Agenda packet — Eastvale City Council, January 11, 2023 (part 3 of 3)

SECTION 6. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published in the manner prescribed by law. 621
ORDINANCE NO. 23-
PAGE 21
PASSED, APPROVED AND ORDAINED this 11 day of January 2023. ____________________________________
Todd Rigby
Mayor
APPROVED AS TO FORM: ATTEST:
__________________________________________
__________________________________________
Erica Vega Marc A. Donohue, MMC
City Attorney City Clerk/Communications Director
622
ORDINANCE NO. 23-
PAGE 22

STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE)§

CITY OF EASTVALE )

I, Marc A. Donohue, City Clerk/Communications Director of the City of Eastvale, California, do hereby certify that the foregoing Ordinance No. 23-XX, was introduced at a regular meeting of the City Council of the City of Eastvale held on the 13 of December, 2022, and was passed by the City Council of the City of Eastvale at a regular meeting held on the 11 of January, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________________
Marc A. Donohue, MMC
City Clerk/Communications Director
623
ORDINANCE NO. 23-

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EASTVALE AMENDING CHAPTER 110.07 (HISTORICAL BUILDING CODE) OF THE

EASTVALE MUNICIPAL CODE AND ADOPTING BY REFERENCE THE
2022 CALIFORNIA HISTORICAL BUILDING CODE (CALIFORNIA CODE OF REGULATIONS, TITLE 24, PART 8)
WHEREAS, Sections 17922, 17958, and 18941.5 of the California Health and Safety Code provide that the governing body of every city or county shall adopt ordinances or regulations imposing the same requirements as those contained in the most recently adopted version of the California Building Standards Code; and, WHEREAS, the City Council of the City of Eastvale is not required to make an express finding for amendments necessary to carry out the application of the Building Standards code and/or that do not otherwise modify a Building Standard.

THE CITY COUNCIL OF THE CITY OF EASTVALE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Chapter 110.07 (Historical Building Code) of the Eastvale Municipal Code is amended in its entirety to read as follows:
“CHAPTER 110.07

HISTORICAL BUILDING CODE
SECTION 110.07.010 Adoption by Reference of California Historical Building Code .

Those certain documents, one copy each, are on file in the Building and Safety Division and the Office of the City Clerk entitled " Historical Building Code”, published by the California Building Standards Commission, (California Code of Regulations, Title 24, Part 8) and everything contained therein is hereby adopted by reference, in accordance with Section 50022.2 of the Government Code, as a part of this Chapter.”
SECTION 2. CEQA. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Buildings and development projects that are subject to CEQA are reviewed individually prior to issuance of building permit.

Moreover, State law provides that the 2022 Building Codes will take effect in the City even if the City does not adopt this ordinance, as is required by law. The City Council hereby directs City staff to file a Notice of Exemption with the Clerk of Riverside County within five (5) days of the adoption of this Ordinance.

SECTION 3. That when this Ordinance takes effect, it shall not change any of the provisions of the previous codes and Ordinances or affect any offense, acts done or required to be done, penalties, forfeitures or punishments incurred, rights or liabilities accrued or claims arising out of the provisions of the previous Ordinances and amendments. Any pending actions shall not be affected by the enactment of this Ordinance. Any previous discontinuance, abatement, or liabilities of any person shall not be affected by the enactment of this Ordinance. 624
ORDINANCE NO. 23-
PAGE 2

SECTION 4: If any section, subsection, paragraph, sentence, clause or phrase of this Ordinance is declared by a court of competent jurisdiction to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this Ordinance.

The City Council declares that it would have adopted this Ordinance, and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, phrases, or portions be declared invalid or unconstitutional.

SECTION 5. Wherever there is reference to the California Historical Building Code, it shall mean the California Historical Building Code, 2022 Edition, promulgated by the California Building Standards Commission.

SECTION 6. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published in the manner prescribed by law.
625
ORDINANCE NO. 23-
PAGE 3

PASSED, APPROVED AND ORDAINED this 11 day of January 2023. __________________________________________
Todd Rigby
Mayor
APPROVED AS TO FORM: ATTEST:
__________________________________________ __________________________________________ Erica Vega Marc A. Donohue, MMC
City Attorney City Clerk/Communications Director
626
ORDINANCE NO. 23-
PAGE 4

STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) §

CITY OF EASTVALE )

I, Marc A. Donohue, City Clerk/Communications Director of the City of Eastvale, California, do hereby certify that the foregoing Ordinance No. 23-XX, was introduced at a regular meeting of the City Council of the City of Eastvale held on the 14 of December 2022, and was passed by the City Council of the City of Eastvale at a regular meeting held on the 11 of January 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________________
Marc A. Donohue, MMC
City Clerk/Communications Director
627

AGENDA STAFF REPORT

City Council Meeting

CITY COUNCIL BUSINESS

Agenda Item No. 13.1
January 11, 2023
Annual Comprehensive Financial Report (ACFR) and Related Letters and Reports for the Fiscal Year Ended June 30, 2022 Prepared By:

Amanda Wells, Finance Director/City Treasurer
Recommended Action(s)
Staﬀ recommends that the City Council receive and ﬁle the Annual Comprehensive Financial Report and accompanying letters and reports the for fiscal year ended June 30, 2022

Summary
In order to meet guidelines set forth in the Government Accoun'ng Standards Board (GASB) statement number 34, the City enters into contracts with audi'ng ﬁrms in order to perform annual audits and compile the City’s Annual Comprehensive Financial Report (ACFR). The audit process typically begins in July and concludes in December with the prepara'on of the ﬁnancial statements.

The audit helps to iden'fy whether signiﬁcant ma0ers exist that should be addressed by the City in order to strengthen internal controls and ensure accuracy in financial reporting.

Background
The City’s independent auditor, Gruber and Lopez, Inc., have completed their annual audit of the City’s general ledger for the ﬁscal year ending June 30, 2022. The services provided for this audit fulﬁll the ﬁrst year of a three-year contract. The City’s annual ﬁnancial statements were prepared by the audit ﬁrm in accordance with Generally Accepted Accoun'ng Principles (GAAP), Government Accoun'ng Standards, and comply with other rules and regula'ons applicable to government entities.

At the conclusion of the audit test work, the audit ﬁrm issues an opinion as to the fairness of presentation of the financial position of City activities. The City received an unmodified opinion from 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
eastvaleca.gov
628
the independent auditors. An unmodiﬁed opinion is an independent auditor’s judgement that a company or organiza'on’s ﬁnancial records and statements are fairly and appropriately presented and in accordance with GAAP. In addi'on, the audit ﬁrm is required to issue reports related to internal controls and communicate with the Council regarding how the audit was planned and conducted. All reports and letters are attached.

The ACFR consists of three parts, Management’s Discussion and Analysis (MDA), the basic ﬁnancial statements, and required supplementary informa'on. The MDA serves as an introduc'on to the basic ﬁnancial statements. The basic ﬁnancial statements include three components: the government-wide ﬁnancials statements, the fund ﬁnancials statements, and notes to the ﬁnancial statements. The required supplementary informa'on provides addi'onal ﬁnancial informa'on regarding the City not provided in the basic ﬁnancial statements. The City prepares the Transmi0al Letter and Management Discussion and Analysis and the City’s audit firm prepares the basic financial statements and compiles the final ACFR document.

Environmental
Government ﬁnancial statements are not considered a Project as deﬁned by the California Environmental Quality Act (CEQA) and no environmental review is required.

Strategic Plan Action - Priority Level: N/A
| Target #: N/A
| Goal #: N/A
Not applicable.

Fiscal Impact
There is no ﬁscal impact associated with this report. Costs associated with the annual audit were included in the fiscal year 2022-23 adopted budget.

Prior City Council/Commission Action
Not applicable.

Attachment(s)
A0achment 1 - Independent Accountant's Report on Agreed Upon Procedures Applied to Appropriations Limit Worksheet
Attachment 2 - Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2022

12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
951.361.0900 |
eastvaleca.gov
629
438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com

Honorable Mayor and City Council
City of Eastvale
Eastvale, California

Independent Accountants’ Report on Applying Agreed-Upon Procedures Appropriations Limit Worksheets

We have performed the procedures enumerated below on the appropriations limit calculation worksheets of the City of Eastvale, California (City) for the year ended June 30, 2022. The City’s management is responsible for the app ropriations limit calculation worksheets.

The City has agreed to and acknowledged that the procedures per formed are appropriate for the intended purpose of meeting the requirement s of Section 1.5 of Article XIIIB of the California Constitution (Constitution) and the League of California Cities as present ed in the League publication entitl ed Article XIIIB Appropriations Limitation Uniform Guidelines (Guidelines). This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a use r of this report and may not meet the needs of all users of this report and, as such , users are res ponsible for de termining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

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

Results: No exceptions were not ed as a result of our procedures , however, since the tax proceeds subject to the appropriations l imit exceeded the limit for the 2
nd consecutive year the City may want to
ensure that they are in complianc e with the Guidelines regardin g the overage.

2. We recalculated the mathemat ical computations reflected in the City worksheets.

Results: No exceptions were noted as a result of our procedures. 630

City Council
City of Eastvale, California
Page Two

3. We compared the current year i nformation used to determine t he current year limit and found that it agreed to worksheets prepa red by the City and to information provided by the State Department of Finance.

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

4. We compared the amount of the prior year appropriations limi t presented in the worksheets to t he amount adopted by the City Council for the prior year.

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

We were engaged by the City to p erform this agreed-upon procedu res engagement and conducted our engagement in accordance with atte station standards established by the Amer ican Institute of Certified Pu blic Accountants.

We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on meeting the requirements of the Constitution and Guidelines. Accordingly, we do not express such an opinion or c onclusion. Had we performed additional procedures, other matters might have co me to our attention that would have been reported to you.

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

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

Gruber and Lopez, Inc.

Newport Beach, California
December 12, 2022
Gruber and lopez, Inc.
631

EASTVALE

CALIFORNIA

CITY OF

COMPREHENSIVE ANNUAL

FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2022
632

City of Eastvale
Eastvale, California

Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2022

Prepared by the
Department of Finance and Administration

633

City of Eastvale
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022

Table of Contents

Page

INTRODUCTORY SECTION (UNAUDITED)

Letter of Transmittal ............................................................................................................................................................... i Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association ................................................................................................................. v Principal Officials of the City of Eastvale ....................................................................................................................... vi Organizational Chart ......................................................................................................................................................... vii

FINANCIAL SECTION

Independent Auditors’ Report on Financial Statements ..................................................................................................... 1

Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ................................ 4

Basic Financial Statements:

Government – Wide Financial Statements:

Statement of Net Position ............................................................................................................................................... 20 Statement of Activities ................................................................................................................................................... 22

Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ............................................................................................................................................................ 26 Reconciliation of the Governmental Funds Balance Sheet
to the Government–Wide Statement of Net Position ................................................................................... 27 Statement of Revenues, Expenditures,
and Changes in Fund Balances ....................................................................................................................... 28 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government–Wide Statement of Activities ..................................................................................................................................... 29

Notes to the Basic Financial Statements ......................................................................................................................... 30

Required Supplementary Information (Unaudited):

Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios ............................................ 59 Schedule of City’s Contributions – Pensions ............................................................................................................................ 60 Schedule of Changes in Net OPEB Liability (Asset) and Related Ratios ............................................................................. 61 Schedule of the Plan Contributions – OPEB Plan .................................................................................................................... 62 Budgetary Comparison Schedule – General Fund .................................................................................................................... 63 Notes to the Required Supplementary Info ................................................................................................................................ 64

634

City of Eastvale
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022

Table of Contents (Continued)

Page
FINANCIAL SECTION (Continued)
Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................................ 67 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 71 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Nonmajor Special Revenue Funds:

Gas Tax Fund.................................................................................................................................................... 75 American Rescue Plan Grant Fund ............................................................................................................... 76 Measure A Fund ............................................................................................................................................... 77 AQMD Trust Fund ........................................................................................................................................... 78 Supplemental Law Enforcement Services Fund .......................................................................................... 79 Lighting and Landscape Maintenance Fund ................................................................................................ 80 Benefit Assessment Fund ................................................................................................................................ 81 Road and Bridge Benefit District Fund ........................................................................................................ 82 Community Development Block Grant Fund .............................................................................................. 83 Miscellaneous Grants Fund ............................................................................................................................ 84 Development Impact Fees Fund .................................................................................................................... 85 PEG Grant Fund ............................................................................................................................................... 86 TUMF Reimbursement Fund ......................................................................................................................... 87 Area Drainage Plan Fund ................................................................................................................................ 88 TDA Fund ......................................................................................................................................................... 89 Nonmajor Capital Project Fund:

Capital Projects Fund ...................................................................................................................................... 90 STATISTICAL SECTION (Unaudited)
Net Position by Component ........................................................................................................................................................ 93 Changes in Net Position............................................................................................................................................................... 95 Fund Balances of Governmental Funds .................................................................................................................................... 97 Changes in Fund Balances of Governmental Funds ................................................................................................................ 99 Assessed Value and Estimated Actual Value of Taxable Property ...................................................................................... 101 Direct and Overlapping Property Tax Rates ............................................................................................................................ 103 Principal Property Taxpayers ..................................................................................................................................................... 104 Property Tax Levies and Collections ........................................................................................................................................ 105 Ratios of Outstanding Debt by Type ........................................................................................................................................ 106 Ratios of General Bonded Debt Outstanding .......................................................................................................................... 107 Direct and Overlapping Bonded Debt ...................................................................................................................................... 108 Legal Debt Margin Information ................................................................................................................................................ 109 Pledged Revenue Coverage ........................................................................................................................................................ 110 Demographic and Economic Statistics ..................................................................................................................................... 111 Principal Employers .................................................................................................................................................................... 112 Governmental Activities Tax Revenues by Source ................................................................................................................ 113 Taxable Sales by Category ......................................................................................................................................................... 114 Full-time City Employees by Function .................................................................................................................................... 115 Operating Indicators by Function .............................................................................................................................................. 116 Capital Asset Statistics by Function ......................................................................................................................................... 118 635

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INTRODUCTION

SECTION
637

December 21, 2022

Honorable Mayor, Council Members and Residents of the City of Eastvale,

I am pleased to present the 2021-22 Annual Comprehensive Financial Report (ACFR) for the City of Eastvale, California for the fiscal year ended June 30, 2022. State Law requires the City to prepare an annual financial report. This report fulfills that obligation. T he City’s independent audit firm in conjunction with staff prepared the report in conformity with generally accepted accounting principles (GAAP) and with the financial reporting requirements prescribed by the Governmental Accounting Standards Board (GASB).

The ACRR is intended to provide relevant financial information to residents of the City of Eastvale, City staff, creditors, investors, businesses, and other concerned readers. This letter of transmittal is designed to complement the Management Discussion and Analysis (MD&A) and should b e read in conjunction with it. The City of Eastvale's MD&A can be found immediately following the report of the independent auditors in the financial section of the ACFR . We encourage all readers to contact the Finance Department with any questions or comments regarding this report.

Purpose and Management Responsibility
The ACFR consists of management representations concerning the finances of the City of Eastvale in its eleventh year of incorporation. Consequently, management assumes full responsibility for the completeness and reliability of all information presented in this report. To provide a reasonable basis for making these representations, management of the City of Eastvale continues to establish a comprehensive internal control framework that is des igned both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Eastvale's financial statements in conformity with generally accepted accounting principles (GAAP). The cost of internal controls should not outweigh their benefits, therefore the City of Eastvale's comprehensive framework of internal controls is designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Audited Financial Statements
The City of Eastvale's financial statements have been audited by Gruber and Lopez, Inc ., a firm of certified public accountants and consultants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Eastvale for the fiscal year ended June 30, 2022, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor's report is presented as the first component of the financial section of the ACFR . GAAP requires that management provide a narrative of introductions, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A).

Todd Rigby
Mayor

Christian Dinco
Mayor Pro Tem

Jocelyn Yow
Council Member

Clint Lorimore
Council Member

Michael McMinn
Council Member

Mark Orme
City Manager

638
ii

Profile of the Government
Eastvale is a young and dynamic community in Western Riverside County. Eastvale is the most northwest City in Riverside County and is surrounded by the Cities of Chino and Ontario in San Bernardino County on the west and north and the Riverside County Cities of Jurupa Valley, Norco, and Corona on the east and south. Eastvale was incorporated on October 1, 2010, as a Gene ral Law city . The California Department of Finance lists the city’s population as 69,929 as of January 2022. The city operates under a Council/Manager form of government and has a five -member City Council comprised of members elected by district. Each Council Member is elected for four years with staggered terms. The Council selects one of its members in December of each year to serve as Mayor and another to serve as Mayor Pro Tem.

The Council is responsible for enacting ordinances, resolutions, and regulations governing the City, as well as the appointment of members of various statutory and advisory boards, in addition to the City Manager and City Attorney. As Chief Administrative Officer, the City Manager has the responsibility of administering programs in accordance with policies established by the City Council and within the guidelines of the annual budget adopted by the Council.

The ACFR includes all funds of the City. It includes all governmental organizations and activities for which the City of Eastvale's City Council is financially accountable. The city provides a wide range of services including City Clerk, Communications, Planning, Building, Public Works, Engineering, Community Enhancement and Safety , and internal administrative services including Finance Human Resources/Risk Management. Animal control, library, and public safety (fire and police) services are provided to the City and its residents through contracts with the County of Riverside. Other services are provided directly through other agencies, water and sewer through the Jurupa Community Services Dist rict, parks and recreation through the Jurupa Community Services District and Jurupa Area Recreation and Parks District, and public transit through the Riverside Transit Agency . The city has franchise agreements for electricity service through Southern California Edison, natural gas through SoCalGas, refuse collection through Waste Management and cable service through state franchise agreements with Pacific Bell (AT&T), Time Warner, and Charter Communications.

The Budget Process & Relevant Financial Policies
Beginning at incorporation, and continuing each year thereafter, the city embarks on budget planning process which begins in late winter / early spring with a discussion of the City Council goals and priorities and ends with the adoption of the budget prior to July 1st. On March 24, 2021, the Council adopted the City of Eastvale Strategic Plan and Priority Goals.

The adopted Strategic Plan includes seven targets: Organizational Development , Economic Development, Financial Planning, Public Safety, Infrastructure, Inclusion, and Innovation and Technology. With these seven targets driving the future of the City, the City Council established “priority” goals to provide short- and long-term goals for the community.

The fiscal year 2021-22 budget was the third budget to be aligned with the city’s Strategic Plan goals and priorities. The annual budget serves as the foundation for the City of Eastvale's financial planning and control. The development of the budget is completed as two separate projects: the development of the governmental activities operating budget, and the development of the capital improvement program (CIP) focusing on short and long-term capital projects.

The City abides by a set of financial policies and staff continually enhances and adds relevant policies as formal financial systems are developed. As of June 30, 2022, the City had $73.5 million in committed reserves set aside for future Civic Center, public safety contract rate stabilization, pension liability , and CIP projects . In addition, the city maintains two assigned reserves: General Fund emergency contingency of $14.0 million and Fire Fund emergency contingency of $4.8 million. These contingency reserves are assigned reserves, set by policy, at 50% and 75% respectively of the operating budget for the fiscal year.

Local Economy
The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the City of Eastvale operates. The City of Eastvale is in its twel fth year of incorporation . The city developed in a significantly different fashion in comparison to older cities ; residential properties developed throughout the city before a downtown commercial center was developed. S everal development projects are underway, including the Goodman Commerce Center at Hamner and Cantu Galleano, Hamner Place on Hamner Avenue and Schleisman, and three new developments at Archibald and Limonite, the Merge, the Campus, and the Ranch. A ll will add significant commercial, residential, and retail growth . The deve lopment of the 160-acre Leal property at Hamner and Limonite A venues is underway and will host the Civic Center and downtown commercial retail. 639
iii

These new developments will bring a mix of commercial retail and industrial to the city and attract new businesses and restaurants.

Economic Development has continued to make strides in the city, in 2021 -22 the city experienced a stream of new development, both in the entitlement process and construction. Commercial Retail centers such as Hamner Place, The Merge, and Goodman Commerce Center all had new businesses open during the fiscal year. The city anticipates receiving its first Transient Occupancy Tax revenue starting in 2023 in addition to the final $4.0 million Waste Hauler Retention Fee, which is allocated for the new Police Station construction.

Sales tax continues to be the largest source of revenue for the general fund. Recently, a local business changed business structure; as a result, county pool sales tax revenue was reallocated to host cities . This significantly boosted sales tax revenues and staff expects the increased revenues to continue for the next several fiscal years; although the amount may decrease as post pandemic spending habits return to “normal.” The City Council committed the budget surplus for the future Civic Center project. The city expects positive revenue generation to continue in the General Fund as pandemic impacts to revenue pools begin to fade. A specific property tax levied for the fire services is the only source of revenue for the fire fund and continues to be a concern regarding the city’s future ability to fund fire services without a General Fund subsidy. Additional details regarding the City’s revenues can be found in the Management Discussion and Analysis.

Current Year and Future Initiatives
For fiscal year 2021 -22, major budget initiatives focused on increasing staffing levels by converting contracted services such as Building Safety, Planning, and Engineering to in-house services. In addition, the city increased law enforcement services via contract with Riverside County Sheriff. The city increased daily patrol hours by 8 hours per day and added two additional dedicated motor deputies. In addition, the city utilized over $ 6.4 million of non -operating General Fund revenues to pay off the city’ s lease purchase agreement for streetlights ($3.8 million) and a developer agreement with Tarpon Properties for Goodman Commerce Center public infrastructure built by the developer ($2.6 million).

Major CIP projects for the 2022-23 fiscal year include the Civic Center project ($3.1 million) and the Limonite Gap Bridge project ($24.0 million). Staff began the Civic Center infrastructure planning process and construction is expected to begin sometime in fiscal year 2023-24. The project includes City Hall, Library, Police Station, Fire Station, open space, parks, and other public infrastructure. Additionally, the Limonite Gap Bridge project over Cucamonga Creek is expected to begin in Summer 2023 and will allow easier access from the City of Chino into Eastvale, possibly boosting sales tax revenue. The 2022-23 budget also included funding four new capital replacement reserves to mitigate future maintenance costs and strain to the General Fund operating budget. The new reserve funds include information technology capital replacement, fleet capital replacement, street maintenance, and facility maintenance.

Long-Range Financial Planning and Initiatives
The city will continue to focus its emphasis on strategic investments and fiscally balanced growth. The City is in the process of obtaining a Financial Advisor to assist with financial planning for the Civic Center infrastructure project. Staff continues to update the long-range forecasting model with scenarios for funding the infrastructure project. Additionally, a comprehensive user fee study is underway , which will replace the current 2013 study . The City believes that with the appropriate policies in place, as approved and revisited each year as part of the budget program and Strategic Plan, the city's long -range financial goals will be met. The City has taken many steps to preserve the c ity’s fi nancial integrity, maintain critical service levels, and sustain fund balance and strategic reserves to support the city into the coming years.

Central to the city’s long-range financial planning is the City’s Strategic Plan, which is annually incorporated into the budget process, culminating in an adopted budget each year by July 1st.

Long-Term Liabilities
As of June 30, 2022, the city only has a few types of long- term liabilities. They include employee accrued leave, capital leases, and retirement benefits including CalPERS pension and other post-employment benefits (OPEB). The city provides retirement pension benefits to employees through the California Public Employee Retirement System (CalPERS). The city pays 100% of the required employer contributions and employees are responsible for paying employee contributions .

Annually, the city pays off the unfunded accrued liability . As of June 30, 2021, the city’s two plans are fully funded at 107.6% for classic and 108.8% for PEPRA.
640
iv

The city provides postemployment health care benefits through the CalPERS healthcare program, Public Employees’ Medical and Welfare Trust Medical Plan (PEMHCA). The city has elected to join the CalPERS OPEB Trust in accordance with GASB No. 75, which provides a means to fund future retiree healthcare costs . The independently prepared actuarial valuation for the city’s OPEB determined that the trust is funded at 133.6% as of June 30, 2022.

Additional details regarding the City’s long -term liabilities can be found in the MD&A and Note 7 of the financial statements.

Risk Management
General liability and workers compensation are housed within the city’s General Fund. The city is a member of the Public Entity Risk Management Authority (PERMA) for general liability insurance. PERMA is a joint powers authority that was established to pool resources, share risks, purchase excess insurance, and share costs for professional risk management and claims administ ration. PERMA is a member of California State Association of Counties (CSAC) Excess Insurance Authority for excess liability coverage. The city is a member of the State Compensation Insurance Fund for workers compensation. Established in 1914 by the state legislature, the State Fund is a California specific provider of workers’ compensation insurance.

Awards and Acknowledgments
Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Eastvale for its annual comprehensive financial report for the fiscal year ended June 30, 2021 . This was the 10th consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate.

The preparation and publication of this report could not have been accomplished without the efficient and dedicated service of the Finance Department . Appreciation is also extended to each city department for their contributions to planning and conducting the fiscal functions of the city through the commitment of all city employees . Commendations to the Mayor and City Council for their vision, direction, and support toward achieving and maintaining the highest standards for the management of the City of Eastvale’s finances.

The City, in its eleventh year of incorporation, has achieved a great deal in transitioning from County support services and establishing its own culture and approach to local governance. This eleventh year provided the city the opportunity to continue the implementation of its long- range oriented policies and procedures. Building on these experiences, the forthcoming twelfth year of operation is poised to continue to refine and enhance these activities, which will provide the needed foundation for future successful operations and service delivery consistent with our Strategic Plan goals and priorities.

Respectfully submitted,

Amanda Wells
Finance Director / City Treasurer
641
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Eastvale
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
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vi

CITY OF EASTVALE, CALIFORNIA

LIST OF PRINCIPAL OFFICIALS
JUNE 30, 2022

CITY COUNCIL

CLINT LORIMORE
Mayor

TODD RIGBY
Mayor Pro Tempore

CHRISTIAN DINCO, Councilmember
BRANDON PLOTT, Councilmember
JOCELYN YOW, Councilmember

CITY ADMINISTRATION

HENRY GARCIA
Interim City Manager

ERICA VEGA
City Attorney

AMANDA WELLS, Finance Director/City Treasurer

643

vii

Finance
Department
 Finance Director/City Treasurer
o Finance Manager
 Senior Accountant
 Accountant
 Senior Accounting
Technician
 Accounting Technician (2)
 Intern
City Manager
 City Manager
o Economic Development
Manager
o Management Analyst
o Executive Assistant
City Clerk & CommunicaƟons
Department
 City Clerk/Communications
Director
o Assistant City Clerk
 Deputy City Clerk
 Administrative Specialist
o Communications Officer
 Intern
o Community Services Manager
 Community Services
Coordinator (2)
Community Development
Department
 Community Development/Public
Works Director
 Senior Management
Analyst
 Administrative Specialist
 Intern
o City Engineer
 Principal Engineer
 Senior Engineer
 Associate Engineer
 Assistant Engineer
 Management Analyst
 Landscape & Facilities
Superintendent
o Planning Manager
 Senior Planner
 Assistant Planner
 Planning Technician
Community Safety Department
 Community Safety Director
 Environmental Compliance
Analyst
 Emergency Management
Specialist
 Intern
o Building Official
 Senior Building Inspector
 Building Inspector II
 Building Inspector I
 Senior Permit Technician
 Permit Technician
 Permit Specialist
o Community Enhancement &
Safety Manager
 Senior CES Officer
 CES Officer (3)
 Administrative Specialist
Human Resources
 Deputy Human Resources/Risk
Management Director
o Human Resources & Risk
Management Analyst
 Payroll Coordinator
 Human Resources
Specialist
 Intern
644

FINANCIAL

SECTION
645
1 To the Honorable Mayor and Members of the City Council of the City of Eastvale
Eastvale, California

Independent Auditors’ Report
Opinions

We have audited the accompanying financial statements of the go vernmental activities, each major fund, and the aggregate remaining fund information of the City of Eastvale, C alifornia, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collec tively comprise the City of Eastvale, California’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and t he aggregate remaining fund information of the City of Eastvale, California, as of June 30, 2022, and the respective c hanges in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter

As described in Note 1 to the basic financial statements, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 89, 90, 93, and 97. Our opinion is not modified with respect to this matter.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Eastvale, California, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presenta tion of the financial statements in accordance with accounting principles generally accepted in the United States o f America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statem ents, management is required t o evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Eastvale, California’s ability to continue as a going concern for twelve months beyond the financial statemen t date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to is sue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstateme nt resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentiona l omissions, misrepresentations, or the override of internal control. Misstatements are considered material if ther e is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 – www.gruberlopezinc.com
646
To the Honorable Mayor and Members of the City Council
of the City of Eastvale
Eastvale, California Page 2
2 In performing an audit in accordance with generally accepted auditing standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.

 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those ris ks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

 Obtain an understanding of interna l control relevant to the aud it in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of ex pressing an opinion on the effectiveness of the City of Eastvale, California’s internal control. Accordingly, no such opinion is expressed.

 Evaluate the appropriateness of accounting policies used and th e reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

 Conclude whether, in our judgment, there are conditions or even ts, considered in the aggregate, that raise substantial doubt about the City of Eastvale, California’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governan ce regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States o f America require that the management’s discussion and analysis and budgetary compa rison information be presented to supplement the basic fina ncial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers i t to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and othe r knowledge we obtained during ou r audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Eastvale, California’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.

Such information is the respons ibility of management and was de rived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the unde rlying accounting and other records used to prepare the basic financial statements or to the basic financial statem ents themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financ ial statements are fairly st ated, in all material respects, in relation to the basic financial statements as a whole.

647
To the Honorable Mayor and Members of the City Council
of the City of Eastvale
Eastvale, California Page 3
3 Other Information
Management is responsible for t he other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inc onsistency exists between the ot her information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing S tandards, we have also issued our report dated December 20, 2022, on our consideration of the City of Eastvale, California’s internal co ntrol over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describ e the scope of ou r testing o f internal con trol over financial reporting an d compliance and the results of that testing, and not to pro vide an opinion on the effectiveness of the City of Eastvale, California’s internal control o ver financial reporting or on co mpliance. That report is an integ ral part of an audit performed in accordan ce with Government Auditin g Standards in consid ering the City of Eastvale, California’s internal control over financial reporting and compliance.

GRUBER AND LOPEZ, INC.

Newport Beach, California
December 20, 2022
Gruber and lopez, Inc.
648
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

4 Management’s
Discussion and Analysis

As management of the City of Eastvale, California (City), we ar e pleased to offer to the readers of the City’s financial statements this narrative overview and analysi s of the financial activities of the City for the year ended June 30, 2022. The Management’s Discussion and A nalysis is designed to focus on the current year’s activities, resulting changes, and currently known facts. As a result, we encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the Letter of Transmittal, which can be found in the introductory section of this report, and with the City’s Basic Financial Statements, which follow this discussion.

