C06516 US DOT SAFE STREETS 4 ALL
• 80% – Areawide Capital Projects Fund – 331
• 20% – Measure “A” Fund – 243
C08693 DREAM HOMES CRACK REPAIR
• 100% – Assessment District 2004–01 Fund–353
C0XX01 WHITEWATER AREA STREET REHABILITATION – PHASE II
• 65% – RMRA Fund – 248
• 35% – Community Development Block Grant Fund – 251
o Federal Funds
C0XX02 AVENIDA EL MUNDO AND AVENIDA EL PUEBLO PAVEMENT REHABILITATION
• 62% – RMRA Fund – 248
• 38% – Community Development Block Grant Fund – 251
o Federal Funds
C0XX03 LANDAU BLVD PUBLIC ALLEYWAY RECONSTRUCTION
• 100% – RMRA Fund – 248
C0XX04 SUNNY SANDS NEIGHBORHOOD PAVEMENT REHABILITATION
• 67% – RMRA Fund – 248
• 33% – General Fund – 100
o City MOE
C0XX05 PANORAMA PARK AREA – STREET RECONSTRUCTION
• 62% – RMRA Fund – 248
• 38% – General Fund – 100
o City MOE
C0XX06 LANDAU BOULEVARD: VISTA CHINO TO 30TH AVENUE
• 43% – RMRA Fund – 248
• 57% - Unspecified
C0XX07 FUTURE CDBG NEIGHBORHOOD STREETS FY27/28
• 100% – Community Development Block Grant Fund – 251
o Federal Funds
C0XX08 FUTURE CDBG NEIGHBORHOOD STREETS FY28/29
• 100% – Community Development Block Grant Fund – 251
o Federal Funds
NEW PROJECTS – DESCRIPTIONS AND FUNDING SOURCES
Return to Table of Contents Page | 278
C0XX09 FUTURE CDBG NEIGHBORHOOD STREETS FY29/30
• 100% – Community Development Block Grant Fund – 251
o Federal Funds
C0XX10 OCOTILLO SQUARE NEIGHBORHOOD STREETS
• 93% – Unspecified
• 7% – General Fund – 100
o City MOE
C0XX11 GERALD FORD: DATE PALM TO PLUMLEY STREET REHABILITATION
• 100% – Unspecified
C0XX12 DINAH SHORE: DATE PALM TO PLUMLEY STREET REHABILITATION
• 70% - Unspecified
• 30% – General Fund – 100
o City MOE
C0XX13 CATHEDRAL CANYON: PEREZ RD TO OFELIA BRINGAS BRIDGE STREET
REHABILITATION
• 100% – General Fund – 100
o City MOE
C0XX14 CATHEDRAL CANYON: CANYON SHORES TO DINAH SHORE STREET REHABILITATION
• 100% – Unspecified
C0XX15 CATHEDRAL CANYON: DINAH SHORE TO RAMON STREET REHABILITATION
• 64% – General Fund – 100
o City MOE
• 36% – Unspecified
C0XX16 PANORAMA NEIGHBORHOOD –GRINDING AND REAS
• 100% – Measure “W” Fund – 151
C0XX17 CORTA ROAD AND ALCITA ROAD PAVEMENT REHABILITATION
• 61% – Measure “W” Fund – 151
• 39% – Measure “A” Fund – 243
C0XX18 ASSESSMENT DISTRICT 88–2 REAS
• 100% – Measure “W” Fund – 151
C0XX19 DREAM HOMES AREA REAS
• 100% – Measure “W” Fund – 151
NEW PROJECTS – DESCRIPTIONS AND FUNDING SOURCES
Return to Table of Contents Page | 279
C0XX20 THE COVE NEIGHBORHOOD REAS – SOUTH SIDE
• 78% – Measure “W” Fund – 151
• 22% – Assessment District 2004–02 Fund – 354
C0XX21 PANORAMA NEIGHBORHOOD -STREET REHABILITATION
• 100% – Measure “W” Fund – 151
C0XX22 THE COVE NEIGHBORHOOD REAS – NORTH SIDE
• 78% – Measure “W” Fund – 151
• 22% – Assessment District 2004–02 Fund – 354
C0XX23 SLURRY SEAL MAINTENANCE PROJECT– RIVERSIDE COUNTY
• 100% – General Fund – 100
o City MOE
C0XX24 HSIP 12A - PEDESTRIAN CROSSING ENHANCEMENTS
• 90% – Areawide Capital Projects Fund – 331
o State Grant Funds
• 8% – General Fund – 100
o City MOE
• 2% – Measure “A” Fund – 243
C0XX25 HSIP 12B - PEDESTRIAN CROSSING AT UNCONTROLLED LOCATIONS • 90% – Areawide Capital Projects Fund – 331
o State Grant Funds
• 8% – General Fund – 100
o City MOE
• 2% – Measure “A” Fund – 243
C0XX26 ENTRYWAY MONUMENT - E PALM CANYON DRIVE EAST
• 100% – General Fund – 100
C0XX27 ENTRYWAY MONUMENT - E PALM CANYON DRIVE WEST
• 100% – General Fund – 100
C0XX28 ENTRYWAY MONUMENT - RAMON ROAD WEST
• 100% – General Fund – 100
C0XX29 ENTRYWAY MONUMENT - DATE PALM DRIVE NORTH
• 100% – General Fund – 100
C0XX30 ENTRYWAY MONUMENT - DINAH SHORE DRIVE EAST
• 100% – General Fund – 100
CAPITAL IMPROVEMENT PROGRAM (CIP) PLAN – PROJECT DETAILS Return to Table of Contents Page | 280
FY 2025/2026 FY 2026/2027 FY 2027/2028 F Y 2028/2029 FY 2029/2030 Project Title Project String Account Number
Remaining
Encumbrances
Proposed
Budget
Proposed
Budget
Forecasted
Budget
Forecasted
Budget
Forecasted
Budget
CURRENT PROJECTS
EDOM HILL TRUCK CLIMBING C01016-CIP-DESIGN-- 234-100-150-156-8600-8601- 16,379 20,479 - - - - EDOM HILL TRUCK CLIMBING C01016-CIP-CONSTRUCT-- 234-100-150-156-8800-8802- - - 3,115,325 3, 115,325 - - SEPTIC TO SEWER PLANNING PROJECT C01020-CIP-PROJ MGMT-- 331-100-150-156-8600-8601- - 119,261 63,886 - - - SEPTIC TO SEWER PLANNING PROJECT C01020-CIP-DESIGN-- 331-100-150-156-8600-8601- - 1,348,800 674,400 - - - RAMON ROAD BRIDGE C02500-CIP-DESIGN-TRANSPORT- 272-100-150-156-8600-8601- 299,720 274,571 25,149 - - - RAMON ROAD BRIDGE C02500-CIP-DESIGN-CVAG- 331-100-150-156-8600-8601- 119,057 119,057 119,057 - - - RAMON ROAD BRIDGE C02500-CIP-DESIGN-- 331-100-150-156-8600-8601- 39,686 - - - - - RAMON ROAD BRIDGE C02500-CIP-CONSTRUCT-- 331-100-150-156-8200-8232- 968,236 311,107 249,422 249, 422 - - CANYON SHORES/CATHEDRAL CANYON TRAFFIC SIGNALS C06517-CIP-DESIGN-MEASURE A- 243-100-150-156-8600-8601- 13,698 1,400 - - - - CANYON SHORES/CATHEDRAL CANYON TRAFFIC SIGNALS C06517-CIP-DESIGN-CVAG- 331-100-150-156-8600-8601- 41,092 4,200 - - - - CANYON SHORES/CATHEDRAL CANYON TRAFFIC SIGNALS C06517-CIP-CONSTRUCT-MEASURE A- 243-100-150-156-8800-8802- - 150,000 - - - - CANYON SHORES/CATHEDRAL CANYON TRAFFIC SIGNALS C06517-CIP-CONSTRUCT-CVAG- 331-100-150-156-8800-8802- - 450,000 - - - - DATE PALM NORTH OF I-10 6-LANE C08671-CIP-DESIGN-MEASURE A- 243-100-150-156-8600-8601- 84,156 86,000 - - - - DATE PALM NORTH OF I-10 6-LANE C08671-CIP-DESIGN-CVAG- 331-100-150-156-8600-8601- 252,469 123,469 - - - - DATE PALM NORTH OF I-10 6-LANE C08671-CIP-CONSTRUCT-MEASURE A- 243-100-150-156-8800-8802- - 77,900 - - - - DATE PALM NORTH OF I-10 6-LANE C08671-CIP-CONSTRUCT-GEN FUND- 100-100-150-156-8800-8802- - - 525,825 175, 275 - - DATE PALM NORTH OF I-10 6-LANE C08671-CIP-CONSTRUCT-CVAG- 331-100-150-156-8800-8802- - 233,700 1,752,750 584, 250 - - DATE PALM NORTH OF I-10 6-LANE C08671-CIP-CONSTRUCT-FLOOD CTRL- 331-100-150-156-8800-8802- - - 2,459,000 - - - WHISPERING PALMS TRAIL BIKE LANE C08672-CIP-PROJ MGMT-TDA- 240-100-150-156-8600-8601- - 3,250 - - - - WHISPERING PALMS TRAIL BIKE LANE C08672-CIP-PROJ MGMT-GEN FUND- 100-100-150-156-8600-8601- - 1,750 - - - - WHISPERING PALMS TRAIL BIKE LANE C08672-CIP-DESIGN-TDA- 240-100-150-156-8600-8601- 20,644 4,392 - - - - WHISPERING PALMS TRAIL BIKE LANE C08672-CIP-DESIGN-MEASURE A- 243-100-150-156-8600-8601- 11,116 2,365 - - - - WHISPERING PALMS TRAIL BIKE LANE C08672-CIP-CONSTRUCT-TDA- 240-100-150-156-8800-8802- - 661,050 - - - - WHISPERING PALMS TRAIL BIKE LANE C08672-CIP-CONSTRUCT-MEASURE A- 243-100-150-156-8800-8802- - 75,950 - - - - WHISPERING PALMS TRAIL BIKE LANE C08672-CIP-CONSTRUCT-AD 85-1- 341-100-150-156-8800-8802- - 280,000 - - - - PEREZ ROAD BIKE LANE C08673-CIP-PROJ MGMT-TDA- 240-100-150-156-8800-8802- - 3,750 - - - - PEREZ ROAD BIKE LANE C08673-CIP-PROJ MGMT-MATCH- 100-100-150-156-8600-8601- - 1,250 - - - - PEREZ ROAD BIKE LANE C08673-CIP-DESIGN-TDA- 240-100-150-156-8600-8601- 26,250 5,068 - - - - PEREZ ROAD BIKE LANE C08673-CIP-DESIGN-MATCH- 100-100-150-156-8600-8601- 8,750 1,689 - - - - PEREZ ROAD BIKE LANE C08673-CIP-CONSTRUCT-TDA- 240-100-150-156-8800-8802- - 468,750 - - - - PEREZ ROAD BIKE LANE C08673-CIP-CONSTRUCT-MATCH- 243-100-150-156-8800-8802- - 158,750 - - - - VARNER ROAD - PALM DRIVE TO DATE PALM DRIVE C08674-CIP-DESIGN-CVAG- 331-100-150-156-8600-8601- - 710,678 355,339 - - - VARNER ROAD - PALM DRIVE TO DATE PALM DRIVE C08674-CIP-DESIGN-RDA FUND- 331-100-150-156-8600-8601- - 236,892 118,446 - - - DATE PALM TROPICAL STORM HILARY C08684-CIP-DESIGN-PROJ MGMT- 331-100-150-156-8600-8601- 7,708 10,000 10,000 - - - DATE PALM TROPICAL STORM HILARY C08684-CIP-DESIGN-FEDERAL- 331-100-150-156-8600-8601- - 106,236 106,236 - - - DATE PALM TROPICAL STORM HILARY C08684-CIP-DESIGN-GEN FUND- 100-100-150-156-8600-8601- - 13,764 13,764 - - - DATE PALM TROPICAL STORM HILARY C08684-CIP-CONST ENG-FEDERAL- 331-100-150-156-8800-8802- - - - 309, 855 - - DATE PALM TROPICAL STORM HILARY C08684-CIP-CONST ENG-GEN FUND- 100-100-150-156-8800-8802- - - - 40,145 - - DATE PALM TROPICAL STORM HILARY C08684-CIP-CONSTRUCT-FEDERAL- 331-100-150-156-8800-8802- - - - 2, 213,250 - - DATE PALM TROPICAL STORM HILARY C08684-CIP-CONSTRUCT-GEN FUND- 100-100-150-156-8800-8802- - - - 286, 750 - - VISTA CHINO TROPICAL STORM HILARY C08685-CIP-DESIGN-PROJ MGMT- 331-100-150-156-8600-8601- 6,498 10,000 - - - - VISTA CHINO TROPICAL STORM HILARY C08685-CIP-DESIGN-FEDERAL- 331-100-150-156-8600-8601- - 35,412 - - - - VISTA CHINO TROPICAL STORM HILARY C08685-CIP-DESIGN-GEN FUND- 100-100-150-156-8600-8601- - 4,588 - - - - VISTA CHINO TROPICAL STORM HILARY C08685-CIP-CONST ENG-FEDERAL- 331-100-150-156-8800-8802- - 49,577 - - - - VISTA CHINO TROPICAL STORM HILARY C08685-CIP-CONST ENG-GEN FUND- 100-100-150-156-8800-8802- - 6,423 - - - - VISTA CHINO TROPICAL STORM HILARY C08685-CIP-CONSTRUCT-FEDERAL- 331-100-150-156-8800-8802- - 331,988 - - - - VISTA CHINO TROPICAL STORM HILARY C08685-CIP-CONSTRUCT-GEN FUND- 100-100-150-156-8800-8802- - 43,013 - - - - JEFFERSON/I-10 C08726-CIP--- 331-100-150-156-8800-8802- 179,317 179,317 - - - - Capital Improvement Program (CIP) Plan - Project Detail CAPITAL IMPROVEMENT PROGRAM (CIP) PLAN – PROJECT DETAILS Return to Table of Contents Page | 281
FY 2025/2026 FY 2026/2027 FY 2027/2028 FY 2028/2029 FY 2029/2030 Project Title Project String Account Number
Remaining
Encumbrances
Proposed
Budget
Proposed
Budget
Forecasted
Budget
Forecasted
Budget
Forecasted
Budget
CURRENT PROJECTS
HSIP 9A 12 INTERSECTION IMPROVEMENT C08752-CIP-CONSTRUCT-MEASURE A- 243-100-150-156-8800-8802- 589 209,628 - - - - HSIP 9A 12 INTERSECTION IMPROVEMENT C08752-CIP-CONSTRUCT-FEDERAL- 331-100-150-156-8800-8802- 589 1,050,748 - - - - HSIP 9A 12 INTERSECTION IMPROVEMENT C08752-CIP-CONST ENG-MEASURE A- 243-100-150-156-8800-8802- 43,384 57,902 - - - - HSIP 9A 12 INTERSECTION IMPROVEMENT C08752-CIP-CONST ENG-GRANT- 331-100-150-156-8800-8802- 152,314 149,130 - - - - HSIP 11A PEDESTRIAN CROSSWALK UPGRADES C08754-CIP-DESIGN-TRAF SFTY- 233-100-150-156-8600-8601- 20,053 37,440 - - - - HSIP 11A PEDESTRIAN CROSSWALK UPGRADES C08754-CIP-DESIGN-STATE- 331-100-150-156-8600-8601- 180,478 168,478 - - - - HSIP 11A PEDESTRIAN CROSSWALK UPGRADES C08754-CIP-CONSTRUCT-TRAF SFTY- 233-100-150-156-8800-8802- - 275,000 - - - - HSIP 11A PEDESTRIAN CROSSWALK UPGRADES C08754-CIP-CONSTRUCT-STATE- 331-100-150-156-8800-8802- - 990,000 - - - - HSIP 11A PEDESTRIAN CROSSWALK UPGRADES C08754-CIP-CONST ENG-TRAF SFTY- 233-100-150-156-8800-8802- - 16,000 - - - - HSIP 11A PEDESTRIAN CROSSWALK UPGRADES C08754-CIP-CONST ENG-GRANT- 331-100-150-156-8800-8802- - 144,000 - - - - HSIP 11B SIGNALIZED PEDESTRIAN CROSSINGS C08755-CIP-DESIGN-TRAF SFTY- 233-100-150-156-8600-8601- 20,745 1,548 - - - - HSIP 11B SIGNALIZED PEDESTRIAN CROSSINGS C08755-CIP-DESIGN-STATE- 331-100-150-156-8600-8601- 98,279 4,957 - - - - HSIP 11B SIGNALIZED PEDESTRIAN CROSSINGS C08755-CIP-CONSTRUCT-TRAF SFTY- 233-100-150-156-8800-8802- - 167,260 41,815 - - - HSIP 11B SIGNALIZED PEDESTRIAN CROSSINGS C08755-CIP-CONSTRUCT-STATE- 331-100-150-156-8800-8802- - 602,136 150,534 - - - HSIP 11B SIGNALIZED PEDESTRIAN CROSSINGS C08755-CIP-CONST ENG-TRAF SFTY- 233-100-150-156-8800-8802- - 10,000 2,500 - - - HSIP 11B SIGNALIZED PEDESTRIAN CROSSINGS C08755-CIP-CONST ENG-GRANT- 331-100-150-156-8800-8802- - 90,000 22,500 - - - HSIP 11C TRAFFIC SIGNAL HARDWARE UPGRADES C08756-CIP-DESIGN-TRAF SFTY- 233-100-150-156-8600-8601- 1,225 - - - - - HSIP 11C TRAFFIC SIGNAL HARDWARE UPGRADES C08756-CIP-DESIGN-STATE- 331-100-150-156-8600-8601- 11,024 - - - - - HSIP 11C TRAFFIC SIGNAL HARDWARE UPGRADES C08756-CIP-CONSTRUCT-MEASURE A- 243-100-150-156-8800-8802- - 138,250 - - - - HSIP 11C TRAFFIC SIGNAL HARDWARE UPGRADES C08756-CIP-CONSTRUCT-MOE- 100-100-150-156-8800-8802- - - 71,250 - - - HSIP 11C TRAFFIC SIGNAL HARDWARE UPGRADES C08756-CIP-CONSTRUCT-TRAF SFTY- 233-100-150-156-8800-8802- - 28,000 - - - - HSIP 11C TRAFFIC SIGNAL HARDWARE UPGRADES C08756-CIP-CONSTRUCT-STATE- 331-100-150-156-8800-8802- - 598,500 256,500 - - - HSIP 11C TRAFFIC SIGNAL HARDWARE UPGRADES C08756-CIP-CONST ENG-TRAF SFTY- 233-100-150-156-8800-8802- - 9,450 4,050 - - - HSIP 11C TRAFFIC SIGNAL HARDWARE UPGRADES C08756-CIP-CONST ENG-GRANT- 331-100-150-156-8800-8802- - 85,050 36,450 - - - HSIP 11D PEDESTRIAN CROSSING 30TH & SAN ELJAY C08757-CIP-DESIGN-TRAF SFTY- 233-100-150-156-8600-8601- 10,088 950 - - - - HSIP 11D PEDESTRIAN CROSSING 30TH & SAN ELJAY C08757-CIP-DESIGN-STATE- 331-100-150-156-8600-8601- 48,047 4,275 - - - - HSIP 11D PEDESTRIAN CROSSING 30TH & SAN ELJAY C08757-CIP-CONSTRUCT-TRAF SFTY- 233-100-150-156-8800-8802- - 50,025 - - - - HSIP 11D PEDESTRIAN CROSSING 30TH & SAN ELJAY C08757-CIP-CONSTRUCT-STATE- 331-100-150-156-8800-8802- - 180,090 - - - - HSIP 11D PEDESTRIAN CROSSING 30TH & SAN ELJAY C08757-CIP-CONST ENG-TRAF SFTY- 233-100-150-156-8800-8802- - 3,000 - - - - HSIP 11D PEDESTRIAN CROSSING 30TH & SAN ELJAY C08757-CIP-CONST ENG-GRANT- 331-100-150-156-8800-8802- - 27,000 - - - - EAST PALM CANYON MASTER UNDERGROUND PLAN & WIDENING C08874-CIP-DESIGN-GEN FUND- 100-100-150-156-8600-8601- 76,800 - - - - - EAST PALM CANYON MASTER UNDERGROUND PLAN & WIDENING C08874-CIP-CONSTRUCT-GEN FUND- 100-100-150-156-8800-8802- - 900,000 - - - - EAST PALM CANYON MASTER UNDERGROUND PLAN & WIDENING C08874-CIP-CONSTRUCT-- 232-100-150-156-8800-8802- - 1,500,000 - - - - EAST PALM CANYON MASTER UNDERGROUND PLAN & WIDENING C08874-CIP-CONSTRUCT-RMRA- 248-100-150-156-8800-8802- - 912,000 - - - - VISTA CHINO BRIDGE C08899-CIP-DESIGN-MATCH- 331-100-150-156-8600-8601- - 25,870 25,870 - - - VISTA CHINO BRIDGE C08899-CIP-CONSTRUCT-- 331-100-150-156-8800-8802- 167,310 167,310 167,310 - - - TOTAL CURRENT PROJECTS 2,925,697$ 15,329,842$ 10,367,376$ 6,974,272$ -$ -$ Capital Improvement Program (CIP) Plan - Project Detail CAPITAL IMPROVEMENT PROGRAM (CIP) PLAN – PROJECT DETAILS Return to Table of Contents Page | 282
