REGULAR CITY COUNCIL AGENDA
Eastvale City Hall Council Chambers
12363 Limonite Avenue, Suite 900, Eastvale, CA 91752
Wednesday, February 14, 2024
Regular City Council:
5:30 PM
City Councilmembers
Christian Dinco, Mayor
Michael McMinn, Mayor Pro Tem
Clint Lorimore, Councilmember
Todd Rigby, Councilmember
Jocelyn Yow, Councilmember
Mark Orme, City Manager
Erica Vega, City Attorney
Marc Donohue, City Clerk/Communications Director
This Agenda contains a brief general descrip&on of each item to be considered. Except as otherwise provided by law, no ac&on or direc&on shall be taken on any item not appearing on the following Agenda. Unless legally privileged, all suppor&ng documents, including staff reports, and any wri&ngs or documents provided to a majority of the City Council a-er the pos&ng of this agenda are available for review at Eastvale City Hall, 12363 Limonite Avenue, Eastvale, CA 91752 or you may contact the City Clerk’s Office, at (951) 361-0900 Monday through Thursday from 7:30 a.m. to 5:30 p.m. and available online at www.eastvaleca.gov
.
Members of the public can observe the mee&ng by viewing the live-stream at www.eastvaleca.gov
and may provide public
comment by sending comments to the City Clerk's Office by email at [email protected]
. Staff will monitor emails to the
extent possible during the mee&ng and provide comments as possible. All comments will be made part of the record. Comments will then be read into the record, with a maximum allowance of 3 minutes per individual comment, subject to the Mayor’s discre&on to reduce &me on public comment. All comments should be a maximum of 500 words, which corresponds to approximately 3 minutes of speaking &me. If a comment is received before the agenda item is heard but before the close of the mee&ng, the comment will all be included as a part of the record of the meeting but will not be read into the record.
In compliance with the Americans with Disabili&es Act, if you need special assistance to par&cipate in this mee&ng, you should contact the City Clerk’s Office at (951) 361-0900.
Regular mee&ngs are recorded and made available on the City’s website at www.eastvaleca.gov
. Mee&ng recordings are uploaded
to the City’s website within 24 hours (unless otherwise noted) after the completion of the meeting. 1 1.
CALL TO ORDER
2. ROLL CALL
3. CLOSED SESSION PUBLIC COMMENT
Any member of the public may address the Council on items within the Council’s subject maer jurisdicon, but which are not listed on this agenda during PUBLIC COMMENTS. However, no acon may be taken on maers that are not part of the posted agenda. We request comments made on the agenda be made at the me the item is considered and that comments be limited to three minutes per person with a maximum of six minutes (me may be donated by one person). Please address your comments to the Council and do not engaged in dialogue with individual Council Members, City staff, or members of the audience. Blue speaker forms are available at the front table to the entrance of Council Chambers.
4. CLOSED SESSION ITEM(S)
4.1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code
Section 54956.8) Property: APN 144-080-010 and APN 144-080-011. Agency Negotiator: Public Works Director/City Engineer, Jimmy Chung. Negotiating Parties: Trinidad Perez. Under Negotiation: Price and Terms of Payment.
5. INVOCATION
6. PLEDGE OF ALLEGIANCE
7. ADDITIONS/REVISIONS
The City Council may only add an item to the Agenda a2er making a finding that there is a need to take immediate acon on the item and that the item came to the aenon of the agency subsequent to the posng of the agenda. An acon adding an item to the agenda requires 2/3 vote of the Council. If there is less than 2/3 of the Council members present, adding an item to the agenda requires a unanimous vote. Added items will be placed for discussion at the end of each section unless otherwise noted.
8. PRESENTATIONS/ANNOUNCEMENTS
8.1. Introduction of Commercial Officer
8.2. Future Business Leaders of America Week Proclamation
8.3. Black History Month Proclamation
8.4. Community Enhancement and Safety Year in Review Presentation
9. AGENCY PARTNER UPDATES
9.1. Youth Council Update
2 10.
PUBLIC COMMENT
Any member of the public may address the Council on items within the Council’s subject maer jurisdicon, but which are not listed on this agenda during PUBLIC COMMENTS. However, no acon may be taken on maers that are not part of the posted agenda. We request comments made on the agenda be made at the me the item is considered and that comments be limited to three minutes per person with a maximum of six minutes (me may be donated by one person). Please address your comments to the Council and do not engaged in dialogue with individual Councilmembers, City staff, or members of the audience. Blue speaker forms are available at the front table to the entrance of Council Chambers.
11. CONSENT CALENDAR
Consent Calendar items are normally enacted in one moon. The Mayor or City Council may remove a Consent Calendar item for separate acon. If a member of the public would like to speak on a Consent Calendar item, please complete a blue “Public Comment Form” and submit to the City Clerk prior to the item.
11.1. City Council Meeting Minutes
Submitted by: Marc A. Donohue, City Clerk/Communications Director
RECOMMENDED ACTION(S):
Staff recommends that the City Council approve the City Council meeting minutes from the
regular meeting on January 24, 2024.
11.2. Approval of Tract Map 38594, Improvement Agreement and Improvement Securities for Public Improvements Located on the Northwest Corner of Limonite Avenue and Hamner Avenue
Submitted by: Annette Cano-Soza, Assistant Engineer
RECOMMENDED ACTION(S):
Staff recommends that the City Council:
1 .
Approve and adopt the Resolution for the final map for Tract No. 38594; and 2 .
Approve a Subdivision Improvement Agreement for related public improvements and authorize the City Manager and the City Clerk to sign said agreement; and
3 .
Approve an Improvement and Credit/Reimbursement Agreement Transportation Uniform Mitigation Fee (TUMF) Program Agreement and authorize the City Manager and the City Clerk to sign said agreement; and 4 .
Accept security in the form of bonds for completion of the related public improvements; and
5 .
Direct City Clerk to record the Subdivision Improvement Agreement.
11.3. Approval of a Final Map for Parcel Map No. 38438, Located on the Northeast Corner of Goodman Way and Hamner Avenue at “The Station” Goodman Commerce Center.
Submitted by: Jimmy Chung, Public Works Director/City Engineer
3 RECOMMENDED ACTION(S):
Staff recommends that the City Council adopt the Resolution approving the final map for Parcel Map No. 38438 located on the northeast corner of Goodman Way and Hamner Avenue at "The Station" Goodman Commerce Center.
11.4. Letter of Support Support for the Jurupa Community Services District’s Advanced Metering Infrastructure Implementation Project Grant Application
Submitted by: Stephanie Vasquez, Assistant to the City Manager
RECOMMENDED ACTION(S):
Staff recommends that the City Council authorize a letter of support for Jurupa
Community Services District’s Advanced Metering Infrastructure Implementation Project Grant Application to the U.S. Bureau of Reclamation Water and Energy Efficiency Grant Program.
11.5. Approval of Energy Efficiency and Conservation Strategy for the Submission of an Energy Efficiency and Conservation Block Grant Application
Submitted by: Alexander Fung, Economic Development Manager
RECOMMENDED ACTION(S):
Staff recommends that the City Council approve and adopt a Resolution adopting an Energy Efficiency and Conservation Strategy of converting the City fleet to include at least 50% Zero Emission Vehicles (excluding emergency and first responder vehicles) by the end of 2065, for the purpose of satisfying a requirement in the U.S.
Department of Energy’s Energy Efficiency and Conservation Block Grant application submission process.
11.6. City of Eastvale Crime Statistics – December 2023
Submitted by: Eva Terekhova, Emergency Management Specialist
RECOMMENDED ACTION(S):
Staff recommends that the City Council receive and file the Eastvale Crime Statistics for December 2023.
11.7. Approval of Task Order No. 3 with Onward Engineering for Inspection Services for Various Public Works and Land Development Projects
Submitted by: James DeMonaco, Public Works Maintenance Coordinator
RECOMMENDED ACTION(S):
Staff recommends that the City Council approve Task Order No. 3 in the amount of $250,000 for an on-call consulting contract with Onward Engineering for Inspection services for various Public Works and Land Development projects.
4 12.
PUBLIC HEARINGS
The public is encouraged to express your views on any maer set for public hearing. It is our procedure to first receive the staff report, then to ask for public tesmony, first from those in favor of the project followed by tesmony from those in opposion to it, and if there is opposion, to allow those in favor, rebual tesmony only as to the points brought up in opposion. To tesfy on the maer, you need to simply come forward to the speaker’s podium at the appropriate me, give your name and address and make your statement. A2er a hearing is closed, you may not further speak on the maer unless requested to do so or are asked quesons by the Mayor or a Councilmember. Public comment is limited to three (3) minutes each with a maximum of six (6) minutes (time may be donated by one speaker.)
13. CITY COUNCIL BUSINESS
13.1. Annual Comprehensive Financial Report (ACFR) and Related Letters and Reports for the Fiscal Year Ended June 30, 2023
Submitted by: Luis De La Hoya, Finance Manager
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, 2023
13.2. Hamner Place City Parcel Development and Citrus Street Property Development
Submitted by: Gustavo Gonzalez, Community Development Director
RECOMMENDED ACTION(S):
Staff recommends that the City Council receive a presentation on alternatives to develop the city-owned parcel at Hamner Place and the city-owned Citrus Street property and provide input and direction to staff on preferred alternatives.
14. CITY MANAGER/CITY STAFF REPORT
15. CITY COUNCIL COMMUNICATIONS/COMMITTEE REPORTS
16. ADJOURNMENT
The next regular mee&ng of the Eastvale City Council is scheduled for Wednesday, February 28, 2024, at 6:30 p.m. at Eastvale City Hall Council Chambers, 12363 Limonite Avenue, Suite 900, Eastvale, CA 91752.
5 17.
AFFIDAVIT OF POSTING
I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing Agenda was posted at the following locations: City Hall, 12363 Limonite Avenue, Suite 910 and website of the City of Eastvale (
www.eastvaleca.gov
,) not less than 72 hours
prior to the meeting.
______________________________________________________
Marc A. Donohue, MMC
City Clerk
6 AGENDA STAFF REPORT
City Council Meeting
AGENCY PARTNER UPDATES
Agenda Item No. 9.1
February 14, 2024
Youth Council Update
Prepared By:
Recommended Action(s)
Not Applicable.
Summary
Not Applicable.
Background
Not Applicable.
Environmental
Not Applicable.
Strategic Plan Action - Priority Level:
N/A
| Target #:
N/A
| Goal #:
N/A
Not Applicable.
Fiscal Impact
Not Applicable.
Prior City Council/Commission Action
Not Applicable.
Attachment(s)
Not Applicable.
12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
951.361.0900 |
eastvaleca.gov
7 Eastvale City Council Meeting Minutes
January 24, 2024 Page - 1
MINUTES
CITY OF EASTVALE
CITY COUNCIL REGULAR MEETING
Wednesday, January 24, 2024
Regular Meeting: 6:30 PM
City Hall Council Chambers
12363 Limonite Avenue, Suite 900
Eastvale, CA 91752
1. CALL TO ORDER
The regular meeting of the Eastvale City Council was called to order at 6:33 p.m. by Mayor Dinco.
2. ROLL CALL
Present: Councilmembers Lorimore, Rigby, Yow, Mayor Pro Tem McMinn, and Mayor Dinco.
Absent:
City Staff
Present: City Manager Orme, City Attorney Vega, and City Clerk/Communications Director Donohue were present at Roll Call. Other staff members were present.
3. CLOSED SESSION PUBLIC COMMENT – None
4. CLOSED SESSION ITEM – None
5. INVOCATION
Pastor Matt Miles from Hillcrest Baptist Church offered the invocation.
6. PLEDGE OF ALLEGIANCE
Councilmember Lorimore led the Pledge of Allegiance.
7. ADDITIONS/REVISIONS – None
8. PRESENTATIONS/ANNOUNCEMENTS – None
9. AGENCY PARTNER UPDATES
9.1 Eastvale Library Update
8 Eastvale City Council Meeting Minutes
January 24, 2024 Page - 2
Eastvale Library Branch manager was not available to provide the update.
9.2 YMCA Update
Ryan Serna, Associate Executive Director of Youth Development, YMCA, provided an update.
10. PUBLIC COMMENT – None
11. CONSENT CALENDAR
On motion of Councilmember Lorimore and second by Mayor Pro Tem McMinn, the City Council voted unanimously to approve the Consent Calendar.
11.1 City Council Meeting Minutes
The City Council approved the City Council meeting minutes from the regular meeting on January 10, 2024.
11.2 Warrant Register: November 2023
The City Council approved the payment of warrants as submitted by the Finance Department under Attachment 1.
11.3 Warrant Register: December 2023
The City Council approved the payment of warrants as submitted by the Finance Department under Attachment 1.
11.4 Treasurer’s Report: December 2023
The City Council received and filed the City’s Treasurer’s Report.
11.5 Planning Department Update
The City Council received and filed the Planning Department Update.
11.6 Public Works Department Update
The City Council received and filed the Public Works Department Update.
11.7 City of Eastvale’s Crime Statistics – October & November 2023 The City Council received and filed the Eastvale Crime Statistics for October & November 2023.
9 Eastvale City Council Meeting Minutes
January 24, 2024 Page - 3
11.8 Annual Development Impact Fee Report as of June 30, 2023 The City Council received and filed the Annual Development Impact Fees Report as of June 30, 2023.
11.9 Adoption of Ordinance Amending Penalties for Cannabis Violations The City Council adopted Ordinance 24-01 entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EASTVALE, CALIFORNIA, AMENDING SECTION 120.04.150 (CANNABIS FACILITIES, CULTIVATION, AND DELIVERIES) TO THE EASTVALE MUNICIPAL CODE.
11.10 Adoption of An Ordinance Adding Sections 10.20.180, 10.20.190, 10.20.200, and
10.32.80 to Chapter 10 of the Eastvale Municipal Code Related to Parking Violations
The City Council adopted Ordinance 24-02 entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EASTVALE, CALIFORNIA, ADDING SECTIONS 10.20.180 (PARKING WITHIN 18 INCHES OF THE CURB), 10.20.190 (PROHIBITED PARKING IN LOADING ZONES), 10.20.200 (STOPPING IN DESIGNATED FIRE LANE), AND 10.32.80 (ABANDONMENT OF VEHICLE) TO THE EASTVALE MUNICIPAL CODE.
11.11 Professional Services Agreement with Englekirk for the Structural Peer Review of City Hall, Library, and Police Station
The City Council authorized the City Manager to execute a contract with Englekirk for an amount of $48,000 plus 10% contingency for a not to exceed amount of $52,800, to provide structural peer review service of City Hall, Library, and Police Station.
11.12 Approval of a Change Order for: Task Order No. 13 for the Leal Plan Check Reviews; and new Task Order No. 15 for the Walmart Plan Check Reviews by CSG Consultants
The City Council:
1. Approved a change to Task Order No. 13 for the On-Call Contract with CSG Consultants, Inc. for the plan check reviews of the Leak Development Project in the amount of $70,000; and
2. Approved the Task Order No. 15 for the On-Call Contract with CSG Consultants, Inc. for the plan check reviews of Walmart Development Project in the amount of $28,692; and
3. Authorized the City Manager to execute all necessary documents. 10 Eastvale City Council Meeting Minutes
January 24, 2024 Page - 4
11.13 Interim Financial Report – Fiscal Year 2023-24, Quarter 1 The City Council received and filed the Interim Financial Report for Fiscal Year 2023- 24, Quarter 1 ending September 30, 2023.
11.14 Congressional Community Project Funding Request Support Letter for the New Eastvale Library
The City Council approved a letter supporting the submittal of a FY 2024-2025 $4 million Congressional Community Project Funding Request for the new Eastvale Library.
Councilmember Yow provided comments.
12. PUBLIC HEARINGS
12.1 User Fee Study Results and Adoption of City Fess for Various City Services Finance Director/City Treasurer Wells provided a PowerPoint presentation and answered related questions.
Mayor Dinco opened the public hearing. Hearing no response, Mayor Dinco closed the public hearing.
On motion of Councilmember Lorimore and second by Mayor Pro Tem McMinn, the City Council voted unanimously to:
1. Conduct a public hearing on consideration of a Resolution establishing and adopting City Fess for various services; and
2. Received the User Fee Study Findings Report; and
3. Approved and adopted Resolution 24-08, Establishing and Adopting City Fess for Various City Services, with a revision to include that the CPI adjustment cap be reduced to 10%; and
4. Directed the City Manager to cause the City’s user fees adopted herein to be reviewed and for updates to be brought to City Council for consideration in five years, or as soon thereafter as is practicable.
13. CITY COUNCIL BUSINESS
13.1 Eastvale Essentials – City Merchandise Shop
Communications Officer Kortsen presented a PowerPoint presentation and answered all related questions.
Mayor Dinco opened the public comment period. Hearing no response, Mayor Dinco closed the public comment period.
11 Eastvale City Council Meeting Minutes
January 24, 2024 Page - 5
On motion of Councilmember Rigby and second by Mayor Pro Tem McMinn, the City Council voted unanimously to approve a surcharge of 12% per item for administrative cost recovery.
There was consensus to direct staff to redesign the logo and bring it back to the City Council at a future meeting.
14. CITY MANAGER/CITY STAFF REPORT
City Manager Orme provided an update on upcoming City events.
15. CITY COUNCIL COMMUNICATIONS/COMMITTEE REPORTS
15.1 League of California Cities
No report was provided.
15.2 Southern California Association of Governments
No report was provided.
15.3 Western Riverside Council of Governments
Mayor Dinco provided a report.
15.4 Riverside Transit Agency
Councilmember Yow provided a report.
15.5 Northwest Mosquito and Vector Control District
Councilmember Lorimore provided a report.
15.6 Riverside County Transportation Commission
Councilmember Lorimore provided a report.
15.7 Western Riverside County Regional Conservation Authority No report was provided.
15.8 Finance Committee
Councilmember Lorimore provided a report.
15.9 Eastvale Schools Committee
No report was provided.
12 Eastvale City Council Meeting Minutes
January 24, 2024 Page - 6
15.10 Business and Development Success Ad-Hoc Committee Councilmember Rigby provided a report.
15.11 Eastvale Legislative Ad-Hoc Committee
No report was provided.
15.12 Eastvale Community Services Ad-Hoc Committee
No report was provided.
15.13 Classification & Compensation Ad-Hoc Committee
No report was provided.
15.14 City Council Communications
The City Council provided comments.
ADJOURNMENT – Mayor Dinco adjourned the regular meeting at 8:51 P.M. The next regular meeting of the Eastvale City Council is scheduled for Wednesday, February 14, 2024, at 6:30 P.M.
Marc A. Donohue, MMC
City Clerk/Communications Director
13 AGENDA STAFF REPORT
City Council Meeting
CONSENT CALENDAR
Agenda Item No. 11.2
February 14, 2024
Approval of Tract Map 38594, Improvement Agreement and
Improvement Securi-es for Public Improvements Located on the Northwest Corner of Limonite Avenue and Hamner Avenue
Prepared By:
Annette Cano-Soza, Assistant Engineer
Recommended Action(s)
Staff recommends that the City Council:
1 .
Approve and adopt the Resolution for the final map for Tract No. 38594; and 2 .
Approve a Subdivision Improvement Agreement for related public improvements and authorize the City Manager and the City Clerk to sign said agreement; and 3 .
Approve an Improvement and Credit/Reimbursement Agreement Transporta.on Uniform Mi.ga.on Fee (TUMF) Program Agreement and authorize the City Manager and the City Clerk to sign said agreement; and
4 .
Accept security in the form of bonds for completion of the related public improvements; and 5 .
Direct City Clerk to record the Subdivision Improvement Agreement.
Summary
The developer, The New Home Company Southern California, LLC has submi8ed a Subdivision Improvement Agreement and securi.es to guarantee construc.on of the off-site public improvements in the following amounts:
Faithful Performance Bond No. ES000163000 $12,977,000 Labor and Material Bond No. ES00016300 $6,488,500 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
eastvaleca.gov
14 Survey Monument Bond No. ES00016300 $29,000
The developer has submi8ed the final map for Tract Map 38594 for considera.on of approval. Staff has determined that the final map is in substan.al conformity with the approved Tenta.ve Tract Map and conditions.
Pursuant to the Transporta.on Uniform Mi.ga.on Fee (TUMF) program, developer is required to construct certain street and transporta.on system improvements of regional importance. Developer is required to pay TUMF which covers the developer's fair share of the costs to deliver the TUMF improvements that help mi.gate the project's traffic impacts on the Regional System of Highways and Arterials. The agreement will provide for the .mely delivery of the TUMF Improvements, provide an op.on for the developer's costs of project delivery and related right of way and offset against the developer's obliga.on to pay the applicable TUMF fees and allow for credit or reimbursement if the actual costs exceed the developer's obligation.
The agreements and bonds are on file in the City Clerk's Office.
Background
On October 18, 2023, the Planning Commission approved Tenta.ve Tract Map 38594 to subdivide and develop 69.8 acres of undeveloped property located at the northwest corner of Limonite and Hamner Avenues into 65 buildable lots and 19 le8ered lots for condominium, mul.-family residential, commercial, civic, open space, and public right-of-way purposes.
Environmental
Project is consistent with the Addendum to the Cer.fied Program Environmental Impact Report prepared for the Leal Master Plan, and all impacts were adequately analyzed pursuant to appliable legal standards in the previously adopted Cer.fied Program Environmental Impact Report and subsequent addenda, in accordance with State CEQA Guidelines Section 15162.
Strategic Plan Action - Priority Level: 2
| Target #: B
| Goal #: C
This approval will continue to develop branding and identity for Eastvale.
Fiscal Impact
Approval of Tract Map 38594, agreements and securi.es will not impact the City's opera.ng budget.
The TUMF agreement will be processed as a passthrough, from WRCOG to the City of Eastvale as intermediary then to the developer. The TUMF reimbursement will have no impact on the city's financials or General Fund.
Prior City Council/Commission Action
On October 18, 2023, Planning Commission approved Tentative Tract Map 38594.
Attachment(s)
Attachment 1 - Vicinity Map
Attachment 2 - Reso - TR 38594
Attachment 3 - Subdivision Improvement Agreement
Attachment 4 - TUMF Agreement
12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
951.361.0900 |
eastvaleca.gov
15 Vicinity Map
NOT TO SCALE
Tract Map 38594
N
Project Site
16 RESOLUTION NO. 24-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EASTVALE, CALIFORNIA, APPROVING THE FINAL MAP FOR TRACT NO. 38594, AN ASSOCIATED
SUBDIVISION IMPROVEMENT AGREEMENT, AND AN ASSOCIATED TUMF
IMPROVEMENT AND CREDIT/REIMBURSEMENT AGREEMENT
WHEREAS, the Tentative Map for Tract No. 38594 was approved by the Planning Commission on October 18, 2023; and
WHEREAS, the Subdividers submitted a Final Map to the City’s Engineering Department and reviewed for compliance with the requirements of the Subdivision Map Act, the City’s Subdivision Ordinance, and the conditions of approval for the Tentative Map; and WHEREAS, the Subdividers have requested the City approve a Subdivision Improvement Agreement in compliance with Government Code section 66462 for the construction of the remaining public improvements required as conditions of approval for the Tentative Map, and have provided security for the Subdivision Improvement Agreement in compliance with Government Code section 66499; and
WHEREAS, the Subdividers have requested the City approve a TUMF Improvement and Credit/Reimbursement Agreement for the construction of certain TUMF Improvements associated with the project.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED, that the City Council of the City of Eastvale pursuant to Government Code Sec?on 66458, hereby approves the Final Map for Tract No. 38594, a copy of which is a? ached hereto andincorporated herein by reference, and authorizes the City Clerk to sign the Final Map and cause it to be recorded.
BE IT FURTHER RESOLVED, that the City Council of the City of Eastvale hereby approves the Subdivision Improvement Agreement for Tract No. 38594 with The New Home Company Southern California LLC, a Delaware limited liability company, a copy of which is a? ached hereto and incorporated by reference, accepts the bonds provided as security for the comple?on of the improvements, and authorizes the City Manager to sign said agreement on behalf of the City Council and cause it to be recorded.
BE IT FURTHER RESOLVED, that the City Council of the City of Eastvale hereby approves the Credit/Reimbursement Agreement Transporta?on Uniform Mi?ga?on Fee (TUMF) Program Agreement for Tract No. 38594 with The New Home Company Southern California LLC, a Delaware limited liability company, a copy of which is a? ached hereto and incorporated by reference, and authorizes the City Manager to sign said agreement on behalf of the City Council.
PASSED, APPROVED AND ADOPTED this 14th day of February, 2024. 17 __________________________________________
Christian Dinco
Mayor
APPROVED AS TO FORM: ATTEST:
__________________________________________ __________________________________________ Erica Vega Marc A. Donohue, MMC
City Attorney City Clerk/Communications Director
18 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 City Council Resolution No. 24-XX, was duly adopted by the City Council of the City of Eastvale, California, at a meeting held on the 14th day of February 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Marc A. Donohue, MMC
City Clerk/Communications Director
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99 AGENDA STAFF REPORT
City Council Meeting
CONSENT CALENDAR
Agenda Item No. 11.3
February 14, 2024
Approval of a Final Map for Parcel Map No. 38438, Located on the Northeast Corner of Goodman Way and Hamner Avenue at “The Station” Goodman Commerce Center.
Prepared By:
Jimmy Chung, Public Works Director/City Engineer
Recommended Action(s)
Staff recommends that the City Council adopt the Resolu on approving the final map for Parcel Map No. 38438 located on the northeast corner of Goodman Way and Hamner Avenue at "The Sta on" Goodman Commerce Center.
Summary
The developer, Tarpon Property Ownership 2, LLC has submi3ed the final map for Parcel Map No. 38438 for considera on of approval, Staff has determined that the final map is in substan al conformity with the approved Tentative Parcel Map and conditions.
Background
On October 19, 2022, the Planning Commission approved Tenta ve Parcel Map No. 38438 to reconfigure and subdivide 14.4 acre project area into a total of five (5) parcels within the exis ng Goodman Commerce Center Development ("The Station").
Environmental
The project was consistent with the Environmental Impact Report (EIR) prepared for the Goodman Commerce Center Specific Plan, and that all impacts were adequately analyzed pursuant to applicable legal standards in the previously adopted EIR and subsequent addenda, in accordance with State CEQA Guidelines Section 15162. 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
eastvaleca.gov
100
Strategic Plan Action - Priority Level: 2
| Target #: B
| Goal #: C
Developing Branding and Identity for Eastvale.
Fiscal Impact
The approval of Parcel Map No. 38438 will not impact the city's operating budget.
Prior City Council/Commission Action
On October 19, 2022, Planning Commission approved Tentative Parcel Map No. 38438.
Attachment(s)
Attachment 1 - Vicinity Map
Attachment 2 - Resolution PM 38438
12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
951.361.0900 |
eastvaleca.gov
101
Vicinity Map
NOT TO SCALE
Tract Map 38438
N
Project Site
102
RESOLUTION NO. 24-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EASTVALE, CALIFORNIA, APPROVING THE FINAL MAP FOR PARCEL MAP NO. 38438
WHEREAS, the Tentative Map for Parcel Map No. 38438 was approved by the Planning Commission on October 19, 2022; and
WHEREAS, the Subdividers have requested the City of Eastvale to approve said Final Map.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED, that the City Council of the City of Eastvale pursuant to Government Code Sec�on 66458, hereby approves the Final Map for Parcel Map No. 38438, a c o p y o f w h i c h i s h e r e b y a t a c h e d a n d m a d e p a r t o f t h i s Resolu�on; submited at the Eastvale City Council mee�ng in connec�on with Tarpon Property Ownership 2, LLC.
PASSED, APPROVED AND ADOPTED this 14th day of February, 2024.
__________________________________________
Christian Dinco
Mayor
APPROVED AS TO FORM: ATTEST:
__________________________________________ __________________________________________ Erica Vega Marc A. Donohue, MMC
City Attorney City Clerk/Communications Director
103
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 City Council Resolution No. 24-XX, was duly adopted by the City Council of the City of Eastvale, California, at a meeting held on the 14th day of February 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Marc A. Donohue, MMC
City Clerk/Communications Director
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AGENDA STAFF REPORT
City Council Meeting
CONSENT CALENDAR
Agenda Item No. 11.4
February 14, 2024
Le&er of Support Support for the Jurupa Community Services District’s Advanced Metering Infrastructure Implementa.on Project Grant Application
Prepared By:
Stephanie Vasquez, Assistant to the City Manager
Recommended Action(s)
Staff recommends that the City Council authorize a letter of support for Jurupa Community Services
District’s Advanced Metering Infrastructure Implementa!on Project Grant Applica!on to the U.S.
