OF TERMS
C
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION: The state organization responsible for the administration of 30+ different taxes and fees, categori zed as: 1) Prepaid Telephony, 2) Sales and Use Tax, 3) Special Taxes and Fees, or 4) Collection Cost Recovery Fees.
CAPITAL IMPROVEMENT PROJECT (CIP) PLAN: A plan for capital improvements to be implemented each year over multiple years to meet capital needs arising from the assessment of long-term needs. It sets forth the estimated cost for each project and specifies the resources required to finance the projected expenditures.
CAPITAL IMPROVEMENT PROJECT: The budget unit to group activities and costs necessary to implement a specific capital improvement and/or acquisition. A project can include the construction, acquisition, expansion, replacement, or rehabilitation of a physical facility or improvement. Projects often include planning and design, land acquisition, and project management costs related to such facilities and improvements.
CAPITAL OUTLAY: Expenditures for equipment/furniture and fixtures with a cost of more than $5,000 and a useful life exceeding one year.
CAPITAL PROJECTS FUNDS: Used to account for financial resources for the acquisition or construction of major capital facilities other than those financed by proprietary (internal service) and trust funds.
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG): Grants funded by the Federal government’s Department of Housing and Urban Development (HUD) to eliminate blight and provide benefits to low- and moderate-income households.
CONTRACTED SERVICES: Services rendered in support of City operat ions and activities by external parties.
These may be based upon either formal contracts or ad hoc charges.
CUSTODIAL FUND: Used to account for assets held by the City in a fiduciary capacity for individuals, government entities, and others. Such funds are o perated by carrying out the specific ations of trust indentures, statutes, ordinances, or other governing regulations.
CY: Calendar Year
D
DEALER: A corporation or partnership buying, selling, and maintaining an ongoing position in bonds and/or notes.
They are also authorized to underwrite new issues. Some large commercial banks are licensed to act as bond dealers.
DEBT LIMIT: The maximum statutory or constitutional amount of debt the general obligation bond issuer can either issue or have outstanding at any time.
DEBT SERVICE FUNDS: Account for the accumulation of resources set aside to meet current and future debt service requirements (payments) on general long-term debt.
DELINQUENT TAXES: Property taxes that have been levied but remain unpaid on and after the due date. In California, the due dates are November 1 and March 1, and are considered delinquent if not paid by December 10 and April 10, respectively. Special levies and assess ments are often due on these dates as well. When tax delinquencies exceed 5%, the Bond Advisor places the issue on its internal Bond Watch.
DEPARTMENT: A major organizational group of the City with overall management responsibility for an operation or a group of related operations within a functional area.
DEPRECIATION: The expense incurred with the expiration of a capital asset.
DIVISION: An organizational subgroup of a department.
286|PAGE
GLOSSARY OF TERMS
E
ENCUMBRANCE: The commitment of appropriated funds to purc hase goods, which have not been received, or services yet to be rendered.
ENTERPRISE FUNDS: Used to report any activity for which a fee is charged to external users for goods or services.
Traditionally provide significant financial assistance to city’s operations.
EXPENDITURES: Decreases in net financial resources. Expendi tures include current operating expenses which require the current or future use of net current assets, debt service and capital outlays.
EXPENSES: Decreases in net total assets. Expenses represent the total cost of operations during a period regardless of the timing of related payments.
F
FIDUCIARY FUNDS: Used to account for assets held by the City ac ting in a fiduciary capacity for other entities, carrying out specific actions of agreements, ordinance s, and other governing regulations. These funds cannot be used to support City programs.
FISCAL AGENT: Also known as the Paying Agent, the bank, designated by the issuer, to pay interest and principal to the bondholder.
FISCAL YEAR (FY): A 12-month period to which the annual operating budget applies and at the end of which an entity determines its financial position, the results of its operations, and ad opts a budget for the coming year. The City of Cathedral City's fiscal year is from July 1 to June 30.
FIXED ASSETS: Equipment costing $5,000 or more with a useful life more than one year, and not qualifying as a capital improvement project. Includes automotive equipmen t, office equipment, office furniture, acquisitions, landscaping improvements, etc.
