Agenda packet — El Cajon City Council, March 28, 2023

CITY COUNCIL

HOUSING AUTHORITY AND

SUCCESSOR AGENCY TO THE EL CAJON

REDEVELOPMENT AGENCY
Council Chamber
200 Civic Center Way
El Cajon, CA 92020
Agenda
MARCH 28, 2023, 3:00 p.m.

Bill Wells, Mayor Graham Mitchell, City Manager
Steve Goble, Deputy Mayor Vince DiMaggio, Assistant City Manager Gary Kendrick, Councilmember Morgan Foley, City Attorney Michelle Metschel, Councilmember Angela Cortez, City Clerk Phil Ortiz, Councilmember
CALL TO ORDER: Mayor Bill Wells
ROLL CALL: City Clerk Angela Cortez

PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
POSTINGS: The City Clerk posted Orders of Adjournment of the March 14, 2023 and March 21, 2023 Special Joint Meetings, and the Agenda of the March 28, 2023, Meeting in accordance to State Law and City Council/Housing Authority/Successor Agency to the Redevelopment Agency Policy.

PRESENTATIONS:

AGENDA CHANGES:
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CONSENT ITEMS:

Consent Items are routine matters enacted by one motion according to the RECOMMENDATION listed below. With the concurrence of the City Council, a Council Member or person in attendance may request discussion of a Consent Item at this time.

1. Minutes of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meeting

RECOMMENDATION:

That the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency approves Minutes of the March 14, 2023 Meeting and the Special Joint Meeting of March 21, 2023, of the El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency.

2. Warrants
RECOMMENDATION:

That the City Council approves payment of Warrants as submitted by the Finance Department.

3. Approval of Reading Ordinances by Title Only
RECOMMENDATION:

That the City Council approves the reading by title and waives the reading in full of all Ordinances on the Agenda.

4. 2022 State Homeland Security Grant Program Funding

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, authorizing the City Manager or designee to accept and appropriate the FY 2022 State Homeland Security Grant funds in the amount of $70,915, and to execute any grant documents and agreements necessary for the receipt and use of these funds.

5. Reject & Re-Bid of Bid No. 011-22 – Public Safety Center Renewable Energy

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, to:

Consent to the withdrawal of California Solar Integrators, Inc. (CSII) bid submission;

1. Reject all bids and authorize re-bidding of the project; and 2.

Consent to the prohibition of CSII from participating in further bidding on the project re-bid.

3. 6. Declaration of Emergency for Wells Park Restroom Conditions; Authorization to Waive Bidding

RECOMMENDATION:

That the City Council:

Adopts the next Resolution, in order, to establish a Declaration of Emergency and determine that the public interest and necessity require the immediate expenditure of public money to safeguard life, health, or property as required by the Public Contract Code section 22050; and

1. Approves the reallocation of $250,000 from the ARPA Economic Development Expenditure Category to a new ARPA project with the Expenditure Category 6 - Revenue Replacement, that will cover the cost of the emergency work.

2. PUBLIC COMMENT:

At this time, any person may address a matter within the jurisdiction of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency that is not on the Agenda. Comments relating to items on today’s docket are to be taken at the time the item is heard. State law prohibits discussion or action on items not on the Agenda; however, Council, Authority and Agency Members may briefly respond to statements or questions. An item may be placed on a future Agenda.

WRITTEN COMMUNICATIONS:

PUBLIC HEARINGS:

ADMINISTRATIVE REPORTS:

7. Update on Regulating the Use of El Cajon Lodging Establishments – Ensuring Responsible Guests Requirements

RECOMMENDATION:

That the City Council:

Receives the report and provides feedback on various initiatives; and1.

Directs the Planning Commission to amend Zoning Code Chapter 17.212 (Deemed Approved Lodging Establishment) to include “Emergency Housing Placement Program” guidelines and considers changes to “Nuisance Activities and Performance Standards.”

2. 8. Potential County Misuse of Taxpayer Funds in the Various Homeless Housing Placement Programs

RECOMMENDATION:

That the City Council receives the report from staff as an informational item.

9. 2022 General Plan Annual Progress Report

RECOMMENDATION:

That the City Council:

Accepts the 2022 General Plan Annual Progress Report; and1.

Directs staff to forward the report to the Governor's Office of Planning and Research (OPR), the State Department of Housing and Community Development (HCD), and the San Diego Association of Governments (SANDAG).

2. 10. Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2022, and Other Written Communication from the City's Independent Auditor

RECOMMENDATION:

That the City Council receives and accepts the Annual Comprehensive Financial Report and other written communication from the independent accounting firm of Rogers, Anderson, Malody & Scott, LLP, for the fiscal year ended June 30, 2022.

11. Intention to Conduct Appraisal of Travelodge at 425 W. Main Street for Possible Acquisition

RECOMMENDATION:

No action is required by the City Council. This is provided as an informational item.

COMMISSION REPORTS:

ACTIVITIES REPORTS/COMMENTS OF MAYOR WELLS
SANDAG (San Diego Association of Governments) Board of Directors.

12. Council Activity Report

ACTIVITIES REPORTS/COMMENTS OF COUNCILMEMBERS:

13. DEPUTY MAYOR STEVE GOBLE
MTS (Metropolitan Transit System Board); East County Advanced Water Purification Joint Powers Authority Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate; SANDAG Public Safety Committee – Alternate.

14. COUNCILMEMBER GARY KENDRICK
METRO Commission/Wastewater JPA; Heartland Communications; Heartland Fire Training JPA.

15. COUNCILMEMBER MICHELLE METSCHEL
Harry Griffen Park Joint Steering Committee; METRO Commission/Wastewater JPA – Alternate; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate.

16. COUNCILMEMBER PHIL ORTIZ
League of California Cities, San Diego Division; East County Economic Development Council; MTS (Metropolitan Transit System Board) – Alternate; East County Advanced Water Purification Joint Powers Authority Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate.

JOINT COUNCILMEMBER REPORTS:

GENERAL INFORMATION ITEMS FOR DISCUSSION:

ORDINANCES: FIRST READING

ORDINANCES: SECOND READING AND ADOPTION

CLOSED SESSIONS:

17. Closed Session - Conference with Labor Negotiators pursuant to Government Code section 54957.6:

Agency Designated Representatives:

Graham Mitchell, City Manager
Vince DiMaggio, Assistant City Manager
Clay Schoen, Director of Finance
Marisol Thorn, Director of Human Resources
Megan Blake, Senior Management Analyst
Employee Organization:

El Cajon Professional Firefighters Association - Local 4603 (ECPFF)

ADJOURNMENT: The Adjourned Regular Joint Meeting of the El Cajon City Council/ El Cajon Housing Authority/Successor Agency to the El Cajon Redevelopment Agency held this 28th day of March 2023, is adjourned to Tuesday, April 11, 2023, at 3:00 p.m.

City Council
Agenda Report
Agenda Item 1.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Angela Cortez, City Clerk
SUBJECT: Minutes of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meeting
RECOMMENDATION:

Attachments
03-14-23DRAFTminutes - 3PM
03-21-23DRAFTminutes - Special Joint Meeting 215PM

Joint Meeting: El Cajon City Council/Housing Authority/ March 14, 2023 Successor Agency to the Redevelopment Agency - 41 - 3:00 p.m.

JOINT MEETING OF THE

EL CAJON CITY COUNCIL/HOUSING

AUTHORITY/SUCCESSOR AGENCY

TO THE EL CAJON

REDEVELOPMENT AGENCY

MINUTES

CITY OF EL CAJON

EL CAJON, CALIFORNIA

March 14, 2023

A Regular Joint Meeting of the El Cajon City Council/Housing Authority /Successor Agency to the El Cajon Redevelopment Agency, held Tuesday, March 14, 2023, was called to order by Mayor/Chair Bill Wells at 3:02 p.m., in the Council Chambers, 200 Civic Center Way, El Cajon, California.

R O L L C A L L
Council/Agencymembers present: Kendrick, and Metschel
Council/Agencymembers absent: Ortiz
Deputy Mayor/Vice Chair present: Goble
Mayor/Chair present: Wells
Other Officers present: Mitchell, City Manager/Executive Director DiMaggio, Assistant City Manager
Foley, City Attorney/General Counsel
Cortez, City Clerk/Secretary

PLEDGE OF ALLEGIANCE TO THE FLAG led by Mayor Wells and MOMENT OF SILENCE.

POSTINGS: The City Clerk posted Orders of Adjournment of the February 28, 2023, meeting and the Agenda of the March 14, 2023, meeting in accordance with State Law and El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Policy.

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Joint Meeting: El Cajon City Council/Housing Authority/ March 14, 2023 Successor Agency to the Redevelopment Agency - 42 - 3:00 p.m.

PRESENTATIONS: None

AGENDA CHANGES: None

CONSENT ITEMS: (1 – 8)

1. Minutes of El Cajon City Council/ Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meetings

Approve Minutes of the February 28 , 20 23, Meeting of the El Cajon City Council/ Housing Authority/Successor Agency to the El Cajon Redevelopment Agency.

2. Warrants

Approve payment of Warrants as submitted by the Finance Department.

3. Approval of Reading Ordinances by Title Only

Approve the reading by title and waive s the reading in full of all Ordinances on the Agenda.

4. Volunteers Workers' Compensation

Adopt Resolution No. 011 -23 declaring that City of El Cajon volunteers be treated as employees for the purpose of Workers’ Compensation benefits.

5. Fiscal Year 2021 -22 El Cajon Housing Authority Annual Report (pursuant to California Health and Safety Code §34176.1)

El Cajon Housing Authority review and accept the Annual Report, substantially in the form as presented, for fiscal year ending June 30, 2022.

6. Community Event – Dinner and a Concert Series

Approve the 2023 “Dinner and a Concert” series, subject to conditions.

Joint Meeting: El Cajon City Council/Housing Authority/ March 14, 2023 Successor Agency to the Redevelopment Agency - 43 - 3:00 p.m.

CONSENT ITEMS: (Continued)

7. Community Event in the Right-of-Way – Cajon Classic Cruise

Approves the use of the public right -of-way for the 2023 “Cajon Classic Cruise” series, subject to conditions.

Item pulled by Deputy Mayor Goble:

8. Procurement & Implementation of Automated License Plate Reader Cameras

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, to enter into an agreement with Flock Group Inc., for an Automated License Plate Reader (ALPR) camera subscription/implementation system in the amount of $114,000, for the initial one-year term and two additional one-year term renewals.

DISCUSSION

Discussion ensued among Council, Staff and Hector Soliman-Valez, Flock Group, Inc.’s Representative, concerning the following:
 New technology would only capture the back of vehicles;  Footage only accessible to the Police Department;
 No audio with footage;
 Proactive approach to prevent stolen vehicles and to assist with Amber Alerts; and
 ALPR is a one-year pilot program.

Adopt Resolution No. 012 -23 to enter into an agreement with Flock Group Inc., for an Automated License Plate Reader (ALPR) camera subscription/implementation system in the amount of $114,000, for the initial one-year term and two additional one-year term renewals.

MOTION BY GOBLE, SECOND BY METSCHEL, to APPROVE Consent Items 1 to 8.

MOTION CARRIED BY UNANIMOUS VOTE
OF THOSE PRESENT (ORTIZ – Absent).

PUBLIC COMMENT:

Kenneth Kestner requested to speak to Chief of Police Moulton.

WRITTEN COMMUNICATIONS: None

Joint Meeting: El Cajon City Council/Housing Authority/ March 14, 2023 Successor Agency to the Redevelopment Agency - 44 - 3:00 p.m.

PUBLIC HEARINGS:

9. Seventh Amendment to the FY2019 -20 and Third Amendment to the FY2021 -22 One Year Action Plans

RECOMMENDATION:

That the City Council:

1. Opens the public hearing and accepts testimony for the proposed Seventh Amendment to the FY2019 -20 and Third Amendment to the FY2021 -22 One - Year Action Plans;

2. Closes the Public Hearing; and

3. Adopts the next Resolution, in order, amending the FY 2019 -20 and FY 2021-22 One Year Action Plans to:
a) Approve and re -allocate $178,000 in available CDBG -CV funds, including $165,500 to Home Start and $12,500 to Mama's Kitchen, to carry out COVID-19 related public service programs;
b) Adopt the HOME Investment Partnerships Act American Rescue Plan (HOME-ARP) Allocation Plan; and
c) Approve, appropriate and adopt $2,079,808.40 in HOME -ARP funding; and

4. Make the necessary changes to the One Year Action Plans, authorize the City Manager or designee to execute the funding agreements and any other documentation required and submit all required documentation to the U.S.

Department of Housing and Urban Development (HUD).

DISCUSSION

Housing Manager, Jose Dorado, provided a summary of the Item.

Mayor Wells opened the Public Hearing.

No public comment was received.

Discussion ensued among Council and Staff in regards to future low -income rental properties.

MOTION BY WELLS, SECOND BY METSCHEL, to CLOSE the Public Hearing.

MOTION CARRIED BY UNANIMOUS VOTE
OF THOSE PRESENT (ORTIZ – Absent).

Joint Meeting: El Cajon City Council/Housing Authority/ March 14, 2023 Successor Agency to the Redevelopment Agency - 45 - 3:00 p.m.

PUBLIC HEARINGS: (Item 9 – Continued)

MOTION BY GOBLE, SECOND BY METSCHEL, to ADOPT Resolution No. 013-23 to amend the FY 2019 -20 and FY 2021 -22 One Year Action Plans to Approve and re-allocate $178,000 in available CDBG -CV funds, including $165,500 to Home Start and $12,500 to Mama's Kitchen, to carry out COVID -19 related public service programs and ADOPT Resolution No. 014 -23 to Adopt the HOME Investment Partnerships Act American Rescue Plan (HOME-ARP) Allocation Plan.

MOTION CARRIED BY UNANIMOUS VOTE
OF THOSE PRESENT (ORTIZ – Absent).

ADMINISTRATIVE REPORTS:

10. San Diego River Conservancy Board Representative

RECOMMENDATION:

That the City Council ratifies the appointment of Councilmember Phil Ortiz to represent the City of El Cajon on the San Diego River Conservancy Board of Directors.

DISCUSSION

City Manager Mitchell provided information of the Item and introduced Chair of San Diego River Conservancy (SDRC), Ben Clay, and Executive Director, Julia Richards, who provided detailed information about the agency.

No public comment was received.

Discussion ensued among Council and Staff concerning the following:
 Opportunity to have a City representative on the SDRC board; and  The many grants the city has received from SDRC.

MOTION BY WELLS, SECOND BY GOBLE, to RATIFY the appointment of Councilmember Phil Ortiz to represent the City of El Cajon on the San Diego River Conservancy Board of Directors.

MOTION CARRIED BY UNANIMOUS VOTE
OF THOSE PRESENT (ORTIZ – Absent).

Joint Meeting: El Cajon City Council/Housing Authority/ March 14, 2023 Successor Agency to the Redevelopment Agency - 46 - 3:00 p.m.

ADMINISTRATIVE REPORTS: (Continued)

11. Interviews for Gillespie Field Development Council Member

RECOMMENDATION:

That the City Council conducts interviews for the Gillespie Field Development Council.

DISCUSSION

Gillespie Field Development Council
Vacancy: One (1) member vacancy to be appointed by the City Council directly, with a term expiring on 03/18/2027.

Barry Bardack spoke in support of appointing Wheeler North to the Gillespie Field Development Council.

Applicants for the Gillespie Field Development Council:

1. Breslin, Denis

2. North, Wheeler

MOTION BY METSCHEL, SECOND BY WELLS, to APPOINT Wheeler North to the Gillespie Field Development Council, with a term to expire on March 18, 2027.

MOTION CARRIED BY UNANIMOUS VOTE
OF THOSE PRESENT (ORTIZ – Absent).

COMMISSION REPORTS: None

ACTIVITIES REPORTS/COMMENTS OF MAYOR WELLS:

SANDAG (San Diego Association of Governments) Board of Directors.

12. Council Activities Report/Comments

Report as submitted.

Remainder of page intentionally left blank.

Joint Meeting: El Cajon City Council/Housing Authority/ March 14, 2023 Successor Agency to the Redevelopment Agency - 47 - 3:00 p.m.

ACTIVITIES REPORTS OF COUNCILMEMBERS:

Council Activities Report/Comments.

In addition to the submitted Report, Deputy Mayor Goble shared he participated in a Meals on Wheels delivery and shared about the SANDAG retreat he attended.

14. COUNCILMEMBER GARY KENDRICK
METRO Commission/Wastewater JPA; Heartland Communications; Heartland Fire Training JPA.

Council Activities Report/Comments.

Report as submitted.

15. COUNCILMEMBER MICHELLE METSCHEL
Harry Griffe n Park Joint Steering Committee; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate; METRO Commission/Wastewater JPA – Alternate.

Council Activities Report/Comments.

In addition to the submitted Report, Councilmember Metshe ll shared she participated in a Meals on Wheels delivery.

Council Activities Report/Comments.

Report as submitted.

Joint Meeting: El Cajon City Council/Housing Authority/ March 14, 2023 Successor Agency to the Redevelopment Agency - 48 - 3:00 p.m.