FY 2025/2026 FY 2026/2027 FY 2027/2028 FY 2028/2029 FY 2029/2030 Project Title Project String Account Number
Remaining
Encumbrances
Proposed
Budget
Proposed
Budget
Forecasted
Budget
Forecasted
Budget
Forecasted
Budget
NEW PROJECTS
US DOT SAFE STREETS 4 ALL C06516-CIP-DESIGN-FEDERAL- 331-100-150-156-8600-8601- - 400,000 - - - - US DOT SAFE STREETS 4 ALL C06516-CIP-DESIGN-MEASURE A- 243-100-150-156-8600-8601- - 100,000 - - - - DREAM HOMES CRACK REPAIR C08693-CIP-AD 04-01-- 353-100-150-156-8800-8802- - 300,000 - - - - WHITEWATER AREA STREET REHABILITATION - PHASE II C0XXX1-CIP-CONSTRUCT-RMRA- 248-100-150-156-8800-8802- - 850,000 - - - - WHITEWATER AREA STREET REHABILITATION - PHASE II C0XXX1-CIP-CONSTRUCT-CDBG- 251-100-150-156-8800-8802- - 460,000 - - - - AVENIDA EL MUNDO AND AVENIDA EL PUEBLO PAVEMENT REHABILITATION C0XXX2-CIP-CONSTRUCT-RMRA- 248-100-150-156-8800-8802- - - 740,000 - - - AVENIDA EL MUNDO AND AVENIDA EL PUEBLO PAVEMENT REHABILITATION C0XXX2-CIP-CONSTRUCT-CDBG- 251-100-150-156-8800-8802- - - 460,000 - - - LANDAU BLVD PUBLIC ALLEYWAY RECONSTRUCTION C0XXX3 -CIP-DESIGN-RMRA- 248-100-150-156-8600-8601- - 160,000 - - - - LANDAU BLVD PUBLIC ALLEYWAY RECONSTRUCTION C0XXX3 -CIP-CONSTRUCT-RMRA- 248-100-150-156-8800-8802- - - 1,010,000 - - - SUNNY SANDS NEIGHBORHOOD PAVEMENT REHABILITATION C0XXX4 -CIP-CONSTRUCT-RMRA- 248-100-150-156-8800-8802- - - - 900,000 - - SUNNY SANDS NEIGHBORHOOD PAVEMENT REHABILITATION C0XXX4-CIP-CONSTRUCT-GEN FUND- 100-100-150-156-8800-8802- - - - 440,000 - - PANORAMA PARK AREA - STREET RECONSTRUCTION C0XXX5 -CIP-CONSTRUCT-RMRA- 248-100-150-156-8800-8802- - - - - 900,000 - PANORAMA PARK AREA - STREET RECONSTRUCTION C0XXX5-CIP-CONSTRUCT-GEN FUND- 100-100-150-156-8800-8802- - - - - 555,000 - LANDAU BOULEVARD: VISTA CHINO TO 30TH AVENUE C0XXX6 -CIP-CONSTRUCT-RMRA- 248-100-150-156-8800-8802- - - - - - 900,000 LANDAU BOULEVARD: VISTA CHINO TO 30TH AVENUE C0XXX6-CIP-CONSTRUCT- FORECASTED - - - - - 1,200,000 FUTURE CDBG NEIGHBORHOOD STREETS FY27/28 C0XXX7-CIP-CONSTRUCT-CDBG- 251-100-150-156-8800-8802- - - - 460,000 - - FUTURE CDBG NEIGHBORHOOD STREETS FY28/29 C0XXX8-CIP-CONSTRUCT-CDBG- 251-100-150-156-8800-8802- - - - - 460,000 - FUTURE CDBG NEIGHBORHOOD STREETS FY29/30 C0XXX9-CIP-CONSTRUCT-CDBG- 251-100-150-156-8800-8802- - - - - - 460,000 OCOTILLO SQUARE NEIGHBORHOOD STREETS C0XX10 -CIP-DESIGN-GEN FUND- 100-100-150-156-8600-8601- - 480,000 120,000 - - - OCOTILLO SQUARE NEIGHBORHOOD STREETS C0XX10 -CIP-CONSTRUCT- FORECASTED - - - 2,766,667 2,766,667 2,766,667 GERALD FORD: DATE PALM TO PLUMLEY STREET REHABILITATION C0XX11-CIP-CONSTRUCT- FORECASTED - - - 1,400,000 - - DINAH SHORE: DATE PALM TO PLUMLEY STREET REHABILITATION C0XX12-CIP-CONSTRUCT-GEN FUND- 100-100-150-156-8800-8802- - - - - 425,000 - DINAH SHORE: DATE PALM TO PLUMLEY STREET REHABILITATION C0XX12-CIP-CONSTRUCT- FORECASTED - - - - 1,000,000 - CATHEDRAL CANYON: PEREZ RD TO OFELIA BRINGAS BRIDGE STREET REHABILITATION C0XX13-CIP-CONSTRUCT-GEN FUND- 100-100-150-156-8800-8802- - - 540,000 - - - CATHEDRAL CANYON: CANYON SHORES TO DINAH SHORE STREET REHABILITATION C0XX14-CIP-CONSTRUCT- FORECASTED - - - - 1,200,000 - CATHEDRAL CANYON: DINAH SHORE TO RAMON STREET REHABILITATION C0XX15-CIP-CONSTRUCT- FORECASTED - - - - - 500,000 CATHEDRAL CANYON: DINAH SHORE TO RAMON STREET REHABILITATION C0XX15-CIP-CONSTRUCT-GEN FUND- 100-100-150-156-8800-8802- - - - - - 900,000 PANORAMA NEIGHBORHOOD -GRINDING AND REAS C0XX16-CIP-CONSTRUCT-MEASURE W- 151-100-150-156-8800-8802- - 490,000 - - - - CORTA ROAD AND ALCITA ROAD PAVEMENT REHABILITATION C0XX17-CIP-CONSTRUCT-MEASURE W- 151-100-150-156-8800-8802- - 510,000 - - - - CORTA ROAD AND ALCITA ROAD PAVEMENT REHABILITATION C0XX17-CIP-CONSTRUCT-MEASURE A- 243-100-150-156-8800-8802- - 325,000 - - - - ASSESSMENT DISTRICT 88-2 REAS C0XX18-CIP-CONSTRUCT-MEASURE W- 151-100-150-156-8800-8802- - - 162,000 - - - DREAM HOMES AREA REAS C0XX19-CIP-CONSTRUCT-MEASURE W- 151-100-150-156-8800-8802- - - 850,000 - - - THE COVE NEIGHBORHOOD REAS - SOUTH SIDE C0XX20-CIP-CONSTRUCT-AD 04-02- 354-100-150-156-8800-8802- - - - 280,000 - - THE COVE NEIGHBORHOOD REAS - SOUTH SIDE C0XX20-CIP-CONSTRUCT-MEASURE W- 151-100-150-156-8800-8802- - - - 1,000,000 - - PANORAMA NEIGHBORHOOD -STREET REHABILITATION C0XX21-CIP-CONSTRUCT-MEASURE W- 151-100-150-156-8800-8802- - - - - 1,000,000 - THE COVE NEIGHBORHOOD REAS - NORTH SIDE C0XX22-CIP-CONSTRUCT-MEASURE W- 151-100-150-156-8800-8802- - - - - - 1,000,000 THE COVE NEIGHBORHOOD REAS - NORTH SIDE C0XX22-CIP-CONSTRUCT-MEASURE A- 354-100-150-156-8800-8802- - - - - - 280,000 SLURRY SEAL MAINTENANCE PROJECT- RIVERSIDE COUNTY C0XX23-CIP-CONSTRUCT-GEN FUND- 100-100-150-156-8800-8802- - 37,000 - - - - HSIP 12A - PEDESTRIAN CROSSING ENHANCEMENTS C0XX24-CIP-DESIGN-MEASURE A- 243-100-150-156-8600-8601- - 6,050 - - - - HSIP 12A - PEDESTRIAN CROSSING ENHANCEMENTS C0XX24-CIP-DESIGN-STATE- 331-100-150-156-8600-8601- - 49,920 - - - - HSIP 12A - PEDESTRIAN CROSSING ENHANCEMENTS C0XX24-CIP-CONSTRUCT-GEN FUND- 100-100-150-156-8800-8802- - - 28,800 - - - HSIP 12A - PEDESTRIAN CROSSING ENHANCEMENTS C0XX24-CIP-CONSTRUCT-STATE- 331-100-150-156-8800-8802- - - 259,200 - - - HSIP 12A - PEDESTRIAN CROSSING ENHANCEMENTS C0XX24-CIP-CONST ENG-GEN FUND- 100-100-150-156-8800-8802- - - 4,030 - - - HSIP 12A - PEDESTRIAN CROSSING ENHANCEMENTS C0XX24-CIP-CONST ENG-STATE- 331-100-150-156-8800-8802- - - 36,270 - - - Capital Improvement Program (CIP) Plan - Project Detail CAPITAL IMPROVEMENT PROGRAM (CIP) PLAN – PROJECT DETAILS Return to Table of Contents Page | 283
FY 2025/2026 FY 2026/2027 FY 2027/2028 FY 2028/2029 FY 2029/2030 Project Title Project String Account Number
Remaining
Encumbrances
Proposed
Budget
Proposed
Budget
Forecasted
Budget
Forecasted
Budget
Forecasted
Budget
NEW PROJECTS
HSIP 12B - PEDESTRIAN CROSSING AT UNCONTROLLED LOCATIONS C0XX25-CIP-DESIGN-MEASURE A- 243-100-150-156-8600-8601- - 5,400 - - - - HSIP 12B - PEDESTRIAN CROSSING AT UNCONTROLLED LOCATIONS C0XX25-CIP-DESIGN-STATE- 331-100-150-156-8600-8601- - 48,600 - - - - HSIP 12B - PEDESTRIAN CROSSING AT UNCONTROLLED LOCATIONS C0XX25-CIP-CONSTRUCT-GEN FUND- 100-100-150-156-8800-8802- - - 21,600 - - - HSIP 12B - PEDESTRIAN CROSSING AT UNCONTROLLED LOCATIONS C0XX25-CIP-CONSTRUCT-STATE- 331-100-150-156-8800-8802- - - 194,400 - - - HSIP 12B - PEDESTRIAN CROSSING AT UNCONTROLLED LOCATIONS C0XX25-CIP-CONST ENG-GEN FUND- 100-100-150-156-8800-8802- - - 3,240 - - - HSIP 12B - PEDESTRIAN CROSSING AT UNCONTROLLED LOCATIONS C0XX25-CIP-CONST ENG-STATE- 331-100-150-156-8800-8802- - - 21,600 - - - ENTRYWAY MONUMENT - E PALM CANYON DRIVE EAST C0XX26-CIP-CONST-GEN FUND- 100-100-150-156-8800-8802- - 125,000 - - - - ENTRYWAY MONUMENT - E PALM CANYON DRIVE WEST C0XX27-CIP-CONST-GEN FUND- 100-100-150-156-8800-8802- - - 125,000 - - - ENTRYWAY MONUMENT - RAMON ROAD WEST C0XX28-CIP-CONST-GEN FUND- 100-100-150-156-8800-8802- - - - 125,000 - - ENTRYWAY MONUMENT - DATE PALM DRIVE NORTH C0XX29-CIP-CONST-GEN FUND- 100-100-150-156-8800-8802- - - - - 125,000 - ENTRYWAY MONUMENT - DINAH SHORE DRIVE EAST C0XX30-CIP-CONST-GEN FUND- 100-100-150-156-8800-8802- - - - - - 125,000 TOTAL NEW PROJECTS -$ 4,346,970$ 4,576,140$ 7,371,667$ 8,431,667$ 8,131,667$
UNSPECIFIED PROJECTS
DAVALL/I-10 INTERCHANGE C01010-CIP-DESIGN-GEN FUND- 100-100-150-156-8600-8601- - - - - - - DAVALL/I-10 INTERCHANGE C01010-CIP--- 331-100-150-156-8600-8601- 35,848 - - - - - DAVALL/I-10 INTERCHANGE C01010-CIP-PSR-- 331-100-150-156-8600-8601- 12,802 - - - - - DAVALL/I-10 INTERCHANGE (FURTHER DESIGN) C01010-CIP-DESIGN- FORECASTED - - - - - - DAVALL/I-10 INTERCHANGE (CONSTRUCTION) C01010-CIP-CONSTRUCT- FORECASTED - - - - - - DOWNTOWN DOG PARK C07016-CIP-CONSTRUCT-GRANT- FORECASTED - - 3,349,500 1,435,500 - - DOWNTOWN DOG PARK C07016-CIP-CONSTRUCT- FORECASTED - - - - - - COVE PARK ON C STREET C0XX31-CIP-CONSTRUCT-PARK FAC- 271-500-510-513-8800-8802- - 250,000 - - - - COVE PARK ON C STREET C0XX31-CIP-DESIGN-PARK FAC- 271-500-510-513-8600-8601- - 250,000 - - - - COMMUNITY CENTER (TARGET $50M) C0XX32-CIP-DESIGN 151-500-510-513-8800-8802- - 201,414 201,414 - - - COMMUNITY CENTER (TARGET $50M) C0XX32-CIP-CONSTRUCT 151-500-510-513-8800-8802- - - - - - 5,000,000 COMMUNITY CENTER (TARGET $50M) C0XX32-CIP-CONSTRUCT-GOV FAC- 273-400-480-481-8800-8802- - - - - - 1,500,000 COMMUNITY CENTER (TARGET $50M) C0XX32-CIP-BOND DEBT 151-500-510-513-8800-8802- - - - - 5,000,000 1,000,000 TROPICAL STORM HILARY DATE PALM DR - VISTA CHINO TO 30TH AVE PAVEMENT RECONSTUCTION C0XX33-CIP-DESIGN-FHWA- 331-100-150-156-8600-8601- - 116,236 116,236 - - - TROPICAL STORM HILARY DATE PALM DR - VISTA CHINO TO 30TH AVE PAVEMENT RECONSTUCTION C0XX33-CIP-DESIGN-GEN FUND- 100-100-150-156-8600-8601- - 43,500 43,500 - - - TROPICAL STORM HILARY DATE PALM DR - VISTA CHINO TO 30TH AVE PAVEMENT RECONSTUCTION C0XX33-CIP-CONST ENG-FHWA- 331-100-150-156-8800-8802- - - - 2,523,105 - - TROPICAL STORM HILARY DATE PALM DR - VISTA CHINO TO 30TH AVE PAVEMENT RECONSTUCTION C0XX33-CIP-CONSTRUCT- 100-100-150-156-8800-8802- - - - 376,895 - - TROPICAL STORM HILARY DATE PALM DR - LOS GATOS RD TO 30TH PAVEMENT RECONSTUCTION C0XX34-CIP-CONSTRUCT- FORECASTED - - - 4,600,000 - - VARNER ROAD - PALM DRIVE TO DATE PALM DRIVE C0XX35-CIP-CONSTRUCT- UNFUNDED- FORECASTED - - - - - 37,940,000 MORONGO WASH WATER CROSSING C0XX35-CIP-CONSTRUCT-FLOOD CTRL- FORECASTED - - - - - 6,300,000 EDOM HILL WATER CROSSING C0XX35-CIP-CONSTRUCT-FLOOD CTRL- FORECASTED - - - - - 775,000 WILLOW HOLE WATER CROSSING C0XX35-CIP-CONSTRUCT-FLOOD CTRL- FORECASTED - - - - - 1,100,000 TOTAL UNSPECIFIED PROJECTS 48,650$ 861,150$ 3,710,650$ 8,935,500$ 5,000,000$ 53,615,000$ Capital Improvement Program (CIP) Plan - Project Detail CAPITAL IMPROVEMENT PROGRAM (CIP) PLAN – SUMMARY BY FUND Return to Table of Contents Page | 284
CAPITAL IMPROVEMENT PROGRAM (CIP) PLAN – MAP
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PARKS IMPROVEMENT PROGRAM PLAN
• Parks Improvement Program Plan – Descriptions
• Parks Improvement Program Plan – Project Detail
PARKS IMPROVEMENT PROGRAM PLAN - DESCRIPTIONS
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The City’s Parks Improvement Program Plan is submitted to the City Council for review. As a result of the City Council Goal Planning Session, these projects have been prioritized.