FULL-TIME EQUIVALENT (FTE): The conversion of part-time employee hours to an equivalent of a full-time position. For example: one person working 20 hours a week for a year would be 0.5 FTE.
FUND: An independent fiscal and accounting entity with a self -balancing set of accounts, recording resources, related liabilities, obligations, reserves, and equities segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.
FUND BALANCE: The equity (assets minus liabilities) of governmental fund and fiduciary fund types. However, for budgeting purposes, a working capital definition of curre nt assets minus current liabilities is used for the computation.
G
GENERAL FUND: The City’s main operating fund used to pay for City services.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP): Uniform minimum standards of and guidelines for financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. GAAP encompasses the convent ions, rules, and procedu res necessary to defi ne accepted accounting practices at a particular time. They include not only bro ad guidelines of general application, but also detailed practices and procedures. GAAP provides a standard by which to measure financial presentations.
GOVERNMENTAL FUNDS: These funds are used to account for tax-supported (governmental) activities. These include the General Fund, Special Revenue Funds, Capital Projects Funds, and Debt Service Funds.
GRANT: Contributions or gifts of cash or other assets fr om another governmental entity to be expended for a specific purpose, activity, or facility. An example is the Community Development Block Grant awarded by the Federal government.
287|PAGE
GLOSSARY OF TERMS
I
INTERFUND TRANSFERS: Defined as "flows of assets" (such as goods or services) without equivalent flows of assets in return and without requirement for repayment.
INTERGOVERNMENTAL REVENUE: Revenue collected by one government and distributed (usually through some predetermined formula) to another level of government(s).
INTERNAL SERVICE FUNDS: Account for the goods or services prov ided by one fund and/or department to another fund and/or department on a cost reimbursement basis.
ISSUER: A state or local unit of government borrowing money through the sale of bonds and/or notes.
M
MAJOR FUND: Governmental fund or enterprise fund reported as a separate column in the basic fund financial statements and subject to a separate opinion in the independent auditor’s report.
MELLO-ROOS BOND: The Mello-Roos (named for its legislative sponsors) Community Facilities District Act of 1982 established a method whereby almost every municipal subdivision of the state may form a special, separate district to finance a long list of public facilities by the sale of bonds and finance certain public services on a pay-as- you-go basis. These Community Facilities Districts are formed and bonds are issued authorized by a two-thirds vote of the property owners in the district. Typically, the only voters in a district are one or more real estate developers who own or have an option on the land in the district. These land-based financings were nicknamed "dirt bonds" by the Bond Advisor years ago. Bonds are sold to finance facilities that can include school, parks, libraries, public utilities, and other forms of infrastructure . The Districts may provide public services that include police and fire protection, recreation programs, area maintenance, library services, flood, and storm drainage.
Bonded debt service and/or the public services are paid fo r by special taxes levied on the real property within the district. As the developer subdivides and sells off the land, the new property owner assumes the tax burden.
MODIFIED ACCRUAL BASIS: The accrual basis of accounting where revenues are recognized when they become both "measurable" and "available" to finance expenditur es of the current period. All governmental funds and custodial funds are accounted for using the modified accrual basis of accounting.
N
NON-MAJOR FUND: Funds deemed insignificant enough to not wa rrant an individual separate column when reported. These are aggregated and reported in a separate column.
O
OBJECTIVE: A simply stated, readily measurable statement of aim or expected accomplishment within the fiscal year. A good statement of objective should specify a standard of performance for a given program or stated goal.
OPERATING BUDGET: A budget focusing on everyday operating activities and programs. Usually includes personnel, maintenance and operations and capital equipment.
P
PAR VALUE: The face value or principal amount of a bond, usually $5,000, due to the holder at maturity. It has no relation to the market value.
PERSONNEL EXPENSES: Compensation paid to or on behalf of City employees for salaries and wages, overtime, and benefits.
PREMIUM: The amount, if any, by which the price exceeds the pr incipal amount (par value) of a bond. Its current yield will be less than its coupon rate.
PRINCIPAL: The face value of a bond, exclusive of interest. 288|PAGE
GLOSSARY OF TERMS
PROJECT AREA: An area designated in the Redevelopment Plan for redevelopment and revitalization efforts.