JOINT COUNCILMEMBER REPORTS: None

GENERAL INFORMATION ITEMS FOR DISCUSSION: None

ORDINANCES: FIRST READING - None

ORDINANCES: SECOND READING AND ADOPTION - None

CLOSED SESSIONS: None

Adjournment: Mayor Wells adjourned the Regular Joint Meeting of the El Cajon City Council/ Housing Authority/Successor Agency to the El Cajon Redevelopment Agency held this 14th day of March, 20 23, at 4:00 p.m., to Tuesday, March 28, 2023, at 3:00 p.m.

________________________
ANGELA L. CORTEZ, CMC
City Clerk/Secretary

Special Joint Meeting: El Cajon City Council/Housing Authority/ March 21, 2023 Successor Agency to the Redevelopment Agency - 49 - 3:00 p.m.

JOINT SPECIAL MEETING OF THE

EL CAJON CITY COUNCIL/HOUSING

AUTHORITY/SUCCESSOR AGENCY

TO THE EL CAJON

REDEVELOPMENT AGENCY

MINUTES

CITY OF EL CAJON

EL CAJON, CALIFORNIA

March 21, 2023

A Joint Special Meeting of the El Cajon City Council/Housing A uthority/ Successor Agency to the El Cajon Redevelopment Agency, held Tuesday, March 21, 2023 , was called to order by Mayor/Chair Bill Wells at 2:15 p.m., in the Council Chambers, 200 Civic Center Way, El Cajon, California.

R O L L C A L L
Council/Agencymembers present: Kendrick, Metschel, and Ortiz Council/Agencymembers absent: None
Deputy Mayor/Vice Chair present: Goble
Mayor/Chair present: Wells
Other Officers present: Mitchell, City Manager/Executive Director DiMaggio, Assistant City Manager
Foley, City Attorney/General Counsel
Cortez, City Clerk/Secretary

PLEDGE OF ALLEGIANCE TO FLAG led by Mayor Wells and MOMENT OF SILENCE.

The Valley of Opportunity
~ ~ ~
C'o V '-ci ~PorateO

Special Joint Meeting: El Cajon City Council/Housing Authority/ March 21, 2023 Successor Agency to the Redevelopment Agency - 50 - 3:00 p.m.

ADMINISTRATIVE REPORT:

1. Regulating the Use of El Cajon Lodging Establishments for Regional Homeless Solutions

RECOMMENDATION:

That the City Council provide direction to staff.

DISCUSSION

City Manager Mitchell provided detailed information of the Item.

Faithe St. Clair shared her experience living at Mot el 6, where she shares a room with her two teenage children and a friend. Ms. St. Clair also spoke about holding two jobs and not having enough resources to rent permanent housing for her family.

Discussion ensued among Council and Staff concerning the following:
 Options to prevent sex offenders from renting hotel/motel rooms in the city;  Hotel/motel vouchers provided by the County of San Diego;  Re-housing options for people like Ms. St. Clair, who have jobs and need assistance with first and last month deposits;
 Considerations of options provided by staff;
 Consequences for hotels/motels renting to known offenders;  Lack of assistance from the County in dealing with crimes committed by those using vouchers issued by the County; and
 City Council going into c losed session to consider anticipated litigation from measures the city may enforce.

CLOSED SESSION:

2. Closed Session - Conference with Legal Counsel - Anticipated Litigation - Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code section 54956.9: One potential case

MOTION BY WELLS, SECOND BY METSCHEL, to ADJOURN to Closed Session at 3:06 p.m.

MOTION CARRIED BY UNANIMOUS VOTE.

RECONVENED to Open Session at 3:39 p.m.

City Attorney Foley reported the following actions:
 The City Council gave direction to the Legal Counsel.

Special Joint Meeting: El Cajon City Council/Housing Authority/ March 21, 2023 Successor Agency to the Redevelopment Agency - 51 - 3:00 p.m.

CLOSED SESSION: (Continued)

City Manager Mitchell stated that the City Council provided direction to staff to provide a report on how the Planning Commission could revoke the deemed approve d status for motels if violations occur. Staff will also provide more information on the different options suggested to the City Council to Regulate the Use of El Cajon Lodging Establishments for homeless citizens.

Adjournment: The Joint Special Meeting of the El Cajon City Council/El Cajon Housing Authority/Successor Agency to the El Cajon Redevelopment Agency held this 21 st day of March, 2023 was adjourned at 3:41 p.m.

__________________________
ANGELA L. CORTEZ, CMC
City Clerk/Secretary

City Council
Agenda Report
Agenda Item 4.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Bent Koch, Fire Chief
SUBJECT: 2022 State Homeland Security Grant Program Funding RECOMMENDATION:

BACKGROUND:

Since the terrorist attacks of September 11, 2001, there has been a heightened concern over the potential for an act of terrorism to occur again within the borders of the United States. The Federal Government, through the Department of Homeland Security, has provided communities throughout the country with hundreds of millions of dollars for the fight against terrorism.

The FY 2022 State Homeland Security grant funding will be utilized by both the Police and Fire Departments. The Police Department will receive $19,625 in funding to purchase a rising bollard system that can be easily risen and retracted back into the ground which allows for quick access for emergency vehicles, or conversely, immediate access restrictions in an emergency situation. The Fire Department will receive $51,290 to purchase mobile radios. Actual items may change if modification is requested by the departments and approved by the granting agency.

FISCAL IMPACT:

This grant will provide $70,915 to Grant Fund 254 and will not impact the General Fund. No matching funds are required for this grant. These funds will be used by the Police and Fire Departments for the projects listed above or as modified in the grant workbook and approved by the granting agency.

Prepared By: Barbara Watkins, Sr. Management Analyst
Reviewed By: Bent Koch, Fire Chief
Approved By: Graham Mitchell, City Manager
Attachments
Resolution
2022 SHSG Award Letter
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2022 SHSG Award Letter

Page 1 of 1 ends

RESOLUTION NO.____ - 23

RESOLUTION OF THE CITY OF EL CAJON

AUTHORIZING THE ACCEPTANCE OF THE
FY22 STATE HOMELAND SECURITY GRANT PROGRAM (SHSGP)
GRANT OF $70,915 FOR TERRORISM PREPAREDNESS

WHEREAS, the federal government, through the Department of Homeland Security (the "Department"), provides communities throughout the Country with hundreds of millions of dollars for the continuing fight against terrorism; and

WHEREAS, the Department’s FY 2022 State Homeland Security Grant Program ("SHSGP") will provide a total of $70,915 in funds, which will be utilized by both the Police and Fire Departments as follows: ( 1) the Police Department will receive $19,625 in funding to purchase a rising bollard sy stem; and ( 2) the Fire Department will receive $51,290 to purchase mobile radios.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

Section 1. The above recitals are true and correct, and are the findings of the City Council.

Section 2. The City Council hereby authorizes the acceptance and appropriation of the SHSGP funds from the Department in the amount of $70,915 , generally for the purposes set forth herein; provided, however, that the City Manager, or such person designated by the City Manager, is allowed to modify the specific use of SHSGP funds, with the approval of the Department.

Section 3. The City Council hereby further authorizes the City Manager, or such person designated by the City Manager, to execute any grant documents and agreements necessary for the rec eipt and use of these funds on behalf of the City of El Cajon, with such changes as may be approved by the City Manager, or such person designated by the City Manager, and to take all actions and to execute all documents necessary or appropriate to carry out the terms of the SHSGP grant.

03/28/23 CC Agenda
Reso – FY 22 SHSGP Grant 031023

County of San Diego Office of Emergency
Services
5580 Overland Ave., Suite 100
San Diego, CA 92123 -1251
Phone: (858) 565-3490 Fax: (858) 565-3499
Email: [email protected]
2nt2023
City of El Cajon
8054 Allison Avenue
La Mesa, CA 91942
SUBJECT: NOTIFICATION OF FEDERAL FUNDING AWARD
FY 2022 Homeland Security Grant Program (HSGP)
Subaward #2022-0043, Cal OES ID #073-00000
The purpose of this letter is to notify you that the County of San Diego Office of Emergency Services has approved your FY2022 SHSP award in the amount of $70,915 as listed below:

Subrecipient Name:

Subrecipient UEI:

Federal Award ID (FAIN)
Subaward Period of Performance:

Subrecipient Award Amount:

Federal Award Project Description:

Federal Awarding Agency:

CFDA Number:

Research & Development Award (Y/N):

Indirect Cost Rate:

Match Requirement:

City of El Cajon
GUANBKQWK6J3
EMW-2022-SS-00043
09/01/22 to 05/31/24
$70,915
Implementation of homeland security management grant
to support state, local, tribal and territorial efforts to prevent terrorism and other catastrophic events.

US Department of Homeland Security

97.067/Homeland Security Grant Program
No
N/A
N/A
This grant award is subject to all provisions of Uniform Guidance (2 CFR Part 200), which can be accessed at www.ecfr.gov . Non-federal entities that expend $750,000 or more annually in Federal Awards must have a Single Audit performed each year. Please forward a copy of your most current Single Audit report to the contact below.

Subrecipients are to comply with all applicable federal, state, and local Environmental Planning and Historic Preservation (EHP) requirements. Additionally, Aviation/Watercraft requests, Establish/Enhance Emergency Operations Center projects, projects requiring EHP review, and Noncompetitive Procurement requests require additional approvals. Subrecipients must obtain written approval for these activities prior to incurring any costs, in order to be reimbursed for any related costs under this Grant Subaward.

Subrecipients are also required to obtain a Performance Bond prior to the purchase of any equipment item over $250,000, including any Aviation or Watercraft financed with Homeland Security dollars. Performance Bonds must be submitted to the contact below no later than the time of reimbursement.

Please complete and return the attached OES Grant Management Assessment Questionnaire, 2022 Grant Assurances and Signature Authorization Form, current Procurement Policies and Salvage Guidelines . A hard copy of the Grant Assurances and Signature Authorization Forms must be mailed.

Unified San Diego County Emergency Services Organization CARLSBAD-CHULA VISTA-CORONADO-COUNTY OF SAN DIEGO •DEL MAR•EL CAJON•ENCINITAS i,£SCONDIDO•IMPERIAL BEACH~ MESA LEMON GROVE •NATIONAL CITY-OCEANSIDE .POWAY •SAN DIEGO •SAN MARCOS •SANTEE •SOLANA BEACH •VISTA Your performance period ends May 31, 2024. Please submit your reimbursement requests in a timely manner, no later than June 30, 2024.

For further assistance, please contact Val Dama at (858) 289-2883 or [email protected] Sincerely,
Kurian,
Martin
Digilally signed by Kurian,
Martin
Dale: 2023.02.10
08:14:02 -08'00'
Martin Kurian, Departmental Budget Manager
County of San Diego, Office of Emergency Services
Attachments : OES Grant Management Assessment Questionnaire 2022 Grant Assurances
SHSP 2022 Approved FMFW
City Council
Agenda Report
Agenda Item 5.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Mara Romano, Purchasing Agent
SUBJECT: Reject & Re-Bid of Bid No. 011-22 – Public Safety Center Renewable Energy
RECOMMENDATION:

That the City Council adopts the next Resolution, in order, to:

Consent to the withdrawal of California Solar Integrators, Inc. (CSII) bid submission;1.

Reject all bids and authorize re-bidding of the project; and 2.

Consent to the prohibition of CSII from participating in further bidding on the project re-bid.3.

BACKGROUND:

The Public Safety Center Renewable Energy project, which includes furnishing and installing solar photovoltaic panels, carport canopies, and a City-furnished battery energy system at the Public Safety Center, was awarded to CSII on April 12, 2022, by Resolution No. 022-22.

The following is a summary of events that occurred:

May 11, 2022 – City Clerk’s Office U.S. mailed the PW contract to CSII for signatures; May 24, 2022 – CSII requested contract negotiations;
July 6, 2022 – CSII requested a $283,837 increase for solar modules and carport structure;
July 6, 2022 - CSII reported the carport subcontractor would not move forward with the design as specified in the bid documents and suggested an alternate subcontractor; August 12, 2022 – CSII reported that the specified Hanwha Q Cell 495W solar panels are no longer available;
September 13, 2022 – Hanwha 485 solar panels are identified as an equivalent at a higher price;
October 11, 2022 – CSII was notified that the City of El Cajon was no longer moving forward with the project since CSII was unable to perform the work as specified/bid; and March 9, 2023 – CSII submitted a written relief of bid request.

In accordance with the provisions of Public Contract Code section 5105, “A bidder who claims a mistake or who forfeits his or her bid security shall be prohibited from participating in further bidding on the project on which the mistake was claimed or security forfeited.” Staff has determined that due to the length of time that has elapsed since the bid due date, it would be in the City’s best interest to reject all bids and re-bid the project with revised plans and specifications.
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FISCAL IMPACT:

None.

Prepared By: Mara Romano, Purchasing Agent
Reviewed By: Yazmin Arellano, Director of Public Works
Approved By: Graham Mitchell, City Manager
Attachments
Resolution

Page 1 of 2 ends

RESOLUTION NO. ___-23

RESOLUTION CONSENTING TO THE WITHDRAWAL OF THE
BID AWARDED TO CALIFORNIA SOLAR INTEGRATORS, INC., FOR THE PUBLIC SAFETY CENTER RENEWABLE ENERGY PROJECT; REJECTING ALL BIDS AND APPROVING RE-BIDDING OF THE PROJECT; AND PROHIBITING CALIFORNIA SOLAR INTEGRATORS, INC. FROM PARTICIPATING IN

FURTHER BIDDING FOR THE PROJECT RE-BID
(Bid No. 011-22)

WHEREAS, the Public Safety Center Renewable Energy project (the "Project") of the City of El Cajon (the "City") includes furnishing and installing solar photovoltaic panels, carport canopies, and a City-furnished battery energy system at the City's Public Safety Center; and

WHEREAS, the bid was awarded to California Solar Integrators, Inc. ("CSII") on April 12, 2022, by City Council adoption of Resolution No. 022-22; and

WHEREAS, a public works contract was mailed to CSII on May 11, 2022, and on May 24, 2022, CSII requested contract negotiations with the City; and

WHEREAS, on July 6, 2022, CSII requested a $283,837 increase for solar modules and carport structure, and advised the City that the carport subcontractor would not proceed with the design as specified in the bid documents , suggesting an alternate subcontractor; and

WHEREAS, on August 12, 2022, CSII reported that the specified H anwha Q Cell 495W solar panels were no longer available, and on September 13, 2022, Hanwha 485 solar panels were identified as an equivalent at a higher price; and

WHEREAS, on October 11, 2022, the City notified CSII that the City was no longer willing to proceed with the P roject as CSII was unable to perform the work as specified/bid; and

WHEREAS, on March 9, 2023, CSII submitted a written request for relief of its bid, and staff recommends accepting CSII's withdrawal from the Project; and

WHEREAS, in accordance with the prov isions of Public Contract Code s ection 5105, " A bidder who claims a mistake or who forfeits his or her bid security shall be prohibited from participating in further bidding on the P roject on which the mistake was claimed or security forfeited"; and

WHEREAS, City staff has determined that due to the length of time that has elapsed since the bid due date, it would be in the City’s best interest to reject all bids and re-bid the Project; and

WHEREAS, the City Council believes it to be in the best interest of the City to accept CSII's request to withdraw its bid, to reject all bids and re -bid the Project , and

Page 2 of 2 ends

prohibit CSII from participating in further bidding on the Project re-bid in accordance with Public Contract Code section 5105.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

1. The foregoing recitals are true and correct and are the findings of the City Council.

2. The City Council hereby accepts the withdrawal letter submitted by CSII on March 9, 2023, requesting relief from the bid awarded on April 12, 2022, and prohibits CSII from participating in further bidding on the Project re-bid, in accordance with Public Contract Code section 5105.

3. The City Council hereby rejects all bids received for the reasons stated above, and authorizes re-bidding of the Project, as approved by the City Manager.

4. The City Manager is hereby authorized to approve the final plans prior to re-bidding for and on behalf of the City of El Cajon.

03/28/23 CC Agenda
Reso – Bid 011-23 PSC Renewable Energy – Reject & Re-bid 031423 City Council
Agenda Report
Agenda Item 6.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Yazmin Arellano, Director of Public of Works
SUBJECT: Declaration of Emergency for Wells Park Restroom Conditions; Authorization to Waive Bidding
RECOMMENDATION:

That the City Council:

2. BACKGROUND:

The ongoing vandalism and deteriorating conditions of the only public restrooms at Wells Park have resulted in extensive damage to the facilities, making it difficult to conduct repairs and provide daily maintenance, including cleaning. The situation is concerning and considered a public health exposure as the unsanitary conditions could spread infectious diseases such as Hepatitis A, E. coli, norovirus, and other illnesses that can cause serious health issues. These diseases can be transmitted through contact with contaminated surfaces and can be especially dangerous for vulnerable populations such as children, pregnant women, and elderly individuals with weaker immune systems, making it crucial to maintain a clean and safe environment.

Despite numerous efforts by City staff and contractors to repair the ongoing damage, the repeated vandalism has made it challenging to maintain the restrooms in a functional and safe condition. The existing configuration of individual, lockable stalls in the restroom building leads to individuals improperly using the stalls to engage in illegal activities for extended periods or overnight. The illicit activities witnessed by staff, including police officers, include prostitution, drug use, violent crimes, vandalism resulting in broken fixtures, damaged plumbing, graffiti, and buildup of feces, debris, and waste inside the stalls, causing them to become unusable for park users.