Bureau of Reclamation Water and Energy Efficiency Grant Program.
Summary
Jurupa Community Services District (JCSD) provides water and sewer services to residents and businesses in the City of Eastvale and Jurupa Valley. The City of Eastvale con!nues to collaborate with JCSD to provide services to our community. JCSD has requested support from the City of Eastvale for a grant applica!on they are pursuing. The AMI meter replacement Project will manage water in an environmentally and economically sound manner in the interest of the Eastvale residents.
Background
The AMI meter replacement Project
will replace more than 33,000 meters in the ci!es of Eastvale and Jurupa Valley with technology that provides both the customers and the District with access to real-!me usage data, leak detec!on and iden!fica!on capabili!es, and greater visibility on water usage and conserva!on opportuni!es. These meters will allow JCSD to deliver water more efficiently and effec!vely to customers to help sa!sfy the needs of household consump!on, irriga!on, and 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
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other non-potable u
ses.
In November, JCSD completed a feasibility study focused on presen!ng op!ons and opinions of preliminary costs for four different AMI alterna!ves. JCSD is tes!ng its methodology with a large, self-funded AMI pilot project to ensure the Phase 1 Project will be built on solid data and proven technology.
Environmental
Not applicable.
Strategic Plan Action - Priority Level: N/A
| Target #: N/A
| Goal #: N/A
Not applicable.
Fiscal Impact
Not applicable.
Prior City Council/Commission Action
Not applicable.
Attachment(s)
Attachment 1 - Letter of Support JCSD WEEG AMI 02.14.24
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February 14, 2024
U.S. Bureau of Reclamation
Water Resources and Planning Office
Attn: Josh German
P.O. Box 25007
Denver, CO 80225-0007
RE: Support for the Jurupa Community Services District’s Advanced Metering Infrastructure Implementation Project Grant Application
Dear Mr. German:
As the Mayor representing the City of Eastvale, I am pleased to submit this letter of support for the Jurupa Community Services District’s (JCSD) application to the U.S. Bureau of Reclamation (USBR) Water and Energy Efficiency Grant (WEEG) Program. JCSD’s application supports the Advanced Metering Infrastructure (AMI) Implementation Project – Phase 1.
JCSD has established itself as a regional leader in developing and implementing sustainable water- saving initiatives. This project will provide Eastvale residents with the ability to monitor and track water usage in real-time to provide information to customers allowing them to make repairs and improvements while also providing access to conservation tools and programs. This has shown in the industry to have positive financial impacts on the residents along with tangible water savings for the region. In November, JCSD completed a feasibility study focused on presenting options and opinions of preliminary costs for four different AMI alternatives. JCSD is testing its methodology with a large, self- funded AMI pilot project to ensure the Phase 1 Project will be built on solid data and proven technology.
The proposed Phase 1 Project is part of a multi-phase AMI roll-out designed to achieve measurable water savings when completed. JCSD anticipates increased water conservation due to improved leak detection and identification, customer behavior changes with access to real-time usage data, and increased customer outreach during the new meter deployment process. Importantly, JCSD could also monitor future mandatory statewide water consumption reduction requests through this system.
I strongly support JCSD’s AMI Implementation Project – Phase 1 for USBR WEEG funding, which will benefit JCSD, the Eastvale community, and the region’s overall water resources.
Sincerely,
Christian Dinco
Mayor
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AGENDA STAFF REPORT
City Council Meeting
CONSENT CALENDAR
Agenda Item No. 11.5
February 14, 2024
Approval of Energy Efficiency and Conserva,on Strategy for the Submission of an Energy Efficiency and Conserva,on Block Grant Application
Prepared By:
Alexander Fung, Economic Development Manager
Recommended Action(s)
Staff recommends that the City Council approve and adopt a Resolu on adop ng an Energy Efficiency and Conserva on Strategy of conver ng the City fleet to include at least 50% Zero Emission Vehicles (excluding emergency and first responder vehicles) by the end of 2065, for the purpose of sa sfying a requirement in the U.S. Department of Energy’s Energy Efficiency and Conservation Block Grant application submission process.
Summary
The U.S. Department of Energy (DOE) previously allocated $550 million for the Energy Efficiency and Conserva on Block Grant (EECBG) as part of the Bipar san Infrastructure Act. The EECBG Program was created to provide assistance for ci es to reduce energy use and improve energy efficiency.
Through this grant program, Eastvale is eligible to apply for up to $123,670 in non-compe ve funds.
In order to submit an applica on and receive the non-compe ve funds, the City must adopt an Energy Efficiency and Conserva on Strategy that supports the federal government’s efforts to reduce energy use and decrease carbon emissions. The Energy Efficiency and Conserva on Strategy must be related to either carbon neutrality, energy reduc on, carbon-free energy, fleet electrification, or prevailing wages.
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Staff recommends that the City Council approve and adopt an Energy Efficiency and Conserva on Strategy of conver ng the City fleet to include at least 50% Zero Emission Vehicles (excluding emergency and first responder vehicles) by the end of 2065. Adop on of this strategy would align with the requirements of the EECBG grant application.
Background
The EECBG Program was created to support ci es with implemen ng various energy efficiency and carbon emission reduc on projects. Ci es may use awarded funds for various projects, such as building upgrades, renewable projects, electric transporta on improvements, retrofit technologies, and micro-mobility projects. The U.S. DOE has set specific requirements that determine whether a municipality would be eligible to receive non-compe ve funds through the EECBG Program. The City of Eastvale is one of the 2,708 state, local, and tribal governments that are eligible to receive non-compe ve funds, as long as these en es follow the EECBG guidelines and submit grant applications accordingly.
ADer evalua ng the City’s capital improvement needs and acknowledging that the City’s alloca on of $123,670 is limited, it is proposed that the funds be used to purchase up to two (2) new electric vehicles to support the Public Works Department. The Public Works Department has a current need to expand its fleet. Addi onally, purchasing electric vehicles supports the City’s Strategic Plan’s goal of exploring alternative modes of transportation technology.
The EECBG grant applica on is due by April 30, 2024 and requires all applicants to adopt an Energy Efficiency and Conserva on Strategy. As men oned previously, staff recommends that the City Council approve and adopt an Energy Efficiency and Conserva on Strategy of conver ng the City fleet to include at least 50% Zero Emission Vehicles (excluding emergency and first responder vehicles) by the end of 2065.
This goal would not place unnecessary burdens on the City, as the current California Advanced Clean Fleet Regula on already requires government en es in California to have at least 50% of the new medium- and heavy-duty trucks be Zero Emission Vehicles. This mandate increases to 100% by 2027.
Addi onally, staff consulted with the Western Riverside Council of Governments (WRCOG) and the Inland Regional Energy Network. Both agencies agreed that the proposed goal would not place unnecessary burdens on the City.
Staff’s recommenda on was previously reviewed by the City’s Business and Development Success Ad-Hoc CommiIee in January 2024. The Ad-Hoc CommiIee expressed support for staff’s recommenda on, as long as emergency and first responder vehicles are not subject to unnecessary burdens as a result of the Energy Efficiency and Conservation Strategy.
Environmental
Pursuant to Sec on 15378 of the California Environmental Quality Act (CEQA) Guidelines, organiza onal or administra ve ac vi es of governments that do not result in direct or indirect physical changes in the environment are not considered as CEQA projects.
Strategic Plan Action - Priority Level: N/A
| Target #: F
| Goal #: F
The adop on of the proposed Energy Efficiency and Conserva on Strategy is a required step in submiMng a grant applica on to the EECBG Program. The submission of this grant applica on can 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
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lead to the City receiving grant funds to purchase electric vehicles that support the City’s Public Works Department. This endeavor supports the City’s Strategic Plan goals of exploring alterna ve modes of transportation technology and leveraging grant funding to support the City’s operations.
Fiscal Impact
The adop on of the proposed Energy Efficiency and Conserva on Strategy and the submission of an EECBG grant applica on result in the City receiving grant funds up to $123,670, which can be used to purchase electric vehicles for the Public Works Department. Grant award will be brought back to the City Council for further action, budget amendments, and procurement approval as necessary.
Prior City Council/Commission Action
There are no prior City Council or commission actions on this item.
Attachment(s)
Attachment 1 - EECBG Grant Guidelines
Attachment 2 - Resolution 24-XX (Draft)
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EECBG PROGRAM NOTICE 23-01
EFFECTIVE DATE: April 25, 2023
SUBJECT: GUIDANCE FOR ELIGIBILITY OF ACTIVITIES UNDER THE ENERGY EFFICIENCY AND
CONSERVATION BLOCK GRANT PROGRAM
Contents
PURPOSE .......................................................................................................................................2 SCOPE ............................................................................................................................................2 LEGAL AUTHORITY AND BACKGROUND ...........................................................................................2 GUIDANCE .....................................................................................................................................2 ELIGIBLE ACTIVITY CATEGORIES ......................................................................................................6 Category (1) Strategy Development and Implementation ................................................................7 Category (2) Retaining Technical Consulting Services .......................................................................8 Category (3) Residential and Commercial Building Audits .............................................................. 10 Category (4) Financial Incentives for Energy Efficiency ................................................................... 12 Category (5) Energy Efficiency Retrofit Grants for Government Agencies and Nonprofit Organizations ............................................................................................................................... 14 Category (6) Energy Efficiency and Conservation Programs for Buildings and Facilities ................... 16 Category (7) Conservation of Transportation Energy ..................................................................... 18 Category (8) Building Codes and Inspection Services ...................................................................... 20 Category (9) Energy Distribution Technologies .............................................................................. 22 Category (10) Material Conservation Programs ............................................................................. 24 Category (11) Reduction, Capture, and Use of Landfill Gases ......................................................... 25 Category (12) Replacement of Traffic Signals and Street Lighting ................................................... 26 Category (13) On-site Renewable Energy On or In a Government Building ..................................... 28 Category (14) Programs for Financing, Purchasing, and Installing Energy Efficiency, Renewable Energy, and Zero-emission Transportation (and associated infrastructure) Measures and Capital Investments, Projects, and Programs for Leveraging Public and Private Sector Funds ..................... 30 LIMITATIONS ON THE USE OF EECBG PROGRAM FUNDS ................................................................ 33
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PURPOSE
To provide guidance on the eligibility of activities under the Department of Energy’s (DOE) Energy Efficiency and Conservation Block Grant (EECBG) Program.
SCOPE
The provisions of this guidance apply to recipients of Infrastructure Investment and Jobs Act (IIJA) and American Recovery and Reinvestment Act (ARRA) EECBG Program funds.
LEGAL AUTHORITY AND BACKGROUND
The EECBG Program is authorized under Title V, Subtitle E of the Energy Independence and Security Act of 2007 (EISA), as amended,1 and signed into Public Law (PL 110-140) on December 19, 2007. All awards made under this program shall comply with applicable laws and regulations including, but not limited to, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR Part 200 and 2 CFR Part 910 and Section 40552 of IIJA.
GUIDANCE
The purpose of the EECBG Program is to assist eligible state, local, and tribal governments (collectively referred to as “eligible entities”) in implementing strategies to:
• Reduce fossil fuel emissions in a manner that is environmentally sustainable and, to the maximum extent practicable, maximizes benefits for local and regional communities; • Reduce the total energy use of the eligible entities; • Improve energy efficiency in the transportation sector, the building sector, and other appropriate sectors;2
• Build a clean and equitable energy economy that prioritizes disadvantaged communities and promotes equity and inclusion in workforce opportunities and deployment activities, consistent with the Justice40 Initiative.
These stated purposes describe the overall intent of the EECBG Program. Entities may develop various programs and projects that address one or more of the purposes and each activity an entity undertakes is not required to meet all the stated purposes. Entities may choose from a range of eligible activities, as defined in Section 544 of EISA
3 as amended by Section 40552(a) of the IIJA (Public Law 117-58).
DOE updated this guidance from the version issued in 2011 (EECBG Program Notice 10-021) to reflect the changes Congress made to EISA when it signed IJJA into law. This updated version provides guidance to EECBG Program grantees regarding the types of eligible activities that are considered allowable use of funds under one or more of the 14 eligible activity categories for the EECBG Program.4 Recipients of EECBG Program grants (including entities receiving sub-grants) or vouchers can use this guidance to determine eligible activities that support EECBG Program goals and implementation strategies. The
1 42 U.S.C. 17151 et seq.
2 42 U.S.C. 17152(b).
3 42 U.S.C. 17154
4 This guidance only addresses categories 1-14 outlined in Section 544 of EISA. Category 15 is defined in law as “any other appropriate activity, as determined by the Secretary, in consultation with the Administrator of the Environmental Protection Agency, the Secretary of Transportation, and the Secretary of Housing and Urban Development.”
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guidance also identifies activities that are prohibited or where limitations on use of funds exist, as established by the EECBG statute or determined by DOE. This guidance is not intended to be exhaustive.
If an eligible entity has a question regarding the eligibility of a specific activity, the eligible entity should contact the EECBG Program at [email protected] or their Project Officer.
In general, the overall objective of each eligible activity should be the attainment of, or the plan to attain, increased energy efficiency and conservation, or fossil fuel reduction. These activities should bear in mind an equitable distribution of community investment and projects serving disadvantaged communities, in line with the Justice40 Initiative.
Projects related to regular maintenance or repairs are not eligible. Eligible entities may apply their funds to one or more projects, as long as each project falls within one of the 14 categories of eligible uses of funds.
Equity and Environmental Justice
Per President Biden’s Executive Order 14008, the Federal Government has established the goal that 40 percent of the overall benefits of certain Federal investments flow to disadvantaged communities 5 (“DACs”).6 This government-wide effort is called the Justice40 Initiative. The EECBG Program is a Justice40-covered program and thus contributes to the goal that 40 percent of the overall benefits of federal investments in clean energy and climate solutions flow to DACs. DOE has released General Guidance on Justice40 Implementation designed to help eligible entities and other interested parties incorporate Justice40 Initiative goals into DOE-funded projects. 7 DOE has identified the following benefits that can flow to DACs as a result of EECBG Program funding.
Specifically, benefits include, but are not limited to measurable direct or indirect or positive project outcomes that achieve or contribute to the following in DACs:
1) a decrease in energy burden;
2) a decrease in environmental exposure and burdens;
3) an increase in access to low-cost capital;
4) an increase in job creation, the clean energy job pipeline, and job training for individuals; 5) increases in clean energy enterprise creation and contracting (e.g., minority-owned or disadvantaged business enterprises);
6) increases in energy democracy, including community ownership; 7) increased parity in clean energy technology access and adoption; and 8) an increase in energy resilience.
5 Also referred to as underserved, overburdened, and frontline communities. 6 Pursuant to Executive Order (EO) 14008, “Tackling the Climate Crisis at Home and Abroad,” January 27, 2021, and the Office of Management and Budget’s Interim Justice40 Implementation Guidance M -21-28, DOE recognizes DACs as defined and identified by the White House Council of Environmental Quality’s Climate and Economic Justice Screening Tool (CEJST), which can be located at https://screeningtool.geoplatform.gov/. 7 Final DOE Justice40 General Guidance 072522.pdf (energy.gov) 117
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Further, the EECBG Program encourages eligible entities to include the participation of underserved communities8 and underrepresented groups in the activities they undertake with EECBG Program funds.
EECBG Program eligible entities are highly encouraged to include contractors and sub-contractors from historically underrepresented groups9,10 in their project scoping. Further, Minority Serving Institutions,11 Minority Business Enterprises, Minority Owned Businesses, Woman Owned Businesses, Veteran Owned Businesses, or entities located in an underserved community that meet EECBG Program eligibility requirements are encouraged to be considered as sub-recipients for proposed EECBG Program-funded projects.
Blueprints and Technical Assistance
DOE has developed or identified resources to assist EECBG Program recipients with development of their energy efficiency and conservation strategies and project implementation plans, including Blueprints and Technical Assistance available from the EECBG Program and other DOE programs. These resources are intended to supplement the award funding received through either a formula or competitive award from DOE.
Blueprints are step-by-step roadmaps of energy project and programs that guide EECBG Program entities to success. While not an exclusive list, the blueprints highlight a select number high-impact projects and programs based on proven practices that entities can choose to follow. Though entities may use their EECBG Program funds for a wide array of energy-related activities, those that choose to spend their EECBG Program funds exclusively on “key activities” listed in the blueprints should expect a streamlined and expedited application review because these key activities fall within eligible uses of EECBG Program funds, and most of the blueprint activities are covered by NEPA Statements of Work.
8 The Office of Management and Budget Interim Implementation Guidance for Justice40 defines a disadvantaged community as either: (1) a group of individuals living in geographic proximity (such as census tract), or (2) a geographically dispersed set of individuals (such as migrant workers or Native Americans), where either type of group experiences common conditions.
9 According to the National Science Foundation’s 2019 report titled, “Women, Minorities and Persons with Disabilities in Science and Engineering”, women, persons with disabilities, and underrepresented minority groups— blacks or African Americans, Hispanics or Latinos, and American Indians or Alaska Natives—are vastly underrepresented in the STEM (science, technology, engineering, and math) fields that drive the energy sector. For example, in the U.S., Hispanics, African Americans and American Indians or Alaska Nat ives make up 24 percent of the overall workforce, yet only account for 9 percent of the country’s science and engineering workforce. DOE seeks to inspire underrepresented Americans to pursue careers in energy and support their advancement into leadership positions. https://www.energy.gov/articles/introducing-minorities-energy-initiative 10 Note that Congress recognized in section 305 of the American Innovation and Competitiveness Act of 2017, Public Law 114-329: “[I]t is critical to our Nation’s economic leadership and global competitiveness that the United States educate, train, and retain more scientists, engineers, and computer scientists; (2) there is currently a disconnect between the availability of and growing demand for STEM-skilled workers; (3) historically, underrepresented populations are the largest untapped STEM talent pools in the United States; and (4) given the shifting demographic landscape, the United States should encourage full participation of individuals from underrepresented populations in STEM fields.”
11 Minority Serving Institutions (MSIs), including Historically Black Colleges and Universities/Other Minority Institutions as educational entities recognized by the Office of Civil Rights (OCR), U.S. Department of Education, and identified on the OCR's Department of Education U.S. accredited postsecondary minorities’ institution list. 118
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The blueprints span a wide variety of topic areas: energy planning, energy efficiency, renewable energy, transportation infrastructure, workforce development, and financing. For more information, see the Blueprints webpage.
Blueprint Topics:12
• Blueprint 1. Energy Planning
• Blueprint 2A. Energy Efficiency - Energy Audits and Building Upgrades • Blueprint 2B: Energy Efficiency and Electrification in Buildings - Energy Savings Performance Contracts:
• Blueprint 2C: Building Efficiency & Electrification Campaign • Blueprint 2D: Building Performance Standards & Stretch Codes • Blueprint 3A: Solar + Storage Power Purchase Agreements and Direct Ownership • Blueprint 3B: Community Solar
• Blueprint 3C: Solarize Campaign
• Blueprint 3D: Renewable Resource Planning
• Blueprint 4A: Electric Vehicles for Fleets and Fleet Electrification • Blueprint 4B: Electric Vehicle Charging Infrastructure for the Community • Blueprint 5: Unlocking Sustainable Financing Solutions for Energy Projects and Programs - Revolving Loan Funds
• Blueprint 6: Workforce Development Community
National Environmental Protection Act Requirements
DOE must comply with the National Environmental Policy Act (NEPA) prior to authorizing the use of Federal funds. DOE must also consider the effects on historic properties, pursuant to Section 106 of the National Historic Preservation Act (NHPA). Additionally, DOE must consider the impacts to floodplains and wetlands, pursuant to 10 CFR Part 1022—Compliance with Floodplain and Wetland Environmental Review Requirements. To streamline these required reviews, DOE carries out each of these reviews under the umbrella of its NEPA review. Grantees should review and follow the NEPA determination (the form that DOE uses to document NEPA reviews) in their award documents for restrictions, and the list of activities that have been categorically excluded from further NEPA review.
NEPA Statements of Work (SOW) have been created and placed on the EECBG Program Formula Application Hub webpage to provide expedited reviews of blueprints and other activities. The NEPA SOWs apply to different applicants and include either ground disturbing activities or nonground disturbing activities. Applicants should review the SOWs to ensure the correct one is selected, if applicable. SOWs with ground disturbing activities require quarterly reporting for all activities. DOE staff will require submission of an Environmental Questionnaire (EQ1) for a NEPA review through the Project Management Center (PMC) if a NEPA SOW is not utilized.
12 This list shows proposed Blueprints by topic area as of April 2023. Blueprint topic areas may be added or revised, based on grantee and stakeholder interests, and effectiveness in achieving program goals. For additional information, visit the Blueprints webpage.
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ELIGIBLE ACTIVITY CATEGORIES
EISA, as revised by Section 40552 of IIJA, specifies 14 categories of eligible uses of EECBG Program funds.
DOE is providing guidance below regarding the types of eligible activities that are covered by the 14 categories, including examples of eligible activities, technical assistance opportunities, and items for consideration. This guidance on eligible activities is not intended to be comprehensive. If an eligible entity has a question regarding the eligibility or allowability of a specific activity, the eligible entity should contact their Project Officer, or email the EECBG Program at [email protected].
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Category (1) Strategy Development and Implementation
STATUTORY LANGUAGE
Development and implementation of an energy efficiency and conservation strategy
PROGRAM GUIDANCE
• This category only applies to eligible local and tribal governments. State governments are ineligible to apply their EECBG Program funds to strategy development. • The activity must be for the development, in support of the development, or in support of the implementation of either a strategy submitted pursuant to the EECBG Program or a general strategy that outlines goals for energy efficiency or conservation.
EXAMPLE ELIGIBLE ACTIVITIES
• Development of an energy efficiency and conservation strategy if one is not submitted with application
• Development of the energy efficiency and conservation elements of an energy-related plan such as a climate action plan or local or tribal government’s sustainability plan • Expansion of an existing strategy to address new goals
TECHNICAL ASSISTANCE OPPORTUNITIES
• Blueprint 1: Energy Planning
• The National Renewable Energy Laboratory (NREL) is providing interested EECBG Program grantees one-on-one technical assistance and customized support to develop their Energy Efficiency and Conservation Strategies. Grantees can sign up by emailing NREL directly at:
[email protected]. Funding is limited; requests will be considered based on available funding and type of support requested.
IITEMS FOR CONSIDERATION
• Develop strategies around clearly defined, measurable, and ambitious goals for advancing energy efficiency and clean energy.
• Ensure that strategies are informed by stakeholder feedback and include opportunities for continued stakeholder engagement, with a particular focus on soliciting feedback from underrepresented and disadvantaged communities. EECBG Program recipients are encouraged to actively seek participation and feedback from a diverse range of stakeholders that reflects the demographics of their community.
• Incorporate equity and environmental justice objectives in developing energy efficiency and conservation goals and associated implementation strategies. • Take a holistic approach that incorporates a variety of technologies and addresses the needs of different populations within the community leveraging tools such as the DOE State and Local Planning for Energy (SLOPE) Platform, a free, easy-to-use online platform to support data-driven state and local energy and decarbonization planning.
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Category (2) Retaining Technical Consulting Services
STATUTORY LANGUAGE
Retaining technical consultant services to assist the eligible entity in the development of such a strategy, including—
A. Formulation of energy efficiency, energy conservation, and energy usage goals; B. Identification of strategies to achieve those goals— a. through efforts to increase energy efficiency and reduce energy consumption; and b. by encouraging behavioral changes among the population served by the eligible entity; C. Development of methods to measure progress in achieving the goals; D. Development and publication of annual reports to the population served by the eligible entity describing—
a. the strategies and goals; and
b. the progress made in achieving the strategies and goals during the preceding calendar year; and
E. Other services to assist in the implementation of the energy efficiency and conservation strategy
PROGRAM GUIDANCE
• This activity area refers to retaining technical consultant services to assist the eligible entity in the development and implementation of an energy efficiency and conservation strategy, including developing methods to measure progress in achieving the goals identified in the strategy, and developing and publishing annual reports, such as dissemination of energy plans and progress updates.
• This category is only available to eligible entities that are units of local government or tribes that received funds under the EECBG Program.
• The activity for which the eligible entity is seeking to retain technical consulting services must support one or more elements of strategy development and implementation developed under Category 1.
EXAMPLE ELIGIBLE ACTIVITIES
• Formulation of energy efficiency, energy conservation, and energy usage goals, methods to achieve those goals or measure progress, and the publication of annual reports discussing progress
• Identification and development of an equity-centered strategy to achieve 2030 carbon neutral goals through the energy efficiency and conservation strategy • Developing a detailed roadmap, as part of the energy efficiency and conservation strategy, to reduce costs and improve energy efficiency in communities and households with high energy burdens
• Development of internal metrics and evaluation system for strategies and measures in the energy efficiency and conservation strategy that address clean energy and climate resiliency objectives in the community
• Strategic planning for electrification of government transportation fleets 122
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TECHNICAL ASSISTANCE OPPORTUNITIES
• Blueprints 1-6: Each of these blueprints can be used as a guide towards select EECBG Program activities. The key activities described in each blueprint, including planning and data analysis, can be conducted either by a member of the EECBG Program grantee’s internal staff or by external contractors or consultants.
• The National Renewable Energy Laboratory can provide interested EECBG Program eligible entities with direct technical assistance and customized support around energy planning including goal development and options analysis. Eligible entities can submit a request for TA by emailing NREL directly at [email protected]. Funding is limited; requests will be considered based on available funding and type of support requested. • The technical assistance voucher pathway may also be a good option for entities that are primarily interested in obtaining technical support services, such as planning, analysis, and strategy development related to this category.13
• Additional technical assistance around specific technology areas is available through various DOE offices and national laboratories. For additional information, visit the EECBG Technical Assistance webpage.
ITEMS FOR CONSIDERATION
• Consider local objectives, staff capacity, and support needs when selecting consultants. Look for firms with prior expertise and knowledge of local or tribal government energy efficiency, renewable energy, electrification or sustainability programs, including development of place- based strategies.
• Consider selecting eligible firms that reflect diversity in their business ownership and staff, understand local community needs, and are experienced in place-based approaches. • Engage underrepresented or underserved groups to ensure that their needs are considered and addressed during technical consultant service delivery (e.g., community input sessions, equitable access to programs and financial opportunities.)
13 For formula-eligible local governments and tribes only. Entities must select either a grant or voucher for their EECBG formula award.
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Category (3) Residential and Commercial Building Audits
STATUTORY LANGUAGE
Conducting residential and commercial building energy audits
PROGRAM GUIDANCE
• The activity should be for conducting energy audits of residential and commercial buildings;14,15 • The activity must occur within the jurisdiction of the eligible entity; and • Upgrades or improvements to buildings associated with the audits are an eligible use of funds.
EXAMPLE ELIGIBLE ACTIVITIES
• Energy assessments to understand usage patterns in a portfolio of buildings and benchmark performance, including benchmarking building energy performance in the ENERGY STAR® Portfolio Manager Tool
• Installing energy upgrades in homes or commercial businesses recommended as the result of an audit
• Any activities that support or facilitate the conduct of energy assessments of residential or commercial buildings
TECHNICAL ASSISTANCE OPPORTUNITIES
• Blueprint #2A: Energy Efficiency - Energy Audits and Building Upgrades • The federal government maintains several tools to assist with building energy efficiency, which are described in the blueprint, including ENERGY STAR® Portfolio Manager, DOE Building Energy Asset Score, and Home Energy ScoreTM, which are online platforms to collect, organize and analyze energy data for commercial and residential buildings, and identify and prioritize energy efficiency improvements. In addition, DOE developed the Energy Data Management Guide designed to support state and local governments in developing a data-driven approach to energy management.
ITEMS FOR CONSIDERATION
• Consider ensuring that energy assessments are implemented in communities that have traditionally experienced energy injustice or have disproportionate energy burdens by using
14 Energy audits include assessments of residential and commercial buildings to evaluate the energy performance of the building, and identify and prioritize energy savings opportunities, including operational or behavioral changes.