FINANCIAL HIGHLIGHTS

When revenues exceed expenses, the result is an increase in net position. When expenses exceed revenues, the result is a decrease in net position. The relationship between the revenues and expenses can be thought of as the City’s operating results. The City’s net position, as measured in the Statement o f N e t P o s i t i o n , i s o n e w a y t o m e a s u r e t h e C i t y ’ s f i n a n c i a l h e alth, or financial position. Over time, increases or decreases in the City’s net position, as measured in the Statement of Activities, are another indicator of whether the City’s financial health is improving o r deteriorating. However, it is the City’s goal to provide services that improve the quality of life of the residents, not to generate profits.

For the aforementioned reason, readers need to consider many other non‐financial factors, such as the condition of roads and public safety service levels in assessing the overall health of the City.  The assets of the City plus deferred outflows of resources exceeded its liabilities plus deferred inflows of resources at the end of fiscal year 2022 by $386,374,627. The difference between assets, liabilities, and deferred outflow/inflow of resources is referred to as net position. This is a $41,071,112 increase from the prior year. The increase is mostly attributed to an in crease in assets including cash, which saw a total increase of $35,924,60 3 from the prior year. Cash i ncreased mainly due to a large and continuous growth in sales tax. Liabilities also decreased $6,3 64,442 over the prior year, attributed to the recognition of Unearned Revenue of $3,680,110 from American Rescue Plan Act (ARPA), State and Local Fiscal Recovery Funds ( SLFRF) as well as the payment in full of the outstanding balance of $4,206,301 for the loan to finance the acquisition of streetlights.  As of June 30, 2022, the city’s governmental funds reported com bined fund balances of $135,003,741, a $38,192,166 increase in comparison to the prior year. Approximately 12 percent, or $16,108,156 of the total amount of the governmental funds’ fund balances are unassigned.  As of June 30, 2022, unassigned fund balance for the General Fu nd was $16,868,609 or 14 percent of total General Fund balance.
649
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

5  The General Fund balance increased during the year by $35,464,7 30. This excess of revenues over expenditures is primarily due to a significant increase in sales tax revenue due to unforeseen changes in sales tax reporting.

OVERVIEW OF THE FINANCIAL STATEMENTS

T h e C i t y i s r e q u i r e d t o p r e s e n t i t s f i n a n c i a l statements in accordance with Generally Accepted
Accounting Principles (GAAP) as promulgated by the
Government Accounting Standards Board (GASB)
pronouncements. This annual report consists of
three parts, Management’s Discussion and Analysis
(this section), the basic financial statements, and required supplementary information. This
discussion and analysis is intended to serve as an introduction to the City of Eastvale’s basic financial
statements. The City’s basic financial statements are
comprised of three components: 1) government‐
wide financial statements, 2) fund financial
statements, and 3) notes to the financial statement.

This report also contains other supplementary
information in addition to the basic financial
statements themselves.

Government‐wide financial statements: T h e government‐wide financial statements a r e d e s i g n e d t o provide readers with a broad overview of the City’s finances, i n a manner that is similar to a private‐ sector business.

Government‐wide financial statements include a statement of net position and a statement of activities.

The statement of net position presents information on all of th e City’s assets, liabilities, and deferred outflow/inflow of resources with the difference reported as net position. Over time, increases or decreases may provide a useful i ndicator on whether the financi al position of the City is improving or deteriorating.

The statement of activities provides information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event causing the change occurs, regardless of the timing of related cash flow s . U n d e r t h i s b a s i s o f a c c o u n t i n g , revenues and expenses are reported in the statement for some items that will only result in future cash inflows or outflows such as vacation earned but not paid and uncollected taxes.

Both government‐wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (government a ctivities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business‐ type activities). The governmental activities of the city include general government, public safety, economic development, building and planning, animal control, and public works. The city does not have any business‐type activities.

Management’s
Discussion and
Analysis
Components of the City of Eastvale’s Annual
Financial Report
Basic Financial
Statements
Required
Supplementary
Information
Fund Financial
Statements
Notes to the
Financial
Statements
Summary Detail Government‐
Wide Financial
Statements
650
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

6 The government‐wide financial statements can be found in the Ta ble of Contents under the heading Basic Financial Statements.

Fund financial statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund acco unting to ensure and demonstra te compliance with finance‐related legal requirements. The funds of the City can be divided into t wo categories: governmental funds and fiduciary funds.

Governmental funds: Governmental funds a r e u s e d t o a c c o u n t f o r e s s e n t i a l l y t h e s a m e f u n c t i o n s reported as governmental activities in the government‐wide financial statements. However, unlike government‐wide financial statements, governmental fund financial statements focus on near‐term inflows and outflows of spendable resources, as well as on balances of non‐spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near‐term financing requirements.

Because the focus of governmental funds is narrower than that of the government‐wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government‐wide financial statements. By doing so, readers may better unde rstand the long‐term impact of the City’s near‐term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains seventeen individual governmental funds for financial reporting purposes.

Information is presented separately in the governmental fund ba lance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance for the General Fund and Capital Projects Fund, which are considered to be major funds. Data fro m the remaining governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual appropriated budget for its general fund, special revenue funds, debt service fund, and capital projects fund. A budgetary comparison stateme nt has been provided for the General Fund to demonstrate compliance with this budget.

The governmental fund financial statements can be found in the Table of Contents under the heading Basic Financial Statements.

Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the City. As of fiscal year 2022, Fiduciary funds are now included in the government‐wide financial statements. It is important to note that the resources of those funds are not available to support the City’s own programs.

The basic fiduciary fund financia l statements can be found in t he Table of Contents under the heading Basic Financial Statements.

Notes to the basic financial statements: The notes to the basic financial statements provide additional information that is essential for a full understanding of the d ata provided in the government‐wide and fund financial statements. The notes to the basic financial statements can be found in the Table of Contents under the heading Notes to the Financial Statements. 651
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

7 Other supplementary information: In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information ( R S I ) , a b o u t t h e C i t y ’ s General Fund and other funds budgetary comparison in addition to the Schedule of Proportionate Share of the Net Pension Liability, Schedules of Contributions – CalPERS Pension Plan for the pension plan, and Schedule of Changes in Net OPEB Liability and Related Ratios and Schedule of Contributions ‐ OPEB. The combining statements referred to earlier in connection with non major governmental funds are presented for all non‐major Spec ial Revenue Funds, Debt, and Ca pital Projects Funds. The supplementary financial informati on also includes budgetary com parison schedules for the nonmajor governmental funds to demonstrate compliance with the annual budget as adopted and amended. The Required Supplementary Information can be found following the Notes to Financial Statements.

The combining statements for nonmajor governmental funds and th e budgetary comparison schedules for the nonmajor funds can be found following the Required Supplementary Information.

FINANCIAL ANALYSIS OF THE GOVERNMENT‐WIDE STATEMENTS
REPORTING THE CITY AS A WHOLE

The government‐wide financial sta t e m e n t s p r o v i d e l o n g ‐ t e r m a n d short‐term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole.

For the fiscal year ended June 30, 2022, City assets plus deferred outflows of resources exceeded liabilities plus deferred inflows of resources by $386,375,901 as summarized below:

City of Eastvale
Summary of Net Position
For the Year Ended June 30, 2022
Governmental Activities
2022 2021
Assets:

Current and Other Assets $ 147,347,793 $ 110,895,040 Capital Assets (net of depreciation) 251,591,288 253,385,597 Total Assets 398,939,081 364,280,637

Deferred Outflows of Resources 760,503 438,440

Liabilities:

Current and Other Liabilities 11,837,962 13,917,694
Long‐Term Liabilities 580,084 4,864,794
Total Liabilities 12, 418,046 18,782,488

Deferred Inflows of Resources 906,911 637,074

Net Position:

Net Investment in Capital Assets 250,344,779 248,212,800 Restricted 39,662,199 35,396,152
Unrestricted 96,367,649 61,690,563
Total Net Position $ 386,374,627 $ 345,299,515

652
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

8 Assets
Total assets increased $34,658,444 primarily due to an increase in cash. The city experienced an increase in cash and investments of $35,924,603 due to a significant inc rease in sales tax revenue. The city also experienced a $1,794,309 decrease in Capital Assets due to a decrease in the amount of developer donated infrastructure as compared to the prior fiscal year. All other assets remained relatively the same year over year.

Deferred Outflows of Resources
Deferred outflows of resources increased $322,063 as a result o f an increase in pension related items and other post‐employment benefit (OPEB) related items.

Liabilities
Total liabilities decreased by $6,364,442 mainly due to the payment in full of the outstanding loan payable of $4,206,301. The loan was used to purchase streetlights in 2018. Liabilities also decreased due to the recognition of $3,680,110 of ARPA SLFRF funds that were previous booked as Unearned Revenue.

Deferred Inflows of Resources
Deferred inflows of resources increased $269,837 mainly due to an increase of $247,656 for pension related items.

Net Position
Net investment in capital assets represents 65 percent of the City’s net position. The majority of capital assets are streets and other infrastructure; consequently, these a s s e t s a r e n o t l i q u i d o r a v a i l a b l e f o r future spending. An additional portion of the City’s net posit ion, $39,662,199 (ten percent) represents resources that are subject to restrictions on how they may be u sed, this category increased $4,266,047 mainly due to new Lighting and La ndscape Maintenance Districts and future planned capital improvements. The remaining balance, unrestricted net position, is $96,367,649.

Statement of Activities: The statement of activities shows how the City’s net position changed during the fiscal year 2021‐22. Provided below is a summary of changes in net position.

City of Eastvale
Summary of Changes in Net Position
For the Year Ended June 30, 2022
Governmental Activities
2022 2021
Revenues:

Program Revenues:

Charges for Services $ 11,414,639 11,948,109
Operating Grants and Contributions 12,196,305 5,920,951 Capital Grants and Contributions 9,480,133 9,191,317
General Revenues: 56,441,364 43,035,455
Total Revenues 89,532,441 70,095,832
Expenses:

General Government 9,988,607 10,401,136
Public Safety 17,842,676 16,394,714
Public Works 13,723,460 7,715,272
Community Development 5,229,139 4,117,452
Revenue Neutrality 524,455 504,864
Interest on Long‐term Debt 305,680 237,899
Total Expenses 47,614,017 39,371,337
653
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

9 Increase in Net Position: 41,918,424 30,724,495
Net Position, Beginning, as restated 344,456,203 313,711,272 Net Position, Ending $ 386,374,627 345,299,515

Revenue Highlights

The City’s total revenues were $89,532,441 while the total cost o f a l l p r o g r a m s a n d s e r v i c e s w a s $47,614,017. Total revenues incr eased $19,436,609 from the prio r year. The net increase was due to several factors:
 Charges for services decreased by $533,470. The decrease is mainly due to a decrease of permit fees from the Building & Safety department.
 Operating grants and contributions increased by $6,275,354. The i n c r e a s e i n t h e c u r r e n t y e a r i s primarily due to the recognition of revenue in the amount $7,36 0,219 of ARPA funds. ARPA funds were one time funds and were used to offset public safety expenditures.  Capital grants and contributions increased by $288,816 over the prior year. This increase in capital assets was due to an increase in development impact fees.  General revenues increased by $13,405,909 in 2021‐2022. The main contributing factor to the increase in general revenues was a change in sales tax reporting by a large fulfillment center located in the city. As a result, the city received $16,590,228 more in sales tax over the prior year. Fiscal year 2021‐2022 was the first fiscal year that the City recorded a fu ll year of sales tax revenue under the changes in sales tax reporting, fiscal year 2020‐2021 only cont ained a partial year of the new sales tax reporting. Counteracting the s i g n i f i c a n t i n c r e a s e s i n s a l es tax, franchise tax decreased by $3,965,667 due to the absence of the one‐time waste hauler retention fee of $4,000,000 from Waste Management. The City saw modest gains in the categories of prop erty tax and motor vehicle in lieu tax with respective gains of $153,944 and $279,097.

0 10,000
20,000
30,000
40,000
50,000
60,000
Charges for Services Operating Grants and
Contributions
Capital Grants and
Contributions
General Revenues
Thousands
Revenues by Category: Governmental Activities
2021
2022
654
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

10 Expense Highlights
Total expenses increased $8,242,680 over the prior year. The in c r e a s e w a s d u e t o v a r i o u s increases/decreases across various funds and departments:
 Public Safety costs increased by $1,447,962. In the prior year and in response to COVID‐19, Police and Fire contracts saw cuts to salaries and benefits. As expect ed, normal salary and benefit rates resumed in fiscal year 2021‐2022. There was also an increase in Police contract costs of 5.2% as well as the addition of two special enforcement team (SET) deputies.  Community Development expenditures saw an increase of $1,111,687. The change is due to the i n c r e a s e o f i n ‐ h o u s e a s w e l l a s c o n t r a c t s t a f f a s t h e c i t y t r a nsitions and grows to meet adequate service levels.
 Public Works expenditures increased by $6,008,188, mostly attri buted to capital assets and depreciation.

Charges for Services
Sales Tax
Operating Grants &
Contributions
Motor Vehicle License
Fee
Capital Grants &
Contributions
Property Tax (levied
for general purpose)
Franchise Tax
Investment Earnings
Other Taxes Other
Revenues by Source: Governmental Activities
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
General
Government
Public Safety Public Works Community
Development
Revenue
Neutrality
Interest on Long‐
term Debt
Thousands
Expenses: Governmental Activities
2021
2022
655
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

11 FINANCIAL ANALYSIS OF THE FUND STATEMENTS
REPORTING THE CITY BY SPECIFIC FUNCTIONS

As noted earlier, the city uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The fund financial statements focu s on individual parts of the city government, reporting the City’s operations in more detail than the government‐wide statements. The types of Governmental funds reported by the city include the General Fund, Special Revenue Funds, Capital Project Funds, and Debt Service Funds. The fund statem ents provide information on near‐term inflows, outflows and balances of spendable resources. These funds represent the reporting structure of the budget.

Governmental Funds: The focus of the City’s governmental funds is to provide information on near‐term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unreserved fund balance s may serve as a useful measure of the City’s net resources available for spending at the end of the fiscal year.

The City’s governmental funds r eported a combined ending fund b alance of $135,003,741 on June 30, 2022. Compared to the prior year, this is an increase of $38,1 92,166. Approximately $278,357 of the fund balance is non‐spendable and represents pre‐paid accounts payable. Fund balance in the amount of $39,662,199 is restricted for the completion of special acti vities and capital improvement projects including restricted amounts in the fire structural fund set as ide for fire operations and projects. $78,955,029 is committed for the future Civic Center. The rema inder of the combined fund balance is $16,108,156 and classified as unassigned.

The General Fund is the chief operating fund of the city. On June 30, 2022, unassigned fund balance was $16,868,609. As a measure of the General Funds’ financial cond ition, it may be useful to compare the unassigned fund balance to total expenditures. Unassigned fund balance represents 51% of General Fund expenditures of $33,344,486.

Provided in the section below is a summary of net changes in fu nd balances in addition to financial and budgetary highlights.

General Fund Financial and Budgetary Highlights

Overall, General Fund revenues for fiscal year ended June 30, 2022, total $67,989,185 compared to $54,713,837 for the previous year. The major components of rev enues are sales ta xes ($44.7 million), property taxes ($3.2 million), franchise taxes ($2.0 million), and motor vehicle in lieu tax ($5.5 million).

General Fund expenditures total $33,344,486 for the fiscal year ended June 30, 2022, compared to $26,759,392 for the previous year. It should be noted that whil e the city collects over $11.3 million in property tax, most of it is not levied for general purpose, the remainder $7.6 million is collected in the restricted fund for fire services.

As of June 30, 2022, the City’s General Fund reported an excess of revenues over expenditures of $34,644,699 compared to $27,954, 445 in 2020‐2021, an increase o f $6,690,254. The increase of $6.7 million over the prior year is due to several factors including the following:
656
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

12 General Fund Revenues
 Additional Vehicle License Fee revenue was received in the amount of $279,097 over the prior year.  Sales tax revenue increased by $16,590,228 compared to prior ye ar. Much of this increase can be attributed to the fact that a two major fulfillment centers in the city changed business structure; this change led to redistribution of the sales tax for these facilit ies from the statewide pool to the city hosting the facility. Economic development efforts combined with commercial and retail growth also attributed to the increase.
 Franchise tax decreased by $3,965,667 in the General Fund over the prior year as a result of a one‐ time franchise agreement payment of $4,000,000 from Waste Management in the prior fiscal year.  Net unrealized loss totaled appr oximated $1.3 million and will be reversed in the 2022‐2023 fiscal year.

General Fund Expenditures
 General Fund expenditures increased by $6,585,094 as a net result of:
o General Government expenditures increased by $3,256,686 year over year. The main drivers o f t h e i n c r e a s e d e x p e n d i t u r e s w e r e t h e n e w l y f o r m e d E v e n t s d e p artment, increases in general liability insurance, increased staffing levels, and sales tax abatement charges. o Public Safety costs have incre ased approximately $2,050,998. Po lice services increased due to the addition of two SET deputies, as well as a 5.2% contract increase. In fiscal year 2020‐ 2021 Fire services decreased Cal FIRE salaries and benefits as a response to the COVID‐19 pandemic, part of the increase in public safety costs is attributed to the resumption of ordinary Cal Fire salaries and benefits.
o Community Development expenses sa w an increase of $1,151,558 wh ich for the most part was an effect of increased staffing levels as well as continued use of consultants and contractors. The business incentive program also contributed to the increased expenditures.

City of Eastvale
Summary of Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund
For the Year Ended June 30, 2022
Governmental Activities
2022 2021
Revenues:

Taxes $   58,752,698   $   45,431,170
Licenses, Permits, and Fees 2,427,776   3,039,760
Fines and Forfeitures 552,598   595,230
Intergovernmental 5,597,716 5,275,642
Investment Earnings (92,197) 148,987
Other 750,594 223,048
Total Revenues 67,989,185   54,713,837
Expenditures:

General Government 9,409,171 6,152,485
Public Safety 17,394,916   15,343,918
Public Works 368,711   415,553
Community Development 5,269,010   4,117,452
657
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

13 Revenue Neutrality 524,455 504,864
Capital Outlay 90,074 222,791
Debt Service:

Principal Retirement 271,400 2,006
Interest 16,749 323
Total Expenses 33,344,486 26,759,392

Excess of Revenues over Expenditures 34,644,699 27,954,445

Other Finance Sources (Uses):

Transfers In 7,414,812 185,546
Transfers Out (6,594,781) (1,989,215)
Leases (As Lessee) 0 956,617
Total Other Financing Sources (Uses) 820,031 (847,052)

Change in Fund Balances 35,464,730 27,107,393
Fund Balance, Beginning of Year 75,092,203 47,984,810 Fund Balance, End of Year $ 110,556,933 $ 75,092,203

General Fund Budget Highlights
The City’s adopted general fund budget was amended throughout th e f i s c a l y e a r . T h e a m e n d m e n t s included adjustments for various transfers between accounts, de partments, programs, and funds and were authorized by the City Manager, in accordance with the budget resolution approved by Council at the time of budget adoption. Any additional appropriations in excess of the adopted budget were approved by Council throughout the fiscal year and during the mid‐year budget. The revised budget for revenues totaled $75,310,704. Expenditure revised budget totaled $36,275,033.

City of Eastvale
Schedule of Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual ‐ General Fund
For the Year Ended June 30, 2022
2022
Final Budget
Actual
Amounts
Variance with
Final Budget
Revenues:

Taxes $   65,041,583 $   58,752,698   $   (6,288,885) Licenses, Permits, and Fees 3,011,910 2,427,776   (584,134) Fines and Forfeitures 498,500 552,598   54,098
Intergovernmental 5,469,611 5,597,716   128,105
Investment Earnings 595,000 (92,197)   (687,197)
Other 694,100 750,594   56,494
Total Revenues 75,310,704 67,989,185   (7,321,519)

Expenditures:

General Government 9,188,196 9,409,171 (220,975)
Public Safety 19,585,909 17,394,916 2,190,993
Public Works 697,493 368,711 328,782
Community Development 6,187,435 5,269,010 918,425
Revenue Neutrality 515,000 524,455 (9,455)
Capital Outlay 101,000 90,074 10,926
Debt Service:
658
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

14 Principal Retirement 0 271,400 (271,400)
Interest 0 16,749 (16,749)
Total Expenses 36,275,033 33,344,486 2,930,547

Excess of Revenues over Expenditures 39,035,671 34,644,669 (10,252,066)

Other Finance Sources (Uses):

Transfers In 7,643,506 7,414,812 228,694
Transfers Out (6,750,668) (6,594,781) (155,887)
Leases (As Lessee) 0 0 0
Total Other Financing Sources (Uses) 892,838 820,031 72,807

Change in Fund Balances $ 39,928,509 $ 35,464,730 $ (10,179,259) Fund Balance, Beginning of Year 75,092,203 75,092,203 0 Fund Balance, End of Year 115,020,712 110,556,933 (10,179,259)

In most cases, the City of Eastvale takes a conservative budgeting approach by estimating minimal growth in revenues and adopting status quo service levels year over year. However, in fiscal year 2021‐ 2022, General Fund budgeted revenues exceeded actual revenues by $7,321,519. The variance is due to the lack of historical data and much higher than anticipated sa les tax revenue compared to previous years.

Actual expenditures were under budget by $2,930,547. Public Safety and Community Development were the main drivers of the $2.9 million dollar variance. Actual expenditures for both Police and Fire came in lower than projected by Riverside County Sheriff’s Department a nd CalFIRE. In regards to Community Development, budgeted expenditures exceeded actuals mainly due to salary and benefit savings caused by vacancies in several divisions as well as positions being budgeted at the top of the pay scale.

Capital Projects Fund Financial and Budgetary Highlights

As of June 30, 2022, the City’s Capital Projects Fund reported ending fund balance of $2,908,958, an increase of $1,121,238 from the prior year due to increases of transfers from the General Fund. The Capital Projects fund is comprised of general funds and is used to capture capital expenditures. Provided below is a summary of net changes in fund balance.

City of Eastvale
Summary of Statement of Revenues, Expenditures, and Changes in Fund Balance Gas Tax Fund
For the Year Ended June 30, 2022
Governmental Activities
2022 2021
Revenues:

Taxes $     0   $     0
Intergovernmental 0   0
Investment Earnings 10   7
O t h e r 90,111 0
Total Revenues 90,121 7

Expenditures:
659
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

15 Public Works 109,862 298,600
Capital Outlay 911,302 310,910
Debt Service:

Principal Retirement 4,402,869 229,592
Interest 107,850 238,368
Total Expenditures 5,531,883 1,077,470

Excess of Revenues over Expenditures (5,441,762) (1,077,463) Other Finance Sources (Uses):

Transfer In 6,563,000 1,988,699
Transfers Out 0 0
Total Other Financing Sources (Uses) 6,563,000 1,988,699

Change in Fund Balances 1,121,238 911,236

Fund Balance, Beginning of Year 1,787,720 876,484

Fund Balance, End of Year $ 2,908,958 $ 1,787,720

As of June 30, 2022, the City’s Capital Projects Fund reported an excess of expenditures over revenues of $5,441,762, compared to $1,077,463 in the prior year. The increase in excess expenditures primarily is due to the Streetlight purchase debt payoff of $4.5 million. Capital outlay expenditures also increased by $600,392 due to the Civic Center project and the installation of cameras throughout City facilities. As mentioned previously all Capital Projects fund expenditures are funded through transfers from the General Fund resulting in an increase of transfers in of $4,574,301.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets: C i t y i n v e s t m e n t i n c a p i t a l a s s e t s f o r i t s g o v e r n m e n t a l a c t i v it i e s a s o f J u n e 3 0 , 2 0 2 2 , amounted to $250,344,779 (net of accumulated depreciation and related debt). Additional information on the City’s capital assets can be found in Note 6 to the basic financial statements.

Major capital asset events during the current fiscal year included the following:
 Several construction projects are in various stages of completi on. Construction in progress had an increase of $102,294, this was the net effect of the addition o f new and ongoing Construction in Progress as well as the deletion of projects identified as maintenance.  Increases to infrastructure such as streets, sidewalks, streetl ights and storm drains accounted for most of the increases to Capital Assets. All infrastructure rec ognized in fiscal year 2021‐2022 was donated by developers.
 R i g h t ‐ t o ‐ U s e – L e a s e d B u i l d i n g s ( $ 8 5 3 , 5 6 3 ) a n d R i g h t ‐ t o ‐ U s e – Leased Machinery and Equipment ($120,747) remained the same. Both categories new for fiscal year 2020‐2021 are now included due to implementation of Statement No. 87 from the Governmental Accounting Standards Board.

Capital assets are summarized below, additional information can be found in Note 6 to the basic financial statements.

660
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

16 City of Eastvale
Summary of Capital Assets (net of depreciation)
For the Year Ended June 30, 2022
Governmental Activities
2022 2021
Land $       6,811,573   $        6,811,573
Construction in Progress 10,685,452   9,156,056
Buildings 9,374,448   9,374,448
Right‐to‐Use – Leased Buildings 853,563 853,563
Leasehold Improvements 43,935 43,935
Vehicles 1,208,793 1,113,169
Furniture and Fixtures 83 ,148 62,148
Machinery and Equipment 897,655 891,992
Right‐to‐Use – Leased Mach. and Equip. 120,747 120,747 Software 480,412 480,412
Infrastructure 298 ,731,498 293 ,382,944
Accumulated Depreciation (77,699,936) (69,748,767)
Total Capital Assets      $    251,591,288 $         252,542,220

Long‐term debt: At the beginning of fiscal year 2022, the City’s total outsta nding long‐term debt was $5,378,626, of which $4,206,301 was attributed to the loan to p urchase streetlights. The city entered into an equipment lease agreement to purchase streetlights from Southern California Edison in September 2018. The purchase allowed the city to reduce electricity costs by retrofitting existing streetlamps to LED efficient lamps. In fiscal year 2021‐2022, t he city decided to pay the streetlight loan in full reducing the outstanding long‐term debt liability to $957,272 as of June 30th, 2022. The long‐term debt liability is comprised of Compensated Absences $264,583 an d Leases Payable $692,689.

Compensated absences increased by $58,754 due to an increase in employees. Leases Payable decreased by $273,807 due to the Governmental Accounting Standa rds Board Statement No. 87 that requires the City’s lease payments to be categorized as debt. O utstanding long‐term debt of the city is summarized below, additional information can be found in Note 7 to the basic financial statements.

City of Eastvale
Summary of Outstanding Long‐Term Debt
For the Year Ended June 30, 2021
2022 2021
Compensated Absences $ 264,583 $ 205,829 Loan Payable, Direct Borrowing 0 4,206,301
Leases Payable 692,689 966,496
Net Pension Liability 0 73,969
Total Long‐Term Debt $ 957,272 $ 5,452,595

ECONOMIC FACTORS AND OUTLOOK FOR FUTURE YEARS

Although the focus of this annual report is the economic condit ion of the city for the fiscal year ended June 30th, 2022, during the preparation of the fiscal year 2022‐23 budget, management considered the possible impacts of economic development, national economies, a nd local COVID‐19 pandemic related economic impacts.
661
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2022

17 At the beginning of fiscal year 2021, the city received notice from HDL that a change in business structure from a large corporate fulfillment center would significantly i ncrease the amount of sales tax revenue r e c e i v e d b y t h e c i t y . W h e n c o m p a r i n g J u n e 3 0th 2022 to June 30th, 2020, the city saw a substantial increase of $34,361,307 in relation to sales tax revenue. As ex pected, a change this drastic did not go unnoticed. Without success, many cities that lost sales tax rev enue went on to petition the California L e a g u e o f C i t i e s i n a n e f f o r t t o r e v e r t t h e c h a n g e s i n s a l e s t ax reporting. It is entirely possible that business structures or sales tax laws could change in the future , b u t f o r t h e t i m e b e i n g , t h e C i t y o f Eastvale will see a significant increase in sales tax revenue. The new windfall of sales tax revenue is not without its share of obstacles. City Council will decide how to allocate the new revenue while adhering to the California GANN Appropriations limit. The GANN Appropriations limit will restrict most of the new sales tax revenue to the future Civic Center, where the City plans to build a City Hall, Police Station, Fire Station and Library.

In fiscal year 2023 the City will rely heavily on sales tax as its main source of income. The City will also be without one time revenue allocations of $7,360,219 from the Fede r a l G o v e r n m e n t a s p a r t o f t h e American Rescue Plan Act. The SLFRF funds were intended to help cities and communities recover from the economic effects of COVID‐19 and were used to offset public safety costs. Compared to most cities, the city of Eastvale is unique in the fact that it experienced tremendous revenue growth during the COVID‐19 pandemic.

As the City emerges from the COVID‐19 pandemic, it continues to prioritize economic development in order to provide sustainable city services for the long term. C ity officials and management have been working diligently to attract a plethora of new and diverse busi n e s s o f f e r i n g s . C o m i n g t o t h e C i t y o f Eastvale in the near future will be the City’s very first hotel at Hamner Place, which will bring in a new stream of revenue in the form of Transient Occupancy Tax. The hotel is scheduled to open in 2023. The new Transient Occupancy Tax will serve to not only bolster reve nue but to diversify it as well. Walmart is also set open its doors in 2023 and will hopefully continue to fuel sales tax revenue growth.

Additionally, a final $4.0 million waste hauler retention fee is expected to be received in fiscal year 2022‐ 2023, as a result of the city’s negotiation with Waste Manageme nt for a twenty‐year franchise agreement. City Council has alread y indicated that the $4.0 mil lion will be committed towards building the city’s new police station at Limonite and Hamner Avenues.