PROPERTY TAX: A tax levied on real estate and personal property. The basic rate in Riverside County is 1% of assessed value, of which the City of Cathedral City receives approximately 16 cents for every dollar collected.
PROPOSED BUDGET: The budget as formulated and proposed by the City Manager. It is submitted to the City Council for review and approval.
PROPRIETARY FUND: These funds are used to account for business-type activities. These include the Internal Service Funds and Enterprise Funds.
R
REDEVELOPMENT AGENCY (RDA): A legislatively established subdivisi on of government established to revitalize blighted and economically depressed areas of a community and to promote economic growth. Tax Allocation Bonds were issued to pay the cost of l and and building acquisition and their redevelopment and are repaid by the incremental increase in property tax revenues produced by the increase assessed value of the area after redevelopment. Redevelopment Agencies were able to sell Housing Mortgage Revenue Bonds to finance housing units within the area, 20% of which must be for low-cost housing. As a result of Assembly Bill X1-26, effective February 1, 2012, redevelopment agencies were dissolved by the state of California.
REFUNDING BOND: The issuance of a new bond for the purpose of retiring an already outstanding bond issue.
RETAINED EARNINGS: An equity account reflecting the accumulated earnings of Proprietary Fund types. For budgeting purposes, the working capital definition of fund balance is used.
REVENUE: Moneys the City receives as income such as tax payments, fees from specific services, receipts from other governments, fines, forfeitures, grants, shared revenues, and interest income.
REVENUE BOND: A municipal bond whose debt service is payable solely from the revenues received from operating the facilities acquired or constructed with the proceeds of the bonds.
ROPS: Recognized Obligation Payment Schedule
S
SELF-INSURANCE: The retention of liabilities, arising out of the ownership of property or from some other cause, instead of transferring risk to an i ndependent third party through the purcha se of an insurance policy. The City currently provides self-insurance for $250,000 for workers' compensation and general liability. The City participates in risk sharing pools related to general liability for losses up to $5 million per occurrence, limited to $10 million.
SPECIAL REVENUE FUNDS: Account for the revenue derived from spec ific taxes or other earmarked revenue sources (other than expendable trusts or for major capital projects) restricted by law or administrative action to expenditures for specified purposes.
SUCCESSOR AGENCY: The agency, such as city or county authorizing the creation of each redevelopment agency or another entity as provided for in Health & Safety Code Section 34173.
SUPPLEMENTAL ROLL PROPERTY TAXES:
Assessed on property that changes ownership during the year and is based on the difference between the new and old assessed values.
T
TAX ALLOCATION BONDS: Bonds repaid with tax increments flowi ng to the Successor Agency to the RDA resulting from an increase in property taxes and assessed values over the original (frozen) base.
TAX BASE: The total resources of the community that are legally available for taxation. 289|PAGE
GLOSSARY OF TERMS
TAXES: Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against certain persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those paying such charges, e.g., user charges.
TRUSTEE:
A bank designated as the custodian of funds and of ficial representative of bondholders. They are appointed to ensure compliance with the trust indenture.
U
USER CHARGES: Payments made by users or customers of public ly provided services benefiting specific individuals. These services exhibit "public good" characteri stics. Examples of user charges are fees paid for recreational activities, building fees, police fees, etc.
W
WORKING CAPITAL: Working capital (also known as net working c apital) represents the amount of day-by-day operating liquidity available to a business. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. It is calculated as current assets minus current liabilities.
Note: This is a universal glossary of terms to include terminology for both the City of Cathedral City Adopted Budget as well as the City of Cathedral City Annual Comprehensive Financial Report.
290|PAGE
COUNCIL ACTIONS
GANN Appropriations Limit
Resolutions
291|PAGE
GANN APPROPRIATIONS LIMIT
In 1979, one year after Proposition 13 was adopted, the voters approved Proposition 4, referred to as the Gann Initiative. This proposition is now Article XIIIB of the California Constitution. In June 1990, the original Article XIIIB (Proposition 4) and its implementing Chapter 1205/80 were modified by Proposition III and SB88 (Chapter 60/90).