These issues require immediate and urgent attention to restore the facilities to a safe and sanitary condition and ensure that park visitors can access necessary restroom facilities. Failure to address the condition of the restrooms immediately poses a risk to public health and safety and continues to damage the park infrastructure and further disrupt park activities. With the risk of the time required to procure professional architectural services and competitively solicit bids for this project, the City Manager declared an emergency on Wednesday, March 22, 2023. A .!!!!_ Valley of opportunity
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for this project, the City Manager declared an emergency on Wednesday, March 22, 2023. A contractor (MJC Construction) has been procured to perform the repairs. The work will rehabilitate damaged restrooms at Wells Park and associated utility work. The estimated total cost to complete the repairs is between $150,000 and $250,000.

Public Contract Code section 22050 requires that the proposed resolution receives a four-fifths affirmative vote.

FISCAL IMPACT:

The cost of the emergency work shall be covered by the reallocation of $250,000 from the ARPA Economic Development Expenditure Category to a new ARPA project with the Expenditure Category 6 - Revenue Replacement.

Prepared By: Yazmin Arellano, Director of Public Works
Reviewed By: Vince DiMaggio, Assistant City Manager
Approved By: Graham Mitchell, City Manager
Attachments
Resolution
Memo Wells Park Restrooms Condition

Page 1 of 3 ends

RESOLUTION NO. _-23

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CAJON

PROCLAIMING THE EXISTENCE OF A LOCAL EMERGENCY AND

REALLOCATING FUNDS FROM THE ARPA ECONOMIC DEVELOPMENT

EXPENDITURE CATEGORY TO A NEW ARPA PROJECT WITH THE
EXPENDITURE CATEGORY 6 – REVENUE REPLACEMENT

WHEREAS, the El Cajon City Council ("City Council") is authorized under section 8630 of the California Government Code to proclaim the existence of a local emergency when conditions exist within the jurisdiction of the City of El Cajon (the "City") which pose an extreme peril to public health, safety and life; and

WHEREAS, section 8.08.060 of the El Cajon Municipal Code ("ECMC") empowers the City Council to proclaim a local emergency when the City is affected or likely to be affected by a public calamity; and

WHEREAS, ongoing vandalism and deteriorating conditions of the restrooms at Wells Park have resulted in extensive damage to the facilities, making the only restroom facilities available to the public patronizing the park unusable, unavailable, and unsafe ; and

WHEREAS, efforts to perform daily cleaning, and to repair vandalized fixtures and equipment have been stymied as the bathroom stalls can be locked and users refuse to leave during hours the park is closed to the public when cleaning, making it difficult to conduct repairs and provide daily maintenance, including cleaning; and

WHEREAS, the situation is concerning and considered a public health exposure as the public has no clean and safe restroom facilities; without daily cleaning these unsanitary conditions could spread infectious diseases such as Hepatitis A, E. coli, norovirus, and other illnesses that can be transmitted through contact with contaminated surfaces and can be especially dangerous for vulnerable populations such as childr en, pregnant women, and elderly individuals with weaker immune systems, making it crucial to maintain a clean and safe environment; and

WHEREAS, the existing configuration of individual, lockable stalls in the restroom building leads to individuals improp erly using the stalls to engage in illegal activities for extended periods or overnight when the park is closed, which activities include prostitution, drug use, violent crimes, vandalism resulting i n broken fixtures, damaged plumbing, graffiti, flooding from misu se of the toilets, and buildup of feces, debris, and waste inside the stalls; and

WHEREAS, the City Manager’s designee has prepared a report and presented it to the City Council at its next available regular meeting not more than 14 days following the City Manager’s proclamation of emergency, and has requested that the City Council review the circumstances at each regular City Council meeting until it no longer exists ; and

Page 2 of 3 ends

WHEREAS, the time needed to public ly bid and contract out the work would unnecessarily delay repair and re placement efforts to help m ake the facilities more accessible to the public and less vulnerable to transient misuse use and occupation; and further delays to publicly bid the work delays in restoring public restrooms in the park, thereby placing the City and public health and safety at further risk; and

WHEREAS, the City Manager is authorized to (1) enter into any emergency contract(s) to repair public facilities as provided in ECMC section 2.04.145, and to (2) waive the bidding requirement in accordance with ECMC section 3.20.010 (C)(6) , if authorized by the City Council; and

WHEREAS, following procedures to solicit proposals, the Purchasing Agent has identified MJC Construction as available to immediately commence work on the restrooms for a total estimated cost of between $150,000 and $250,000; and

WHEREAS, public facilities operations funds for emergency repairs are available in the current fiscal year budget; and

WHEREAS, the City Council has been requested by the City Manager as the Director of Emergency Services of the City to proclaim the existence of a local emergency therein and make such findings as set forth herein; and

WHEREAS, such conditions of extreme peril warrant and necessitate the proclamation of the existence of a local emergency and requires the immediate expenditure of public money to safeguard life, health, or property as required by Public Contract Code section 22050; and

WHEREAS, sufficient funds are available in the ARPA Economic Development Expenditure Category to reallocate $250,000 to a new ARPA project with the Expenditure Category 6 – Revenue Replacement, which will cover the cost of the emergency work.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

1. That t he foregoing r ecitals are true and correct and, based upon such recitals, it hereby proclaims that a local emergency now exists at Wells Park, within the City.

2. That during the existence of said local emergency, the powers, functions, and duties of the Director of Emergency Services and the Disaster Council of this City shall be those prescribed by state law, ordinances, and resolutions of this City and by the City of El Cajon Emergency Plan.

3. That it hereby finds that there is substantial evidence, as described in this Resolution, as well as presented at this meeting and to be contained in the minutes of this meeting, that the emergency will not permit a delay resulting from a competitive solicitation of bids; that the competitive bidding for this public project must be waived and an open market purchase as provided in ECMC section 3.20.110 must be performed; and

Page 3 of 3 ends

that the City Manager or his designee has complied with all necessary procedures to solicit proposals and to engage MJC Construction to perform the emergency work.

4. That public facility operations funds in the amount of between $150,000 and $250,000 in the current fiscal year budget are available and hereby designated for any necessary emergency repairs as determined by the City Manager to address the local emergency.

5. That the local emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council of the City of El Cajon.

6. The City Council hereby approves the reallocation of $250,000 from the ARPA Economic Development Expenditure Category to a new ARPA project with the Expenditure Category 6 - Revenue Replacement to cover the cost of the emergency work.

03/28/23 CC Agenda
Reso - Proclaiming Emergency Declaration for Wells Park Restroom Repairs w-ARPA Funds 032323

CITY OF EL CAJON
DATE: March 22, 2023
TO: Honorable Mayor and City Council
FROM: Yazmin Arellano, Director of Public Works
VIA: Graham Mitchell, City Manager
SUBJECT: Declaration of Emergency for Wells Park Restrooms Condition In accordance with El Cajon Municipal Code § 02.04.145, the City Manager is authorized, in an emergency, to repair or replace a public facility and take any directly related and immediate action required by that emergency without giving notice for bids to let contracts. The City Manager shall report to the City Council not later than seven days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than fourteen days after the action, the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation of bids and why the action is necessary to respond to the emergency .

The City Council shall continue to review the action at every regularly scheduled meeting thereafter until the action is terminated unless the City Manager has terminated the action prior to the City Council reviewing the emergency action.

The ongoing vandalism and deteriorating conditions of the restrooms at Wells Park have resulted in extensive damage to the facilities , making it difficult to conduct repairs and provide daily maintenance , including cleaning. The situation is concerning and considered a public health exposure as the unsanitary conditions could spread infectious diseases such as Hepatitis A, E. coli, norovirus, and other illnesses that can cause serious health issues. These diseases can be transmitted through contact with contaminated surfaces and can be especially dangerous for vulnerable · populations such as children, pregnant women, and elderly individuals with weaker immune systems, making it crucial to maintain a clean and safe environment. Despite numerous efforts by City staff and contractors to repair the damages, the repeated vandalism has made it challenging to maintain the restrooms in a functional and safe condition. The existing configuration of individual, lockable stalls in the restroom building leads to individuals improperly using the stalls to engage in illegal activities for extended periods or overnight. The illicit activities witnessed by staff, including police officers, include prostitution, drug use, violent crimes, vandalism resulting in broken fixtures, damaged plumbing, graffiti, and buildup of feces, debris, and waste inside the stalls, causing them to become unusable for park users.

The following pictures are samples of the daily restroom condition at Wells Park:

These issues require immediate and urgent attention to restore the facilities to a safe and sanitary condition and ensure that park visitors can access necessary restroom facilities. Staff determined that expedited restroom reconfiguration from individual stalls to open "beach style" public restrooms without stall doors and adding space gaps to improve visibility could be achieved by constructing walls to create hallways on each side of the restroom building and adding lockable gates to secure these spaces during park closure hours. The new configuration allows for periodic stall inspections by park rangers. This would ensure that individuals are not misusing the facilities and help maintain a clean, safe, and sanitary environment for all park users.

Failure to address the conditions of the restrooms immediately poses a risk to public health and safety and continues to damage the park infrastructure and further disrupt park activities.

With the risk of the time required to procure professional architectural services and competitively solicit bids for this project, the City Manager declared an emergency on Wednesday, March 22, 2023. A contractor (MJC Construction) has been procured to perform the repairs. The work will rehabilitate damaged restrooms at Wells Park and associated utility work. The estimated total cost to complete the repairs is between $150,000 and $250,000.

Thank you for your attention to this matter, and we look forward to working with you to address this urgent issue.

Submitted by: Approved by:

G~
Graham Mitchell
City Manager
City Council
Agenda Report
Agenda Item 7.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Graham Mitchell, City Manager
SUBJECT: Update on Regulating the Use of El Cajon Lodging Establishments – Ensuring Responsible Guests Requirements
RECOMMENDATION:

That the City Council:

Receives the report and provides feedback on various initiatives; and1.

2. BACKGROUND:

On March 21, 2023, the City Council conducted a special meeting to address regulating El Cajon lodging establishments with the goal of ensuring responsible guest requirements. During that meeting, six possible initiatives were discussed with others added during the City Council discussion. Relying on feedback from the City Council and the public, staff has developed several strategies that warrant City Council direction. Several of these strategies can be implemented immediately, including directing the Planning Commission to consider amendments to chapter 17.212 of the El Cajon Municipal Code.

Lodging Establishment Operators
During the special meeting, the City Council discussed Motel 6, specifically because it is the location of an alleged assault of a minor by two registered sex offenders. The City Council discussed establishing thresholds that would trigger a hearing to consider the status to operate under Municipal Code chapter 17.212 (Deemed Approved Lodging Establishment).

Based on information gathered and the alleged crime that occurred on its property, Motel 6 has been notified that on April 18, 2023, the Planning Commission will consider whether to modify or revoke its deemed approved status.

Also, staff recommends that the City Council formally directs the Planning Commission to consider amending Zoning Code chapter 17.212 (Deemed Approved Lodging Establishment) by including “Emergency Housing Placement Program” guidelines as conditions deemed to be approved, and to consider changes to the list of defined nuisance activities and performance standards. All of these changes would also apply to new lodging establishments seeking to locate in the City.

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Under the included “Emergency Housing Placement Program,” the City can require motels to provide information to the City such as the number of rooms being used for an emergency housing program, which agencies have contracts with or are utilizing motel rooms, room rates being charged, etc. The purpose of collecting this information is not for regulatory purposes.

Rather, it is so the City has knowledge to better serve the community, to conduct transient occupancy tax audits, and to ensure that these lodging establishments provide clean and safe lodging for all guests.

Special Operations License
During the special City Council meeting, ideas discussed included establishing conditions on how sex offenders are placed in emergency housing, regulations on service providers, and conditions requiring criminal background checks. Staff proposes one strategy that addresses each of these areas of interest.

The City currently requires certain types of businesses to obtain a Special Operations License (SOL). These businesses include towing companies, bingo halls, secondhand stores, and pawnbrokers, as examples. Staff recommends amending the City’s Municipal Code, specifically Title 5, to require entities or organizations that engage in emergency housing placement activities to first obtain a SOL before being able to operate or provide services in the City.

Under the SOL, staff recommends identifying operational conditions for these organizations to follow. Staff has developed a draft list of conditions, which could include:

Establishing distance limits regarding the placement of any sex offenders from schools, licensed day care facilities, or public parks, if that spatial restriction is included as a term of the person’s probation or parole;
May not place a sex offender with a Static-99R Score of 4 and above in El Cajon; Must report to the Police Department, within two hours of placement, that a sex offender is being placed in El Cajon;
Must provide demographic data including placement location and number of participants; Must conduct a criminal background check on participants; Must provide a transportation/discharge plan for participants so they can be returned to their previous communities or connected with other service providers; and Must obtain a business license.

If the City Council directs the creation of a SOL for emergency housing placement organizations, staff can bring a Municipal Code change to the City Council for consideration by the end of April 2023. This provides sufficient time for staff to meet with key stakeholders and draft the necessary Code change. Staff also seeks City Council input on other conditions desired to be a part of the proposed SOL.

Prepared By: Graham Mitchell, City Manager
Reviewed By:

Approved By: N/A
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•
City Council
Agenda Report
Agenda Item 8.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Vince DiMaggio, Assistant City Manager
SUBJECT: Potential County Misuse of Taxpayer Funds in the Various Homeless Housing Placement Programs
RECOMMENDATION:

That the City Council receives the report from staff as an informational item.

BACKGROUND:

On March 21, 2023, the City Council held a special meeting about alleged ongoing criminal activities occurring at motels that are participating in the various County-funded homeless assistance programs. Staff received direction from the City Council on a number of different issues, including investigating the potential misuse of taxpayer funds by the County in the administration of these programs.

The County contracts with third-party service providers to secure motel rooms for homeless individuals as a way of providing short-term shelter. The service providers, working under a County-approved contract, pay the motel operators for motel rooms and are then reimbursed by the County from state and/or federal funds. Anecdotal evidence suggests that these service providers are securing motel rooms at rates significantly higher than the publicly-advertised rate.

Since the County has not been forthcoming with numerous requests to obtain information on the amounts paid for rooms under this program or the amount of reimbursement provided to County contractors, understanding precisely how taxpayer funds are being used has been difficult to impossible.

Because the responsible use of taxpayer money is a core principle of local government, and because serious questions remain as to whether the County or its contractors are overpaying for motel rooms, it would be appropriate to request that the San Diego County Grand Jury look into this program. To that end, staff has submitted a "Citizen Complaint Form" on behalf of the City Council with that request. Staff will also prepare a formal request for the San Diego County District Attorney to investigate and will present legislative solutions to local state legislators for their consideration. Staff will keep the City Council apprised of any outcomes from these efforts.

Prepared By: Vince DiMaggio, Assistant City Manager
Reviewed By: Graham Mitchell, City Manager
Approved By: Graham Mitchell, City Manager
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Approved By: Graham Mitchell, City Manager
City Council
Agenda Report
Agenda Item 9.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Noah Alvey, Deputy Director of Community Development SUBJECT: 2022 General Plan Annual Progress Report
RECOMMENDATION:

That the City Council:

Accepts the 2022 General Plan Annual Progress Report; and1.

2. BACKGROUND:

California Government Code section 65400 requires planning agencies to provide an annual report to their legislative body, the Office of Planning and Research (OPR) and the Department of Housing and Community Development (HCD) by April 1st of each year on the status of their General Plan and their progress in its implementation through the previous calendar year. The report must also detail progress in meeting the City's share of regional housing and address efforts toward removing governmental constraints on the maintenance, improvement, and development of housing. Furthermore, in accordance with San Diego Association of Governments (SANDAG) Board Policy, local jurisdictions are requested to submit the same Housing Element annual report information to SANDAG.

The attached 2022 General Plan Annual Progress Report fulfills the City's reporting requirements under Government Code section 65400 and summarizes the key areas of progress during 2022 in accordance with the City Council’s goals and priorities without individually reviewing all of the objectives and policies contained in the General Plan. Housing data is included in Appendix 1 of the report and is formatted differently than the rest of the report because HCD has specific form requirements used for reporting housing data.

Prepared By: Noah Alvey, Deputy Director of Community Development Reviewed By: Anthony Shute, Director of Community Development Approved By: Graham Mitchell, City Manager
Attachments
2022 General Plan Annual Progress Report
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City of El Cajon
2022 General Plan Annual Progress Report

Ma r c h 2 8 , 2 02 3

2022 General Plan Annual Progress Report
March 2023

2 EXECUTIVE SUMMARY
The purpose of the General Plan Annual Progress Report (APR) is to inform the City Council and the residents of the City of El Cajon (City) regarding the implementation status of the General Plan.

California Government Code Section 65400(a) requires that cities and counties “investigate and make recommendations to the legislative body regarding reasonable and practical means for implementing the general plan or elements of the general plan, so that it will serve as an effective guide for orderly growth and development, preservation and conservation of open-space land and natural resources, and the efficient expenditure of public funds relating to the subjects addressed in the general plan.”
The APR is required to be prepared and submitted to the City Council, Governor’s Office of Planning and Research (OPR), and the California Department of Housing and Community Development (HCD) by April 1st of each year. The APR address:
 The status of the General Plan and efforts in its implementation;  The City’s efforts in meeting its share of the regional housing needs; and  Local efforts to remove governmental constraints to the maintenance, improvement, and development of housing.