REQUEST FOR INFORMATION

This financial report is designed to provide a general overview of the City’s finances for all those with i n t e r e s t i n t h e g o v e r n m e n t ’ s f i n a n c e s . Q u e s t i o n s c o n c e r n i n g a ny o f t h e i n f o r m a t i o n p r o v i d e d i n t h i s report, or requests for additional information should be addres sed to the City Clerk of Eastvale, 12363 Limonite Ave., Suite 910, Eastvale, CA 91752, or call (951) 361‐0900. 662
18 BASIC FINANCIAL STATEMENTS
663
19 GOVERNMENT-WIDE

FINANCIAL STATEMENTS
664
Governmental
Activities
ASSETS
Current assets:

Cash and investments (Note 3 and Note 4) 134,231,639 $
Receivables:

Accounts 829,859
Intergovernmental 11,089,226
Interest 123,313
Lease 580,039
Prepaid costs 278,357

Total current assets 147,132,433
Net Pension Asset (Note 9) 163,759
Net OPEB Asset (Note 10) 51,601
Capital assets: (Note 6)
Non-depreciable 17,497,024
Depreciable, net 234,094,264

Total capital assets 251,591,288
Total noncurrent assets 251,806,648
Total assets 398,939,081

DEFERRED OUTFLOWS OF RESOURCES
Pension related items (Note 9) 709,270
OPEB related items (Note 10) 51,233
Total deferred outflows of resources 760,503

CITY OF EASTVALE
Statement of Net Position
June 30, 2022
See accompanying notes to the basic financial statements. 20 665
Governmental
Activities

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 7,937,274
Deposits payable 3,523,500
Compensated absences, due within one year (Note 7) 66,146 Leases payable, due within one year (Note 7) 311,042

Total current liabilities 11,837,962
Noncurrent liabilities:

Compensated absences (Note 7) 198,437
Leases payable (Note 7) 381,647
Total noncurrent liabilities 580,084
Total liabilities 12,418,046

DEFERRED INFLOWS OF RESOURCES
Pension related items (Note 9) 266,021
OPEB related items (Note 10) 87,070
Lease related items 553,820
Total deferred inflows of resources 906,911

NET POSITION
Net investment in capital assets 250,344,779
Restricted for:

Street maintenance/projects 16,582,198
Lighting and landscape maintenance 4,039,186
Capital projects city facilities 4,038,128
Fire operations/improvements 14,473,114
Other purposes 529,573

Total restricted 39,662,199
Unrestricted 96,367,649
Total net position 386,374,627$

CITY OF EASTVALE
Statement of Net Position (Continued)
June 30, 2022
See accompanying notes to the basic financial statements. 21 666
Operating Capital Total
Charges for Grants and Grants and Program
Expenses Services Contributions Contributions Revenue
Governmental activities:

General government 9,988,607 $ 100,033 $ 7,410,746 $ - $ 7,510,779$ Public safety 17,842,676 8,831,031 210,751 - 9,041,782 Public works 13,723,460 643,222 4,574,808 9,480,133 14,698,163 Community development 5,229,139 1,840,353 - - 1,840,353 Revenue neutrality 524,455 - - - - Interest and fiscal charges 305,680 - - - - Total governmental activities 47,614,017$ 11,414,639 $ 12,196,305 $ 9,480,133 $ 33,091,077 $

CITY OF EASTVALE
Statement of Activities
For the Year Ended June 30, 2022
Functions/Programs
Program Revenues
See accompanying notes to the basic financial statements. 22 667
Net (expense)
Revenue and
Changes in
Net Position
Governmental activities:

General government (2,477,828) $
Public safety (8,800,894)
Public works 974,703
Community development (3,388,786)
Revenue neutrality (524,455)
Interest and fiscal charges (305,680)
Total governmental activities (14,522,940)
General revenues:

Taxes:

Property taxes, levied for general purpose 3,177,719
Franchise tax 1,971,912
Sales taxes 44,710,286
Other taxes 458,845

Total taxes 50,318,762
Motor vehicle in lieu (Intergovernmental/unrestricted) 5,52 5,739 Investment earnings (loss) (103,205)
Other 700,068
Total general revenues 56,441,364
Change in net position 41,918,424
Net position - beginning of year, as restated (Note 16) 344,456,203 Net position - end of year 386,374,627 $
Functions/Programs

CITY OF EASTVALE
Statement of Activities (Continued)
For the Year Ended June 30, 2022
See accompanying notes to the basic financial statements. 23 668
24 FUND FINANCIAL STATEMENTS

Governmental Fund Financial Statements
669
25 GOVERNMENTAL FUND

FINANCIAL STATEMENTS
The Governmental Funds of the City are outlined below:

General Fund - The General Fund accounts for all revenues and expenditures u sed to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Eastvale, these services include general government, safety, community development, culture and recreation and public works.

Capital Projects Fund – is used to account for the fina ncial resources to be used for the acquisition or construction of capital facilities.

Nonmajor Governmental Funds - Nonmajor Governmental Funds is the aggregate of all the nonmajor governmental funds. 670
Capital
Project
Fund
Capital Nonmajor Total
Projects Governmental Governmental
General Fund Funds Funds
Cash and investments (Note 3 and Note 4) 110,583,002$ 2,969,931 $ 20,678,706 $ 134,231,639 $ Receivables:

Accounts 824,959 - 4,900 829,859 Intergovernmental 8,445,436 - 2,643,790 11,089,226 Interest 101,955 - 21,358 123,313 Lease 580,039 - - 580,039 Due from other funds (Note 5) 719,058 - - 719,058 Prepaid costs 260,181
- 18,176 278,357
Total assets 121,514,630$ 2,969,931 $ 23,366,930 $ 147,851,491 $ Liabilities:

Accounts payable 6,464,054 $ 60,973 $ 1,109,111$ 7,634,138 $ Accrued liabilities 303,136 - - 303,136 Deposits payable 3,523,500 - - 3,523,500 Due to other funds (Note 5) - - 719,058 719,058 Total liabilities 10,290,690 60,973 1,828,169 12,179,832 Deferred Inflows of Resources:

Unavailable revenue 113,187 - 911 114,098 Lease related items 553,820 - - 553,820 Total deferred inflows of resources 667,007 - 911 667,918 Fund Balances: (Note 12)
Nonspendable 260,181 - 18,176 278,357 Restricted 14,473,114 2,908,958 22,280,127 39,662,199 Committed 78,955,029 - - 78,955,029 Unassigned 16,868,609 - (760,453) 16,108,156 Total fund balances 110,556,933 2,908,958 21,537,850 135,003,741 Total liabilities, deferred inflows of
resources and fund balances 121,514,630$ 2,969,931 $ 23,366,930 $ 147,851,491 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND

BALANCES
ASSETS

CITY OF EASTVALE
Governmental Funds
June 30, 2022
Balance Sheet
See accompanying notes to the basic financial statements. 26 671
Total Fund Balances - Total Governmental Funds 135,003,741$ Capital assets 329,291,224
Accumulated depreciation (77,699,936)
Total capital assets 251,591,288
114,098
Compensated absences (264,583)
Leases payable (692,689)
Net Pension (Liability) Asset 163,759
51,601 (741,912)
Pension related deferred outflows of resources 709,270
OPEB related deferred outflows of resources 51,233
Pension related deferred inflows of resources (266,021) OPEB related deferred inflows of resources (87,070) 407,412 Net position of governmental activities 386,374,627$

CITY OF EASTVALE
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

Deferred outflows and inflows of resources related to pensions and OPEB that are required to be recognized over a defined closed period.

Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet.

Certain revenues were not available to pay for current period expenditures and, therefore, were deferred in the funds.

Long-term liabilities applicable to the governmental activities are not due and payable in the current period and accordingly are not reported in as fund liabilities. All liabilities, both current and long-term are reported in the statement of net position.

Net OPEB (Liability) Asset
See accompanying notes to the basic financial statements. 27 672
Capital
Project
Fund
Capital Nonmajor Total
Projects Governmental Governmental
General Fund Funds Funds
REVENUES:

Taxes 58,752,698 $ - $ 1,376,892$ 60,129,590 $ Licenses, permits and fees 2,427,776 - - 2,427,776 Fines and forfeitures 552,598 - - 552,598 Intergovernmental 5,597,716 - 12,130,369 17,728,085 Development impact fees - - 270,913 270,913 Assessments - - 2,805,125 2,805,125 Investment earnings (loss) (92,197) 10 (328,481) (420,668) Other 750,594 90,111 2,188 842,893 Total revenues 67,989,185 90,121 16,257,006 84,336,312 EXPENDITURES:

Current:

General government 9,409,171 - 192,444 9,601,615 Public safety 17,394,916 - 165,428 17,560,344 Public works 368,711 109,862 1,778,164 2,256,737 Community development 5,269,010 - - 5,269,010 Revenue neutrality 524,455 - - 524,455 Capital outlay 90,074 911,302 5,125,682 6,127,058 Debt service:

Principal 271,400 4,402,869 5,888 4,680,157 Interest and fiscal charges 16,749
107,850 171 124,770
Total expenditures 33,344,486 5,531,883 7,267,777 46,144,146

REVENUES OVER (UNDER)
EXPENDITURES 34,644,699 (5,441,762) 8,989,229 38,192,166

OTHER FINANCING
SOURCES (USES):

Transfers in (Note 5) 7,414,812 6,563,000 31,796 14,009,608 Transfers out (Note 5) (6,594,781) - (7,414,827) (14,009,608) Total other financing sources (uses) 820,031 6,563,000 (7,383,031) - NET CHANGE IN FUND BALANCES 35,464,730 1,121,238 1,606,198 38,192,166 Fund balances, beginning of year 75,092,203 1,787,720 19,931,652 96,811,575 Fund balances, end of year 110,556,933 $ 2,908,958 $ 21,537,850 $ 135,003,741 $ Statement of Revenues, Expenditures, and Changes in Fund Balances

CITY OF EASTVALE
Governmental Funds
For the Year Ended June 30, 2022
See accompanying notes to the basic financial statements. 28 673
Net Change in Fund Balances - Total Governmental Funds 38,192,166$ Governmental activities in the Statement of Activities were reported differently because:

Total capital outlay expenditures reported in governmental funds 6,127,058 $ Less: Contributed infrastructure (5,221,851)
Plus: repair and maintenance expenditures 6,094,965
Total capital outlay 7,000,172
Total depreciation reported in Government-wide Statement of Activities (7,951,169) Principal paid on loan payable 4,206,301
Principal paid on leases payable 273,807 4,480,108 Net change in accrued interest payable 19,139
Net change in compensated absences (58,754)
Net change in Net Pension Liability (Asset) 237,728
Net change in Net OPEB Liability (Asset) 7,144
Net change in pension related deferred outflows and deferred inflows of resources 21,025 Net change in OPEB related deferred outflows and deferred inflows of resources (3,413) 222,869 (25,722)
Change in net position of governmental activities 41,918,424$ Earned unavailable revenue and other resources not available to liquidate liabilities of the current period are not recognized in governmental funds. Revenues in the statement of activities is not limited by availability, so certain revenues need to be increased by the amounts that were unavailable at the end of the year.

CITY OF EASTVALE
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Governmental-wide Statement of Activities For the Year Ended June 30, 2022
Governmental Funds report capital outlay as expenditures. However, in the Government-wide Statement of Activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. The amount of capital assets recorded in the current period is listed below.

Depreciation expense of capital assets is reported in the Government-wide Statement of Activities, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in the governmental funds expect for the Internal Service fund amount listed below.

The issuance of long-term debt provides current financial resources to governmental funds. Repayment of long-term debt is an expenditure in in governmental funds, but repayment reduces long-term liabilities in the statement of net position.

Some expenses reported in statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds:

See accompanying notes to the basic financial statements. 29 674
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675

NOTES TO THE BASIC

FINANCIAL STATEMENTS
30 676

CITY OF EASTVALE
31 Notes to the Basic Financial Statements
For the Year Ended June 30, 2022

Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Eastvale, Califor nia, (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepte d standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City’s significant policies:

A. Description of the Reporting Entity
The City of Eastvale (City) was incorporated on October 1, 2010 , under the laws of the State of California and enjoys all the rights and privileges pertaining to “General Law ” cities. The City operates under a council-manager form of government and currently provides a wide variety of services to its citizens, including public safety, public works, community development, general administrative and other services. As required by generally accepted accounting principles, these financial statements present the City (the primary government) and its component units.

Component units are legally separate organizations for which th e elected officials of the primary government are financially accountable. In add ition, component units can be ot her organizations for which the nature and significance of their relationship with a primary government ar e such that exclusion would cause the reporting entity’s financial statements to be incomplete. Under this defi nition, it is determined that there are no component units for this reporting entity, and these financial statements present the financial reporting entity that consisted solely of the City as the primary government.

B. Government-wide and Fund Financial Statements
The government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in th ese statements. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to interfund a ctivities, payables, and receivables. All internal balances in the statement of ne t position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. Governmental activities wh ich normally are supported by taxes and intergovernmental revenues are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Currently, the City does not have any business-type activities.

The Statement of Activities demonstrates the degree to which th e direct expenses of a given function or segment, are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or a pplicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given functio n or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental fun ds, proprietary, and fiduciary funds, even though the latter are excluded from the government-wide financial stat ements. Major individual governmental funds and major individual enterprise funds are reported as separate colu mns in the fund financial statements. The City does not have any proprietary funds.

677

CITY OF EASTVALE
32 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting , as are the fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Accordingly, all of the City’s assets, deferred outflows of resources, liabi lities and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges or services, 2) operating grants a nd contributions, and 3) capital grants and contributions.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified-accrual basis of accounting, revenues are recognized in these funds when susceptible to accrual (i.e. when they are both measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the cur rent period. For this purpose, the City considers property taxes collected after year-end as available, if they a re collected within 60 days of the end of the current fiscal period. Other revenue susceptible to accrual includes sales tax, state gasoline taxes, investment earnings, and certain other intergovernmental revenues. Expenditures in the governmental funds are generally recognized in the accounting period in which the rel ated fund liability is incurr ed. However, debt service principal and interest expenditures on general long-term debt, including lease liabilities, as well as expenditures related to compensated absences, and claims and judgments, and postemployment benefits are recognized later based on specific accounting rules applicable to each , generally when payment is due. General capital asset acquisitions, including entering into contracts giving the City the right to use leased assets, are reported as expenditures in governmental funds. Issuance of long-term debt and financing through leases are reported as other financing sources.

The City reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government not accounted and reported in another fund.

The Capital Project Fund (Capital Projects) ) is used to account for the financial resources to be used for t he acquisition or construction of capital facilities.

As a general rule, the effect of interfund activity has been el iminated from the government-wide financial statements except for the effect of interfund services provided and used.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, servi ces, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than program revenues.

Likewise, general revenues include all unrestricted taxes.

When both restricted and unrestricted resources are available f or use, it is the City’s policy to use the restricted resources first, and then unrestricted, as they are needed.

678

CITY OF EASTVALE
33 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)

Other Accounting Policies
Deposits and Investments
The City cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

Investments are reported at fair value. The City’s policy is to hold investments until maturity or until market values equal or exceed cost.

Interfund Receivables and Payables
Activity between funds that are representative of lending/borro wing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion o f interfund loans). All other outstanding balances between funds are reported as “due to/from other funds”. Any re sidual balances outstanding are reported in the government-wide financial statements as “internal balances”.

Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid costs in both government-wide and fund financial statements. The City uses the consumption method for prepaid items in the governmental funds.

Capital Assets
Capital assets, which include pro perty, plant and equipment, an d infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) ar e reported in the applicable go vernmental or business-type activities columns in the governmentwide financial sta tements. Capital assets are def ined by the government as assets with an initial, individual cost of more than or equal to $5,000 (amount not rou nded) and an estimated useful life of at least two years. Such assets are recorded at the historical cost or estimated historical cost if purchased or constructed (except for intangible right-to-use lease assets), the measurement of w hich is discussed thereafter. Donated capital assets are recorded at acquisition value rather than fair value at the date of donation.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset’s lives are not capitalized.

Property, plant and equipment of the primary government is depr eciated using the straight-line method over the following estimated useful lives:

Leasehold Improvements 10 years
Infrastructure 10 to 65 years
V e h i c l e s 5 t o 1 0 y e a r s
Office Equipment 5 to 10 years
Computer Equipment 5 years
Right of Use Leased Equipment 3 to 5 years
Use of Estimates
The financial statements have been prepared in accordance with generally accepted accounting principles accepted in the United States of America and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts.

679

CITY OF EASTVALE
34 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Compensated Absences
The City provides to its employ ees a comprehensive annual leave program. Leave pay is payable at the time it is taken or upon termination.

The total amount of liability for compensated absences is segregated between short-term and long-term with both portions reflected in the government-wide statements. The short -term portion is determined to be the amount due to employees for future absences which is attributable to servi ces already rendered and which is expected to be paid during the next fiscal year.

Long-term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, statemen t of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as expenses in the year incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of d ebt issued is reported as other financing sources.

Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or no t withheld from the actual debt proceeds received, are reported as expenditures. The City has not issued bonds and currently has no bonds payable.

Property Taxes
The County of Riverside collects property taxes for the City. T ax liens attach annually as of 12:01 A.M. on the first day in January preceding, the fiscal year for which the t axes are levied. The tax levy covers the fiscal period July 1st to June 30th. All secure d personal property taxes and one-half of the taxes on real property are due November 1st, the second installm ent is due February 1st. All t axes are delinquent, if unpaid, on December 10th and April 10th respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31st.

Unearned Revenues
In the government-wide financial statements and the fund financ ial statements, unearned revenues represent cash advances by various grantors that have not been spent; therefore no revenue has been recognized.

Fund Equity
The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This statement provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balance more transparent. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:

Nonspendable - amounts that are not in a spendable form (such a s inventory) or are required to be maintained intact.

Restricted - amounts constrained to specific purposes by their providers (such as grantors, bondholders and higher levels of government), through constitutional provisions or by enabling legislation.

680

CITY OF EASTVALE
35 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Fund Equity (Continued)
Committed - amounts constrained to specific purposes by a gover nment itself, using the highest level of decision making authority, an adoption of an ordinance; to be r eported as committed, amounts cannot be used for any other purpose unless the City Council takes the sa me highest level action (the adoption of another resolution or ordinance) to remove or change the constraint.

Assigned - amounts a government intends to use for a specific p urpose; the City Council has delegated the authority to assign unrestricted fund balance to the City Manager or the City Manager’s designee, per the City Council “Fund Balance Reserve Policy”.

Unassigned - amount that are for any purpose; positive amounts are reported only in a general fund.

The City Council may establish (and modify or rescind) fund bal ance commitments by passage of a resolution ordinance.

The City has established a General Fund minimum fund balance policy as follows:

At the end of each fiscal year, the General Fund should have a minimum fund balance of 50% of the next year’s General Fund annual budgeted ope rating expenditures, as calculated by the Finance Director. This target amount has been established in order to provide a reasonable level of assurance that the City’s day-to-day operations will be able to continue even if circumstances occur where revenues are insufficient to cover expenditures.

When both restricted and unrestricted resources are available f or use when an expenditure is incurred, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. It is the City’s policy to consider committed amounts as being reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred fo r purposes for which amounts i n any of those unrestricted fund balance classifications could be used.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will somet imes report a separate section for deferred outflows of resources. This separate financial statement element, deferr ed outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will no t be recognized as an outflow of resources (expenses/expenditure) until then. The City has deferred outflo ws related to pensions and other postemployment benefits, which arise only under a full accrual basis of accoun ting. Accordingly, these items (pension and other postemployment benefits), are r eported only in the government-w ide statement of net position. This includes pension and other postemployment benefits contributions subsequent to the measurement date of the net liabilities and other amounts (see Notes 9 and 10, respectively), which are amortized by an actuarial determined period.

In addition to liabilities, the statement of net position and the balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial stat ement element, deferred inflows of resources, represents an acquisition of net assets that applies to a futur e period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the government funds balance sheet. The governmental funds report unavailable revenues from these sources: property taxes, special assessments, grant reven ues and Measure A revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City also has deferred inflows of resources related to pensions, OPEB, an d Leases, which arises only under a full accrual basis of accounting. Accordingly, these items (pension and othe r postemployment benefit related items), are reported only in the government-wide statement of net position. These amounts (see Notes 9 and 10, respectively) are amortized by an actuarial determined period.
681

CITY OF EASTVALE
36 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Leases
Lessee: The City is a lessee for a noncancellable lease of buil dings and equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease ass et) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the le ase liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the C ity determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) leas e term, and (3) lease payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estim ated incremental borrowing rat e as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease l iabilities are reported with long-term debt on the Statement of Net Position.

Lessor: The City is a lessor for a noncancellable lease of a po rtion of land. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of the lease payments received. The deferred inflow of resource s is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or be fore the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key elements and judgement include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses it estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included In the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, informati on about the fiduciary net positi on of the City’s California Public Employees’ Retirement System (CalPERS) Plan (Plan) and additional to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.

Investments are reported at fair value.

682

CITY OF EASTVALE
37 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Other Postemployment Benefits – OPEB
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis.

For this purpose, benefit payments are recognized when currentl y due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles require that the repor ted results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

V a l u a t i o n D a t e D e c e m b e r 3 1 , 2 0 2 1 Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
Governmental Accounting Standard Accounting Standards Board (GASB) Pronouncements The City adopted Statement on Governmental Accounting Standards (GASB Statements) No 89- Accounting for Interest Cost Incurred Before the End of a Construction period ; No. 90- Majority Equity Interest ; No. 93- Replacement of Interbank Offered Rates; and No. 97- Certain Component Unit Criteria for Internal Revenue Code 457 Deferred Compensation Plans. The adoption of the GASB Nos. 89, 90, 93, and 97 did not significantly impact the City.

683

CITY OF EASTVALE
38 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 2 – Budget Information
The City prepares its budgets on the basis of estimated actual expenditures and, accordingly, the budget amounts included in the accompanying financial statements are presented on a basis consistent with generally accepted accounting principles.

Each year, the City Manager submits a proposed budget to the Ci ty Council during May. The City Council holds budget hearings during May and June. The final budget is adopted by the City Council in June.

No budget expenditures can be disbursed without proper appropriations. Once the budget is adopted, no additional funds can be authorized without the City Council’s approval. Th e level of budgetary control (the level on which expenditures may not legally exceed appropriations) is at the individual fund level. The City Manager can authorize budget transfers between departments without additional appropriations.

Throughout the year, budgeted expenditures are reviewed and pro jections are made by the City Manager.

Therefore, any necessary changes are submitted for approval to the City Council with a recorded action for any budget adjustments.

Formal budgetary integration is employed as a management control device during the year for all the Governmental Type Funds. Budgets for all the Governmental Type Funds are ado pted on a basis consistent with generally accepted accounting principles. Budgeted amounts are as origina lly adopted and as further amended by the City Council.

The following funds had expenditures in excess of appropriations:

Fund Budget A c t u a l Variance
AQMD Trust $71,722 $116,512 $ (44,790)
Supplemental Law Enforcement Services - 165,428 (165,428) Lighting and Landscape Maintenance 389,492 403, 540 (14,048) Development Impact Fees - 242 (242)

684

CITY OF EASTVALE
39 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 3 – Cash and Investments
Cash and investments at June 30, 2022 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments $ 134,231,639
Total Cash and Investments $ 134,231,639

Cash and investments at June 30, 2022 consist of the following:

Cash on hand $ 800
Deposits with Financial Institutions 26,684,981
Investments $ 107,545,858
Total Cash and Investments $ 134,231,639

The City follows the practice of pooling cash and investments o f all funds. Investment earnings earned on pooled cash and investments is allocated quarterly to the various funds based on cash balances.

The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools . GASB Statement No. 31 establishes fair value standards for in vestments in participating interest earning investment contracts, external i nvestment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable f a i r v a l u e s . A c c o r d i n g l y , t h e C i t y r e p o r t s i t s investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement.

Authorized Investments
The following table identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifie s certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) tha t address interest rate risk, credit risk, and concentration of credit risk. This table does not address inves tments of debt proceeds held by bond trustees that are governed by provisions of debt agreements of the City, rath er than the general provisions of the California Government Code or the City’s investment policy.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer

U.S. Treasury

5 years

None

None
Money Market Mutual Funds N/A 20% 5%
Certificates of Deposit 5 years None None
Local Agency Investment Fund (LAIF) N/A None None
Local Government Investment Pools N/A None None
Federal Agency Securities 5 years None None
Banker’s Acceptances 180 days 40% 5%
Commercial Paper 270 days 25% 10%
Medium-Term Notes 5 years 30% 5%
Negotiable Certificates of Deposit 5 years 30% 5%
Municipal Obligations 5 years 30% 5%
Asset-Backed Securities 5 years 20% 5%

685

CITY OF EASTVALE
40 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 3 – Cash and Investments (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over t ime as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitiv ity of the fair values of the City’s investments to market interest rate fluctuation are presented below:

Remaining Investment Maturities
Less than 1 to 3 4 to 5
Investment Type 1 Year Years Years Total
Local Agency Investment Fund $ 12,186,938 - - 12,186,938 CAMP 55,474,271 - - 55,474,271
Money Market Mutual Funds 3,216,246 - - 3,216,246
Federal Agency Securities 1,63 5,275 12,125,843 13,809,113 27, 570,231 Commercial Paper 150,950 151,082 - 302,032
Medium-Term Notes - 2,044,557 3,775,037 5,819,594
Municipal Obligations 366,218 637,117 490,373 1,493,708 Negotiable Certificates of Deposit 1,482,838
- - 1,482,838

Total $74,512,736
14,958,599 18,074,523 107,545,838
Generally, credit risk is the risk that an issuer of an investm ent will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Information about the minimum rating required by the California Government Code, the City's investment policy, or debt agreements, and the actual rating, as of year-end for each type of investment held by the City can be found below:

Total as of
Investment Type June 30, 2022
Minimum
Legal
Rating

Rating

Local Agency Investment Fund $ 12,186,938 None Not Rated California Asset Management Program 55,474,271 None Not Rated Money Market Mutual Funds 3,216,246 None Not Rated
Federal Agency Securities 27,570,231 A AAA
Commercial Paper 302,032 A AA
Medium-Term Notes 448,048 A AAA
Medium-Term Notes 1,485,486 A AA
Medium-Term Notes 3,886,060 A A
Municipal Obligations 433,351 A AAA
Municipal Obligations 1,060,357 A AA
Negotiable Certificates of Deposit 1,482,838 None Not Rated Total Investments $ 107,545,838

686

CITY OF EASTVALE
41 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 3 – Cash and Investments (Continued)
Concentration of Credit Risk
For the fiscal year ended June 30, 2022, there are no investmen ts in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City’s investments.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the eve nt of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for i nvestments is the risk that, in the event of the failure of the counterparty (e.g. broker-d ealer) to a transaction, a go vernment will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided colla teral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California l aw also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a v alue of 150% of the secured public deposits. As of June 30, 2022, the City had deposits of $28,938,393 with financ ial institutions in excess of federal depository insurance limits that were held in collateralized accounts.

Investment in Investment Pools
The City is a voluntary participant in the Local Agency Investm ent Fund (LAIF) that is regulated by California Government Code under the oversight of the Treasurer of the Sta te of California. The fair value of the City’s investment in this pool is reported in the accompanying financi al statements at amounts based on the City’s pro- rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on th e accounting records maintained by LAIF, which are recorded on an amortized cos t basis. LAIF is a governmental investment pool managed and directed by the California State Treasurer and is not registered with the Secur ities and Exchange Commission. An oversight committee comprised of California State officials and various participants provide oversight to the management of the fund. The daily operations and responsibilities of LAIF fal l under the auspices of the State Treasurer’s office.

The maximum investment in LAIF is $75,000,000.

Investment in California Asset Management Program
The California Asset Management Program (the CAMP) is a public joint powers authority which provides California Public Agencies with investment management services for surplus funds and comprehensive investment management, accounting and arbitrage rebate calculation service s for proceeds of tax-exempt financings. The CAMP currently offers the Cash Re serve Portfolio, a short-term investment portfolio, as a means for Public Agencies to invest these funds. Public Agencies that invest in the Pool (Participants) purchase shares of beneficial interest. Participants may als o establish individual, professio nally managed investment accounts (Individual Portfolios) by separate agreement with the
Investment Advisor. The City has a separate account in the Inve stment Advisor to manage part of the CAMP portfolio. Investments in the Pools and Individual Portfolios a re made only in investments in which Public Agencies generally are permitted by California statute. The CAM P may reject any investment and may limit the size of a Participant’s account. The Pool seeks to maintain, bu t does not guarantee, a constant net asset value of $1.00 per share. A Participant may withdraw funds from its Pool accounts at any time by check or wire transfers.

Requests for wire transfers must be made by 9:00 a.m. that day. Fair value of the Pool is determined by the fair value per share of the Pool’s underlying portfolio.
687

CITY OF EASTVALE
42 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 4 – Fair Value Measurements
Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurements and Application, provides the framework for measu ring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniqu es used to measure fair value w ith Level 1 given the highest priority and Level 3 the lowest priority. The three levels of the fair value hierarchy are as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the organization has the ability to access at the measurement date.

Level 2 inputs are inputs other than quoted prices included within Lev el 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include the following:
a. Quoted prices for similar assets or liabilities in active markets. b. Quoted prices for identical or similar assets or liabilities in markets that are not active. c. Inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves observable at commonly quoted intervals, volatilit ies, prepayment speeds, loss severities, credit risks, and default rates).
d. Inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

Level 3 inputs are unobservable inputs for the asset or liability.

Fair value of assets measured on a recurring basis at June 30, 2022, are as follows:

Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
Money Market Mutual Funds $ - 3,216,246 - 3,216,246 Federal Agency Securities - 27, 570,231 - 27,570,231 Commercial Paper - 302,032 - 302,032 Medium-Term Notes - 5,819,594 - 5, 819,594 Municipal Obligations - 1,493,708 - 1,493,708 Negotiable Certificates of Deposit - 1,482,838 - 1,482,838 Total Leveled Investments $ - 39,884,649 - 39,884,649 Investments Not Subject to
Fair Value Hierarchy:

Local Agency Investment Fund 12,186,938
California Asset Management Program 55,474,271

Total 107,545,858

Fair values for investments are determined by using a matrix pr icing technique. Matrix pricing is used to value securities based on the security’s relationship to benchmark quoted prices.

Uncategorized investments do not fall under the fair value hier archy as there is no active market for the investments.

688

CITY OF EASTVALE
43 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 5 – Interfund Receivables, Payables and Transfers
Due to/From Other Funds
Current interfund balances at June 30, 2022 consisted of the following:

Due To Other Funds:

Other Nonmajor
Governmental
Funds Total
Due From Other Funds:

General Fund $ 719,0 58 $ 719,058

The Due to General Fund from the Nonmajor Governmental Fund was a result of temporary cash shortfalls recorded in those funds.

Interfund transfers are as follows:

Transfers Out

Transfers In

General
Fund
Nonmajor
Governmental
Funds

Total
General Fund $ - 7,414,812 7,414,812
Capital Projects Funds 6,563,000 - 6,563,000
Nonmajor Governmental Funds 31,781 15 31,796

Total $6,594,781
7,414,827 14,009,608

Transfers are used to provide services and construct assets between funds.