The Gann Initiative was aimed at government spending and places limitations on appropriations of revenue from the “proceeds of taxes.” These proceeds are defined to include: (1) all tax revenues; (2) revenues from the investment of tax revenues; (3) revenues from user charges and regulatory fees to the extent it exceeds the reasonable cost of providing the service; and (4) local government subventions received from the State.
In order to determine the “Gann Limit,” the City was required to establish a base year 1981/1982 appropriations limitation. Each year this limitation has been adjusted to reflect changes in population and the cost of living.
Beginning with the FY 1990/1991 Appropriations Limit, the annual adjustment factors changed. Instead of using the lesser of California Per Capita Income or U.S. CPI to measure inflation, each city may choose:
The growth in the California Per Capita Income, OR
The growth in the non-residential assessed val uation due to new construction within the city.
In addition, instead of using only the population growth of the city, each city may choose to use the population growth within its county. These are both annual elections.
After determining the dollar limit, the budgeted or anticipated “tax revenues” are calculated and compared to the “Gann Limit.” If the City exceeds its “Gann Limit” in any one year they may avoid a tax refund if they fall sufficiently below the limit in the next fiscal year. They then have two more years to refund any remaining excess by revising tax rates or fee schedules or actually return monies already collected or obtain a successful override vote.
The State Department of Finance and the Riverside County Assessor's Office are charged with providing the data necessary for local jurisdictions to establish their appropri ation limit. According to thes e sources, for purposes of the FY 2023/2024 calculation, the County population increased 0.34% while the City population decreased 0.37%.
As such, the County population increase of 0.34% was used in the calculation. California per capita personal income increased by 4.44%. The City has chosen to use the change in California Per Capita Income as the annual factor.
The tax revenues of the City of Cathedral City are curre ntly at about 48.23% of the “Gann Limit,” which indicates that the City is not overtaxing its citizens.
The FY 2023/2024 Appropriation Limit was calculated as follows:
FY 2022/2023 Appropriation Limit $96,953,579
Increased by an inflation factor composed of the increase in population and increase in CA per capita income
(1.0444 x 1.0034 = 1.048)
X 1.048
FY 2023/2024 Appropriation Limit $101,602,596
The "Proceeds of Taxes", as included in the FY 2023/2024 Adopted Budget, subject to the appropriations limit are estimated to be $49,003,773. Therefore, the City has what is referred to as an appropriation "gap" of $52,598,823 ($101,602,596 - $49,003,773). Simply stated, this means the City could collect and spend up to $52,598,823 more in taxes during FY 2023/2024 without exceeding the Constitutional limit. 292|PAGE
293|PAGE
RESOLUTIONS
RESOLUTION NO. 2023 -
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY, CALIFORNIA, APPROVING A BUDGET FOR THE FISCAL YEARS 2023/2024 AND 2024/2025.
WHEREAS, a municipal budget f or the Fiscal Years 2023/2024 and 2024/2025 has been prepared by the City Manager and Financial Services Director; and WHEREAS, the City Council examined said budget and conferred with the City Manager and the Financial Services Director; and
WHEREAS,
the City Council desires to adopt a final budget for the fiscal years; and
WHEREAS
, the City Council has, after du e deliberation and consideration, made such amendments in the proposed final budget as it considered desirable;
NOW, THE
REFORE, BE IT RES OLVED, by the City Council of the City of Cathedral City as follows:
SECTION 1.
The budget, summary of which is attached hereto and made a part of hereof, is hereby approved and amounts thereby appropriated to the departments, activities, and projects. The revenue estimates contained are hereby accepted.
SECTION 2. The
Financial Services Director shall have the authority to adjust the appropriations within each fund, provided however, the total appropriations for the entire fund do not exceed the amounts
approved in this budget resolution (or amending resolution). Said adjustments of the appropriations for each department or activity shall be made only upon written request to the City Manager and/or the Financial Services Director, the form of which shall be prescribed and approved by the Financial Services Director. Once such a written request is properly executed and approved, the Financial Services Department shall make such funds available.