City Council Goal B: Community Investment
Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
Support Parks and Community Events Commission priorities for improvements to our Parks facilities.
B-3 Develop and implement a wilderness trail plan.
B-4 Complete design and seek funding to construct the downtown dog park and pickleball courts.
B-6 Improve pedestrian access to parks through the use of crosswalks and sidewalk improvements.
The following park improvement projects are categorized into three sections:
• ADA projects,
• Park Upgrade projects to include splash pads and sports fields within the City of Cathedral City, • Plans
The Parks Improvement Program Plan detail for approved projects are included on the pages following the Project Descriptions.
PARKS IMPROVEMENT PROGRAM PLAN - DESCRIPTIONS
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CENTURY PARK
• Repair and renew walking path, add crosswalk and ADA ramps in Century Park. Upgrade the baseball field, install new water splash pad, and install lighting for walking path, basketball court, and parking lot.
DENNIS KEAT SOCCER PARK
• Install crosswalk, ADA ramps and parking lot at the Dennis Keat Soccer Park. Renovate and repair pedestrian lighting for fitness walking path
OCOTILLO PARK
• Install crosswalks and ADA ramps in Ocotillo Park. Upgrade mechanics of splash pad to recycle the water.
PANORAMA PARK
• Install crosswalk and ADA ramps in Panorama Park. Install lighting for basketball court and baseball field, and upgrade splash pad area.
PARKS IMPROVEMENT PROGRAM PLAN – PROJECT DETAILS
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ADA PROJECTS
CENTURY PARK
612-500-510-511-8800-8802- - 200,000 - - -
DENNIS KEAT SOCCER PARK
612-500-510-511-8800-8802- 100,000 - - - - 612-500-510-511-8800-8802- 100,000 - - - -
VARIOUS
612-500-510-511-8800-8802- - 40,000 - - - 612-500-510-511-8800-8802- 40,000 - - - - 612-500-510-511-8800-8802- 40,000 - - - - 612-500-510-511-8800-8802- - 40,000 - - -
PARK UPGRADE PROJECTS
CENTURY PARK
100-500-510-511-8800-8802- - 400,000 - - - 246-900-910-911-8800-8802- - 100,000 - - - FORECASTED - - 150,000 - - 100-500-510-511-8300-8302- - - 100,000 - -
DOWNTOWN DOG PARK
100-500-510-511-8800-8802- - - 271-500-510-511-8880-8802- 400,000 400,000 450,000 - - GRANT FUNDING 1,250,000 1,250,000 1,250,000 - -
DENNIS KEAT SOCCER PARK
271-500-510-511-8800-8802- - - 300,000 - -
OCOTILLO PARK
246-900-910-911-8800-8802- - - - 100,000 - FORECASTED - - - 200,000 -
PANORAMA PARK
100-500-510-511-8300-8302- - - 110,000 - - FORECASTED - - - - 300,000 FORECASTED - - - - 300,000
VARIOUS
271-500-510-511-8600-8601- - 100,000 - - - 271-500-510-511-8600-8601- 150,000 - - - - TOTALS $ 2,080,000 $ 2,530,000 $ 2,360,000 $ 300,000 $ 600,000
WILDERNESS TRAIL PLAN
PARKS CITY WIDE MASTER PLAN
OCOTILLO PARK-ADD CROSSWALKS AND ADA RAMPS
DOWNTOWN DOG PARK PARTICIPATION FUNDING (STATE GRANT)
DENNIS KEAT SOCCER PARK-ADD CROSSWALKS AND ADA RAMPS
DOWNTOWN DOG PARK
DOWNTOWN DOG PARK
PEDESTRIAN LIGHTING FOR FITNESS WALKING PATH (30TH, SANTORO AND TORTUGA)
UPGRADE WATER/SPLASH PLAY AREA
LOW LEVEL LIGHTING FOR BASEBALL FIELD
LIGHTING FOR BASKETBALL COURT
RECYCLE WATER SYSTEM FOR WATER/SPLASH AREA
FY 2029/2030
Forecasted
Funding
FY 2025/2026
Proposed
Budget
FY 2026/2027
Proposed
Budget
FY 2027/2028
Forecas ted
Funding
FY 2028/2029
Forecasted
Funding
ADA CONCRETE PATH OF TRAVEL IMPROVEMENTS
ADA ASPHALT (PARKING LOT) PATH OF TRAVEL IMPROVEMENTS
ADA CONCRETE PATH OF TRAVEL IMPROVEMENTS
PARKS IMPROVEMENT PROGRAM PLAN
RECYCLE WATER SYSTEM FOR WATER/SPLASH AREA
PANORAMA PARK-ADD CROSSWALKS AND ADA RAMPS
CENTURY PARK-ADD CROSSWALKS AND ADA RAMPS
NEW WATER/SPLASH PLAY AREA
LIGHTING FOR WALKING PATH AND BASKETBALL COURT
NEW WATER/SPLASH PLAY AREA
LIGHTING FOR PARKING LOT AREA
PARKS IMPROVEMENT PROGRAM PLAN – SUMMARY BY FUND
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FUND FY 2025/2026 FY 2026/2027 FY 2027/2028 F Y 2028/2029 FY 2029/2030 FUND TOTAL 100 - 400,000 210,000 - - 610,000 246 - 100,000 - 100,000 - 200,000 271 550,000 500,000 750,000 - - 1,800,000 612 280,000 280,000 - - - 560,000 GRANT FUNDING 1,250,000 1,250,000 1,250,000 - - 3,750,000 FORECASTED - - 150,000 200,000 600,000 950,000 TOTAL 2,080,000$ 2,530,000$ 2,360,000$ 300,000$ 600,000$ 7,870,000$ Parks Improvement Program Plan - Summary By Fund
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SUPPLEMENTAL INFORMATION
• Community History and Profile
• Financial Policies
• Debt Administration
• Legal Debt Margin
COMMUNITY HISTORY AND PROFILE
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HISTORY
The Cahuilla Indians, the original inhabitants of Cathedral City and the surrounding area, have lived throughout the Coachella Valley for over two thousand years. Members of the Shoshone tribe, the Cahuilla Indians were industrious farmers, hunting local wildlife like deer and sheep when necessary to fulfill tribal needs. In 1876, the Agua Caliente Band, descendants of the Cahuilla tribe, established a 52,000- acre reservation, which encompasses 28% of the Cathedral City area.
The first Spaniards were thought to appear in the area in 1772, with the first settlers planting roots in approximately 1821. In 1850, Colonel Henry Washington of the U.S. Army Corps of Engineers discovered the area’s canyons resembled the interior of a gr and cathedral and he named this canyon of majestic architecture Cathedral Canyon.
In 1925, developers had the same impression, naming the area’s first subdivision Cathedral City.
PROFILE
The City of Cathedral City, incorporated in 1981, is a business and resort community located in the heart of the Coachella Valley in eastern Riverside County, located approximately 110 miles east of Los Angeles and 125 miles northeast of San Diego. Bordered by Palm Springs to the west and Rancho Mirage to the east, it is the second largest city in the Valley, with a permanent population of more than 51,000. With the annexation of land north of the city completed in 2014, the City currently occupies a land area of approximately 23 square miles. At an elevation of 325 feet above sea level, Cathedral City boasts an ideal climate of 350 sunny days a year, clean air, scenic beauty and unlimited leisure activities, housing options and business opportunities. In February 2011, US News & World Report named the City of Cathedral City as one of the “10 Bargain Retirement Spots in America”.
From the original inhabitants, the Agua Caliente Band of Cahuilla Indians, Cathedral City has become a home of diversity in ethnicity, income, and lifestyle. White- collar and blue-collar workers, professionals and retirees, all are part of a population wor king and living together in a community striving for an enjoyable, prosperous, and healthy lifestyle.
The City transitioned from a general law city to a charter city operating under the council -manager form of government. With the November 2018 elections, the governing body consists of five Council members with a rotating mayor each year. In addition, the 2018 elections brought districting to the City with five sections (wards) comprised of equivalent residential populations. The City Council is elected on a nonpartisan basis with Council members serving four-year staggered terms – three Council members elected in one two-year cycle, e.g., 2026, for Districts 3, 4 and 5. Alternately, two Council members elected in the next two- year cycle, e.g., 2028, for Districts 1 and 2. Among other things, the City Council is responsible for passing ordinances, adopting the budget, appointing committees, and hiring both the City Manager and City Attorney. The City Manager is responsible for carrying out the policies, resolutions, and ordinances of the City Council, overseeing the day -to-day operations of the City, and appointing the various department heads.
COMMUNITY HISTORY AND PROFILE
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The city’s centerpiece, the 70- acre Downtown Core and
adjacent Pickfair Promenade, has become a dining and
entertainment destination for Cathedral City and neighboring Coachella Valley residents and visitors. This area expanded in recent year s with the addition of the Cathedral City Community Amphitheater and the Agua Caliente Casino. In addition, there is a 14-plex movie theatre at the east end of Avenida Lalo Guerrero and the Coachella Valley Repertory (CVRep) 208- seat playhouse (live theatre) at the west end. In addition to the theaters and restaurants, the new Cathedral City Community Amphitheater is host to various events throughout the season, such as Yoga at the Amphitheater, showcasing our local talent during Tastes & Sounds of Cathedral City and even hosting big names such as LeAnn Rimes. The City has five signature events: Tastes and Sounds of Cathedral City, Cathedral City Hot Air Balloon Festival, SnowFest, Taste of Jalisco, and Lesbian, Gay, Bisexual and Transgender (LGBT +) Days which can also be hosted on the Festival Lawn and Town Square directly in front of City Hall.
For those whose tastes are on the artistic side, Cathedral City is Where Art Lives. The city has a growing collection of public art on display in various parks and medians throughout the city. Our flourishing art collection is made possible through private donations and monies collected through commercial development fees. These funds are placed into the public arts fund and cannot be used for any other purpose. As a result, no City General Fund dollars are used for public arts.
Much of the art can be viewed if one strolls around the Civic Center complex and Town Square. Various
photographs and paintings are on display in the Civic
Center offices. More than 20 sculptures are placed
throughout the City and Town Square, including the
centerpiece – Fountain of Life, a uniquely designed,
award-winning stone sculpture in the Downtown’s Town Square. Bronze statues of film star George Montgomery and musicians Buddy Rogers and Lalo Guerrero are also located in our Town Square. There are ni ne (9) different steel surfaced sculptures by Simi Dabah located throughout the City. These sculptures have been left in natural unfinished state and allowed to rust to a warm patina.
The city boasts numerous attractions for visitors and residents alike. Our wide selection includes bowling at Palm Springs Lanes, playing baseball/softball at replica Major League Baseball parks located in Big League Dreams, and enjoying scenic views from one of our picturesque parks. You can also play a round of golf at one of the city’s three public golf courses or play a round of miniature golf and ride go karts at Boomers Family Fun Park. There is something for everyone in Cathedral City!
COMMUNITY HISTORY AND PROFILE
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CITY INFORMATION
Date Incorporated: November 16, 1981
Form of Government: Council – Manager
Population (calendar year): 2022 – 51,433
2023 – 50,911
2024 – 51,968
Unemployment Rate (September 2024): 6.6%
Per Capita Personal Income (2024 calendar year): $33,408 Principal Employers (2024): Angel View
Target
Net Taxable Assessed Property Value (2024): 2022 - $5,348,739,839 2023 – $5,907,291,033
2024 –$6,328,759,309
Principal Property Taxpayers (2024): Welk Park North
(based on taxable assessed value) Bobs LLC
MHC Date Palm LLC
RDS Development
Police Stations (2024): 1
Fire Stations (2024): 3
Parks (2024): 11
Libraries (2024): 1
Miles of City Streets (2024): 161
FINANCIAL POLICIES
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INVESTMENT POLICY
It is the policy of the City of Cathedral City to invest public funds in a manner which will provide the maximum security with best investment return, while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds.
In order of priority, the primary objectives of the City’s investment activities shall be:
1. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner seeking to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk (the risk of loss due to failure of the financial institution, broker/dealer default, or erosion of market value) and interest rate risk (the risk the market value of securities in the portfolio will fall due to changes in general interest rates). To attain this objective, the City will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions.
2. Liquidity is the second most important objective of the investment program. The investment portfolio shall remain sufficiently liquid to enable the City to meet all operating and capital requirements that may be reasonably anticipated. Prior to investing City funds, the City Treasurer shall meet with Financial Services Department staff to understand the City’s projected cash needs for day-to-day operations and ongoing capital improvement projects. Using this information, the City Treasurer can then determine the appropriate length of time for the investment.