This report summarizes the planning and implementation activities for the City from January 1, 2022 to December 31, 2022. The General Plan includes nearly 300 policies, many of which are ongoing activities. As such, this APR focuses on relevant ongoing and completed activities and projects, in accordance with annual goals set by the City Council. The final portion of the APR is included in Appendix 1, which includes HCD mandated housing data including permits issued, as well as estimated affordability levels.

LAND USE ELEMENT
City leadership and staff endeavor to maintain regulatory codes, ordinances, and policies that respect the contemporary economic environment and evolving California law. To that end, amendments to the Zoning Code were completed in 2022 in compliance with new State regulations and to facilitate economic development:
 Design guidelines were approved for residential, multifamily and mixed use projects with new graphics to better convey design principles.
 Regulations for accessory dwelling units and urban lot splits were completed to facilitate compliance with State Law.
 A new chapter was added to the Zoning Code for Development Agreements to strengthen the public planning process, encourage private participation, and to create a flexible means of promoting comprehensive planning and orderly development.

Several automobile related commercial projects
were approved in 2022 including a new Hyundai
Dealership at 1155 Graves Ave. and the renovation
of the Lexus Dealership at 1000 Arnele Ave. These
projects include onsite and public right-of way
improvements which augment the appearance of
the City and the local economy.

Source: Courtesy of Hyundai

2022 General Plan Annual Progress Report
March 2023

3 The Melody Lane Townhomes project, which
consists of 29 townhomes on Melody Lane and
west of Comet Lane, was approved in December of
2022. The project design represents a high quality
example of infill residential development.

Construction was also completed for Phase II of the
Dentt Industrial project on N Marshall Ave in the
Fall of 2022. The project includes an additional
112,000 sq. ft. of quality industrial space in the
Gillespie Field area. Source: City Ventures Melody Lane Townhomes

HOUSING ELEMENT
71 new housing units were issued permits in 2022. This includes four low income units and 67 non- deed restricted moderate and above moderate income units (Appendix 1). On October 27, 2022, the City received confirmation the California Department of Housing and Community Development (HCD) that the City’s adopted Housing Element was in full compliance with State Housing Element Law. The City also continued to implement housing programs related to rental and utility assistance, as well as homeless prevention:
 3,146 low income El Cajon households participated in the Housing Choice Voucher Program implemented by the County of San Diego and 8,359 households were on the waiting list in Calendar Year 2022
 $16,249,290 in rent and utility assistance was allocated to El Cajon residents experiencing income loss as a result of the COVID-19 pandemic through a regional program administered by the County of San Diego
 339 El Cajon residents received fair housing services from the City through an agreement with CSA San Diego
 2,265 persons received homeless services including homelessness prevention, emergency shelter, transitional housing and rapid rehousing from the City through agreements with Crisis House, Home Start, East County Transitional Living Center, Salvation Army, and Interfaith Shelter Network

CIRCULATION ELEMENT
The El Cajon Active Transportation Plan was approved in April 2022 and focuses on enhancing the safety and comfort of existing pedestrian and bicycle facilities, identifying needed
improvements to transportation systems, and increasing
connectivity to schools, employment centers, retail districts, and recreational areas. The plan replaces the City’s Bicycle Master Plan and builds on other foundational plans that the City has adopted to date.

OPEN SPACE AND PARKS ELEMENT
The City maintains 16 parks and seven recreational facilities on 120 acres. Facilities include eight lighted ball fields, three adult fitness areas and eight playgrounds. Over 145 community groups typically utilize the centers and parks on a monthly basis. The Parks and Recreation Department provides support to three citizen groups, Teen Coalition, Recreation Council and the Veteran’s Coalition, which annually award a Veteran of the Year and Youth of the Year. The Department FINAL
Aprll20Z:Z
2022 General Plan Annual Progress Report
March 2023

4 facilitates several large annual special events, which include the 4th of July celebration which has an attendance of 10,000, and Hauntfest which has an attendance of over 30,000. Finally, the Parks and Recreation Department adapts its program offerings – such as recent expanded morning and evening opportunities for the popular and fast-growing Pickleball – to reflect evolving trends in sports and recreation.

SAFETY ELEMENT
Heartland Fire and Rescue (Heartland) is in its 14th year of the cooperative service agreement between the Cities of El Cajon, La Mesa and Lemon Grove for shared fire service management.

Heartland maintains its Insurance Service Office (ISO) Class 1 status for its emergency response and suppression capabilities.

The Police Department Communications Center processed 190,403 calls and generated 61,265 calls for service. In an effort to better connect with the community, the Police Department continues to pursue a more substantial social media presence. The Police Department also administers a crime free multi-family housing program, park ranger program, and provides four (4) full-time police officers to staff the primary Grossmont Union High School District (GUHSD) high-school campuses through a contract with GUHSD.

CONSERVATION ELEMENT
The City continued to require that all development proposals receive proper environmental review under the California Environmental Quality Act. The City also implemented the 2022 California Green Standards Building Code for new construction, enforced the California Energy Efficiency Standards, and expedited photovoltaic submittals. These strategies are consistent with the Sustainability Initiative which seek to reduce greenhouse gas emission by increasing building efficiency and renewable electricity supply.

NOISE ELEMENT
The City continually implements the noise standards and criteria stated in the Municipal Code for all projects. Noise attenuating measures such as building setbacks, walls, increased landscaping, and building insulation are required for residential land uses proposed in noise-sensitive areas. The City also applies the compatibility policies contained in the Montgomery and Gillespie Field Airport Land Use Compatibility Plans for new developments to minimize the public’s exposure to airport noise. Gillespie Field: Courtesy of www.sandiegocounty.gov

ENVIRONMENTAL JUSTICE ELEMENT
The City continued to implement the Apartment Inspection Program within the City’s Environmental Justice Communities (EJCs). In many cases, inspections have revealed a high level of deferred maintenance. Violations are documented and follow-up inspections are conducted and tracked through completion. The Program has improved property conditions within the City’s EJCs. In conjunction with the Program, the City also conducts public outreach by providing housing resource information regarding fair housing rights and housing programs providing assistance and education.

2022 General Plan Annual Progress Report
March 2023

5 Appendix 1
Regional Housing Needs Allocation Progress
Permitted Units by Affordability

Income Level
RHNA
Allocation
by
Income
Level
Projection
Period -
06/30/2020-
04/14/2021
2021 2022 2023 2024 2025 2026 2027 2028 2029
Total
Units
to
Date
(all
years)
Total
Remaining
RHNA by
Income
Level

Very Low
Deed
Restricted
481
- - - - - - - - - -
- 481 Non-
Deed
Restricted
- - - - - - - - - -
Low
Deed
Restricted
414
- - - - - - - - - -
121 293 Non-
Deed
Restricted
113 4 4 - - - - - - -
Moderate
Deed
Restricted
518
- - - - - - - - - -
47 471 Non-
Deed
Restricted
2 10 35 - - - - - - -
Above
Moderate 1,867 28 15 32 - - - - - - - 75 1,792
Total RHNA 3,280
Total Units 143 29 71 - - - - - - - 243 3,037
Note: Progress toward extremely low-income housing need, as determined pursuant to Government Code 65583(a)(1).

Extremely
low-
Income
Need
2021 2022 2023 2024 2025 2026 2027 2028 2029
Total
Units
to
Date
Total
Units
Remaining

Extremely Low-
Income Units* 241 - - - - - - - - - - 241

I
City Council
Agenda Report
Agenda Item 10.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Clay Schoen, Director of Finance
SUBJECT: Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2022, and Other Written Communication from the City's Independent Auditor
RECOMMENDATION:

BACKGROUND:

Annual Comprehensive Financial Report and Independent Auditors' Report The Annual Comprehensive Financial Report (ACFR) is prepared annually to present the City's financial condition and the fiscal year-end results of government-wide operations. The financial statements have been audited by the firm of Rogers, Anderson, Malody & Scott, LLP, whose Independent Auditors' Report states that, in their opinion, the financial statements are presented fairly in all material respects and are in conformance with generally accepted accounting principles (a "clean" audit opinion).

The ACFR is included as part of this report and is available on the City's website at www.elcajon.gov/your-government/departments/finance/financial-reports.

Other Correspondence
The purpose of the Independent Auditors' Report on Internal Control Over Financial Reporting is solely to describe the scope of the auditors' testing of internal control and compliance, and the results of that testing, not to provide an opinion of the effectiveness of the City's internal control or on compliance. Given these limitations, the independent auditors did not identify any deficiencies in internal control that they consider material weaknesses or significant deficiencies.

Article XIII-B of the California Constitution establishes a statutory appropriations limit for the State and each local government within the State. The appropriations limit is adjusted annually for the cost of living and change in population. Additionally, the annual calculation of the appropriations limit is required to be reviewed as part of the annual financial audit. .!!!!_ Valley of opportunity
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The Independent Accountant's Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets, prescribed by Article XIII-B of the California Constitution is the result of that review.

Additionally, the auditors issued a letter in accordance with the Statement on Auditing Standards 114 (SAS 114). The standard requires communication between the auditor and client to identify certain information, such as qualitative aspects of accounting practices, management representations, and other audit findings or issues, among others.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

None.

FISCAL IMPACT:

None.

Prepared By: Clay Schoen, Director of Finance
Reviewed By:

Approved By: Graham Mitchell, City Manager
Attachments
ACFR 2021-22
Internal Control Report
GANN Limit Report
SAS114 Letter
City of El Cajon
California
Fiscal Year Ending June 30, 2022

ANNUAL COMPREHENSIVE

F I N A N C I A L R E P O R T

City of El Cajon, California

Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022

Honoring and celebrating
the people who make El Cajon
The Valley of Opportunity

Prepared by the Finance Department

The Valley of Opportunity

CITY OF EL CAJON

TABLE OF CONTENTS

INTRODUCTORY SECTION

Letter of Transmittal .................................................................................................................................................. 3

Certificate of Achievement for Excellence in Financial Reporting ............................................................................ 7

List of Principal Officials ........................................................................................................................................... 8

Organizational Chart ................................................................................................................................................. 9

Map of the City ........................................................................................................................................................ 10

FINANCIAL SECTION

Independent Auditor’s Report ................................................................................................................................. 13

Management’s Discussion and Analysis (Unaudited) ............................................................................................ 17

Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position .......................................................................................................................... 33 Statement of Activities ............................................................................................................................... 34 Fund Financial Statements
Governmental Funds
Balance Sheet ..................................................................................................................................... 38 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................................................................................................. 41 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................ 42 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................ 44 Proprietary Funds
Statement of Net Position ................................................................................................................... 46 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................ 47 Statement of Cash Flows .................................................................................................................... 48 Fiduciary Funds
Statement of Fiduciary Net Position .................................................................................................... 50 Statement of Changes in Fiduciary Net Position ................................................................................ 51 Notes to the Basic Financial Statements ......................................................................................................... 52

Required Supplementary Information (Unaudited)
Budgetary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (Budgetary Basis)
General Fund ............................................................................................................................... 98 Low and Moderate Income Housing Major Special Revenue Fund ........................................... 101 Reconciliation of Schedule of Revenues, Expenditures, and Changes in Fund Balances Budgetary To GAAP Basis – Major Governmental Funds ................................................................ 102 Notes to the Budgetary Information ......................................................................................................... 103 Net Pension Liability
Schedule of Changes in the Net Pension Liability and Related Ratios ................................................... 104 Schedule of Plan Contributions ............................................................................................................... 108 Notes to Required Supplementary Information – Net Pension Liability .................................................. 109

CITY OF EL CAJON

TABLE OF CONTENTS

FINANCIAL SECTION (continued)

Other Post-Employment Benefits (OPEB)
Schedule of Changes in the OPEB Liability and Related Ratios ........................................................... 110 Schedule of Plan Contributions - OPEB .................................................................................................. 111 Notes to Required Supplementary Information - OPEB .......................................................................... 112

Supplementary Information
General Fund
Balance Sheet (GAAP Basis) .................................................................................................................. 114 Schedule of Revenues, Expenditures and Changes in Fund Balances (GAAP Basis) ......................... 115 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual (Budgetary Basis)
General Fund - Recreation Special Programs ........................................................................... 116 General Fund - Magnolia Performing Arts .................................................................................. 117 Nonmajor Governmental Funds
Combined Balance Sheet ........................................................................................................................ 118 Combined Statement of Revenues, Expenditures and Changes in Fund Balances ............................... 119 Nonmajor Special Revenue Funds
Combining Balance Sheet ....................................................................................................................... 122 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............................. 124 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Gas Tax ............................................................................................................................................. 126 Transit ............................................................................................................................................. 127 Federal/County Asset Forfeiture ....................................................................................................... 128 Local Public Safety ............................................................................................................................ 129 Housing In-Lieu Fees ....................................................................................................................... 130 State Certified Access Specialist Program ....................................................................................... 131 Community Development Block Grant .............................................................................................. 132 HOME ............................................................................................................................................. 133 Nonmajor Debt Service Fund
Balance Sheet ......................................................................................................................................... 136 Schedule of Revenues, Expenditures and Changes in Fund Balances .................................................. 137 Nonmajor Capital Projects Fund
Combining Balance Sheet ....................................................................................................................... 140 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............................. 142 Internal Service Funds
Combining Statement of Net Position...................................................................................................... 146 Combining Statement of Revenues, Expenses and Changes in Net Position ........................................ 148 Combining Statement of Cash Flows ...................................................................................................... 150 Fiduciary Funds
Combining Statement of Fiduciary Net Position ...................................................................................... 154 Combining Statement of Changes in Fiduciary Net Position .................................................................. 155

STATISTICAL SECTION, Unaudited

Financial Trends
Net Position by Component ........................................................................................................................... 159 Changes in Net Position ................................................................................................................................. 160 Fund Balance of Governmental Funds .......................................................................................................... 162 Changes in Fund Balance of Governmental Funds ....................................................................................... 163

CITY OF EL CAJON

TABLE OF CONTENTS

iii

STATISTICAL SECTION, Unaudited (continued)

Revenue Capacity
Tax Revenues by Source, Governmental Funds ........................................................................................... 164 Principal Sales Tax Producers ....................................................................................................................... 165 Taxable Sales by Category ............................................................................................................................ 166 Assessed Value of Taxable Property ............................................................................................................. 167 Direct and Overlapping Property Tax Rates .................................................................................................. 168 Property Tax Levies and Collections ............................................................................................................. 169 Principal Property Tax Payers ....................................................................................................................... 170 Debt Capacity
Ratios of Outstanding Debt by Type .............................................................................................................. 171 Direct and Overlapping Governmental Activities Debt ................................................................................... 172 Legal Debt Margin Information ....................................................................................................................... 173 Pledged-Revenue Coverage .......................................................................................................................... 174 Demographic and Economic Information
Demographic and Economic Statistics .......................................................................................................... 175 Top Ten Employers ........................................................................................................................................ 176 Operating Information
Full-time Equivalent City Government Employees by Function/Program ...................................................... 177 Operating Indicators by Function/Program .................................................................................................... 178 Capital Asset Statistics by Function/Program ................................................................................................ 179

ACKNOWLEDGEMENTS

The Valley of Opportunity

INTRODUCTORY SECTION
1 INTRODUCTORY SECTION
2 CITY OF EL CAJON

200 Civic Center Way ● El Cajon, California 92020

March 9, 2023

To the Honorable Mayor, Members of the City Council and Residents of the City of El Cajon:

The City of El Cajon annually publishes a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of certified public a ccountants. Pursuant to that requirement, we hereby issue the annual comprehensive financial report of the City of El Cajon (“the City”) for the fiscal year ended June 30, 2022.

This report consists of management’s representations concerning the finances of the City. Management, therefore, assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework over financial reporting that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conform ity with GAAP. The City’s comprehensive framework of internal controls has been designed to provide reasonable assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Rogers, Anderson, Malody & Scott, LLP, a firm of certified public accountants, audited the City’s financial statements with a goal to provide reasonable assurance that the basic financial statements of the City for the fiscal year ended June 30, 2022, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified (“clean”) opinion that the City’s basic financial statements for the fiscal year ended June 30, 2022 , were fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

The independent audit of the basic financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require th e independent auditor to report not only on the fair presentation of the financial statements, but also report on the City’s internal control over financial reporting and compliance with legal requirements involving the administration of federal awards. Although the independent auditor reports on internal control and compliance with legal matters, they do not express an opinion on them. These reports are contained in the City’s separately issued Single Audit Report. 3 The Valley of Opportunity
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GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.

Profile of the Government

The City, incorporated on November 12, 1912, is located in the southern part of the state, just 15 miles due east of San Diego. The City currently occupies a land area of 14.4 square miles and serves a population of 105,638. The City has experienced population growth of approximately 5.2% over the past ten years.

By a vote of the people, the City became a charter city during fiscal year 2011-12, giving the city council more local control of municipal affairs. Policy-making and legislative authority are vested in the city council consisting of the mayor and four other council members. As part of the November 8, 2016, general election, Measure S passed directing district elections in the subsequent election of the City’s four council members. The mayor is elected to serve a four -year term and council members serve four-year staggered terms. The city council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring both the city manager and city attorney. The City operates under the council -manager form of government. The city manager is responsible for carrying out the policies and ordinances of the city council, for overseeing the day -to-day operations of the City, and for appointing the directors of the various departments.