SECTION 3. Transfers
of fund balances from one fund to another shall be approved by the Financial Services Director.
SECTION 4. At
the close of a fiscal year, outstanding Operating Budget purchase commitments for goods and
services will not be carried forward into the next fiscal year. Budgets for the five-year plans are appropriated
for the duration of the project. Therefore, appropriations for the five-year plans and any unfulfilled purchasing commitments at the end of a fiscal year are automatically carried forward to the next fiscal year.
SECTION 5. Financial Services Director is authorized to advance pay the City’s annual obligation to CalPERS
should the advance pay result in savings to the City and any savings would be allocated to the City’s CalPERS reserve to mitigate future rate increases.
SECTION 6.
The repayment of demands prior to audit may be made by the Financial Services Director in conformity with the authority provided by Section 37208 of the Government Code of the State of California.
294|PAGE
SECTION 7. The Financial Services Director shall render a semi-annual report to the City Council on the status of City operational revenues and expenditures.
PASSED, APPROVED, AND ADOPTED
this 24th day of May 2023.
__________________________
Rita Lamb, Mayor
ATTEST:
____________________________
Tracey Hermosillo, City Clerk
APPROVED AS TO FORM:
____________________________
Eric S. Vail. City Attorney
I, TRACEY HERMOSILLO, CITY CLERK of the City of Cathedral City, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Cathedral City held on the 24
th day of May 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracey Hermosillo, City Clerk
295|PAGE
RESOLUTIONS
RESOLUTION NO. 2023 –
A RESOLUTION BY THE BOARD OF THE CATHEDRAL CITY PUBLIC FINANCING AUTHORITY APPROVING A BUDGET FOR THE FISCAL YEARS 2023/2024 AND 2024/2025.
WHEREAS, a budget for the Fiscal Years 2023/2024 and 2024/2025 has been prepared by the Cathedral City Public Financing Authority’s Manager (City Manager) and Fiscal Officer (Financial Services Dir
ector); and
WHEREAS,
the Board examined said budget and conferred with the Manager and the Fiscal Officer and
WHEREAS, the Board desires to adopt a final budget for the fiscal year; and WHEREAS, the Board has, after due deliberation and consideration, made such amendments in the proposed final budget as it c
onsidered desirable;
NOW, THE
REFORE, BE IT RESOLVED, by the Board of the Cathedral City Public Financing Authority as follows:
SECTION 1. The budget, a summary of which is attached hereto and made a part of hereof, is hereby approved and amounts thereby appropriated to the departments, activities, and projects. The revenue estimates contained are hereby accepted.
SECTION 2.
The Fiscal Officer shall have the authority to adjust the appropriations within each fund, provided however, the total appropriations for the entire fund do not exceed the amounts approved in this budget r
esolution (or amending resolution). Said adjustments of the appropriations for each department or activity sha
ll be made only upon written request to the Manager and/or the Fiscal Officer, the form of which shall be prescribed an
d approved by the Fiscal Officer. Once such a written
request is properly executed and approved, the Financial Services Department shall make such funds available.
SECTION 3. Transfers of fund balances from one fund to another shall be approved by the Fiscal Officer.
SECTION 4.
At the close of a fiscal year, outstanding Operating Budget purchase commitments for goods and services will not be carried forward into the next fiscal year. Budgets for the five-year plans are appropriated
for the duration of the project. Therefore, appropriations for the five-year plans and any unfulfilled purchasing commitments at the end of a fiscal year are automatically carried forward to the next
fiscal year.
SECTION 5. The repayment of demands prior to audit may be made by the Fiscal Officer in conformity with the authority provided by Section 37208 of the Government Code of the State of California.
SECTION 6.
The Fisca
l Officer shall render a semi-annual report to the Board on the status of operational revenues and expenditures.
296|PAGE
PASSED, APPR
OVED, AND ADOPTED this 24th day of May 2023.