Assessments may include recommendations for installation of energy efficiency measures, renewable energy and/or grid-interactive systems, such as battery storage, and energy monitoring systems. 15 For the purpose of eligibility under the EECBG Program, “building” generally means a usually roofed and walle d structure built for permanent use. Commercial buildings include all buildings in which at least half of the of floor space is used for a purpose that is not residential (used as a dwelling for one or more households), manufacturing/industrial (used for processing or procurement of goods, merchandise, raw materials or food) or agricultural (used for the production, processing, sale, storage, or housing of agriculture process, including livestock), so they include building types that might not traditionally be considered “commercial,” such as schools, correctional institutions, and building uses for religious worship. 124
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tools such as the Climate and Economic Justice Screening Tool and Low-Income Energy Affordability Data (LEAD) Tool and partnering with relevant community stakeholders. • Coordinate energy assessment activities with existing federal, state, local, and utility energy efficiency programs, as well as existing and anticipated sources of additional funding. Many utilities offer free or discounted energy assessments (i.e., ‘audits’) for residential and commercial buildings. Energy assessments can serve as a first step to further energy-saving, clean energy, and electrification measures that could be otherwise publicly funded. • Coordinate energy assessment activities with energy efficiency and conservation elements of any existing or planned energy-related plan, such as a climate action plan or local or tribal government’s sustainability plan. Factor in the energy impacts of long-lifetime building upgrades, and their implications for existing climate or sustainability plans. • Consider conducting an initial energy assessment to better understand energy usage patterns across a given portfolio of buildings and identify and prioritize buildings for further assessment.
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Category (4) Financial Incentives for Energy Efficiency
STATUTORY LANGUAGE
Establishment of financial incentive programs for energy efficiency improvements
PROGRAM GUIDANCE
• The activity must be for a financial incentive program, such as a rebate, loan, energy savings performance contracts, or other financing program.
• The financial incentive program must be for the purpose of improving energy efficiency; and • The financial incentives must be limited to resident, non-profits, government entities, or businesses within the jurisdiction of the eligible entity. • The activity may include financial incentive programs established by states, including sub-grants from states to local governments or tribes, such as a revolving loan fund. • For local governments and Indian tribes only: there is a limitation on utilizing EECBG Program formula grant funds for the development and capitalization of a Revolving Loan Fund of the greater of 20% of the award allocation or $250,000. Eligible entities may contribute grant funding to an existing revolving loan fund – they need not establish a new one. • EECBG Program funds used for financing programs must be tracked and reported separately from non-EECBG Program funds, including other federal financing programs, such as the Energy Efficiency Revolving Loan Fund Capitalization Grant Program available to States. • While this Category addresses financial incentives specifically for energy efficiency, financing for renewable energy systems may be an eligible activity under Category 14.
EXAMPLE ELIGIBLE ACTIVITIES
• Energy Savings Performance Contracts (ESPCs)
• Loan programs such as: revolving loan funds, loan guarantees, loan-loss reserves or credit enhancements, on-bill financing, and energy efficient mortgage programs • Non-loan financial assistance programs such as: grants, rebates, tax credits, tax exemptions, fee waivers, interest rate buydowns, bonds
• Other financial incentive program for energy efficiency improvements, such as formulation of 501(c)3 Green Bank Entities
TECHNICAL ASSISTANCE OPPORTUNITIES
• Blueprint #2B: Energy Efficiency and Electrification in Buildings - Energy Savings Performance Contracts
• Blueprint #2C: Building Electrification Campaign
• Blueprint #5: Unlocking Sustainable Financing Solutions for Energy Projects and Programs – Revolving Loan Funds
ITEMS TO CONSIDER
• Financial incentive programs should be designed to be self-sustaining. • Consider opportunities to leverage or coordinate EECBG formula funds with rebates, financial incentives and financing programs funded by the IIJA or Inflation Reduction Act (IRA), such as 126
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SEP Revolving Loan Funds, Home Energy Rebates, and the U.S. EPA’s Greenhouse Gas Pollution Reduction Fund.
• Leverage private capital to achieve greater impact by partnering with non-profit Green Banks or other sources of private capital.
• Coordinate financial incentive activities with energy efficiency and conservation elements of any existing energy-related plan, such as a climate action plan or local or tribal government’s sustainability plan. Factor in the energy impacts of long-lifetime building upgrades, and their implications for existing climate or sustainability plans. • Seek to design programs to mitigate historical inequities in access to capital and financing to further environmental justice by addressing barriers to accessing capital, such as credit score and debt-to-income ratios. See the State and Local Solution Center for program design resources and examples, such as:
o Clean Energy for Low-Income Communities Accelerator (CELICA) Toolkit; o State and Local Planning for Energy (SLOPE) Platform; and o Energy Efficiency Financing for Low- and Moderate-Income Households: Current State of the Market, Issues, and Opportunities.
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Category (5) Energy Efficiency Retrofit Grants for Government Agencies and Nonprofit Organizations
STATUTORY LANGUAGE
The provision of grants to nonprofit organizations and governmental agencies for the purpose of performing energy efficiency retrofits
PROGRAM GUIDANCE
• The activity is for energy efficiency retrofits performed by government agencies or nonprofit organizations (these retrofits may be in residential buildings as long as the government or nonprofit is performing the retrofit). The retrofit may be of equipment (e.g., an HVAC system and associated controls, appliances, or lighting) or a building; • The retrofit must result in energy savings (e.g., kwh/BTUs) or improved energy efficiency; • The activity must not be for new construction or non-replacement equipment; • The activity must occur within the jurisdiction of the eligible entity.
EXAMPLE ELIGIBLE ACTIVITIES
• Energy efficiency retrofit measures, including weatherization, installation of efficient heating and cooling systems and appliances, cool roofs, and water efficiency measures • Energy management systems, including grid-interactive equipment such as smart thermostats, battery storage systems, and building energy management systems • Building electrification measures, including the installation of heat pumps, heat pump water heaters, residential or commercial cooking equipment, and associated wiring and panel upgrades
TECHNICAL ASSISTANCE OPPORTUNITIES
• Blueprint #2A: Energy Efficiency - Energy Audits and Building Upgrades • Blueprint #2B: Energy Efficiency and Electrification in Buildings - Energy Savings Performance Contracts
• Blueprint #5: Unlocking Sustainable Financing for Energy Projects and Programs – Revolving Loan Funds
ITEMS TO CONSIDER
• Take a whole-building approach to retrofits that recognizes the interactive effects and co- benefits of different technologies, rather than focusing on a specific technology or end use. • Consider coordinating (also referred to as ‘braiding’) EECBG Program grant funding with other local, state, and federal programs such as the Better Buildings Initiative, Weatherization Assistance Program, U.S. Environmental Protection Agency’s Climate Pollution Reduction Grants, IRA Home Energy Rebates (forthcoming), federal tax incentives or USDA’s Community Facilities Program; or utility energy efficiency programs, including financing and incentives for energy efficiency improvements.
• Consider the energy impacts of long-lifetime building retrofits and their broader implications for existing climate or sustainability plans. Perform energy assessments and retrofits in 128
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communities that have traditionally experienced energy injustice or have disproportionate household energy burdens by using tools such as the Climate and Economic Justice Screening Tool and Low-Income Energy Affordability Data (LEAD) Tool and partnering with relevant community stakeholders.
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Category (6) Energy Efficiency and Conservation Programs for Buildings and Facilities
STATUTORY LANGUAGE
Development and implementation of energy efficiency and conservation programs for buildings and facilities within the jurisdiction of the eligible entity, including— A. Design and operation of the programs;
B. Identifying the most effective methods for achieving maximum participation and efficiency rates;
C. Public education;
D. Measurement and verification protocols; and
E. Identification of energy efficient technologies
PROGRAM GUIDANCE
• The activity must be for the development and/or implementation of an energy efficiency or energy conservation program. An eligible use of funds may include the design and operation of the program and installation of energy efficiency equipment, including building energy management systems and controls.
• The activity must be related to buildings or facilities;16 and • The activity must impact buildings or facilities within the jurisdiction of the eligible entity.
EXAMPLE ELIGIBLE ACTIVITIES
• Workforce development/training programs supporting eligible activities, such as training community members on green technology installation or residential and commercial energy audits
• Programs for public education including training or workshops • Development and implementation of building performance standards, including benchmarking and disclosure requirements for the purpose of promoting energy efficiency in commercial buildings
• Development and implementation of measures and verification protocols • Programs to partner with local non-profits and community organizations to support weatherization, efficiency retrofits and technologies, and installations • Programs to promote architecture, design, and engineering work for energy efficient buildings • Non-capital strategies to improve facility efficiency through an Energy Data Management Program and/or operations and maintenance strategies such as Strategic Energy Management (or similar methods)
• Development of an energy rating, disclosure and/or labeling system for the purpose of promoting energy efficiency in residential or commercial buildings
16 For the purpose of eligibility under the EECBG Program, “facility” generally means an installation, building, group of buildings, or group of structures designed to support a related purpose.
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TECHNICAL ASSISTANCE OPPORTUNITIES
• Blueprint 2A: Energy Efficiency – Energy Assessments and Building Upgrades • Blueprint 2B: Efficiency for portfolio of government buildings: Energy Saving Performance Contracts
• Blueprint 2C: Building Electrification Campaign
• Blueprint 3: Building Performance Standards and Stretch Codes • Blueprint 5: Unlocking Sustainable Financing Solutions for Energy Projects and Programs - Revolving Loan Funds
• In addition to providing one-on-one customized technical assistance for governments pursuing building code updates, the DOE Building Energy Codes Program also provides technical assistance for jurisdictions interested in exploring Building Performance Standards programs. • The federal government maintains several tools to assist with building energy efficiency, which are described in the blueprints, including ENERGY STAR® Portfolio Manager and DOE Building Energy Asset Score which are online platforms to collect and organize building energy data. In addition, DOE developed the Energy Data Management Guide designed to support state and local governments in developing a data-driven approach to energy management.
ITEMS TO CONSIDER
• Achieve a double bottom line of economic justice and energy justice by prioritizing disadvantaged communities in workforce development training programs. • Design programs that can leverage other local, state, and federal funding, such as the DOE Better Buildings Initiative, Weatherization Assistance Program, and EPA Climate Pollution Reduction Grants.
• Coordinate buildings and facilities programs with energy efficiency and conservation elements of any existing energy-related plan such as a climate action plan or local or tribal government’s sustainability plan. Factor in the energy impacts of long-lifetime building upgrades and their implications for existing climate or sustainability plans.
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Category (7) Conservation of Transportation Energy
STATUTORY LANGUAGE
Development and implementation of programs to conserve energy used in transportation, including— A. Use of flex time by employers;
B. Satellite work centers;
C. Development and promotion of zoning guidelines or requirements that promote energy efficient development;
D. Development of infrastructure, such as bike lanes and pathways and pedestrian walkways; E. Synchronization of traffic signals; and
F. Other measures that increase energy efficiency and decrease energy consumption
PROGRAM GUIDANCE
• The activity must result in or support the conservation of transportation fuel within the jurisdiction of the eligible entity.
• Conservation of transportation fuel may be for the population (e.g., privately owned vehicles) within the jurisdiction of the eligible entity or for government purposes (e.g., government fleets) • Eligible alternative fuel vehicles (AFVs) can span a range of transportation fuel conservation technologies and fuel types (e.g., light and medium duty electric vehicles (EVs) and hybrid vehicles).
• A reduction in greenhouse gas emissions that result from transportation fuel may also be considered conservation of transportation fuel.
EXAMPLE ELIGIBLE ACTIVITIES
• Improvement of energy efficiency of government vehicle fleets through the purchase of electric, hybrid, or alternative fuel vehicles such as buses, recycling / waste collection vehicles, etc. • Micromobility programs, devices and associated facilities, including conventional bicycles, e- bicycles, e-scooters, and other personal transport devices for public use17 • Addition of bike lanes, pathways, or other alternative transportation infrastructure • Geomapping for ideal placement of electric vehicle charging stations and infrastructure • Purchase and installation of electric vehicle charging stations and equipment • Enhancing commuter lots to encourage increased use of public transportation • Strategies to reduce vehicle miles travelled, including the use of satellite offices, flex time, telecommuting policies, and implementation of carpooling or vanpooling strategies • Development and promotion of zoning and siting guidelines or requirements that promote energy efficient development
• Implementing planning measures to improve transportation efficiency, including the development and promotion of alternative transportation infrastructure, synchronizing traffic
17 For more information on micromobility devices and transportation systems, see:
https://highways.dot.gov/public-roads/spring-2021/02# and https://nap.nationalacademies.org/catalog/26386/transit-and-micromobility 132
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signals, and mapping the ideal placement of vehicle charging and other alternative fueling infrastructure
TECHNICAL ASSISTANCE OPPORTUNITIES
• Blueprint #5: Unlocking Sustainable Financing Solutions for Energy Projects and Programs – Revolving Loan Funds
ITEMS TO CONSIDER
• For a project to qualify for EECBG Program funds under Category 7, its focus must be for the conservation of transportation fuel within the jurisdiction of the eligible entity. • Consider equity and environmental justice in determining placement of EV charging stations and ensure stations are affordable and accessible to all residents (including multifamily households), to promote equitable access to electric vehicle charging infrastructure. • An alternative fuel vehicle (AFV) refers to a vehicle that does not rely on traditional gasoline, but rather other power sources, including battery electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs) and hybrid vehicles. Vehicles utilizing biodiesel, ethanol, or natural gas are also considered alternative fuel vehicles.18 When determining AFVs for purchase, be sure to consider which have the lowest carbon emissions and operational costs. • Complementary federal funding for transportation efficiency and electrification measures may become available from additional programs, including grant programs administered by DOE, the DOE/DOT Joint Office of Energy and Transportation, the U.S. Department of Transportation, and the U.S. Environmental Protection Agency.
• Many current state and federal programs offer funds for the development and placement of electric vehicle charging. Efforts to place additional alternative fueling infrastructure should be in coordination with these programs to ensure rural and disadvantaged communities and households not yet being served are prioritized.
18 For additional information on alternative fuel vehicles by fuel type and technology, visit the Alternative Fuels Data Center at: https://afdc.energy.gov/.
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Category (8) Building Codes and Inspection Services
STATUTORY LANGUAGE
Development and implementation of building codes and inspection services to promote building energy efficiency
PROGRAM GUIDANCE
• The activity must be for the development, adoption and/or implementation of building codes, inspection services or trainings/workshops to promote building energy efficiency. • Programs for development, adoption and implementation of stretch codes that exceed baseline energy codes, such as green building standards, are eligible under this category. • The development of energy efficiency rating and/or labeling systems for the purpose of promoting energy efficient devices, equipment, or buildings are eligible under this category. • The activity must occur within the jurisdiction of the eligible entity.
EXAMPLE ELIGIBLE ACTIVITIES
• Adoption and implementation of building energy codes, including supporting the adoption and implementation of model building energy codes or stretch codes for energy efficient residential and commercial buildings
• Training and certification support for architects, builders, building inspectors, code officials, and other stakeholders that are responsible for implementing building codes • Development, adoption, and implementation of a Building Performance Standard, including benchmarking and disclosure requirements
• Conducting an energy code field study, which would document typical design and construction practices, target areas for improvement through workforce education and training initiatives, and quantify energy efficiency and environmental impacts in buildings
TECHNICAL ASSISTANCE OPPORTUNITIES
• Blueprint #2D: Building Performance Standards & Stretch Codes • The Office of Energy Efficiency and Renewable Energy (EERE) provides technical assistance grants to support the implementation of updated building energy codes to encourage more efficient and resilient buildings. For more information on EERE funding opportunities and resources available to support implementation of updated building energy codes, visit: the EERE Building Codes webpage.
• The Office of State and Community Energy Programs (SCEP) plans to provide technical assistance grants to assist states and units of local government that have authority to adopt and implement the latest model energy codes (i.e., 2021 IECC & ASHRAE Standard 90.1-2019), zero energy building codes, or other codes or standards that achieve equivalent or greater energy savings. Up to $1 billion in funding is available, through 9/30/29. • The DOE Building Energy Codes Program provides $225 million in technical assistance grants to support building code development and implementation, as well as promoting alignment about building codes and performance standards.
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ITEMS TO CONSIDER
• The legal authority for local government entities to develop, adopt, or implement more stringent building energy codes varies by state, with some states prohibiting or limiting local code adoption, whereas others delegate code adoption to local jurisdictions. Other states may provide either a uniform model Stretch Energy Code for municipal adoption, or Reach Codes, which provide optional standards for energy efficiency that exceed the state’s mandatory code requirements.19 The DOE Building Energy Codes Program (BECP) provides information on state and local code adoption, including information on the status of code adoption by state20 and state code adoption laws (which also includes status of code adoption by jurisdiction).21 BECP has also developed stretch code modules based on technologies, measures, or practices (or optimized combinations) that can be adopted as a stretch code or directly into state and local building energy codes.22
• Due to the limited capacity of local code enforcement officials, eligible entities may consider energy codes with alternative compliance pathways or explore strategies to reduce building officials’ workload, such as third-party enforcement procedures. • Prioritize resources to increase inspection capacity in historically energy-burdened and disadvantaged communities as identified using the Justice40 tools, such as CEJEST.
19 For additional information on stretch and reach codes, see Stretch Codes (Advanced Codes) - New Buildings Institute. https://newbuildings.org/code_policy/stretch-codes-advanced-codes/ 20 BECP Status of State Energy Code Adoption: https://www.energycodes.gov/state-portal 21 BECP Municipal Building Energy Policies: https://public.tableau.com/views/Top100MetroDatabase - PrimaryCityCode-V4/MetroResidentialCodeMinandHR_1?:language=en- US&:display_count=n&:origin=viz_share_link
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Category (9) Energy Distribution Technologies
STATUTORY LANGUAGE
Application and implementation of energy distribution technologies that significantly increase energy efficiency, including—
A. Distributed resources; and
B. District heating and cooling systems
PROGRAM GUIDANCE
• The application and implementation of energy distribution technologies that significantly increase energy efficiency, including distributed resources and district heating and cooling systems.
• The activity must result in a significant increase in energy efficiency within the jurisdiction of the eligible activity.
EXAMPLE ELIGIBLE ACTIVITIES
• Microgrid technologies
• District heating and cooling systems
• Combined heat and power systems (CHP)
• Cogeneration systems
• Energy Storage systems
TECHNICAL ASSISTANCE OPPORTUNITY
• Blueprint: Solar + Storage: Power Purchase Agreements and Direct Ownership • Blueprint 6: Unlocking Sustainable Financing for Energy Projects and Programs - Revolving Loan Funds
• Resources around CHP are available from DOE Better Buildings Program can be found here. • Resources around grid modernization are available through the DOE Grid Deployment Office can be found here.
• Additional technical assistance around specific technology areas may be available through various DOE offices and national laboratories. For the latest, visit the EECBG Technical Assistance webpage.
ITEMS TO CONSIDER
• Renewable energy, storage, and CHP can provide revenue streams while grid-connected, and these energy and cost savings may lower the overall cost of a microgrid and allow for the incorporation of additional microgrid components. When integrated into a microgrid, distributed energy technologies can also increase survival time during a grid outage when fuel supplies are limited.
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• Implementing energy efficiency measures in conjunction with renewable energy, storage, and/or CHP can reduce the cost of each of these systems by allowing a smaller system to meet the reduced energy needs of the facility.
• Leverage federal tax incentives where feasible, such as the Inflation Reduction Act Home Energy Credits.
• CHP technologies are most applicable to sites that have a reliable gas supply and steady thermal and electric loads such as industrial operations; commercial operations such as hospitals, nursing homes, or hotels; and institutional and residential sites such as schools, universities, prisons, or multi-family buildings. If CHP with gas is considered, be sure to consider the expected lifetime of the CHP system and how it aligns with broader jurisdictional goals in existing climate and/or sustainability plans.
• Consider district heating configurations that further reduce emissions, such as combined renewable energy configurations (e.g., solar, wind, steam, sustainably sourced fuels) and power systems or geothermal district heating.
• Prioritize sites that directly serve the community and that provide one or more infrastructure and services to the community, such as community centers, water and wastewater treatment facilities, police and fire stations, schools, libraries, and other facilities. These sites could benefit from microgrid, CHP and/or storage systems by lowering energy costs and enhancing community resilience, such as providing backup power or emergency shelter in the event of a natural disaster or extended power outage, especially when combined with onsite renewable investments described in Category 14.
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Category (10) Material Conservation Programs
STATUTORY LANGAUGE
Activities to increase participation and efficiency rates for material conservation programs, including source reduction, recycling, and recycled content procurement programs that lead to increases in energy efficiency
PROGRAM GUIDANCE
• The activity must be for the purpose of increasing the participation in and/or the efficiency rates of a material conservation program (e.g., source reduction, recycling, and recycled content procurement programs); and
• The activity must occur within the jurisdiction of the eligible entity. • If the activity is a recycled content procurement program within the jurisdiction of the eligible entity, there must be an associated increase in energy efficiency and/or conservation of fuel.
EXAMPLE ELIGIBLE ACTIVITIES
• The cost of vehicles required for a materials conservation/recycling program, such as recycling trucks
• Municipal waste reduction programs, including education and outreach • Establishing or expanding policies and programs for materials reuse and recycling, including equipment and facilities and associated tracking and reporting systems. • Organic and food waste recovery and recycling via food waste recovery programs, and organics recycling, such as composting, and anaerobic digesters for clean renewable electricity generation)
• Expanding infrastructure and/or participation in existing recycling programs
ITEMS TO CONSIDER
• Consider the energy consumption associated with producing and recycling different materials, as well as the environmental implications of their disposal. • Consider coordination with other local jurisdictions to develop facilities that can serve multiple jurisdictions.
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Category (11) Reduction, Capture, and Use of Landfill Gases
STATUTORY LANGUAGE
The purchase and implementation of technologies to reduce, capture, and, to the maximum extent practicable, use methane and other greenhouse gases generated by landfills or similar sources
PROGRAM GUIDANCE
• The activity must be for the purchase and implementation of technology, for the purpose of reducing, capturing, or using methane or other greenhouse gases generated by landfills or similar sources; and
• The activity must occur within the jurisdiction of the eligible entity.
EXAMPLE ELIGIBLE ACTIVITIES
• Reducing the carbon emissions of landfills or similar waste-related sources, including wastewater treatment plants, operations producing food waste, dairy farms, and other animal operations, through measures to reduce, capture and use methane and other greenhouse gases • Anaerobic digestion systems
• Utilization of landfill gas for electricity generation • Direct use of landfill gas to offset the use of other fuels • Conversion of landfill gas to renewable natural gas
ITEMS TO CONSIDER
• Activities in this category may present an opportunity to lessen the burden of environmental regulatory requirements through the reduction, capture, and use of landfill gases. • Cogeneration systems, like those discussed in Category 9 of this document, can use landfill gas to generate electricity and thermal energy.
• Additional information, including tools and resources for reducing or avoiding landfill methane emissions, is available from the U.S. EPA’s Landfill Methane Outreach Program (LMOP).
Additional information on renewable natural gas systems and a database of renewable natural gas projects are available from the Alternative Fuels Data Center and the Renewable Natural Gas Database.
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Category (12) Replacement of Traffic Signals and Street Lighting
STATUTORY LANGUAGE
Replacement of traffic signals and street lighting with energy efficient lighting technologies, including— A. Light emitting diodes; and
B. Any other technology of equal or greater energy efficiency
PROGRAM GUIDANCE
• The activity must be for the replacement of traffic signals, street lights23 or street signs; • The replacement of traffic signals or street lights must be light emitting diodes (LEDs) or other technology of equal or greater energy efficiency. Traffic signals and street light replacements may include solar panels that power the street lights so long as the panels are part of a replacement effort that installs LEDs or other technology of equal or greater efficiency for lamps;
• Generally, only the cost of replacement lamp is eligible unless replacement/upgrade of supporting structure (e.g., posts) is necessary to support the replacement of the lamps. • The activity must occur within the jurisdiction of the eligible entity.
EXAMPLE ELIGIBLE ACTIVITIES
• LEDs and any other technology of equal or greater energy efficiency • Computerized traffic management systems, installed on street lights, to minimize vehicle-based traffic congestion during peak driving hours
TECHNICAL ASSISTANCE OPPORTUNITY
• The Better Buildings Outdoor Lighting Accelerator Toolkit provides tools and resources, including a decision tree for upgrading or replacing public outdoor lighting systems, technical support resources, and lessons learned.
• The Municipal Solid-State Street Lighting Consortium (MSSLC) helps local governments make informed decisions on the purchase of LED street lighting and maximize the energy savings.
Resources include lighting specifications, financing resources, technical reports, presentations, and FAQs on outdoor street lighting, including resources on lighting selection and design considerations.
ITEMS TO CONSIDER
• The replacement of a lighting fixture, an arm, a pole, or any part of a light is an eligible use of funds if the more efficient lighting technology necessitates such a replacement. However, regular maintenance is an ineligible cost. For example, EECBG Program funds cannot be used to replace a rotten pole due to insufficient maintenance. LED lights should be procured with strong
23 A “street light” is an outdoor source of light that is raised and that is intended to provide functional illumination to the area below the light.
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warranty terms and meet certifications (e.g., ENERGY STAR or otherwise) to ensure energy performance, longevity and lighting quality over time.
• When considering which locations to make street light improvements, consider incorporating approaches to ensure equitable access to street light improvements, such as scoring criteria that consider equity, safety, and access.
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Category (13) On-site Renewable Energy On or In a Government Building
STATUTORY LANGUAGE
Development, implementation, and installation on or in any government building of the eligible entity of onsite renewable energy technology that generates electricity from renewable resources, including— A. Solar energy;
B. Wind energy;
C. Fuel cells; and
D. Biomass.
PROGRAM GUIDANCE
• The activity must be for the development, implementation, and installation of onsite renewable energy technology (e.g., solar energy, wind energy, fuel cells, or biomass); • The installation of the renewable energy technology must be on, in or under a government building24 of the eligible entity (the renewable technology is considered installed on a government building if it is installed on a government-owned site and connected to the government building behind the meter); and
• The renewable energy technology must be for the generation of electricity, or result in more efficient heating/cooling. The renewable energy source need not provide a building’s entire electricity usage and not all of the electricity needs to physically go into the government building.
• The installation of renewable energy technologies on commercial buildings, or other non- government buildings or sites, is not an eligible use of funds under Category 13. Renewable energy technologies, however, are eligible for installation on non-governmental buildings under Category 14, as part of programs for financing and installing energy efficiency, renewable energy, and zero emissions transportation systems, including financing programs, grants, incentives or rebates.25
EXAMPLE ELIGIBLE ACTIVITIES
• Financing mechanisms that enable this activity such as power purchase agreements for solar PV installations on multiple government buildings
24 For the purpose of eligible under the EECBG Program, “government building of the eligible enti ty” generally means a building built by or for the use of the government that is the grantee/recipient of award funds. This includes buildings owned or leased by the eligible entity. This does NOT include state, Federal, or other government buildings that are not government buildings of the eligible entity.
In the case of tribal governments, exclusions from the definition of tribal government buildings are privately owned tribal housing and commercial buildings; facilities owned by 501(c) (3) entities (unl ess the organization was chartered and delegated by the Tribe to act on its behalf); and those owned by a Federal Agency (e.g., U.S.
Department of Housing and Urban Development, U.S. Department of the Interior, Bureau of Indian Affairs, etc.) 25 Entities proposing to purchase and install renewable energy technologies on government buildings may include the proposed activities under either Category 13 or 14. 142
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• Installation of renewable energy technologies (e.g., solar energy, wind energy, fuel cells, or biomass) at or on government property
TECHNICAL ASSISTANCE OPPORTUNITY
• Blueprint 4A: Solar + Storage - Power Purchase Agreements and Direct Ownership • Blueprint 4D: Renewable Resource Planning
• National Renewable Energy Lab provide technical assistance to Local Governments around Waste-to-Energy
• Additional technical assistance around specific technology areas, including solar, may be available through various DOE offices and national laboratories. For the latest, visit the EECBG Technical Assistance webpage.
ITEMS TO CONSIDER
• In addition to locational and structural characteristics (such as roof conditions, shading, orientation, etc.), considering the projects’ proximity to electrical infrastructure is critical for solar and wind projects (behind-the-meter projects exempted). • Leveraging eligible energy efficiency and conservation activities can reduce the cost of on-site renewable energy investments by meeting a government building’s energy requirements with less on-site generation capacity.
• Activities under this category should align with the local policy context, including siting limitations; utility-specific requirements for interconnections; state policies and programs such as renewable energy credits, rebates, and net metering; and available federal incentives, including tax credits.26
• Prioritize sites that directly serve the community and that provide one or more infrastructure and services to the community. For example, consider community centers, water and wastewater treatment facilities, police and fire stations, schools, libraries, and other facilities that could benefit from on-site renewable energy systems by lowering energy costs, and enhancing community resilience, such as providing backup power or emergency shelter in the event of a natural disaster or extended power outage (including when combined with energy storage systems, as described in Category 9).
26 Consider exploring siting resources provided by the National Renewable Energy Laborator y, such as the Clean Energy to Communities Program.