689

CITY OF EASTVALE
44 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

Note 6 – Capital Assets
Capital asset activity for the year ended June 30, 2022 was as follows:

Beginning Ending
Description Balance * Additions Deletions Balance

Non-depreciable:

Land $ 6,811,573 - - 6,811,573
Construction in process 9,1 56,056 1,529,396 - 10,685,452

Total non-depreciable 15,967,628 1,529,396 - 17,497,025

Depreciable:

Buildings 9,374,448 - - 9,374,448
Leased Buildings 853, 563 - - 853,563
Leasehold Improvements 43,935 - - 43,935
Vehicles 1,113,169 95, 624 - 1,208,793
Furniture and Fixtures 62,148 21,000 - 83,148
Machinery and Equipment 891,992 5,663 - 897,655
Leased Machinery and Equipm ent 120,747 - - 120,747 Software 480,412 - - 480,412
Infrastructure 293,382,944 5,348,554 - 298,73 1,498

Total depreciable
capital assets 306,323,358 5,470,841 - 311 ,794,199

Less accumulated depreciation for:

Buildings 917,128 192,795 - 1,109,923
Leased Buildings - 284,521 - 284,521
Leasehold Improvements 37,905 1,340 - 39,245
Vehicles 927,644 108,500 - 1,036,144
Furniture and Fixtures 17,783 7,265 - 25,048
Machinery and Equipment 343,027 163,237 - 506,264 Leased Machinery and Equipment 11,050 41,967 - 53,017 Software 452,026 19,297 - 471,323
Infrastructure 67,042,204 7,132,247 - 74 ,174,451

Total accumulated
depreciation 69,748,767 7,951,169 - 77 ,699,936

Total depreciable
capital assets, net 236,5 74,591 (2,480,328) - 234,094,263

Total capital assets, net $252,542,220 (950,932) - 251,591,288

Depreciation expense was charged in the following functions in the Statement of Activities:
* As restated, see Note 16

General Government $ 400,894
Public Safety 415,212
Public Works 7,135,063

Total $7,951,169

690

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
45 Note 7 – Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2022 was as follows:

Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year
Compensated Absences $ 205,829 110,211 51,457 264,583 66, 146 Loan Payable, Direct
Borrowing 4,206,301 - 4,206,301 - -
Leases Payable 966,4 96 - 273,807 6 92,689 311,042

Total $5,378,626 110,211 4,531,565 957,272 377,188

Liabilities for compensated absences are typically liquidated by the General Fund.

691

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
46 Note 8 – Leases
A. Lease Receivable
In June 2018 (recognized in fiscal year 2021), the City leased land real estate to a third party. The lease is for twenty years and the City will receive monthly payments of $2,500. The City recognized $32,702 in lease revenue and $11,009 in interest revenue during the current fiscal year related to this lease. As of June 30, 2022, the City’s receivable for lease payments was $580,039. Also, the City has a deferred inflow of resources associated with the lease that will be recognized as revenue over the lease term. As of June 30, 2022, the balance of the deferred inflow of resources was $553,820.

B. Lease Payables
In July 2018, the City entered into a five-year lease agreement as lessee for the acquisition and use of solar equipment. An initial lease liability was recorded in the amount of $17,693 during the current fiscal year as part of the implementation of GASB 87. As of June 30, 2022, the value of the lease liability was $5,998. The City prepaid the system costs upfront and is recognized as a prepaid item an d recognized over the term of the lease. The lease has an interest rate of 1.86%. Th e equipment has a five-year es timated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $11,795 and had accumulated amortization of $11,795.

In April 2021, the City entered into a five-year lease agreemen t as lessee for the acquisition and use of copier equipment. An initial lease lia bility was recorded in the amoun t of $103,054 during the current fiscal year. As of June 30, 2022, the value of the lease liability was $82,033. Th e City is required to make monthly principal and interest payments of $1,890. The lease has an interest rate of 1.91%. The equipment has a five-year estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $77,291 and had accumulated amortization of $25,764.

In June 2021, the City entered into a three-year lease agreemen t as lessee for the use of building space. An initial lease liability was recorded in the amount of $853,563 in the p rior fiscal year. As of June 30, 2022, the value of the lease liability was $582,679. The City is required to make monthly principal and interest payments of $23,680.

The lease has an interest rate of 2.28%. The building space has a three-year estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $556,710 and had accumulated amortization of $278,355
The future principal and interest lease payments as of June 30, 2022, were as follows:

Year Ending
June 30, Principal Interest Total
2023 $ 310,920 $ 5,173 $ 316,092
2024 320,778 4,702 325,479
2025 22,133 552 22,686
2026 38,757 135 38,891
$ 692,587 $ 10,561 $ 703,148

692

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
47 Note 9 – Defined Benefit Pension Plans
A. General Information about the Pension Plans
Plan Descriptions
All full time employees are eligible to participate in the City ’s Miscellaneous Employee Pension Plan, a cost- sharing multiple employer defined benefit pension plan administ ered by the California Public Employees’ Retirement System (CalPERS). Be nefit provisions under the Plan are established by State statute and City’s resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Eligible employees hired after January 1, 2013 that, are considered new members as defined by the Public Employees’ Pension Reform Act (PEPRA) are participating in the PEPRA Miscellaneous Plan.

Benefits Provided
CalPERS, provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service as discussed above. Members with five years of total service ar e eligible to retire at age 50 or 52 if in the PEPRA Miscellaneous Plan with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The system also provides for the Optional Settlement 2W Death Benefit, as well as the 1959 Survivor Benefit. The cost of living adjustments for all plans are applied as specified by the Public Employees’ Retirement Law.

The rate plan provisions and benefits in effect at June 30, 2022, are summarized as follows:

Miscellaneous

Hire Date
P r i o r t o
January 1, 2013
On or after
January 1, 2013 (1)
Benefit formula 2.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 – 55+ 52 – 67+
Monthly benefits, as a % of eligible
compensation

1.092% to 2.418% 1.0% to 2.5%
Required employee contribution rates 7.00% 6.75%
Required employer contribution rates 8.65% 7.59%
(1) For employees hired on or after January 1, 2013, they are inc luded in their respective PEPRA (California Public employers’ Pension Reform Act) Plans with the above provisions and benefits.

Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference be tween the actuarially determined rate and the contribution rate of employees. T he City’s contributions to the Plan for the year ended June 30, 2022 were $342,270.

As of June 30, 2022, the City reported a net pension asset for its proportionate share of the net pension liability of the Plan of $(163,759).

693

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
48 Note 9 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan i s measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuar ial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The Cit y’s proportionate share of the net pension liability for the Plan as of June 30, 2020 and 2021 was as follows:

Miscellaneous
Proportion – June 30, 2021 0.0018%
Proportion – June 30, 2022 (0.0086)%
Change – Increase (Decrease) (0.0104)%

For the year ended June 30, 2022, the City recognized pension e xpense of $83,515. At June 30, 2022, the City reported deferred outflows of r esources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Pension contributions subsequent to
measurement date

$ 342,270

-
Change in proportion 11,782 (247,656)
Difference in actual contributions vs.
proportionate share of contributions

212,264

-
Difference between expected and
actual experience

(18,365)
Differences between projected and
actual earnings on plan investments

142,954

-
Change in assumptions - -

Total $ 709,270 (266,021)

Deferred outflows of resources of $342,270 related to contribut ions subsequent to the measurement date will be recognized as a reduction in the net pension liability in the y ear ended June 30, 2023. Other amounts reported as deferred outflows of resources a nd deferred inflow of resources related to pensions will be recognized as an increase or (decrease) in pension expense as follows:

Year Ended
June 30

2023 $ 43,262
2024 15,336
2025 2,877
2026 39,504
$100,979

694

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
49 Note 9 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Actuarial Assumptions
The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous
Valuation date June 30, 2020
Measurement date June 30, 2021
Actuarial cost method Entry-Age Normal Cost Method
Actuarial assumptions:

Discount rate 7.15%
Inflation 2.50%
Salary increases (1)
Mortality rate table (2)
Post retirement benefit increases (3)
Notes
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specifi c data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for th e period from 1997 to 2015.

Pre-retirement and post -retirement mortality rates include 15 y ears of projected mortality improvement using 90% of Scale MP-2016 published by the Society o f A c t u a r i e s . F o r m o r e details on this table, refer to the CalPERS Experience Study an d Review of Actuarial Assumptions report from December 2017 that is available on the CalPERS website. (3) The lesser of contract COLA or 2 .5% until purchasing power prot ection allowance floor on purchasing power applies, 2.5% thereafter.

Discount Rate
The discount rate used to measure the total pension liability w as 7.15 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contributions rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary ne t position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of project benefit payments to determine the total pension liability.

Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long- term (11+ years) using a building- block approach. Using the exp ected nominal returns for both short-term and long-term, the present value of benefits was calculated for eac h fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

695

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
50 Note 9 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The expected real rates of return by asset class are as follows:

Asset Class (a)
Assumed
Asset
Allocation
Real Return
Years
1-10 (b)
Real Return
Years
11 + (c)

Global equity 50.0% 4.80% 5.98%
Fixed income 28.0% 1.00% 2.62%
Inflation assets 0.0% 0.77% 1.81%
Private equity 8.0% 6.30% 7.23%
Real estate 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100%

(a) In the CalPERS ACFR, fixed income is included in global debt securities; liquidity is included in short-term investments; inflation assets are included in both g lobal equity securities and global debt securities.
(b) An expected inflation of 2.0% used for this period. (c) An expected inflation of 2.92% used for this period.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net position liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proporti onate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous
1% Decrease 6.15%
Net Pension Liability $ 32,255

Current Discount Rate 7.15%
Net Pension Liability (Asset) $(163,759)

1% Increase 8.15%
Net Pension Liability (Asset) $(328,281)

Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

C. Payable to the Pension Plan
At June 30, 2022, the City had $0 owed to the pension plan for contributions for the year ended June 30, 2022 which is included in accrued liabilities.

696

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
51 Note 10 – Other Post-Employment Benefit (OPEB) Plan
Plan Description
The City’s defined benefit postemployment healthcare plan provides medical benefits to eligible retired employees and qualified dependents. The Pla n is part of the Public Agency portion of the California Employers’ Retiree Benefit Trust Fund (CERBT), an agent multiple-employer plan adm inistered by Californi a Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of bene fit provisions as well as other requirements is established by State statute within the Public Employees’ Retir ement Law. CalPERS issues a Annual Comprehensive Financial Report. The Annual Comprehensive Financial Report is issued in aggregate and includes the sum of all CalPERS plans. Copies of the CalPERS ACFR may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814.

Funding Policy
The contribution requirements of the City are established and may be amended by the City Council.

Employees Covered
As of June 30, 2022 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:

Active employee 43
Inactive employees or beneficiaries currently receivingbenefits - Inactive employees entitled to,but not yet receiving benefits - Total 43
Contributions
The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2022, the City’s cash contributions were $47,000 to the trust.

Net OPEB Liability
The City’s net OPEB liability (asset) was measured as of June 3 0, 2022 and the total OPEB liability (asset) used to calculate the net OPEB liability (asset) was determined by a n actuarial valuation dated June 30, 2022 based on the following actuarial methods and assumptions:

Actuarial Assumptions:

Discount Rate 5.80%
Inflation 2.50%
Salary Increases 3.00% per year
Investment Rate of Return 6.50%, net of expenses
Mortality Rate
(1) Derived using CalPERS Membership Date for all funds Pre-Retirement Turnover (2) Derived using CalPERS Membership Date for all funds Healthcare Trend Rate 5.40%

(1) Pre-retirement mortality information was derived from data col lected during 1997 to 2011 CalPERS Experience Study dated January 2014 and post-retirement mortality information was derived from the 2007 to 2011 CalPERS Experience Study. The Experience Study Reports may be access on the CalPERS website www.calpers.ca.gov under Forms and Publications.
(2) The pre-retirement turnover info rmation was developed based on CalPERS specific data. For more details, please refer to the 2007 to 2011 Experience Study Report. The Experience Study Report may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications. 697

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
52 Note 10 – Other Post-Employment Benefit (OPEB) Plan (Continued) Net OPEB Liability (Continued)
The long-term expected rate of return on OPEB plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class . These ranges are combined to produce the long- term expected rate of return by weighting the expected future r eal rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset are summarized in the following table:

Asset Class

Target
Allocation
Long-Term
Expected Real
Rate of Return

Global equity 34.0% 4.50%
Fixed income 41.0% 2.20%
TIPS 5.0% 1.30%
REITS 17.0% 3.90%
Commodities 3.0% 1.20%
Total 100%
Discount Rate
The discount rate used to measure the total OPEB liability was 5.80 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current activ e and inactive employees and beneficiaries.

Therefore, the long-term expected rate of return on OPEB plan i nvestments was applied to all periods of projects benefit payments to determine the total OPEB liability.

Changes in the OPEB Liability (Asset)
The changes in the net OPEB liability (asset) for the Plan are as follows:

Increase (Decrease)
Total
OPEB
Liability
(a)
Plan
Fiduciary
Net Position
(b)
N e t O P E B
Liability/
(Asset)
(c)=(a)-(b)
Balance at Fiscal Year Ending 6/30/21
Measurement Date 6/30/12 $141,793

$186,203

$(44,410)
Changes During the Period:

Service Cost 41,998 - 41,998
Interest Cost 12,130 - 12,130
Actual and Expected Experience Difference (56,729) - (56,220) Changes of Assumptions 14,304 - 14,304
Contributions - Employe
r - 47,000 (47,000)
Net Investment Income - (27,856) 27,856
Benefit Payments - - -
Administrative Expense - (250) 250
Net Changes 11,703 18,894 (7,191)
Balance at Fiscal Year Ending 6/30/22
Measurement Date 6/30/21 $153,496

$205,097

$(51,601)

698

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
53 Note 10 – Other Post-Employment Benefit (OPEB) Plan (Continued) Sensitivity of the Total OPEB Liability (Asset) to Changes in the Discount Rate The following presents the net OPEB liability (asset) of the Ci ty if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

Current
1% Decrease Discount Rate 1% Increase

4.80% 5.80% 6.80%
$(19,177) $(51,601) $(77,275)
Sensitivity of the Total OPEB Liability (Asset) to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability (asset) of the Ci ty if it were calculated using health care cost trend rates that are one percentage point lower or one percentage poi nt higher than the curre nt rate, for measurement period ended June 30, 2022:

Current Healthcare Cost
1% Decrease Tren t Rates 1% Increase

4.40% 5.40% 6.40%
$(86,411) $(51,601) $(4,157)
OPEB Plan Fiduciary Net Position
CERBT issues a publicly available financial report that may be obtained from the California Public Employees Retirement System Executive Office, 400 P Street, Sacramento, California 95814.

Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time.

Amounts are first recognized in OPEB expense for the year the g ain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resour ces related to OPEB and are to be recognized in future OPEB expense.

The recognition period differs depending on the source of the gain or loss:

Net deferred outflow of resources related to OPEB plan 5 years All other amounts Expected average remaining service
lifetime (EARSL)

699

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
54 Note 10 – Other Post-Employment Benefit (OPEB) Plan (Continued) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2022, the City recognized OP EB expense of $43,222. As of fiscal year ended June 30, 2022, the City reported deferred outflows of resources related to OPEB from the following services:

Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Contributions subsequent to
measurement date

$ -

-
Change of assumptions 13,315 (1,339)
Difference between expected and
actual experience

12,846

(85,731)
Net difference between projected and
actual earnings on investments

25,072

Total $ 51,233 (87,070)
There were no deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date as the valuation was for the same reporting period. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Year Ended
June 30

2023 $ 2,314
2024 1,467
2025 1,600
2026 4,551
2027 (5,149)
Thereafter (40,620)
$(35,837)

Note 11 – Risk Management
The City is a member of the Public Entity Risk Management Autho rity (PERMA), a joint powers insurance authority formed under Section 990 of the California Government Code for the purpose of jointly funding programs of insurance coverage for its members. PERMA is comprised of thirty-one participating member agencies: twenty- two cities, three transit agencies and six special districts. T he City participates in the liability, property, auto physical damage, and crime insurance programs of PERMA.

The liability program provides c overage up to $50 million per o ccurrence for personal injury, bodily injury, property damage and public officials’ errors and omissions. The City has selected a $0 self-insured retention for this coverage and participates in risk sharing pools for losses up to $1 million, followed by PERMS’s membership in the CSAC Excess Insurance Authority (EIA) for $49 million of excess liability coverage.

The property insurance program is group purchased under a maste r property insurance policy with accumulated values from all participants effecting lower rates and broader coverage for members. The program covers real property, business personal prope rty, inland marine coverage fo r special mobile equipment and business interruption. Commercial propert y coverage is written on a repl acement cost basis and all risk, eliminating the traditional commercial “named peril” policy.

700

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
55 Note 11 – Risk Management (Continued)
The auto physical damage insuran ce program is also group purcha sed under a master insurance policy with accumulated values from all participants effecting lower rates for members. Auto physical damage coverage is written on an agreed amount basis.

The crime insurance program provides public employee dishonesty , forgery or alteration, and computer fraud coverage under a master insurance policy.

The City is insured with the State Compensation Insurance Fund for workers’ compensation claims. There is no deductible requirement for this coverage.

Note 12 – Net Position and Fund Equity
Fund Equity
The City has established certain fund balance designations to r eport the amounts in the following funds, which represent available spendable resources restricted, committed or assigned for a specific purpose:

General
Fund
Capital
Project
Fund
Non-major
Governmental
Funds

Total
Nonspendable
Prepaids $ 260,181 - 18,176 278,357 Total Nonspendable 260,181 - 18,176 278,357 Restricted
Street maintenance/projects - - 16,582,198 16,582,198
Lighting and landscape maintenance - - 4,039,186 4,039,186 AQMD projects - - 513,467 513,467
Capital projects city facilities - 2,908,958 1,129,170 4,038,128 Fire operations/improvements 14,473,114 - - 14,473,114
Other purposes - - 16,106 16,106 Total Restricted 14,473,114 2,908,958 22,280,127 39,662,199 Committed
Civic Center and Library 58,994,529 - - 58,994,529
Police substation reserve 4,000,000 - - 4,000,000 Police stabilization rate increase
stabilization 1,000,000 -

- 1,000,000
Pension liability 1,620,500 - - 1,620,500
Third fire station project reserve 8,000,000 - - 8,000,000 Hammer Place land acquisition 1, 840,000 - - 1,840,000 Equipment purchase, fire truck 1,500,000 - - 1,500,000 Fire station 27 storage facility 2,000,000 - - 2,000,000 Total Committed 78,955,029 - - 78,955,029 Unassigned 16,868,609 - (760,453) 16,108,156 Totals $110,566,933 2,908,958 21,537,850 135,003,741

701

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
56 Note 12 – Net Position and Fund Equity (Continued)
Net Position
The details of the restricted other purposes in the Statement of Net Position are presented below:

Statement of
Net Position

Benefit Assessment $ 13,403
AQMD Projects 513,467
PEG Grant 2,703
$ 529,573
The following had a deficit fund balance at June 30, 2022. Thes e deficits are expected to be eliminated through future revenues.

Variance
Final with Final
Budget Actual Budget

General Fund
Current:

General government $ 9,188,196 9,409,171 (220,975)
Revenue neutrality 515,000 524,455 (9,455
Other nonmajor governmental funds:

AQMD Trust 71,722 116,512 (44,790)
Supplemental Law Enforcement Services - 165,428 (165,4 28) Lighting and Landscape Maintenance 389,492 403,540 (14,048) Development Impact Fees - 242 (242)

Note 13 – Joint Ventures
The Western Riverside County Regional Conservation Authority (“Authority”) was created in 2004 to protect 146 native species of plants and animals and preserving a half mill ion acres of their habitat. Resolution 10-28, signed October 1, 2010, authorized the City Manager to pursue membersh ip in the Riverside Conservation Authority, which would also fulfil one of the LAFCO’s conditions of incorp oration for the City. Resolution 10-48, signed December 8, 2010, authorized the Mayor to sign the Joint Powers Agreement with the Riverside Conservation Authority and the agreement with the U.S. Fish and Wildlife Service and California Department of Fish and Game relating to the implementation of the Western Riverside County Multiple Species Habitat Conservation Plan.

There will also be some additiona l (and unquantifiable) expense s associated with the City’s interaction with the Authority. However, these additional expenses are expected to b e relatively minor. There will be staff costs associated with locally implementing the program, which will be borne by the general fund for City projects and for the periodic reports to the Authority, and by landowners an d developers through the City’s full cost recovery program for private development applications. Copies of the Authority’s annual financial report may be obtained from the Western Riverside County Regional Conservation Authori ty Riverside Centre Building at 3403 10th Street, Suite 320, Riverside, CA 92501.

702

CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
57 Note 14 – Tax Abatement Agreement
The City entered into a twenty-year agreement with Tarpon Prope rty Ownership 2 LLC on November 9, 2016 (amended on August 21, 2017) to reimburse for infrastructure im provements up to $4,500,000 relating to the Goodman Commerce Center. The re imbursements are to be paid by t he City from 50% of all sales tax revenues derived from the retailers’ sales. During the year, the City paid the remaining balance of $2,559,045.

Note 15 – Commitments and Contingencies
On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures wo rldwide. The pandemic continued subsequent to year end with cer tain restrictions required by th e Governor of California, as well as local governments, which may affect revenue sources and also caused subsequent stock market volatility. The duration of the pandemic and the impact of COVID-19 on the City’s operat ional and financial performance is uncertain at this time.

Note 16 – Restatement

Governmental
Activities
Net position at July 1, 2021, as originally reported $345,299,51 5 Adjustment for overstated CIP capital assets
recorded in prior periods.

1,428,376
Adjustment for overstated depreciation on
capital assets recorded in prior periods.

(51,727)
Net position at July 1, 2021, as restated $344,456,203

Note 17 – Subsequent Events
Management has evaluated subse quent events through December 20, 2022 which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the City.

703
58 REQUIRED SUPPLEMENTARY

INFORMATION (UNAUDITED)
704
June 30, 2021 1 June 30, 2020 1 June 30, 2019 1 June 30, 2018 1 June 30, 2017 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2021-22 2020-21 2019-20 2018-19 2017-18
City's Proportion of the Net
Pension Liability/(Asset) -0.00860% 0.00180% 0.00128% 0.00077% 0.000 89% City's Proportionate
share of the Net Pension
Liability/(Asset) (163,759) $ 73,969 $ 51,218 $ 29,187 $ 35,121 $ City's Covered payrol
l 2,588,113$ 2,154,841 $ 1,479,268 $ 809,185 $ 578,739 $ City's Proportionate Share
of the Net Pension (Asset)
as a Percentage of its
covered payrol
l -6.3% 3.43% 3.46% 3.61% 6.07%
Plan's Proportionate Share
of the Fiduciary Net
Position as a Percentage of
the Total Pension Liability 110.9% 92.99% 91.41% 95.15% 92.14% June 30, 2016
1 June 30, 2015 1 June 30, 2014 1
Fiscal Year Fiscal Year Fiscal Year
2016-17 2015-16 2014-15
City's Proportion of the Net
Pension Liability/(Asset) 0.00041% -0.00007% 0.00032%
City's Proportionate
share of the Net Pension
Liability/(Asset) 14,412 $ (1,555) $ 19,852 $ City's Covered payrol
l 575,155$ 628,256 $ 534,402 $
City's Proportionate Share
of the Net Pension (Asset)
as a Percentage of its
covered payrol
l 2.51% -0.25% 3.71%
Plan's Proportionate Share
of the Fiduciary Net
Position as a Percentage of
the Total Pension Liability 95.12% 100.84% 84.01%
Notes to Schedule:

Benefit Changes: In 2022, there was no benefit terms modifed.

Changes in Assumptions: For the 2017 fiscal year the discount rate was changed from 7.65 percent to 7.15 percent. 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The Measurement date 2014 was the first year of implementation, therefore only eight years are presented.

CITY OF EASTVALE
Schedule of City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
Last Ten Fiscal Years
CalPERS Pension Plan
59 705
2021-22 2020-21 2019-20 2018-19 2017-18
Actuarially determined contribution 2
342,270$ 253,472 $ 167,959 $ 121,361 $ 56,387 $ Contributions in relation to the
actuarially determined contributions 2
(342,270)$ (253,472) $ (167,959) $ (121,361) $ (56,387) $ Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll 2
3,701,391$ 2,577,036 $ 2,154,841 $ 1,479,268 $ 809,185 $ Contributions as a percentage of
covered employee payroll 9.25% 9.84% 7.79% 8.20% 6.97%
2016-17 2015-16 2014-15
Actuarially determined contribution 2
41,112$ 38,874 $ 38,818 $
Contributions in relation to the
actuarially determined contributions 2
(41,112)$ (38,874) $ (38,818) $
Contribution deficiency (excess) - $ - $ - $ Covered payroll 2
578,739$ 575,155 $ 628,256 $
Contributions as a percentage of
covered employee payroll 7.10% 6.76% 6.18%
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The fiscal year 2014 was the first year of implementation, therefore only eight years are presented. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer.

Notes to Schedule
Valuation Date 6/30/2020
Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Level Percent of Payroll
Average Remaining Perio
d 7 Years as of the Valuation Date
Asset Valuation Method 15 Year Smoothed Market
Discount Rate 7.15%
Salary Increases Various by entry age and service
Inflation 2.50%
Payroll Growth 2.75%
Individual Salary Growth A merit scale varying by duration of em ployment coupled with as assumed annual inflation growth of 2.75% and an annual production growth of 0.25%.

CITY OF EASTVALE
Schedule of City's Contributions - Pensions
CalPERS Pension Plan
For the Year Ended June 30, 2022
Last Ten Fiscal Years 1
60 706
2022 2021 2020 2019 2018
Total OPEB Liability
Service cost 41,998 $ 40,676 $ 22,958 $ 26,279 $ 19,154 $ Interest on the total OPEB Liability 12,130 8,779 7,903 7,859 2,677 Actual and expected experience difference (56,729) - (35,443) (2,979) (3,628) Changes in assumptions 14,304 - (1,711) (2,964) - Changes in benefit terms - - - - - Benefit payments 2
- - - - - Net change in total OPEB liability 11,703 49,455 (6,293) 28,195 18,203 Total OPEB liability - beginning 141,793 92,338 98,631 70,436 52,233 Total OPEB liability - ending (a) 153,496 $ 141,793 $ 92,338 $ 98,631 $ 70,436 $ Plan Fiduciary Net Position
Contribution - employer 47,000 $ 42,800 $ 24,000 $ - $ - $ Net investment income (27,856) 24,047 7,205 16,882 3,730 Benefit payments - - - - - Administrative expense (297) (277) (130) (126) (74) Net change in plan fiduciary net position 18,847 66,570 31,075 16,756 3,656 Plan fiduciary net position - beginning 186,250 119,680 88,605 71,849 68,193 Plan fiduciary net position - ending (b) 205,097$ 186,250 $ 119,680 $ 88,605 $ 71,849 $ Net OPEB liability (asset) - ending (a)-(b) (51,601)$ (44,457) $ (27,342) $ 10,026 $ (1,413) $ Covered-employee payroll 2,744,186 $ 2,664,258 $ 2,257,055 $ 2,105,545 $ 1,113,007 $ Net OPEB liability as a percentage
of covered-employee payroll -1.88% -1.67% -1.21% 0.48% -0.13% Notes to Schedule
Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available.
1 Fiscal year 2017-18 was the first year of implementation, therefore only five years are shown.

CITY OF EASTVALE
For the Year Ended June 30, 2022
Last 10 Fiscal Years 1
As of the fiscal year ending June 30,
61 Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios 707
2022 2021 2020 2019 2018
Valuation Date 6/30/2021 6/30/2019 6/30/2017 6/30/2017 6/30/2015 Actuarially determined contribution 45,350 $ 44,029 $ 42,747 $ - - Contributions in relation to the
actuarially determined contributions (47,000)$ (42,800) $ (24,000) $ - - Contribution deficiency (excess) (1,650) $ 1,229 $ 18,747 $ - - Covered-employee payroll 2,744,186 $ 2,664,258 $ 2,257,055 $ 2,105,545 1,113,007 Contributions as a percentage of
covered employee payroll 1.71% 1.61% 1.06% 0.00% 0.00%
Notes to schedule:

Valuation Date 12/31/2021 12/31/2019 12/31/2019 6/30/2019 6/30/2018 Actuarial Cost Method Entry Age
Normal
Entry Age
Normal
Entry Age
Normal
Entry Age
Normal
Entry Age
Normal
Amortization Method Level Dollar Level Dollar Level Dollar n/a n/a Amortization Period Open 30
Year Period
Open 30
Year Period
Open 30
Year Period n/a n/a
Asset Valuation Method Market Value Market Value Market Value Marke t Value Market Value Inflation 2.50% 2.50% 2.50% 1.75% 1.75%
Healthcare Cost-Trend Rates 5.4% in 2021
fluctuating to
4% by 2076

5.4% in
2021
fluctuating
to 4% by
2076

2.50% 3.75%
Salary Increases 3.00% 3.00% 3.00% 2.75% 2.50%
Investment rate of return 6.50% 6.50% 6.50% 6.50% 3.75% Retirement age 50 to 75 50 to 75 50 to 75
60 or
eligibility
age if later
60 or
eligibility age
if later
Mortality
CalPERS
2017
Experience
Study
CalPERS
2017
Experience
Study
CalPERS
2017
Experience
Study
RP 2014
Mortality
Table
CalPERS 2014
Experience
Study
Mortality Improvement MW Scale
2020
MW Scale
2020
MW Scale
2020 n/a n/a
1 Fiscal year 2017-18 was the first year of implementation, therefore only five years are shown.

CITY OF EASTVALE
For the Year Ended June 30, 2022
Last 10 Fiscal Years 1
As of the fiscal year ending June 30,
62 Schedule of Plan Contributions - OPEB Plan
708
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes 24,091,583 $ 65,041,583 $ 58,752,698 $ (6,288,885) $ Licenses, permits and fees 3,022,410 3,011,910 2,427,776 (584,134) Fines and forfeitures 498,500 498,500 552,598 54,098 Intergovernmental 5,469,611 5,469,611 5,597,716 128,105 Investment earnings (loss) 595,000 595,000 (92,197) (687,197) Other 64,100 694,100 750,594 56,494 Total revenues 33,741,204 75,310,704 67,989,185 (7,321,519)

EXPENDITURES
Current:

General government 6,116,242 9,188,196 9,409,171 (220,975) Public safety 18,607,235 19,585,909 17,394,916 2,190,993 Public works 696,744 697,493 368,711 328,782 Community development 6,139,753 6,187,435 5,269,010 918,425 Revenue neutrality 515,000 515,000 524,455 (9,455) Capital outlay 40,000 101,000 90,074 10,926 Debt service:

Principal - - 271,400 (271,400) Interest and fiscal charges -
- 16,749 (16,749)
Total expenditures 32,114,974 36,275,033 33,344,486 2,930,547

REVENUES OVER (UNDER)
EXPENDITURES 1,626,230 39,035,671 34,644,699 (10,252,066)

OTHER FINANCING
SOURCES (USES):

Transfers in 283,287 7,643,506 7,414,812 228,694 Transfers out (830,144) (6,750,668) (6,594,781) (155,887)

Total other financing sources (uses) (546,857) 892,838 820,031 72,807 NET CHANGE IN FUND BALANCE 1,079,373 39,928,509 35,464,730 (10,179,259) Fund balance, beginning of year 75,092,203 75,092,203 75,092,203 - Fund balance, end of year 76,171,576 $ 115,020,712 $ 110,556,933 $ (10,179,259) $

CITY OF EASTVALE
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2022
Budgeted Amounts
63 709
64 CITY OF EASTVALE
Notes to the Required Supplementary Information
For the Year Ended June 30, 2022

Note 1 – Budgets and Budgetary Accounting Data

The City Council approves each year’s budget submitted by the C ity Manager prior to the beginning of the fiscal year.