The City provides a full range of services, including police and fire protection, animal control, construction and maintenance of streets, parks, civic facilities, and other infrastructure, right -of-way regulation, city planning and building regulation, recreational activities, cultural events, housing assistance and wastewater services.

The City is financially accountable for the El Cajon Housing Authority and El Cajon Public Financing Authority, both of which are reported as blended component units within the City’s financial statements. Additional information on these separate entities can be found in Note 1 (page 53) of the notes to the basic financial statements.

The annual budget serves as the foundation for the City’s financial planning and control. All departments of the City are required to submit requests for appropriation to the city manager in March of each year. The city manager uses these requests as the starting point for developing a proposed budget. The city manager then presents this proposed budget to the city council for review in June. The city council has a public hearing to adopt a final budget no later than June 30, the close of the City’s fiscal year. The appropriated budget is prepared by fund (e.g., general fund ), department (e.g., police) and activity (e.g., patrol). The city manager may transfer appropriations between departments within a fund. However, transfers of appropriations between funds require approval of the city council. Budget -to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund and major special revenue fund, this comparison is presented as part of the required supplementary information in the accompanying financial statements. For governmental funds that have appropriated annual budgets, other than the general fund and the major special revenue funds, this comparison is presented in the supplementary section of the accompanying financial statements.

Local Economy

After two tumultuous years affected by the impacts of the Covid-19 pandemic, fiscal year 2021-22 was steady in comparison. After a slow start, economic indicators ended mixed for the year. State Gross Domestic Product (GDP) increased at a 3.8% annual rate for the third quarter 2022 , while national GDP grew at 3.2 % for the same period. While state -level data has not been released, national GDP ended up 2.1% for the year.

Unemployment rates have improved over the year, with the State unemployment rate for December 2022 at

4.1%, compared to 5.8% at the same point last year. For the same period, national unemployment was 3.5%, down from 3.9%.

4 The Consumer Price Index (CPI) for the San Diego region , measuring from January 2023 to January 2022 was up 6.4%, and similarly up 6.4% nationally. The Federal Open Market Committee has increased the federal funds rate throughout the year to mitigate inflation recently stating, “The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.”

Housing indicators are disappointing, led by privately -owned housing units authorized nationally, which decreased 27.3% from January 2022 to January 202 3. Additionally, housing starts decreased 21.4 for the same period; however, completions are up 12.8%.

Sales Tax Revenues – Regular sales tax revenue increased $2.1 million from the prior fiscal year, a 7.0 % increase. This change is primarily attributable to general economic growth and increase in internet sales attributable to the City . The City’s additional district sales tax, known as “Prop J” also increased 11.8%, or $1.4 million from the previous year.

Property Taxes – Property taxes collected in fiscal year 2021-22 increased 4.1% from the prior year. According to data from the County of San Diego Assessor’s Office, the total assessed valuation of taxable property in El Cajon for fiscal year 2021-22 was $11.0 billion; this represents a 4.1% increase from the prior year. For fiscal year 2022-23, total assessed values grew to $11.9 billion, an increase of 8.2% from fiscal year 2021-22.

Economic indicators are mixed , with positive employment news and a stabilized, if not slowing, Gross Domestic Product. Inflation and Housing number are discouraging. It is critical that the City continues to commit to maintaining healthy reserves and making conservative decisions until certainty improves.

Long Term Financial Planning

The City utilizes many sources to evaluate and provide current and long range financial planning. These sources include the Annual Comprehensive Financial Report (ACFR), the annual budget, and the five -year business plan. In conjunction with the ACFR and the annual budget, the five-year business plan is reviewed and updated annually as a forerunner to preparing the annual budget.

As directed by the City Council Poli cy on Fund Balance (No. B-12), the general fund maintains a committed fund balance equal to 20% of annual budgeted expenditures, $15.9 million at June 30, 2022. Additionally, the general fund had reserves of $13.0 million for unfunded retirement obligations and $15.9 million for economic uncertainty. The $15.9 million unassigned fund balance at June 30, 2022, provides resources for future needs.

The city council periodically rebalances these assignments based on anticipated needs, which was done on June 28, 2022. Based on recent analysis and information received to date, general fund revenue and expenditure projections for fiscal year 2022-23 are conservatively estimated. The City must continue to operate in a fiscally conservative manner and prioritize capi tal outlay expenditures based upon available funding.

In November 2008, the voters approved Proposition J, a twenty -year, half-cent sales tax measure, intended to preserve essential City services and bridge the City’s long -standing fiscal needs. A total of $13.2 million was collected in fiscal year 2021-22 as a result of Proposition J and was vital in maintaining essential services.

Transportation related maintenance and capital projects were primarily funded by Gas Tax, TransNet, and the General Fund. A combined total of $9.8 million was utilized to reconstruct and resurface major thoroughfares and local residential streets, and to maintain or improve streetlights and traffic signals. Projects are prioritized based upon need and available funding.
5 Major Fiscal Issues

The City contributes to the California Public Employees Retirement System (CalPERS), an agent multiple - employer defined benefit pension plan for its employees. Each year an independent actuary, engaged by the pension plan, calculates the amount of the annual contribution that the City must make to the pension plan to ensure that the plan will be able to fully meet its obligations. As a matter of policy, the City fully funds each year’s actuarially determined contribution to the pension plan. The unfunded actuarial liability associated with employee services rendered to date is being systematically funded as part of the actuarially determined contribution. Employer rates are expected to increase for a number of re asons including investment returns different than assumed and discount rate changes; rate increases are taken into consideration in the five-year business plan. Although the Public Employees’ Pension Reform Act (PEPRA) established new retirement benefit levels and limits for “new members” effective January 1, 2013, it will be many years before PEPRA fully impacts employer contribution rates.

The City implemented several strategies to address its growing pension funding shortfalls. In October 2020, the City Council adopted a Pension Funding Policy that provides guidance on both goals and specific actions.

Additionally, while the City has maintained designations of General Fund equity for unfunded pension liabilities, it directed the establishment of a Public Agency Retirement Services Section 115 Trust to provide pension rate stabilization and give the City additional pension funding options. Most notably, in January 2021 the City issued $147.2 million in Pension Obligation Bonds as a way to take advantage of favorable interest rates to improve its pension plan’s funded status.

The City obtains a biennial actuarial valuation of its liability for other post -employment benefits (OPEB). In fiscal year 2007 -08, the City began making contributions to the California Employee Retiree Benefit Trust (CERBT) fund to transition to pre-funding the OPEB liability rather than continue the practice of pay-as-you- go.

Awards and Acknowledgements

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its annual comprehensive financial report for the fiscal year ended June 30, 2021. 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 comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements an d we are submitting it to GFOA to determine its eligibility for another certificate.

The preparation of this Annual Comprehensive Financial Report could not have been accomplished without the dedicated efforts of the Finance Department staff and the assis tance of the City’s auditors, Rogers, Anderson, Malody & Scott, LLP. In particular, we would like to express our appreciation to members of the Finance Department who prepared this report. We would also like to thank the Mayor and members of the City Council for their support and commitment to fiscal integrity and financial leadership.

Sincerely,

Graham Mitchell Clay Schoen
City Manager Director of Finance
6 Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of El Cajon
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
7 •

CITY OF EL CAJON
List of Principal Officials
Fiscal Year Ended June 30, 2022

MAYOR

Bill Wells

COUNCILMEMBERS

Steve Goble, Deputy Mayor
Gary Kendrick
Michelle Metschel
Phil Ortiz

CITY MANAGER

Graham Mitchell

CITY ATTORNEY

Morgan Foley

MANAGEMENT TEAM

Vince DiMaggio – Assistant City Manager
Angela Cortez – City Clerk
Mike Moulton – Police Chief
Steve Swaney – Fire Chief
Tony Shute – Director of Community Development
Marisol Thorn – Director of Human Resources
Sara Diaz – Director of Information Services
Yazmin Arellano – Acting Director of Public Works
Frank Carson – Director of Recreation
Clay Schoen – Director of Finance

8 CITY OF EL CAJON
Organizational Chart
Fiscal Year Ended June 30, 2022

Citizens

City Council
Commissions
& Boards
City Attorney
City Manager
Recreation
Fire
Public Works

Community Development

Human Resources
City Clerk

Finance
Police
Information Technology

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S a n G I S , E s r i, H E R E ,
G a r m in , S a f e G r a p h , F A O , M E T I /
N A S A , U S G S , B u r e a u o f L a n d
M a n a g e m e n t , E P A , N P S
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FINANCIAL SECTION
11 FINANCIAL SECTION
12 Independent Auditor’s Report

To the Honorable Mayor and Members of the City Council
City of El Cajon, California

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of El Cajon, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 13 735 E. Carnegie Dr. Suite I 00
San Bernard ino, CA 92408
909 889 087 1 T
909 889 536 1 F
ramscpa.net

PARTNERS
Terry P. Shea. CPA
Scott W. Manno, CPA. CGMA
Leena Shanbhag, CPA. MST, CGMA
8radferd A. Welebir, CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Gardenya Duran, CPA. CGMA
Brianna Schultz, CPA, CGMA
Brenda L. Odle, CPA, MST (Parme,· Emeritus)

MANAGERS/ STAFF
Seong-Hyea Lee, CPA, MBA
Evelyn Morentin-Barcena , CPA
Vernnica Hernandez, CPA
Laura Arvizu, CPA
Xtnlu Zoe Zhang, CPA, MSA
John Maldonado, CPA MSA
Julia Rodriguez Fuentes, CPA, MSA
Demi Hite, CPA
Jeffrey McKennan, CPA

MEMBERS
Amencan Institute of
Certified Public Accountants
PCPS The A/CPA Alliance
{or CPA Firms
Governmental Audit
Qua/,ty Cente,
California Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS, ANDERSON, MALODY & SCOTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
STAB ILITY. ACCURACY. TRUST.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the required supplementary information, such as management’s discussion and analysis and budgetary comparison information, as listed in the table of contents, be presented to supplement the basic financial statements.

Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with 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 other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

14 Supplementary Information

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

Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information referred to above is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information included in the Annual Report

Management is responsible for the other information included in the annual report. The other information comprises the letter of transmittal and the statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the 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 financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 9, 2023 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

San Bernardino, California
March 9, 2023

15 16
The Valley of Opportunity

CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

As management of the City of El Cajon, we offer readers of these financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 202 2. We encourage readers to consider the information pre sented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report.

FINANCIAL HIGHLIGHTS

 At June 30, 2022, the City’s total net position was $242.9 million. Of this amount, governmental activities net position accounts for $167 .7 million and business -type ac tivities total $75 .2 million. The City’s overall net position increased by $23.0 million or 10.5 percent, from the previous fiscal year.

 The increase in the City’s total net position corresponds to the changes in the following financial statement elements: (1) total assets of the City increased by $48.9 million or 10.8 percent primarily due to cash received from the American Rescue Plan Act (ARPA), recognition of leases receivable, and recognition of a net pension asset. The increase was partially offset by a decrease in capital assets of $3.0 million that is a result of depreciation outpacing replacements ; (2) total liabilities of the City decreased by $196.7 million or 48.7 percent primarily due to the recognition of pension payments from the prior year’s pension obligation bond issuance, this increase was partially offset by an increase in unearned revenue from the ARPA; (3) deferred outflows of resources decreased by $150.3 million and deferred inflows of resources increased by $72.3 million from the prior fiscal year. Pension and OPEB related items account for the majority of the changes in deferred outflows and inflows of resources with the pension obligation bond proceeds used to pay for pension benefits recognized in the current fiscal year, which resulted in the net pension asset . The deferred inflows of resources related to leases contributed to the increase in the current fiscal year.

 Total government-wide revenues were $135.3 million, which increased by $ 9.4 million or 7.5 percent from the prior fiscal year, mostly due to increased charges for services and unrestricted intergovernmental revenues. Total expenses were $112.3 million, a decrease of $16.4 million, or 12.7 percent, from last fiscal year . The expense decreases were incurred in public safety, public works, community development , and wastewater, but were offset by increases in general government, recreation and interest on long-term debt.

 At June 30, 2022, the City’s governmental funds reported combined fund balances of $117.4 million, a $7.5 million increase from the prior fiscal year. This was primarily due to higher than anticipated sales tax revenue and budgetary savings primarily in Public Works.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City of El Cajon’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 basic financial statements. This report also includes required supplementary information , and other supplementary information that presents additional detail to support the basic financial statements.

Government-Wide Financial Statements

The government-wide financial statements provide a broad overview of the City’s finances, in a manner similar to private-sector businesses. The government-wide financial statements can be found beginning on page 33 of this report.

17 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as net position . Over time, increases or decreases in net position may s erve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the City’s net position changed durin g the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fis cal periods.

Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all of their costs through user fees and charges ( business-type activities ). The governmental activities of the City include general government, public safety consisting of police and fire, public works, parks and recreation, and community development. The business-type activity of the City includes wastewater operations.

The government-wide financial statements include the City ( primary government), and all legally separate entities (component units) for which the City is financially accountable. The El Cajon Public Financing Authority and the El Cajon Housing Authority, though legally separate, are treated as programs of the City and are included in the basic financial statements as an integral part of the primary government.

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 accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the City’s funds are divided into three categories: governmental funds, proprietary funds, and fiduc iary funds. The fund financial statements can be found beginning on page 37 of this report.

Governmental funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the governm ent-wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal ye ar. Such information may be useful in evaluating a government’s near-term financing requirements.

The focus of the governmental funds is narrower than that of the gover nment-wide financial statements; therefore, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the governm ent-wide financial statements. By doing so, readers may better understand 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.

18 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

The City maintains 18 individual gov ernmental funds. Information is presented separately in the governmental fund financial statements for the following major governmental funds: General Fund, Low and Moderate Income Housing Asset Special Revenue Fund, and Federal, State, and Local Grants Special Revenue Fund. Data from the other 15 nonmajor governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedul es section of this report.

Proprietary funds

The City maintains two differe nt types of proprietary funds: enterprise funds and internal service funds.

Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for its w astewater activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various fun ctions. The City uses five internal service funds to account for its Vehicle Maintenance, Vehicle and Equipment Replacement, Self-Insurance, Information Technology Services, and Other Post -Employment Benefits. These services predominantly benefit governmental rather than business-type functions, so they have been included with governmental activities in the government-wide financial statements. Individual fund data for each of the internal service funds is provid ed in the form of combining statements in the combining and individual fund statements and schedules section of this report.

Fiduciary funds

Fiduciary funds are used to account for resources held for the benefit of p arties outside the government.

Fiduciary funds are not reported in the government -wide financial statement s because the resources of those funds are not available to support the City’s own programs. The basis of accounting for these funds is much like that used for proprietary funds. The City reports two types of fiduciary fund s. The private - purpose trust fund account s for the activities of the Successor Agency to the El Cajon Redevelopment Agency. The custodial funds are used for the collections of delinquent refuse assessments for the City’s franchised waste hauler and property -based improvement district (PBID) assessments for the Greater Downtown El Cajon , and for the activities of the Heartland Fire Training Authority (HFTA) and Heartland Communications Facility Authority (HCFA).

Notes to the Basic Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statemen ts. The notes are presented immediately following the basic financial statements and can be found beginning on page 52 of this report.

Other information

In addition to the basic financial statements and accompanying notes, this report also presents certain Required Supplementary I nformation related to the City’s budget process and budgetary comparison schedules for the General Fund and major Special Revenue Funds and the City’s progress in funding its obligations to provide pension and post-employment benefits to its employees. The required supplementary information can be found beginning on page 97 of this report.

Combining and individual statements for the nonmajor governmental funds , internal service funds , and custodial fiduciary funds are presented in the Supplementary I nformation section of the report . The supplementary information can be found beginning on page 113 of this report. 19 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS

Net position over time may serve as a useful indicator of the City’s financial position. At June 30, 2022, the City’s net position totaled $242.9 million, which represents a n overall increase of $23.0 million from the previous fiscal year. This increase was primarily due to changes related to pensions as related to the prior year issuance of pension obligation bonds . The increase in net position for the Business -type activities resulting from excess revenues over expenses also contributed to the increase in the City’s total net position.

The following is the condensed statement of net position for the fiscal years ended June 30, 2022 and 2021.

2022 2021 2022 2021 2022 2021
ASSETS
Current & other assets $ 188.2 $ 148.2 $ 36.5 $ 30.4 $ 224.7 $ 178.6 Net pension asset 5.8 - 0.1 - 5.9 - Capital assets, net 212.8 217.4 59.0 57.5 271.8 274.9 Total assets 406.8 365.6 95.6 87.9 502.4 453.5

DEFERRED OUTFLOWS
OF RESOURCES 20.3 164.7 1.0 6.9 21.3 171.6

LIABILITIES
Long-term liabilities 151.1 154.5 15.2 15.7 166.3 170.2 Net pension liability - 195.7 - 9.2 - 204.9 Net OPEB liability 4.6 4.5 0.4 0.4 5.0 4.9 Other liabilities 32.4 22.7 3.1 0.8 35.5 23.5 Total liabilities 188.1 377.4 18.7 26.1 206.8 403.5

DEFERRED INFLOWS
OF RESOURCES 71.3 1.6 2.7 0.1 74.0 1.7

NET POSITION
Net investment in capital assets 211.2 216.3 49.9 47.9 261.1 264.2 Restricted 42.5 42.8 0.6 0.6 43.1 43.4 Unrestricted (86.0) (107.8) 24.7 20.1 (61.3) (87.7) Total net position $ 167.7 $ 151.3 $ 75.2 $ 68.6 $ 242.9 $ 219.9 Governmental
activities
Business-type
activities Total
Condensed Statement of Net Position
June 30, 2022 and 2021
(in millions)
At June 30, 202 2, t he largest portion of the City’s total net position ($261.1 million) reflects the net investment in capital assets . This component consists of capital assets, net of accumulated depreciation, reduced by any outstanding debt used for the acquisition, construction, or improve ment of those assets.