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Category (14) Programs for Financing, Purchasing, and Installing Energy Efficiency, Renewable Energy, and Zero-emission Transportation (and associated infrastructure) Measures and Capital Investments, Projects, and Programs for Leveraging Public and Private Sector Funds
STATUTORY LANGUAGE
Programs for financing energy efficiency, renewable energy, and zero-emission transportation (and associated infrastructure), capital investments, projects, and programs, which may include loan programs and performance contracting programs, for leveraging of additional public and private sector funds, and programs that allow rebates, grants, or other incentives for the purchase and installation of energy efficiency, renewable energy, and zero-emission transportation (and associated infrastructure) measures
PROGRAM GUIDANCE
• This category may include the purchase and deployment of energy efficiency, renewable energy, and zero emissions technologies. This may include technologies that promote the electrification of buildings and transportation.
• Projects and programs in this category include efforts to develop and/or implement programs that encourage and promote the use of energy efficiency, renewable energy, and zero emissions technologies. These programs may also include financing and loan programs to support energy efficiency, renewable energy, and zero emissions transportation. • Projects may leverage public and private funds, including partnerships with third-party lenders, co-lending, third-party administration of loans, loan loss reserves, and partnerships with utilities.
• Equipment acquisitions and installations for infrastructure projects will be subject to restrictions and review as outlined in statute under the National Environmental Protection Act (NEPA). NEPA will apply to equipment acquisition and installation, and to all other activities outlined in the Administrative and Legal Requirements Document.
• Equipment acquisitions and installations may also be subject to restrictions and review as outlined in statute under the Build America, Buy America Act (BABA). When necessary, exemptions under BABA may be possible.
EXAMPLE ELIGIBLE ACTIVITIES:
Transportation:
• Infrastructure development to support electric vehicles (EV), EV charging stations, rural EV infrastructure, and increasing EV charging access in underserved communities and communities with high energy burdens
• The purchase or lease of zero-emission vehicles, including electric buses, bikes, and scooters, as well as the acquisition, construction, and leasing of required supporting facilities Energy Efficient & Renewable Technology
• Pre-development planning costs for further energy efficiency and conservation projects and programs.
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• Infrastructure improvements to support the deployment of energy efficiency measures, renewable energy, and sustainable transportation
• The purchase, deployment, and infrastructure development of energy efficient and renewable energy technologies, including projects occurring in or on non-government buildings or privately owned land and facilities.
• The purchase and deployment of a battery storage system if combined with a renewable energy generation system and/or energy efficiency at government and/or non-government buildings or facilities
• Grid modernization efforts necessary to support renewable energy and electrification initiatives, such as upgrading metering infrastructure, grid-interactive equipment and appliances, and interconnection of local renewable energy systems (e.g., community solar systems, wind turbines and other renewable energy systems)
Clean Energy Programs
• Loan programs, such as revolving loan funds, on-bill financing programs, energy savings performance contracting, or solar lending programs
• Credit enhancements, such as loan loss reserves and financial incentives, interest rate buy downs, or rebates
• Programs for public education, training, workshops, technical assistance, measurement and verification, and energy management systems to support the use of energy efficiency, renewable energy and zero emissions transportation
• Innovative deployment and financing models for renewable energy, including community solar and solarize campaigns
TECHNICAL ASSISTANCE OPPORTUNITIES
• Blueprint 2A: Energy Efficiency – Energy Assessments and Building Upgrades • Blueprint 2B: Efficiency and Electrification of Buildings -- Energy Savings Performance Contracts • Blueprint 2C: Building Electrification Campaign
• Blueprint 3A: Solar + Storage - Power Purchase Agreements and Direct Ownership • Blueprint 3B: Community Solar
• Blueprint 3C: Solarize Campaign
• Blueprint 3D: Renewable Resource Planning
• Blueprint 4A: Electric Vehicles and Fleet Electrification • Blueprint 4B: EV Charging Infrastructure for Communities • Blueprint 5: Unlocking Sustainable Financing Solutions for Energy Projects and Programs – Revolving Loan Funds
• Blueprint 6: Workforce Development
• Additional technical assistance may be available through various DOE offices and national laboratories. For the latest, visit the EECBG Technical Assistance webpage.
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ITEMS TO CONSIDER
• Community solar projects mitigate some of the physical and siting barriers to solar installation by enabling multiple subscriber customers to receive bill credits for electricity generated from solar power without having to host a solar installation on their property. DOE resources for community solar projects are available through the National Community Solar Partnership. • Seek opportunities to leverage EECBG Program funds with private capital or design programs to deliver ongoing energy savings by reinvesting funds from loans or energy savings (e.g., a municipal revolving loan fund or energy savings performance contracting). • Larger-scale installation projects may require extended time to go through the NEPA review and approval process. Be sure to schedule in ample time for this important process. • Entities pursuing EV charging projects under this category should consider strategies to ensure equitable distribution of EV infrastructure to disadvantaged communities. Likewise, EV charging placement would ideally align with other state and federal efforts per category 7 above.
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LIMITATIONS ON THE USE OF EECBG PROGRAM FUNDS
There are several limitations on the use of EECBG Program funds. Eligible entities must consult their award agreements for more information about those limitations.
Limitations for funds:
Local and tribal governments:
• Use up to 20 percent or $250,000, whichever is greater, of the grant funds for the establishment of revolving loan funds.
• Use up to 20 percent or $250,000, whichever is greater, of grant funds for the provision of sub- grants to nongovernmental organizations for the purpose of assistance with overseeing, establishing, and monitoring the EECBG Program activities of the applicant.
Sub-granting Requirements & Notes:
o This limitation applies only to subgrants. Sub-contracts to address specific needs of the recipient to fully implement its energy efficiency and conservation strategy are not bound by this limitation, subject to approval by DOE. However, recipients must ensure that the majority of the grant funding is used to achieve the objectives of their EECBG Program grant.
o In addition, funding that is intended to be used for implementation of measures described in the recipients EECS and / or grant award may be passed-through a support subgrantee without counting against the limitation on subgrants. o All pass-through entities are responsible for administration of sub-granted funds, including flow-down requirements (i.e., award special terms & conditions), monitoring and oversight and reporting on sub-grantee activities.
27 • Use up to 10% or $75,000 of their funds for administrative expenses (excluding the cost of the reporting requirements).
28 States and territories:
• Are required to subgrant not less than 60% of the amount provided to the State to ineligible local governments within the state.
o American Samoa, Guam, Hawaii, the Commonwealth of the Mariana Islands, the District of Columbia, and the U.S. Virgin Islands are exempt from the 60% sub-grant requirement.
• Use up to 10% of their funds for administrative expenses.
27 Requirements for pass-through entities may be found in 2 CFR 200.332. 28 Grantees should use their established definitions of “administrative expenses”. States may not use more than 10 percent of amounts provided under the program for administrative expenses (42 USC 17155 (c)(4)). Units of local government and Indian tribes may not use more than 10 percent or $75,000, whichever is greater, for administrative expenses (42 USC 17155 (b)(3)(A)). EECBG funds may be used for compensation of employees or contractors. Whether or not the administrative cost cap applies depends on the nature of the responsibilities of the staff hired. Administrative activities are those that cannot be identified with any single program but are necessary to the general conduct of the activities of the entity organization; this could include such items as the overall direction of the organization, record keeping, budgeting, and business management. 147
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Programs or Activities Using American Recovery and Reinvestment Act (ARRA) funds:
For recipients that are administering programs or activities through EECBG Program funds received under ARRA, such as financing programs, the ARRA prohibitions on use of funds still apply. Specifically, ARRA prohibits, without exception, the use of funds for any casino or other gambling establishment, aquarium, zoo, golf course, or swimming pool. Any buildings or infrastructure supporting the above establishments are also ineligible.
Questions regarding the eligibility of a specific activity, measure, or program under the EECBG Program should directed to the EECBG Program Project Officer assigned to your award.
Michael Li
Acting Deputy Director, Community Energy Programs
Office of State and Community Energy Programs
/s/ Michael Li
148
RESOLUTION NO. 24-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EASTVALE, CALIFORNIA
ADOPTING AN ENERGY EFFICIENCY AND CONSERVATION STRATEGY FOR THE PURPOSE OF SATISFYING A RE QUIREMENT IN THE U.S . DEPARTMENT OF ENERGY’S ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT APPLICATION SUBMISSION PROCESS.
WHEREAS, the U.S. Department of Energy has previously allocated $550 million for the Energy Efficiency and Conservation Block Grant (EECBG) as part of the Bipartisan Infrastructure Act;
WHEREAS, the EECBG Program was created to p rovide assistance for cities to reduce energy use and improve energy efficiency;
WHEREAS, the City of Eastvale is eligible to apply for up to $123,670 in non -competitive funds through the EECBG Program;
WHEREAS, staff members from the City of Eastvale have identified an eligible use for the non-competitive funds, which is to purchase one or two electric vehicles for the Public Works Department;
WHEREAS, the City of Eastvale must adopt an Energy Efficiency and Conservation Strategy that supports the federal government’s efforts to reduce energy use and decrease carbon emissions as part of the EECBG application submission process;
WHEREAS, the U.S. Department of Energy requires Energy Efficiency and Conservation Strategy to include at least a goal that is related to carbon neutrality, energy reduction, carbon-free energy, fleet electrification, or prevailing wages;
WHEREAS, staff members from th e Western Riverside Coun cil of Governments and the Inland Regional Energy Network agreed that the adopted Energy Efficiency and Conservation Strategy should not place unnecessarily burdens on the City of Eastvale;
WHEREAS, the current California Advanced Clean Fleet Regulation already requires government entities in California to have at least 50% of the new medium - and heavy- duty trucks be Zero Emission Vehicles;
WHEREAS, the California Advanced Clean Fleet Regulation will require government entities in California to have 100% of the new medium - and heavy-duty trucks be Zero Emission Vehicles by 2027; and
WHEREAS, the EECBG grant application must be submitted to the U.S. Depar tment of Energy by April 30, 2024.
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NOW, THEREFORE, let it be resolved that the City Council of the City of Eastvale, California hereby adopts an Energy Efficiency and Conservation Strategy of converting the City fleet to include at least 50% Zero Emission Vehicles (excluding emergency and first responder vehicles) by the end of 2065 for the purpose of satisfying a requirement in the U.S.
Department of Energy’s EECBG grant application submission process.
PASSED, APPROVED AND ADOPTED this 14th day of February, 2024.
__________________________________________
Christian Dinco
Mayor
APPROVED AS TO FORM: ATTEST:
__________________________________________ __________________________________________ Erica Vega Marc A. Donohue, MMC
City Attorney City Clerk/Communications Director
150
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 City Council Resolution No. 24-XX, was duly adopted by the City Council of the City of Eastvale, California, at a meeting held on the 14th day of February 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Marc A. Donohue, MMC
City Clerk/Communications Director
151
AGENDA STAFF REPORT
City Council Meeting
CONSENT CALENDAR
Agenda Item No. 11.6
February 14, 2024
City of Eastvale Crime Statistics – December 2023
Prepared By:
Eva Terekhova, Emergency Management Specialist
Recommended Action(s)
Staff recommends that the City Council receive and file the Eastvale Crime Sta s
cs for December
2023.
Summary
The City Council requested staff to collaborate with the Riverside County Sheriff’s Department to develop a crime sta
s
cs document that would reflect selected Part I and Part II crime data for the City of Eastvale. Intended to show month-to-month crime sta s
cs, the document will assist in
determining appropriate staffing levels for law enforcement services.
Background
In May 2017, City Council directed staff to coordinate with the Riverside County Sheriff’s Department to request and obtain monthly crime sta
s
cs for the City of Eastvale. The primary
intent of the request was to determine appropriate staffing levels during the City’s contract nego
a
ons with the Sheriff’s Department. Over several weeks, the city manager and staff worked collabora
vely with Riverside County Sheriff’s Department administra on and management to
obtain crime statistics that could be shared with the public on a regular basis.
Upon receiving the data, the Riverside County Sheriff’s Department advised staff that the data provided would be reflec
ve of the previous month, or thirty days behind the current month; and that the report would need to include a disclaimer identifying the data as preliminary and raw.
At the July 26, 2017 mee
ng, City Council recommended that staff add columns reflec ve of felony 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
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and misdemeanor arrests. During the September 26, 2017 mee ng, City Council recommended staff
add traffic viola
ons/cita
ons data and the total calls for service broken down per month. Crime sta
s
cs that were released in the
me that passed since the last mee
ng of the City Council are
attached.
Environmental
Crime sta
s
cs are not a project pursuant to 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
This request has no fiscal impact.
Prior City Council/Commission Action
July 25, 2017: Approved by the Public Safety Commission September 26, 2017: Approved by City Council
Attachment(s)
Attachment - December 2023 Eastvale Crime Statistics
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City of Eastvale
Crime Statistics
December 2023
Violent Crime Statistics
VIOLENT CRIMES
ESTIMATED 2023 POPULATION = 69,929
DEC
2023
CRIME
RATE
PER
1000
DEC
2022
CRIME
RATE
PER
1000
NOV
2023
CRIME
RATE
PER
1000
OCT
2023
CRIME
RATE PER
1000
SEP
2023
CRIME
RATE PER
1000
YEAR TO
DATE
2023
YEAR TO
DATE
2022
YEAR
TO
DATE
2021
HOMICIDE 0 0 0 0 0 0 0 0 0 0 0 2 1
RAPE 1 0.01 0 0 1 0.01 0 0 1 0.01 11 6 2
ROBBERY 3 0.04 3 0.04 5 0.07 3 0.04 3 0.04 30 24 23
AGGRAVATED
ASSAULT 18 0.26 1 0.01 15 0.21 21 0.30 12 0.17 150 63 51 ARSON 0 0 1 0.01 0 0 0 0 0 0 3 1 0
TOTAL 22 N/A 5 N/A 21 N/A 24 N/A 16 N/A 194 96 72
YEAR POPULATION TOTAL CALLS FOR SERVICE/FILE #S
2022 69,929 26,411
2021 67,626 25,104
2020 66,413 23,778
2019 66,078 24,587
2018 64,855 28,383
2017 64,613 32,295
LEGEND
All data in this report was retrieved from the Riverside Sheriff’s Office (RSO) Data Warehouse Reports system. The figures represented are dynamic and subject to change based on the rate at which information is composed and entered in the Data Warehouse system.
Source of population data: State of California, Department of Finance. “Total calls for service/file #s generated” encompass ALL call types inclusive of the ones listed and not listed on this chart.
Year to Date (YTD) is calendar year.
TOTAL CALLS FOR SERVICE/FILE #S GENERATED
YEAR: 2023 POPULATION: 69,929 TOTAL YTD: 25,867
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1,929 2,066 2,349 2,495 2,056 2,100 2,328 2,146 2,247 2,227 2,164 1,760 Non-Violent Crime Statistics
PROPERTY CRIMES
ESTIMATED 2023 POPULATION = 69,929
DEC
2023
CRIME
RATE
PER
1000
DEC
2022
CRIME
RATE
PER
1000
NOV
2023
CRIME
RATE
PER
1000
OCT
2023
CRIME
RATE
PER
1000
SEP
2023
CRIME
RATE PER
1000
YEAR TO
DATE
2023
YEAR TO
DATE
2022
YEAR TO
DATE
2021
BURGLARY 11 0.16 18 0.19 7 0.10 12 0.17 15 0.21 145 146 158 VEHICLE THEFT 15 0.21 10 0.16 8 0.11 19 0.27 21 0.17 197 147 140 LARCENY THEFT 73 1.04 80 1.43 97 1.39 82 1.17 76 1.09 926 940 601 MAIL THEFT 8 0.11 3 0.04 11 0.16 4 0.06 2 0.03 59 33 69 INJURY TCS 12 0.27 13 0.21 20 0.29 14 0.20 4 0.11 124 134 136 FELONY ARREST 10 0.14 10 0.29 12 0.17 22 0.31 15 0.27 206 243 227
MISDEMEANOR
ARREST 43 0.61 30 0.82 22 0.31 31 0.44 15 0.51 352 438 243
TRAFFIC
CITATIONS 229 6.45 590 6.84 451 6.45 274 3.92 176 5.51 4,499 4,451 3,674
TOTAL 401 N/A 754 N/A 628 N/A 458 N/A 559 N/A 6,508 6,532 5,248 154
AGENDA STAFF REPORT
City Council Meeting
CONSENT CALENDAR
Agenda Item No. 11.7
February 14, 2024
Approval of Task Order No. 3 with Onward Engineering for Inspec/on Services for Various Public Works and Land
Development Projects
Prepared By:
James DeMonaco, Public Works Maintenance Coordinator
Recommended Action(s)
Staff recommends that the City Council approve Task Order No. 3 in the amount of $250,000 for an on-call consul)ng contract with Onward Engineering for Inspec)on services for various Public Works and Land Development projects.
Summary
The Public Works Department is commi0ed to the maintenance and opera)on of the City of Eastvale’s infrastructure. This includes ensuring the safety and quality of: streets, sidewalks, traffic signals, street lights, traffic signs, and storm drain inlets. Through ini)a)ves such as the Capital Improvement Program, we ac)vely improve the City’s infrastructure. Our mission is to keep the ameni)es that make Eastvale a premiere loca)on to live and raise a family and to ensure that the needs of Eastvale residents are met and exceeded every single day.
The Engineering Division is responsible for the design and construc)on of private development and capital/public projects. The division collects development fees, processes permits, and provides inspec)ons for a variety of construc)on and non-construc)on ac)vi)es within the public right-of- way. The services we provide ensure compliance with City Codes and design standards. Public Works Inspec)on provides a broad spectrum of services related to Public Works ac)vi)es. These services include the inspec)on of all improvements above ground (street improvements, curbs, gu0ers, sidewalks, street lights, traffic signals, pavement striping, etc.) and underground (sewer, water and 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
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Fund
Account
Department
Account
Description
Amended
Budget
Available
Budget
storm drain) for private development and Capital Improvement Projects. The purpose of inspec)on is to ensure the compliance with plans, specifica)ons, local, state and federal laws, regula)ons, and ordinances.
With the upcoming increase in projects throughout the City including CIP Projects (such as the Slurry Seal, Chip-Seal, and Grind And Overlay asphalt projects), Land Development (including the Leal Property, Goodman, The Merge, The Vine, The Ontario Commerce Center, Vantage Point Church), and various permit projects, Public Works staff sees the need to temporarily increase the number of available inspectors to oversee these projects. Onwards inspec)on services include the ability to have inspectors on weekends, as well as during night work, which helps supplement our inspectors outside of normal work hours and is a valuable asset to the City and department.
Background
On April 13, 2022, the City Council awarded a Professional On-call Services contract to Onward Engineering (Onward) for inspec)on services (A0achment 1). The approval included awarding on- call inspec)on services contract to seven (7) consultants including Onward. Onward demonstrated both the experience and qualifica)ons that meet Eastvale's needs and expecta)ons during the compe))ve procurement process. They are able to provide the necessary inspec)on services immediately and the goal is for this contract to provide one inspector for approximately 6 months (1,000 hours) and other public works related services. An amendment was made to the contract for On-Call Professional Services (Attachment 2).
PO Amount
PO No.
Task Order No.
$150,000
1052
1 $150,000
1361
2 The services provided by Onward will involve full service inspec)on services, which include inspec)on of land development projects, capital improvement projects, and encroachment permits.
Onwards staff will work under the direc)on of City staff to ensure that all projects meet City's standards.
Environmental
The proposed contract is not a project as defined by the California Environmental Quality Act (CEQA) as it is administrative in nature, and as such no environmental review is required.
Strategic Plan Action - Priority Level: N/A
| Target #: N/A
| Goal #: N/A
Right-size the organiza)on and staffing consistent with City services, needs, expecta)ons, and strategic plan priorities.
Fiscal Impact
There are sufficient funds budgeted in fiscal year 2023-24 for the recommended ac)on as shown below:
Prior City
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General
100-320-
6433
Engineering
Private
Development
$987,000
$810,196
General
100-320-
6490
Engineering
Engineering
Services
$419,50
0 $309,570
Council/Commission Action
On April 13, 2022, the City Council awarded an On-Call Engineering and Professional Consul)ng Services to Onward Engineering
On June 22, 2022, the City Council approved Task Order 1 to Onward Engineering On August 23, 2023, the City Council approved Task Order 2 to Onward Engineering Attachment(s)
Attachment 1 - Agreement of On-Call Contract with Onward Engineering
Attachment 2 - Amendment to On-Call Professional Services
Attachment 3 - Task Order 3
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157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
Task Order 3
to
On-Call Professional Services Agreement with Onward Engineering A. Contractor will provide the following Construction Inspection Services:
1. Inspect a variety of public works and public utilities construction and maintenance projects, such as sidewalks, concrete structures, driveways, water main and service installations; reclaimed water facilities and mainlines; sewer main and lateral installations; utility projects including mechanical, electrical, and structural work; curbs and gutters, retaining walls, earthwork, street excavation and patchwork; drainage facilities, storm drains; landscape irrigation; underground conduit installations; and street marking, and traffic sign installation to ensure construction and materials comply with contract standards and specifications, state laws, local ordinances, NPDES requirements and proper construction practices.
2. Inspect concrete street improvements, including drive approaches, wheel chair ramps, block walls, and other elements; inspect asphalt concrete street paving and slurry seal coating; ensure correct street sections by checking grades and elevations.
3. Observe earthwork grading, trench compaction, slope construction, earthen berms and surface drainage.
4. Review soils compaction reports.
5. Inspect all aspects of traffic control set-up and maintenance for conformance with codes, specifications and safety practices.
6. Interpret construction plans and specifications; prepare and make recommendations on change orders; confer with City engineering staff on design problems encountered in the field.
7. Perform final inspection of construction projects for field acceptance; prepare list of required corrections prior to final acceptance.
8. Maintain necessary records of daily operations, including daily project reports, time, material, and equipment reports.
9. Review and confirm as-built drawings for public works facilities and utility projects.
10. Coordinate activities and schedules with other entities involved in the construction project.
11. Keep records pertaining to work assignments, employee information, and inspection work.
12. Respond to queries by property owners, contractors, and staff regarding the construction project.
179
13. Inspect construction activities to confirm compliance with City standards and regulations.
14. Prepare monthly pay estimates.
15. Record amounts of materials that are received or used during construction.
16. Address and resolve complaints as they arise. Notify the City’s project manager of issues and request assistance when necessary.
17. Perform observations, inspections and tests of construction projects and document findings in accordance with good engineering practices and applicable codes.
18. Observe third party sampling and testing for conformance with contract specifications.
19. Provide weekly status reports on issues/risks factors, schedule slippages, cost overruns as it relates to construction projects.
20. Provide feedback to requests for information as it relates to projects inspected.
21. Provide regular full-time onsite inspection to construction projects and assess project status.
22. Serve as principal liaison for construction-related activities and coordinate formal interface actions between stakeholders and service providers.
23. Serve as the central point of contact for communications, coordination, support, and advice to the Project Manager.
24. Recognize, evaluate and properly resolve and/or make recommendations to unique problems or situations.
25. Maintain effective customer service relationship with City staff and the public.
26. Facilitate contract negotiations.
27. Properly and safely oversee the operation of light-, medium- and heavy-duty motorized vehicles and equipment.
28. Ensure appropriate communications take place with all involved personnel resulting in efficient use of manpower and finances to meet project milestones and City’s expectations.
29. Other construction inspection duties as necessary to support City projects in construction.
180
30. Minimum day is considered to be a 4-hour day. Cancellation of services will be made 12 hours prior to scheduled start and at no cost to the City.
31. Notify the City immediately in the event of any safety issue or job-site accident.
B. Compensation for the foregoing Services will be at the hourly rate of $130 and will not exceed 1,000 hours per an inspector per a fiscal year.
181
AGENDA STAFF REPORT
City Council Meeting
CITY COUNCIL BUSINESS
Agenda Item No. 13.1
February 14, 2024
Annual Comprehensive Financial Report (ACFR) and Related Letters and Reports for the Fiscal Year Ended June 30, 2023 Prepared By:
Luis De La Hoya, Finance Manager
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, 2023
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 ma1ers 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, 2023. The services provided for this audit fulfill the second 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 |
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182
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 Transmi1al 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 2023-24 adopted budget.
Prior City Council/Commission Action
Not applicable.
Attachment(s)
Attachment 1 - Annual Comprehensive Financial Report 2023
Attachment 2 - Independent Accountant's Report GANN 2023
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KINDNESS. GRIT. SOLUTIONS-DRIVEN.
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2023
CITY OF
EASTVALE
CALIFORNIA
184
City of Eastvale
Eastvale, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Prepared by the
Department of Finance and Administration
185
City of Eastvale
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
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 Total Pension Liability and Related Ratios ......................................... 59 Schedule of City’s Contributions – Pensions ............................................................................................................................ 60 Schedule of Changes in Total 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 ................................................................................................................................ 64 186
City of Eastvale
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
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 Measure A Fund ............................................................................................................................................... 76 AQMD Trust Fund ........................................................................................................................................... 77 Lighting and Landscape Maintenance Fund ................................................................................................ 78 Benefit Assessment Fund ................................................................................................................................ 79 Road and Bridge Benefit District Fund ........................................................................................................ 80 Community Development Block Grant Fund .............................................................................................. 81 Miscellaneous Grants Fund ............................................................................................................................ 82 Development Impact Fees Fund .................................................................................................................... 83 PEG Grant Fund ............................................................................................................................................... 84 TUMF Reimbursement Fund ......................................................................................................................... 85 Area Drainage Plan Fund ................................................................................................................................ 86 TDA Fund ......................................................................................................................................................... 87 Major Capital Project Fund:
Capital Projects Fund ...................................................................................................................................... 88 STATISTICAL SECTION (Unaudited)
Net Position by Component ........................................................................................................................................................ 91 Changes in Net Position............................................................................................................................................................... 93 Fund Balances of Governmental Funds .................................................................................................................................... 95 Changes in Fund Balances of Governmental Funds ................................................................................................................ 97 Assessed Value and Estimated Actual Value of Taxable Property ...................................................................................... .99 Direct and Overlapping Property Tax Rates ............................................................................................................................ 101 Principal Property Taxpayers ..................................................................................................................................................... 102 Property Tax Levies and Collections ........................................................................................................................................ 103 Ratios of Outstanding Debt by Type ........................................................................................................................................ 104 Ratios of General Bonded Debt Outstanding .......................................................................................................................... 105 Direct and Overlapping Bonded Debt ...................................................................................................................................... 106 Legal Debt Margin Information ................................................................................................................................................ 107 Pledged Revenue Coverage ........................................................................................................................................................ 108 Demographic and Economic Statistics ..................................................................................................................................... 109 Principal Employers .................................................................................................................................................................... 110 Governmental Activities Tax Revenues by Source ................................................................................................................ 111 Taxable Sales by Category ......................................................................................................................................................... 112 Full-time City Employees by Function .................................................................................................................................... 113 Operating Indicators by Function .............................................................................................................................................. 114 Capital Asset Statistics by Function ......................................................................................................................................... 116 187
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188
INTRODUCTION
SECTION
189
i
December 20, 2023
Honorable Mayor, Council Members and Residents of the City of Eastvale,
I am pleased to present the 2022‐23 Annual Comprehensive Financial Report (ACFR) for the City of Eastvale, California for the fiscal year ended June 30, 2023. S tate Law requires the City to prepare an annual financial report. This report fulfills that obligatio n. The City’s independent audit firm in conjunction with staff prepared the report in conformity with g enerally accepted accounting principles (GAAP) and with the financial reporting requirements prescribed by the Governmental Accounting Standards Board (GASB).
The ACFR is intended to provide relevant financial information to residents of the City of Eastvale, City staff, creditors, investors, businesses, and other concern ed readers. This letter of transmittal is designed to complement the Management Discussion and Analysis ( MD&A) and should be read in conjunction with it. The City of Eastvale's MD&A can be found i mmediately 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 th is 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 designed both t o p r o t e c t t h e g o v e r n m e n t ' s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation o f t h e C i t y o f E a s t v a l e ' s f i n a n c i a l s t a t e m e n t s i n c o n f o r m i t y w ith generally accepted accounting principles (GAAP). The cost of internal controls should not out weigh 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 wi ll be free from material misstatement. As management, we as s e r t t h a t , t o t h e b e s t o f o u r 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 b y 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, 2023, 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 c o m p o n e n t o f t h e f i n a n c i a l s e c t i o n o f t h e A C F R . G A A P r e q u i r e s 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).