Public hearings are conducted prior to the adoption by City Council.

Total appropriations for each fund may only be increased or dec reased by the City Council by passage of a resolution amending the budget. During the year, there were no budgetary a ppropriation increases, and no budgetary revenue increases.

The City Manager has authority to adjust the amounts appropriated between the funds and activities of a fund, provided, however, that the total appropriations for each fund may not exceed the amounts provided in the budget resolution.

The level on which expenditures may not legally exceed appropriations is the fund level.

The City Manager is also authorized to approve continuing appropriations at year-end for capital improvement projects and other expenditures previously approved by the City Council.

Budgets for the various funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).

Budgets were legally adopted for all governmental funds with th e exception of the Special Revenue Fund, Law Enforcement Grants.

710

SUPPLEMENTARY INFORMATION
65 711
66 CITY OF EASTVALE
Nonmajor Governmental Funds
For the Year Ended June 30, 2022

Special Revenue Funds

Gas Tax Fund - This fund is used to account for the maintenance, rehabilitation, or improvement of public streets of the City.

Financing is through the State Highway Users Tax Sections 2103, 2105, 2106, 2107, and 2107.5 of the California Streets and Highways Code and Road Maintenance and Rehabilitation Program S ection 2032(h) of the California Streets and Highways Code.

American Rescue Plan Grant Fund - This fund is used to account for the receipts and expenditures of grant funding used to recover from the impacts of the COVID-19 pandemic.

Measure A Fund - This fund is used to account for the voter approved ½ cent sale s tax to fund transportation improvements including the alteration, construction and reconstruction maintenance of the streets and roads of the City.

AQMD Trust Fund - This fund is used to account for the City’s portion of motor ve hicle registration fees collected pursuant to AB2766 passed during the 1990 State legislative session. This fee was levied to fund programs to reduce air pollution from mobile sources such as cars, trucks, and buses. It also included funds allocated through a competitive process as a result of this legislation.

Supplemental Law Enforcement Services Fund - This fund is used to account for the receipts and expenditures of funds resulting from the Citizen’s Option for Public Safety (COPS) program, a state funded program.

Lighting and Landscape Maintenance Fund - This fund is used to account for the costs of operation, mainte nance, landscaping, and lighting of the City. Funding is provided by a ssessments specific to parcels in the various maintenance districts.

Benefit Assessment Fund - This fund is used to account for funds received from assessments from individual property owners and the expenditures for certain costs of operation and street related maintenance.

Road and Bridge Benefit District Fund - This fund is used to account for funds received from develope r fees and the expenditures for the maintenance and improvements of roads and bridges.

CDBG Fund - This fund is used to account for the Community Development Bloc k Grant Funds received from U.S.

Department of Housing and Urban Development. The funds must be expended to accomplish the elimination of blight or to benefit low and moderate income persons by providing loans or grants for various programs.

Miscellaneous Grants Fund - This fund is used to account for the receipts and expenditures of miscellaneous grants not accounted for in a separate fund.

Development Impact Fees Fund - This fund is used to account for the receipt of fees for develo pment related activities such as infrastructure and public facilities.

PEG Grant Fund - This fund is used to account for the receipts and expenditures of public education grants related activities.

Transportation Uniform Mitigation Fee (TUMF) Reimbursement Fund - This fund provides transportation and transit infrastructure that mitigates the impact of new growth in western Riverside County.

Area Drainage Plan Fund - This fund is to track the closure and final disbursement of Riv erside County’s Eastvale’s Area Drainage Plan. Disbursements from the County for the final balance were paid to Eastvale and deposited into this fund.

Transportation Development Act (TDA) Fund - This fund is used to account for revenues received under the Transportation Development Act. These funds are used for improvements to City streets.

Capital Project Funds

Capital Projects Fund (Capital Projects ) is used to account for the financial resources to be used for t he acquisition or construction of capital facilities.

712
American
Rescue
Plan AQMD
Gas Tax Grant Measure A Trust
Cash and investments 3,986,159 $ - $ 4,497,644$ 490,738 $ Receivables:

Accounts - - - - Intergovernmental 377,352 - 553,759 22,242 Interest 3,990 - 4,669 487 Prepaid costs -
- - -
Total assets 4,367,501$ - $ 5,056,072$ 513,467 $ Liabilities:

Accounts payable 413,428 $ - $ 407,446$ - $ Due to other funds - - - - Total liabilities 413,428 - 407,446 - Deferred inflows of resources:

Unavailable revenue - - - - Total deferred inflows of resources - - - - Fund Balances:

Nonspendable - - - - Restricted for:

Street maintenance/projects 3,954,073 - 4,648,626 - Lighting and landscape maintenance - - - - AQMD projects - - - 513,467 Capital projects city facilities - - - - Other purposes - - - - Unassigned -
- - -
Total fund balances 3,954,073 - 4,648,626 513,467 Total liabilities, deferred inflows
and fund balances 4,367,501$ - $ 5,056,072$ 513,467 $ Special Revenue Funds
ASSETS

RESOURCES, AND FUND BALANCES

LIABILITIES, DEFERRED INFLOWS OF

CITY OF EASTVALE
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
67 713
Supplemental Road and
Law Lighting and Bridge
Enforcement Landscape Benefit Benefit
Services Maintenance Assessment District
Cash and investments - $ 2,461,006$ 13,449 $ 6,792,661$ Receivables:

Accounts - - - - Intergovernmental - 1,584,542 96 - Interest - 3,216 16 6,496 Prepaid costs -
- - -
Total assets -$ 4,048,764$ 13,561 $ 6,799,157$ Liabilities:

Accounts payable - $ 8,667$ 158 $ 129,123$ Due to other funds - - - - Total liabilities - 8,667 158 129,123 Deferred inflows of resources:

Unavailable revenue - 911 - - Total deferred inflows of resources - 911 - - Fund Balances:

Nonspendable - - - - Restricted for:

Street maintenance/projects - - - 6,670,034 Lighting and landscape maintenance - 4,039,186 - - AQMD projects - - - - Capital projects city facilities - - - - Other purposes - - 13,403 - Unassigned -
- - -
Total fund balances - 4,039,186 13,403 6,670,034 Total liabilities, deferred inflows
and fund balances -$ 4,048,764$ 13,561 $ 6,799,157$ Special Revenue Funds
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

CITY OF EASTVALE
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
68 714
Development
Miscellaneous Impact PEG
CDBG Grants Fees Grant
Cash and investments - $ - $ 1,546,473$ 2,298 $ Receivables:

Accounts - - 4,900 - Intergovernmental - 105,394 - 405 Interest - - 1,573 - Prepaid costs -
18,176 - -
Total assets -$ 123,570$ 1,552,946$ 2,703 $ Liabilities:

Accounts payable - $ 76,511$ - $ - $ Due to other funds 7 61,844 - - Total liabilities 7 138,355 - - Deferred inflows of resources:

Unavailable revenue - - - - Total deferred inflows of resources - - - - Fund Balances:

Nonspendable - 18,176 - - Restricted for:

Street maintenance/projects - - 475,281 - Lighting and landscape maintenance - - - - AQMD projects - - - - Capital projects city facilities - - 1,077,665 - Other purposes - - - 2,703 Unassigned (7)
(32,961) - -
Total fund balances (7) (14,785) 1,552,946 2,703 Total liabilities, deferred inflows
and fund balances -$ 123,570$ 1,552,946$ 2,703 $

CITY OF EASTVALE
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Special Revenue Funds
69 715
Total
Area Nonmajor
Drainage Governmental
TUMF Plan TDA Funds
Cash and investments - $ 888,278$ - $ 20,678,706$ Receivables:

Accounts - - - 4,900 Intergovernmental - - - 2,643,790 Interest - 911 - 21,358 Prepaid costs -
- - 18,176
Total assets -$ 889,189$ - $ 23,366,930$ Liabilities:

Accounts payable 4,937 $ 3,500 $ 65,341 $ 1,109,111$ Due to other funds 620,230 - 36,977 719,058 Total liabilities 625,167 3,500 102,318 1,828,169 Deferred inflows of resources:

Unavailable revenue - - - 911 Total deferred inflows of resources - - - 911 Fund Balances:

Nonspendable - - - 18,176 Restricted for:

Street maintenance/projects - 885,689 - 16,633,703 Lighting and landscape maintenance - - - 4,039,186 AQMD projects - - - 513,467 Capital projects city facilities - - - 1,077,665 Other purposes - - - 16,106 Unassigned (625,167)
- (102,318) (760,453)
Total fund balances (625,167) 885,689 (102,318) 21,537,850 Total liabilities, deferred inflows
and fund balances -$ 889,189$ - $ 23,366,930$

CITY OF EASTVALE
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
70 716
American
Rescue
Plan AQMD
Gas Tax Grant Measure A Trust
REVENUES:

Taxes 1,376,892 $ - $ - $ - $ Intergovernmental 1,607,681 7,360,219 2,188,250 140,845 Development impact fees - - - - Assessments - - - - Investment earnings (loss) (61,774) - (69,987) (7,636) Other - - - - Total revenues 2,922,799 7,360,219 2,118,263 133,209 EXPENDITURES:

Current:

General government - - - 8,694 Public safety - - - - Public works 1,136,555 - 100,204 - Capital outlay 2,519,310 - 1,719,976 107,818 Debt service:

Principal - - - - Interest and fiscal charges - - - - Total expenditures 3,655,865 - 1,820,180 116,512

REVENUES OVER
(UNDER) EXPENDITURES (733,066) 7,360,219 298,083 16,697 OTHER FINANCING SOURCES (USES):

Transfers in - - - 2,979 Transfers out - (7,360,219) - - Total other financing sources (uses) - (7,360,219) - 2,979 NET CHANGE IN FUND BALANCES (733,066) - 298,083 19,676 Fund balances (deficits), beginning of year 4,687,139 - 4,350,543 493,791 Fund balances (deficits), end of year 3,954,073 $ - $ 4,648,626$ 513,467 $

CITY OF EASTVALE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
71 717
Supplemental Road and
Law Lighting and Bridge
Enforcement Landscape Benefit Benefit
Services Maintenance Assessment District
REVENUES:

Taxes - $ - $ - $ - $ Intergovernmental 165,428 - - - Development impact fees - - - - Assessments - 2,342,328 4,972 457,825 Investment earnings (loss) - (46,758) (233) (102,098) Other - - - - Total revenues 165,428 2,295,570 4,739 355,727 EXPENDITURES:

Current:

General government - - - - Public safety 165,428 - - - Public works - 403,540 5,003 1,666 Capital outlay - - - 129,439 Debt service:

Principal - - - - Interest and fiscal charges - - - - Total expenditures 165,428 403,540 5,003 131,105

REVENUES OVER
(UNDER) EXPENDITURES - 1,892,030 (264) 224,622 OTHER FINANCING SOURCES (USES):

Transfers in - 23,800 4,936 - Transfers out - (54,608) - - Total other financing sources (uses) - (30,808) 4,936 - NET CHANGE IN FUND BALANCES - 1,861,222 4,672 224,622 Fund balances (deficits), beginning of year - 2,177,964 8,731 6,445,412 Fund balances (deficits), end of year - $ 4,039,186$ 13,403 $ 6,670,034$

CITY OF EASTVALE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
72 718
Development
Miscellaneous Impact PEG
CDBG Grants Fees Grant
REVENUES:

Taxes - $ - $ - $ - $ Intergovernmental - 667,946 - - Development impact fees - - 270,913 - Assessments - - - - Investment earnings (loss) - - (25,680) - Other - - - 2,188 Total revenues - 667,946 245,233 2,188 EXPENDITURES:

Current:

General government - 183,750 - - Public safety - - - - Public works - - - - Capital outlay - 330,208 242 - Debt service:

Principal - 5,888 - - Interest and fiscal charges - 171 - - Total expenditures - 520,017 242 -

REVENUES OVER
(UNDER) EXPENDITURES - 147,929 244,991 2,188 OTHER FINANCING SOURCES (USES):

Transfers in - 81 - - Transfers out - - - - Total other financing sources (uses) - 8 1 - - NET CHANGE IN FUND BALANCES - 148,010 244,991 2,188 Fund balances (deficits), beginning of year (7) (162,795) 1,307,955 515 Fund balances (deficits), end of year (7) $ (14,785)$ 1,552,946$ 2,703 $

CITY OF EASTVALE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
73 719
Total
Area Nonmajor
Drainage Governmental
TUMF Plan TDA Funds
REVENUES:

Taxes - $ - $ - $ 1,376,892$ Intergovernmental - - - 12,130,369 Development impact fees - - - 270,913 Assessments - - - 2,805,125 Investment earnings (loss) - (14,315) - (328,481) Other - - - 2,188 Total revenues - (14,315) - 16,257,006 EXPENDITURES:

Current:

General government - - - 192,444 Public safety - - - 165,428 Public works 28,878 - 102,318 1,778,164 Capital outlay 315,189 3,500 - 5,125,682 Debt service:

Principal - - - 5,888 Interest and fiscal charges - - - 171 Total expenditures 344,067 3,500 102,318 7,267,777

REVENUES OVER
(UNDER) EXPENDITURES (344,067) (17,815) (102,318) 8,989,229 OTHER FINANCING SOURCES (USES):

Transfers in - - - 31,796 Transfers out - - - (7,414,827) Total other financing sources (uses) - - - (7,383,031) NET CHANGE IN FUND BALANCES (344,067) (17,815) (102,318) 1,606,198 Fund balances (deficits), beginning of year (281,100) 903,504 - 19,931,652 Fund balances (deficits), end of year (625,167) $ 885,689 $ (102,318)$ 21,537,850$

CITY OF EASTVALE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
74 720
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Taxes 1,291,400 $ 1,376,892 $ 85,492 $
Intergovernmental 1,690,150 1,607,681 (82,469) Investment earnings (loss) 48,000 (61,774) (109,774) Total revenues 3,029,550 2,922,799 (106,751)

EXPENDITURES
Current:

Public works 1,289,000 1,136,555 152,445
Capital outlay 3,842,638
2,519,310 1,323,328
Total expenditures 5,131,638 3,655,865 1,475,773

REVENUES OVER (UNDER)
EXPENDITURES (2,102,088) (733,066) (1,582,524)

OTHER FINANCING
SOURCES (USES):

Transfers out (138,412) - (138,412)

Total other financing sources (uses) (138,412) - (138,412) NET CHANGE IN FUND BALANCE (2,240,500) (733,066) (1,720,936) Fund balance, beginning of year 4,687,139 4,687,139 - Fund balance, end of year 2,446,639 $ 3,954,073 $ (1,720,936) $

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
75 721
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Intergovernmental 3,680,110 $ 7,360,219 $ 3,680,109 $ Total revenues 3,680,110 7,360,219 3,680,109

REVENUES OVER (UNDER)
EXPENDITURES 3,680,110 7,360,219 3,680,109

OTHER FINANCING
SOURCES (USES):

Transfers out (7,360,219) (7,360,219) -

Total other financing sources (uses) (7,360,219) (7,360,219) - NET CHANGE IN FUND BALANCE (3,680,109) - 3,680,109 Fund balance, beginning of year - - - Fund balance, end of year (3,680,109) $ - $ 3,680,109$

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual America Rescue Plan Grant Special Revenue Fund
For the Year Ended June 30, 2022
76 722
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Intergovernmental 1,472,000 $ 2,188,250 $ 716,250 $ Investment earnings (loss) 35,000 (69,987) (104,987) Total revenues 1,507,000 2,118,263 611,263

EXPENDITURES
Current:

Public works 78,000 100,204 (22,204) Capital outlay 3,477,989
1,719,976 1,758,013
Total expenditures 3,555,989 1,820,180 1,735,809

REVENUES OVER (UNDER)
EXPENDITURES (2,048,989) 298,083 (1,124,546)

OTHER FINANCING
SOURCES (USES):

Transfers out 120,560 - 120,560

Total other financing sources (uses) 120,560 - 120,560 NET CHANGE IN FUND BALANCE (1,928,429) 298,083 (1,003,986) Fund balance, beginning of year 4,350,543 4,350,543 - Fund balance, end of year 2,422,114 $ 4,648,626 $ (1,003,986) $

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure A Special Revenue Fund
For the Year Ended June 30, 2022
77 723
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Intergovernmental 149,865 $ 140,845 $ (9,020) $ Investment earnings (loss) 1,000 (7,636) (8,636) Total revenues 150,865 133,209 (17,656)

EXPENDITURES
Current:

General Government 10,000 8,694 1,306 Capital outlay 61,722
107,818 (46,096)
Total expenditures 71,722 116,512 (44,790)

REVENUES OVER (UNDER)
EXPENDITURES 79,143 16,697 27,134

OTHER FINANCING
SOURCES (USES):

Transfers in - 2,979 (2,979)

Total other financing sources (uses) - 2,979 (2,979) NET CHANGE IN FUND BALANCE 79,143 19,676 24,155 Fund balance, beginning of year 493,791 493,791 - Fund balance, end of year 572,934 $ 513,467 $ 24,155 $

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual AQMD Trust Special Revenue Fund
For the Year Ended June 30, 2022
78 724
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Intergovernmental 120,000 $ 165,428 $ 45,428 $ Total revenues 120,000 165,428 45,428

EXPENDITURES
Current:

Public safety - 165,428 (165,428) Total expenditures - 165,428 (165,428) NET CHANGE IN FUND BALANCE 120,000 - 210,856 Fund balance, beginning of year - - - Fund balance, end of year 120,000 $ - $ 210,856$

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Supplemental Law Enforcement Services Special Revenue Fund For the Year Ended June 30, 2022
79 725
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Assessments 337,460 $ 2,342,328 $ 2,004,868 $
Investment earnings (loss) 21,930 (46,758) (68,688) Total revenues 359,390 2,295,570 1,936,180

EXPENDITURES
Current:

Public works 389,492 403,540 (14,048) Total expenditures 389,492 403,540 (14,048)

REVENUES OVER (UNDER)
EXPENDITURES (30,102) 1,892,030 1,950,228

OTHER FINANCING
SOURCES (USES):

Transfers in 8,940 23,800 (14,860) Transfers out (22,275) (54,608) 32,333

Total other financing sources (uses) (13,335) (30,808) 17,473 NET CHANGE IN FUND BALANCE (43,437) 1,861,222 1,967,701 Fund balance, beginning of year 2,177,964 2,177,964 - Fund balance, end of year 2,134,527 $ 4,039,186 $ 1,967,701 $

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Lighting and Landscape Maintenance Special Revenue Fund For the Year Ended June 30, 2022
80 726
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Assessments 4,918 $ 4,972 $ 54 $
Investment earnings (loss) - (233) (233) Total revenues 4,918 4,739 (179)

EXPENDITURES
Current:

Public works 12,015 5,003 7,012 Total expenditures 12,015 5,003 7,012

REVENUES OVER (UNDER)
EXPENDITURES (7,097) (264) (7,191)

OTHER FINANCING
SOURCES (USES):

Transfers in - 4,936 (4,936) Transfers out (8,067) - (8,067)

Total other financing sources (uses) (8,067) 4,936 (13,003) NET CHANGE IN FUND BALANCE (15,164) 4,672 (20,194) Fund balance, beginning of year 8,731 8,731 - Fund balance, end of year (6,433) $ 13,403 $ (20,194) $

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Benefit Assessment Special Revenue Fund
For the Year Ended June 30, 2022
81 727
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Assessments - $ 457,825$ 457,825 $
Investment earnings (loss) 80,000 (102,098) (182,098) Total revenues 80,000 355,727 275,727

EXPENDITURES
Current:

Public works - 1,666 (1,666) Capital outlay 240,000
129,439 110,561
Total expenditures 240,000 131,105 108,895 NET CHANGE IN FUND BALANCE (160,000) 224,622 166,832 Fund balance, beginning of year 6,445,412 6,445,412 - Fund balance, end of year 6,285,412 $ 6,670,034 $ 166,832 $

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Road and Bridge Benefit District Special Revenue Fund
For the Year Ended June 30, 2022
82 728
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Intergovernmental 165,000 $ - $ (165,000)$ Total revenues 165,000 - (165,000)

EXPENDITURES
Current:

Community development 100,000 - 100,000 Total expenditures 100,000 - 100,000 NET CHANGE IN FUND BALANCE 65,000 - (265,000) Fund balance (deficit), beginning of year (7) (7) - Fund balance (deficit), end of year 64,993 $ (7) $ (265,000)$

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual CDBG Special Revenue Fund
For the Year Ended June 30, 2022
83 729
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Intergovernmental 2,679,750 $ 667,946 $ (2,011,804)$ Total revenues 2,679,750 667,946 (2,011,804)

EXPENDITURES
Current:

General government 382,334 183,750 198,584 Capital outlay 2,435,652 330,208 2,105,444 Debt service:

Principal - 5,888 (5,888)
Interest -
171 (171)
Total expenditures 2,817,986 520,017 2,297,969

REVENUES OVER (UNDER)
EXPENDITURES (138,236) 147,929 (4,309,773)

OTHER FINANCING
SOURCES (USES):

Transfers in - 8 1 (81)

Total other financing sources (uses) - 8 1 (81) NET CHANGE IN FUND BALANCE (138,236) 148,010 (4,309,854) Fund balance (deficit), beginning of year (162,795) (162,795) - Fund balance (deficit), end of year (301,031) $ (14,785) $ (4,309,854)$

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Miscellaneous Grants Special Revenue Fund
For the Year Ended June 30, 2022
84 730
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Development impact fees 810,000 $ 270,913 $ (539,087) $ Investment earnings (loss) 10,000 (25,680) (35,680) Total revenues 820,000 245,233 (574,767)

EXPENDITURES
Capital outlay - 242 (242) Total expenditures - 242 (242)

REVENUES OVER (UNDER)
EXPENDITURES 820,000 244,991 (574,525)

OTHER FINANCING
SOURCES (USES):

Transfers out 16,400 - 16,400

Total other financing sources (uses) 16,400 - 16,400 NET CHANGE IN FUND BALANCE 836,400 244,991 (558,125) Fund balance, beginning of year 1,307,955 1,307,955 - Fund balance, end of year 2,144,355 $ 1,552,946 $ (558,125) $

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Development Impact Fees Special Revenue Fund
For the Year Ended June 30, 2022
85 731
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Other 500 $ 2,188 $ 1,688 $
Total revenues 500 2,188 1,688 NET CHANGE IN FUND BALANCE 500 2,188 1,688 Fund balance, beginning of year 515 515 - Fund balance, end of year 1,015 $ 2,703 $ 1,688 $

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual PEG Grant Special Revenue Fund
For the Year Ended June 30, 2022
86 732
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

EXPENDITURES
Current:

Public works - $ 28,878$ (28,878) $ Capital outlay 2,000,000
315,189 1,684,811
Total expenditures 2,000,000 344,067 1,655,933 NET CHANGE IN FUND BALANCE (2,000,000) (344,067) (1,655,933) Fund balance (deficit), beginning of year (281,100) (281,100) - Fund balance (deficit), end of year (2,281,100) $ (625,167) $ (1,655,933)$

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Transportation Uniform Mitigation Fee Special Revenue Fund For the Year Ended June 30, 2022
87 733
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment earnings (loss) 8,000 $ (14,315)$ (22,315) $ Total revenues 8,000 (14,315) (22,315)

EXPENDITURES
Capital outlay 300,000 3,500 296,500 Total expenditures 300,000 3,500 296,500 NET CHANGE IN FUND BALANCE (292,000) (17,815) (318,815) Fund balance, beginning of year 903,504 903,504 - Fund balance, end of year 611,504 $ 885,689 $ (318,815) $

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Area Drainage Plan Special Revenue Fund
For the Year Ended June 30, 2022
88 734
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Intergovernmental 432,500 $ - $ (432,500)$ Total revenues 432,500 - (432,500)

EXPENDITURES
Current:

Public works 432,500 102,318 330,182
Total expenditures 432,500 102,318 330,182 NET CHANGE IN FUND BALANCE - (102,318) (762,682) Fund balance, beginning of year - - - Fund balance (deficit), end of year - $ (102,318)$ (762,682) $

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Transportation Development Act Special Revenue Fund
For the Year Ended June 30, 2022
89 735
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment earnings (loss) 1,000 $ 10 $ (990)$ Other - 90,111 90,111
Total revenues 1,000 90,121 89,121

EXPENDITURES
Current:

Public works 438,500 109,862 328,638
Capital outlay 3,582,500 911,302 2,671,198 Debt service:

Principal 4,035,334 4,402,869 (367,535)
Interest and fiscal charges 242,298
107,850 134,448
Total expenditures 8,298,632 5,531,883 2,766,749

REVENUES OVER (UNDER)
EXPENDITURES (8,297,632) (5,441,762) (2,677,628)

OTHER FINANCING
SOURCES (USES):

Transfers in 6,330,652 6,563,000 (232,348)

Total other financing sources (uses) 6,330,652 6,563,000 (232,348) NET CHANGE IN FUND BALANCE (1,966,980) 1,121,238 (2,909,976) Fund balance, beginning of year 1,787,720 1,787,720 - Fund balance, end of year (179,260) $ 2,908,958 $ (2,909,976) $

CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Capital Projects Fund
For the Year Ended June 30, 2022
90 736

STATISTICAL

SECTION
737

STATISTICAL SECTION
91 738
92 STATISTICAL SECTION

This part of the City of Eastva le’s Annual Comprehensive Financ ial Report presents detailed information as a context for understanding what the information in the financial stateme nts, note disclosures, and required supplementary information say about the government’s overall financial health.

CONTENTS:

Page(s)
Financial Trends: these schedules contain trend information to help the reader understand how the City’s financial performance and well-being has changed over time .................................................................................................... 93 Revenue Capacity: these schedules contain trend information to help the reader assesses the factors affecting the City’s most significant revenue source, property tax .................................................................................................................................... 101 Debt Capacity: these schedules present information to help the reader assesses the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future ................................. 106 Demographic and Economic Information: these schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place .............................................................................. 111 Operating Information: these schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs ................................ 115 739
2013 2014 2015 2016
Governmental activities
Net Investment in Capital Assets 194,527$ 210,630 $ 221,512 $ 228,474 $ Restricted 7,280 1,699 20,399 22,945 Unrestricted 12,017 11,601 15,214 18,624 Total governmental activities net position 213,824$ 223,930 $ 257,125 $ 270,043 $ Notes:

Source: City of Eastvale Finance Department
City of Eastvale
Net Position by Component
Fiscal Year
Last Ten Fiscal Years
(accrual basis of accounting)
(amount expressed in thousands)
93 740
2017 2018 2019 2020 2021 2022
240,849$ 240,610 $ 244,370 $ 242,422 $ 248,213 $ 250,346 $ 23,718 30,842 27,279 33,310 35,396 39,662 21,957 31,424 35,577 37,979 61,691 96,368 286,524$ 302,876 $ 307,226 $ 313,711 $ 345,300 $ 386,375 $ City of Eastvale
Net Position by Component ‐ Continued
Last Ten Fiscal Years
Fiscal Year
(accrual basis of accounting)
(amount expressed in thousands)
94 741
2013 2014 2015 2016
Expenses
Governmental activities:

General government 1,736 $       1,801 $       1,917 $        2,367 $ Public Safety 6,689         8,889         9,685           10,669 Public works 6,501         6,752         7,604           7,817 Community development 2,067         2,309         2,620           2,903 Revenue neutralit
y 421            462             393               444
Interest expense ‐                  11               ‐                    ‐ Total governmental activities expenses 17,414      20,224       22,219         24,200 Total primary government expenses 17,414 $     20,224 $     22,219 $      24,200 $ Program Revenues
Governmental activities:

Charges for services
General government 55 55 5 ‐ Public Safety 413 479 5,722 6,002 Public Works ‐ ‐ 217 227 Community development 2,347 3,138 3,516 3,303 Operating contributions and grants 3,571 4,338 3,293 3,436 Capital contributions and grants 20,651 22,177 17,076 11,703 Total primary government program revenues 27,037 30,187 29,829 24,671 Total primary government program revenues 27,037$ 30,187 $ 29,829 $ 24,671 $ Total primary government net expense 9,623 $ 9,963 $ 7,610 $ 471 $ General Revenues and Other Changes in Net Position
Governmental activities:

Taxes
Property tax 6,189 $ 6,285 $ 2,193 $ 2,812 $ Franchise tax 1,330 1,419 1,616 1,638 Sales tax 5,720 6,988 6,692 7,289 Other taxes 448 355 343 390 Motor Vehicle in Lieu ta
x 37 29 27 24 Investment earnings 24 54 73 294 Other 1 13 4 ‐ Total governmental activities 13,749 15,143 10,948 12,447 Total primary governmental activities 13,749$ 15,143 $ 10,948 $ 12,447 $ Total Change in Net Position 23,372$ 25,106 $ 18,558 $ 12,918 $ Notes:

Source: City of Eastvale Finance Department
(1) Beginning in fiscal year 2014‐15, property taxes levied for fire services were reclassified from general revenue to program revenue as charges for services within the public safety function.