3. Yield or rate of return shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles considering the investment risk constraints and liquidity needs. Market rate of return is defined as the average return on the one-year U.S. Treasury Bill. Whenever possible, and in a manner consistent with the more important objectives of safety of principal and liquidity, a yield higher than the market rate of return shall be sought.
The standard of care to be applied shall be the “prudent person,” which states:
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
Officers and employees acting in accordance with the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions.
Authority to manage the investment program is granted to the Treasurer who shall be responsible for the investment of all funds. In his/her absence, the Financial Services Director, and/or Director of Finance, and City Manager, in that order, are authorized to act on his/her behalf. These responsibilities shall include the authority to open accounts with banks, brokers, and dealers, and to establish safekeeping accounts or other arrangements for the custody of securities and to execute such documents as may be necessary. Prior to any of the above activities being finalized, written concurrence by two of the above individuals shall be obtained.
FINANCIAL POLICIES
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Responsibility for the operation of the investment program is delegated to the Financial Services Director and/or Director of Finance, who shall carry out established written procedures and internal controls consistent with this investment policy. Transactions shall be complete, valid, authorized and properly recorded.
All securities owned by the City shall be held in a safekeeping account with the financial institution in the name of the City, and under City control at all times. All trades, where applicable, shall be executed by delivery to the City, including those purchased for the City by financial advisers, consultants, or managers by book entry, physical delivery, or by third-party custodial agreement. All security transactions shall be evidenced by safekeeping receipts.
Sections 16429.1, 53601, 53601.1, 53601.7, 53635, and 53638 of the Government Code of the State of California set forth the investment vehicles available to local agencies as summarized in the following paragraphs. Section 53601, as now amended, provides that unless Section 53601 specifies a limitation on an investment’s maturity, no investments with maturities exceeding five years shall be made unless otherwise directed by the City’s Council members.
Bankers’ Acceptances - As authorized in Government Code Section 53601(g), 40 percent of the City’s portfolio may be invested in bankers’ acceptances, although no more than 30 percent of the portfolio may be invested in bankers’ acceptances with any one commercial bank. Additi onally, the maturity period may not exceed 180 days.
California Asset Management Program (CAMP) - Since 1989, CAMP has helped serve the investment and arbitrage compliance needs of California public agencies. Investment options offered to public agencies through CAMP are the Pool, Term and individual portfolios. Arbitrage rebate compliance services are available for bond proceeds invested through the Program.
CAMP Pool is a short -term cash reserve portfolio and cash management vehicle. The Pool is managed to maintain a dollar-weighted average portfolio maturity of 60 days or less and seeks to maintain a constant net asset value (NAV) per share of $1.00. The Pool invests in obligations of the United States Government and its agencies, high-quality, short-term debt obligations of U.S. companies and financial institutions. The Pool is a permitted investment for all local agencies under California Government Code Section 53601(p).
Commercial Paper - As authorized in Government Code Section 53601(h), 40 percent of the City’s portfolio may be invested in commercial paper of the highest rating (A -1 or P-1) as rated by Moody’s or Standard and Poor’s, with maturities not to exceed 270 days. Local agenci es may purchase no more than 10 percent of the outstanding commercial paper of any single issuer. There are other qualifications regarding investments in commercial paper based on the financial strength of the corporation and the size of th e investment.
Government Agency Issues - As authorized in Government Code Sections 53601(a) through (f), this category includes a wide variety of government securities which include the following:
• Local government bonds or other indebtedness.
• State bonds or other indebtedness.
• U.S. Treasury notes or other indebtedness secured by the full faith and credit of the federal government. • Other federal agency securities including but not limited to issues by the Government National Mortgage Association, Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation.
• State of California obligations such as California Treasury Notes or General Obligation Bonds.
There is no limit on this type of investment; however, the total amount shall not be committed to any one agency.
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Medium-term notes (MTN’s) - As authorized in Government Code Section 53601(k), medium- term notes are defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated “A” or better by a nationally rec ognized ratings service.
Purchases of medium- term notes shall not include other instruments authorized by this section and may not exceed 30 percent of the agency’s money that may be invested pursuant to this section; however, no more than 10 percent in one issue or issuer.
Money Market Mutual Funds – As authorized in Government Code Section 53601(l)(2), these investments are shares of beneficial interest issued by diversified management companies that are money market mutual funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940.
The company shall have met either of the following criteria: (a) attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations; or (b) retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).
The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include any commission the companies may charge and shall not exceed 20 percent of the agency’s money that may be invested pursuant to this section. However, no more than 10 percent of the agency's funds may be invested in shares of beneficial interest of any one mutual fund.
Negotiable Certificates of Deposit - As authorized in Government Code Section 53601(i), no more than 30 percent of the agency’s money may be invested in negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a state- licensed branch of a foreign bank. All purchases must be fully insured by the Federal Deposit Insurance Corporation (FDIC) or fully collateralized.
State Treasurer’s Local Agency Investment Fund (LAIF) - As authorized in Government Code Section 16429.1 and by LAIF procedures, local government agencies are each authorized to invest a maximum of $75 million (regular accounts) in this investment program administered by the California State Treasurer. Bond proceeds accounts have no deposit restrictions.
A derivative is defined as a financial instrument created from or whose value depends on the value of one or more underlying assets or indexes of asset values. No investment shall be made in collateralized mortgage obligations (CMO’s), interest-only (IO’s) and principal-only (PO’s) forwards, futures, currency and interest rate swaps, options, and caps/floor/collars. Neither shall any investment be made in reverse repurchase agreements as outlined in Government Code 53601(j).
With the objectives of this policy, diversification of the portfolio will be made at all times in such a manner to avoid incurring unreasonable risks. No investment shall be made in a security prohibited by this policy or by Government Code 53601.6. Liquidity shall be maintained in such a manner that no less than 20 percent of the portfolio shall have a term of one year or less.
At the time of each investment, either by renewal or initial purchase, an analysis shall be made of the entire portfolio to ensure the limit for that type of investment shall not be exceeded.
Assets held by fiscal agents are held pursuant to formal agreements such as the requirements of a bond issue or an agreement between the City and another government agency or other entity. The investment of assets held by fiscal agents shall occur pursuant to these formal requirements as permitted by Section 53601(m) of the California
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Government Code. However, the investment of such assets is subject to the laws established by the State of California pertaining to investments by local agencies as well as the City’s primary investment objectives.
For the 457 and 401(a) deferred compensation plans, investment decisions regarding these assets are made by the participants pursuant to the deferred compensation plans outlined by Memorandums of Understanding per bargaining unit and are not considered a part of this investment policy.
Under provisions of the California Government Code Section 53646, there shall be a report at least quarterly made to the City Council and City Manager reporting the status of all investments. Per subdivision (d), the legislative body of a local agency may elect to require the report specified in subdivision (b) to be made on a monthly basis instead of quarterly. The City’s Municipal Code requires the City Treasurer to make a monthly report to the City Council of all investments made pursuant to the authority delegated in this chapter. (Municipal Code 3.08.050 – Ord. 2 § 1 (part), 1981)
These reports shall show for all securities:
• type of investment
• issuer or institution
• date of maturity
• amount of deposit
• rate of interest
• current market value
• accrued interest due
• current broker/dealers and par amount invested through their company as a percentage of the total portfolio
In addition to the items required by Section 53646 of the California Government Code, the following items should be included on the monthly reports to ensure compliance with this investment policy and Governmental Accounting Standards Board (GASB) Statement No. 40, Deposit and Investment Risk Disclosures:
• investment rating at time of purchase (Moody’s / Standard & Poor’s) • investment rating as of June 30 of each fiscal year (Moody’s / Standard & Poor’s)
Investments held by a fiscal agent and agents for any deferred compensation funds shall be reported based on the most recent published reports received by the City at the time the report is made to the City Council.
The City shall transact investment business only with banks, savings and loans, and registered securities dealers.
All financial institutions and broker/dealers who desire to become bidders for investment transactions must supply the City with the following:
• audited financial statements
• proof of National Association of Security Dealers' certification • trading resolution
• proof of California registration
• certification of having read the City of Cathedral City’s investment policy • résumé of employees who will be engaged in transactions with the City • Community Reinvestment Act (“CRA”) Rating of Satisfactory or above.
A periodic review of the financial condition and registrations of qualified bidders shall be conducted. An annual certification of having read the City’s investment policy shall be required by all brokers/dealers.
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The Treasurer shall review on a quarterly basis the LAIF report regarding its investments and the market value thereof and obtain and review the State Treasurer’s investment policy and annual audited financial report as it pertains to LAIF.
This investment policy shall be reviewed at least annually by the City Council and City Manager or in accordance with California Government Code Section 53646 requirements.
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FUND BALANCE POLICY
The purpose of this policy is to establish a key element of the financial stability of the City by setting guidelines for fund balance. Unassigned fund balance is an important measure of economic stability. It is essential the City maintain adequate levels of unassigned fund balance to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, and similar circumstances. The fund balance also provides cash flow liquidity for the City’s general operations.
Classification of Fund Balances
A fund’s equity - commonly referred to as ‘fund balance’ - is generally the difference between its assets and its liabilities. In accordance with Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, fund balance will be displayed in the following classifications depicting the relative strength of the spending constraints placed on the purposes for which resources can be used:
• Non-spendable fund balance – amounts that will never convert to cash (such as prepaid items), amounts that will not convert to cash soon enough to affect the current period (such as assets held for resale), or are required to be maintained intact (such as the corpus of an endowment fund). • Restricted fund balance – amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government) through constitutional provisions or by enabling legislation. • Committed fund balance – amounts constrained to specific purposes by the government itself. This requires a formal action of the government’s highest level of decision-making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally.
• Assigned fund balance – amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to whom the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. At a minimum, this indicates resources in other governmental funds are intended to be used for the purpose of that fund. • Unassigned fund balance – is the residual classification of the General Fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose.
Since there are practical and/or legal limitations on the use of non-spendable or restricted fund balances, they are not subject to the fund balance policies. The fund balance policies are relevant to the unrestricted fund balances, which include committed, assigned and unassigned fund balances.
Authorization and Action to Commit Fund Balance
The City Council is the government’s highest level of decision-making authority and the formal action required to establish, modify, or rescind a fund balance commitment is a resolution approved by the Council at a City Council meeting. The resolution must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period.
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Authorization and Action to Assign Fund Balance
The City Council may assign fund balance to a specific purpose in relation to this fund balance policy. By resolution, the Council has also authorized the City Manager and/or Financial Services Director to assign fund balance.
Assignments of fund balance by the City Manager and/or Financial Services Director do not require formal action by the City Council; however, each assignment must be approved by either of the authorized officials before the item can be presented in the financial statements.
Of the available fund balance, the City strives to assign a minimum of 33% of budgeted expenditures and transfers out, with a target of 50% by fiscal year 2020, for the following purposes: (1) cash flow reserves (50%); (2) economic uncertainties (40%); and (3) budget-related reserves (10%). These assignments are to alleviate significant unanticipated budget shortfalls and to ensure the orderly provisions of services to citizens.
Should the assignments noted above fall below the goal or have a deficiency; the City will seek to reduce expenditures prior to increasing revenues to replenish fund balance within a reasonable timeframe. The City will try to avoid using fund balances for recurring operational expenditures.
Additional assignments may be made at the discretion of City Council or their authorized designees.
Unassigned Fund Balance
To the extent the unassigned fund balance is positive, the City may draw upon the fund balance to provide cash financing for capital projects or other one-time purchases. Should economic projections and prudent measures warrant, City Council may also approve the systematic reduction of any excess fund balance as a tactic to prevent tax increases.
Order of Expenditure of Funds
When multiple categories of fund balance are available for expenditure (for example, a construction project is being funded partly by a grant, funds set aside by the City Council, and unassigned fund balance), the City will start with the most restricted category - spending those funds first - before moving down to the next category with available funds.
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PROCUREMENT POLICY
The City of Cathedral City’s procurement policy establishes efficient procedures for the purchase of supplies and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure the quality of purchases.
The complete procurement policy is included in the City’s Municipal Code, Title 3 (Revenue and Finance), Chapter
3.12 (Purchases). Topics covered by the policy include:
ARTICLE 1 – GENERAL
3.12.010 Purpose.
3.12.020 Scope.
3.12.030 Council Contract Policies Adopted by Resolution.
3.12.040 Centralized Purchasing.
3.12.050 Purchasing Agent.
3.12.060 Exemptions from Centralized Purchasing.
3.12.070 Purchasing Orders.
3.12.080 Open (Standing) Purchase Orders.
3.12.090 Contract Types.
ARTICLE 2 – PURCHASING OF GOODS AND SERVICES
3.12.100 Bidding.
3.12.110 Local Vendor Preference.
3.12.120 Formal (sealed) bid procedure.
3.12.130 Tie Formal Bonds.
3.12.140 No Formal Bids.
3.12.150 Open Market or Informal Bid Procedure.
3.12.160 Exceptions to Competitive Bidding Requirement.
3.12.170 Regulations Regarding Selection of Contract Services.
3.12.180 Best Value Criteria.
ARTICLE 3 – FEDERAL REQUIREMENTS
3.12.190 Regulations for the Procurement of Property or Services Stemming from Federal Aid
ARTICLE 4 – PUBLIC WORKS CONTRACTS
3.12.200 Public Works Contracts.
ARTICLE 5 – DESIGN BUILD CONTRACT PROCUREMENT
3.12.210 Design-Build Contract Procurement Procedures.
ARTICLE 6 – DISPOSITION of SURPLUS PROPERTY
3.12.220 Surplus Supplies and Equipment.
3.12.230 Surplus Supplies – Trade-ins.
3.12.240 Surplus Supplies—Sale.
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FIXED ASSET POLICY
The City of Cathedral City's fixed asset policy stems from two major objectives:
1. Accounting and Financial Reporting - To accurately account for and report fixed assets in financial reports issued to external reporting agencies, granting agencies and the public.
2. Safeguarding - The City has a fiduciary responsibility to establish systems and procedures to protect its (fixed) assets from loss or theft.
In meeting the two objectives noted above, the City has established a Capitalization Policy (below) and an Inventory Control Policy (see Policy 30100), providing specific guidance to determine which fixed assets are subject to separate accounting and reporting (i.e., capitalization) and safeguarding, respectively.
The Financial Services Department is responsible for, and has established, systems and procedures through which both objectives are met. These systems and procedures are used to identify, process, control, track, and report City fixed assets.
Governmental Accounting Standards Board (GASB) Statement 51, Accounting and Financial Reporting for Intangible Assets, became effective beginning July 1, 2009 (FY 2010). To address this, the City has established an Intangible Assets Policy, which is included later in this section.
Governmental Accounting Standards Board (GASB) Statement 96, Subscription- Based Information Technology Arrangements, became effective for fiscal years beginning after June 15, 2022 (FY 2023). To address this, the City has established a Subscription-Based Information Technology Arrangements (SBITA) Assets Policy, which is included later in this section. This covers software arrangements that are not clearly part of a lease (such as a small software component used for a copying machine) or part of a perpetual license which is an intangible asset.
Capitalization Policy (Accounting and Financial Reporting) Assets meeting the following criteria will be capitalized:
• The asset is used in the City’s operations.
• Life expectancy is greater than one year.
• The asset has a minimum value as follows:
Vehicles, machinery, and equipment $5,000
Land and land improvements $10,000
Infrastructure $50,000
Buildings $50,000
Structures $50,000
Intangibles $50,000
This capitalization threshold is applied to individual units of fixed assets. For example, ten desks purchased through a single purchase order, each costing $1,000, will not qualify for capitalization even though the total ($10,000) exceeds the threshold of $5,000.
For purposes of capitalization, the threshold will generally not be applied to components of fixed assets. For example, a keyboard, monitor and central processing unit purchased as components of a computer system will not be evaluated individually against the capitalization threshold. The entire computer system will be treated as a single fixed asset.
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Capital asset additions will be recorded as assets when purchased. Additions and deletions of capital assets will be recorded at least on an annual basis. Asset additions and deletions will be verified with the source documents.
All costs associated with Capital Improvement Programs (CIP) Plan approved by City Council during the budget cycle will accumulate as construction-in-progress. At the end of the fiscal year, costs of completed projects, as accepted by City Council, will be transferred to the appropriate asset account as of the last day of the fiscal year.
Depreciation will commence at the beginning of the next fiscal year.
The City will maintain a listing of all assets meeting the capitalization policy. Assets will be separated into the following classifications:
A. Vehicles, machinery, and equipment
B. Land and land improvements
C. Infrastructure
1. Bridges
2. Streets
3. Curbs and gutters
4. Access ramps
5. Bus turnouts
6. Sidewalks
7. Traffic signals
8. Streetlights
9. Storm drains
10. Retention basins
11. Sewer lines
12. Water lines
13. Utility lines
14. Urban landscaping
a. Irrigation
b. Lighting
c. Outdoor furniture
d. Trees
D. Buildings
E. Structures
F. Intangibles
Capital assets additions will be recorded in the year assets are purchased. Additions and deletions of capital assets will be recorded at least on an annual basis. Asset additions and deletions will be verified with the source documents.