Christian Dinco
Mayor
Michael McMinn
Mayor Pro Tem
Jocelyn Yow
Council Member
Clint Lorimore
Council Member
Todd Rigby
Council Member
Mark Orme
City Manager
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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 General Law city. The California Department of Fi nance lists the city’s population as 69,514 as of January 2023. The city operates under a Co uncil/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 pr o v i d e s a w i d e r a n g e o f s e r v i c e s i n c l u d i n g C i t y C l e r k , Communications, Planning, Building, Public Works, Engineering, Community Enhancement and Safety, and internal administrative services including Finance, Human Resources, and 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, wa ter and sewer through the Jurupa Community Services District, parks and recreation through the Jurupa Community Serv i c e s D i s t r i c t a n d J u r u p a A r e a R e c r e a t i o n a n d P a r k s District, and public transit through the Riverside Transit Agen cy. 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. In February, 2023, the Council up dated the City of Eastvale Strategic Plan and Priority Goals.
The adopted Strategic Plan includes seven targets: Public Safet y, Economic Development, Financial Planning, Inclusion, Infrastructure, Innovation and Technology, and Organizational D evelopment. 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 2023‐24 budget was the fifth 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 fina ncial planning and control. The development of the budget i s c o m p l e t e d a s t w o s e p a r a t e p r o j e c t s : t h e d e v e l o p m e n t o f t h e 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 contin ually enhances and adds relevant policies as formal financial systems are developed. As of June 30, 2023, the City had $109.5 million in committed reserves set aside for future Civic Center, which would include City Hall, Library, Police Station, and a 3 rd Fire Station. In addition, the city maintains two assigned reserves: General Fund emergency contingency of $15.0 million and Fire Fund emergency contingency of $5.8 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 thirteenth 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 comm ercial center was developed. Several 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 Arc hibald and Limonite, the Merge, the Campus, and the Ranch. All will add significant commercial, residential, and retail growth. The development of the 160‐acre Leal property at Hamner and Limonite Avenues is also underway and wi ll host the Civic Center and downtown commercial 191
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retail. These new developments will bring a mix of commercial retail and industrial to the city and attract new businesses and restaurants.
E c o n o m i c D e v e l o p m e n t h a s c o n t i n u e d t o m a k e s t r i d e s i n t h e c i t y , in 2022‐23 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 also received the second and 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 st r u c tu r e ; as a r e su l t , c oun t y p ool sal es t ax r e ve nue w as r e al located to host cities. This sig n i f i c ant l y b oost e d sal e s tax revenues and staff expects the increased revenues to continue for the next several fiscal years. Fiscal year 2022‐2023 was the highest grossing year for the City as it relates to sales t ax, generating over 47 million in sales tax revenue. 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, however, as pandemic impacts to r evenue pools begin to fade and economic uncertainty comes into question, there is uncertainty as to how long revenue will continue to increase. Additionally, 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 F und 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 2022‐23, initiatives focused on increasing staffing levels by converting contracted services such as Building Safety, Planning, and Engineering to in‐house services, as well as filling vacant positions. In addition, the city increased law enforcement services via contract with Riverside County Sheriff. The city increased daily patrol hours by adding two additional dedicated motor deputies. In addition, the city continues to allocate excess general fund revenues to the future Civic Center.
Major CIP projects for the 2023‐24 fiscal year include the Civic Center project and the Limonite Gap Bridge project, which is estimated to be completed before the end of 2024. Staff bega n the Civic Center infrastructure planning process and construction is expected to be gin 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 C u c a m o n g a C r e e k h a s a l r e a d y c o m m e n c e d a n d w i l l a l l o w e a s i e r a c cess from the City of Chino into Eastvale, possibly boosting sales tax revenue. The 2023‐24 budget also included funding four new capital replacement reserves to mitigate f u t u r e m a i n t e n a n c e c o s t s a n d s t r a i n t o t h e G e n e r a l F u n d o p e r a t ing budget. The 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 f unding the infrastructure project. Additionally, a comprehensive user fee study is nearly completed, which will re place the current 2013 study. The City believes that with the appropriate policies in place, as approved and revisited ea ch year as part of the budget program and Strategic Plan, the city's long‐range financial g oals will be met. The City has taken many steps to preserve the city’s financial 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, 20223 the city only has a few types of long‐term liabilities. They include employee accrued leave, capital leases, subscription‐based IT agreements 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. As of June 30, 2022, the city’s two plans are funded at 91.6% for classic and 88.4% for PEPRA.
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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, 2023.
Additional details regarding the City’s long‐term liabilities c an be found in the MD&A and Note 7 of the financial statements.
Risk Management
General liability and workers compensation are housed within th e 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 ins urance, and share costs for pr ofessional risk management and claims administration. 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 St at e F un d i s a Cal i f or n i a s p e c i f ic p r ovi de r of wor k e r s’ compensation insurance.
Awards and Acknowledgments
Government Finance Officers Association of the United States an d 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, 2022. This was the 11th consecutive year that th e 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 b een 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 throug h the commitment of all city employees. Commendations t o t h e M a y o r a n d C i t y C o u n c i l f o r t h e i r v i s i o n , d i r e c t i o n , a n d support toward achieving and maintaining the highest standards for the management of the City of Eastvale’s finances.
The City, in its twelfth year of incorporation, has achieved a great deal in transitioning fr om 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
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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, 2022
Executive Director/CEO
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CITY OF EASTVALE, CALIFORNIA
LIST OF PRINCIPAL OFFICIALS
JUNE 30, 2023
CITY COUNCIL
TODD RIGBY
Mayor
CHRISTIAN DINCO
Mayor Pro Tempore
CLINT LORIMORE, Councilmember
MIKE McMINN, Councilmember
JOCELYN YOW, Councilmember
CITY ADMINISTRATION
MARK ORME
City Manager
ERICA VEGA
City Attorney
AMANDA WELLS, Finance Director/City Treasurer
vi 195
Finance
Department
Finance Director/City Treasurer
Finance Manager
Senior Accountant
Accountant
Senior Accounting
Technician
Accounting Technician (2)
Intern
City Manager
City Manager
o Assistant to the City
Manager
City Clerk & CommunicaƟons
Department
City Clerk/Communications
Director
Assistant City Clerk
Deputy City Clerk
Administrative Specialist
Communications Officer
Communications Specialist
Community Services Manager
Community Services
Coordinator
Community Services
Specialist
Community Services
Leader (PT)
Community Development
Department
Community Development
Director
Senior Administrative
Specialist
City Planner
Senior Planner
Associate Planner
Planning Technician
Economic Development
Manager
Management Analyst
Management Assistant
Intern
Community Safety Department
Community Safety Director
Environmental Compliance
Analyst
Emergency Management
Specialist
Intern
Building Official
Senior Building Inspector
Plans Examiner
Building Inspector II
Building Inspector I
Senior Permit Technician
Permit Technician
Permit Specialist
Community Enhancement &
Safety Supervisor
CES Officer (3)
Senior Administrative
Spe
cialist
Intern
Human Resources
Deputy Human Resources/Risk
Management Director
Human Resources & Risk
Management Analyst
Payroll Coordinator
Human Resources
Technician
Intern
Public Works
City Engineer/Public Works
Director
Principal Engineer (2)
Senior Engineer
Associate Engineer
Assistant Engineer
Management Analyst
Engineering Technician
Maintenance & Facilities Manager
Maintenance Coordinator
Public Works Superintendent
Senior Construction Inspector
vii
196
FINANCIAL
SECTION
197
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, 2023, 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, 2023, 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. 91 and 96. 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
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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.
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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 Govern ment Auditing Standards , we have also issued our report dated December 20, 2023, 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 describe the scope of our testing o f internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Eastvale, California’s internal control over financial reporting or on co mpliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Eastvale, California’s internal control over financial reporting and compliance.
Newport Beach, California
Dece
mber 20, 2023
Gruber and Lopez, Inc.
Gruber and Lopez, Inc.
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CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
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, 2023. 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 2023 by $433,859,499. The difference between assets, liabilities, and deferred outflow/inflow of resources is referred to as net position. This is a $47,484,872 increase from the prior year. The increase is mostly attributed to an in crease in assets including cash, which saw a total increase of $47,332,77 1 from the prior year. Cash i ncreased mainly due to a large and continuous growth in sales tax. Liabilities also decreased $1,0 24,800 over the prior year, attributed to the difference in outstanding invoices payable when comparing 06/30/2022 to 06/30/2023. As of June 30, 2023, the city’s governmental funds reported com bined fund balances of $183,761,259, a $48,757,518 increase in comparison to the prior year. Approximately 10 percent, or $18,053,701 of the total amount of the governmental funds’ fund balances are unassigned. As of June 30, 2023, unassigned fund balance for the General Fu nd was $17,493,195 or 12 percent of total General Fund balance.
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CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
5 The General Fund balance increased during the year by $33,712,8 42. 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
202
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
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 2021, 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. 203
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
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 Total Pension Liability, Schedules of Contributions – Ca lPERS Pension Plan for the pension plan, and Schedule of Changes in Total OPEB Liability and Related Ratios and Schedule of Contributions ‐ OPEB.
The combining statements referred to earlier in connection with nonmajor 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, 2023, City assets plus deferred outflows of resources exceeded liabilities plus deferred inflows of resources by $433,859,499 as summarized below:
City of Eastvale
Summary of Net Position
For the Year Ended June 30, 2023
Governmental Activities
2023 2022
Assets:
Current and Other Assets $ 194,371,549 $ 147,347,793 Capital Assets (net of depreciation) 250,579,102 251,591,288 Total Assets 444,950,651 398,939,081
Deferred Outflows of Resources 1,105,495 760,503
Liabilities:
Current and Other Liabilities 10,490,450 11,837,962
Long‐Term Liabilities 902,796 580,084
Total Liabilities 11, 393,246 12,418,046
Deferred Inflows of Resources 803,401 906,911
Net Position:
Net Investment in Capital Assets 249,479,957 250,344,779 Restricted 55,855,777 39,662,199
Unrestricted 128,523,765 96,367,649
Total Net Position $ 433,859,499 $ 386,374,627
204
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
8 Assets
Total assets increased $46,011,570 primarily due to an increase in cash. The city experienced an increase in cash and investments of $47,332,771 due to a continued incre ase in sales tax revenue. The city also experienced a $1,012,186 decrease in Capital Assets due to a combination of decrease in the amount of developer donated infrastructure with an increase in land purchased by the City. All other assets remained relatively the same year over year.
Deferred Outflows of Resources
Deferred outflows of resources increased $344,992 as a result o f an increase in pension related items and other post‐employment benefit (OPEB) related items.
Liabilities
Total liabilities decreased by $1,024,800 mainly due to the decrease of accounts payable.
Deferred Inflows of Resources
Deferred inflows of resources de creased $103,510 mainly due to a decrease of $109,368 for pension related items.
Net Position
Net investment in capital assets represents 58 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 f u t u r e s p e n d i n g . A n a d d i t i o n a l p o r t i o n o f t h e C i t y ’ s n e t p o s i tion, $55,855,777 (thirteen percent) represents resources that are subject to restrictions on how th ey may be used, this category increased by $16,193,578 mainly due to future planned capital improvements including street maintenance project and civic center. The remaining balance, unrestricted net position, is $128,523,765.
Statement of Activities: The statement of activities shows how the City’s net position changed during the fiscal year 2022‐23. Provided below is a summary of changes in net position.
City of Eastvale
Summary of Activities
For the Year Ended June 30, 2023
Governmental Activities
2023 2022
Revenues:
Program Revenues:
Charges for Services $ 11,636,018 $ 11,414,639
Operating Grants and Contributions 6,714,098 12,196,305 Capital Grants and Contributions 6,073,803 9,480,133
General Revenues: 66,735,794 56,441,364
Total Revenues 91,159,713 89,532,441
Expenses:
General Government 6,598,858 9,988,607
Public Safety 20,095,788 17,842,676
Public Works 11,048,910 13,723,460
Community Development 5,381,976 5,229,139
Revenue Neutrality 545,433 524,455
Interest on Long‐term Debt 3,876 305,680
Total Expenses 43,674,841 47,614,017
Increase in Net Position: 47,484,872 41,918,424
Net Position, Beginning 386,374,627 344,456,203
205
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
9 Net Position, Ending 433,859,499 $ 386,374,627
Revenue Highlights
The City’s total revenues were $91,159,713 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 $43,674,841. Total revenues remained relatively unchanged year over year, increasing by $1,627,272 or
1.8%. The net increase was due to several factors:
Charges for services increased by $221,379. The increase is mainly due to a slight increase of permit fees from the Building & Safety department.
Operating grants and contributions decreased by $5,482,207. The d e 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 in the prior year. ARPA funds were one‐time funds and were used to offset public safety expenditures. Capital grants and contributions decreased by $3,406,330 over the prior year. This decrease was due to a decrease in donated infrastructure of $3,253,357.
General revenues increased by $10,294,430 in 2022‐2023. The main contributing factors to the increase in general revenues were sales tax, franchise tax and interest earnings. The city received $2,646,085, or 6% more in sales tax over the prior year. Adding to the increases in sales tax, franchise tax increased by $4,584,748 due to the second payment of the one‐time waste hauler retention fee of $4,000,000 from Waste Management, the first payment of $4,000,000 was received in fiscal year 2020‐2021, for a total of $8,000,000. The City also saw a significant gain in the category of investment earnings with a respective gain of $2,904,995 due to the significant increase of interest rates.
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Charges for Services Operating Grants and
Contributions
Capital Grants and
Contributions
General Revenues
Thousands
Revenues by Category: Governmental Activities
2022 2023
206
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
10 Expense Highlights
Total expenses decreased $3,939,176 over the prior year. The de crease was due to various increases/decreases across various funds and departments:
General Government saw a decrease of $3,389,749, primarily driven by the absence of the streetlight acquisition debt payment. The streetlight debt payoff amount was $4,510,719, paid in fiscal year 2021‐2022. Notable increases in expenditures include final paym ent for land purchases at Hamner Place for $1,840,000 as well as reimbursement to Lewis Land Dev elopers for improvements in the amount of $627,530.
Public Safety costs increased by $2,253,112. Contributing factors were an increase in Police contract costs of 2.5% as well as the addition of two motor deputies. Public Works expenditures decrea sed by $2,674,550, 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 5,000
10,000
15,000
20,000
25,000
General
Government
Public Safety Public Works Community
Development
Revenue
Neutrality
Interest on Long‐
term Debt
Thousands
Expenses: Governmental Activities
2022
2023
207
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
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 $183,761,259 on June 30, 2023. Compared to the prior year, this is an increase of $48,7 57,518. Fund balance in the amount of $55,806,629 is restricted for the completion of special activities and capital improvement projects including restricted amounts in the fire structural fund set as ide for fire operations and projects. $109,900,929 is committed for the future Civic Center. The remainder of the combined fund balance is $18,053,701 and classified as unassigned.
The General Fund is the chief operating fund of the city. On June 30, 2023, unassigned fund balance was $17,493,195. 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 52% of General Fund expenditures of $33,462,296.
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, 2023, total $78,729,039 compared to $67,989,185 for the previous year. The major components of rev enues are sales ta xes ($47.4 million), property taxes ($3.5 million), franchise taxes ($6.6 million), and motor vehicle in lieu tax ($5.9 million).
General Fund expenditures total $33,462,296 for the fiscal year ended June 30, 2023, compared to $33,344,486 for the previous year. It should be noted that whil e the city collects over $12.4 million in property tax, most of it is not levied for general purpose, the remainder $8.4 million is collected in the restricted fund for fire services.
As of June 30, 2023, the City’s General Fund reported an excess of revenues over expenditures of $45,266,743 compared to $34,644,699 in 2021‐2022, an increase of $10,622,044. The increase of $10.6 million over the prior year is due to several factors including the following:
208
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
12 General Fund Revenues
Interest income increased by $2,904,577 over the prior year, this significant increase was due to the increase of interest rates. Cash held in the Local Agency Inves tment Fund saw earnings in excess of 5%.
Sales tax revenue increased by $2,646,085 compared to the prior year. This amounted to a year‐ over‐year increase of about 6%. Economic development efforts combined with commercial and retail growth, as well as inflation attributed to the increase. Franchise tax increased by $4,584,748 in the General Fund over the prior year as a result of the second portion of a one‐time franchise agreement payment of $4,000,000 from Waste Management. Property tax increased by $1,194,835 year over year, this change is mostly attributed to the increase in property values.
General Fund Expenditures
Total General Fund expenditures remained mostly unchanged, only increasing by $117,810. Although the net result remained relatively unchanged, notable changes in expenditures are noted below:
o Law enforcement expenditures increased by $1,819,648 year over year while fire department expenditures increased by $621,4 87.16. Total General Fund Publi c Safety costs have increased approximately $2,475,512. Police services increased due to the addition of two motor deputies, as well as a 2.5% contract increase, this is in addition to the SET deputies, that were added in the 2021‐2022 fiscal year. Regarding Fire services, in fiscal year 2020‐2021 F i r e s e r v i c e s d e c r e a s e d C a l F I R E s a l a r i e s a n d b e n e f i t s a s a r e sponse to the COVID‐19 pandemic, part of the increase in Fire services is attributed to the resumption of ordinary Cal Fire salaries and benefits.
o Offsetting increases to expenditu res was the absence of the pay off of the developer agreement between Goodman and the City. The one‐time payment of $2,559,045 was paid in fiscal year 2021‐2022.
o Bad debt decreased by $369,260.68 as there were no write offs r egarding outstanding developer deposits owed to the City in the fiscal year 2022‐2023.
City of Eastvale
Summary of Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund
For the Year Ended June 30, 2023
Governmental Activities
2023 2022
Revenues:
Taxes $ 66,296,731 $ 58,752,698
Licenses, Permits, and Fees 2,425,431 2,427,776
Fines and Forfeitures 772,663 552,598
Intergovernmental 6,257,848 5,597,716
Investment Earnings 2,812,380 (92,197)
Other 163,986 750,594
Total Revenues 78,729,039 67,989,185
Expenditures:
209
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
13 General Government 5,938,748 9,409,171
Public Safety 19,870,428 17,394,916
Public Works 275,437 368,711
Community Development 5,420,907 5,269,010
Revenue Neutrality 545,433 524,455
Capital Outlay 910,661 90,074
Debt Service:
Principal Retirement 496,867 271,400
Interest 3,815 16,749
Total Expenses 33,462,296 33,344,486
Excess of Revenues over Expenditures 45,266,743 34,644,699
Other Finance Sources (Uses):
Transfers In 298,240 7,414,812
Transfers Out (12,761,462) (6,594,781)
Leases (As Lessee) 909,321 0
Total Other Financing Sources (Uses) (11,553,901) 820,031
Change in Fund Balances 33,712,842 35,464,730
Fund Balance, Beginning of Year 110,556,933 75,092,203 Fund Balance, End of Year 144,269,775 $ 110,556,933
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 $72,444,360. Expenditure revised budget totaled $37,677,541.
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, 2023
2023
Final Budget
Actual
Amounts
Variance with
Final Budget
Revenues:
Taxes 61,467,500 66,296,731 4,829,231
Licenses, Permits, and Fees 2,624,650 2,425,431 (199,219) Fines and Forfeitures 598,000 772,663 174,663
Intergovernmental 5,751,000 6,257,848 506,848
Investment Earnings 1,600,000 2,812,380 1,212,380 Other 403,210 163,986 (239,224)
Total Revenues 72,444,360 78,729,039 6,284,679
Expenditures:
General Government 7,396,642 5,938,748 1,457,894 Public Safety 21,266,688 19,870,428 1,396,260
Public Works 733,691 275,437 458,254
210
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
14 Community Development 7,697,320 5,420,907 2,276,413 Revenue Neutrality 556,200 545,433 10,767
Capital Outlay 27,000 910,661 (883,661)
Debt Service:
Principal Retirement 0 496,867 (496,867)
Interest 0 3,815 (3,815)
Total Expenses 37,677,541 33,462,296 4,215,245
Excess of Revenues over Expenditures 34,766,819 45,266,743 2, 069,434
Other Finance Sources (Uses):
Transfers In 293,075 298,240 (5,165)
Transfers Out (12,758,836) (12,761,462) 2,626
Leases (As Lessee) 0 909,321 (909,321)
Total Other Financing Sources (Uses) (12,465,761) (11,553,901) (911,860)
Change in Fund Balances 22,301,058 33,712,842 1,157,574 Fund Balance, Beginning of Year 110,556,933 110,556,933 0 Fund Balance, End of Year 132,857,991 144,269,775 1,157,574
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 2022‐ 2023, General Fund budgeted revenues exceeded actual revenues by $6,284,679. 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 $4,215,245. General Go vernment, Public Safety and Community Development were the main drivers of the $4.2 million dollar variance. Actual expenditures f o r b o t h P o l i c e a n d F i r e c a m e i n l o w e r t h a n p r o j e c t e d b y R i v e r side County Sheriff’s Department and CalFIRE. In regards to General Government and Community Development, budgeted expenditures e x c e e d e d a c t u a l s m a i n l y d u e t o s a l a r y a n d b e n e f i t s a v i n g s c a u s ed by vacancies in several divisions.
Private development under budget, general plan services under b udget, other contract services under budget, salaries and wage under budget vacancies
Capital Projects Fund Financials and Budgetary Highlights
As of June 30, 2023, the City’s Capital Projects Fund reported ending fund balance of $12,356,530, an increase of $9,447,572 from the prior year due to increases of transfers from the General Fund. The Capital Projects fund is entirely 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 Capital Projects Fund
For the Year Ended June 30, 2023
Governmental Activities
2023 2022
Revenues:
211
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
15 Taxes $ 0 $ 0
Intergovernmental 0 0
Investment Earnings 0 10
O t h e r 0 90,111
Total Revenues 0 90,121
Expenditures:
Public Works 280,539 109,862
Capital Outlay 2,978,830 911,302
Debt Service:
Principal Retirement 0 4,402,869
Interest 0 107,850
Excess of Revenues over Expenditures (3,259,369) (5,441,762) Other Finance Sources (Uses):
Transfer In 12,720,759 6,563,000
Transfers Out (13,818) 0
Total Other Financing Sources (Uses) 12,706,941 6,563,000
Change in Fund Balances 9,447,572 1,121,238
Fund Balance, Beginning of Year 2,908,958 1,787,720
Fund Balance, End of Year $ 12,356,530 $ 2,908,958
As of June 30, 2023, the City’s Capital Projects Fund reported an excess of expenditures over revenues of $3,259,369, compared to $5,441,762 in the prior year. The decrease in expenditures primarily is due to the Streetlight purchase debt payoff of $4.5 million in fisc al year 2021‐2022. Offsetting decreases to expenditures, Capital outlay expenditures increased by $2,067,5 2 8 d u e t o t h e i m p r o v e m e n t s a n d acquisition of land at Hamner Place. As mentioned previously all Capital Projects fund expenditures are funded through transfers from the General Fund resulting in an increase of transfers in of $6,157,759.
Not all expenditures are completed in the same year as they are funded. Transfers for the Limonite Gap project and Civic Center are expected to cover expenditures in future years.
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 3 , amounted to $250,579,102 (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 $181,416, 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. Land increased by $3,091,170 due to the completion of the acquisition of land at Hamner Place. Depreciation of infrastructure, such as streets, sidewalks, str eetlights and storm drains accounted for most of the decreases to Capital Assets.
212
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
16 Right‐to‐Use – IT Subscriptions $957,097 is a new category for FY2022‐2023 and is now included due to the implementation of Statement No. 96 from the Governmental Accounting Standards Board.
Capital assets are summarized below, additional information can be found in Note 6 to the basic financial statements.
City of Eastvale
Summary of Capital Assets (net of depreciation)
For the Year Ended June 30, 2023
Governmental Activities
2023 2022
Land $ 9,902,743 $ 6,811,573
Construction in Progress 10,866,868 10,685,452
Buildings 8,071,729 8,264,525
Right‐to‐Use – Leased Buildings 323,924 569,042 Leasehold Improvements 8,129 4,690
Vehicles 396
,779 172,649
Furniture and Fixtures 49 ,786 58,100
Machinery and Equipment 281,643 391,391
Right‐to‐Use – Leased Mach. and Equip. 56,680 67,730 Software 1 9,089
Right‐to‐use‐ IT Subscriptions 846 ,313 0
Infrastructure 219 ,774,507 224,557,047
Total Capital Assets $ 250,579,102 $ 251,591,288
Long‐term debt: At the end of fiscal year 2021, the City’s total outstanding 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 $1 ,464,537 as of June 30 th, 2023. The long‐ term debt liability is comprised of Compensated Absences $365,3 92, Subscription Leases Payable $705,055 and Leases Payable $394,090. Compensated absences increased by $100,809 due to new employees being hired. Subscription Leases Payable is new for f iscal year 2022‐2023 and increased by $705,055 due to Governmental Accounting Standards Board Statement No. 96 which requires payments for subscription‐based IT agreements to be categorized as debt. Leases payable decreased by $298,599, as the City reduced its lease obligation and did not add any ne w leases. Outstanding long‐term debt of the City is summarized below, additional information can be foun d i n N o t e 7 t o t h e b a s i c f i n a n c i a l statements.
City of Eastvale
Summary of Outstanding Long‐Term Debt
For the Year Ended June 30, 2023
2023 2022
Compensated Absences $ 365,392 $ 264,583 Subscription Leases Payable 705,055 0
Leases Payable 394,090 692,689
Total Long‐Term Debt $ 1,464,537 $ 957,272
213
CITY OF EASTVALE
Management’s Discussion and Analysis (Unaudited)
for the Year Ended June 30, 2023
17 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, 2023, during the preparation of the fiscal year 2023‐24 budget, management considered the possible impacts of economic development, national economies, a nd local COVID‐19 pandemic related economic impacts.
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 received by the city. When comparing June 30 th, 2023, to prior fiscal years, the city saw a substantial increase in relation to sales tax revenue. Sales tax revenue fo r fiscal year 2022‐2023 was $47,356,371 and made up 71% of general revenues. As expected, a change this drastic did not go unnoticed. Without success, many cities that lost sales tax revenue went on to pet ition the California League of Cities in an effort to revert the changes in sales tax reporting. It is entirely possible that business structures or sales tax laws could change in the future, but for the time being, th e City of Eastvale will continue to 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 bui ld a City Hall, Police Station, Fire Station and Library.
In fiscal year 2024 the City will rely heavily on sales tax as its main source of income. However, the City also relies on property taxes and motor vehicle in lieu fees which contributed $9,411,920 to general revenues in fiscal year 2022‐2023. As the City emerges from the COVID‐19 pandemic, it continues to prioritize economic development in order to provide sustainable c i t y s e r v i c e s f o r t h e l o n g t e r m . C i t y officials and management have been working diligently to attract a plethora of new and diverse business offerings. Coming to the City of Eastvale in the near future will be the development of the Leal property by the developer New Home. The site is slated to be the locatio n for Eastvale’s future City Hall, Police Station, Library and 3rd Fire Station, in addition to new business offerings and homes. Walmart is also set to open its doors in 2024 and will hopefully continue to fuel s a l e s t a x a n d p r o p e r t y t a x g r o w t h .
Additionally, the City is also working with Rivian to open the Cities first auto dealership. Rivian opened in December 2023 next to the future planned Limonite Gap bridge which will connect residents and business West of the Cucamonga Creek. Construction of the bridge commenced in 2023 and is estimated to be completed in 2024 without any unforeseen delays. Lastly, the City should also benefit from the completion of neighboring residential developments as it will give Eastvale businesses a larger customer base. City staff and officials continue to work towards a prosperous City that delivers optimal city services.