The City uses these capital assets , which inc lude land, buildings, machinery and equipment, and infrastructure, to provide services to its citizens. The amount of net investment in capital assets is not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources used to repay the debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 20 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

An additional portion o f the City’s net posit ion ($43. 1 million) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position can be used for ongoing operations without constraints established by debt covenants, enabling le gislation, or other legal requirements. The City’s unrestricted net position , at June 30, 202 2, was a deficit of ($61.3 million), primarily due to the recognition of long -term liabilities ( pension obligation bonds, compensated absences), unearned revenue, and net OPEB liabilities.

The following is the condensed statement of activities for the fiscal years ended June 30, 2022 and 2021.

2022 2021 2022 2021 2022 2021

REVENUES
Program revenues:

Charges for services 14.0$ 15.2$ 29.0$ 24.1$ 43.0$ 39.3$ Operating grants & contributions 7.4 8.9 - - 7.4 8.9 Capital grants &
contributions 4.5 4.6 - - 4.5 4.6 General revenues:

Property taxes 23.5 22.1 - - 23.5 22.1 Sales taxes 45.5 42.0 - - 45.5 42.0 Other taxes 10.3 9.3 - - 10.3 9.3 Intergovernmental 4.6 0.1 - - 4.6 0.1 Investment earnings (2.8) 0.1 (0.8) (0.1) (3.6) - Other - - 0.1 (0.2) 0.1 (0.2) Transfers 0.5 - (0.5) (0.2) - (0.2) Total revenues 107.5 102.3 27.8 23.6 135.3 125.9

EXPENSES
General government 10.1 8.4 - - 10.1 8.4 Public safety 50.1 63.8 - - 50.1 63.8 Public works 15.7 18.9 - - 15.7 18.9 Recreation 8.0 4.9 - - 8.0 4.9 Community development 3.9 9.3 - - 3.9 9.3 Interest on long-term debt 3.3 1.5 - - 3.3 1.5 Wastewater - - 21.2 21.9 21.2 21.9 Total expenses 91.1 106.8 21.2 21.9 112.3 128.7 Change in net position 16.4 (4.5) 6.6 1.7 23.0 (2.8) Net position, beginning 151.3 155.8 68.4 66.9 219.7 222.7 Net position, ending 167.7$ 151.3$ 75.0$ 68.6$ 242.7$ 219.9$ Condensed Statement of Activities
For the fiscal years ended June 30, 2022 and 2021
(in millions)
Governmental
activities
Business-type
activities
Total
21 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

Governmental Activities

Revenues – Over 70 percent of the revenue sources for the City’s governmental activities are generated through taxes collected. The chart below illustrates the governmental activities revenue sources .

The City’s revenue sources for governmental activities increased by $5.2 million, or 5.1 percent from the previous fiscal year. Key elements of this change are as follows:

 Sales taxes were $3.5 million or 8.3 percent higher compared to the prior fiscal year, which is primarily attributable to an increase in sales volume post -pandemic and the cost of items purchased, such as vehicles and construction materials.

 Intergovernmental revenues were higher by $4.5 million, or 28.8 percent, primarily from the recognition and reclassification of American Rescue Plan Act (ARPA) federal funding .

 Property taxes were $1.4 million or 6 .3 percent higher compare d to the prior fiscal year primarily because of a 4.5 percent increase in the a ssessed values of residential, commercial, and industrial properties.

 Investment earnings decreased by $2. 9 million due to unrealized losses on the City’s investments resulting from fair market value adjustments at June 30, 2022.

 Charges for services decreased by $ 1.2 million. This de crease is primarily due to the prior year’s inclusion of Corona virus Aid, Relief, and Economic Security (CARES) Act funds, and to the reclassification of ARPA funds received in the current year compared to the prior year . 22 Investment Earnings
-2.5%
Sales Taxe

40.2%
Governmental Activities
Revenues by Source
June 30, 2022
Other/Transfers

0.4%
Charges for Services

12.4%
Capital Grants and
Contributions

4.0%
Propert y Taxes

20.8%

CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

Expenses – Over 55 percent of expenses for governmental activities are related to public safety. The chart below shows governmental expenses by function.

Overall governmental expenses decreased by $1 5.7 million from the prior fiscal year primarily due to increases in public safety, public works, and community development, partially offset by in creases in recreation and interest on long-term debt.

 The primary reason for the decrease is due to a decrease in recognized pension expense as a result of the pension obligation bond proceeds utilized in the prior year for pension contributions.

 Recreation expenses increased primarily resulting from operating expenses from the Magnolia Performing Arts Center that had limited activity during the prior fiscal year due to the pandemic.

Business-type Activities

The City’s business-type activity consists solely of the wastewater enterprise fund, which reported a net position of $75.2 million at June 30, 2022. Wastewater total revenues exceeded total expenses resulting in an increase in the overall net position by $6.6 million from the prior fiscal year. This growth is attributable to an increase in charges for service primarily resulting from the annual rate increase.

The largest portion of the wastewater net position ($49.9 million) reflects the investment in capital assets used to deliver wastewater services. Additionally, $0.6 million is restricted for debt service. The remaining balance of unrestricted net position can be used for ongoing wastewater operations without constraints established by enabling legislation or other legal requirements. As of June 30, 2022, the wastewater fund’s unrestricted net position was $24.7 million.
23 Public Works

17.9%
Recreation

9.1%
Governmental Activities
Functional Expenses
June 30, 2022
Community Development

4.4%
Public Safety
57 .1%

CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS

The City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements.

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, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

At June 30, 202 2, the City’s governmental funds reported combined fund balances of $117.4 million, an increase of $ 7.6 million from the prior year . Approximately 14.7 percent of this amount ($ 17.2 million) constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of the fund balance is either restricted, committed , assigned, or nonspendable to indicate that it is : a) restricted for particular purposes ($ 41.7 million), b) committe d for economic uncertainty and cash flow reserves ($16.5 million), and c) assigned for particular purposes ($42.0 million).

General Fund
The General Fund is the chief operating fund of the City. At the end of the fiscal ye ar, total fund balance was $62.0 million; of which $17.3 million was unassigned fund balance. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance to to tal General Fund expenditures of $76.5 million. Unassigned fund balance represented 22.6 percent of total General Fund expenditures for the year.

The Gener al Fund’s fund balance increased by $8 .4 million from the previous fiscal year. Excess of revenues over expenditures was $15.6 million.

Revenues of the General Fund were $92.1, which was $8.4 million higher than the prior year. As mentioned in the preceding section about the government -wide analysis of revenue sources, revenues from sales taxes and property taxes were the primary drivers of this increase. Additionally, an increase in revenue from the Magnolia Performing Arts Center contribut ed to the increase due to more activity in the current fiscal year compared to the prior year due to the pandemic.

Total General Fund expenditures were $76.5 million, an increase of $0.1 million compared to previous fiscal year. Recreation expenditures increased by $3.2 million primarily due to increased operating expenditures for the Magnolia Performing Arts Center, which was closed for the majority of the prior fiscal year due to Covid-19 restrictions. This increase was offset by reduced expenditures in public safety and public works, which were primarily from decreased personnel expenditures due to multiple vacant positions.

Low and Moderate Income Housing Asset Fund Special Revenue Fund The Low and Moderate Income Housing Asset Fund (LMIHAF) Special Revenue Fund accounts for the housing assets and functions of the former El Cajon Redevelopment Agency for the purpose of developing affordable housing. As of June 30, 202 2, the L MIHAF had total assets o f $19.2 million, $11.7 million of which were loans receivable.

The LMIHAF had t otal revenues of $0.1 million from investment earnings and interest on loans . Total expenditures were $0.7 million, which were primarily costs for the rent subsidy at the Lexington Seni or Apartments. During the fiscal year, loan repayments of $0. 4 million were received as accounted for in the balance sheet.
24 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

Federal, State, and Local Grants Special Revenue Fund
This fund accounts for grant revenues received from federal, state, and other local agencies for program/project expenditures prescribed by the grant provisions . As of June 30, 2022, total fund balance was $1.2 million, and unearned revenues totaled $25.5 million for the American Rescue Plan Act (ARPA) funds that were received before all grant requirements were met by the City. Total revenues exceeded total expenditures by $0.4 million as most of these grants were expenditure driven to be eligible for reimbursement. This fund received $15.2 million in ARPA Funds from the U.S. Department of the Treasury with the majority remaining unearned, as the spending requirements were not met as of fiscal year end.

Nonmajor Governmental Funds
These funds are used to account for the proceeds of specific revenue sources that typically are legally restricted to expen ditures for specified purposes. The total ending fund balance s for these funds was approximately $36.6 million at June 30, 2022, a negligible increase from the prior fiscal year. The pension obligation bonds debt service fund was reclassified as a nonmajor fund in fiscal year 2022. There was a significant increase in debt service payments of $8.5 million due to the principal and interest payments for the pension obligation bonds. This increase in expenditures was offset by other financing sources resulting from funding transfers for the debt service payments.

Proprietary funds

The City’s proprietary fund statements provide the same type of information found in the government -wide financial statements, but in more detail.

Wastewater Enterprise Fund
This fund is used to account for activities where fees are charged to external users for wastewater services.

Operating revenues increased by $4.9 million to $29.0 million during the fiscal year. Operating expenses totaled $21.2 million, a $0.7 million decrease from previous year, primarily due to a decrease in pension expenses recognized in the current year . Nonoperating expenses totaled ($0.7 million), primarily due to unrealized losses on investments. As of June 30, 2022, the fund’s net position increased by $6.6 million to $75.2 million.

Internal Service Funds
These funds are used to account for the financing of goods or services provided by one fund/department to another fund/department on a cost-reimbursement basis. Additionally, an internal service fund is used to accumulate resources for the replacement of vehicles and equipment, and another is used for the City’s self-insurance for general and worker’s compensation claims. Total operating expenses exceeded operating revenues by ($0.1 million) and total nonoperating revenues were $0.6 million. The majority of nonoperating revenues were from insurance reimbursements. The total net position of the internal service funds increased to $12.5 million at June 30, 2022.
25 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

GENERAL FUND BUDGETARY HIGHLIGHTS

The General Fund final budget for revenues and other financing sources was $84.2 million and t he final budget for expenditures and other financing uses was $83.8 million. The following graphs depict the original budget, final budget, and actual results for the General Fund revenues and other financing sources and expenditures and other financing uses.

Actual revenues and other financing sources performed better than budgetary expectations by approximately $4.0 million. Actual sales taxes received exceeded the budgeted amounts by $6.3 million.

26 50.0

45.0 40.0

35.0 30.0

25.0 20.0

15.0 10.0

5.0 Sales Taxes
Original 39.2
Final 39.2
Actua l 45.5
Comparison of General Fund Revenues
Budget vs. Actual
For the fiscal year ended June 30, 2022
(in millions)

II -- I I
Licenses & Charges for Property Taxes Othe r Taxes Permits Serv ices

22.8 10.2 1.8 4.2

22.5 11 .3 1.9 4.0
I Other Revenues
& Financing
Sources

5.5 6.1

3.1 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

Actual expenditures and other financing uses were under the final budg et by $3.0 million. This savings is primarily due to Public Works ($1.6 million under budget) with all other functions ending the fiscal year under budget. The majority of the Public Works savings is attributable to reduced salary savings due to vacant positions during the year and lower than expected repairs and maintenance costs .

The budgetary comparison schedule showing more details of the General Fund original and final budgets can be found in the Required Supplementary Information beginning on page 97.

27 60.0

55.0 50.0

45.0 40.0

35.0 30.0

25.0 20.0

15.0 10.0

5.0 Original
Final
Actua l
I I
General
Government

7.4 7.4

7.3 Comparison of General Fund Expenditures
Budget vs. Actual
For the fiscal year ended June 30, 2022
(in millions)
II •• Public Safety Public Works Parks and Commun ity Recreation Development

52.4 8.5 3.3 2.9

52.4 8.5 3.3 2.9
51 .9 6.9 3.1 2.3
II
Other Financing
Uses

9.3 9.3

9.3 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

At June 30, 20 22, the City reported capital assets with a carrying value of $271.8 million, a decrease of $3.1 million from the prior year. The following table provides a summary of the City’s ca pital assets as of June 30, 2022 and 2021.

2022 2021 2022 2021 2022 2021
Land 21.7$ 21.7$ 0.1$ 0.1$ 21.8$ 21.8$ Rights of way 31.2 31.2 - - 31.2 31.2 Construction in progress 4.5 1.8 3.9 0.8 8.4 2.6 Use rights 1.6 1.1 - - 1.6 1.1 Land improvements 1.3 1.9 - - 1.3 1.9 Buildings & improvements 75.1 78.4 0.1 0.1 75.2 78.5 Machinery, equipment & vehicles 4.8 5.2 1.1 1.0 5.9 6.2 Interest in Mission Gorge Mains - - 4.7 4.8 4.7 4.8 Infrastructure 72.6 76.1 49.1 50.7 121.7 126.8 Total 212.8$ 217.4$ 59.0$ 57.5$ 271.8$ 274.9$ Governmental activities Business-type activities Total
City of El Cajon
Capital Assets (net of depreciation)
Comparative Data as of June 30, 2022 and 2021
(in millions)

Some of the major changes to the City’s capital assets include:
 Replacement of wooden mulch with rubber tiles at Bill Beck playground  Installation of bollards in downtown on Main Street
 Installation of streetlights in various locations throughout the City  Replacement and upgrades of traffic signals and street lights in various locations throughout the City  Purchase of an armored vehicle for police, and three new vehicles for wastewater  Lease of cardiac equipment for fire department use

A number of capital projects were still in progress at fiscal year ended June 30, 2022. Major capital projects in progress that were significant included improvements to City streets , channel drains, sewer pipeline rehabilitation, and the public safety center solar battery storage. These projects added approximately $5.9 million to construction in progress.

Additional information on capital assets can be found in Note 4 of the Notes to the Basic Financial Statements beginning on page 69.

28 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

Long-Term Debt

The City’s outstanding long -term debt at the end of fiscal years 202 2 and 2021 are presented in the schedule below.

2022 2021 2022 2021 2022 2021
Pension Obligation Bonds 136.8$ 141.5$ 5.5$ 5.7$ 142.3$ 147.2$ Leases Payable 1.6 1.1 - - 1.6 1.1 CA State Water Resources Loan - - 9.1 9.6 9.1 9.6 Total 138.4$ 142.6$ 14.6$ 15.3$ 153.0$ 157.9$ Governmental activities Business-type activities Total
City of El Cajon
Long-Term Debt
Comparative Data as of June 30, 2022 and 2021
(in millions)

The City entered into a lease agreement as a lessee with Stryker Sales, LLC for cardiac equipment. This lease agreement, as a result of Governmental Accounting Standards Board (GASB) pronouncement 87, resulted in long-term debt as a lease payable.

Additional information on long-term debt can be found in Note 5 of the Notes to the Basic F inancial Statements beginning on page 70.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

The following factors were considered in preparing the City’s General Fund budget for fiscal year 2022-23:

 The FY 2022 -23 budget includes $1.1 million for economic development activities from the General Fund. A significant amount of this allocation is for development agreements entered into over the past few years to facilitate vital development (Courtyard Marriott and new car dealerships—BMW, Honda, and Mercedes Benz). Other monies have been allocated for business development activities related to the City’s Opportunity Zones, business attraction effort, redevelopment opportunities, and economic development assessment study. The budget also reflects over $5.0 mil lion in business assistance programs through the American Rescue Plan funds.

 General Fund revenues and other financing sources are anticipated to increase by $6.4 million in FY 2022-23 over FY 202 1-22. This repre sents an overall incr ease of 6 .9 percent. The majority of this increase is due to the sales tax growth as a result of the recovering economy.

 General Fund expenditures and other financing uses are anticipated to increase by $8.4 million, or 10.0 percent, in FY 2022-23 compared to the revised FY 2021 -22 budget. The majority of this increase is the expansion of government services provided as a result of the anticipated increase in sales tax performance as well as the planned use of reserves.

29 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2022

 In March 2021, the American Rescue Plan Act (ARPA) was signed into law. ARPA made significant funding available to municipalities to mitigate the impacts of the public health crisis related to the Covid- 19 pandemic. The City of El Cajon was allocated $30.4 million for th is purpose. This funding, first appropriated in Fiscal Year 2021, continues as a significant component of the FY 2022-23 budget.

 The recruitment of Police Officers has been a challenge for many municipalities over the past several years, including the City of El Cajon. Recognizing the problem, and th e City Council’s strong commitment to public safety, the City implemented a program of employing up to ten additional police officers above standard staffing levels as hiring opportunities emerge. This effort to keep the El Cajon Police Department fully st affed is funded by General Fund reserves, and is anticipated to cost up to $1.6 million in FY 2022-23.