All costs associates with capital improvement projects approved by City Council during the budget cycle will accumulate as construction in progress. At the end of the fiscal year, costs of completed projects, as accepted by City Council, will be transferred to the appropriate asset account as of the last day of the fiscal year. Depreciation will commence at the beginning of the next fiscal year.
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Developer constructed infrastructure is capitalized by the City as donated assets at the end of the fiscal year in which the City accepts the infrastructure. The responsibility for general maintenance of the infrastructure transfers from the developer to the City at the time the City Council accepts the project. The value of infrastructure is calculated based on information provided by the developer’s engineer.
The following will be included in capitalized costs:
• Purchased assets – Assets are capitalized individually at their historical cost, which includes trade-in allowance, sales tax, installation cost, freight and delivery charges, and any other ancillary charges needed to render the asset into service.
• Donated assets – Donated capital assets are recorded at estimated fair market value at the date of donation with a debit to expenditure and credit to revenue in related funds and the Statement of Net Assets. • Constructed assets – Capital projects are capitalized as construction in progress until completed. Costs to be capitalized include all direct costs, site preparation, professional fees, as well as any other ancillary charges needed to render the asset into service. Upon completion and City Council acceptance, these costs are transferred to the appropriate asset classification.
Costs Unique to Specific Asset Classifications
• Land – Land costs, in addition to the purchase price, may include legal and title fees, survey fees, appraisal and negotiation fees, damage payments, relocation costs, site preparation costs (clearing, filling, and leveling), and demolition of unwanted structures. Land is capitalized, but not depreciated. For associated costs related to the purchase of easements and rights of way, please see the intangibles section below.
• Buildings and Structures – Buildings and structures assets costs may include purchase or construction costs; professional fees for engineers, architects, attorneys, appraisers, financial advisers, etc.; payment of damage claims; costs of fixtures attached to the building or other structure; insurance premiums; interest and related costs incurred during the period of construction and other expenditures necessary to put the building or structure in use.
• Infrastructure – Infrastructure assets are long-lived capital assets stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets (e.g., roads, bridges, tunnels, drainage systems, water and sewer systems, dams, lighting systems). Land associated with infrastructure is reported as land rather than as part of the cost of the related infrastructure asset. The City categorizes its infrastructure as networks. A network of assets provides a particular type of service, e.g., streets.
Improvements vs. Maintenance
The reporting department will make the differentiation between improvement and maintenance projects by reviewing the budget document and using the appropriate detailed account. • Improvements – Improvements consist of additions or betterments. An addition refers to a physical extension of an existing asset or the acquisition of an entirely new unit, which does not merely replace one of similar function or value. Betterments exist when a part of an existing asset is replaced by another and the replacement provides a significant increase in the life or value of the asset. These costs will be capitalized.
• Maintenance – Maintenance costs refer to repairs to maintain the asset at its useful and current value.
These costs will not be capitalized.
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Depreciation and Estimated Useful Lives
All depreciable capital assets will be depreciated over their estimated useful lives using the straight-line method of depreciation and the beginning of month convention. Estimated useful life by asset category is as follows:
A. Vehicles, machinery, and equipment 5 to 20 years
B. Land and land improvements Not depreciable
C. Infrastructure:
C.1 Bridges 40 years
C.2 Streets 20 years
C.3 Curbs and gutters 30 years
C.4 Access ramps 30 years
C.5 Bus turnouts 30 years
C.6 Sidewalks 30 years
C.7 Traffic signals 20 years
C.8 Street lights 25 years
C.9 Storm drains 50 years
C.10 Retention basins 50 years
C.11 Sewer lines 50 years
C.12 Water lines 20 years
C.13 Utility lines 20 years
C.14 Urban landscaping:
C.14.a. Irrigation 10 years
C.14.b. Lighting 10 years
C.14.c. Outdoor furniture 10 years
C.14.d. Trees 10 years
D. Buildings 30 years
E. Structures 20 years
F. Intangibles 5 – 40 years
Intangible Assets
Governmental Accounting Standards Board (GASB) Statement 51, Accounting and Financial Reporting for Intangible Assets, became effective July 1, 2009 (FY 2010).
The cumulative effect, if any, of applying this Statement requires a restatement of beginning net assets, fund balances, or fund net assets (as appropriate). This means certain intangible assets (and related amortization) in existence from July 1, 1980 to June 30, 2009 may need to be reported as the beginning (July 1) balance for intangible assets for FY 2010. See section entitled “Retroactive Reporting” for further details.
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An intangible asset should be recognized in the statement of net assets only if it is identifiable, which means the asset is either:
A. Separable (i.e., it can be separated/divided from the government and sold, transferred, licensed, rented or exchanged) or
B. Arose from contractual or other legal rights, regardless of whether those rights are transferable or separable.
GASB Statement 51 defines intangible assets as assets identifiable and possess all the following characteristics:
• lack of physical substance,
• nonfinancial nature (not in monetary form like cash or investment securities), and • initial useful life extending beyond a single reporting period.
Examples of intangible assets include easements, land use rights (i.e., water rights, timber rights and mineral rights), patents, trademarks, and copyrights. In addition, intangible assets include computer software purchased, licensed or internally generated (including websites) as well as outlays associated with an internally generated modification of computer software. See the following section on GASB 96 SBITA Assets for subscription-based assets.
Intangible assets can be purchased or licensed, acquired through nonexchange transactions or internally generated.
All intangible assets subject to the provisions of GASB Statement 51 should be classified as capital assets.
Accordingly, existing authoritative guidance related to the accounting and financial reporting for capital assets (i.e. recognition, measurement, presentation, disclosure, etc.) should be applied to intangible assets as applicable.
Exclusions
GASB Statement 51 applies to all intangible assets except: (a) assets acquired or created primarily for purposes of directly obtaining income or profit (these intangible assets should be considered investments), (b) assets from capital lease transactions reported by lessees, except licensing agreements to lease commercially available computer software, and (c) goodwill created through the combination of a government and another entity.
Threshold for Capitalization
The intangible asset capitalization threshold has been established at $50,000. The threshold is to be consistently applied by all departments of the City for financial reporting purposes. All intangible assets at or above a specified dollar amount must be reported for the ACFR, all other intangible assets are excluded.
Measurement/Recognition
Effective July 1, 2009, intangible assets exceeding the City’s threshold should be recorded at actual historical cost.
For business-type activities and enterprise funds capitalized interest and ancillary charges, if any, should be included in the historical cost.
Only direct costs will be capitalized (indirect costs will not be included).
Intangible assets received in a nonexchange transaction (i.e., donated) are to be recorded at their estimated fair value at the time of acquisition.
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• The fair value of an asset is the amount at which the asset could be exchanged in a current transaction between willing parties, other than in forced or liquidation sale. Therefore, it would be inappropriate to arbitrarily assign a nominal value to a donated intangible asset without applying a rational technique to estimate its fair value.
The threshold for intangible assets applies to individual assets and it is not acceptable to account for items in aggregate to meet the threshold limitations.
For internally generated intangible assets, outlays incurred by the government’s personnel, or by a third-party contractor on behalf of the government, for development of internally generated intangible assets should be capitalized.
For internally generated computer software, outlays incurred during the application development stage (see next page) will be capitalized if they exceed the threshold. These outlays include the initial purchase of the computer software/license and modifications made to the software before it is placed into operation. The initial purchase of the software/license and modifications made should be analyzed separately for capitalization purposes (do not aggregate).
• Costs incurred prior to July 1, 2009, for internally generated computer software projects in the application development stage will not be capitalized. However, costs incurred July 1, 2009 and beyond, for these projects will be capitalized if exceeding the City’s threshold.
Computer software licenses purchased/renewed will not be aggregated. Each individual license purchased/renewed will be measured against the City’s threshold and the useful life must extend beyond a single reporting period for the license to be capitalized.
Internally Generated Intangible Assets
Internally generated intangible assets are created or produced by the government or an entity contracted by the government, or they are acquired from a third party but require more than minimal incremental effort on the part of the government to begin to achieve their expected level of service capacity.
Outlays related to the development of an internally generated intangible asset identifiable should be capitalized only upon the occurrence of all the following:
Specified-Conditions Criteria
a. Determination of the specific objective of the project and the nature of the service capacity is expected to be provided by the intangible asset upon completion of the project. b. Demonstration of the technical or technological feasibility for completing the project so the intangible asset will provide its expected service capacity.
c. Demonstration of the current intention, ability, and presence of effort to complete or, in the case of a multiyear project, continue development of the intangible asset.
Only outlays incurred subsequent to meeting the above criteria should be capitalized; outlays incurred prior to this point should be expensed.
Internally Generated Computer Software
Computer software is considered internally generated if it is developed in-house by the government’s personnel or by a third-party contractor on behalf of the government.
Commercially available software purchased or licensed by the government and modified using more than minimal incremental effort before being put into operation should be considered internally generated. Any of the following
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activities would satisfy the “modified using more than minimal incremental effort” criterion: changing code, changing fields, adding special reporting capabilities, and testing any changes.
The development and installation of internally generated computer software can be grouped into three stages:
1. Preliminary Project Stage: involves conceptual formulation and evaluation of alternatives, determination of the existence of needed technology and final selection of alternatives for development of the software.
Expense all outlays in this stage.
2. Application Development Stage: includes the design of the chosen path (i.e., software configuration, software interfaces), coding, installation to hardware, and testing. Data conversion activities could be included in this phase if those activities are deemed necessary to make the software operational. Capitalize all outlays incurred during this stage once the Specified-Conditions Criteria are met. (Note: the Specified- Conditions Criteria are considered met when the Preliminary Project Stage is complete and management authorizes/commits to funding the project.) Capitalization should cease when the computer software is substantially complete and operational.
3. Post-Implementation/Operation Stage: includes application training and software maintenance. Data conversion activities would be included in this stage if not deemed necessary to make the software operational. Expense all outlays in this stage.
Outlays associated with an internally generated modification of computer software already in operation should be capitalized if the modification results in any of the following:
a. increase in functionality of the software (able to perform tasks it was previously incapable of performing), b. increase in efficiency of the software (increase in level of service provided without the ability to perform additional tasks) or
c. extension of the estimated useful life.
If the modification does not result in any of the three outcomes, the modification should be considered maintenance and expensed accordingly.
Amortization (Use Straight-Line Method)
The useful life of an intangible asset arising from contractual or other legal rights should not exceed the period to which the service capacity of the asset is limited by those contractual or legal provisions. Contract renewal periods may be considered in determining the useful life of the intangible asset if there is evidence the government will seek and be able to achieve renewal and the anticipated outlay for renewal is nominal in relation to the level of service capacity obtained.
If there are no legal, contractual, regulatory, technological, or other factors limiting the useful life of an intangible asset, then the intangible asset should be considered to have an indefinite useful life and no amortization should be recorded.
A useful life that must be estimated does not mean indefinite useful life. Intangible assets subject to amortization will be amortized over a period of 5 to 40 years, depending on the asset.
Impairment
If changes in factors and conditions result in the useful life of an intangible asset no longer being indefinite, the asset should be tested for impairment because a change in the expected duration of use of the asset has occurred.
The carrying value of the intangible asset, if any, following the recognition of any impairment loss should be amortized in subsequent reporting periods over the remaining estimated useful life of the asset.
A common indicator of impairment for internally generated intangible assets is development stoppage, such as stoppage of development of computer software due to changes in the priorities of management.
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Retroactive Reporting
The City of Cathedral City will not retroactively report the following intangible assets:
1. Those considered to have indefinite useful lives as of June 30, 2009 or
2. Those that would be considered internally generated as of June 30, 2009.
3. Costs incurred prior to July 1, 2009, for internally generated computer software projects in the application development stage will not be capitalized. However, costs incurred July 1, 2009 and beyond, for these projects will be capitalized if exceeding the City’s threshold.
Intangible assets (and related amortization) requiring retroactive reporting (for the period July 1, 1980 through June 30, 2009) will be reported at actual historical cost. This includes purchased software still in use, even if fully amortized as of June 30, 2009.
NOTE: If actual historical cost cannot be determined for these intangible assets due to lack of sufficient records, estimated historical cost will be used.
Miscellaneous
This policy must be applied to all intangible assets. If an intangible asset meeting the threshold criteria is fully amortized, the asset must be reported at the historical cost and the applicable accumulated amortization must also be reported. It is not appropriate to “net” the intangible asset and amortization to avoid reporting.
When intangible assets are sold or disposed of, it is necessary to calculate and report a gain or loss in the statement of activities. The gain/loss is calculated by subtracting the net book value (historical cost less any accumulated amortization) from the net amount realized on the sale or disposal.
Lease Assets Policy (Accounting and Financial Reporting)
Background
Governmental Accounting Standards Board (GASB) Statement 87, Leases, became effective for fiscal years beginning after June 15, 2021 (FY 2022).
The cumulative effect of applying this Statement requires accounting for leases of significant value in which the City is the lessor and in which the City is the lessee. This include the leasing out of assets purchased through capital funds and proprietar y funds. This includes our lease agreements for equipment which provide a significant asset value, such as copying machines and/or computer equipment. The leasing of software is covered as a subscription- based information technology arrangement.
SBITA Assets Policy (Accounting and Financial Reporting)
Background
Governmental Accounting Standards Board (GASB) Statement 96, Subscription -Based Information Technology Arrangements, became effective for fiscal years beginning after June 15, 2022 (FY 2023).
The cumulative effect of applying this Statement requires an accounting of software agreements in which we have exclusive non-cancelable rights to use the software, but does not cover maintenance or support agreements. Many costs associated with software are now annual subscriptions which is a combined license and maintenance/support agreement, which qualifies as an SBITA in whole or in part.
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INVENTORY CONTROL (SAFEGUARDING)
Department heads are ultimately responsible for safeguarding their fixed assets from theft or loss. However, the Financial Services Department does recognize and acknowledge its responsibility to establish and maintain systems and procedures that enable department heads to properly safeguard their assets.
In general, inventory control is applied only to movable fixed assets (generally those falling into the “Vehicle and Equipment” category), and not to land, buildings, or other immovable fixed assets. Fixed assets subject to inventory control will be accounted for and controlled through the same systems and procedures used to account and control fixed assets subject to capitalization.
Fixed assets will be subject to inventory control if they meet at least one of the following criteria:
• The original cost of the fixed asset is equal to or greater than $5,000. • Any asset less than $5,000 as requested from a department. This may include certain machinery and equipment that, due to its portability, value outside of the office, or character, are susceptible to theft or loss.
It may also include any asset that has been requested by a department to be controlled in order to satisfy an internal (operational) or external requirement. For example, Management Information Systems may wish to track all computer hardware to establish replacement and upgrade requirements for both hardware and system software.
• Any asset required to be controlled and separately reported pursuant to grant conditions or any other externally imposed reporting requirement. For example, a grant program that has funded the acquisition of a fixed asset may impose a requirement that the fixed asset be tracked and identified as a grant-funded asset.
Asset Acquisition All capital assets will be recorded by the City’s Finance Department in the following manner.
1. Upon receipt of the asset, the department initiating the purchase will complete an Asset Acquisition form.
They will attach a copy of the invoice for the asset to the form and forward both items to the Finance Department.
2. Finance will review the information to verify that the item meets the criteria for capitalization and enter the information into the fixed asset system, if appropriate.
The Financial Services Department will conduct a fixed asset inventory on a four-year rotation schedule:
• Year 1 – Police Facility
• Year 2 – City Hall
• Year 3 – Fire Facilities
• Year 4 – Public Works Facility
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Asset Dispositions All items sold, traded in, scrapped, abandoned, or in any way removed from service are classified as dispositions.
Disposition of Inoperable/Unrepairable Property
1. All departments and divisions will complete a Capital Asset Disposition form explaining the reason for deleting the asset(s). The Department Director or designee will approve the form and forward it to the Finance Department.
2. The Finance Director will review the form and direct Finance Department staff to remove the asset(s) from the City’s asset and inventory system.
Asset Transfers
1. All departments and divisions will complete a Capital Asset Disposition form. The Department Director or designee transferring the asset and the department receiving the asset will approve the form and forward it to the Finance Department.
2. The Finance Department will make the location changes in the City’s asset and inventory system as requested.
Reporting Assets that meet the capitalization threshold will be capitalized and reported as follows in the City’s Comprehensive Annual Financial Report.
• Governmental assets will not be capitalized in the funds in which they are purchased. They will be expensed in the funds, but reported in the Governmental Activities column of the Statement of Net Assets net of depreciation.