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. 214
18 BASIC FINANCIAL STATEMENTS
215
19 GOVERNMENT-WIDE
FINANCIAL STATEMENTS
216
Governmental
Activities
ASSETS
Current assets:
Cash and investments (Note 3 and Note 4) 181,564,410 $
Receivables:
Accounts 77,985
Intergovernmental 11,963,208
Interest 159,849
Lease 556,949
Total current assets 194,322,401
Total OPEB Asset (Note 10) 49,148
Capital assets: (Note 6)
Non-depreciable 20,769,611
Depreciable, net 229,809,491
Total capital assets 250,579,102
Total noncurrent assets 250,628,250
Total assets 444,950,651
DEFERRED OUTFLOWS OF RESOURCES
Pension related items (Note 9) 1,059,466
OPEB related items (Note 10) 46,029
Total deferred outflows of resources 1,105,495
CITY OF EASTVALE
Statement of Net Position
June 30, 2023
See accompanying notes to the basic financial statements. 20 217
Governmental
Activities
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 6,433,380
Deposits payable 3,441,650
Compensated absences, due within one year (Note 7) 91,348 Long-term liabilities, due within one year (Note 7) 524,072
Total current liabilities 10,490,450
Noncurrent liabilities:
Compensated absences (Note 7) 274,044
Long-term liabilities (Note 7) 575,073
Total pension liability (Note 9) 53,679
Total noncurrent liabilities 902,796
Total liabilities 11,393,246
DEFERRED INFLOWS OF RESOURCES
Pension related items (Note 9) 156,653
OPEB related items (Note 10) 79,454
Lease related items 567,294
Total deferred inflows of resources 803,401
NET POSITION
Net investment in capital assets 249,479,957
Restricted for:
Street maintenance/projects 21,429,040
Lighting and landscape maintenance 4,730,097
Capital projects city facilities 12,130,543
Fire operations/improvements 16,875,651
Other purposes 690,446
Total restricted 55,855,777
Unrestricted 128,523,765
Total net position 433,859,499$
Statement of Net Position (Continued)
June 30, 2023
CITY OF EASTVALE
See accompanying notes to the basic financial statements. 21 218
Operating Capital Total
Charges for Grants and Grants and Program
Expenses Services Contributions Contributions Revenue
Governmental activities:
General government 6,598,858 $ 119,547 $ 50,000 $ - $ 169,547$ Public safety 20,095,788 8,894,795 175,625 - 9,070,420 Public works 11,048,910 947,897 6,488,473 6,073,803 13,510,173 Community development 5,381,976 1,673,779 - - 1,673,779 Revenue neutrality 545,433 - - - - Interest and fiscal charges 3,876 - - - - Total governmental activities 43,674,841$ 11,636,018 $ 6,714,098 $ 6,073,803 $ 24,423,919 $
CITY OF EASTVALE
Statement of Activities
For the Year Ended June 30, 2023
Functions/Programs
Program Revenues
See accompanying notes to the basic financial statements. 22 219
Net (expense)
Revenue and
Changes in
Net Position
Governmental activities:
General government (6,429,311) $
Public safety (11,025,368)
Public works 2,461,263
Community development (3,708,197)
Revenue neutrality (545,433)
Interest and fiscal charges (3,876)
Total governmental activities (19,250,922)
General revenues:
Taxes:
Property taxes, levied for general purpose 3,510,339
Franchise tax 6,556,660
Sales taxes 47,356,371
Other taxes 495,068
Total taxes 57,918,438
Motor vehicle in lieu (Intergovernmental/unrestricted) 5,90 1,581 Investment earnings (loss) 2,801,790
Other 113,985
Total general revenues 66,735,794
Change in net position 47,484,872
Net position - beginning of year 386,374,627
Net position - end of year 433,859,499 $
Functions/Programs
CITY OF EASTVALE
Statement of Activities (Continued)
For the Year Ended June 30, 2023
See accompanying notes to the basic financial statements. 23 220
24 FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
221
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. 222
Capital
Project
Fund
Capital Nonmajor Total
Projects Governmental Governmental
General Fund Funds Funds
Cash and investments (Note 3 and Note 4) 141,180,149$ 12,867,937 $ 27,516,324 $ 181,564,410 $ Receivables:
Accounts 73,085 - 4,900 77,985 Intergovernmental 10,526,510 - 1,436,698 11,963,208 Interest 135,320 - 24,529 159,849 Lease 556,949 - - 556,949 Due from other funds (Note 5) 1,028,620
- - 1,028,620
Total assets 153,500,633$ 12,867,937 $ 28,982,451 $ 195,351,021 $ Liabilities:
Accounts payable 4,680,759 $ 511,407 $ 814,291 $ 6,006,457 $ Accrued liabilities 426,923 - - 426,923 Deposits payable 3,441,650 - - 3,441,650 Due to other funds (Note 5) - - 1,028,620 1,028,620 Total liabilities 8,549,332 511,407 1,842,911 10,903,650 Deferred Inflows of Resources:
Unavailable revenue 114,232 - 4,586 118,818 Lease related items 567,294 - - 567,294 Total deferred inflows of resources 681,526 - 4,586 686,112 Fund Balances: (Note 12)
Restricted 16,875,651 11,052,878 27,878,100 55,806,629 Committed 109,900,929 - - 109,900,929 Unassigned 17,493,195 1,303,652 (743,146) 18,053,701 Total fund balances 144,269,775 12,356,530 27,134,954 183,761,259 Total liabilities, deferred inflows of
resources and fund balances 153,500,633$ 12,867,937 $ 28,982,451 $ 195,351,021 $
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND
BALANCES
ASSETS
CITY OF EASTVALE
Governmental Funds
June 30, 2023
Balance Sheet
See accompanying notes to the basic financial statements. 26 223
Total Fund Balances - Total Governmental Funds 183,761,259$ Capital assets 336,107,242
Accumulated depreciation (85,528,140)
Total capital assets 250,579,102
118,818
Compensated absences (365,392)
Leases payable (1,099,145)
Total Pension (Liability) Asset (53,679)
49,148 (1,469,068)
Pension related deferred outflows of resources 1,059,466 OPEB related deferred outflows of resources 46,029
Pension related deferred inflows of resources (156,653) OPEB related deferred inflows of resources (79,454) 869,388 Net position of governmental activities 433,859,499$
CITY OF EASTVALE
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2023
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.
Total OPEB (Liability) Asset
See accompanying notes to the basic financial statements. 27 224
Capital
Project
Fund
Capital Nonmajor Total
Projects Governmental Governmental
General Fund Funds Funds
REVENUES:
Taxes 66,296,731 $ - $ 1,560,641$ 67,857,372 $ Licenses, permits and fees 2,425,431 - - 2,425,431 Fines and forfeitures 772,663 - - 772,663 Intergovernmental 6,257,848 - 5,937,161 12,195,009 Development impact fees - - 619,301 619,301 Assessments - - 1,161,522 1,161,522 Investment earnings (loss) 2,812,380 - 951,057 3,763,437 Other 163,986 - 227,778 391,764 Total revenues 78,729,039 - 10,457,460 89,186,499 EXPENDITURES:
Current:
General government 5,938,748 - 74,243 6,012,991 Public safety 19,870,428 - - 19,870,428 Public works 275,437 280,539 1,848,437 2,404,413 Community development 5,420,907 - - 5,420,907 Revenue neutrality 545,433 - - 545,433 Capital outlay 910,661 2,978,830 2,687,898 6,577,389 Debt service:
Principal 496,867 - 5,998 502,865 Interest and fiscal charges 3,815
- 6 1 3,876
Total expenditures 33,462,296 3,259,369 4,616,637 41,338,302
REVENUES OVER (UNDER)
EXPENDITURES 45,266,743 (3,259,369) 5,840,823 47,848,197
OTHER FINANCING
SOURCES (USES):
Transfers in (Note 5) 298,240 12,720,759 96,746 13,115,745 Transfers out (Note 5) (12,761,462) (13,818) (340,465) (13,115,745) Leases (as lessee) 909,321 - - 909,321 Total other financing sources (uses) (11,553,901) 12,706,941 (243,719) 909,321 NET CHANGE IN FUND BALANCES 33,712,842 9,447,572 5,597,104 48,757,518 Fund balances, beginning of year 110,556,933 2,908,958 21,537,850 135,003,741 Fund balances, end of year 144,269,775 $ 12,356,530 $ 27,134,954 $ 183,761,259 $ Statement of Revenues, Expenditures, and Changes in Fund Balances
CITY OF EASTVALE
Governmental Funds
For the Year Ended June 30, 2023
See accompanying notes to the basic financial statements. 28 225
Net Change in Fund Balances - Total Governmental Funds 48,757,518$ Governmental activities in the Statement of Activities were reported differently because:
Total capital outlay expenditures reported in governmental funds 6,577,389 $ Plus: repair and maintenance expenditures 570,977
Total capital outlay 7,148,366
Total depreciation reported in Government-wide Statement of Activities (8,160,552) Proceeds from leases (909,321)
Principal paid on leases payable 502,865 (406,456) Net change in compensated absences (100,809)
Net change in Total Pension Liability (Asset) (217,438) Net change in Total OPEB Liability (Asset) (2,453)
Net change in pension related deferred outflows and deferred inflows of resources 459,564 Net change in OPEB related deferred outflows and deferred inflows of resources 2,412 141,276 4,720
Change in net position of governmental activities 47,484,872$ 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, 2023
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. 29 226
NOTES TO THE BASIC
FINANCIAL STATEMENTS
30 227
CITY OF EASTVALE
31 Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
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.
228
CITY OF EASTVALE
32 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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.
229
CITY OF EASTVALE
33 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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
I n f r a s t r u c t u r e 1 0 t o 6 5 y e a r s V e h i c l e s 5 t o 1 0 y e a r s
O f f i c e E q u i p m e n t 5 t o 1 0 y e a r s C o m p u t e r E q u i p m e n t 5 y e a r s
Right of Use Leased Equipment and Subscriptions 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.
230
CITY OF EASTVALE
34 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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.
231
CITY OF EASTVALE
35 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, and Leases/Subscriptions, which arises only under a full accrual basis of accounting. Accordingly, these items (pen sion and other postemployment benefit related items), are reported only in the government-wide statement of n et position. These amounts (see Notes 9 and 10, respectively) are amortized by an actuarial determined period. 232
CITY OF EASTVALE
36 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Leases and Subscription Agreements
Lessee: The City is a lessee fo r noncancellable leases of build ings, equipment, and subscription software and subscription agreements. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) 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 and subscription agreements liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease and subscription agreements 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 leas e and subscription agreements asset is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to leases and subscription agreements include how the City determines (1) the discount rate it uses to discount the expected lease paymen ts to present value, (2) lease 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 esti mated incremental borrowing rate as the discount rate for leases and subscription agreements. The lease term includes the noncancellable period of the lease. Lease and subscription agreement payments i ncluded 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 and subscription agreements assets are reported with othe r capital assets and lease liabilities 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.
233
CITY OF EASTVALE
37 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Pensions
For purposes of measuring the total pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position o f 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 accordanc e with the benefit terms. Investments are reported at fair value.
Other Postemployment Benefits – OPEB
For purposes of measuring the total OPEB liability (asset), deferred outflows of resources and deferred inflows of resources related to OPEB, and O PEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deduc tions from the OPEB Plan’s fi duciary net position have been determined on the same basis. For this purpose, benefit payments are recogniz ed when currently 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 2 Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
Governmental Accounting Standard Accounting Standards Board (GASB) Pronouncements The City adopted Statement on Governmental Accounting Standards (GASB Statements) No 91- Conduit Debt Obligations and No. 96- Subscription Based Information Technology. The adoption of the GASB Nos. 91 and 96 did not significantly impact the City.
234
CITY OF EASTVALE
38 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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.
235
CITY OF EASTVALE
39 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 3 – Cash and Investments
Cash and investments at June 30, 2023 are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and Investments $ 181,564,410
Total Cash and Investments $ 181,564,410
Cash and investments at June 30, 2023 consist of the following:
Cash on hand $ 800
Deposits with Financial Institutions 41,315,909
Investments 140,247,701
Total Cash and Investments $ 181,564,410
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%
236
CITY OF EASTVALE
40 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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 $ 1,384,354 - - 1,384,354 CAMP 98,976,705 - - 98,976,705
Money Market Mutual Funds 3,188,277 - - 3,188,277
Federal Agency Securities 1,78 9,479 18,379,946 7,604,229 27,7 73,654 Commercial Paper 70,138 - 253,043 323,181
Medium-Term Notes 799,809 3,368,405 2,581,394 6,749,608 Municipal Obligations 457,084 1,035,070 - 1,492,154
Negotiable Certificates of Deposit - 359,768 - 359,768
Total $106,665,846 23,143,189 10,438,666 140,247,701
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, 2023
Minimum
Legal
Rating
Rating
Local Agency Investment Fund $ 1,384,354 None Not Rated California Asset Management Program 98,976,705 None Not Rated Money Market Mutual Funds 3,188,277 None Not Rated
Federal Agency Securities 1,026,844 A AAA
Federal Agency Securities 26,746,810 A AA+
Commercial Paper 323,181 A AA+
Medium-Term Notes 2,447,191 A AAA - AA-
Medium-Term Notes 1,347,883 A A+
Medium-Term Notes 1,237,898 A A
Medium-Term Notes 1,278,980 A A-
Medium-Term Notes 90,917 A BBB
Medium-Term Notes 346,739 A BBB+
Municipal Obligations 434,178 A AAA
Municipal Obligations 133,126 A AA+
Municipal Obligations 567,608 A AA
Municipal Obligations 357,242 A AA-
Negotiable Certificates of Deposit 359,768 None A Total Investments $ 140,247,701
237
CITY OF EASTVALE
41 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 3 – Cash and Investments (Continued)
Concentration of Credit Risk
For the fiscal year ended June 30, 2023, 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, 2023, the City had deposits of $38,815,909 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.
238
CITY OF EASTVALE
42 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023, are as follows:
Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
Money Market Mutual Funds $ - 3,188,277 - 3,188,277 Federal Agency Securities - 27, 773,654 - 27,773,654 Commercial Paper - 323,181 - 323,181 Medium-Term Notes - 6,749,608 - 6, 749,608 Municipal Obligations - 1,492,154 - 1,492,154 Negotiable Certificates of Deposit - 359,768 - 359,768 Total Leveled Investments $ - 39,886,642 - 39,886,642 Investments Not Subject to
Fair Value Hierarchy:
Local Agency Investment Fund 1,384,354
California Asset Management Program 98,976,705
Total 140,247,701
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.
239
CITY OF EASTVALE
43 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 5 – Interfund Receivables, Payables and Transfers
Due to/From Other Funds
Current interfund balances at June 30, 2023 consisted of the following:
Due To Other Funds:
Other Nonmajor
Governmental
Funds Total
Due From Other Funds:
General Fund $1,028,620 $1,028,620
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
Capital
Projects
Funds
Nonmajor
Governmental
Funds
Total
General Fund $ - - 298,240 298,240
Capital Projects Funds 12,720,759 - - 12,720,759
Nonmajor Governmental Funds 40,703 13,818 42,225 96,746
Total $12,761,462 13,818 340,465 13,115,745
Transfers are used to provide services and construct assets between funds.
240
CITY OF EASTVALE
44 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 6 – Capital Assets
Capital asset activity for the year ended June 30, 2023 was as follows:
Beginning Ending
Description Balance Additions Deletions Balance
Non-depreciable:
Land $ 6,811,573 3,690,170 599,000 9,902,743
Construction in process 10,685, 452 4,432,001 4,250,585 1 0,866,868
Total non-depreciable 17,497, 025 8,122,171 4,849,585 20 ,769,611
Depreciable:
Buildings 9,374,448 - - 9,374,448
Leased Buildings 853,563 - 230,633 622,930
Leasehold Improvements 43,935 5,310 - 49,245
Vehicles 1,208,793 312,800 32,369 1,489,224
Furniture and Fixtures 83,148 - - 83,148
Machinery and Equipment 897,655 57,363 - 955,018
Leased Machinery and Equipm ent 120,747 - - 120,747 Software 480,412 - - 480,412
Right-to-use- IT Subscriptions - 957,097 - 957,097 Infrastructure 298,731,498 2,473,864 - 301,20 5,362
Total depreciable
capital assets 311,794,199 3,806,434 263,002 315,337,6 31
Less accumulated depreciation for:
Buildings 1,109,923 192,796 - 1,302,719
Leased Buildings 284,521 299,006 284, 521 299,006
Leasehold Improvements 39,245 1,871 - 41,116
Vehicles 1,036,144 88,670 32,369 1,092,445
Furniture and Fixtures 25,048 8,314 - 33,362
Machinery and Equipment 506,264 167,111 - 673,375 Leased Machinery and Equipmen t 53,017 26,508 15,458 64,067 Software 471,323 9,088 - 480,411
Right-to-use- IT Subscriptions - 110,784 - 110,784 Infrastructure 74,174,451 7,256,404 - 81 ,430,855
Total accumulated
depreciation 77,699,936 8,160,552 332,348 85,528,1 40
Total depreciable
capital assets, net 234,0 94,263 (4,354,118) (69,346) 2 29,809,491
Total capital assets, net $251,5 91,288 3,768,053 4,480,239 250,579,102
Depreciation expense was charged in the following functions in the Statement of Activities:
General Government $ 528,242
Public Safety 368,062
Public Works 7,264,248
Total $8,160,552
241
CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
45 Note 7 – Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2023 was as follows:
Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year
Compensated Absences $ 264,583 166,955 66,146 365,392 91,3 48 Subscription
Leases Payable - 909 ,321 204,266 705,055 195,58 4 Leases Payable 692,289 - 298,599 394 ,090 328,488
Total $ 957,872 1,076,276 569,011 1,464,537 615,420
Liabilities for compensated absences are typically liquidated by the General Fund.
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 $34,613 in lease revenue and $10,593 in interest revenue during the current fiscal year related to this lease. As of June 30, 2023, the City’s receivable for lease payments was $556,949. 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, 2023, the balance of the deferred inflow of resources was $519,206.
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 as part of the implementation of GASB
87. As of June 30, 2023, the value of the lease liability was $ 0. The City prepaid the system costs upfront and is recognized as a prepaid item and recognized over the term of th e lease. The lease has an interest rate of 1.86%.
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 $0 and had accumulated amortization of $17,692.
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 liability was recorded in the amount of $103,054. As of June 30, 2023, the value of the lease liability was $60,728. The City is required to make month ly principal and interest payments of $1,890. The lease has an interest rate of 1.91%. The equipment has a five-y ear estimated useful life. The value of the right-to- use asset as of the end of the current fiscal year was $56,679 and had accumulated amortization of $46,374.
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 $622,929. As of J une 30, 2023, the value of the lease liability was $333,362. The City is required to make monthly principal and in terest payments of $24,195. The lease has an interest rate of 2.02%. 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 $323,923 and had accumulated amortization of $299,006.
242
CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
46 Note 8 – Leases (Continued)
The future principal and interest lease payments as of June 30, 2023, were as follows:
Year Ending
June 30, Principal Interest Total
2024 $ 328,488 $ 4,919 $ 333,407
2025 48,722 597 49,319
2026 16,880 135 17,015
$ 394,090 $ 5,651 $ 399,741
C. Subscription Leases Payables
On June 6, 2023, City of Eastvale entered into a 36 month subsc ription for the use of Placer Geographical Information System Software. An initial subscription liability was recorded in the amount of $83,541. As of June 30, 2023, the value of the subscription liability is $55,041. C ity of Eastvale is required to make annual fixed payments of $28,500. The subscription has an interest rate of 2 .3630%. The value of the right to use asset as of June 30, 2023 of $83,541 with accumulated amortization of $232.
On July 1, 2022, City of Eastvale entered into a 55 month subsc ription for the use of OpenGov Budgeting & Planning Software. An initial subscription liability was recorded in the amount of $130,331. As of June 30, 2023, the value of the subscription liability is $97,930. City of Eas tvale is required to make annual fixed payments of $34,200. The subscription has an interest rate of 2.3660%. The value of the right to use asset as of June 30, 2023 of $170,106 with accumulated amortization of $37,114.
On September 1. 2022, City of Eastvale entered into a 36 month subscription for the use of Springbrook OpenGov Integration Subscription. An initial subscription liability was recorded in the amount of $15,269. As of June 30, 2023, the value of the subscription liability is $10,268. City of Eastvale is required to make annual fixed payments of $5,000. The subscription has an interest rate of 2.1840%. The value of the right to use asset as of June 30, 2023 of $15,269 with accumulated amortization of $4,241.
On July 1, 2022, City of Eastvale entered into a 50 month subsc ription for the use of SpringBrook Cloud ERP Software. An initial subscription liability was recorded in the amount of $167,597. As of June 30, 2023 the value of the subscription liability is $127,223. City of Eastvale is required to make annual fixed payments of $41,009.
The subscription has an interest rate of 2.2750%. The value of the right to use asset as of June 30, 2023 was $175,597 with accumulated amortization of $42,143.
On March 3, 2023, City of Eastvale entered into a 60 month subscription for the use of Accela Land Management Software. An initial subscription liability was recorded in the amount of $512,583. As of June 30, 2023 the value of the subscription liability is $414,592. City of Eastvale is required to make annual fixed payments of $97,991.
The subscription has an interest rate of 2.6820%. The value of the right to use asset as of June 30, 2023 of $512,583 with accumulated amortization of $27,053.
Year Ending
June 30, Principal Interest Total
2024 $ 195,584 $ 17,856 $ 213,440
2025 207,515 12,984 220,499
2026 185,958 7,809 193,767
2027 115,998 3,111 119,109
$ 709,055 $ 41,760 $ 746,815
243
CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023, 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, 2023 were $451,400.
As of June 30, 2023, the City reported a total pension asset for its proportionate share of the total pension liability of the Plan of $53,679.
244
CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
48 Note 9 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions City’s total pension liability for the Plan is measured as the proportionate share of the total pension liability. The total pension liability of the Plan is measured as of June 30, 2021, and the total pension liability for the Plan used to calculate the total pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s p roportion of the total 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 deter mined. The City’s proportionate share of the total pension liability for the Plan as of June 30, 2021 and 2022 was as follows:
Miscellaneous
Proportion – June 30, 2022 (0.0086)%
Proportion – June 30, 2023 0.0011%
Change – Increase (Decrease) 0.0098%
For the year ended June 30, 2023, the City recognized pension e xpense of $209,274. At June 30, 2023, 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
$ 451,400
-
Change in proportion 316,838 (155,931)
Difference in actual contributions vs.
proportionate share of contributions
274,815
-
Difference between expected and
actual experience
1,077
(722)
Differences between projected and
actual earnings on plan investments
9,835
-
Change in assumptions 5,501 -
Total $ 1,059,466 (156,653)
Deferred outflows of resources of $451,400 related to contribut ions subsequent to the measurement date will be recognized as a reduction in the total pension liability in the year ended June 30, 2024. 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
2024 $168,274
2025 151,504
2026 125,621
2027 6,001
$451,400
245
CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2021 actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous
Valuation date June 30, 2021
Measurement date June 30, 2022
Actuarial cost method Entry-Age Normal Cost Method
Actuarial assumptions:
Discount rate 6.90%
Inflation 2.50%
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 6.90 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.
246
CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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
Assumed
Asset
Allocation
Real Return
Years
1-10 (a)(b)
Global equity-cap-weighted 30.0% 4.45%
Global equity non-cap-weighted 12.0% 3.84%
Private equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-
backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.31%
Leverage (5.0%) (0.59%)
Total 100%
(a) An expected inflation of 2.0% used for this period. (b) Figures are based on the 2021-2022 Asset Liability Management study.
Sensitivity of the Proportionate Share of the Total 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 proportionate share of the total 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 5.90%
Total Pension Liability $ 371,226
Current Discount Rate 6.90%
Total Pension Liability $53,679
1% Increase 7.90%
Total Pension Liability (Asset) $(207,584)
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, 2023, the City had $0 owed to the pension plan for contributions for the year ended June 30, 2023 which is included in accrued liabilities.
247
CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023 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, 2023, the City’s cash contributions were $61,190 to the trust.
Total OPEB Liability
The City’s total OPEB liability (asset) was measured as of June 30, 2023 and the total OPEB liability (asset) used to calculate the total OPEB liability (asset) was determined by an actuarial valuation dated June 30, 2023 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. 248
CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
52 Note 10 – Other Post-Employment Benefit (OPEB) Plan (Continued) Total 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 total OPEB liability (asset) for the Plan are as follows:
Increase (Decrease)
Total
OPEB
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Total OPEB
Liability/
(Asset)
(c)=(a)-(b)
Balance at Fiscal Year Ending 6/30/22
Measurement Date 6/30/22 $153,496
$205,097
$(51,601)
Changes During the Period:
Service Cost 61,303 - 61,303
Interest Cost 12,458 - 12,458
Actual and Expected Experience Difference - - -
Changes of Assumptions - - -
Contributions - Employe
r - 61,190 (61,190)
Net Investment Income - 10,221 10,221
Benefit Payments - - -
Administrative Expense - (103) 103
Net Changes 73,761 71,308 2,453
Balance at Fiscal Year Ending 6/30/23
Measurement Date 6/30/23 $227,257
$276,405
$(49,148)
249
CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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 total OPEB liability (asset) of the City 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, 2023:
Current
1% Decrease Discount Rate 1% Increase
4.80% 5.80% 6.80%
$(3,374) $(49,148) $(85,554)
Sensitivity of the Total OPEB Liability (Asset) to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability (asset) of the City 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, 2023:
Current Healthcare Cost
1% Decrease Tren t Rates 1% Increase
4.60% 5.60% 6.60%
$(100,686) $(49,148) $21,095
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)
250
CITY OF EASTVALE
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023, the City recognized OP EB expense of $63,558. As of fiscal year ended June 30, 2023, 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 12,326 (1,215)
Difference between expected and
actual experience
10,004
(78,239)
Net difference between projected and
actual earnings on investments
23,699
-
Total $ 46,029 (79,454)
There were no deferred outflows of resources related to contributions subsequent to the June 30, 2022 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
2024 $ 2,649
2025 2,782
2026 5,733
2027 (3,969)
2028 (5,786)
Thereafter (34,832)
$(33,423)
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.
251
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
Restricted
Street maintenance/projects $ - - 21,429,040 21 ,429,040 Lighting and landscape maintenance - - 4,730,097 4,730,097 AQMD projects - - 617,349 617,349
Capital projects city facilities - 1 1,052,878 1,077,665 12,130,54 3 Fire operations/improvements 16,875,651 - - 16,875,651
Other purposes - - 23,949 23,949 Total Restricted 16,875,651 11,052,878 27,878,100 55,806,629 Committed
Civic Center and Library 85,540,429 - - 85,540,429
Police substation reserve 8,000,000 - - 8,000,000 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 Apparatus replacement reserve 400,000 - - 400,000 Total Committed 109,900,929 - - 109,900,929 Unassigned 17,493,195 1,303,652 (743,146) 18,053,701 Totals $144,269,775 12,356,530 27,134,954 183,761,259
252
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 $ 19,802
AQMD Projects 617,349
OPEB Asset 49,148
PEG Grant 4,147
$ 690,446
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.
Note 14 – Subsequent Events
Management has evaluated subse quent events through December 20, 2023 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.
253
57 REQUIRED SUPPLEMENTARY
INFORMATION (UNAUDITED)
254
58 This page intentionally left blank.
255
June 30, 2022 1 June 30, 2021 1 June 30, 2020 1 June 30, 2019 1 June 30, 2018 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2022-23 2021-22 2020-21 2019-20 2018-19
City's Proportion of the Total
Pension Liability/(Asset) 0.00115% -0.00860% 0.00180% 0.00128% 0.000 77% City's Proportionate
share of the Total Pension
Liability/(Asset) 53,679 $ (163,759)$ 73,969 $ 51,218 $ 29,187 $ City's Covered payrol
l 3,701,391$ 2,588,113 $ 2,154,841 $ 1,479,268 $ 809,185 $ City's Proportionate Share
of the Total Pension (Asset)
as a Percentage of its
covered payrol
l 1.5% -6.3% 3.43% 3.46% 3.61%
Plan's Proportionate Share
of the Fiduciary Total
Position as a Percentage of
the Total Pension Liability 97.7% 110.9% 92.99% 91.41% 95.15% June 30, 2017
1 June 30, 2016 1 June 30, 2015 1 June 30, 2014 1
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2017-18 2016-17 2015-16 2014-15
City's Proportion of the Total
Pension Liability/(Asset) 0.00089% 0.00041% -0.00007% 0.00032% City's Proportionate
share of the Total Pension
Liability/(Asset) 35,121 $ 14,412 $ (1,555) $ 19,852 $ City's Covered payrol
l 578,739$ 575,155 $ 628,256 $ 534,402 $ City's Proportionate Share
of the Total Pension (Asset)
as a Percentage of its
covered payrol
l 6.07% 2.51% -0.25% 3.71%
Plan's Proportionate Share
of the Fiduciary Total
Position as a Percentage of
the Total Pension Liability 92.14% 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 nine years are presented.