City of Eastvale
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amount expressed in thousands)
95 742
2017 2018 2019 2020 2021 2022
2,126$        2,605 $        8,224 $       5,283 $       10,401 $     9,989 $ 12,177        13,457         13,429       16,903       16,395       17,843 8,373          9,211           10,491       14,014       7,715         9,292 3,460          3,867           4,258         4,603         4,117         5,229 456              468               482             498             505             524 ‐                   ‐                    ‐                  433            238             306 26,592        29,608         36,884       41,734       39,371       43,182 26,592$      29,608 $      36,884 $     41,734 $     39,371 $     43,182 $ 2                  19                 42               95               92               100 6,512          6,899           7,512         7,608         8,022         8,831 229              229               978             2,533         995             643 3,686          3,638           3,229         3,125         2,839         1,840 2,944          5,631           6,676         5,845         5,921         12,021 17,145        6,036           3,217         4,529         9,191         4,433 30,518        22,452         21,654       23,735       27,060       27,868 30,518$      22,452 $      21,654 $     23,735 $     27,060 $     27,868 $ 3,926$        (7,156)$       (15,230)$   (17,999) $   (12,311) $   (15,314) $ 2,631$        2,606 $        2,549 $       2,910 $       3,024 $       3,178 $ 1,420          1,552           1,545         1,645         5,938         1,972 7,693          9,078           9,610         10,349       28,120       44,710 451              362               346             313             442             459 28                4,355          4,700         5,006         5,247         5,526 324              580               802             3,015         92               (103) 8                  18                 28               1,245        173             701 12,555        18,551         19,580       24,483       43,036       56,442 12,555$      18,551 $      19,580 $     24,483 $     43,036 $     56,442 $ 16,481$      11,395 $      4,350 $       6,484 $       30,725 $     41,128 $ Fiscal Year
(amount expressed in thousands)
City of Eastvale
Changes in Net Position ‐ Continued
Last Ten Fiscal Years
(accrual basis of accounting)
96 743
2013 2014 2015 2016
General fund
Nonspendable 2 $             ‐ $          ‐ $           49 $ Restricted ‐                5,272       6,918         6,969 Committed ‐                7,179       7,179         1,000 Unassigned 13,338      4,323        7,917         17,749 Total general fund 13,340      16,774      22,014       25,767 All other governmental funds
Nonspendable ‐ $          ‐ $          ‐ $           ‐ $ Restricted 7,280        11,427      13,451       15,508 Unassisgned (41)            ‐                (39)            (383) Total all other governmental funds 7,239        11,427      13,412       15,125 Total fund balances of governmental funds 20,579$   28,201 $   35,426 $    40,892 $ Notes:

Source: City of Eastvale Finance Department
City of Eastvale
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(accrual basis of accounting)
(amount expressed in thousands)
97 744
2017 2018 2019 2020 2021 2022
51$ 65 $ 19 $ 94 $ 92 $ 260 $ 5,925 7,070 8,323 10,269 11,445 14,473 3,000 3,000 3,000 3,000 30,745 78,955 18,715 27,935 30,929 34,622 32,810 16,869 27,691 38,070 42,271 47,985 75,092 110,557 ‐$ ‐ $ ‐ $ ‐ $ 12 $ 18 $ 17,535 23,772 18,957 22,967 22,163 25,189 (190) (1,165) (282) ‐ (456) (760) 17,345 22,607 18,675 22,967 21,719 24,447 45,036$ 60,677 $ 60,946 $ 70,952 $ 96,812 $ 135,004 $ City of Eastvale
Fund Balances of Governmental Funds ‐ Continued
Last Ten Fiscal Years
(accrual basis of accounting)
(amount expressed in thousands)
Fiscal Year
98 745
2012 2013 2014 2015
Revenues
Taxes:

Property tax 4,620 $ 6,189 $ 6,140 $ 7,163 $ Franchise tax 1,346 1,330 1,419 1,616 Sales tax 3,885 5,720 6,987 6,692 Other taxes 310 448 355 343 Licenses, permits and fees 2,251 2,541 3,360 3,645 Fines and forfeitures 205 269 303 619 Intergovernmental 2,974 2,830 4,141 3,227 Special use fees 102 1,225 941 747 Assessments ‐ 769 208 215 Investment earnings 15 35 78 108 Other 13 7 176 52 Total revenues 15,721 21,363 24,108 24,427 Expenditures
Current:

General government 1,351 $ 1,823 $ 1,735 $ 1,911 $ Public safety 6,102 6,681 9,503 9,621 Public Works 710 772 976 795 Community development 1,992 2,066 2,309 2,621 Revenue neutrality ‐ ‐ 462 393 Debt service:

Principal ‐ ‐ 1,240 ‐ Interest ‐ ‐ 11 ‐ Cost of Issuance ‐ ‐ ‐ ‐

Capital outlay 175 890 249 1,498 Total expenditures 10,330 12,232 16,485 16,839 Excess of revenues over expenditures 5,391 9,131 7,623 7,588 Other financing sources
Proceeds of long‐term debt ‐ ‐ ‐ ‐ Total other financing sources ‐ ‐ ‐ ‐ Net change in fund balance 5,391 $ 9,131 $ 7,623 $ 7,588 $ Debt service as a % of noncapital expenditures 0.0% 0.0% 0.0% 0.0% Notes:

Source:  City of Eastvale Finance Department
Fiscal Year
City of Eastvale
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(accrual basis of accounting)
(amount expressed in thousands)
99 746
2016 2017 2018 2019 2020 2021 2022
8,141$          8,171 $          8,930 $          11,020$      11,435 $      12,162 $       12,989 $ 1,637            1,420             1,552             1,545           1,645           5,938            1,972 7,289            7,693             9,078             9,610           10,349         28,120          44,710 390               451                379               347              313              442               459 3,454            3,801             3,805             3,579           3,390           3,040            2,428 524               696                743               847              652              595               553 2,972            3,146             7,664             9,661           11,855         9,915            17,728 999               745                2,830            313              1,129           655               271 227               229                229               280              324              423               2,805 294               324                580               802              3,015           92                 (421) 50                 47                  53                 62                1,984          238               843 25,977          26,723           35,843           38,066         46,091         61,620          84,336 2,077$          2,048 $          2,545 $          7,520 $         5,249 $         6,552 $          9,602 $ 10,030          11,630           13,148           13,061         16,467         15,907          17,560 982               863                875               1,506           3,139           2,240            2,257 2,903            3,460             3,867             4,258           4,603           4,117            5,269 444               456                468               482              498              505               524 ‐
‐                    ‐                     ‐                    ‐                   56                237               4,680 ‐                    ‐                     ‐                    ‐                   413             239               125 ‐                    ‐                     ‐                    683             ‐ 4,074            4,123             4,298             14,777         5,659           6,898            6,127 20,510          22,580           25,201           42,287         36,084         36,695          46,144 5,467            4,143             10,642           (4,221)         10,007         24,925          38,192 ‐                    ‐                     ‐                    4,492          ‐                   ‐                    ‐ ‐                    ‐                     ‐                    4,492          ‐                   ‐                    ‐ 5,467$          4,143 $          10,642$       271 $            10,007$      24,925 $       38,192 $

0.0% 0.0% 0.0% 0.0% 1.4% 1.4% 10.9%
Fiscal Year
City of Eastvale
Changes in Fund Balances of Governmental Funds ‐ Continued Last Ten Fiscal Years
(accrual basis of accounting)
(amount expressed in thousands)
100 747
Fiscal
Year
Residential
Property
Commercial
Property
Industrial
Property Other
Total Assessed
valuation
Less Tax
Exempt
Property
2013 5,190,205            225,586         402,370        408,069       6,226,230         (19,753) 2014 5,625,726            231,234         406,711        419,587       6,683,258         (21,494) 2015 6,464,576            242,419         408,625        495,062       7,610,682         (18,594) 2016 6,866,359            261,470         440,387        489,328       8,057,544         (19,868) 2017 7,251,789            272,192         465,414        491,561       8,480,956         (24,368) 2018 7,663,784            288,085         642,081        486,943       9,080,893         (26,206) 2019 8,055,727            325,604         896,230        541,404       9,818,965         (28,597) 2020 8,356,245            385,613         1,015,665    662,736       10,420,259     (36,163) 2021 8,731,141            432,684         1,126,015    646,112       10,935,952     (39,047) 2022 9,162,997            478,897         1,253,529    562,394       11,457,817     ‐ Notes:
(1) ‐ City's Share of 1% Levy Per Prop 13
Source:  County of Riverside, Auditor‐Controller/HdL, Coren & Cone City of Eastvale
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(amount expressed in thousands)
101 748
Total Taxable
Assessed Value
District Tax
(1) Rate
(City)
6,206,477          0.02402
6,661,764          0.10237
7,592,088          0.10057
8,037,676          0.09996
8,456,588          0.10082
9,054,687          0.09875
9,790,368          0.09800
10,384,096       0.09800
10,896,905       0.09694
11,457,817       0.09654
City of Eastvale
Assessed Value and Estimated Actual Value of Taxable Property ‐ Continued Last Ten Fiscal Years
(amount expressed in thousands)
102 749
City of Eastvale
Direct and Overlapping Property Tax Rates
Last Nine Fiscal Years
(rate per $100 of assessed value)
Fiscal Year
Basic County,
City, and School
Levy
Community
College District Water District School District Total (1) 2013 1.00000 0.01702 0.00350 0.11326 1.13378
2014 1.00000 0.01768 0.00350 0.11758 1.13876
2015 1.00000 0.01791 0.00350 0.11092 1.13233
2016 1.00000 0.01725 0.00350 0.18908 1.20983
2017 1.00000 0.01649 0.00350 0.19695 1.21694
2018 1.00000 0.01616 0.00350 0.17946 1.19912
2019 1.00000 0.01478 0.00350 0.17751 1.19579
2020 1.00000 0.01476 0.00350 0.19579 1.21405
2021 1.00000 0.01470 0.00350 0.20038 1.21858
2022 1.00000 0.01470 0.00350 0.19988 1.21808
Notes:

Source:  County of Riverside, Auditor‐Controller/HdL, Coren & Cone City Direct Rates
(1) Total direct rate is the weighted average of all individual direct rates applied by the City of Eastvale.  This amount includes the city's Share of 1% Levy Per Prop 13 plus community college, water and school districts.
103 750
City of Eastvale
Principal Property Tax Payers
Current Fiscal Year and Ten Years Ago
Taxpayer
Taxable Assessed
Value
Percentage of
Total Taxable
Assessed
Value
Taxable
Assessed Value
Percentage of
Total Taxable
Assessed
Value
Tarpon Property Ownership 2 LLC 297,596,052$       2.61% 38,515,967       0.62% Amazon Com Services LLC 191,683,102         1.68% ‐                          ‐ BPP Pacific Industrial California Reit 163,245,836         1.43% ‐                          ‐ Homecoming at Eastvale 145,767,251         1.28% ‐                          ‐ First Industrial LP 107,767,077         0.94% ‐                          ‐ Eastvale Gateway 98,952,733            0.87% ‐                          ‐ AMB Institutional Alliance Fund 96,224,068           0.84% 59,318,548       0.96% 3100 Milliken Industrial LLC 90,174,629           0.79% ‐                          ‐ Teachers Insurance and Annuity Assoc 69,542,396           0.61% ‐                          ‐ Rexford Industrial‐Eastvale 56,024,994           0.49% ‐                          ‐ LBA Riv Company IV ‐                              ‐                      73,297,200      1.18% Homecoming III at Eastvale ‐                              ‐                      53,232,000      0.86% Homecoming III at Eastvale ‐                              ‐                      44,154,995      0.71% Prologis California ‐                              ‐                      42,108,655      0.68% Eastvale Gateway II ‐                              ‐                      36,298,111      0.58% Hamner Park Associates ‐                              ‐                      35,183,190      0.57% J W Mitchell Company ‐                              ‐                      32,172,051      0.52% WW Grainer Inc. ‐                              ‐                      29,268,006      0.47% Total 1,316,978,138 $    11.54% 443,548,723 $   7.14%
Notes:

Source: HdL, Coren & Cone
2022 2013
104 751
City of Eastvale
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year
Taxes Levied
for the Levy
Year Amount
Percentage
of Levy
Collection in
Subsequent
Years Amount
Percentage
of Levy
2013 5,567,463 5,547,886 99.65% 19,577 5,567,463 100.00% (1) 2014 5,967,172 5,639,937 94.52% 162,758 5,802,695 97.24% 2015 6,777,856 6,555,914 96.73% 16,963 6,572,877 96.98% 2016 7,148,652 7,062,635 98.80% 19,879 7,082,514 99.07% 2017 7,597,972 7,571,107 99.65% 17,515 7,588,622 99.88% 2018 7,873,083 7,848,417 99.69% 76,595 7,925,012 100.66% 2019 8,325,698 8,163,736 98.05% 76,585 8,240,321 98.97% 2020 8,837,417 8,692,642 98.36% 15,890 8,708,532 98.54% 2021 9,617,361 9,212,198 95.79% 0 9,212,198 95.79%
2022 9,718,427 9,617,922 98.97% 7,026 9,624,947 99.04%
Notes:

Source: City of Eastvale Finance Department, Riverside County Auditor‐Controller's Office.

Collected within the Levy Year Total Collections to Date (1) Fiscal Year 2012‐13 collected within the year of levy includes a one‐time settlement amount of $483,426 resulting from renegotiations with the County of Riverside of the Riverside Neutrality Agreement and Property Tax Allocation Factor. 105 752
City of Eastvale
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal
Year
General
Obligation
Bonds
Lease
Revenue
Bonds Loans Payable
Total
Governmental
Activities
# of Actual
Assessed Value
of Property Per Capita
2013 ‐ ‐ ‐ ‐ 0.000% ‐ 2014 ‐ ‐ ‐ ‐ 0.000% ‐ 2015 ‐ ‐ ‐ ‐ 0.000% ‐ 2016 ‐ ‐ ‐ ‐ 0.000% ‐ 2017 ‐ ‐ ‐ ‐ 0.000% ‐ 2018 ‐ ‐ ‐ ‐ 0.000% ‐ 2019 ‐ ‐ 4,491,640 4,491,640 0.000% 68 2020 ‐ ‐ 4,435,892 4,435,892 0.000% 67 2021 ‐ ‐ 4,206,301 4,206,301 0.000% 62 2022 ‐ ‐ ‐ ‐ 0.000% ‐ Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statement.

Source: City of Eastvale Finance Department
106 753
City of Eastvale
Ratio of General Bonded Debt
Last Ten Fiscal Years
Fiscal
Year
General
Obligation
Bonds
Tax Allocation
Bonds
Certificates of
Participation
Total
Governmenta
l Activities
Percent of
Assessed
Value
Debt per
Capita
2013 ‐ ‐ ‐ ‐ 0.00% ‐ 2014 ‐ ‐ ‐ ‐ 0.00% ‐ 2015 ‐ ‐ ‐ ‐ 0.00% ‐ 2016 ‐ ‐ ‐ ‐ 0.00% ‐ 2017 ‐ ‐ ‐ ‐ 0.00% ‐ 2018 ‐ ‐ ‐ ‐ 0.00% ‐ 2019 ‐ ‐ ‐ ‐ 0.00% ‐ 2020 ‐ ‐ ‐ ‐ 0.00% ‐ 2021 ‐ ‐ ‐ ‐ 0.00% ‐ 2022 ‐ ‐ ‐ ‐ 0.00% ‐ Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statement.

Source:  City of Eastvale Finance Department
107 754
City of Eastvale
Direct and Overlapping Bonded Debt
As of June 30, 2022
2021‐22 Assessed Valuation
Overlapping Tax and Assessment Debt
Outstanding Debt
6/30/2022
Percent
Applicable (1)
Amount
Applicable to City
6/30/2022
Metropolitan Water District 20,175,000 $           0.337% 67,990 $ Riverside Community College District 300,457,165            8.975                    26,966,031 Corona‐Norco Unified School District 498,729,283            22.514                  112,283,911 Jurupa‐Unified School District 151,897,972            14.606                  22,186,218 Corona‐Norco Unified School District Comm Facilities District 72 ,610,758              91.622‐100 69,973,364 Jurupa Community Services District Comm Facilities District 285 ,980,000           32.420‐100 282,131,319 Total Overlapping Tax and Assessment Debt 513,608,833 $ Direct and Overlapping General Fund Debt
Riverside County General Fund Obligations 720,218,351 $         3.451% 24,854,735 $ Riverside County Pension Obligation Bonds 820,060,000            3.451                    28,300,271 Corona‐Norco Unified School District General Fund Obligations 21 ,677,172              22.514                  4,880,399 Jurupa Unified School District Certificates of Participation 50, 480,800              14.606                  7,373,226 City of Eastvale   0 100 0
Western Municipal Water District General Fund Obligations 5,461, 361                10.627                  580,379 Total  Direct and Overlapping General Fund Debt 65,989,010 $ Overlapping Tax Increment Debt (Successor Agency)
286,462,995.00 7.963‐17.788% 37,881,878.00
Total Direct Debt ‐$
Total Gross Overlapping Debt 614,479,721 $
Total Net Overlapping Debt 614,479,721$
Gross Combined Total Debt 617,479,721$
Net Combined Total Debt 617,479,721$
Ratios to 2021‐22 Assessed Valuation
Total Overlapping Tax and Assessment Debt 4.50%
Total Direct Debt 0.00%
Gross Combined Total Debt 5.41%
Net Combined Total Debt 5.41%
Rations to Redevelopment Successor Agency Incremental Valuation ($1,369,733,501) Total Overlapping Tax Increment Debt 2.77%
Notes:

Source: Avenu Insights
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.

Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. 11,418,612,270$
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non‐bonded capital lease obligations.
108 755
City of Eastvale
Legal Debt Margin Information
Last Ten Fiscal Years
(amount expressed in thousands)
Fiscal
Year
Assessed
Valuation
Legal Debt Limit
(15% of Assessed
Value)
Amount of Debt
Applicable to
Debt Limit
Legal Debt
Margin
Total Debt
Applicable to the
Limit as a
Percentage of the
Debt Limit
2013 6,206,477 930,972 ‐ 930,972 0.0% 2014 6,661,764 999,265 ‐ 999,265 0.0% 2015 7,592,088 1,138,813 ‐ 1,138,813 0.0% 2016 8,037,676 1,205,651 ‐ 1,205,651 0.0% 2017 8,577,102 1,286,565 ‐ 1,286,565 0.0% 2018 9,085,096 1,362,764 ‐ 1,362,764 0.0% 2019 9,818,965 1,472,845 ‐ 1,472,845 0.0% 2020 10,420,259 1,563,039 ‐ 1,563,039 0.0% 2021 10,935,952 1,640,393 ‐ 1,640,393 0.0% 2022 11,457,817 1,718,673 ‐ 1,718,673 0.0% Notes:

Source: HdL, Coren & Cone
Section 43605 of the Government Code of the State of California limits the amount of general bonded indebtedness for public improvments to 15% of the assessed valuation of all real and personal property of the City. The City has no general obligation bonded debt. 109 756
City of Eastvale
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscsal
Year Revenue
Less
Operating
Expenses
Net Available
Revenue Principal Interest Coverage
2012 The City has no direct outstanding bonded debt
2013 The City has no direct outstanding bonded debt
2014 The City has no direct outstanding bonded debt
2015 The City has no direct outstanding bonded debt
2016 The City has no direct outstanding bonded debt
2017 The City has no direct outstanding bonded debt
2018 The City has no direct outstanding bonded debt
2019 The City has no direct outstanding bonded debt
2020 The City has no direct outstanding bonded debt
2021 The City has no direct outstanding bonded debt
2022 The City has no direct outstanding bonded debt
Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Source: City of Eastvale Finance Department
Lease Revenue Bonds
110 757
City of Eastvale
Demographic and Economic Statistics
Last Ten Fiscal Years
(1) (2) (2) (3) (4)
Calendar
Year Population
Personal Income
in Thousands
Per Capital
Personal Income Median Age
Unemployment
Rate
2013 57,251 1,723,999 30,113 31.1 12.2% 2014 59,185 1,723,881 29,127 30.8 10.2% 2015 59,151 1,793,044 30,313 31.2 5.5% 2016 63,162 1,586,340 25,115 31.8 4.5% 2017 64,613 1,592,100 24,641 31.9 4.0% 2018 64,855 1,688,799 26,040 32.7 4.4% 2019 66,078 1,882,938 28,496 33.2 3.2% 2020 66,413 1,984,346 29,879 33.1 2.9% 2021 67,626 2,148,484 31,770 33.1 8.6% 2022 69,929 2,395,056 34,250 33.0 5.6% Notes:

Source: (1) Population ‐ California Department of Finance (2) Personal Income/Population ‐ US Census Bureau
(3) Median Age ‐ HdL Coren & Cone
(4) Unemployment Rate ‐ HdL Coren & Cone
111 758
City of Eastvale
Principal Employers
Current Fiscal Year (4)
Number of Percent of Total
Business Name Employees Employment (%)
Amazon Fulfillment Center 6,318 18.10%
Walmart Distribution** 989 2.83%
Corona‐Norco USD* 973 2.79%
Costco 307 0.88%
Ingram Micro 305 0.87%
Grainger Distribution Center 251 0.72%
Home Depot 235 0.67%
Komar Distribution Services 163 0.47%
Albertson 100 0.29%
Kohls Department Stores 82 0.23%
9,723 27.86%
Total Top 10 Employers
Total City Labor Force
(1) 34,900
Notes:
*Within the City of Eastvale only. Certificated and Classified Employees included. ** Includes 2 Distribution centers and NFI Industries
***Company contracted Employees, Company will be closing end of the year (1) Total City Labor Force provided by EDD Labor Force Data.

Source:  Avenu Insights & Analytics
2021‐22
112 759
City of Eastvale
Governmental Activities Tax Revenues by Source
Last Ten Calendar Years
(acrrual basis of accounting)
(amount expressed in thousands)
Fiscal Year
Property
Tax
Sales &
Use Tax
Motor
Vehicle in‐
lieu Tax
Vehicle
License Fee
in‐lieu Tax
Sales Tax
in‐lieu
Tax
Franchise
Tax
Other
Taxes Total
2013 6,189        5,720        37                 ‐                    ‐              1,330      448           13,724 2014 6,285        6,988        29                 ‐                    ‐              1,419      355           15,076 2015 2,193        6,692        27                 ‐                    ‐              1,616      343           10,871 2016 2,812        7,289        24                 ‐                    ‐              1,638      390           12,153 2017 2,631        7,693        28                 ‐                    ‐              1,420      451           12,223 2018 2,606        9,078        4,355           ‐                    ‐              1,552      362           17,953 2019 2,549        9,610        4,700           ‐                    ‐              1,545      346           18,750 2020 2,910        10,349      5,006           ‐                    ‐              1,645      1,245       23,175 2021 3,024        28,120      5,247           ‐                    ‐              5,938      442           42,771 2022 3,178        44,710      5,526           ‐                    ‐              1,972      459           55,845 Source:  City of Eastvale Finance Department
113 760
City of Eastvale
Taxable Sales by Category (in thousands of dollars)
Last Ten Calendar Years
Calendar
Year
Other Retail
Stores
All Other
Outlets Total
2013 278,326           265,151            543,477
2014 309,599           300,111            609,710
2015 339,959           325,662            665,621
2016 357,869           387,769            745,638
2017 367,606           398,041            765,647
2018 382,404           463,113            845,517
2019 472,690           442,403            915,093
2020 549,385           445,217            994,602
2021 558,785           511,449            1,070,234
2022 743,978           3,745,567       4,489,545
Notes:

Source: HdL, Coren & Cone/State of California Board of Equalization Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.
114 761
City of Eastvale
Full‐time City Employees
by Function
Last Ten Fiscal Years
Fiscal Year
General
Government Public Safety Public Works
Community
Development
Community
Safety Total
2013 6.00 0.00 0.00 0.00 0.00 6.00
2014 7.00 0.00 0.00 2.00 0.00 9.00
2015 10.25 0.00 0.00 2.50 0.00 12.75
2016 9.50 0.00 0.00 2.25 0.00 11.75
2017 10.00 0.00 0.00 1.75 0.00 11.75
2018 13.75 0.00 0.00 4.00 0.00 17.75
2019 15.00 0.00 0.00 9.25 0.00 24.25
2020 18.50 0.00 0.00 12.75 0.00 31.25
2021 16.75 0.00 0.00 20.00 0.00 36.75
2022 27.75 0.00 1.00 13.50 16.50 58.75
Notes:

Source: City of Eastvale Finance Department
The City of Eastvale contracted services for Public Works, Planning, Building & Safety through 2018, at which point services started to be provided by city employees. The city continues to partially contract engineering, planning, and building services. Police and Fire services are fully contracted.

Parks and Recreation is provided by the Jurupa Community Services District. 115 762
City of Eastvale
Operating Indicators
by Function
Last Ten Fiscal Years
2013 2014 2015 2016
Finance
Business registration 920                  1,061              1,837              1,297 applications / renewals
Building and Safety
Construction valuation 201,070,031$   168,641,107 $   184,550,926 $   205,136,969 $ Building permits issued 2,105              2,168              2,481              1,677 Public Safety
Total arrests 746                  953                 612                 571 Calls for service 27,826            17,630           27,579           28,717 Notes:

Source:  City of Eastvale, Various Departments
Fiscal Year
116 763
City of Eastvale
Operating Indicators ‐ Continued
by Function
Last Ten Fiscal Years
Fiscal Year
2017 2018 2019 2020 2021 2022
1,632               2,083                1,625               1,124              2,396               2,490 230,282,478$   75,756,134 $     154,206,189 $   188,393,503 $   434,097,814 $    121,449,018 $ 1,584               1,196                1,488               1,416              4,138               1,968 621                  488                   532                  510                 475                  547 31,875            31,204             25,797            24,211           24,171             25,906 117 764
City of Eastvale
Capital Asset Statistics
by Function
Last Ten Fiscal Years
Fiscal Year Street (miles)
Traffic Signalized
Intersections Bridges Buildings
2013 320                               42                                 1                                  ‐ 2014 334                               44                                 1                                  ‐ 2015 365                               44                                 1                                  1 2016 367                               47                                 2                                  1 2017 368                               47                                 2                                  1 2018 368                               48                                 2                                  1 2019 368                               50                                 2                                  3 2020 368                               64                                 2                                  4 2021 414                               67                                 2                                  4 2022 414                               67                                 2                                  4 Notes:

Source: City of Eastvale Public Works Department
118 765

AGENDA STAFF REPORT

City Council Meeting

CITY COUNCIL BUSINESS

Agenda Item No. 13.2
January 11, 2023
Approval of Construc-on Contract with Elecnor Belco Electric, Inc. for the Citywide Retroreﬂec-ve Backplates on Traﬃc Signal Indicators Project in the amount of $268,503.

Prepared By:

Jimmy Chung, City Engineer
Recommended Action(s)
Staff recommends that the City Council:
1 .

Award the Construc
on Contract to
Elecnor Belco Electric, Inc.
, the lowest responsive and
responsible bidder, in accordance with unit bid prices in the amount of $ 248,352
plus a 8%
contingency of $20,151 for a total of $268,503; and
2 .

Authorize the City Manager to execute all necessary documents including the No ce of
Completion.

Summary
The City applied for and was awarded funding for Citywide Retroreﬂec ve Backplates on Traﬃc
Signal Indicators Project under Highway Safety Improvement Program (HSIP) for a total amount of $421,600: $62,400 for Preliminary Engineering (PE) Phase and $359,200 for Construc on (CON)
Phase.

The project scope includes installing retroreﬂec
ve borders along the backplates of traﬃc
signal indicators at thirty-nine (39) signalized intersec ons along the City’s major corridors including
Limonite Ave., Schleisman Rd., Hamner Ave., and Archibald Ave. (See A@achment No. 1 for the Location Map).

12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
951.361.0900 |
eastvaleca.gov
766
Thirty-nine (39) intersec
ons were iden
ﬁed for improvements based on the historical crash data and are listed below:
1 .

Hamner Ave. & Limonite Ave.
2 .

Eastvale Gtwy. & Limonite Ave.
3 .

Archibald Ave. & Schleisman Rd.
4 .

Archibald Ave .& Limonite Ave.
5 .

Hamner Ave. & Schleisman Rd.
6 .

Harrison Ave. & Schleisman Rd.
7 .

Sumner Ave. & Limonite Ave.
8 .

Sumner Ave. & Schleisman Rd.
9 .

I 15 & Limonite Ave.
10 .

Hamner Ave. & Swan Lake Ave.
11 .

Hamner Ave. & Bellegrave Ave.
12 .

Cloverdale Marketplace & Limonite Ave.
13 .

Hamner Ave.& 68th St.
14 .

Harrison Ave. & Limonite Ave.
15 .

Hamner Ave. & Amberhill Ave.
16 .

Hamner Ave. & Riverside Dr.
17 .

Archibald Ave. & 65th St.
18 .

Scholar Way & Schleisman Rd.
19 .

Moonflower Dr. & Schleisman Rd.
20 .

Hamner Ave. & 65th St.
21 .

Hamner Ave. & Oakdale St.
22 .

Archibald Ave. & Soleil Dr.
23 .

Kenton Pl. & Schleisman Rd.
24 .

Hamner Ave. & Citrus St.
25 .

Archibald Ave. & Fieldmaster St.
26 .

Archibald Ave. & Chandler St.
27 .

Whitewell Rd. & Schleisman Rd.
28 .

Archibald Ave. & Eastvale Pkwy.
29 .

Gypsum Creek Dr .& Schleisman Rd.
30 .

Scholar Way & Limonite Ave.
31 .

Archibald Ave. & Kendra Ln.
32 .

Archibald Ave .& Wind River Rd.
33 .

Archibald Ave. & Branding Iron Dr.
34 .

Archibald Ave. & Prado Basin Park Rd.
35 .

Hamner Ave. & Schleisman Rd.
36 .

Quarter Horse Dr. & Schleisman Rd.
37 .

Milliken Ave. & Mission Blvd.
38 .

Hamner Ave. & Cantu-Galleano Ranch Rd.
39 .

Hamner Ave. & Eastvale Gtwy.

Adding the retroreﬂec
ve borders will improve the visibility of the illuminated face of the signal.

The Illuminated face is more conspicuous both during the day and at night, and therefore, will enhance traffic safety.

Background
12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
951.361.0900 |
eastvaleca.gov
767
The call for bids was posted on the City’s website and the City of Eastvale Vendor Portal through PlanetBids on October 26, 2022. Bids were also adver
sed in a local newspaper on November 11,
2022 and November 18. 2022. The City received six (6) electronic bids on November 30, 2022. The bid results are as follows:

Name of Bidder
City
Bid Amount
Elecnor Belco
Electric, Inc.

Chino
$ 248,352
Econolite Systems,
Inc.

Anaheim
$ 249,344
PTM General
Engineering Services,
Inc.

Riverside
$ 294,049
Baker Electric
Escondido
$ 300,458
California
Professional
Engineering, Inc.

La Puente
$ 332,832
Servitek Electric, Inc.

Walnut
$ 360,525

ALer reviewing the bids, staﬀ determined that Elecnor Belco Electric, Inc. (Belco) is the lowest responsive and responsible bidder with a total bid price of $
248,352
. Belco holds a valid Class A, B
and C10 Contractor’s license in the State of California. Belco is a Southern California based commercial electrical contractor and has been in business for over ﬁLeen (15) years. The company delivered successful projects to other agencies including the Ci es of Glendale, Lake Elsinore, Palm
Springs. Therefore, Belco qualifies as the lowest responsible bidder as required by state law.

Construc
on is an
cipated to begin in January 2023 assuming no complica
ons with the contract
execu
on process. The contract allows for a total of forty-ﬁve (45) working days to complete the required work. The work is expected to be completed in April 2023.