___________________________
Rita Lamb, Chairman
ATTEST:
___________________________
Tracey Hermosillo, Secretary
APPROVED AS TO FORM:
____________________________
Eric S. Vail, Authority Attorney
I, TRACEY HERMOSILLO, SECRETARY of the Cathedral City Public Finance Authority, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Cathedral City held on the 24 th day of May 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracey Hermosillo, Secretary
297|PAGE
RESOLUTIONS
RESOLUTION NO. SA-2023-_______
A RESOLUTION BY THE SUCCESSOR AGENCY TO THE CATHEDRAL CITY
REDEVELOPMENT AGENCY APPROVING A BUDGET FOR THE FISCAL YEARS 2023/2024 AND 2024/2025.
WHEREAS, estimates of revenue from all sources and estimates of expenditures required for the proper conduct of the activiti
es of the Successor Agency to the Cathedral City Redevelopment Agency (“Successor Agency”) for the
Fiscal Years 2023/2024 and 2024/2025 has been prepared by the City Manager and Financial Services Director; and
WHEREAS, the Successor Agency has examined said budget and conferred with the City Manager and the Financial Services Director; and
WHEREAS
, the Successor Agency Board desires to adopt a final budget, as approved and presented in the Recognized Obligation Payment Schedule (“ ROPS”) for the fiscal years; and
WHEREAS,
the Successor Agency Board has, after due deliberation and consideration, made such amendments in the proposed final budget as
it considered desirable;
NOW, THE
REFORE, BE IT RESOLVED, by the Successor Agency Board as follows:
SECTION 1. The budget, summary of which is attached hereto and made a part of hereof, is hereby approved and amounts thereby appropriated to the departments, activities, and projects. The revenue estimates contained are hereby accepted.
SECTION 2.
The Financial Services Director shall have the authority to adjust the appropriations within each fund, provided however, the total appropriations for the entire fund do not exceed the amounts approved in this budget resolution (or amending resolution). Said adjustments of the appropriations for each department or activity shall be made only upon written request to the City Manager and/or the Financial Services Director, the form of which shall be prescribed and approved by
the Financial Services Director. Once such a written request is properly e xecuted and approved, the
Financial Services Department shall make such funds available.
SECTION 3
. Transfers of fund balances from one fund to another shall be approved by the Financial Services Director.
SECTION 4.
At the close of a fiscal year, outstanding Operating Budget purchase commitments for goods and services will not be carried forward into the next fiscal year. Budgets for the five-year plans are appropriated
for the duration of the project. Therefore, appropriations for the five-year plans and any unfulfilled purchasing commitments at the end of a fiscal year are automatically carried forward to the next
fiscal year.
SECTION 5. The repayment of demands prior to audit may be made by the Financial Services Director in conformity with the authority provided by Section 37208 of the Government Code of the State of California.
PASSED, APPROVED, AND ADOPTED
this 24th day of May 2023.
298|PAGE
___________________________
Rita Lamb, Chairman
ATTEST:
____________________________
Tracey Hermosillo, Secretary
APPROVED AS TO FORM:
____________________________
Eric S. Vail, City Attorney
I, TRACEY HERMOSILLO, SECRETARY of the Successor Agency to the Cathedral City Redevelopment Agency, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the Board of the Successor Agency to the City of Cathedral City Redevelopment Agency held on the 24
th day of May 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracey Hermosillo, Secretary
299|PAGE
RESOLUTIONS
RESOLUTION NO. HSA-2023-_____
A RESOLUTION BY THE CITY OF CATHEDRAL CITY AS THE HOUSING
SUCCESSOR AGENCY APPROVING A BUDGET FOR THE FISCAL YEARS 2023/2024 AND 2024/2025.
WHEREAS, estimates of revenue from all sources and estimates of expenditures required for the proper conduct of the activities of the City of Cathedral City as the Housing Successor Agency (“Successor Agency”) for the Fiscal Years 2023/2024 and 2024/2025 has been prepared by the City Manager and Financial Services Director; and
WHEREAS, the Successor Agency has examined said budget and conferred with the City Manager and the Financial Services Director; and
WHEREAS, the Successor Agency Board desires to adopt a final budget for the fiscal years; and
WHEREAS, the Successor Agency Board has, after due deliberation and consideration, made such amendments in the proposed final budget as
it considered desirable;
NOW, THE
REFORE, BE IT RESOLVED, by the Successor Agency Board as follows:
SECTION 1. The budget, summary of which is attached hereto and made a part of hereof, is hereby approved and amounts thereby appropriated to the departments, activities, and projects. The revenue estimates contained are hereby accepted.