CITY OF EASTVALE
Schedule of City's Proportionate Share of the Total Pension Liability and Related Ratios For the Year Ended June 30, 2023
Last Ten Fiscal Years
CalPERS Pension Plan
59 256
2022-23 2021-22 2020-21 2019-20 2018-19
Actuarially determined contribution 2
451,400 $ 342,270 $ 253,472 $ 167,959 $ 121,361 $ Contributions in relation to the
actuarially determined contributions 2
(451,400)$ (342,270)$ (253,472)$ (167,959) $ (121,361)$ Contribution deficiency (excess) - $ - $ - $ - $ -$ Covered payroll 2
5,540,286 $ 3,701,391 $ 2,577,036 $ 2,154,841 $ 1,479,268$ Contributions as a percentage of
covered employee payroll 8.15% 9.25% 9.84% 7.79% 8.20%
2017-18 2016-17 2015-16 2014-15
Actuarially determined contribution 2
56,387 $ 41,112 $ 38,874 $ 38,818 $
Contributions in relation to the
actuarially determined contributions 2
(56,387)$ (41,112)$ (38,874)$ (38,818) $
Contribution deficiency (excess) - $ - $ - $ - $ Covered payroll 2
809,185 $ 578,739 $ 575,155 $ 628,256 $
Contributions as a percentage of
covered employee payroll 6.97% 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 nine 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 Period 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 employment 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, 2023
Last Ten Fiscal Years 1
60 257
2023 2022 2021 2020 2019 2018
Total OPEB Liability
Service cost 61,303 $ 41,998 $ 40,676 $ 22,958 $ 26,279 $ 19,154 $ Interest on the total OPEB Liability 12,458 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 73,761 11,703 49,455 (6,293) 28,195 18,203 Total OPEB liability - beginning 153,496 141,793 92,338 98,631 70,436 52,233 Total OPEB liability - ending (a) 227,257$ 153,496 $ 141,793 $ 92,338 $ 98,631 $ 70,436 $ Plan Fiduciary Net Position
Contribution - employer 61,190 $ 47,000 $ 42,800 $ 24,000 $ - $ - $ Net investment income 10,221 (27,856) 24,047 7,205 16,882 3,730 Benefit payments - - - - - - Administrative expense (103) (297) (277) (130) (126) (74) Net change in plan fiduciary
net position 71,308 18,847 66,570 31,075 16,756 3,656 Plan fiduciary net position -
beginning 205,097 186,250 119,680 88,605 71,849 68,193 Plan fiduciary net position -
ending (b) 276,405 $
205,097 $ 186,250 $ 119,680 $ 88,605 $ 71,849 $ Total OPEB liability (asset) -
ending (a)-(b) (49,148) $ (51,601) $ (44,457) $ (27,342) $ 10,026 $ (1,413) $ Covered-employee payroll 5,540,286$ 2,744,186 $ 2,664,258 $ 2,257,055 $ 2,105,545 $ 1,113,007 $ Total OPEB liability as a percentage
of covered-employee payroll -0.89% -1.88% -1.67% -1.21% 0.48% -0.1 3% 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 six years are shown.
CITY OF EASTVALE
For the Year Ended June 30, 2023
Last 10 Fiscal Years 1
61 Schedule of Changes in the Total OPEB Liability (Asset) and Related Ratios As of the fiscal year ending June 30,
258
2023 2022 2021 2020 2019 2018
Valuation Date 6/30/2023 6/30/2021 6/30/2019 6/30/2017 6/30/2017 6/30/2015 Actuarially determined contribution 61,190 $ 45,350 $ 44,029 $ 42,747 $ - - Contributions in relation to the
actuarially determined contributions (61,190)$ (47,000)$ (42,800) $ (24,000) $ - - Contribution deficiency (excess) - $ (1,650)$ 1,229 $ 18,747 $ - - Covered-employee payroll 5,540,286 $ 2,744,186 $ 2,664,258 $ 2,257,055 $ 2,105,545 1,113,007 Contributions as a percentage of
covered employee payroll 1.10% 1.71% 1.61% 1.06% 0.00% 0.00% Notes to schedule:
Valuation Date 12/31/2021 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
Entry Age
Normal
Amortization Method Level Dollar Level Dollar Level Dollar Level Dollar n/a n/a Amortization Period Open 30
Year 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 Market Value Market Value Market Value Inflation 2.50% 2.50% 2.50% 2.50% 1.75% 1.75%
Healthcare Cost-Trend Rates
5.6% in 2023
fluctuating to
3.9% by
2075
5.4% in 2021
fluctuating to
4% by 2076
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% 3.00% 2.75% 2.50%
Investment rate of return 5.80% 6.50% 6.50% 6.50% 6.50% 3.75% Retirement age 50 to 75 50 to 75 50 to 75 50 to 75
60 or
eligibility
age if later
60 or
eligibility age
if later
Mortality
CalPERS
2018
Experience
Study
CalPERS
2017
Experience
Study
CalPERS
2017
Experience
Study
CalPERS
2017
Experience
Study
RP 2014
Mortality
Table
CalPERS 2014
Experience
Study
Mortality Improvement MW Scale
2022
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 six years are shown.
CITY OF EASTVALE
For the Year Ended June 30, 2023
Last 10 Fiscal Years 1
62 Schedule of Plan Contributions - OPEB Plan
As of the fiscal year ending June 30,
259
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 61,467,500 $ 61,467,500 $ 66,296,731 $ 4,829,231 $ Licenses, permits and fees 2,614,650 2,624,650 2,425,431 (199,219) Fines and forfeitures 588,000 598,000 772,663 174,663 Intergovernmental 5,751,000 5,751,000 6,257,848 506,848 Investment earnings (loss) 600,000 1,600,000 2,812,380 1,212,380 Other 403,210 403,210 163,986 (239,224) Total revenues 71,424,360 72,444,360 78,729,039 6,284,679
EXPENDITURES
Current:
General government 6,913,360 7,396,642 5,938,748 1,457,894 Public safety 21,278,988 21,266,688 19,870,428 1,396,260 Public works 705,700 733,691 275,437 458,254 Community development 8,059,000 7,697,320 5,420,907 2,276,413 Revenue neutrality 556,200 556,200 545,433 10,767 Capital outlay 87,000 27,000 910,661 (883,661) Debt service:
Principal - - 496,867 (496,867)
Interest and fiscal charges -
- 3,815 (3,815)
Total expenditures 37,600,248 37,677,541 33,462,296 4,215,245
REVENUES OVER (UNDER)
EXPENDITURES 33,824,112 34,766,819 45,266,743 2,069,434
OTHER FINANCING
SOURCES (USES):
Transfers in 293,075 293,075 298,240 (5,165) Transfers out (8,605,020) (12,758,836) (12,761,462) 2,626 Leases (as lessee) - - 909,321 (909,321)
Total other financing sources (uses) (8,311,945) (12,465,761) (11,553,901) (911,860) NET CHANGE IN FUND BALANCE 25,512,167 22,301,058 33,712,842 1,157,574 Fund balance, beginning of year 110,556,933 110,556,933 110,556,933 - Fund balance, end of year 136,069,100 $ 132,857,991$ 144,269,775$ 1,157,574$
CITY OF EASTVALE
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2023
Budgeted Amounts
63 260
64 CITY OF EASTVALE
Notes to the Required Supplementary Information
For the Year Ended June 30, 2023
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 the exception of the Special Revenue Fund, Law Enforcement Grants.
261
SUPPLEMENTARY INFORMATION
65 262
66 CITY OF EASTVALE
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
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.
Measure A Fund - T his 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.
Lighting and Landscape Maintenance Fund - T his 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 - T his fund is used to account for the Community Development Block 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 f und is used to account for the receipts and expenditures of public education grants related activities.
Transportation Uniform Mitigation Fee (TUMF) Fund - This fund provides transportation and transit infrastructure th at 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.
Major Capital Project Funds
Capital Projects Fund (Capital Projects) is used to account for the financial resources to be used for the acquisition or construction of capital facilities.
263
AQMD
Gas Tax Measure A Trust
Cash and investments 6,164,831 $ 6,315,575$ 593,506 $ Receivables:
Accounts - - -
Intergovernmental 428,953 600,521 23,322
Interest 5,495 5,438 521
Total assets 6,599,279 $ 6,921,534$ 617,349 $
Liabilities:
Accounts payable 378,150 $ 284,476$ - $
Due to other funds - - - Total liabilities 378,150 284,476 -
Deferred inflows of resources:
Unavailable revenue - - - Total deferred inflows of resources - - - Fund Balances:
Restricted for:
Street maintenance/projects 6,221,129 6,637,058 - Lighting and landscape maintenance - - - AQMD projects - - 617,349 Capital projects city facilities - - - Other purposes - - -
Unassigned -
- -
Total fund balances (deficits) 6,221,129 6,637,058 617,349 Total liabilities, deferred inflows
and fund balances 6,599,279 $ 6,921,534$ 617,349 $
Special Revenue Funds
ASSETS
RESOURCES, AND FUND BALANCES
LIABILITIES, DEFERRED INFLOWS OF
CITY OF EASTVALE
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
67 264
Road and
Lighting and Bridge
Landscape Benefit Benefit
Maintenance Assessment District
Cash and investments 4,777,044 $ 19,938 $ 6,987,047$ Receivables:
Accounts - - -
Intergovernmental 14,034 58 - Interest 4,361
1 3 6,302
Total assets 4,795,439$ 20,009 $ 6,993,349$
Liabilities:
Accounts payable 60,756 $ 207 $ 6,456 $ Due to other funds - - - Total liabilities 60,756 207 6,456 Deferred inflows of resources:
Unavailable revenue 4,586 - - Total deferred inflows of resources 4,586 - - Fund Balances:
Restricted for:
Street maintenance/projects - - 6,986,893 Lighting and landscape maintenance 4,730,097 - - AQMD projects - - -
Capital projects city facilities - - - Other purposes - 19,802 -
Unassigned -
- -
Total fund balances (deficits) 4,730,097 19,802 6,986,893 Total liabilities, deferred inflows
and fund balances 4,795,439$ 20,009 $ 6,993,349$ Special Revenue Funds
ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
CITY OF EASTVALE
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
68 265
Development
Miscellaneous Impact PEG
CDBG Grants Fees Grant
Cash and investments - $ - $ 1,733,664$ 3,815 $ Receivables:
Accounts - - 4,900 - Intergovernmental - 225,368 - 332 Interest -
- 1,568 -
Total assets -$ 225,368$ 1,740,132$ 4,147 $ Liabilities:
Accounts payable - $ 43,019$ 242 $ - $ Due to other funds 7 156,145 - - Total liabilities 7 199,164 242 - Deferred inflows of resources:
Unavailable revenue - - - - Total deferred inflows of resources - - - - Fund Balances:
Restricted for:
Street maintenance/projects - - 662,225 - Lighting and landscape maintenance - - - - AQMD projects - - - - Capital projects city facilities - - 1,077,665 - Other purposes - - - 4,147 Unassigned (7)
26,204 - -
Total fund balances (deficits) (7) 26,204 1,739,890 4,147 Total liabilities, deferred inflows
and fund balances -$ 225,368$ 1,740,132$ 4,147 $
CITY OF EASTVALE
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Special Revenue Funds
69 266
Total
Area Nonmajor
Drainage Governmental
TUMF Plan TDA Funds
Cash and investments - $ 920,904$ - $ 27,516,324$ Receivables:
Accounts - - - 4,900 Intergovernmental - - 144,110 1,436,698 Interest -
831 - 24,529
Total assets -$ 921,735$ 144,110 $ 28,982,451$ Liabilities:
Accounts payable 36,340 $ - $ 4,645$ 814,291$ Due to other funds 733,002 - 139,466 1,028,620 Total liabilities 769,342 - 144,111 1,842,911 Deferred inflows of resources:
Unavailable revenue - - - 4,586 Total deferred inflows of resources - - - 4,586 Fund Balances:
Restricted for:
Street maintenance/projects - 921,735 - 21,429,040 Lighting and landscape maintenance - - - 4,730,097 AQMD projects - - - 617,349 Capital projects city facilities - - - 1,077,665 Other purposes - - - 23,949 Unassigned (769,342)
- (1) (743,146)
Total fund balances (deficits) (769,342) 921,735 (1) 27,134,954 Total liabilities, deferred inflows
and fund balances -$ 921,735$ 144,110 $ 28,982,451$
CITY OF EASTVALE
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
70 267
AQMD
Gas Tax Measure A Trust
REVENUES:
Taxes 1,560,641 $ - $ - $
Intergovernmental 1,773,930 3,417,628 92,310 Development impact fees - - - Assessments - - -
Investment earnings (loss) 195,181 206,884 20,803 Other 41,399 - -
Total revenues 3,571,151 3,624,512 113,113
EXPENDITURES:
Current:
General government - - 9,231 Public safety - - -
Public works 927,336 97,055 -
Capital outlay 246,244 1,422,035 -
Debt service:
Principal - - -
Interest and fiscal charges - - - Total expenditures 1,173,580 1,519,090 9,231
REVENUES OVER
(UNDER) EXPENDITURES 2,397,571 2,105,422 103,882 OTHER FINANCING SOURCES (USES):
Transfers in 29,765 7,735 -
Transfers out (160,280) (124,725) -
Total other financing sources (uses) (130,515) (116,990) - NET CHANGE IN FUND BALANCES 2,267,056 1,988,432 103,882 Fund balances (deficits), beginning of year 3,954,073 4,648,626 513,467 Fund balances (deficits), end of year 6,221,129 $ 6,637,058 $ 617,349 $
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, 2023
71 268
Road and
Lighting and Bridge
Landscape Benefit Benefit
Maintenance Assessment District
REVENUES:
Taxes - $ - $ - $
Intergovernmental - - - Development impact fees - - - Assessments 1,106,751 3,355 51,416
Investment earnings (loss) 159,962 561 265,627 Other 184,935 - -
Total revenues 1,451,648 3,916 317,043 EXPENDITURES:
Current:
General government - - - Public safety - - -
Public works 780,222 4,957 184
Capital outlay - - -
Debt service:
Principal - - -
Interest and fiscal charges - - - Total expenditures 780,222 4,957 184
REVENUES OVER
(UNDER) EXPENDITURES 671,426 (1,041) 316,859 OTHER FINANCING SOURCES (USES):
Transfers in 23,790 7,580 -
Transfers out (4,305) (140) - Total other financing sources (uses) 19,485 7,440 - NET CHANGE IN FUND BALANCES 690,911 6,399 316,859 Fund balances (deficits), beginning of year 4,039,186 13,403 6,670,034 Fund balances (deficits), end of year 4,730,097 $ 19,802 $ 6,986,893$
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, 2023
72 269
Development
Miscellaneous Impact PEG
CDBG Grants Fees Grant
REVENUES:
Taxes - $ - $ - $ - $ Intergovernmental - 509,183 - - Development impact fees - - 619,301 - Assessments - - - - Investment earnings (loss) - - 65,993 - Other - - - 1,444 Total revenues - 509,183 685,294 1,444 EXPENDITURES:
Current:
General government - 65,012 - - Public safety - - - - Public works - - - - Capital outlay - 395,725 490,000 - Debt service:
Principal - 5,998 - - Interest and fiscal charges - 6 1 - - Total expenditures - 466,796 490,000 -
REVENUES OVER
(UNDER) EXPENDITURES - 42,387 195,294 1,444 OTHER FINANCING SOURCES (USES):
Transfers in - 11,502 - - Transfers out - (12,900) (8,350) - Total other financing sources (uses) - (1,398) (8,350) - NET CHANGE IN FUND BALANCES - 40,989 186,944 1,444 Fund balances (deficits), beginning of year (7) (14,785) 1,552,946 2,703 Fund balances (deficits), end of year (7) $ 26,204$ 1,739,890$ 4,147 $
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, 2023
73 270
Total
Area Nonmajor
Drainage Governmental
TUMF Plan TDA Funds
REVENUES:
Taxes - $ - $ - $ 1,560,641$ Intergovernmental - - 144,110 5,937,161 Development impact fees - - - 619,301 Assessments - - - 1,161,522 Investment earnings (loss) - 36,046 - 951,057 Other - - - 227,778 Total revenues - 36,046 144,110 10,457,460 EXPENDITURES:
Current:
General government - - - 74,243 Public safety - - - - Public works 24,099 - 14,584 1,848,437 Capital outlay 133,894 - - 2,687,898 Debt service:
Principal - - - 5,998 Interest and fiscal charges - - - 6 1 Total expenditures 157,993 - 14,584 4,616,637
REVENUES OVER
(UNDER) EXPENDITURES (157,993) 36,046 129,526 5,840,823 OTHER FINANCING SOURCES (USES):
Transfers in 13,818 - 2,556 96,746 Transfers out - - (29,765) (340,465) Total other financing sources (uses) 13,818 - (27,209) (243,719) NET CHANGE IN FUND BALANCES (144,175) 36,046 102,317 5,597,104 Fund balances (deficits), beginning of year (625,167) 885,689 (102,318) 21,537,850 Fund balances (deficits), end of year (769,342) $ 921,735 $ (1) $ 27,134,954$
CITY OF EASTVALE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds
74 271
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Taxes 1,497,500 $ 1,560,641 $ 63,141 $
Intergovernmental 1,867,980 1,773,930 (94,050) Investment earnings (loss) 48,000 195,181 147,181 Other - 41,399 41,399
Total revenues 3,413,480 3,571,151 157,671
EXPENDITURES
Current:
Public works 1,451,900 927,336 524,564
Capital outlay 4,702,712
246,244 4,456,468
Total expenditures 6,154,612 1,173,580 4,981,032
REVENUES OVER (UNDER)
EXPENDITURES (2,741,132) 2,397,571 (4,823,361)
OTHER FINANCING
SOURCES (USES):
Transfers in - 29,765 (29,765) Transfers out (160,280) (160,280) -
Total other financing sources (uses) (160,280) (130,515) (29,765) NET CHANGE IN FUND BALANCE (2,901,412) 2,267,056 (4,853,126) Fund balance, beginning of year 3,954,073 3,954,073 - Fund balance, end of year 1,052,661 $ 6,221,129 $ (4,853,126) $
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, 2023
75 272
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Intergovernmental 1,997,000 $ 3,417,628 $ 1,420,628 $ Investment earnings (loss) 35,000 206,884 171,884 Total revenues 2,032,000 3,624,512 1,592,512
EXPENDITURES
Current:
Public works 78,000 97,055 (19,055) Capital outlay 5,967,589
1,422,035 4,545,554
Total expenditures 6,045,589 1,519,090 4,526,499
REVENUES OVER (UNDER)
EXPENDITURES (4,013,589) 2,105,422 (2,933,987)
OTHER FINANCING
SOURCES (USES):
Transfers in - 7,735 (7,735) Transfers out (120,000) (124,725) 4,725
Total other financing sources (uses) (120,000) (116,990) (3,010) NET CHANGE IN FUND BALANCE (4,133,589) 1,988,432 (2,936,997) Fund balance, beginning of year 4,648,626 4,648,626 - Fund balance, end of year 515,037 $ 6,637,058 $ (2,936,997) $
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, 2023
76 273
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Intergovernmental 121,000 $ 92,310 $ (28,690) $ Investment earnings (loss) 1,000 20,803 19,803 Total revenues 122,000 113,113 (8,887)
EXPENDITURES
Current:
General government 10,000 9,231 769 Capital outlay 104,444
- 104,444
Total expenditures 114,444 9,231 105,213 NET CHANGE IN FUND BALANCE 7,556 103,882 (114,100) Fund balance, beginning of year 513,467 513,467 - Fund balance, end of year 521,023 $ 617,349 $ (114,100) $
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, 2023
77 274
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Assessments 1,017,195 $ 1,106,751 $ 89,556 $
Investment earnings (loss) 17,572 159,962 142,390 Other - 184,935 184,935
Total revenues 1,034,767 1,451,648 416,881
EXPENDITURES
Current:
Public works 948,026 780,222 167,804
Total expenditures 948,026 780,222 167,804
REVENUES OVER (UNDER)
EXPENDITURES 86,741 671,426 249,077
OTHER FINANCING
SOURCES (USES):
Transfers in 23,790 23,790 -
Transfers out (11,295) (4,305) (6,990)
Total other financing sources (uses) 12,495 19,485 (6,990) NET CHANGE IN FUND BALANCE 99,236 690,911 242,087 Fund balance, beginning of year 4,039,186 4,039,186 - Fund balance, end of year 4,138,422 $ 4,730,097 $ 242,087 $
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, 2023
78 275
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Assessments 3,400 $ 3,355 $ (45) $
Investment earnings (loss) 8 561 553 Total revenues 3,408 3,916 508
EXPENDITURES
Current:
Public works 5,525 4,957 568
Total expenditures 5,525 4,957 568
REVENUES OVER (UNDER)
EXPENDITURES (2,117) (1,041) (60)
OTHER FINANCING
SOURCES (USES):
Transfers in 7,580 7,580 -
Transfers out (140) (140) -
Total other financing sources (uses) 7,440 7,440 - NET CHANGE IN FUND BALANCE 5,323 6,399 (60) Fund balance, beginning of year 13,403 13,403 - Fund balance, end of year 18,726 $ 19,802 $ (60) $
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, 2023
79 276
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Assessments - $ 51,416$ 51,416 $
Investment earnings (loss) 30,000 265,627 235,627 Total revenues 30,000 317,043 287,043
EXPENDITURES
Current:
Public works - 184 (184) Capital outlay 5,000,000
- 5,000,000
Total expenditures 5,000,000 184 4,999,816 NET CHANGE IN FUND BALANCE (4,970,000) 316,859 (4,712,773) Fund balance, beginning of year 6,670,034 6,670,034 - Fund balance, end of year 1,700,034 $ 6,986,893 $ (4,712,773) $
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, 2023
80 277
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Intergovernmental 165,000 $ - $ (165,000)$ Total revenues 165,000 - (165,000)
EXPENDITURES
Capital outlay 196,130 - 196,130 Total expenditures 196,130 - 196,130 NET CHANGE IN FUND BALANCE (31,130) - (361,130) Fund balance (deficit), beginning of year (7) (7) - Fund balance (deficit), end of year (31,137) $ (7) $ (361,130)$
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, 2023
81 278
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Intergovernmental 7,793,400 $ 509,183 $ (7,284,217)$ Total revenues 7,793,400 509,183 (7,284,217)
EXPENDITURES
Current:
General government 264,012 65,012 199,000 Capital outlay 19,191,772 395,725 18,796,047 Debt service:
Principal - 5,998 (5,998) Interest -
6 1 (61)
Total expenditures 19,455,784 466,796 18,988,988
REVENUES OVER (UNDER)
EXPENDITURES (11,662,384) 42,387 (26,273,205)
OTHER FINANCING
SOURCES (USES):
Transfers in - 11,502 (11,502) Transfers out - (12,900) 12,900
Total other financing sources (uses) - (1,398) 1,398 NET CHANGE IN FUND BALANCE (11,662,384) 40,989 (26,271,807) Fund balance (deficit), beginning of year (14,785) (14,785) - Fund balance (deficit), end of year (11,677,169) $ 26,204 $ (26,271,807)$
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, 2023
82 279
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Development impact fees 690,000 $ 619,301 $ (70,699) $ Investment earnings (loss) 8,000 65,993 57,993 Total revenues 698,000 685,294 (12,706)
EXPENDITURES
Capital outlay 490,000 490,000 -
Total expenditures 490,000 490,000 -
REVENUES OVER (UNDER)
EXPENDITURES 208,000 195,294 (12,706)
OTHER FINANCING
SOURCES (USES):
Transfers out (8,350) (8,350) -
Total other financing sources (uses) (8,350) (8,350) - NET CHANGE IN FUND BALANCE 199,650 186,944 (12,706) Fund balance, beginning of year 1,552,946 1,552,946 - Fund balance, end of year 1,752,596 $ 1,739,890 $ (12,706) $
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, 2023
83 280
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Other 1,400 $ 1,444 $ 4 4 $
Total revenues 1,400 1,444 4 4 NET CHANGE IN FUND BALANCE 1,400 1,444 44 Fund balance, beginning of year 2,703 2,703 - Fund balance, end of year 4,103 $ 4,147 $ 4 4 $
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, 2023
84 281
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Intergovernmental 4,050,000 $ - $ (4,050,000)$ Total revenues 4,050,000 - (4,050,000)
EXPENDITURES
Current:
Public works - 24,099 (24,099) Capital outlay 5,600,000
133,894 5,466,106
Total expenditures 5,600,000 157,993 5,442,007
REVENUES OVER (UNDER)
EXPENDITURES (1,550,000) (157,993) (9,492,007)
OTHER FINANCING
SOURCES (USES):
Transfers in - 13,818 (13,818)
Total other financing sources (uses) - 13,818 (13,818) NET CHANGE IN FUND BALANCE (1,550,000) (144,175) (9,505,825) Fund balance (deficit), beginning of year (625,167) (625,167) - Fund balance (deficit), end of year (2,175,167) $ (769,342) $ (9,505,825)$
CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Transportation Uniform Mitigation Fee (TUMF) Special Revenue Fund For the Year Ended June 30, 2023
85 282
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Investment earnings 8,000 $ 36,046 $ 28,046 $ Total revenues 8,000 36,046 28,046
EXPENDITURES
Capital outlay 300,000 - 300,000 Total expenditures 300,000 - 300,000 NET CHANGE IN FUND BALANCE (292,000) 36,046 (271,954) Fund balance, beginning of year 885,689 885,689 - Fund balance, end of year 593,689 $ 921,735 $ (271,954) $
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, 2023
86 283
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Intergovernmental - $ 144,110$ 144,110 $ Total revenues - 144,110 144,110
EXPENDITURES
Current:
Public works 232,500 14,584 217,916 Total expenditures 232,500 14,584 217,916
REVENUES OVER (UNDER)
EXPENDITURES (232,500) 129,526 (73,806)
OTHER FINANCING
SOURCES (USES):
Transfers in - 2,556 (2,556) Transfers out - (29,765) 29,765
Total other financing sources (uses) - (27,209) 27,209 NET CHANGE IN FUND BALANCE (232,500) 102,317 (46,597) Fund balance (deficit), beginning of year (102,318) (102,318) - Fund balance (deficit), end of year (334,818) $ (1) $ (46,597)$
CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Transportation Development Act (TDA) Special Revenue Fund For the Year Ended June 30, 2023
87 284
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
REVENUES
Investment earnings (loss) 800 $ - $ (800)$ Total revenues 800 - (800)
EXPENDITURES
Current:
Public works 567,500 280,539 286,961 Capital outlay 13,787,365 2,978,830 10,808,535 Total expenditures 14,354,865 3,259,369 11,095,496
REVENUES OVER (UNDER)
EXPENDITURES (14,354,065) (3,259,369) (11,096,296)
OTHER FINANCING
SOURCES (USES):
Transfers in 12,720,759 12,720,759 -
Transfers out - (13,818) 13,818
Total other financing sources (uses) 12,720,759 12,706,941 13,818 NET CHANGE IN FUND BALANCE (1,633,306) 9,447,572 (11,082,478) Fund balance, beginning of year 2,908,958 2,908,958 - Fund balance, end of year 1,275,652 $ 12,356,530$ (11,082,478)$
CITY OF EASTVALE
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Capital Projects Fund
For the Year Ended June 30, 2023
88 285
STATISTICAL
SECTION
286
STATISTICAL SECTION
89 287
90 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 .................................................................................................... 91 Revenue Capacity: these schedules contain trend information to help the reader assesses the factors affecting the City’s most significant revenue source, property tax ...................................................................................................................................... 99 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 ................................. 104 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 .............................................................................. 109 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 ................................ 113 288
2014 2015 2016 2017
Governmental activities
Net Investment in Capital Assets 210,630$ 221,512 $ 228,474 $ 240,849 $ Restricted 1,699 20,399 22,945 23,718 Unrestricted 11,601 15,214 18,624 21,957 Total governmental activities net position 223,930$ 257,125 $ 270,043 $ 286,524 $ Notes:
Source: City of Eastvale Finance Department
Fiscal Year
Last Ten Fiscal Years
(accrual basis of accounting)
(amount expressed in thousands)
City of Eastvale
Net Position by Component
91 289
2018 2019 2020 2021 2022 2023
240,610$ 244,370 $ 242,422 $ 248,213 $ 250,346 $ 249,480 $ 30,842 27,279 33,310 35,396 39,662 55,856 31,424 35,577 37,979 61,691 96,368 128,524 302,876$ 307,226 $ 313,711 $ 345,300 $ 386,375 $ 433,859 $ City of Eastvale
Net Position by Component ‐ Continued
Last Ten Fiscal Years
Fiscal Year
(accrual basis of accounting)
(amount expressed in thousands)
92 290
2014 2015 2016 2017
Expenses
Governmental activities:
General government 1,801 $ 1,917 $ 2,367 $ 2,126 $ Public Safety 8,889 9,685 10,669 12,177 Public works 6,752 7,604 7,817 8,373 Community development 2,309 2,620 2,903 3,460 Revenue neutrality 462 393 444 456 Interest expense 11 ‐ ‐ ‐ Total governmental activities expenses 20,224 22,219 24,200 26,592 Total primary government expenses 20,224 $ 22,219 $ 24,200 $ 26,592 $ Program Revenues
Governmental activities:
Charges for services
General government 55 5 ‐ 2 Public Safety 479 5,722 6,002 6,512 Public Works ‐ 217 227 229 Community development 3,138 3,516 3,303 3,686 Operating contributions and grants 4,338 3,293 3,436 2,944 Capital contributions and grants 22,177 17,076 11,703 17,145 Total primary government program revenues 30,187 29,829 24,671 30,518 Total primary government program revenues 30,187 $ 29,829 $ 24,671 $ 30,518 $ Total primary government net expense 9,963 $ 7,610 $ 471 $ 3,926$ General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property tax 6,285 $ 2,193 $ 2,812 $ 2,631 $ Franchise tax 1,419 1,616 1,638 1,420 Sales tax 6,988 6,692 7,289
7,693
Other taxes 355 343 390 451 Motor Vehicle in Lieu tax 29 27 24 28 Investment earnings 54 73 294 324 Other 13 4 ‐ 8 Total governmental activities 15,143 10,948 12,447 12,555 Total primary governmental activities 15,143 $ 10,948 $ 12,447 $ 12,555 $ Total Change in Net Position 25,106$ 18,558 $ 12,918 $ 16,481 $ Notes:
(1) Beginning in fiscal year 2014‐15, property taxes levied for fire services were reclassified from general revenu Source: City of Eastvale Finance Department
City of Eastvale
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amount expressed in thousands)
93 291
2018 2019 2020 2021 2022 2023
2,605$ 8,224 $ 5,283 $ 10,401 $ 9,989 $ 6,599 $ 13,457 13,429 16,903 16,395 17,843 20,096 9,211 10,491 14,014 7,715 9,292 11,049 3,867 4,258 4,603 4,117 5,229 5,382 468 482 498 505 524 545 ‐ ‐ 433 238 306 4 29,608 36,884 41,734 39,371 43,182 43,675 29,608$ 36,884 $ 41,734 $ 39,371 $ 43,182 $ 43,675 $ 19 42 95 92 100 120 6,899 7,512 7,608 8,022 8,831 8,895 229 978 2,533 995 643 948 3,638 3,229 3,125 2,839 1,840 1,674 5,631 6,676 5,845 5,921 12,021 6,714 6,036 3,217 4,529 9,191 4,433 6,074 22,452 21,654 23,735 27,060 27,868 24,424 22,452$ 21,654 $ 23,735 $ 27,060 $ 27,868 $ 24,424 $ (7,156)$ (15,230)$ (17,999) $ (12,311) $ (15,314) $ (19,251) $ 2,606$ 2,549 $ 2,910 $ 3,024 $ 3,178 $ 3,510 $ 1,552 1,545 1,645 5,938 1,972 6,557 9,078 9,610 10,349 28,120 44,710 47,356 362 346 313 442 459 495 4,355 4,700 5,006 5,247 5,526 5,902 580 802 3,015 92 (103) 2,802 18 28 1,245 173 701 114 18,551 19,580 24,483 43,036 56,442 66,736 18,551$ 19,580 $ 24,483 $ 43,036 $ 56,442 $ 66,736 $ 11,395$ 4,350 $ 6,484 $ 30,725 $ 41,128 $ 47,485 $ ue to program revenue as charges for services within the public safety function.