The staﬀ will work with Communica
ons Division to send out construc
on no
ces for the closures
associated with the construc
on. The contractor will also be required to no
fy all aﬀected residents
and/or businesses at least three days prior to mobilizing for any access modification.

Environmental
The proposed project is exempt from CEQA review under the categorical exemp on for exis
ng
facili
es (CEQA Guideline 15301). A No
ce of Exemp
on (NOE) has been ﬁled and is included with
this report as Attachment 3.

Strategic Plan Action - Priority Level: 2
| Target #: 5
| Goal #: 7
Plan for landscape, roads, and street maintenance

Fiscal Impact
The total ﬁscal impact for the project is $268,503 and the HSIP grant will fund 100% of the project 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
951.361.0900 |
eastvaleca.gov
768
costs. During the 2022-23 budget process $391,600 was appropriated for this project. As a result, there are suﬃcient funds budgeted in the ﬁscal year 2022-23 budget for the project in the Miscellaneous Grants Fund in account 240-510-6660-92016. There is no impact to the General Fund.

Prior City Council/Commission Action
On October 14, 2020, the City Council approved four HSIP grant applica ons for Citywide traﬃc
safety improvements including t
he Citywide Retroreﬂec
ve Backplates on Traﬃc Signal Indicators
Project
.

Attachment(s)
Attachment 1 - Project Location Map

Attachment 2.1 - Belco_Contract

Attachment 2.2 - Exhibit B Bid Proposal

Attachment 3 - Notice of Exemption

12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
951.361.0900 |
eastvaleca.gov
769
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E V A R E N M A H
65TH ST

E V A N A M L L E H
68TH ST

SCHLEISMAN RD

LIMONITE AVE

E V A R E N M U S

Y A W R A L O H C S

CITRUS ST

E V A D L A B I H C R A
RIVER
RD

CHANDLER ST

E V A N O S I R R A H

E V A N E K I L L I M

BELLEGRAVE AVE

MISSION BLVD

RIVERSIDE DR
ARCHIB
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AVE
0 0.5 1 0.25 Miles
Signal location
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Backplate installation
LEGEND
Intersection List:

1. Hamner Ave & Limonite Ave

2. Eastvale Gtwy & Limonite Ave

3. Archibald Ave & Schleisman Rd

4. Archibald Ave & Limonite Ave

5. Hamner Ave & Schleisman Rd

6. Harrison Ave & Schleisman Rd

7. Sumner Ave & Limonite Ave

8. Sumner Ave & Schleisman Rd

9. I 15 & Limonite Ave

10. Hamner Ave & Swan Lake Ave

11. Hamner Ave & Bellegrave Ave

12. Starbucks Driveway
& Limonite Ave

13. Hamner Ave & 68th St

14. Harrison Ave & Limonite Ave

15. Hamner Ave & Amberhill Ave

16. Hamner Ave & Riverside Dr

17. Archibald Ave & 65th St

18. Scholar Way & Schleisman Rd

19. 0RRQƃRZHU'U
& Schleisman Rd

20. Hamner Ave & 65th St

21. Hamner Ave & Oakdale St

22. Archibald Ave & Soleil Dr

23. Kenton Pl & Schleisman Rd

24. Hamner Ave & Citrus St

25. Archibald Ave & Fieldmaster St

26. Archibald Ave & Chandler St

27. Whitewell Rd & Schleisman Rd

28. Archibald Ave & Eastvale Pkwy

29. Gypsum Creek Dr
& Schleisman Rd

30. Scholar Way & Limonite Ave

31. Archibald Ave & Kendra Ln

32. Archibald Ave & Wind River Rd

33. Archibald Ave &
Branding Iron Dr

34. Archibald Ave &
Prado Basin Park Rd

35. Hamner Ave & Schleisman Rd

36. Quarter Horse Dr
& Schleisman Rd

37. Milliken Ave & Mission Blvd

38. Hamner Ave & Cantu-
Galleano Ranch Rd

39. 39 Hamner Ave
& Eastvale Gtwy
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CONTRACT AGREEMENT

BETWEEN

THE CITY OF EASTVALE
AND
ELECNOR BELCO ELECTRIC, INC.

This Agreement for Construction Services (“Agreemen t”), is made and entered into this ___ day of ________, 2022, by and between the City of Eastv ale, a California general municipal corporation organized under the laws of the State of California with its principal place of business at 12363 Limonite Ave., Suite 910, Eastvale, California (“City”) and Elecnor Belco Electric, Inc., a California Corporation (“Contractor”).

SECTION 1. RECITALS
A. City is a municipal corporation organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose.

B. Contractor is a professional contractor, experience d in providing pavement rehabilitation and overlay services and is familiar with the plans of the City.

C. City desires to engage Contractor to construct public improvements associated with the Citywide Retroreflective Backplates on Traffic Sig nal Indicators Project #92016 as set forth herein
D. Contractor has obtained, and delivers concurrently herewith, PERFORMANCE

BOND, PAYMENT BOND, INSURANCE DOCUMENTS AND OTHER
CERTIFICATIONS as required by the Contract.

SECTION 2. INCORPORATION OF DOCUMENTS

This Contract includes and hereby incorporates in f ull by reference the following documents, including all exhibits, drawings, specif ications and documents therein, and attachments and addenda thereto: bid document for the Citywide Retroreflective Backplates on Traffic Signal Indicators Project.

SECTION 3. SCOPE OF WORK
A. Contractor’s Basic Obligation; Scope of Work. Contractor promises and agrees, at its own cost and expense, to furnish to the Owner a ll labor, materials, tools, equipment, services, and incidental and customary work necessary to full y and adequately complete the Citywide Retroreflective Backplates on Traffic Signal Indica tors Project , including all structures and facilities necessary for the Project or described i n the Contract (hereinafter the "Work" or "Project"), for a Total Contract Price as specified pursuant to this Contract. All Work shall be subject to, and performed in accordance with the ab ove referenced documents, as well as the exhibits attached hereto and incorporated herein by reference. The plans and specifications for the Work are further described in the Exhibits attached hereto and incorporated herein by this reference. Special conditions, if any, relating to the Work are described in the Exhibits attached hereto and incorporated herein by this reference.
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2 B. Change in Scope of Work Any change in the scope of the Work, method of performance, nature of materials or price thereof, or any other matter materially affecting the performance or nature of the Work shall not be paid for or accepted unless such change, addition or deletion is approved in advance and in writing by a valid change order executed by the City.

SECTION 4. PERIOD OF PERFORMANCE AND LIQUIDATED DAM AGES Contractor shall perform and complete all Work unde r this Contract within Forty-Five (45) working days , beginning the effective date of the Notice to Proceed ("Contract Time"). Contractor shall perform its Work in strict accordance with an y completion schedule, construction schedule or project milestones developed by the City. Contractor agrees that if such Work is not completed within the aforementioned Contract Time and/or purs uant to any such completion schedule, construction schedule or project milestones developed pursuant to provisions of the Contract, it is understood, acknowledged and agreed that the City will suffer damage. Since it is impractical and infeasible to determine the amount of actual damage , it is agreed that the Contractor shall pay to the City as fixed and liquidated damages, and not a s a penalty, the sum of One Thousand Five Hundred Dollars ($1,500) per day for each and every calendar day of delay beyond the Contract Time or beyond any completion schedule, construction schedule or Project milestones established pursuant to the Contract.

SECTION 5. STANDARD OF PERFORMANCE
Contractor shall perform all Work under this Contra ct in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Work. Contractor warrants that all employees and subcontractors shall have sufficient skill and expe rience to perform the Work assigned to them.

Finally, Contractor represents that it, its employe es and its subcontractors have all licenses, permits, qualifications and approvals of whatever n ature that are legally required to perform the Work, and that such licenses and approvals shall be maintained throughout the term of this Contract. Any employee who is determined by the City to be uncooperative, incompetent, a threat to the safety of persons or the Work, or any employee who fails or refuses to perform the Work in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed on the Work.

SECTION 6. CONTROL AND PAYMENT OF SUBORDINATES; CONTRACTUAL

RELATIONSHIP
City retains Contractor on an independent contracto r basis and Contractor is not an employee of City. Any additional personnel performing the work governed by this Contract on behalf of Contractor shall at all times be under Contractor's exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Contract and as required by law. Contra ctor shall be responsible for all reports and obligations respecting such additional personnel, i ncluding, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers' compensation insurance.

SECTION 7. CITY’S BASIC OBLIGATION
City agrees to engage and does hereby engage Contra ctor as an independent contractor to furnish all materials and to perform all Work according to the terms and conditions herein contained for the sum set forth above. Except as otherwise provi ded in the Contract, the City shall pay to Contractor, as full consideration for the satisfactory performance by the Contractor of the services 772
3 and obligations required by this Contract, the abov e referenced compensation in accordance with compensation provisions set forth in the Contract.

SECTION 8. COMPENSATION AND PAYMENT
A. Amount of Compensation. As consideration for pe rformance of the Work required herein, City agrees to pay Contractor the Total Con tract Price of TWO HUNDRED FORTY EIGHT THOUSAND THREE HUNDRED FIFTY TWO Dollars ($248,352.00) plus a 8% contingency of $20,151.00 for a total of $268,503.0 0 ("Total Contract Price") provided that such amount shall be subject to adjustment pursuant to t he applicable terms of this Contract or written change orders approved and signed in advance by the City.

B. Payment of Compensation. If the Work is schedul ed for completion in thirty (30) or less calendar days, City will arrange for paymen t of the Total Contract Price upon completion and approval by City of the Work. If the Work is s cheduled for completion in more than thirty (30) calendar days, City will pay Contractor on a m onthly basis as provided for herein. On or before the fifth (5th) day of each month, Contractor shall submit to the City an itemized application for payment in the format supplied by the City indi cating the amount of Work completed since commencement of the Work or since the last progress payment. These applications shall be supported by evidence which is required by this Contract and such other documentation as the City may require. The Contractor shall certify that the Work for which payment is requested has been done and that the materials listed are stored where indicated. Contractor may be required to furnish a detailed schedule of values upon request of the City and in such detail and form as the City shall request, showing the quantities, unit prices, overh ead, profit, and all other expenses involved in order to provide a basis for determining the amount of progress payments.

City shall review and pay all progress payment requests in accordance with the provisions set forth in Section 20104.50 of the California Public Contract Code. No progress payments will be made for Work not completed in accordance with this Contract.

SECTION 9. CONTRACT RETENTIONS
From each approved progress estimate, five percent (5%) will be deducted and retained by the City, and the remainder will be paid to Contractor. All Contract retainage shall be released and paid to the Contractor and subcontractors pursuant to California Public Contract Code Section 7107.

SECTION 10. OTHER RETENTIONS
In addition to Contract retentions, the City may de duct from each progress payment an amount necessary to protect City from loss because of: (1) liquidated damages which have accrued as of the date of the application for payment; (2) any su ms expended by the City in performing any of Contractor's obligations under the Contract which C ontractor has failed to perform or has performed inadequately; (3) defective Work not remedied; (4) stop notices as allowed by state law; (5) reasonable doubt that the Work can be completed for the unpaid balance of the Total Contract Price or within the scheduled completion date; (6) unsatisfactory prosecution of the Work by Contractor; (7) unauthorized deviations from the Contract; (8) failure of the Contractor to maintain or submit on a timely basis, proper and sufficient documentation as required by the Contract or by City during the prosecution of the Work; (9) erroneous or false estimates by the Contractor of the value of the Work performed; (10) any sums represen ting expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Contract; and 773
4 (11) any other sums which the City is entitled to r ecover from Contractor under the terms of the Contract or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a prog ress payment shall not constitute a waiver of the City's right to such sums.

SECTION 11. SUBSTITUTIONS FOR CONTRACT RETENTIONS
In accordance with California Public Contract Code Section 22300, the City will permit the substitution of securities for any monies withheld by the City to ensure performance under the Contract. At the request and expense of the Contra ctor, securities equivalent to the amount withheld shall be deposited with the City, or with a state or federally chartered bank in California as the escrow agent, and thereafter the City shall then pay such monies to the Contractor as they come due. Upon satisfactory completion of the Cont ract, the securities shall be returned to the Contractor. For purposes of this Section and Section 22300 of the Public Contract Code, the term "satisfactory completion of the contract" shall mea n the time the City has issued written final acceptance of the Work and filed a Notice of Completion as required by law and provisions of this Contract. The Contractor shall be the beneficial o wner of any securities substituted for monies withheld and shall receive any interest thereon. T he escrow agreement used for the purposes of this Section shall be in the form provided by the City.

SECTION 12. PAYMENT TO SUBCONTRACTORS
Contractor shall pay all subcontractors for and on account of work performed by such subcontractors in accordance with the terms of their respective subcontracts and as provided for in Section 10262 of the California Public Contract Cod e. Such payments to subcontractors shall be based on the measurements and estimates made and pr ogress payments provided to Contractor pursuant to this Contract.

SECTION 13. TITLE TO WORK
As security for partial, progress, or other payment s, title to Work for which such payments are made shall pass to the City at the time of payment. To the extent that title has not previously been vested in the City by reason of payments, full title shall pass to the City at delivery of the Work at the destination and time specified in this Contract . Such transferred title shall in each case be good, and free and clear from any and all security interests, liens, or other encumbrances.

Contractor promises and agrees that it will not ple dge, hypothecate, or otherwise encumber the items in any manner that would result in any lien, security interest, charge, or claim upon or against said items. Such transfer of title shall not imply acceptance by the City, nor relieve Contractor from the responsibility to strictly comply with the Contract, and shall not relieve Contractor of responsibility for any loss of or damage to items.

SECTION 14. DISPUTE RESOLUTION
Any separate demand by Contractor for the payment o f money or damages shall be resolved in accordance with Public Contract Code Sections 20104 et seq., if applicable.

SECTION 15. TERMINATION
This Contract may be terminated by City at any time by giving Contractor three (3) days advance written notice. In the event of termination by City for any reason other than the fault of Contractor, City shall pay Contractor for all Work performed up to that time as provided herein. In the event of breach of the Contract by Contractor, City may t erminate the Contract immediately without notice, may reduce payment to the Contractor in the amount necessary to offset City's resulting 774
5 damages, and may pursue any other available recours e against Contractor. Contractor may not terminate this Contract except for cause.

In the event this Contract is terminated in whole o r in part as provided, City may procure, upon such terms and in such manner as it may determine a ppropriate, services similar to those terminated. Further, if this Contract is terminate d as provided, City may require Contractor to provide all finished or unfinished documents, data, diagrams, drawings, materials or other matter prepared or built by Contractor in connection with its performance of this Contract.

SECTION 16. COMPLETION OF WORK
When the Contractor determines that it has complete d the Work required herein, Contractor shall so notify City in writing and shall furnish all labor and material releases required by this Contract.

City shall thereupon inspect the Work. If the Work is not acceptable to the City, the City shall indicate to Contractor in writing the specific port ions or items of Work which are unsatisfactory or incomplete. Once Contractor determines that it has completed the incomplete or unsatisfactory Work, Contractor may request a re-inspection by the City. Once the Work is acceptable to City, City shall pay to Contractor the Total Contract Price remaining to be paid, less any amount which City may be authorized or directed by law to retain . Payment of retention proceeds due to Contractor shall be made in accordance with Section 7107 of the California Public Contract Code.

SECTION 17. CITY’S REPRESENTATIVE
The City hereby designates the City Engineer , or his or her designee, to act as its representat ive for the performance of this Contract ("City's Repre sentative"). City's Representative shall have the power to act on behalf of the City for all purp oses under this Contract. Contractor shall not accept direction or orders from any person other th an the City's Representative or his or her designee.

SECTION 18. CONTRACTOR’S REPRESENTATIVE
Before starting the Work, Contractor shall submit i n writing the name, qualifications and experience of its proposed representative who shall be subject to the review and approval of the City ("Contractor's Representative"). Following ap proval by the City, the Contractor's Representative shall have full authority to represe nt and act on behalf of the Contractor for all purposes under this Contract. The Contractor's Representative shall supervise and direct the Work, using his best skill and attention, and shall be re sponsible for all construction means, methods, techniques, sequences and procedures and for the sa tisfactory coordination of all portions of the Work under this Contract. Contractor's Representat ive shall devote full time to the Project and either he or his designee, who shall be acceptable to the City, shall be present at the Work site at all times that any Work is in progress and at any t ime that any employee or subcontractor of Contractor is present at the Work site. Arrangemen ts for responsible supervision, acceptable to the City, shall be made for emergency Work which may be required. Should Contractor desire to change its Contractor's Representative, Contractor shall provide the information specified above and obtain the City's written approval.

SECTION 19. CONTRACT INTERPRETATION
Should any question arise regarding the meaning or import of any of the provisions of this Contract or written or oral instructions from City, the matt er shall be referred to City's Representative, whose decision shall be binding upon Contractor.
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6 SECTION 20. LOSS AND DAMAGE
Contractor shall be responsible for all loss and da mage which may arise out of the nature of the Work agreed to herein, or from the action of the el ements, or from any unforeseen difficulties which may arise or be encountered in the prosecution of the Work until the same is fully completed and accepted by City. However, Contractor shall be responsible for damage proximately caused by Acts of God, within the meaning of Section 4150 of the Government Code, only to the extent of five percent (5%) of the Total Contract Price as specified herein. In the event of damage proximately caused by "Acts of God," the City may t erminate this Contract upon three (3) days advanced written notice.

SECTION 21. INDEMNIFICATION
A. Indemnification. Contractor shall defend, indem nify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner ar ising out of or incident to any alleged acts, omissions or willful misconduct of Contractor, its officials, officers, employees, agents, consultants and contractors arising out of or in co nnection with the performance of the Services, the Project or this Agreement, including without li mitation the payment of all consequential damages and attorneys fees and other related costs and expenses. Contractor shall defend, at Contractor’s own cost, expense and risk, any and al l such aforesaid suits, actions or other legal proceedings of every kind that may be brought or in stituted against City, its directors, officials, officers, employees, agents or volunteers. Contrac tor shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, agents or volunteers, in any such suit, action or other le gal proceeding. Contractor shall reimburse City and its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials officers, employees, agents or volunteers.

B. General Indemnification. Contractor agrees to o btain executed indemnity agreements with provisions identical to those set f orth here in this section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this Agreement. In the event Contractor fails to obtain such indemnity obligations from others are required here, Contractor agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is bind ing on the successors, assigns or heirs of Contractor and shall survive the termination of this Agreement or this section.

SECTION 22. INSURANCE
Prior to the beginning of and throughout the durati on of the Work, Contractor will maintain insurance in conformance with the requirements set forth below. Contractor will use existing coverage to comply with these requirements. If tha t existing coverage does not meet the requirements set forth here, Contractor agrees to a mend, supplement or endorse the existing coverage to do so. Contractor acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of co verage required. Any insurance proceeds in excess of the limits and coverage required in this Agreement and which are applicable to a given loss, will be available to the City. Contractor sh all provide the following types and amounts of 776
7 insurance:

A. Commercial General Liability Insurance using Ins urance Services Office “Commercial General Liability” policy form CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate.

B. Business Auto Coverage on ISO Business Auto Cove rage form CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limit s are subject to review, but in no event to be less than $1,000,000 per accident. If Contractor o wns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the ge neral liability policy described above. If Contractor or Contractor’s employees will use perso nal autos in any way on this project, Contractor shall provide evidence of personal auto liability coverage for each such person.

C. Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident or disease.

D. Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall provide coverage at least as br oad as specified for the underlying coverages.

Any such coverage provided under an umbrella liability policy shall include a drop down provision providing primary coverage above a maximum $25,000 self-insured retention for liability not covered by primary but covered by the umbrella. Coverage shall be provided on a “pay on behalf” basis, with defense costs payable in addition to po licy limits. Policy shall contain a provision obligating insurer at the time insured’s liability is determined, not requiring actual payment by the insured first. There shall be no cross liability exclusion precluding coverage for claims or suits by one insured against another. Coverage shall be app licable to City for injury to employees of Contractor, subcontractors or others involved in th e Work. The scope of coverage provided is subject to approval of City following receipt of pr oof of insurance as required herein. Insurance procured pursuant to these requirements shall be wr itten by insurers that are admitted carriers in the State of California and with an A.M. Best ratin g of A or better and a minimum financial size VII.

E. General conditions pertaining to provision of in surance coverage by Contractor.

Contractor and City agree to the following with respect to insurance provided by Contractor:
(1) Contractor agrees to have its insurer endorse t he third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contractor also agrees to require all contractors, and subcontractors to do so likewise. (2) No liability insurance coverage provided to com ply with this Agreement shall prohibit Contractor, or Consultant’s employee s, or agents, from waiving the right of subrogation prior to a loss. Contractor agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.
(3) All insurance coverage and limits provided by C ontractor and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing 777
8 contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage.
(4) None of the coverages required herein will be i n compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved in writing.
(5) No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” cl aims, including any exclusion for bodily injury to an employee of the insured or any contractor or subcontractor. (6) All coverage types and limits required are subj ect to approval, modification and additional requirements by the City, as the nee d arises. Contractor shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent. (7) Proof of compliance with these insurance requir ements, consisting of certificates of insurance evidencing all of the cov erages required and an additional insured endorsement to Contractor’s general liability polic y, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any t ime and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contractor or deducted from sums due Contractor, at City option. (8) Certificate(s) are to reflect that the insurer will provide 30 days notice to City of any cancellation of coverage. Contractor a grees to require its insurer to modify such certificates to delete any exculpatory wording stat ing that failure of the insurer to mail written notice of cancellation imposes no obligation, or th at any party will “endeavor” (as opposed to being required) to comply with the requirements of the certificate. (9) It is acknowledged by the parties of this Agree ment that all insurance coverage required to be provided by Contractor or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self insurance available to City.
(10) Contractor agrees to ensure that subcontractor s, and any other party involved with the project that is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage required of Contrac tor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section . Contractor agrees that upon request, all agreements with subcontractors and others engaged i n the project will be submitted to City for review.
(11) Contractor agrees not to self-insure or to use any self-insured retention’s or deductibles on any portion of the insurance require d herein except as disclosed to and approved by the City and further agrees that it will not all ow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this Agreement to self-insure its o bligations to City. City expressly approves 778
9 maintenance by the Contractor of a $100,000 deducti ble on its current Professional Liability insurance policy.
(12) The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City will negotiate additional comp ensation proportional to the increased benefit to City.
(13) For purposes of applying insurance coverage on ly, this Agreement will be deemed to have been executed immediately upon any p arty hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. (14) Contractor acknowledges and agrees that any ac tual or alleged failure on the part of City to inform Contractor of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard.
(15) Contractor will renew the required coverage an nually as long as City, or its employees or agents face an exposure from operation s of any type pursuant to this Agreement.

This obligation applies whether or not the Agreemen t is canceled or terminated for any reason.

Termination of this obligation is not effective until City executes a written statement to that effect. (16) Contractor shall provide proof that policies o f insurance required herein expiring during the term of this Agreement have bee n renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contractor’s insurance agent to this effect is acceptable. A certificate of insurance and/or addi tional insured endorsement as required in these specifications applicable to the renewing or new co verage must be provided to City within five days of the expiration of the coverages.
(17). The provisions of any workers’ compensation o r similar act will not limit the obligations of Contractor under this Agreement. Contractor expressly agrees not to use any statutory immunity defenses under such laws with re spect to City, its employees, officials and agents.
(18) Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive.
(19) These insurance requirements are intended to b e separate and distinct from any other provision in this Agreement and are inten ded by the parties here to be interpreted as such.
(20). The requirements in this Section supersede al l other sections and provisions of this Agreement, except Exhibit “D” “Modifications to Contract Documents”, to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 779
10 (21) Contractor agrees to be responsible for ensuri ng that no contract used by any party involved in any way with the project rese rves the right to charge City or Contractor for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to City. It is not the i ntent of City to reimburse any third party for the cost of complying with these requirements. There s hall be no recourse against City for payment of premiums or other amounts with respect thereto.
(22) Contractor agrees to provide immediate notice to City of any claim or loss against Contractor arising out of the work performe d under this Agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.

SECTION 23. BONDS

A. Performance Bond. If specifically requested by City in the Bidding Documents, attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Performance Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to C ontractor until it has been received and approved by the City.

B. Payment Bond. If required by law or otherwise s pecifically requested by City in the Bidding Documents, attached hereto and incorpor ated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City.

C. Bond Provisions. Should, in City's sole opinion , any bond become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the affected bond within 10 days of receiving notice from City. In the even t the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bo nds at least ten (10) days prior to expiration of the original bonds. No further payments shall b e deemed due or will be made under this Agreement until any replacement bonds required by t his Section are accepted by the City. To the extent, if any, that the total compensation is incr eased in accordance with the Agreement, the Contractor shall, upon request of the City, cause t he amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. To the extent available, the bonds shall further provide t hat no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause.

D. Surety Qualifications. Only bonds executed by a n admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The surety must be a California-admitted surety with a current A.M. Best ’s rating no less than A:VIII and satisfactory to the City. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is i n conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City. 780
11 SECTION 24. SAFETY
Contractor shall execute and maintain its work so a s to avoid injury or damage to any person or property. Contractor shall comply with the require ments of the specifications relating to safety measures applicable in particular operations or kin ds of work. In carrying out its Work, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary p recautions for the safety of employees appropriate to the nature of the Work and the conditions under which the Work is to be performed.

Safety precautions as applicable shall include, but shall not be limited to, adequate life protection and life saving equipment; adequate illumination fo r underground and night operations; instructions in accident prevention for all employe es, such as machinery guards, safe walkways, scaffolds, ladders, bridges, gang planks, confined space procedures, trenching and shoring, fall protection and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and adeq uate facilities for the proper inspection and maintenance of all safety measures. Furthermore, Contractor shall prominently display the names and telephone numbers of at least two medical docto rs practicing in the vicinity of the Project, as well as the telephone number of the local ambulance service, adjacent to all telephones at the Project site.

SECTION 25. WARRANTY
Contractor warrants all Work under the Contract (wh ich for purposes of this Section shall be deemed to include unauthorized work which has not b een removed and any non-conforming materials incorporated into the Work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that f or a period of one year (or the period of time specified elsewhere in the Contract or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the Work, whichever is later) after the date of final acceptance, Contractor shall within ten (1 0) Days after being notified in writing by the City of any defect in the Work or non-conformance o f the Work to the Contract, commence and prosecute with due diligence all Work necessary to fulfill the terms of the warranty at his sole cost and expense. Contractor shall act sooner as reques ted by the City in response to an emergency.

In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the Work (or work of other contractors) damaged by its defective Work or which becomes damaged in the course of repairing or replacing defective W ork. For any Work so corrected, Contractor's obligation hereunder to correct defective Work shall be reinstated for an additional one year period, commencing with the date of acceptance of such corr ected Work. Contractor shall perform such tests as the City may require verifying that any co rrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing , including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees o f subcontractors, suppliers and manufacturers with respect to any portion of the Work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by se parate agreement and Contractor agrees to enforce such warranties and guarantees, if necessar y, on behalf of the City. In the event that Contractor fails to perform its obligations under t his Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming Work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand. 781
12 SECTION 26. LAWS AND REGULATIONS
Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Contract or the Work, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with Work. If the Contractor observes that the drawings or specifications are at variance with any law, rule or regulation, it shall promptly notify the City in writing. Any necessary changes shall be made by written change order.

If the Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, the Contractor shall be solely responsible for all costs arising there from. Contractor shall defend, indem nify and hold City, its officials, directors, officers, employees and agents free and harmless, p ursuant to the indemnification provisions of this Contract, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

SECTION 27. PERMITS AND LICENSES
Contractor shall be responsible for securing, at it s own expense, and paying for all permits and licenses necessary to perform the Work described herein.

SECTION 28. TRENCHING WORK
If the Total Contract Price exceeds $25,000 and if the Work governed by this Contract entails excavation of any trench or trenches five (5) feet or more in depth, Contractor shall comply with all applicable provisions of the Labor Code, including Section 6705. To this end, Contractor shall submit for City's review and approval a detailed pl an showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer.

SECTION 29. HAZARDOUS MATERIALS AND DIFFERING CONDITIONS As required by Public Contract Code Section 7104, i f this Contract involves digging trenches or other excavations that extend deeper than four (4) feet below the surface, Contractor shall promptly, and prior to disturbance of any condition s, notify City of: (1) any material discovered in excavation that Contractor believes to be a hazardous waste that is required to be removed to a Class I, Class II or Class III disposal site; (2) s ubsurface or latent physical conditions at the site differing from those indicated by City; and (3) unknown physical conditions of an unusual nature at the site, significantly different from those ord inarily encountered in such contract work. Upon notification, City shall promptly investigate the conditions to determine whether a change order is appropriate. In the event of a dispute, Contractor shall not be excused from any scheduled completion date and shall proceed with all Work to be performed under the Contract, but shall retain all rights provided by the Contract or by law for making protests and resolving the dispute.

SECTION 30. UNDERGROUND UTILITY FACILTIES
To the extent required by Section 4215 of the Government Code, City shall compensate Contractor for the costs of: (1) locating and repairing damag e to underground utility facilities not caused by the failure of Contractor to exercise reasonable care; (2) removing or relocating underground utility facilities not indicated in the construction drawin gs; and (3) equipment necessarily idled during such work. Contractor shall not be assessed liquidated damages for delay caused by failure of City to provide for removal or relocation of such utility facilities.

782
13 SECTION 31. PREVAILING WAGES
Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 1600, et seq., ("Prevailing Wage Laws"), the Davis-Bacon Act of 1931 and 23 USC 113, which require the payment of prevailing wage rates and the performance of other requirement s on "public works" and "maintenance" projects. Contractor agrees to fully comply with such Prevailing Wage Laws.

The federal minimum wage rates are available directly from the Department of Labor Website at:

http://www.wdol.gov/wdol/scafiles/davisbacon/ca.html , and they will be included in this Agreement as Exhibit “F.” Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Contractor's principal place of business and at the project site. Contractor shall defend, indemnify a nd hold the City, its elected officials, officers, employees and agents free and harmless from any cla im or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

SECTION 32. APPRENTICEABLE CRAFTS
When Contractor employs workmen in an apprenticed craft or trade, Contractor shall comply with the provisions of Section 1777.5 of the Labor Code with respect to the employment of properly registered apprentices upon public works. The prim ary responsibility for compliance with said section for all apprenticed occupations shall be with Contractor.

SECTION 33. HOURS OF WORK
Contractor is advised that eight (8) hours labor constitutes a legal day's work. Pursuant to Section 1813 of the Labor Code, Contractor shall forfeit a penalty of $25.00 per worker for each day that each worker is permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week, except when payment for overtime is made at not less than one and one-half (1-1/2) times the basic rate for that worker.