• Proprietary fund type assets (if any) will be capitalized and depreciated in the funds in which they are purchased, and also reported in the Business Activities column of the Statement of Net Assets net of depreciation.
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DEBT POLICY
The purpose of this Debt Management Policy is to organize and formalize debt issuance and management related policies and procedures for the City of Cathedral City, CA (City), the City of Cathedral City as Successor Agency to the Former Redevelopment Agency, and the Cathedral City Public Finance Authority (references herein to the “City” are deemed to include the Successor Agency and Authority). The debt policies and procedures of the City are subject to and limited by applicable provisions of state and federal law and to prudent debt management principles.
This Debt Policy (Policy) is intended to comply with Government Code Section 8855(i), effective on January 1, 2017, and will apply to all future debt considerations and issuances for which the City Council acts as the legislative body for the City, the Successor Agency, and the Cathedral City Public Finance Authority (CCPFA).
The primary objectives of the City’s debt and financing related activities are to:
• Maintain cost-effective access to the capital markets through prudent fiscal management policies and practices;
• Ensure that judicious debt service commitments are made through effective planning and cash management;
• Ensure compliance with all applicable federal and state securities laws; • Achieve the highest practical credit ratings within the context of the City’s financing needs and financing capabilities;
• Ensure that all debt is structured in order to protect both current and future taxpayers, ratepayers and constituents of the City; and
• Ensure that the City’s debt is consistent with the City’s planning goals and objectives and capital improvement program or budget, as applicable.
ASSIGNMENT OF RESPONSIBILITY
This Policy will govern the issuance and management of all future debt issued by the City, Successor Agency and CCPFA. This Policy will be reviewed and updated periodically as necessary. Any changes to the Policy will be approved by the City Council. The City Council is responsible for overall policy direction of this Policy, as well as the authorization of each debt financing. The Financial Services Director or Finance Director is to be responsible for implementation of the Policy, as well as its day-to-day administration.
The City recognizes that, while this Policy provides guidance and structure for the decisions and management of the City’s debt, changes in capital markets, city programs and other unforeseen circumstances may arise that are not addressed in this Policy. In these cases, management flexibility is appropriate, and modifications or exceptions may be necessary to achieve the City’s goals.
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DEBT ISSUANCE
Purpose of Debt Issuance
The City’s debt management program will consider debt issuance in cases where public policy, generational equity and economic efficiency provide a benefit to the residents of Cathedral City.
The City will utilize debt obligations and will give due consideration to all available funding sources, including available cash reserves, available current revenues, potential future revenue sources, potential grants, and all other financing sources legally available to be used for such purposes. Expenditure of bond proceeds are expected to fund major, non-recurring expenditures/expenses, including but not limited to: the financing of costs related to capital project planning and design, environmental, land acquisition, real property, and equipment acquisition; the construction or renovation of buildings and permanent structures; financing costs related to the debt issuance, capitalized interest, necessary or financially prudent debt service reserves; or other costs as permitted by law.
Refunding or refinancing existing debt obligations are acceptable uses of bond proceeds.
Types of Debt
The City will evaluate the use of appropriate financial alternatives available as permitted by the State Constitution and applicable State statutes. These alternatives will be considered in order to secure the most cost advantageous financing alternative available while limiting the City’s risk exposure. Types of debt may include, but are not limited to:
• Lease revenue bonds
• Certificate of Participation
• Revenue bonds
• Land-secured financing, such as special tax bonds and assessment bonds • General obligation bonds
• Tax increment financing
• Conduit financing, such as financing for affordable rental housing and qualified 501(c)(3) organizations • Refunding/refinancing existing debt obligations
• General Obligation Bonds
• Short term notes
• Lease-purchase transactions
• Letters of Credit and revolving credit
The City will also consider the advantages of a negotiated or competitive bond sale and recognizes that a standard, all-purpose approach to debt financing does not serve the best interest of the City. The City will consider the unique combination of factors such as the type of debt needed, funding stream, market conditions and City programs to structure each debt issuance.
The City may choose to maintain an Interfund Loan Practice to provide guidance for internal financing between City funds.
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Debt Structuring Practices
The maximum term of any debt issuance will not exceed the useful life of the assets funded from the financing.
Capitalized interest and deferral of principal may be considered but not required during construction of a debt- funded project. Fixed rate debt is preferred, but the City may consider the appropriateness of variable rate debt when considering financial market conditions and risk factors.
Financing Options
In general, debt may be issued to fund new projects or to refinance existing debt.
New Debt
New debt issuances are used to generate funding for capital projects. These funds will be used for necessary land acquisitions, capital construction, equipment, related financing costs, and other necessary expenses that would deliver a project for the City.
Refinancing Existing Debt
A periodic review of the City’s outstanding debt will be undertaken by the Financial Services Department to determine refunding opportunities.
Refunding bonds are issued to retire all or a portion of an outstanding bond issue, typically to secure lower interest rates and to reduce overall debt service. Alternatively, some refunding’s are undertaken for reasons other than to achieve cost savings, such as to restructure debt service payments, shorten maturities and to change the type of debt instruments being used, or to eliminate undesirable covenants.
A present value savings analysis will be prepared to identify the economic effects of any refunding being considered by the City. The savings from any particular refunding candidate shall generally be at least 3% of the refunded principle amount, net of all transaction expenses. This 3% savings target may be waived by the City upon a finding that such a refunding is in the City's best overall financial interest and shall not be applicable for refunding transactions that are not solely undertaken to achieve cost savings.
Integration with City Capital Improvement Program (CIP) Plan and Budgets
The City is committed to long-term financial planning, maintaining appropriate reserves levels, and employing prudent practices in governance, management, and budget administration. In addition, the City maintains a General Plan as well as a multi-year Capital Improvement Program (CIP) Plan to establish and monitor priorities for projects.
The City strives to integrate its debt issuances with the goals of the CIP by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City’s public purposes and in a timely manner to avoid having to make unplanned expenditures for capital improvements or equipment from its general fund budget.
The City intends to issue debt for the purposes stated in this Policy and to implement policy decisions incorporated both in the City’s annual operations budget as well as the CIP.
Policy Goals
The City is committed to long-term financial planning, maintaining appropriate reserves levels, and employing prudent practices in governance, management, and budget administration. It is a policy goal of the City to protect taxpayers, ratepayers, and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs.
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The City will comply with applicable state and federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates, and charges.
When refinancing debt, it shall be the policy goal of the City to realize, whenever possible, and subject to any overriding non-financial policy considerations, (i) minimum net present value debt service savings equal to or greater than 3.0% of the refunded principal amount, and (ii) present value debt service savings equal to or greater than 100% of any escrow fund negative arbitrage.
Consultants
The City will, when appropriate and given the specific requirements of the financing, secure the services of independent financial advisors, underwriters, disclosure council, bond council, appraisal services and other service providers.
Investment of Bond Proceeds
Bond proceeds will be invested according to the City-adopted Investment Policy or the Bond Fiscal Agreement, if applicable. The City will not use derivatives unless the City adopts a separate comprehensive Derivatives Policy.
Ongoing Administration and Internal Controls
When issuing debt, in addition to complying with the terms of this Debt Policy, the City will comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post-issuance compliance, and investment of bond proceeds.
The City will accurately account for all debt-related activity. These records will be designed to ensure that the City maintains compliance with all debt covenants, as well as state and federal laws. The City will maintain a system of reporting interest earnings that relates to and complies with Internal Revenue Code requirements relating to rebate, yield limits and arbitrage.
Compliance
Initial Disclosure
In accordance with Senate Bill 1029 (2016) (“SB1029”), the City will submit a report of final sale to the California Debt and Investment Advisory Commission, not later than 21 days following the sale of the debt. A copy of the final Official Statement shall accompany the report of final sale. In the event that the Official Statement has not yet been finalized, the City will provide documentation to satisfy the requirements of SB1029, as necessary.
Ongoing Disclosure
The City will maintain compliance with the regulations set forth in Government Code Section 8855(i), Rule 15(c)2- 12 – Securities and Exchange Commission Rule 15(c)2-12, Continuing Disclosure (“Rule 15(c)2-12”) and SB 1029.
Section 8855(i), Rule 15(c)2-12 – The City will file an annual report and annual financial information with the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System (EMMA). The reports will be made timely and in accordance with Rule 15(c)2-12 as amended.
SB 1029 – The City will submit an annual report for any issue of debt whose final sale occurred on or after January 21, 2017. The annual report will cover the reporting period July through June 30 and will be submitted no later than seven months following the end of the reporting period.
Adoption by Legislative Body
In accordance with SB1029, the City and the Cathedral City Public Finance Authority will adopt this policy. In implementing this policy from time to time, interpretations and variations may be made at the discretion of the City’s Manager or Chief Financial Officer, without approval of the Council, as determined by such person to be in the best interests of the City or its citizens, and/or for purposes of administrative efficiency or convenience or to comply with new applicable federal, state, or local law.
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REIMBURSEMENT FOR TRAVEL AND TRAINING, AND VEHICLE USE POLICY The purpose of this Reimbursement for Travel and Training, and Vehicle Use Policy is to formalize an accountable plan and uniform procedures for travel expenses & reimbursing city employees for training, travel, meetings, and out of pocket expenses incurred while on official business.
The City hereby formalizes its policies and procedures for the reimbursement of training, general travel and other actual necessary expenses incurred by eligible individuals in the course of performing their official duties.
GENERAL POLICY
This policy formalizes standards for travel and business expenses incurred while performing or conducting official City business.
• Eligible Individuals:
o All employees at the City covered by a collective bargaining agreement and all employees covered by Regulations Covering Executive, Administrative, Professional, Confidential, and Other Particular Employees.
o Councilmembers and members of boards, commissions, committees.
• The City Manager and department heads are charged with the responsibility of authorizing travel and reimbursement, per this policy, and ensuring that all expenditures hereunder are within approved budget limits.
• All employees requesting reimbursement for allowed expenses, other than meals, shall provide a valid itemized receipt. Any such receipt shall include or be accompanied by documentation of the name of the vendor (e.g., hotel, airline, taxi), the date and purpose of service and actual amount charged. Employees shall file a Travel Expense Report for reimbursement through the Employee Self Service system.
• In the event a receipt is not available to substantiate an expense, the employee may submit a written explanation, with all pertinent expense and situational details, through their organizational chain of command to their respective department head. Requests approved by a department head may be sent to the City Manager, or designee, who will review such requests for reimbursement and make a final determination as to approval or denial. Reimbursement requests for business expenses without original receipts will be processed for payment only upon approval by City Manager, or designee.
• Discretion: This policy does not claim to have addressed all contingencies and conditions. Any necessary and reasonable expense that may from time-to-time be justified due to circumstances or opportunities for the City or any necessary and reasonable expenses that may deviate from the provision of this Policy, may be presented to the City Manager, or designee for their review and approval. The City Manager, or designee shall exercise due diligence to ensure that expenses are reasonable and necessary for the conduct of City business, are within budgetary limits and ensure the City's fiscal position by minimizing costs.
o If an expense is not outlined in this policy, it may be subject to dismissal or rejection.
• Personal and business travel shall not be commingled in such a manner as to increase allowable expense or otherwise adversely affect the interest of the City.
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DEPARTMENT TRAINING AND TRAVEL BUDGETS
Departments will be provided an annual budget for business travel, conferences and training based upon their unique requirements. Departments should monitor their travel and training expenditures to ensure approved allocations are not exceeded. If the overall departmental budgeted allocation has been spent, and additional travel is necessary, authorization by the City Manager, or designee’s required.
JOB TRAINING
The City supports job training as an ongoing process and as an important tool to help employees remain current in their job responsibilities and skills. All training is subject to available funds; however, job-required training will be given preference in the decision-making process for expending training funds. The City encourages training opportunities that can be obtained in a cost-effective manner. Such opportunities will be given priority over other similar types of training.
• Job Required Training: Includes mandated certifications, licenses or mandatory training required to perform the duties and responsibilities of a job. This may also include mandated safety training, technical or professional training, seminars and conferences, workshops, and similar programs. For employees required to obtain certification to perform the duties of their job, the City will pay all expenses required to obtain the certification one time. If the employee is required to retake the test, the expenses will be the employee’s responsibility unless waived by the City Manager.
• Job Related Training: Includes general types of training related to the performance of current job duties, development of skills, or training that would assist an employee’s advancement within their department and/or organization.
• Covered by MOU: These sections are not meant to provide greater or different rights than those that exist in any Memorandum of Understanding (MOU). To the extent that any MOU addresses this topic and/or there is a conflict, the provisions of the MOU will govern.
COMPENSABLE TIME
• Time attending any work-related training in which the cost is paid by the City is compensable time.
• Travel Time: The principles which apply in determining whether time spent in travel is compensable time depends upon the kind of travel involved.
o Traveling during normal work hours is considered compensable work time, except for travel to and from the normal fixed or assigned workplace.
o If travelling to a location that is one other than the normal fixed or assigned workplace, an employee’s time traveling to and from the abnormal or not assigned workplace location is compensable.
• Travel Away from Home: Travel that keeps an employee away from home overnight is travel away from home. Travel away from home is work time when it cuts across the employee's workday. The time is not only hours worked on regular working days during normal working hours but also during corresponding hours on nonworking days.
• Home to Work Travel: An employee who travels from home before the regular workday and returns to their home at the end of the workday is engaged in ordinary home to work travel, which is not work time and is not compensable.
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• Time spent by an employee commuting to and from work is not work-related travel and is not compensable time.
• Lunch or meal breaks are not compensable time unless the lunch includes a speaker and/or is considered a working lunch as evidenced by the agenda.
GENERAL TRAVEL
• Employees shall select the most economical method of transportation in terms of expense to the City and the employee’s time away from the office. Employees shall receive approval, per the below, prior to making any travel arrangements.
o If travel expenses total more than five thousand dollars ($5,000), including registration, lodging, meals, and transportation (all expenses outlined in the travel approval form), travel shall be approved by the City Manager or designee.
o If travel expenses total less than five thousand dollars ($5,000), including registration, lodging, meals, and transportation (all expenses outlined in the travel approval form), travel need only be approved by the employee’s Department Head.
• Upon approval of travel, City credit cards may be used to make travel arrangements. Receipts, approval forms, and expense reports shall be submitted when reconciling City credit card statements.
o Employees who do not have a City credit card may have their supervisor or other department employee reserve lodging on their behalf using a City credit card.
o A travel advance may also be requested for lodging expenses. (Refer to Section J for additional information relating to travel advances.)
• If itemized receipts are not included in the Travel Expense Report, the employee may be responsible for travel expenses.
• An employee who extends the approved travel for their own convenience will not be entitled to any additional allowance for meals or lodging.
• Travel on behalf of the City in case of an emergency may be exempt from provisions of this section with approval from the City Manager. Expense reports or other paperwork will be completed and submitted as soon as practical upon return from travel, but no longer than thirty (30) days after travel expenses occurred.
• A valid California driver’s license with appropriate endorsement is required if the employee is driving a City, personal, or rental vehicle while on City business. It is the employee’s responsibility to maintain a valid California driver’s license and report any changes to their supervisor. (Refer to Section M for additional information relating to private automobile.)
• If more than one employee is attending the same training, employees shall attempt to arrange to carpool, either using a City pool vehicle or a designated employee’s personal vehicle. Personal vehicle mileage reimbursement will not be paid to more than one employee when carpooling.
• Airfare/Train: Allowance for air and train travel is based on actual round trip coach fare, tourist fare or by the method least costly to the City. Employees are expected to make special efforts to take advantage of discounts, special fares, and travel vouchers whenever available at reasonable and convenient times. If an
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employee opts to travel using a fare above the Coach rate, the employee shall provide documentation for the two fares and is personally responsible for the cost difference.
• Travel Insurance: The purchase of travel insurance requires prior authorization by the employee’s department head for airfare.
• Car Rental: Allowance for car rental is based on actual cost to rent a mid-range size vehicle. Employees are expected to make special efforts to take advantage of discounts, special fares, and travel vouchers whenever available at reasonable and convenient times. Employees shall have a valid California driver's license and proof of insurance when using a rental vehicle while on City business. Employees are required to notify Risk Management and/or their department head as soon as possible (within 24 hours) of any event/incident causing property damage, or accident related to the rental car.
• Taxis, Shuttles, and/or Ride Shares (Uber/Lyft): Taxis, shuttles, and/or ride shares, such as Uber and Lyft may be reimbursed, with no more than 15% gratuity.
• Parking Expenses: The City will provide reimbursement for actual cost of parking associated with travel, including parking at the airport, hotel, and conference parking, training, or meeting site or in conjunction with any employee City business activity.
• Claims for payment or employee reimbursement shall be allowable when accompanied by a receipt for the purchase and a copy of the ticket purchased or other voucher for the common carrier expense.