SECTION 2.
The Financial Services Director shall have the authority to adjust the appropriations within each fund, provided however, the total appropriations for the entire fund do not exceed the amounts approved in this budget resolution (or amending resolution). Said adjustments of the appropriations for each department or activity shall be made only upon written request to the City Manager and/or the Financial Services Director
, the form of which shall be prescribed and approved by the Financial Services Director. Once such a written request is properly e xecuted and approved, the
Financial Services Department shall make such funds available.
SECTION 3
. Transfers of fund balances from one fund to another shall be approved by the Financial Services Director.
SECTION 4.
At the close of a fiscal year, outstanding Operating Budget purchase commitments for goods and services will not be carried forward into the next fiscal year. Budgets for the five-year plans are appropriated
for the duration of the project. Therefore, appropriations for the five-year plans and any unfulfilled purchasing commitments at the end of a fiscal year are automatically carried forward to the next
fiscal year.
SECTION 5. The repayment of demands prior to audit may be made by the Financial Services Director in conformity with the authority provided by Section 37208 of the Government Code of the State of California.
PASSED, APPROVED, AND ADOPTED
this 24th day of May 2023.
300|PAGE
___________________________
R i t a
L a m b , M a y o r
ATTEST:
____________________________
Tracey Hermosillo, Secretary
APPROVED AS TO FORM:
____________________________
Eric S. Vail, Agency Attorney
I, TRACEY HERMOSILLO, SECRETARY of the Housing Successor Agency, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the Board of the Housing Successor Agency held on the 24th day of May 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracey Hermosillo, Secretary
301|PAGE
RESOLUTIONS
RESOLUTION NO. 2023 -
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY,
CALIFORNIA, APPROVING THE CAPITAL IMPROVEMENT PROJECT (CIP) PLAN AND THE PARKS IMPROVEMENT PROJECT (PIP) PLAN FOR FISCAL YEARS 2024 THROUGH 2028.
WHEREAS, the City Council has received the proposed summary of CIP approved projects for Fiscal Years 2022 through 2026; and
WHEREAS, the City Council reviewed said CIP of planned projects and conferred with the City Manager and the Financial Services Director; and
WHEREAS, the City Council desires to adopt the CIP of planned projects for the five-year period; and
NOW, THEREFORE, BE IT RES OLVED, by the City Council of the City of Cathedral City as follows:
SECTION 1. The City Council does hereby adopt the five-year CIP and PIP plans for Fiscal Years 2024 through
2028, a summary of which is attached hereto and made a part of hereof, and amounts are thereby
allocated to the departments, projects, and activities. These amounts are subject to existing priorities and available funds.
SECTION
2. Since budgets for Capital Improvement Projects are appropriated prior to the commencement of the individual project, the attached five-year plans are only intended to be planning documents. The adoption
of the attached plans identifies the amounts planned to be expended during the FY 2023/2024 and FY 2024/2025 budget periods and in each of the subsequent three fiscal years.
SECTION 3. Each project in the attached CIP has previously received independent final approval from the City Council.
SECTION 4.
The funding for each previously approved project is based on the anticipated funding mechanism as of the current date.
SECTION
5. The City Manager or the Financial Services Director shall have the authority to adjust amounts within each fund, provided however, the total amount for the plans does not exceed the amount approved for the plans.
302|PAGE
PASSED, APPR
OVED, AND ADOPTED this 24th day of May 2023.
___________________________
R i t a L a m b , M a y o r
ATTEST:
____________________________
Tracey Hermosillo, City Clerk
APPROVED AS TO FORM:
____________________________
Eric S. Vail, City Attorney
I, TRACEY HERMOSILLO, CITY CLERK of the City of Cathedral City, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Cathedral City held on the 24th day of May 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracey Hermosillo, City Clerk
303|PAGE
68‐700 Avenida Lalo Guerrero
Cathedral City, CA 92234
760.770.0378
www.cathedralcity.gov