SECTION 34. PAYROLL RECORDS
In accordance with the requirements of Labor Code S ection 1776, Contractor shall keep accurate payroll records which are either on forms provided by the Division of Labor Standards Enforcement or which contain the same information r equired by such forms. Responsibility for compliance with Labor Code Section 1776 shall rest solely with Contractor, and Contractor shall make all such records available for inspection at all reasonable hours.

SECTION 35. CONTRACTOR’S LABOR CERTIFICATION
By its signature hereunder, Contractor certifies that he is aware of the provisions of Section 3700 of the California Labor Code which require every em ployer to be insured against liability for Worker's Compensation or to undertake self-insuranc e in accordance with the provisions of that Code, and agrees to comply with such provisions bef ore commencing the performance of the Work. A certification form for this purpose, which is attached to this Contract as Exhibit "C" and incorporated herein by reference, shall be executed simultaneously with this Contract.

SECTION 36. LABOR AND MATERIAL RELEASES
Contractor shall furnish City with labor and materi al releases from all subcontractors performing work on, or furnishing materials for, the work governed by this Contract prior to final payment by City.
783
14 SECTION 37. EQUAL OPPORTUNITY EMPLOYMENT
Contractor represents that it is an equal opportuni ty employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the state or Federal Constitutions. Such non- discrimination shall include, but not be limited to , all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

SECTION 38. ANTI-TRUST CLAIMS
This provision shall be operative if this Contract is applicable to California Public Contract Code Section 7103.5. In entering into this Contract to supply goods, services or materials, the Contractor hereby offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton A ct (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code) arising from purchas es of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the City tender final payment to the Contractor, without further acknowledgment by the parties.

SECTION 39. NOTICES
All notices hereunder and communications regarding interpretation of the terms of the Contract or changes thereto shall be provided by the mailing th ereof by registered or certified mail, return receipt requested, postage prepaid and addressed as follows:

ITY C ONTRACTOR

City of Eastvale Elecnor Belco Electric, Inc.
12363 Limonite Ave., Suite910 14320 Albers Way
Eastvale, CA 91752 Chino, CA 91710
Attn: Jimmy Chung, City Engineer Attn: John Wong, Vice President

Any notice so given shall be considered received by the other party three (3) days after deposit in the U.S. Mail as stated above and addressed to the party at the above address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

SECTION 40. ENTIRE CONTRACT; MODIFICATION
This Agreement, including the attached Exhibits “A” through “G”, the advertised bid documents, associated addendas, is the entire, complete, final and exclusive expression of the parties with respect to the matters addressed therein and supers edes all other agreement or understandings, whether oral or written, or entered into between Co ntractor and City prior to the execution of the agreement. No prior statements, representations or other agreements, whether oral or written, made by any parties which are not embodied herein shall be valid and binding. No amendment to this Agreement shall be valid and binding unless in writing duly executed by the parties or their authorized representatives.

SECTION 41. TIME IS OF THE ESSENCE
Time is of the essence in the performance of this Contract. 784
15 SECTION 42. ASSIGNMENT FORBIDDEN
Contractor shall not, either voluntarily or by acti on of law, assign or transfer this Contract or any obligation, right, title or interest assumed by Con tractor herein without the prior written consent of City. If Contractor attempts an assignment or transfer of this Contract or any obligation, right, title or interest herein, City may, at its option, terminate and revoke the Contract and shall thereupon be relieved from any and all obligations to Contractor or its assignee or transferee.

SECTION 43. GOVERNING LAW
This Contract shall be governed by the laws of the State of California.

SECTION 44. COUNTERPARTS
This Contract may be executed in counterparts, each of which shall constitute an original.

SECTION 45. SUCCESSORS
The parties do for themselves, their heirs, executors, administrators, successors, and assigns agree to the full performance of all of the provisions contained in this Contract.

SECTION 46. ATTORNEYS’ FEES
If either party commences an action against the oth er party, either legal, administrative or otherwise, arising out of or in connection with thi s Contract, the prevailing party in such action shall be entitled to have and recover from the losi ng party reasonable attorneys' fees and all other costs of such action.

SECTION 47. CLAIMS OF $375,000 OR LESS
Notwithstanding any other provision herein, claims of $375,000 or less shall be resolved pursuant to the alternative dispute resolution procedures set forth in Public Contracts Code 20104, et seq.

SECTION 48. PROHIBITED INTERESTS
A. Solicitation. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona f ide employee working solely for Contractor, to solicit or secure this Contract. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Contract. For breach or violation of this warranty, City shall have the right to terminate this Contract without liability.

B. Conflict of Interest. For the term of this Contract, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Contract, or obtain any present or anticipated material benefit arising there from.

785
SECTION 49. CERTIFICATION OF LICENSE
Contractor certifies that as of the date of executi on of this Contract, Contractor has a current contractor's license of the classification indicated below under Contractor's signature.

IN WITNESS WHEREOF, each of the parties has caused this Contract to be executed on the day and year first above written.

CITY OF EASTVALE ELECNOR BELCO ELECTRIC, INC.

By: _________________________ By: ________________ _________ Signature Signature

_________________________ _______________________ __
Name Name

_________________________ _______________________ __
Title Title

Attest: Attest:
_________________________ _______________________ __
City Clerk Secretary

_________________________
Classification of Contractor’s License

_________________________
Contractor’s License Number

786
17 EXHIBIT "A" PLANS AND SPECIFICATIONS

The following plans and specifications are incorporated into this Contract herein by this reference:

The work for which this proposal is submitted is for construction in conformance with the project plans described below, including any addenda theret o, the contract annexed hereto, and also in conformance with the Riverside County Road Improvem ent Standards and Specifications, dated December 20, 2007 (herein referred to as the Standa rd Construction Specifications), California Department of Transportation Standard Plans, dated 2010, the Standard Specifications, dated 2015 (herein referred to as the State Standard Specifications), and the Labor Surcharge and Equipment Rental Rates in effect on the date the work is accomplished.

The Plans and Specifications for the work are as follows:

• Advertised bid documents and associated Addendas fo r: Citywide Retroreflective Backplates on Traffic Signal Indicators Project #92016

787
18 EXHIBIT "B" BID PROPOSAL

The following Bid Proposal from Elecnor Belco Electric, Inc. is incorporated into this Contract.

[INSERT BID PROPOSAL]

788
19 EXHIBIT "C" SPECIAL CONDITIONS

Standard Erosion and Sediment Control Plan Notes:

1. Dust control shall conform to Section 10, “Dust Control”, Section 7-1.01F, “Air Pollution Control”, Section 17, “Watering”, and Section 18 “D ust Palliative” of the State Standard Specifications, Rules no. 401, 402, 403 and 403.1 o f the South Coast Air Quality Management District (AQMD), Riverside County Code, Chapter 8.52, “Fugitive Dust Reduction Program For Coachella Valley”, all other applicable Federal and State laws, and the requirements set forth herein.

2. The Contractor is cautioned that failure to control fugitive dust may result in fines being levied by the South Coast Air Quality Management District to both the Contractor and the City of Eastvale, as owner. The Contractor shall b e fully responsible for payment of all fines pertaining to air pollution control violation s, resulting from Contractor’s operations related to the construction contract, which may be levied against both the Contractor and the City of Eastvale by the AQMD or other regulatory agencies. The Contractor’s attention is directed to Section 7-1.01, “Laws to be Observed” of the State Standard Specifications.

The cost of all fines levied against the City of Eastvale will be deducted from any moneys due or which may become due to the Contractor, unle ss other payment arrangements are made by the Contractor.

3. Dust control of all of the contractor’s operations is required 24 hours per day, 7 days a week for the duration of the contract, and until the disturbed soil is permanently stabilized.

The Contractor shall take every precaution to preve nt emissions of fugitive dust from the project site, from locations of stockpiled material s, from unpaved driving surfaces, from haul vehicles, from inactive construction areas, an d from all other operations of the Contractor. The Contractor shall plan for and carr y out proper and efficient measures to prevent his operations from producing dust in amoun ts damaging to property or which constitute a public nuisance, or which cause harm to person living or working in the vicinity of the work. Of particular concern are emissions o f PM10 particles, which are fine particulate matter of 10 microns or less and which are associated with sickness and death from respiratory disease.

4. The Contractor shall respond to complaints by mobilizing equipment and personnel at the construction site within 2 hours of each complaint to control fugitive dust.

5. Attention is directed to AQMD Rule 403.1, which app lies to all contracts within the City of Eastvale. That AQMD Rule requires the Contractor to take specified dust control actions when prevailing wind speeds exceed 25 miles per hour. Wind forecasts, AQMD Rules and other related information are provided by AQMD at 1 -800-CUT-SMOG and at www.aqmd.gov .

6. The Contractor shall utilize the “Best Available Control Measures” of controlling fugitive dust, as prepared by the AQMD. However, if fugitiv e dust crosses the project boundary, more effective control measures, including the “Best Available Control Measures” shall be implemented.

7. A site specific fugitive dust control plan shall be submitted to the City Engineer for review and approval at least 10 days prior to the start of construction.

8. The fugitive dust control plan shall include the “Reasonably Available Control Measures” and “Best Available Control Measures” of controlling fugitive dust, as may be appropriate 789
20 and necessary, including by not limited to watering , application of chemical dust suppressants, wind fencing, covering of haul vehicl es, haul vehicle bed-liners, grading, planting of vegetation, the use of a 24 hour environmental observer, and track-out controls at locations where unpaved construction accesses in tersect with paved roads. The use of chemical stabilizers, which are approved by all environmental regulatory agencies, and the use of reclaimed water is encouraged. If water is intended as a primary dust control tool, the dust control plan shall provide for at least one 2,000 gallon water truck for every 4 acres of disturbed soil, unless otherwise approved by the City Engineer.

9. If the Project Inspector determines that the projec t scope and the forecasted weather conditions are such that the Contractor’s work is unlikely to be a source of dust emissions, the Construction Engineer has the authority to waiv e the requirements for submittal of a dust control plan and for placement of the dust con trol signs described herein. However, the Contractors responsibilities for the control of fugitive dust and the other requirements of this section may not be waived.

10. A completion notice will not be filled, and the fin al payment will not be made to the Contractor until the areas of disturbed soil on the construction site, including roadway shoulders, are suitable stabilized for long term control of fugitive dust.

11. This signature of the Contractor on the Proposal co nstitutes acknowledgement by the Contractor of the dust control enforceability of those requirements.

12. Full compensation for conformance with these dust abatement requirements, including lab equipment and materials, developing water supply an d incidentals, shall be considered as included in items of work, and no additional compensation will be allowed therefore.

13. The successful Contractor shall attend an AQMD PM10 Dust Control Program training session, and furnish evidence of attendance to the City Engineer. Attendance at AQMD training seminars can be scheduled the AQMD at 1-86 6-861-DUST or by email to [email protected] . Current AQMD certification of previous attendanc e will be accepted. At that training session, the successful Contractor will be furnished with the AQMD prepared Rule 403 and Rule 403.1 implementatio n handbooks, which include the Best Available Control Measures” and “Reasonably Av ailable Control Measures”, and other associated information, including a listing o f suggested dust control related to devices, material and chemicals.

14. Any days on which the Contractor is prevented from working, due to the requirements of AQMD Rules, will be considered as non-working days, in accordance with Section 8-1.06, “Time of Completion” of the State Standard Specification.

790
21 EXHIBIT "D" CERTIFICATION LABOR CODE-SECTION 1861

I, the undersigned Contractor, am aware of the prov isions of Section 3700 et seq. of the Labor Code which require every employer to be insur ed against liability for Worker's Compensation or to undertake self-insurance in acco rdance with the provisions of the Code, and I, the undersigned Contractor, agree to and will comply with such provisions before commencing the performance of the Work on this Contract.

Elecnor Belco Electric, Inc,

By:

John Wong
Vice President
791
22 EXHIBIT “E” CONTRACT MODIFICATIONS
None

792
23 EXHIBIT “F” SUPPLEMENTAL REQUIREMENTS

793
24 FAITHFUL PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:

THAT, WHEREAS, THE CITY OF EASTVALE, hereinafter designated as the “City”, entered into a Contract dated _____________________ _______________, 20__, with ________________________________________________ he reinafter designated as the “Contractor” for the work described as follows:
______________________________ Project
WHEREAS, the said Contractor is required under terms of said Contract to furnish a bond for the faithful performance of said Contract;
WHEREAS, the Contract is by reference made a part hereof; NOW, THEREFORE, we, ______________________________________________ __ the undersigned Contractor, as Principal, and _____ _______________________________ (corporate surety), a corporation organized and exi sting under the laws of the State of ________________________, and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of __________________________________ dollars ($______ _____________), lawful money of the United States, said sum being not less than one hundred (100) percent of the total Contract amount, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, THAT, if the above bounded Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, and agreements in the said Contract and any alterations thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner th erein specified, and in all respects according to their true intent and meaning, and shall indemni fy and save harmless the City, its officers and agents, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and virtue.

As a condition precedent to the satisfactory comple tion of the said Contract, the above obligation in said amount shall hold good for a per iod of one (1) year after the completion and acceptance of the said work, during which time if t he above bounded Contractor, his or its heirs, executors, administrators, successors or assigns sh all fail to make full, complete, and satisfactory repair and replacements or totally protect the City from loss or damage made evident during said period of one year from the date of acceptance of s aid work, and resulting from or caused by defective materials or faulty workmanship in the pr osecution of the work done, the above obligation in the said sum shall remain in full for ce and effect. However, anything in this paragraph to the contrary notwithstanding, the obli gation of the Surety hereunder shall continue so long as any obligation of the Contractor remains.
794
25 And the Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder or the specifications accompanying the same shall, in any way, affect its obligations on this bond and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the Contract or to the work or the spe cifications. Said Surety hereby waives the provisions of Sections 2819 and 2845 of the Civil Code of the State of California.

In the event suit is brought upon this bond by the City and judgment is recovered, the Surety shall pay all costs incurred by the City in such suit, including reasonable attorney’s fees to be fixed by the Court.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this ____ ___ day of _______________________, 20__.

____________________________________ ______________ ______________________ Name of Surety Contractor
By:_________________________________
Title: _______________________________
____________________________________
Mailing Address of Surety and
_____________________________________ By:__________ _______________________ Telephone No. of Surety Title: _________________ ______________ By: _________________________________
Attorney in Fact
NOTE: If Contractor is Partnership, all parties must ex ecute Bond.

IMPORTANT: Surety companies executing Bonds must appear on t he Treasury Department’s most current list (Circular 570 as amended) and be authorized to tran sact business in California.

NOTICE: The signature of the Surety on this bond must be acknowledged before a notary public, and this bond must be accompanied by evidence of the signatory’s appo intment as attorney in fact and authority to bind the Surety.

MANDATORY: The Surety shall be authorized and licensed by th e California Insurance Commissioner as an “admitted surety insurer.” (See Cal. Code Civ. Proc. § § § 995.310, 995.311, 995.320) APPROVAL: Bonds must be approved by the City. In order to verify the status of the Surety as an admitted surety, the Surety shall provide the City with at least one of the following: (1) a print-out of information from the web-site of the Department of Insurance confirming the Surety i s an admitted surety insurer and attaching it to th e bond; or (2) a certificate from the Riverside County Clerk that the certificate of authority of the Surety has not been surrendered, revoked, cancelled, annulled or suspen ded and confirming that the Surety is an admitted s urety and attaching the certificate to the bond. (See Cal. Code Civ. Proc. Code § 995.311). 795

26 PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS:

THAT, WHEREAS, THE CITY OF EASTVALE, hereinafter designated as the “City”, has awarded to _______________________________________________, hereinafter designated as the “Contractor” a Contract for the work described as follows:
_________________________________ Project
WHEREAS, the Contractor is required by the Contract and by the provisions of Division Third, Part 4, Title 15, Chapter 7 of the Civil Cod e to furnish a bond in connection with the Contract, as hereinafter set forth.

NOW, THEREFORE, we, ______________________________________________ __, the undersigned Contractor, as Principal, and _____ _________________________________, a corporation organized and existing under the laws of the State of ______________________ duly authorized to transact business under the laws of t he State of California, as Surety, are held and firmly bound unto the ________________________ in t he sum of _____________________ dollars ($____________________) said sum being not less than one hundred (100) percent of the total Contract amount payable by the city, under the terms of the Contract, for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, THAT, if the Contractor, his or its heirs, executors, administrators, successors and assigns or subcontractors shall fail to pay for any materials, provisions, provender or other supplies or teams, implements or machinery used in, upon, for or about the performance of the work cont racted to be done, or shall fail to pay for any work or labor thereon of any kind, or shall fail to pay any persons named in Civil Code section 3181, or shall fail to pay for amounts due under the Unemployment Insurance Code with respect to such work or labor as required by the pr ovisions of Division Third, Part 4, Title 15, Chapter 7 of the Civil Code, or shall fail to pay for any amounts required to be deducted, withheld, and paid over to the Employment Development Departm ent from the wages of employees of the Contractor and subcontractors pursuant to Section 1 3020 of the Unemployment Insurance Code with respect to such work or labor, and provided th at the claimant shall have complied with the provisions of that Code, the Surety or Sureties her eon will pay for the same in amount not exceeding the sum specified in the Contract, otherwise the above obligation shall be void. In case suit is brought upon this bond, the Surety will pay all court costs, expenses and reasonable attorney’s fee to the prevailing party to be fixed by the court.

This bond shall inure to the benefit of any and all persons, companies and corporations entitled to file claims under Section 3181 of the Civil Code, so as to give a right of action to them or to their assigns in any suit brought upon this bond.

And the Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder or the specifications accompanying the same shall i n any way affect its obligation on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contractor to the work or to the specifications. 796

27 IN WITNESS WHEREOF, we have hereunto set our hands and seals this _________ day of ___________________________, 20__.

IMPORTANT: Surety companies executing Bonds must appear on t he Treasury Department’s most current list (Circular 570 as amended) and be authorized to tran sact business in California.

MANDATORY: The Surety shall be authorized and licensed by th e California Insurance Commissioner as an “admitted surety insurer.” (See Cal. Code Civ. Proc. § 995.311) APPROVAL: Bonds must be approved by the City. In order to verify the status of the Surety as an admitted surety, the Surety shall provide the City with at least one of the following: (1) a print-out of information from the web-site of the Department of Insurance confirming the Surety i s an admitted surety insurer and attaching it to th e bond; or (2) a certificate from the Riverside County Clerk that th e certificate of authority of the Surety has not be en surrendered, revoked, cancelled, annulled or suspended and confi rming that the Surety is an admitted surety and att aching the certificate to the bond. (See Cal. Code Civ. Proc. Code § 995.311).

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AGENDA STAFF REPORT

City Council Meeting

CITY COUNCIL BUSINESS

Agenda Item No. 13.3
January 11, 2023
Two Year Professional Services Agreement Amendment with Urban Futures, Inc. for Financial Advisory Services
Prepared By:

Amanda Wells, Finance Director/City Treasurer
Recommended Action(s)
Staff recommends that the City Council:
1 .

Approve a Two Year Professional Services Agreement Amendment with Urban Futures, Inc. in an amount not-to-exceed $100,000; and
2 .

Authorize the City Manager to execute all necessary documents.

Summary
The City issued a Request for Proposals (RFP) for Municipal Financial Advisory Services on October 4, 2022 from qualiﬁed ﬁrms. The RFP speciﬁcally sought professional services of ﬁnancial planning for the City's Civic Center Project within two phases, preliminary ﬁnancial analysis and management of debt issuance. The City requested applicants propose solu8ons on the two dis8nct phases. The proposed services were required to include key assump8ons regarding recommenda8ons on ﬁnancing and funding plans, presenta8ons to City Council and, and complete management of the debt issuance process.

Background
The city released RFP No. FIN20221004 on October 4, 2022. The city published the no8ce invi8ng proposals on the City of Eastvale's website, processed no8ﬁca8ons through PlanetBids, and posted the RFP on both the California Society of Municipal Finance Oﬃcer's website and message boards with a closing date of November 3, 2022.
12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
951.361.0900 |
eastvaleca.gov
844
The city received four proposals in response to the RFP from the following ﬁrms, listed in alphabetical order:

CalMuni Advisors, LLC
Fieldman, Rolapp & Associates, Inc.

KNN Public Finance
Urban Futures, Inc.

Finance department staﬀ evaluated the proposals and rated the ﬁrms based on the ﬁrm's understanding of the RFP scope of work, technical qualiﬁca8ons, experience, proposed project work plan, and price in accordance with sec8on 4.06.090(b) of the city's municipal code. The top two ﬁrms with the highest score were interviewed by a panel of two ﬁnance staﬀ. The ﬁrms that were interviewed were:

Firm
Location
Hourly
Rates
Phase One
(Financial
Planning)
Phase Two (Debt
Issuance)
KNN Public Finance
(KNN)
Los Angeles,
CA
$205-
$345
Hourly
$40,000-$80,000
Urban Futures, Inc. (UFI)
Orange, CA
$175-
$275
$50,000
$50,000

Interviews were rated based on the same criteria as the proposals. Final scores were weighted at 70% proposal evaluation and 30% interview.

The RFP requested each ﬁrm provide costs and project scopes for two phases of the project, ﬁnancial planning and debt issuance. Based on proposal evalua8on and interview scores, UFI was selected as the most compe88ve proposal. Established in 1972, UFI is one of California’s leading municipal ﬁnancial advisory ﬁrms serving hundreds of California ci8es, coun8es, and special districts. UFI was selected based upon the technical knowledge and exper8se of their project staﬀ in municipal ﬁnancial planning, debt issuance, understanding of the City and scope of work, and overall cost.

The ini8al contract period will be eﬀec8ve January 11, 2023, through January 10, 2025. Bid prices would remain eﬀec8ve and in force for the en8re contract period. In the ﬁrst phase of the agreement, UFI will work with staﬀ to develop the ﬁnancing plan required to support the City’s long-term infrastructure needs created by the Civic Center Project, which includes city hall, police sta8on, ﬁre sta8on, library, parking structures, and other public infrastructure such as curbs, guMers, sidewalks, and open space. The plan development would be based upon the hourly rate for general ﬁnancial services. The issuance of bonds or other municipal ﬁnancing would occur in the future phase two, as needed, based upon the established financing plan.

Staﬀ recommends that the City Council approve the Professional Services Agreement with UFI for two years. Should the Civic Center Project and debt ﬁnancing process extend beyond two years staﬀ will request an amendment to the contract for the not-to-exceed amount and the term of the agreement.
12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
951.361.0900 |
eastvaleca.gov
845
Environmental
Government ﬁnancial planning ac8vi8es are not considered a Project as deﬁned by the California Environmental Quality Act (CEQA) and no environmental review is required.

Strategic Plan Action - Priority Level: 3
| Target #: 3
| Goal #: 10
Conduct financial planning for newly proposed infrastructure Fiscal Impact
The total ﬁscal impact of the approval of the professional services agreement is $100,000 over at least two ﬁscal year; likely $50,000 in ﬁscal year 2022-23 and $50,000 in ﬁscal year 2023-24, depending on the 8me required for each phase of the project. Adequate budget was appropriated during the ﬁscal year 2022-23 budget process in General Fund account number 100-210-6490. As the project will likely con8nue into the next ﬁscal year, addi8onal budget will need to be appropriated during the fiscal year 2023-24 budget process.

Prior City Council/Commission Action
No prior City Council action.

Attachment(s)
Attachment 1 - Scope of Work & Cost Proposal

Attachment 2 - PSA

12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
951.361.0900 |
eastvaleca.gov
846
Urban Futures, Inc.

City of Eastvale
Cost Proposal for
Municipal Financial Advisory Services
RFP#: FIN20221004
Urban Futures, Inc.

December 19, 2022
Public Finance | Public Management |Analytics & Compliance 847
City of Eastvale
Cost Proposal for Municipal Advisory Services December 19, 2022 1 Scope of Work
Phase 1
Based on our understanding of the City’s objectives, UFI’s tasks for Phase 1 shall include, but not be limited to, the following activities:

1. Schedule meetings or calls with staff to request all necessary data and discuss the needs and goals of the City.

2. Undertake a funding analysis for the Project and prepare a finance plan, taking into consideration the following factors:
 Timing & priority of the capital projects , including the Civic Center and downtown development projects
 Internal capacity/ability to complete the capital projects  Available revenues of the City
 Availability of grant funding
 City’s existing debt/liabilities
 Debt financing/capital structure
 Useful life of the capital projects
Based on the analysis, a finance plan is developed that identifies the financing solutions and alternatives for funding the capital projects, evaluates the credit considerations for the financing alternatives, advises on timing and size of the borrowings, and contains preliminary cash flows for the financing alternatives.

3. Review the City’s long -range financing plan when making financing recommendations to determine fiscal impact of the potential financing as well as operations and maintenance costs;

4. Assist with comprehensive credit analysis to determine the anticipated rating, preferred structure, and interest rate scale for the Bonds;

5. Identify and analyze financing solutions and alternatives for funding the Project;

6. Prepare preliminary cash flows for financing alternatives;

7. Prepare a summary of cost of issuance;

8. Prepare a financing workshop presentation to City Council.

Phase 2
UFI will perform the following duties on behalf of the City, as needed during Phase 2:

1. Assist in the selection of additional service providers: UFI is knowledgeable of, and has w orked with, most major firms in the California public finance sector. Should the City wish to go out for RFP for services such as underwriter, bond counsel, disclosure counsel, or trustee, we are experienced with managing and assisting staff with the selection process for these services.

2. Develop the financing timetable: UFI will coordinate with staff to develop a schedule that is consistent with the City’s goals, staff availability, financing timing, and existing City Council meeting schedules.

3. Monitor the transaction process:A primary role as municipal advisor involves the close monitoring of the financing to ensure successful completion. As such, UFI will coordinate all activities of the financing team and will assist in the preparation of information for and review of official statements, legal documents, loan term sheets, cash flows, staff reports, and all other applicable documents or presentations to the Council or rating agency.

4. Provide support to the City relating to financing documents:We are experienced in the delivery of 848
City of Eastvale
Cost Proposal for Municipal Advisory Services December 19, 2022 2 presentations to City Councils and drafting of applicable staff reports regarding adoption of the financing documents.

5. Compute Sizing and Structure of Debt Issue: Utilizing municipal market data and bond sizing applications, UFI will verify cash flows presented by underwriters.

6. Plan and Coordinate Presentations to Ratings Agencies, Bond Insurers, and Investors: UFI is well prepared to assist in the drafting and delivery of credit presentations to rating agencies. While many factors go into the investment decision-making process, the bond rating is often the single most important factor affecting the interest cost on bonds. These credit presentations are then easily adapted for discussions with bond insurers and investors.

7. Interest Rates and Timing: As a result of the ever -changing municipal market environment, UFI will constantly monitor market rates to ensure that financial alternatives as well as refinancing assumptions and recommendations are maximized through proper timing.

8. Pricing and Closing E xecution: UFI offers extensive expertise when it comes to the pricing of municipal securities as our staff includes former investment bankers who are intimately familiar with the underwriting of municipal securities. We closely monitor the municipal markets through our in-house resources, which include a Bloomberg terminal and frequent involvement in bond transactions. In the weeks leading up to a pricing, UFI will monitor and track comparable transactions. Generally, our approach is to recommend that the underwriter employ an aggressive pricing strategy (aiming for approximately 2 times oversubscription) to achieve the best possible pricing for our clients. We will work to ensure the best possible result for the City, without risk of diminishing investor participation, and provide post issuance analysis. In addition to ensuring fair market spreads, UFI will work with the underwriter to analyze alternative couponing strategies that result in the lowest possible true interest cost. We will also push for the m ost flexible call feature.

Cost Proposal
Phase 1
For Phase 1 of the engagement,UFI proposes an hourly, not-to-exceed fee of $50,000 based on the hourly rates and total estimated hours in the table below.

Employee Level Hourly Rate Est. Hours Total
CEO/President $275 60 $16,500
Managing Director/Director $250 134 $33,500
Total Est. Hours / Compensation 194 $50,000
Phase 2
For Phase 2, which shall encompass activities for a bond financing, UFI proposes a fixed fee of $50,000.

Our fees for financial advisory services on bond issuances are contingent on the success of the financing and are paid out of costs of issuance after closing. Our fee for municipal advisory services is exclusive of out-of-pocket expenses such as travel, data recovery, third party data fees, and internal compliance requirements. Out-of-pocket expenses will not exceed $2,500 on any transaction. 849
City of Eastvale
Cost Proposal for Municipal Advisory Services December 19, 2022 Regulatory Disclosure
Disclosure of Conflicts of Interest and Legal or Disciplinary Events. Pursuant to Municipal Securities Rulemaking Board (“MSRB”) Rule G-42, on Duties of Non-Solicitor Municipal Advisors, Municipal Advisors are required to make certain written disclosures to clients and potential clients which include, amongst other things, Conflicts of Interest and any Legal or Disciplinary events of Urban Futures, Inc. (“UFI”) and its associated persons.

Conflicts of Interest. Compensation. UFI represents that in connection with the issuance of municipal securities, UFI may receive compensation from an Issuer or Obligated Person for services rendered, which compensation is contingent upon the successful closing of a transaction and/or is based on the size of a transaction. Consistent with the requirements of MSRB Rule G -42, UFI hereby discloses that such contingent and/or transactional compensation may present a potential conflict of interest regarding UFI’s ability to provide unbiased advice to enter into such transaction. This conflict of interest will not impair UFI’s ability to render unbiased andcompetent advice or to fulfill its fiduciary duty to the Issuer.

It should be noted that other forms of compensation ( i.e., hourly or fixed fee based) may also present a potential conflict of interest regarding UFI’s ability to provide advice regarding a municipal security transaction. These other potential conflicts of interest will not impair UFI’s ability to render unbiased and competent advice or to fulfill its fiduciary duty to the Issuer.

Other Municipal Advisor Relationships. UFI serves a wide vari ety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of another UFI client. These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, UFI could potentially face a conflict of interest arising from these competing client interests. UFI fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with its clients.

If UFI becomes aware of any additional potential or actual conflict of interest after this disclosure, UFI will disclose the detailed information in writing to the issuer or obligated person in a timely manner.

Legal or Disciplinary Events. UFI does not have any legal events or disciplinary history on UFI’s Form MA and Form MA-I, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation.

The Issuer may electronically access UFI’s most recent Form MA and each most recent Form MA -I filed with the Commission at the following website: www.sec.gov/edgar/searchedgar/companysearch.html.

There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA-I filed with the SEC. If any material legal or regulatory action is brought aga inst UFI, UFI will provide complete disclosure to the Issuer in detail allowing the Issuer to evaluate UFI, its management and personnel
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Eastvale City CouncilJanuary 11, 2023

Eastvale City Council
January 11, 2023