• Government and group rates shall be used when available. Actual costs evidenced by an original, dated receipt and inclusive of all related taxes and other rental fees shall be submitted along with actual gas receipts (dated, vendor name printed on the receipt) obtained for the purchase of gas for the rental vehicle.
ADVANCE TRAVEL AUTHORIZATION
• Travel expenses require prior authorization by the Department Head and the City Manager’s (or designee) approval when the estimated total cost (including registration, transportation, lodging, and meals) is expected to cost five thousand dollars ($5,000) or more per person.
• Travel expenses require prior authorization by the employee’s Department Head when the estimated total cost (including registration, transportation, lodging, and meals) is less than five thousand dollars ($5,000) per person. The Department Head’s approval indicates that the travel is approved and within budget.
USE OF TRAVEL ADVANCE AND/OR TRAVEL EXPENSE REPORT
• Each employee submitting a claim for reimbursement under this policy shall file a Travel Expense Report, through the Employee Self Service portal.
• The Travel Expense Report shall include the date(s) of travel, business destination, total amount, and business purpose. It shall include a copy accompanied by all required supporting documents (expenditure receipts, lodging facility folio, registration forms, and meeting itineraries, conference flyer, etc.).
• Claims shall be filed promptly, but no later than 30 days after the expense occurred. Claims filed after this time may not be considered for payment.
• Each claim form submitted shall meet the requirements of this policy, including providing receipts and/or credit card slips, and shall be reviewed and approved by the submitting employee's department head and the Financial Services Department for compliance with this policy.
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• All claim forms and associated documents related to reimbursable City expenditures are considered public records and may be subject to disclosure under the California Public Records Act {Chapter 3.5 (Commencing with Section 6250) of Division 7 Title 1}.
TRAVEL ADVANCES:
• Employees may request a travel advance for use in the course of necessary and allowable travel and shall be requested via the Employee Self Service system. The employee's department head shall approve the issuance of cash advances.
• Travel advances may be requested for the following expenses:
o Meals
o Lodging
o Air fare
o Car rental
If a travel expense is not listed above, it shall be reimbursed after the fact. Typical reimbursable expenses include mileage, transportation (ride shares), and parking.
• Travel advances are to be documented and reported in the same manner as expenses incurred and submitted for reimbursements, e.g., receipts shall be saved (exceptions apply to meal expenses – Section L), a claim form may be submitted, expenses are limited, approvals of expenses shall be secured, etc.
Should there be unused travel advance, the City shall be reimbursed within five (5) days if the following applies:
o Travel arrangements have been cancelled; or,
o At the conclusion of travel.
Notwithstanding, a travel advance of any denomination will not be granted whenever the requesting employee has an open travel-advance on file, wherein the employee has not submitted the necessary receipts and paperwork confirming the previous advance was used in its entirety for actual and necessary expenditures in accordance with this policy.
• Travel advances will be provided through payroll. A Claim Voucher shall be submitted to payroll through the Employee Self Service system.
o Travel shall occur within 30 days of the advance.
LODGING AND RELATED EXPENSES:
• Lodging and overnight stays are not authorized for travel under 50-miles from the city limits. They may be authorized for travel more than 50 miles from City limits.
• Employees should seek the most affordable rates available for safe, convenient, clean accommodations at 3-star quality properties, using government, group, or discounted rates when available at reasonable and convenient times. In addition to the primary travel cost, e.g., room rate, etc., an employee making lodging arrangements should also consider secondary costs, e.g., internet service fees, property use fees, etc.
o Reservations for lodging should be booked as early as possible to take advantage of lower rates.
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• When lodging is in connection with a conference or organized educational activity, lodging expenses shall not exceed the group rate published by the conference sponsor for the conference in question. The employee shall endeavor to stay at the conference sponsored lodging facility.
• Lodging expenses over $250 per night shall be approved by the City Manager, or designee. If the GSA’s lodging per diem rate for the destination site is greater than $250, the corresponding GSA per diem rates shall be submitted with the travel approval form for review by all approving parties.
o However, this requirement does not apply if a conference sponsor has set aside rooms for conference attendees at a lodging facility. Instead, you shall book lodging directly with the lodging facility.
• The group rate shall be clearly defined in the supporting documents provided by the conference coordinators or conference sponsor (all supporting documents shall be accompanied with the travel approval form).
• Actual and necessary cost of lodging and related expenses, including advance payments to any city employee shall be allowed, except as otherwise provided in this Section.
• Lodging in upgraded rooms is allowable if:
o the employee pays the cost difference and provides proof of the price difference for the original and upgraded rooms; or,
o the employee or their department can document that no other option exists, and the selected lodging is the only option available – supporting documentation shall be attached to the travel approval form.
• Lodging and related expenditures outside the provisions of this policy may be allowed only when pre- approved by the City Manager, in accordance with Section General Policy - Discretion.
• An employee's reimbursement claims for lodging shall include an explanation of the business purpose of the stay and be supported by receipts, a facility folio, and shall be accompanied by all approved travel forms. When reconciling City Credit card travel expenses shall be included as supporting documents for invoice reconciliation.
MEAL EXPENSES:
• Meal expenses shall be allowed at the maximum daily meal allowance rate of $60 ($15 for breakfast, $20 for lunch, and $25 for dinner) per employee, inclusive of taxes and reasonable tips. Per diem advances and reimbursements for meals shall be allowed when related to attendance at conventions, scheduled meetings, conferences, seminars, special training, or assignments that require an overnight stay.
o An employee's meal reimbursement claim shall be based on meals while enroute to the training site, at training, and enroute home, but does not include breakfast on the departure date and dinner on the return home date.
o Meal expenses up to the per diem rate do not require a receipt to be allowable. Meal expenses beyond the per diem reimbursement allowance are the responsibility of the employee. If an employee uses a City credit card for meals, then the employee will reimburse the City if any meal limit amounts identified above are exceeded.
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o Meals included in a conference or meeting registration are not eligible for reimbursement.
Therefore, if a meal is provided by conference or meeting registration, but the traveler chooses to eat elsewhere, the added meal expense is not reimbursable.
• Meal expenses during attendance at any single day event will be allowable only when it is not reasonable for the employee to provide their own meal(s). Requests for a same-day travel meal shall only be allowed when preapproved by the employee's department head, in accordance with this policy. In evaluating any request for same-day meal reimbursements, the employee's department head shall consider special situations on a case-by-case basis, taking into consideration the distance traveled and the duration of the specific business activity. The maximum reimbursement for any same day event should be $20 for lunch.
PRIVATE AUTOMOBILE
• With the exception of employees receiving an automobile stipend, the City's preference is for all employees to use City vehicles rather than personal vehicles.
• The City's private-vehicle mileage reimbursement rate is the same as the Internal Revenue Service (IRS) standard mileage rate (www.irs.gov) for private vehicles and will be effective concurrently with IRS periodic establishment of said rate.
• Mileage shall be calculated by deducting the employee’s normal commute from the total number of miles to and from the destination.
• Mileage reimbursements for use of a private vehicle shall be allowed upon authorization of the employee's department head. Reimbursement of private mileage will only be granted when a more economical means of travel is not available. However, travel/map documentation shall be provided with the travel expense form. In any case, mileage will not be reimbursed for portions of the trip made for non-business-related matters.
• Private vehicle expenses are allowable when in the course and scope of employment, including overnight travel.
o Private vehicle use shall be approved by the employee's department head.
o In the event of an incident or accident, the City does not assume responsibility for any physical damage to an employee's personal vehicle or for the payment of any kind of deductible.
o Employee shall maintain a valid driver's license, which is appropriate for the class of vehicle to be operated. If any restrictions apply, the employee shall notify their supervisor of the restrictions and/or any and all changes in the license (i.e., suspended, etc.).
• The use of motorcycles, mopeds, and similar types of vehicles for the conduct of City business is expressly prohibited, with the exception of personnel on duty in a specific assignment.
• When a department head or the City Manager authorizes use of a private vehicle for the convenience of the driver, instead of more economical travel by air, reimbursement shall not exceed the cost of usual airfare, plus ground transportation.
o The quote shall be accompanied by the Travel Expense Report.
FINANCIAL POLICIES
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• Employees are required to notify Risk Management and the employee's department head, as soon as possible, but in no event more than twenty-four (24) hours after any incident or accident, unless physically unable.
• Neither an employee receiving a monthly auto allowance nor an employee utilizing a city owned vehicle in their regular scope of employment is eligible to receive private-vehicle mileage reimbursement.
LOCAL TRANSPORTATION, TOLLS, AND PARKING
• Public transportation use is described as local transportation and can be claimed with itemized receipts.
• 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 service, internet, the cost of usual or necessary services and supplies, including emergency repairs, parts or towing 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 the 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.
NON-REIMBURSABLE EXPENSES:
• Expenses that the city will not reimburse 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 incurred in conjunction with reimbursable meal expenses.
o Personal losses incurred while on City business.
FINANCIAL POLICIES
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o Expenses bearing no relation to City business, even 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-compliance 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 pursuant to Section 8314 of the Government Code; and,
o Prosecution for misappropriation of public resources, per Section 424 of the Penal Code.
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 the City Manager or Designee for resolution.
DEBT ADMINISTRATION
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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 2025/2026 and FY 2026/2027. 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 Authority issued Cathedral City Public Financing Authority Lease Revenue Bonds, 2022 Series A (Federally Taxable) in the amount of $28,780,000. The purpose of the issuance of the bonds was to refinance a portion of the City’s CalPERS Obligation and refund the outstanding Authority Lease Revenue Refunding Bonds Series 2015A (Taxable). The City Council approved the issuance of the pension obligation bonds on September 15, 2021.
The following table highlights the total principal and interest due for FY 2025/2026 and FY 2026/2027 on the new issue. Amounts due beyond the current two-year budget period are summarized in a single line.
Year Ended
June 30
Lease
Revenue
Bonds
Limited
Obligation
Bonds
Tax
Allocation
Bonds
Capital
Lease
Obligations Total
2026 3,404,602$ 2,801,475 5,064,631 - 11,270,708 2027 3,192,327 2,784,048 5,063,740 - 11,040,114 2028 - 2036 18,001,026 19,777,126 24,919,018 - 62,697,169 Total 24,597,955$ 25,362,648 35,047,389 - 85,007,991
OUTSTANDING DEBT
Year Ended
June 30 Principal Interest Total
2026 2,610,000$ 794,602 3,404,602
2027 2,485,000 707,327 3,192,327
2028 - 2033 15,620,000 2,381,026 18,001,026 Total 20,715,000$ 3,882,955 24,597,955
LEASE REVENUE BONDS
DEBT ADMINISTRATION
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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. Repayment of the bonds is secured solely by the payments received from the purchased assessment district bonds.
The following table highlights the total principal and interest due for FY 2025/2026 and FY 2026/2027. 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 enforceable 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 O
ctober 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 Bonds, 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.
In July 2024, the Successor Agency to the RDA issued Tax Allocation Revenue Refunding Bonds, Series 2024A (Merged Redevelopment Project Area) ($21,845,000) and Tax Allocation Housing Revenue Refunding Bonds, Series 2024B (Merged Redevelopment Project Area) ($8,500,000) and Subordinate Taxable Tax Allocation Revenue Refunding Bonds. These bonds refunded the Tax Allocation Refunding Bonds, Series 2014A and Tax Allocation Housing Revenue Refunding Bonds, Series 2014B.
Year Ended
June 30 Principal Interest Total
2026 2,025,000$ 776,475 2,801,475
2027 2,085,000 699,048 2,784,048
2028 - 2036 16,745,000 3,032,126 19,777,126 Total 20,855,000$ 4,507,648 25,362,648
LOCAL AGENCY REVENUE BONDS
DEBT ADMINISTRATION
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The following table highlights the total principal and interest due on the 2000 Tax Allocation Bonds, Series A and the 2007 Tax Allocation Bonds, Series A for FY 2025/2026 and FY 2026/2027. 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 Successor 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
2026 3,145,132$ 1,919,499 5,064,631
2027 3,291,233 1,772,506 5,063,740
2028 - 2036 16,648,014 8,271,004 24,919,018 Total 23,084,379$ 11,963,009 35,047,389
TAX ALLOCATION BONDS
LEGAL DEBT MARGIN
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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 $925,868,850 the City is not at risk of exceeding the legal debt limit.
Legal Debt Margin Calculation as of June 30, 2024
Assessed value (net taxable) 1 $ 6,328,759
Debt limit (15% of assessed value) $ 949,313,850
Less outstanding debt (subject to legal debt limit) $(23,445,000)
Legal debt margin $925,868,850
1 Source: HdL Coren & Cone (Riverside County Assessor 2023/24 Combined Tax Rolls), as reported in City of Cathedral City, California Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2024.