 The FY 2022-23 budget includes the use of General Fund reserves for display marquees at the City’s seven recreation centers. The marquees will promote both center-specific and citywide events via the use of rotating communications. Additional benefits include a centralized system for emergency messaging and promoting City employment opportunities. The anticipated cost for the marquees is up to $0.4 million in FY 2022-23

 The City continues to have significant employee turnover through retirement and other attrition. In order to ensure efficient continuity of ongoing programs and services, the proposed Fiscal Year 2022 -23 Annual Budget authorizes the limited hiring of new staff prior to the separation of the departing incumbent. The duration of the short training and development overlap periods and the positions to which they will apply will be determined on a case-by-case basis by the City Manager.

 The General Fund ended FY 2021 -22 with a fund balance of $62.0. This reserve balance represents approximately 67.3 percent of the City’s FY 2022-23 budgeted General Fund expenditures. The FY 2022-23 budget maintains a strong General Fund reserve. This balance will protect the City in the event of an economic or natural disaster and will allow the City to maintain services. During the upcoming fiscal year, the City will continue to seek strategies to reduce costs while augmenting revenue through economic development initiatives.

REQUESTS FOR INFORMATION

This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. If you have any questions about this report or need additional financial information, contact the City of El Cajon Finance Department, 200 Civic Center Way, El Cajon, CA 92020, (619) 441-1668 or visit the City’s web site at www.elcajon.gov. 30 BASIC FINANCIAL STATEMENTS
31 32
The Valley of Opportunity
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments (note 2)
Cash and investments 126,704,022$ 34,586,237$ 161,290,259$ Cash and investments, restricted 1,893,903 592,205 2,486,108 Receivables:

Accounts, net 285,697 1,258,805 1,544,502 Interest 369,111 107,455 476,566
Intergovernmental 3,375,260 43,311 3,418,571 Leases (note 6) 21,993,767 21,993,767
Taxes 10,117,687 - 10,117,687
Loans (note 3) 23,369,662 - 23,369,662 Prepaid items 40,171 - 40,171 Net pension asset 5,814,574 47,166 5,861,740 Capital assets (note 4):

Non-depreciable 57,394,182 4,005,840 61,400,022 Amortizable or depreciable 155,400,697 55,005,113 210,405,810 Total assets 406,758,733 95,646,132 502,404,865

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pension (note 7) 18,302,753 778,843 19,081,596 Deferred outflows - OPEB (note 9) 1,968,684 184,809 2,153,493 Total deferred outflows of resources 20,271,437 963,652 21,235,089 Combined assets and deferred outflows of resources 427,030,170 96,609,784 523,639,954

LIABILITIES
Accounts payable 2,516,997 2,536,462 5,053,459 Accrued interest payable 866,764 138,009 1,004,773 Accrued liabilities 2,325,747 152,155 2,477,902 Deposits payable 987,263 331,347 1,318,610 Unearned revenue 25,679,126 29,489 25,708,615 Noncurrent liabilities:

Due within one year (note 5) 10,281,463 908,140 11,189,603 Due in more than one year:

Long-term obligations (note 5) 139,537,869 14,284,232 153,822,101 Leases payable 1,286,900 - 1,286,900 Net OPEB liability (note 9) 4,582,362 390,065 4,972,427 Total liabilities 188,064,491 18,769,899 206,834,390

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - pension (note 7) 47,926,275 2,509,323 50,435,598 Deferred inflows - OPEB (note 9) 1,531,984 143,813 1,675,797 Deferred inflows - related to leases 21,844,925 - 21,844,925 Total deferred inflows of resources 71,303,184 2,653,136 73,956,320 Combined liabilities and deferred inflows of resources 259,367,675 21,423,035 280,790,710

NET POSITION
Net investment in capital assets 211,216,164 49,891,775 261,107,939 Restricted for:

Public safety 364,080 - 364,080 Public works 7,537,797 - 7,537,797 Community development 32,747,707 - 32,747,707 Debt service 2 592,205 592,207 Other 1,810,152 - 1,810,152
Unrestricted (deficit) (86,013,407) 24,702,769 (61,310,638) Total net position 167,662,495$ 75,186,749$ 242,849,244$ The accompanying notes are an integral part of these financial statements.

CITY OF EL CAJON
Statement of Net Position
June 30, 2022
33 Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental activities:

General government 10,112,686$ 3,469,892$ 1,230$ -$ Public safety 50,104,115 2,331,565 2,332,780 - Public works 15,717,977 1,393,173 3,495,562 4,486,931 Recreation 7,957,462 4,127,303 138,734 - Community development 3,892,396 2,693,437 1,461,590 - Interest on long-term debt 3,352,189 - - - Total government activities 91,136,825 14,015,370 7,429,896 4,486,931 Business-type activity:

Wastewater 21,208,600 28,970,040 - - Total business-type activity 21,208,600 28,970,040 - - Total 112,345,425$ 42,985,410$ 7,429,896$ 4,486,931$ General revenues:

Taxes
Property taxes
Sales taxes
Franchise taxes
Transient lodging taxes
Business license taxes
Intergovernmental (unrestricted)
Investment earnings
Gain (loss) on sale of capital assets
Other
Transfers
Total general revenues
Change in net position
Net position, beginning
Prior period adjustment (note 16)
Net position, beginning restated
Net position, ending
The accompanying notes are an integral part of these financial statements.

Statement of Activities

CITY OF EL CAJON
For the fiscal year ended June 30, 2022
Program Revenues
34 Governmental Business-type
Activities Activities Total
(6,641,564)$ -$ (6,641,564)$
(45,439,770) - (45,439,770) (6,342,311) - (6,342,311) (3,691,425) - (3,691,425) 262,631 - 262,631
(3,352,189) - (3,352,189) (65,204,628) - (65,204,628) - 7,761,440 7,761,440
- 7,761,440 7,761,440
(65,204,628) 7,761,440 (57,443,188)
23,485,978 - 23,485,978
45,502,199 - 45,502,199
6,772,687 - 6,772,687
2,797,308 - 2,797,308
735,274 - 735,274
4,540,708 - 4,540,708
(2,793,477) (804,769) (3,598,246)
Gain (loss) on sale of capital assets (48,623) 3,240 (45,383) 67,608 133,627 201,235
484,433 (484,433) -
81,544,095 (1,152,335) 80,391,760
16,339,467 6,609,105 22,948,572
151,336,943 68,577,644 219,914,587
(13,915) - (13,915)
151,323,028 68,577,644 219,900,672
167,662,495$ 75,186,749$ 242,849,244$
Changes in Net Position
Net (Expenses) Revenues and
35 36
The Valley of Opportunity

CITY OF EL CAJON

GOVERNMENTAL FUND FINANCIAL STATEMENTS
GENERAL FUND is the City's primary operating fund. This fund accounts for a ll financial resources except those required to be accounted for in another fund. The fund will continue to exist indefinitely.

SPECIAL REVENUE FUNDS are used to account for specific revenue sources that are legally restricted to expenditures for specified purposes. T he following are the major Special Revenue Funds used by the City :

Low and Moderate Income Housing Asset Fund
This fund accounts for the housing set-aside funds that were tran sferred from the former Redevelopment Agency when it was dissolved on February 1, 2012. This fund is used to account for activities designed to increase, improve, and preserve affordable housing for low and moderate income residents of El Cajon.

Federal, State and Local Grants
This fund accounts for grant revenues received from federal, state and other local agencies and the related expenditures prescribed by the grant provisions/agreements. 37 Low and Federal,
Moderate Income State, and
General Housing Asset Local Grants
ASSETS
Cash and investments (note 2) 53,549,848$ 7,464,779$ 24,921,095$ Cash and investments
with fiscal agent 1,810,152 - - Receivables:

Accounts 280,796 4,901 -
Interest 278,958 22,145 1,336 Intergovernmental 264,162 - 1,232,109 Leases 21,452,665 - - Taxes 10,071,177 - -
Loans (note 3) - 11,670,347 648,536 Due from other funds (note 12) 260,048 - - Total assets 87,967,806$ 19,162,172$ 26,803,076$

LIABILITIES
Accounts payable 1,193,376$ 99,812$ 183,008$ Accrued liabilities 2,219,032 - - Deposits payable 987,263 - - Due to other funds (note 12) - - - Unearned revenue 213,822 - 25,465,304 Total liabilities 4,613,493 99,812 25,648,312

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 1,467,819 - Related to leases 21,306,239 - - Total deferred inflows of resources 21,306,239 1,467,819 - FUND BALANCES (DEFICITS) (note 13)
Restricted 1,810,152 17,594,541 1,232,222 Committed 15,883,202 - - Assigned 27,073,050 - - Unassigned 17,281,670 - (77,458) Total fund balances 62,048,074 17,594,541 1,154,764 Total liabilities, deferred inflows of
resources and fund balances 87,967,806$ 19,162,172$ 26,803,076$ The accompanying notes are an integral part of these financial statements.

Special Revenue

CITY OF EL CAJON
Balance Sheet
Governmental Funds
June 30, 2022
38 Total Total
Nonmajor Governmental
Governmental Funds
24,806,406$ 110,742,128$
2 1,810,154
- 285,697
41,544 343,983
1,878,989 3,375,260
541,102 21,993,767
46,510 10,117,687
11,050,779 23,369,662
- 260,048
38,365,332$ 172,298,386$
785,892$ 2,262,088$
49,509 2,268,541
- 987,263
260,048 260,048
- 25,679,126
1,095,449 31,457,066
174,588 1,642,407
538,686 21,844,925
713,274 23,487,332
21,024,532 41,661,447
596,043 16,479,245
14,942,382 42,015,432
(6,348) 17,197,864
36,556,609 117,353,988
38,365,332$ 172,298,386$
39 40
The Valley of Opportunity
Fund balances of governmental funds (page 39) 117,353,988$ Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, net of depreciation used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.

Capital assets 393,329,591
Accumulated amortization or depreciation (184,011,484)
Other Post Employment Benefits (OPEB) related adjustments that are not financial resources and, therefore, not reported in the governmental funds.

Deferred outflows of resources 1,898,206
Deferred inflows of resources (1,477,139)
Net OPEB liability (4,402,908)
Accrued interest on leases receivable that is not available to pay for current-period expenditures and, therefore, are not recognized in the governmental funds 25,128 Expenditures in the governmental funds that are recorded when paid and are recorded as a liability for the purposes of the statement of net position.

Accrued interest payable for the current portion due of interest due on bonds payable and leases payable (844,116)
Long-term liabilities are not due and payable in the current period and, accordingly, are not reported as a liabilities in the funds.

Compensated absences payable (8,275,956)
Leases payable (1,578,715)
Pension obligation bonds payable (133,153,000)
Pension related adjustments that are not financial resources and, therefore, not reported in the governmental funds.

Deferred outflows of resources 17,783,525
Deferred inflows of resources (46,253,393)
Net pension asset 3,140,132
Deferred interest on loans receivable that are not available to pay for current-period expenditures and, therefore, are not recognized in the governmental funds Deferred inflows of resources 1,642,407
Internal service funds are not governmental funds. However, they are used by management to charge the net costs of certain activities such as insurance, vehicle maintenance and replacement, information technology replacement to individual governmental funds. The net position of the internal service funds is reported with governmental activities. 12,486,229
Net position of governmental activities (page 33) 167,662,495$ The accompanying notes are an integral part of these financial statements.

June 30, 2022

CITY OF EL CAJON
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
Governmental Funds
41 Low and Federal,
Moderate Income State, and
General Housing Asset Local Grants

REVENUES
Taxes 79,293,449$ -$ -$
Intergovernmental 1,976,166 - 6,054,760 Licenses and permits 1,939,791 - - Fines and forfeitures 471,784 - - Special assessments 369,284 - - Charges for services 4,593,763 29,805 - Use of money and property 3,003,644 47,476 (11,262) Other 456,155 1,165 27,899 Total revenues 92,104,036 78,446 6,071,397

EXPENDITURES
Current
General government 7,270,991 - 2,658,679 Public safety 52,662,865 - 445,193 Public works 6,883,312 - 58,270 Recreation 7,274,532 - 676,158 Community development 2,283,171 713,688 81,906 Capital outlay - - 1,738,250 Debt service
Interest 774 - - Principal 82,858 - - Total expenditures 76,458,503 713,688 5,658,456 Excess (deficiency) of revenues
over (under) expenditures 15,645,533 (635,242) 412,941 OTHER FINANCING SOURCES (USES):

Lease acquisition 793,338 - - Transfers in (note 12) 209,841 - - Transfers out (note 12) (8,264,499) - (670,503) Total other financing sources (uses) (7,261,320) - (670,503) Net change in fund balances 8,384,213 (635,242) (257,562) Fund balances, beginning 53,677,776 18,229,783 1,412,326 Prior period adjustment (note 16) (13,915) - - Fund balance, beginning restated 53,663,861 18,229,783 1,412,326 Fund balances, ending 62,048,074$ 17,594,541$ 1,154,764$ The accompanying notes are an integral part of these financial statements.

CITY OF EL CAJON
Special Revenue
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the fiscal year ended June 30, 2022
42 Total Total
Nonmajor Governmental
Governmental Funds
1,932,401$ 81,225,850$
6,926,197 14,957,123
- 1,939,791
32,236 504,020
- 369,284
74,312 4,697,880
(228,637) 2,811,221
216,484 701,703
8,952,993 107,206,872
3,500 9,933,170
49,230 53,157,288
3,090,509 10,032,091
27,373 7,978,063
956,422 4,035,187
5,455,091 7,193,341
3,990,911 3,991,685
4,772,533 4,855,391
18,345,569 101,176,216
(9,392,576) 6,030,656
- 793,338
10,382,172 10,592,013
(955,702) (9,890,704)
9,426,470 1,494,647
33,894 7,525,303
36,522,715 109,842,600
- (13,915)
36,522,715 109,828,685
36,556,609$ 117,353,988$
43 Net changes in fund balances - total governmental funds (page 43) 7,525,303$ Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of these assets are allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays, excluding the internal service funds, were exceeded by depreciation in the current period.

Capital outlay 4,159,606
Sales of capital assets (48,623)
Amortization or depreciation expense (8,929,444)
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has an effect on net position.

Pension obligation bond principal payments 4,772,533
Payments on lease obligations 82,858
Lease acquisition (793,338)
Net difference in the accrued interest payable on long term debt. 639,496 Compensated absences reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (153,434)
Net difference in current year pension plan contribution and pension plan expense as of the measurement date. 8,454,321
Net difference in current year OPEB contribution and OPEB expense as of the measurement date. 164,297
Interest accrued on leases, long-term loans receivable and retention held that is not available in the current period and, therefore, is not included in the governmental funds. 238,627 Internal service funds are not governmental funds. However, they are used by management to charge the net costs of certain activities such as insurance, vehicle maintenance and replacement, information technology replacement to individual governmental funds. The net expense of the internal service funds is reported with governmental activities. 227,265

Changes in net position of governmental activities (page 35) 16,339,467$ The accompanying notes are an integral part of these financial statements.

CITY OF EL CAJON
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Governmental Funds
For the fiscal year ended June 30, 2022
44 CITY OF EL CAJON

PROPRIETARY FUND FINANCIAL STATEMENTS
ENTERPRISE FUNDS are used to account for activities where fees are charged to external users for goods or services.

Wastewater
This fund accounts for activities related to the sanitary sewer d isposal and maintenance of the City's sewer lines and related facilities . It is a self-supporting activity that provides services on a user charge basis to residences and businesses.

INTERNAL SERVICE FUNDS account for the charges to the City departments or other funds, on a cost-reimbursement basis, for equipment, benef its, insurance, and other administrative services. The Internal Service Funds primarily serve governmental activities of the City.
45 Business-type Activity Governmental Activities
Enterprise Fund Internal Service Funds
Wastewater
ASSETS
Current assets:

Cash and investments (note 2)
Cash and investments 34,586,237$ 15,961,894$ Cash and investments, restricted 592,205 83,749 Receivables:

Accounts, net of allowance for bad debt 1,258,805 - Interest 107,455 -
Intergovernmental 43,311 -
Prepaid items - 40,171 Total current assets 36,588,013 16,085,814 Noncurrent assets:

Net pension asset (note 7) 47,166 2,674,442 Capital assets, not being depreciated (note 4):

Land 82,300 -
Construction in progress 3,923,540 714,946 Capital assets, being depreciated, net (note 4):

Buildings and improvements 130,018 - Machinery and equipment 30,642 360,472 Vehicles 1,057,850 2,401,354
Interest in Mission Gorge Mains 4,648,701 - Infrastructure 49,137,902 -
Total noncurrent assets 59,058,119 6,151,214 Total assets 95,646,132 22,237,028

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions (note 7) 778,843 519,228 Deferred outflows of resources related to OPEB (note 9) 184,809 70,478 Total deferred outflows of resources 963,652 589,706

LIABILITIES
Current liabilities:

Accounts payable 2,536,462 254,909 Accrued interest payable 138,009 22,648 Accrued liabilities 152,155 57,206 Claims payable (note 10) - 800,000 Compensated absences (note 5) 250,638 108,670 Deposits payable 331,347 -
California State Water Resources Control Board (note 5) 442,702 - Bonds payable - current (note 5) 214,800 143,200 Unearned revenues 29,489 -
Total current liabilities 4,095,602 1,386,633 Noncurrent liabilities:

Claims payable (note 10) - 3,475,000 Compensated absences (note 5) 319,356 46,091 California State Water Resources Control Board (note 5) 8,676,476 - Bonds payable (note 5) 5,288,400 3,525,600 Net pension liability (note 7) - - Net OPEB liability (note 9) 390,065 179,454 Total noncurrent liabilities 14,674,297 7,226,145 Total liabilities 18,769,899 8,612,778

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions (note 7) 2,509,323 1,672,882 Deferred inflows of resources related to OPEB (note 9) 143,813 54,845 Total deferred inflows of resources 2,653,136 1,727,727

NET POSITION
Net investment in capital assets 49,891,775 3,476,772 Restricted for debt service 592,205 - Unrestricted 24,702,769 9,009,457
Total net position 75,186,749$ 12,486,229$ The accompanying notes are an integral part of these financial statements.