Fiscal Year
(amount expressed in thousands)
City of Eastvale
Changes in Net Position ‐ Continued
Last Ten Fiscal Years
(accrual basis of accounting)
94 292
2014 2015 2016 2017
General fund
Nonspendable ‐ $ ‐ $ 49 $ 51 $ Restricted 5,272 6,918 6,969 5,925 Committed 7,179 7,179 1,000 3,000 Unassigned 4,323 7,917 17,749 18,715 Total general fund 16,774 22,014 25,767 27,691 All other governmental funds
Nonspendable ‐ $ ‐ $ ‐ $ ‐ $ Restricted 11,427 13,451 15,508 17,535
Unassigned ‐ (39) (383) (190) Total all other governmental funds 11,427 13,412 15,125 17,345 Total fund balances of governmental funds 28,201$ 35,426 $ 40,892 $ 45,036 $ 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)
95 293
2018 2019 2020 2021 2022 2023
65$ 19 $ 94 $ 92 $ 260 $ ‐ $ 7,070 8,323 10,269 11,445 14,473 16,876 3,000 3,000 3,000 30,745 78,955 109,901 27,935 30,929 34,622 32,810 16,869 17,493 38,070 42,271 47,985 75,092 110,557 144,270 ‐$ ‐ $ ‐ $ 12 $ 18 $ ‐ $ 23,772 18,957 22,967 22,163 25,189 38,931 (1,165) (282) ‐ (456) (760) 561 22,607 18,675 22,967 21,719 24,447 39,492 60,677$ 60,946 $ 70,952 $ 96,812 $ 135,004 $ 183,761 $ City of Eastvale
Fund Balances of Governmental Funds ‐ Continued
Last Ten Fiscal Years
(accrual basis of accounting)
(amount expressed in thousands)
Fiscal Year
96 294
2014 2015 2016 2017
Revenues
Taxes:
Property tax 6,140 $ 7,163 $ 8,141 $ 8,171 $ Franchise tax 1,419 1,616 1,637 1,420 Sales tax 6,987 6,692 7,289 7,693 Other taxes 355 343 390 451 Licenses, permits and fees 3,360 3,645 3,454 3,801 Fines and forfeitures 303 619 524 696 Intergovernmental 4,141 3,227 2,972 3,146 Special use fees 941 747 999 745 Assessments 208 215 227 229 Investment earnings 78 108 294 324 Other 176 52 50 47 Total revenues 24,108 24,427 25,977 26,723 Expenditures
Current:
General government 1,735 $ 1,911 $ 2,077 $ 2,048 $ Public safety 9,503 9,621 10,030 11,630 Public Works 976 795 982 863 Community development 2,309 2,621 2,903 3,460 Revenue neutrality 462 393 444 456 Debt service:
Principal 1,240 ‐ ‐ ‐ Interest 11 ‐ ‐ ‐ Cost of Issuance ‐ ‐ ‐ ‐
Capital outlay 249 1,498 4,074 4,123 Total expenditures 16,485 16,839 20,510 22,580 Excess of revenues over expenditures 7,623 7,588 5,467 4,143 Other financing sources
Proceeds of long‐term debt ‐ ‐ ‐ ‐ Leases (as lessee)
Total other financing sources ‐ ‐ ‐ ‐ Net change in fund balance 7,623 $ 7,588 $ 5,467 $ 4,143 $ 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)
97 295
2018 2019 2020 2021 2022 2023
8,930$ 11,020$ 11,435 $ 12,162 $ 12,989 $ 13,449 $ 1,552 1,545 1,645 5,938 1,972 6,557 9,078 9,610 10,349 28,120 44,710 47,356 379 347 313 442 459 495 3,805 3,579 3,390 3,040 2,428 2,425 743 847 652 595 553 773 7,664 9,661 11,855 9,915 17,728 12,195 2,830 313 1,129 655 271 619 229 280 324 423 2,805 1,162 580 802 3,015 92 (421) 3,763 53 62 1,984 238 843 392 35,843 38,066 46,091 61,620 84,336 89,186 2,545$ 7,520 $ 5,249 $ 6,552 $ 9,602 $ 6,013 $ 13,148 13,061 16,467 15,907 17,560 19,870 875 1,506 3,139 2,240 2,257 2,404 3,867 4,258 4,603 4,117 5,269 5,421 468 482 498 505 524 545 ‐
‐ ‐ 56 237 4,680 503 ‐ ‐ 413 239 125 4 ‐ 683 ‐
4,298 14,777 5,659 6,898 6,127 6,577 25,201 42,287 36,084 36,695 46,144 41,338 10,642 (4,221) 10,007 24,925 38,192 47,848 ‐ 4,492 ‐ ‐ ‐ ‐ 909
‐ 4,492 ‐ ‐ ‐ 909 10,642$ 271 $ 10,007$ 24,925 $ 38,192 $ 48,758 $
0.0% 0.0% 1.4% 1.7% 12.0% 1.5%
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)
98 296
Fiscal
Year
Residential
Property
Commercial
Property
Industrial
Property Other
Total Assessed
valuation
Less Tax
Exempt
Property
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 ‐ 2023 9,677,094 488,326 1,447,137 658,297 12,270,854 ‐ 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)
99 297
Total Taxable
Assessed Value
District Tax
(1) Rate
(City)
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
12,270,854 0.09597
City of Eastvale
Assessed Value and Estimated Actual Value of Taxable Property ‐ Continued Last Ten Fiscal Years
(amount expressed in thousands)
100 298
City of Eastvale
Direct and Overlapping Property Tax Rates
Last Nine Fiscal Years
(rate per $100 of assessed value)
Fiscal Year
Basic County,
City, and School
Levy
Community
College District Water District School District Total (1) 2014 1.00000 0.01768 0.00350 0.11758 1.13876
2015 1.00000 0.01791 0.00350 0.11092 1.13233
2016 1.00000 0.01725 0.00350 0.18908 1.20983
2017 1.00000 0.01649 0.00350 0.19695 1.21694
2018 1.00000 0.01616 0.00350 0.17946 1.19912
2019 1.00000 0.01478 0.00350 0.17751 1.19579
2020 1.00000 0.01476 0.00350 0.19579 1.21405
2021 1.00000 0.01470 0.00350 0.20038 1.21858
2022 1.00000 0.01470 0.00350 0.19988 1.21808
2023 1.00000 0.01470 0.00350 0.18535 1.20355
Notes:
Source: County of Riverside, Auditor‐Controller/HdL, Coren & Cone City Direct Rates
(1) Total direct rate is the weighted average of all individual direct rates applied by the City of Eastvale. This amount includes the city's Share of 1% Levy Per Prop 13 plus community college, water and school districts.
101 299
City of Eastvale
Principal Property Tax Payers
Current Fiscal Year and Ten Years Ago
Taxpayer
Taxable Assessed
Value
Percentage of
Total Taxable
Assessed
Value
Taxable
Assessed Value
Percentage of
Total Taxable
Assessed
Value
Tarpon Property Ownership 2 LLC 274,519,656$ 2.25% 85,000,000 1.28% Amazon Com Services LLC 216,183,273 1.77% ‐ ‐ BPP Pacific Industrial California Reit 166,510,751 1.36% ‐ ‐ Homecoming at Eastvale 148,939,305 1.22% 127,488,589 1.91% DPIF3 California 27 Archibald Avenue 134,585,157 1.10% ‐ ‐ First Industrial LP 109,922,414 0.90% ‐ ‐ Eastvale Gateway 101,427,125 0.83% 87,227,140 1.31% AMB Institutional Alliance Fund 98,315,862 0.80% 60,096,828 0.90% 3100 Milliken Industrial LLC 91,978,120 0.75% ‐ ‐ Teachers Insurance and Annuity Assoc ‐ ‐ ‐ ‐ Rexford Industrial‐Eastvale 75,783,073 0.62% ‐ ‐ LBA Riv Company IV ‐ ‐ ‐ ‐ Homecoming III at Eastvale ‐ ‐ ‐ ‐ Homecoming III at Eastvale ‐ ‐ ‐ ‐ Prologis California ‐ ‐ 42,330,000 0.64% Eastvale Gateway II ‐ ‐ ‐ ‐ Hamner Park Associates ‐ ‐ 36,061,117 0.54% J W Mitchell Company ‐ ‐ 32,815,491 0.49% WW Grainer Inc. ‐ ‐ ‐ ‐ LBA of CPT Industrial Company ‐ ‐ 88,694,098 1.33% Walmart Real Estate ‐ ‐ 26,339,116 0.40% Mira Loma SPF ‐ ‐ 26,236,000 0.39% Total 1,418,164,736 $ 11.60% 612,288,379 $ 9.19%
Notes:
Source: HdL, Coren & Cone
2023 2014
102 300
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
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%
2023 10,421,706 10,338,784 99.20% 29,161 10,367,945 99.48% 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. 103 301
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
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% ‐ 2023 ‐ ‐ ‐ ‐ 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
104 302
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
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% ‐ 2023 ‐ ‐ ‐ ‐ 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
105 303
City of Eastvale
Direct and Overlapping Bonded Debt
As of June 30, 2023
2022‐23 Assessed Valuation
Overlapping Tax and Assessment Debt
Outstanding Debt
6/30/2023
Percent
Applicable (1)
Amount
Applicable to City
6/30/2023
Metropolitan Water District 19,215,000 $ 0.336% 64,562 $ Riverside Community College District 291,274,397 8.788 25,597,194 Corona‐Norco Unified School District 484,011,917 22.246 107,673,291 Jurupa‐Unified School District 146,547,972 14.095 20,655,937 Corona‐Norco Unified School District Comm Facilities District 67 ,977,495 91.62‐100 65,553,580 Jurupa Community Services District Comm Facilities District 268 ,975,000 34.982‐100 266,445,800 Total Overlapping Tax and Assessment Debt 485,990,364 $ Direct and Overlapping General Fund Debt
Riverside County General Fund Obligations 686,776,829 $ 3.375% 23,178,718 $ Riverside County Pension Obligation Bonds 748,540,000 3.375 25,263,225 Riverside City Community College District Certificates of Participa 24,550,000 8.788 2,157,454 Corona‐Norco Unified School District General Fund Obligations 19 ,421,607 22.246 4,320,531 Jurupa Unified School District Certificates of Participation 47, 341,612 14.095 6,672,800 City of Eastvale 0 100 0
Western Municipal Water District General Fund Obligations 4,075, 058 10.496 427,718 Total Direct and Overlapping General Fund Debt 62,020,446 $ Overlapping Tax Increment Debt (Successor Agency)
275,777,288.00 7.506‐17.183% 35,082,281.00
Total Direct Debt ‐$
Total Gross Overlapping Debt 583,093,091 $
Total Net Overlapping Debt 583,093,091$
Gross Combined Total Debt 583,093,091$
Net Combined Total Debt 583,093,091$
Ratios to 2022‐23 Assessed Valuation
Total Overlapping Tax and Assessment Debt 3.98%
Total Direct Debt 0.00%
Gross Combined Total Debt 4.77%
Net Combined Total Debt 4.77%
Rations to Redevelopment Successor Agency Incremental Valuation ($1,427,092,340) Total Overlapping Tax Increment Debt 2.46%
Notes:
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non‐bonded capital lease oblig Source: Avenu Insights
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.
Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. 12,219,914,735$
106 304
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
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% 2023 12,270,854 1,840,628 ‐ 1,840,628 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. 107 305
City of Eastvale
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscsal
Year Revenue
Less
Operating
Expenses
Net Available
Revenue Principal Interest Coverage
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
2023 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
108 306
City of Eastvale
Demographic and Economic Status
Last Ten Fiscal Years
(1) (2) (2) (3) (4)
Calendar
Year Population
Personal Income
in Thousands
Per Capital
Personal Income Median Age
Unemployment
Rate
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% 2023 69,514 2,719,529 39,122 34.2 2.9% 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
109 307
City of Eastvale
Principal Employers
Current Fiscal Year (4)
Number of Percent of Total
Business Name Employees Employment (%)
Amazon Fulfillment Center 4,918 14.21%
Walmart Distribution** 952 2.75%
Corona‐Norco USD* 755 2.18%
Costco 333 0.96%
Ingram Micro 303 0.88%
Grainger Distribution Center 250 0.72%
Home Depot 199 0.58%
Komar Distribution Services 161 0.47%
Albertson 100 0.29%
Kohls Department Stores 88 0.25%
8,059 23.29%
Total Top 10 Employers
Total City Labor Force
(1) 34,600
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
2022‐23
110 308
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
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 2023 3,510 47,356 5,902 ‐ ‐ 6,557 495 63,820 Source: City of Eastvale Finance Department
111 309
City of Eastvale
Taxable Sales by Category (in thousands of dollars)
Last Ten Calendar Years
Calendar
Year
Other Retail
Stores
All Other
Outlets Total
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
2023 815,329 3,897,359 4,712,688
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.
112 310
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
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
2023 23.50 0.00 10.00 9.50 15.50 58.50
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. 113 311
City of Eastvale
Operating Indicators
by Function
Last Ten Fiscal Years
2014 2015 2016 2017
Finance
Business registration 1,061 1,837 1,297 1,632 applications / renewals
Building and Safety
Construction valuation 168,641,107$ 184,550,926 $ 205,136,969 $ 230,282,478 $ Building permits issued 2,168 2,481 1,677 1,584 Public Safety
Total arrests 953 612 571 621 Calls for service 17,630 27,579 28,717 31,875 Notes:
Source: City of Eastvale, Various Departments
Fiscal Year
114 312
City of Eastvale
Operating Indicators ‐ Continued
by Function
Last Ten Fiscal Years
Fiscal Year
2018 2019 2020 2021 2022 2023
2,083 1,625 1,124 2,396 2,490 2,846 75,756,134$ 154,206,189 $ 188,393,503 $ 434,097,814 $ 121,449,018 $ 43,352,977 $ 1,196 1,488 1,416 4,138 1,968 2,031 488 532 510 475 547 661 31,204 25,797 24,211 24,171 25,906 26,634 115 313
City of Eastvale
Capital Asset Statistics
by Function
Last Ten Fiscal Years
Fiscal Year Street (miles) 1
Traffic Signalized
Intersections2 Bridges3 Buildings4
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
2023 414 72 3 4
Notes:
Source: City of Eastvale Public Works Department
116 314
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315
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, 2023. The City’s management is responsible for the app ropriations limit calculation worksheets.
The City has agreed to and ack nowledged that the procedures per formed are appropriate for the intended purpos e 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 3
rd 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 t he City worksheets.
Results: No exceptions were noted as a result of our procedures. 316
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 re view engagement, the objective of which would be the expression of a n opinion or conclusion, respectively, on meeting the requirements of the Co nstitution 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 o ther 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 t he 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 20, 2023
Gruber and Lopez, Inc.
317
AGENDA STAFF REPORT
City Council Meeting
CITY COUNCIL BUSINESS
Agenda Item No. 13.2
February 14, 2024
Hamner Place City Parcel Development and Citrus Street Property Development
Prepared By:
Gustavo Gonzalez, Community Development Director
Recommended Action(s)
Staff recommends that the City Council receive a presentaon on alternaves to develop the city- owned parcel at Hamner Place and the city-owned Citrus Street property and provide input and direction to staff on preferred alternatives.
Summary
At the January 10, 2024 City Council meeng, City Manager Orme facilitated a discussion on city- owned properes and the City Council’s future desired use of these properes, including the Hamner Place city-owned parcel and the Citrus Street property. Staff offers several alternaves for development of both properties and seeks City Council input and direction on preferred alternatives.
Background
Formally known as the Polopolus property, the city parcel located at Hamner Place was transferred to the City of Eastvale by way of a Real Property Exchange Agreement with Lewis Land Developers (Lewis) in April 2018. At that me, the city had not idenfied a specific site for its future civic center locaon. The city parcel located at Hamner Place was considered a potenal locaon for a future civic center, library, and other ancillary public uses.
In November 2021, the City Council designated the Leal property as the future civic center site locaon for a city hall, public library, police staon, and third fire staon. The city parcel located at Hamner Place is no longer a potential site for the city’s future civic center. 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
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In October 2022, the City Council reaffirmed the city parcel located at Hamner Place as necessary for future City use and provided feedback on conceptual plans for the development of the city parcel (
Attachment 1
).
Hamner Place City Parcel Repurchase Rights
Lewis sold the city parcel to the city to facilitate development of a civic center that would be compable with the Hamner Place retail center and to allow supporve private economic development. The adopted covenants authorized the city to develop one hotel and one restaurant on the city property, in addion to the future civic uses. Any deviaons from these permi@ed uses required the prior wri@en approval of Lewis. The exchange agreement grants Lewis the right to repurchase the city parcel under the following scenarios:
1 .
The city does not develop the site with the intended civic uses and decides to sell all or part of the property to a third party;
2 .
The city develops the site with the intended civic uses but receives a third party offer to acquire any remaining property. Exempons under this scenario includes a private school, museum, library, playhouse, concert hall, or other similar civic uses that benefit the public; or 3 .
The city fails to start construcon within seven (7) years aDer the close of escrow. The close of escrow was on January 28, 2019, and the right to repurchase would begin on January 28, 2026.
Lewis is not required to repurchase the property from the City under any of these scenarios. If Lewis does not exercise it's repurchase right, then the City may proceed with a sale to a third party or a different development of the site.
Citrus Property Development
At the January 10, 2024 City Council meeng, City Manager Orme facilitated a discussion on city- owned properes and the City Council’s future desired use of these properes, including the Citrus property which currently serves as office space for city staff. With the ancipated development of the future civic center at the Leal property and consolidaon of city staff at one locaon, the City Council expressed a desire to develop the Citrus property with community serving uses such as an events center, sports facilities, and other recreational uses.
In response to the feedback received by the City Council on the Citrus property, staff prepared a conceptual plan for consideraon by the Council (
A3achment 2
). The conceptual plan includes the
following uses:
Two-story community center (25,000 square feet) to serve seniors, youth, and other community groups
Enclosed aquatics center (15,000 square feet) with office, snack bar, and locker facilities Repurposed Citrus house as an events center with open space areas, including a large outdoor amphitheater
Variety of popular active and passive park uses, all connected by paseos and loop trails system Ample parking for all uses accessed via Scholar Way and a new driveway along Citrus Avenue
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Development of the Citrus property in this manner would strategically locate community-serving uses near the schools along Scholar Way, creang a hub of school, recreaonal, and community uses, and minimizing residents’ travel me to aDer-school programs, sporng events, and other recreational activities.
Hamner Place City Parcel Development
Potenal development strategies of the Hamner Place city parcel for City Council consideraon include the following alternatives:
1. Alternate Civic Uses.
The city could choose to develop those civic uses previously considered by the City Council (
Attachment 1
) and present those to Lewis for consideration.
2. Hotel and Restaurant Uses
. One hotel and one restaurant are explicitly authorized by the exchange agreement, and the city could consider these uses in combinaon with the civic uses explored in
Attachment 1
.
3. Solicit Third-Party Offers.
The city could solicit third party offers for the city parcel and present the terms to Lewis for consideraon. The City Council should consider the types of uses it wishes to attract under this alternative based on the following:
Office uses that bring high-paying jobs and would patronize the Hamner Place retail center with a daytime population, such as an institutional headquarters.
Medical uses that serve the medical needs of residents and also bring high-paying jobs and patronage to the Hamner Place retail center, such as a hospital or clinic.
High volume and/or high-priced retail sales that would directly increase retail tax revenue to the city, such as a recreational vehicles dealership.
Specialty retail uses that are desired by the Eastvale community, such as Whole Foods or Trader Joe’s.
Unique entertainment and hospitality uses that offer experiences to residents and visitors, such as large breweries or high-end restaurants.
4. Early Repurchase by Lewis.
The city could offer the property back to Lewis so that Lewis could expand Hamner Place through an early repurchase. Under the early repurchase opon, the city could ask Lewis to recruit a limited subset of desired users, like hotels or high-end restaurants.
Proceeds from the sale of the property could be used to fund development of the Citrus property.
5. No Development Un8l A9er The Repurchase Right Deadline.
The city could do nothing and wait
for Lewis to either exercise its repurchase rights at the expiraon date of January 28, 2026 or let the repurchase right terminate.
Except for Alternaves 4 and 5 above, the city would need to negoate an extension to the exchange agreement with Lewis to ensure ample me for planning, entlement, design, and financing prior to construction.
Surplus Land Act
The Surplus Land Act is a “right of first refusal” law that requires all local agencies to offer surplus land for sale or lease to affordable home developers and certain other enes before selling or 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
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320
leasing the land to any other individual or enty. The CC&R's recorded against the City parcel as a condion of the City's acquision specifically restricts residenal uses on any poron of the City Property. This deed restricon may entle the City to an exempon pursuant to Secon 103(b)(3)(G) of the Surplus Land Act Guidelines which states that "surplus land that is subject to valid legal restricons not imposed by the local agency such as covenants, or other restricons that would make housing prohibited, unless there is a feasible method to sasfactorily migate or avoid the prohibion on the site." However, the Department of Housing and Community Development would have to concur that this exempon fits the property. If HCD does not concur, then the City would have to comply with the procedures of the Surplus Land Act before selling or leasing the property, including a requirement that the City enter into good faith negoaons with any housing sponsor or other entity that submitted a notice of interest in the property to the City for at least 90 days.
Environmental
The review of potenal development on the Hamner Place city parcel and the Citrus property is not considered a project under the California Environmental Quality Act (CEQA) because the acvity does not result in a direct or reasonably foreseeable indirect physical change in the environment.
Strategic Plan Action - Priority Level: N/A
| Target #: N/A
| Goal #: N/A
Not applicable.
Fiscal Impact
There is no fiscal impact associated with reviewing potenal development on the Hamner Place city parcel or the Citrus property. Should the City Council elect to develop either site in the future, staff will need to identy potenal funding sources as the city does not currently have funding available for any of these projects.
Prior City Council/Commission Action
At the April 11, 2018 City Council meeng a Real Property Exchange was approved for the city parcel located at Hamner Place.
At the November 10, 2021 City Council meeng the Leal property was designated as the future civic center site location.
At the October 12, 2022 City Council meeng the City Council reaffirmed the city parcel located at Hamner Place as necessary for future City use and provided feedback on conceptual plans for the development of the city parcel.
At the January 10, 2024 City Council meeng, City Manager Orme facilitated a discussion on city- owned properties and the City Council’s future desired use of city-owned properties.
Attachment(s)
Attachment 1 - Hamner Place Conceptual Plans
Attachment 2 - Citrus Property Conceptual Plan
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Archit@ctwe + P�nning
888.45&.584Q
ktvY.com
Hotel
CITY OF EASTVALE
Veterans Memorial Outdoor Lounge
HAMNER PLACE
EASTVALE, CA # 20220443
SITE SUMMARY
Gross Site Area: +6.5 acre
Slope Area: ! 1.5 acre
Net Site Area: +5 acre
Hotel: 120 KEYS + 4,000 SF Banquet Room
Library ±20,000 SF
Veteran Memorial: ±25,000 SF
Parking Required:
Parks / Recy 20,000 SF (1/300)
Memorial Park: 25,000 SF (1/8000)
Hotel: 120 KEYS (1/KEY)
Banquet Room: (5.5110CX>)
Total
Parking Provided:
Parks and
Recreation
= 66 Spaces
= 4 Spaces
= 120 Spaces
= 22 Spaces
= 212 Spaces
= 218 Spaces
Amphitheater
CONCEPTUAL SITE PLAN - 1
A1.0
JUNE 27, 2022
322
Architecture♦ PlilMing
888.456.5849
kfgy.mm
Outdoor Event / FlexSpace
HAMNER PLACE
EASTVALE. CA # 20220443
CITY OF EASTVALE
SITE SUMMARY
Gross Site Area: +6.5 acre
Slope Area: !1.5 acre
Nel Site Area: +5 aae
Senior Center: t15,000 SF
Flex Space/
Outdoor: ±35,000 SF
Hotel: 120 KEYS• 4,000 SF Banquet Room
Parking Required:
Senior Conlee 15,000 SF (4/1000)
Outdoor Space: 35,000 SF (1/8000)
Hotel: 120 KEYS (1/KEY)
Banquet Room: (5.5/1000)
Total
Parking Provided:
= 60 Spaces
= 5 Spaces
= 120 Spaces
= 22 Spaces
= 207 Spaces
= 207 Spaces
Senior
Center
Fitness Pad
CONCEPTUAL SITE PLAN - 2
JUNE27,2022
Hotel
A1.0
323
An:hit.ctw• • PI.Jt,nning
888.◄5&.5Mg
...,. __
CITY OF EASTVALE
HAMNER PLACE
EASTVALE, CA # 20220443
SITE SUMMARY
Gross Site Area:
Slope Area:
Net Site Area:
Event Center:
Outdoor Event
Community Pool:
Parking Required:
+6.Sacre
!1.sacre
+5 acre
±20,000 SF
t35,000 SF
t35,000 SF
Evant Center: 20,000 SF (4/1000)= 80 Spaces
Outdoor Space: 35,000 (1/8000) 5 Spaces
Swimming Pool: 30,000 (1/250) = 120 Spaces
Total = 205 Spaces
Parking Provided: = 216 Spaces
Eastvale Live/
Recreation
CONCEPTUAL SITE PLAN - 3
JUNE27,2D22
A1.0
324
Architecture + Planning
888.456.5849
ktgy.com EASTVALE, CA # 20240071
CITRUS STREET
FEBRUARY 5, 2024
A1.0
CONCEPUTAL SITE PLAN & IMAGERY
0 100 200
Total Site: + 22 AC
Citrus Street
20-25k Community Center
15k Aquatic Center
Citrus House/Event Center
Outdoor Amphitheatre
Bocce and Pickleball
Accessible Park
Tot Lot and Kids Bike
Course
Dog Park (big and small)
Santa Ana River Education
Pond and Pier
Skate Park
Picnic Area
Paseo and Loop Trailsystem
Fitness Pad and Turf
325