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APPENDICES
• Glossary of Acronyms
• Glossary of Terms
GLOSSARY OF ACRONYMS
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ii
A
AB: Assembly Bill
ABC: Alcohol Beverage Control
ACBCI: Agua Caliente Band of Cahuilla Indians
ACFR: Annual Comprehensive Financial Report
ACO: Animal Control Officer
ADA: American Disability Act
ADFAP: Assessment District Fee Assistance
ADU: Accessory Dwelling Unit
ALS: Advanced Life Support
ALPR: Automatic License Plate Recognition
APIP: Alliant Powers Authority Program
APWA: American Public Works Association
AQMD: Air Quality Management District
ARC: Acritical Review Committee
ARPA: American Rescue Plan Act
ATP: Active Transportation Plan
AVA: Abandoned Vehicle Authority
B
BLDG: Building
C
CA: California
CACEO: California Association of Code Enforcement Officers CAD: Computer Aided Dispatch
CALED: California Association for Local Economic Development Cal-JAC: California Firefighter Joint Apprenticeship Committee CalOSBA: California Office of the Small Business Advocate CalPERS: California Public Employees Retirement System
CAMP: California Asset Management Program
CASp: Certified Access Specialist Program
CAT: Category
CBAT: County Behavioral Assessment Team
CBP: Community-Based Paramedicine
CC: City Council
CCAC: Cathedral City Auto Center
GLOSSARY OF ACRONYMS
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iii
CCEO: Certified Code Enforcement Officer
CCFE: City Fire & EMS
CCFMA: Cathedral City Fire Management Association
CCHS: Cathedral City High School
CCPD: Cathedral City Police Department
CCPFA: Cathedral City Public Finance Authority
CCPMA: Cathedral City Police Management Association
CCSC: Cathedral City Senior Center
CCTV: Closed-Circuit Television
CDBG: Community Development Block Grant
CDTFA: California Department of Tax and Fee Administration CDP: Career Development Plans
CERT: Community Emergency Response Team
CERBT: California Employers’ Retiree Benefit Trust Fund CEQA: California Environmental Quality Act
CET: Center for Employment Training
CEU: Continuing Education Unit
CFD: Community Facilities District
CH: City Hall
CHIP: Community Home Improvement Program
CIP: Capital Improvement Program
CIWMA: Countywide Integrated Waste Management Bureau
CLETS: California Law Enforcement Telecommunications System CPR: Cardiopulmonary resuscitation
CPE: Call Processing Equipment
CPSE: Center for Public Safety Excellence
CPT: Continuing Professional Training
CRRA: California Resource Recovery Association
CM: City Manager
CMO: City Manager’s Office
CMO’S: Collateralized Mortgage Obligations
COD: College of the Desert
COM: Communications & Events
COVID-19: Novel Coronavirus 2019-nCoV
CRA: Community Reinvestment Act
CRR: Community Risk Reduction
GLOSSARY OF ACRONYMS
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CSO: Community Service Officer
CSS: Customer Self Service
CURC: City Urban Revitalization Corporation
CV: Coachella Valley
CVAG: Coachella Valley Association of Government
CVEP: Coachella Valley Economic Partnership
CVHC: Coachella Valley Housing Coalition
CVREP: Coachella Valley Repertory
CVRM: Coachella Valley Rescue Mission
CVWBC: Coachella Valley Women’s Business Center
CVWD: Coachella Valley Water District
CWSRF: Clean Water State Revolving Fund
CY: Calendar Year
D
DCP: Duplex Conversion Program
DHRP: Dream Homes Renovation Program
DHS: Desert Hot Springs
DIF: Development Impact Fee
DIP: Digital Inspection Program
DOF: Department of Finance
DMV: Department of Motor Vehicles
DRD: Desert Recreation District
DSC: Development Services Committee
DUI: Driving Under the Influence
E
E/O: East of
EAP: Employee Assistance Program
EAM: Enterprise Asset Management
ED: Economic Development
EMD: Emergency Medical Dispatching
EMMA: Electronic Municipal Market Access
EMPG: Emergency Management Performance Grant
EMS: Emergency Medical Services
EMT: Emergency Medical Technician
ENG: Engineering
EOC: Emergency Operations Center
GLOSSARY OF ACRONYMS
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EOP: Emergency Operations Plan
ePCR: electronic Patient Care Reporting
EPL: Enterprise Permit and Licensing
ERAF: Education Revenue Augmentation Fund
ERICA: Eastern Riverside County Interoperable Communications Authority ERP: Enterprise Resource Planning
ESS: Employee Self Service
F
FBI: Federal Bureau of Investigations
FCA: Facilities Condition Assessment
FDIC: Federal Deposit Insurance Corporation
FEMA: Federal Emergency Management Agency
FHWA: Federal Highway Administration
FIN: Finance
FPPC: Fair Political Practice Commission
FS: Fire Station
FTE: Full-time employee
FTHB: First Time Home Buyer Program
FTO: Field Training Officer
FY: Fiscal Year
G
GAAP: Generally Accepted Accounting Principles
GAAS: Generally Accepted Auditing Standards
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: Government Information System
GSA: General Services Administration
H
H4H: Habitat for Humanity
HBPF: Highway Bridge Program Fund
HEAL: Healthy Eating Active Living
HELP: Housing Enabled by Local Partnership
HLO: Homeless Liaison Officer
HOA: Homeowners Association
GLOSSARY OF ACRONYMS
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HR: Human Resources
HRA: Health Reimbursement Arrangement
HP-CPR: High-Performance CPR
HSA: Housing Successor Agencies
HSIP: Highway Safety Improvement Program
HUD: Housing and Urban Development
HUTA: Highway User Tax Account
HVAC: Heating, ventilation, and air conditioning
I
IBCCES: International Board of Credentialing and Continuing Education Standards ICS: Incident Command System
IES: Inland Empire Section
IO’S: Interest-Only
IRS: Internal Revenue Service
ISO: International Organization for Standardization
IT: Information Technology
K
KPMs: Key Performance Measures
L
LAFCO: Local Agency Formation Commission
LAIF: Local Agency Investment Fund
LED: Light-emitting diode
LGBT: Lesbian, Gay, Bisexual, Transgender Plus
LHMP: Local Hazard Mitigation Plan
LiDAR: Light Detection and Ranging
LLD: Lighting and Landscape District
LLP: Limited Liability Partnership
LOB: Limited Obligation Bonds
LST: Local Sales Tax
LWCF: Land and Water Conservation
M
MD&A: Management’s Discussion and Analysis
MIH: Mobile Integrated Health
MMASC: Municipal Management Association of Southern California MOE: Maintenance of Effort
MOU: Memorandum of Understanding
MTN: Medium-term notes
GLOSSARY OF ACRONYMS
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MUP: Master Underground Plan
N
NFIRS: National Fire Incident Reporting System
NIBRS: National Incident-Based Reporting System
NIMS: National Information Management System
NPDES: National Pollution Discharge Elimination System
O
OES: Office of Emergency Services
OMB: Office of Management and Budget
OPA: Owner Participation Agreements
OPEB: Other Postemployment Benefits
OTS: Office of Traffic Safety
P
PAC: Public Art Commission
PACE: Parks and Community Events Commission
PACT: Post-Release Accountability & Compliance Team
PBI: Project Budget Indicator
PC: Planning Commission
PD: Police Department
PDF: Portable Document Format
PEG: Public Education Government
PEMHCA: Public Employees’ Medical and Hospital Care Act PERMA: Public Entity Risk Management Authority
PERS: Public Employees Retirement System
PLAN: Planning
PM: Particulate Matter
PMIA: Pooled Money Investment Account
PMP: Pavement Management Program
PO’S: Principal-Only
POST: Police Officers Standards Training
PPE: Personal Protective Equipment
PSA: Police Service Assistant
PSEC: Public Safety Enterprise Communication
PUC: Public Utility Commission
PW: Public Works
GLOSSARY OF ACRONYMS
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viii
Q
QAF: Quality Assurance Fee
R
RCFCD: Riverside County Flood Control Department
RCTC: Riverside County Transportation Commission
RDA: Redevelopment Agency
REAS: Rubberized Emulsion Aggregate Slurry
RFP: Request for Proposal
RIPA: Racial Profiling Data Collection
RivCo Ed.: Riverside County office of Education
RMRA: Road Maintenance and Rehabilitation Account
ROI: Return on Investment
ROPS: Recognized Obligation Payment Schedule
ROSC: Return of Spontaneous Circulation
RPTTF: RDAs Property Tax Trust Fund
S
S/O: South of
S&P: Standard & Poor’s
SAS: Statement on Auditing Standards
SB: Senate Bill
SBA: Small Business Administration
SBDC: Small Business Development Center
SBITA: Subscription-Based Information Technology Arrangements SCAG: Southern California Association of Governments
SCAP: Sanitation Capacity Assistance Program
SCAQMD: South Coast Air Quality Management District
SCLP: Short-Lived Climate Pollutants
SCRAP: Student Creative Recycle Art Program
SEFA: Schedule of Expenditures of Federal Awards
SEMS: Standardize Emergency Management System
SFST: Standard Field Sobriety Test
SHARP: Sewer Hookup Assistance Program
SLA: Surplus Land Act
SOP: Standard Operating Procedure
SRRE: Source Reduction Recycling Element
STVR: Short-Term Vacation Rental
SUP: Special Use Permit
GLOSSARY OF ACRONYMS
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ix
SWOT: Strengths, Weaknesses, Opportunities, and Threats T
TAB: Tax Allocation Bond
TDA: Transportation Development Act
TOT: Transient Occupancy Tax
TSA: Transportation Security Administration
TTP: Tribal Transportation Program
TUT: Transactions and Use Tax
U
UUT: Utility Users’ Tax
UAL: Unfunded Actuarial Liability
V
VHF: Very High Frequency
VLF: Vehicle License Fee
GLOSSARY OF TERMS
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x
A
ABATEMENT: A reduction or an exemption on the level of taxation faced by an individual or company.
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.
ACTUARY: A professional who uses financial and economic theory, statistics, and mathematics to assess the likelihood of future events and the associated costs.
AD HOC: Ad hoc is a word that originally comes from Latin and means “for this” or "for this situation." ADOPTED BUDGET: The official budget as approved by the City Council prior to the start of each fiscal year.
AGGREGATE: The whole sum or amount; sum total.
ALLOTMENT: A portion of an appropriation that is set aside for a specific purpose or period of time.
AMENDED BUDGET: The official budget as approved by the City Council with amendments approved throughout the budgeted fiscal year.
AMORTIZATION: The expense of an intangible asset over time.
ANNEXATION: The inclusion, attachment, or addition of territory to a city.
ANNUITY: A contract that requires regular payments for more than one full year to the person entitled to receive the payments (annuitant)
APPROPRIATIONS: A legal authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation is usually limited in amount and to the time when it may be expended.
ARBITRAGE: A financial strategy that involves buying and selling the same or similar asset in different markets to profit from price differences.
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.
ASSET: Any resource owned or controlled by the city that can be used to produce positive economic value.
ASSET (INTANGIBLE): Non-physical assets that are not financial in nature and have a useful life that extends beyond a single reporting period. This can include assets such as easements, water rights, timber rights, patents, trademarks, and computer software.
AUDIT: An official examination of an organization’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.
GLOSSARY OF TERMS
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xi
BIENNIAL: Every other year.
BIENNIUM: A specified period of two years.
BLIGHT: A wide array of urban problems, which can range from physical deterioration of buildings and the environment to health, social and economic problems in a particular area.
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 (DEFEASE): A bond that has been rendered risk-free by setting aside assets to cover all future interest and principal payments
BOND (REFUNDING): The issuance of a new bond for the purpose of retiring an already outstanding bond issue.
BOND (REVENUE): 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.
BOND (TAX ALLOCATION): Bonds repaid with tax increments flowing to the Successor Agency to the RDA resulting from an increase in property taxes and assessed values over the original (frozen) base.
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 composed 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.
C
CALENDAR YEAR: A period of a year beginning January 1 and ending December 31.
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION: The state organization responsible for the administration of 30+ different taxes and fees, categorized as: 1) Prepaid Telephony, 2) Sales and Use Tax, 3) Special Taxes and Fees, or 4) Collection Cost Recovery Fees.
CAPITAL IMPROVEMENT PROGRAM: 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 IMPROVEMENT PROGRAM (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 OUTLAY: Expenditures for equipment/furniture and fixtures with a cost of more than $5,000 and a useful life exceeding one year.
GLOSSARY OF TERMS
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xii
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.
CAPITALIZE: An accounting determination whereby the recognition of expenses is delayed by recording the expense as a long-term asset and then released over its useful life CESSATION: The fact or process of ending or being brought to an end.
COLLATERAL: Something pledged as security for repayment of a loan, to be forfeited in the event of a default.
COMMENCEMENT: A beginning or start.
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 - income and moderate-income households.
CONDUIT DEBT OBLIGATIONS (CDO): A debt instrument issued by a state or local government to fund a third party that is not part of the government's financial reporting entity. CDOs are typically limited- obligation revenue bonds or certificates of participation.
CONTRACTED SERVICES: Services rendered in support of City operations 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 operated by carrying out the specifications of trust indentures, statutes, ordinances, or other governing regulations.
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.
DEFEASE BOND: A bond that has been rendered risk -free by setting aside assets to cover all future interest and principal payments.
DEFERRED: Withheld or delayed for or until a stated time.
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 assessments 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.
DERIVATIVE PRODUCT: A financial instrument created from, or the value of which depends on (is derived from), the value of one or more underlying assets or indices of asset values.
GLOSSARY OF TERMS
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xiii
DISPOSITION: The disposal of assets through a sale, assignment, or transfer where the ownership of the asset is transferred.
DISSOLUTION: The process of closing down a business or partnership and settling its financial obligations.
DIVISION: An organizational subgroup of a department.
E
ENCUMBRANCE: The commitment of appropriated funds to purchase 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. Expenditures 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 acting in a fiduciary capacity for other entities, carrying out specific actions of agreements, ordinances, 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 adopts 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 buildings, land, automotive equipment, office equipment, office furniture, acquisitions, landscaping improvements, and the like.
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 (MAJOR): 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.
FUND (NON-MAJOR): Funds deemed insignificant enough to not warrant an individual separate column when reported. These are aggregated and reported in a separate column.
FUND (PROPRIETARY): These funds are used to account for business -type activities. These include the Internal Service Funds and Enterprise Funds.
FUND BALANCE: The equity (assets minus liabilities) of governmental fund and fiduciary fund types.
However, for budgeting purposes, a working capital definition of current assets minus current liabilities is used for the computation.
GLOSSARY OF TERMS
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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 conventions, rules, and procedures necessary to define accepted accounting practices at a particular time. They include not only broad 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 from 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.
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 provided 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.
MATERIAL MISSTATEMENT: The notion that an omission or misstatement of accounting information is of such significance as to make it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.
MELLO-R OOS 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 for 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 ACCRU AL BASIS: The accrual basis of accounting where revenues are recognized when they become both "measurable" and "available" to finance expenditures 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 warrant an individual separate column when reported. These are aggregated and reported in a separate column.
GLOSSARY OF TERMS
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xv
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 principal 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.
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
RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS): A document that outlines the minimum payment amounts and due dates for a redevelopment agency's enforceable obligations.
REDEVELOPMENT AGENCY (RDA): A legislatively established subdivision 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 land and building acquisition and t heir 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 could 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.
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 independent third party through the purchase of an insurance policy. The City
GLOSSARY OF TERMS
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xvi
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 specific 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 flowing 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.
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 official representative of bondholders. They are appointed to ensure compliance with the trust indenture.
U
USER CHARGES: Payments made by users or customers of publicly provided services benefiting specific individuals. These services exhibit "public good" characteristics. 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 capital) 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.
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xvii
COUNCIL ACTIONS
• GANN Appropriations Limit
• Resolutions
GANN APPROPRIATIONS LIMIT
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xviii
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 valuation 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 appropriation limit. According to these sources, for purposes of the FY 2025/2026 calculation, the County population increased 0.27% while the City population decreased 0.67%.
As such, the County population increase of 0.27% was used in the calculation. California per capita personal income increased by 6.44%. 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 currently at about 49.42% of the “Gann Limit,” which indicates that the City is not overtaxing its citizens.
The FY 2025/2026 Appropriation Limit was calculated as follows:
FY 2024/2025 Appropriation Limit $105,859,654
Increased by an inflation factor composed of the increase in population and increase in CA per capita income
(1.0644 x 1.0027 = 1.0672)
X 1.067
FY 2025/2026 Appropriation Limit $112,981,243
The "Proceeds of Taxes", as included in the FY 2025/2026 Adopted Budget, subject to the appropriations limit are estimated to be $55,839,805. Therefore, the City has what is referred to as an appropriation "gap" of $57,141,438 ($112,981,243 - $55,839,805). Simply stated, this means the City could collect and spend up to $57,141,438 more in taxes during FY 2025/2026 without exceeding the Constitutional limit.
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RESOLUTION NO. 2025 -
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY, CALIFORNIA, APPROVING A BUDGET FOR THE FISCAL YEARS 20 25/2026 AND 2026/2027.
WHEREAS, a municipal budget for the Fiscal Years 2025/2026 and 2026/2027 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 due deliberation and consideration, made such amendments in the proposed final budget as it considered desirable;
NOW, THEREFORE, BE IT RESOLVED , 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 Financ ial 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.
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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 28th day of May 2025.
___________________________
Nancy Ross, 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 28
th day of May 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracey Hermosillo, City Clerk
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xxii
RESOLUTIONS
RESOLUTION NO. 2025 –
A RESOLUTION BY THE BOARD OF THE CATHEDRAL CITY PUBLIC FINANCING AUTHORITY APPROVING A BUDGET FOR THE FISCAL YEARS 2025/2026 AND 2026/2027.
WHEREAS, a budget for the Fiscal Years 2025/2026 and 2026/2027 has been prepared by the Cathedral City Public Financing Authority’s Manager (City Manager) and Fiscal Officer ( Financial Services Director); 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 considered desirable;
NOW, THEREFORE, 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 resolution (or amending resolution). Said adjustments of the appropriations for each department or activity shall be made only upon written request to the Manager and/or the Fiscal Officer, the form of which shall be prescribed and 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 Fiscal Officer shall render a semi -annual report to the Board on the status of operational revenues and expenditures.
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xxiii
PASSED, APPROVED, AND ADOPTED this 28th day of May 2025.
___________________________
Nancy Ross, 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 28
th day of May 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracey Hermosillo, Secretary
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xxiv
RESOLUTIONS
RESOLUTION NO. SA-2025-_______
A RESOLUTION BY THE SUCCESSOR AGENCY TO THE CATHEDRAL CITY
REDEVELOPMENT AGENCY APPROVING A BUDGET FOR THE FISCAL YEARS 2025/2026 AND 2026/2027.
WHEREAS, estimates of revenue from all sources and estimates of expenditures required for the proper conduct of the activities of the Successor Agency to the Cathedral City Redevelopment Agency (Successor Agency) for the Fiscal Years 2025/2026 and 2026/2027 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, THEREFORE, 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 executed and approved, the Financ ial 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.
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xxv
PASSED, APPROVED, AND ADOPTED this 28th day of May 2025.
___________________________
Nancy Ross, 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 28
th day of May 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracey Hermosillo, Secretary
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xxvi
RESOLUTIONS
RESOLUTION NO. HSA-2025-_____
A RESOLUTION BY THE CITY OF CATHEDRAL CITY AS THE HOUSING
SUCCESSOR AGENCY APPROVING A BUDGET FOR THE FISCAL YEARS 2025/2026 AND 2026/2027.
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 2025/2026 and 2026/2027 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, THEREFORE, 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 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. 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.
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xxvii
PASSED, APPROVED, AND ADOPTED this 28th day of May 2025.
___________________________
Nancy Ross, Mayor
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 28
th day of May 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracey Hermosillo, Secretary
RESOLUTIONS
RESOLUTION NO. 2025 -
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY,
CALIFORNIA, APPROVING THE CAPITAL IMPROVEMENT PROJECT (CIP) PLAN AND THE PARKS IMPROVEMENT PROGRAM PLAN FOR FISCAL YEARS 20 26 THROUGH 2030.
WHEREAS, the City Council has received the proposed summary of approved projects for Fiscal Years 2026 through 2030; and
WHEREAS, the City Council reviewed said planned projects and conferred with the City Manager and the Financial Services Director; and
WHEREAS, the City Council desires to adopt the planned projects for the five-year period; and
NOW, THEREFORE, BE IT RESOLVED , 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 2026 through 2030, 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 2025/2026 and FY 2026/2027 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.
PASSED, APPROVED, AND ADOPTED this 28th day of May 2025.
___________________________
Nancy Ross, 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 28
th day of May 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracey Hermosillo, City Clerk
FINANCE DEPARTMENT
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
www.cathedralcity.gov