CITY OF EL CAJON
Statement of Net Position
Proprietary Funds
June 30, 2022
46 Business-type Activity Governmental Activities
Enterprise Fund Internal Service Funds
Wastewater
Operating revenues
Charges for services 28,845,517$ 10,473,413$ Fines 124,523 -
Licenses and permits - - Total operating revenues 28,970,040 10,473,413 Operating expenses
Salaries and benefits 3,377,477 2,129,919 Materials, services and supplies 15,974,773 4,678,022 Insurance claims/premiums - 3,224,796 Depreciation 1,856,350 559,767
Total operating expenses 21,208,600 10,592,504 Operating income (loss) 7,761,440 (119,091) Nonoperating revenues (expenses):

Investment earnings (804,769) -
State grants 419,772 -
Gain on disposal of assets 3,240 44,370 Other revenues 3,165 610,223
Interest expense and fiscal charges (289,310) (91,360) Total nonoperating revenues (expenses) (667,902) 563,233 Income (loss) before operating transfers 7,093,538 444,142 Operating transfers:

Transfers out (484,433) (216,877)
Total operating transfers (484,433) (216,877) Change in net position 6,609,105 227,265 Net position, beginning 68,577,644 12,258,964 Net position, ending 75,186,749$ 12,486,229$ The accompanying notes are an integral part of these financial statements.

CITY OF EL CAJON
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the fiscal year ended June 30, 2022
47 Business-type
Activity
Governmental
Activities
Enterprise Fund Internal Service Funds
Wastewater

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and charges to other funds 29,805,472$ 11,083,637$ Payments to suppliers (11,990,037) (7,852,152)
Payments to employees (3,908,253) (1,889,514)
Net cash provided by operating activities 13,907,182 1,341,971

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Capital grants and contributions 419,772
Repayment of long term borrowing (principal) (189,000) (126,000) Repayment of long term borrowing (interest) (163,707) (109,138) Transfers to other funds (484,433) (216,877) Net cash (used for) noncapital financing activities (417,368) (452,015)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of vehicles and equipment 3,240 44,370 Acquisitions of infrastructure, vehicles and equipment (5,055,447) (755,826) Repayment of long term borrowing (principal) (433,596) - Repayment of long term borrowing (interest) (158,608) - Net cash (used for) capital and related financing activities (5,644,411) (711,456)

CASH FLOWS FROM INVESTING ACTIVITIES
Net investment income (830,173) -
Net cash (used for) investing activities (830,173) - Net increase in cash and cash equivalents 7,015,230 178,500 Cash and cash equivalents, beginning 28,163,212 15,867,143 Cash and cash equivalents, ending 35,178,442$ 16,045,643$ Reconciliation of cash and cash equivalents at end of year to the Statement of Net Position:

Cash and investments 34,586,237$ 15,961,894$
Cash and investments, restricted 592,205 83,749 Total cash and cash equivalents at end of year 35,178,442$ 16,045,643$ Reconciliation of operating income to net cash provided by operating activities:

Operating income (loss) 7,761,440$ (119,091)$
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation expense 1,856,350 559,767
Other nonoperating revenue 3,165 610,223 Pension related adjustments (727,895) (485,263) OPEB related adjustments (15,996) (6,100) Changes in assets and liabilities:

Decrease in accounts receivable, net of allowance for bad debt 879,455 - (Increase) in intergovernmental receivable (27,727) - (Increase) in prepaid expenses - (40,171) Increase in accounts payable 3,984,736 84,638 Increase in accrued liabilities 132,208 46,511 (Decrease) in deposits payable (19,461) - Increase in claims payable - 819,000 Increase (decrease) in compensated absences payable 80,907 (127,543) Total adjustments 6,145,742 1,461,062
Net cash provided by operating activities 13,907,182$ 1,341,971$ Noncash investing,capital, and financing activities:

Change in fair value of investments (1,149,746)$ -$ Capital asset (infrastructure) included in accounts payable 1,666,869$ -$ The accompanying notes are an integral part of these financial statements.

CITY OF EL CAJON
Statement of Cash Flows
Proprietary Funds
For the fiscal year ended June 30, 2022
48 CITY OF EL CAJON

FIDUCIARY FUND FINANCIAL STATEMENTS
FIDUCIARY FUNDS are used to report assets held by the City in a custodial capacity for other funds, governments, or individuals. The City reports the following two types of fiduciary funds:

Custodial Funds
These funds are used to account for assets held in a custodial capa city for other agencies/organizations, and therefore cannot be used to suppo rt the City's programs.

The City's custodial funds are used to account for special assessmen ts collected for other agencies and for the financial transactions of the Heartl and Communications Facility Authority and Heartland Fire Training Authority.

Private Purpose Trust Fund
This fund is used to report resources held and administered und er trust or similar arrangement for the benefits of individuals, private organizations or other governments.

In fiscal year 2012, a private-purpose trust fund was established f or the Successor Agency to the Former El Cajon Redevelopment Agency to account for the act ivities related to the dissolution of the former redevelopment agency. 49 Successor
Agency to the
Former El Cajon
Custodial Redevelopment
Funds Agency
ASSETS
Cash and investments 5,917,012$ 3,537,511$
Cash and investments with fiscal agent - 1,306,303 Receivables:

Accounts 60,717 -
Intergovernmental 412,373 -
Interest 18,788 4,426
Loans - 1,585,949
Prepaids - 196,275
Total assets 6,408,890 6,630,464

DEFERRED OUTFLOW OF RESOURCES
Deferred amount on refunding - 732,380 Total deferred outflow of resources - 732,380

LIABILITIES
Accounts payable and other liabilities 160,365 6,444 Interest payable - 619,189
Due to other agencies 17,315 -
Long-term debt - 48,982,337
Total liabilities 177,680 49,607,970

NET POSITION (DEFICIT)
Restricted for:

Other agencies 6,231,210 -
Unrestricted (deficit) - (42,245,126) Total net position 6,231,210$ (42,245,126)$
The accompanying notes are an integral part of these financial statements.

CITY OF EL CAJON
Statement of Fiduciary Net Position (Deficit)
Fiduciary Funds
June 30, 2022
Private Purpose
Trust Fund
50 Successor
Agency to the
Former El Cajon
Custodial Redevelopment
Funds Agency

ADDITIONS
Contributions
Other agencies 4,605,980$ 64,386$
Participants 120,506 -
Property taxes - 4,323,353
Investment earnings (143,993) (33,325)
Assessment collections for other agencies 504,057 - Interest on loan - 51,774
Miscellaneous 55,521 5,000
Total additions 5,142,071 4,411,188

DEDUCTIONS
Administrative expenses - 32,334 Payments of assessments to other agencies 445,545 - Program/project expenses 4,574,062 258,236
Interest and fiscal agent expenses - 2,409,179 Total deductions 5,019,607 2,699,749
Net change in fiduciary net position 122,464 1,711,439 Net position (deficit), beginning 6,108,746 (43,956,565) Net position (deficit), ending 6,231,210$ (42,245,126)$ The accompanying notes are an integral part of these financial statements.

Private Purpose
Trust Fund
Statement of Changes in Fiduciary Net Position (Deficit)

CITY OF EL CAJON
Fiduciary Funds
For the fiscal year ended June 30, 2022
51 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

Notes Page

Note 1. Summary of Significant Accounting Policies ............................................................................................. 53 Reporting entity…. .............................................................................................................................. 53 Basic financial statements and presentation ...................................................................................... 54 Measurement focus and basis of accounting ..................................................................................... 55 Budgetary information ......................................................................................................................... 56 Revenues and expenditures/expenses ............................................................................................... 57 Cash, cash equivalents and investments............................................................................................ 58 Receivables…. .................................................................................................................................... 58 Prepaid items ...................................................................................................................................... 59 Capital assets ...................................................................................................................................... 59 Deferred outflows or inflows of resources ........................................................................................... 59 Pension………... ................................................................................................................................. 60 Other post-employment benefits (OPEB) ........................................................................................... 60 Fund balance policies and flow assumption ....................................................................................... 60 Net position flow assumption .............................................................................................................. 61 Use of estimates ................................................................................................................................. 61 Effect of new accounting standards .................................................................................................... 62

Note 2. Cash and Investments ............................................................................................................................... 62 Note 3. Loans Receivable ...................................................................................................................................... 68 Note 4. Capital Assets ……. ................................................................................................................................... 69 Note 5. Long-Term Liabilities ................................................................................................................................. 70 Note 6. Leases Receivable ..................................................................................................................................... 74 Note 7. Defined Benefit Pension Plans .................................................................................................................. 75 Note 8. Defined Contribution Pension Plan............................................................................................................ 82 Note 9. Other Post-Employment Benefits .............................................................................................................. 83 Note 10. Risk Management .................................................................................................................................... 88 Note 11. Commitments and Contingencies ............................................................................................................ 90 Note 12. Interfund Balances and Transfers ............................................................................................................ 91 Note 13 . Fund Balances and Deficits ..................................................................................................................... 92 Note 14 . Joint Ventures….. .................................................................................................................................... 93 Note 15. Tax Abatements ...................................................................................................................................... 94 Note 16. Prior Period Adjustments ......................................................................................................................... 95 52 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the City of El Cajon have been prepared in conformity with generally accepted accounting principles (GAAP) in the United States of America as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.

Reporting entity

The City of El Cajon (City) was incorporated o n November 12, 1912 . The City was a general law city until 2012, when it became a charter city by vote of the people on June 5, 2012. The City operates under a Council-Manager form of government and provides the following services: police and fire protection , animal control, emergency medical services, construction and maintenance of civic facilities and infrastructure, community development (planning and building regulation), recreational and cultural activities, housing assistance, and wastewater services.

As required by GAAP, the accompanying financial statements present the activities of the City (the primary government) and its component unit s for which the City is considered financially accountable. Financial accountability is demonstrated by the City Council acting as the governing board for each of the component units.

The component units discussed below are included in the City’s financial statements because of the significance of their operational and financial relationships with the City.

El Cajon Housing Authority
The City Council adopted Resolution No. 32 -11 on March 9, 2011, establishing the El Cajon Housing Authority (Housing Authority). The City Council serves as the Commissioners of the Housing Authority. On January 24, 2012, the Commissioners appointed certain City staff to serve as the officials of the Housing Authority, and authorized the Housing Authority to accept the housing assets and enforceable obligations of the former El Cajon Redevelopment Agency. The transactions of the Housing Authority are blended into the City’s financial statements. The Housing Authority does not issue separate financial statements.

El Cajon Public Financing Authority
The El Cajon Public Financing Authority ( Authority) was formed on November 9, 2004 by the Joint Exercise of Powers Agreement (JPA Agreement) between the City and the former El Cajon Redevelopment Agency . The Authority is a separate entity constituting a public instrumentality of the State of California and was created to facilitate financing of public improvement projects of the City and the former Redevelopment Agency. A five - member Board governs the Authority. The City’s council members constitute the Board of the Authority. During the fiscal year, there were no transactions for the Authority to blend into the City’s financial statements nor there were separately issued financial statements for the Financing Authority.

Successor Agency to the Former El Cajon Redevelopment Agency Pursuant to the ABx1 26 (the Dissolution Act), in January 2012, the City Council adopted a resolution electing to serve as the Successor Agency to the former El Cajon Redevelopment Agency (Successor Agency). The Successor Agency is a separate legal entity from the City that operates under the control of the Oversight Board comprised of representatives of the affected taxing entities of the redevelopment project area. The Oversight Board is task ed with fulfilling the obligations of the former Redevelopment Agency, including but not limited to maintaining necessary bond reserves and disposing of excess property. Pursuant to Health and Safety Code Section 34179 (j), beginning July 1, 2018, oversight of the Successor Agency was taken over by the County of San Diego Countywide Redevelopment Successor Agency Oversight Board. The Successor Agency’s financial transactions are accounted for in a private-purpose trust fund under the fiduciary fund of the City’s financial statements. The Successor Agency issues separate financial statements , which can be obtained from https://www.cityofelcajon.us/your- government/departments/community-development/successor-agency/documents.

53 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Basic financial statements and presentation

Government-Wide Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all the non -fiduciary activities of the City and its blended component units .

Governmental activities, which are normally supported by taxes, intergovernmental revenues, and other non-exchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. The governmental activities incorporate data from governmental funds and internal service funds, while business -type activities incorporate data from the City’s enterprise fund. Fiduciary funds are excluded from the government-wide financial statements.

Generally, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are payments in lieu of taxes and other the interfund services provided and other charges between the functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Fund Financial Statements
The fund financial statements provide information about the City’s funds, including the blended component units and fiduciary funds. Separate financial statements for each fund category-governmental, proprietary, and fiduciary-are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.

The determination of a given fund as a major fund is generally based on its relative size in any of the following four groupings of financial statement elements: assets plus deferred outflows of resources, liabilities plus deferred inflows of resources, revenues, and expenditures/expense s. An individual fund is a major fund if it reports, for at least one of the above groupings, both , at least 10 percent of the fund type and at least 5 percent of the combined total for governmental and enterprise funds.

The City reports the following major governmental funds in the accompanying financial statements:

 General Fund is the City’s primary operating fund, always classified and presented as a major fund.

This fund accounts for all financial resources except those required to be accounted f or in another fund.

 Low and Moderate Income Housing Asset Special Revenue Fund (LMIHAF) accounts for the loan repayments, proceeds from sale of property and other revenues generated from the housing assets transferred by the former El Cajon Redevelopment Agency. These financial resources are used for developing affordable housing within the City.

 Federal, State, and Local Grants Fund accounts for grant revenues received from federal, state, and other local agencies. Expenditures are made and accounted for as prescribed by the grant provisions/agreements. Beginning in fiscal year 2021, the fund was reported as a major fund with the City receiving the American Rescue Plan Act grant funding.

The City reports the following major enterprise fund:

 Wastewater Enterprise Fund primarily accounts for the sanitary sewer disposal and maintenance of the City’s sewer lines and related facilities. The fund is a self -supporting activity that provides services on a user charge basis to residences and businesses. 54 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Basic financial statements and presentation (continued)

The City also reports the following fund types:

 Internal Service Funds account for goods and services provided to other City funds, on a cost reimbursement basis, in the following areas: fleet equipment, information technology equipment and systems, property, liability, and worker’s compensation insurance, and other post-employment benefits.

 Fiduciary Funds: The City uses a Private-Purpose Trust Fund to account for resources held and administered under trust or similar arrangement for the benefits of individuals, private organizations, or other governments. The transactions of the Successor Agency to the Former El Cajon Redevelopment Agency are accounted for in the private-purpose trust fund.

Another fiduciary fund type used by the City is the Custodial Fund, which accounts for resources held by the City in a purely custodial capacity. The activities include the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. The City uses the custodial fund to account for monies received, and remitted to other governments and agencies.

The City also uses the custodial fund to report transactions for the Heartland Communications Facility Authority (HCFA) and Heartland Fire Training Authority (HFTA). The HCFA and HFTA were formed by cities and fire districts in San Diego County for the purpose of providing emergency and dispatching services and training of firefighters of the participating agencies.

During the course of operations, the City has activity between funds for various purposes. Any residual balances outstanding at year-end are reported as due from/to other funds . While these balances are reported in fund financial statements, certain eliminations are made in the government -wide financial statements. Balances between the funds included in governmental activities (the governmental and internal service funds) are el iminated so that only the net amount is included as internal balances in the governmental activities column.

Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements, these amounts are re ported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the government -wide financial statements.

Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column.

Measurement focus and basis of accounting

The government-wide financial statements are reported using the economic-resources measurement focus and the full accrual basis of accounting, as are the fund financial statements of the proprietary and fiduciary funds. Revenues are recorded when earned and expenses are recorded at the same time liabilities are incurred, regardless of when the related cash flows take place. Property taxes are recognized as revenues in the year for which they are levied. Grants are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met.

55 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Measurement focus and basis of accounting (continued)

Governmental funds financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. R evenues are recognized when measurable and available. The City considers all revenues available when they are collected within 60 days after fiscal year end for such items as property taxes, sales taxes, franchise fees, and transient occupancy taxes.

Expenditure driven grants are recognized as revenues when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the fiscal year or within six months of fiscal year end.

In the governmental fund financial st atements, expenditures are recorded when a related fund liability is incurred except for debt service expenditures. Principal and interest of general long-term debt are recorded when payment is due. General capital asset acquisitions are reported as expenditures in the governmental funds. The governmental funds financial statements do not present long -term debt. Issuance of long -term debt, bond premiums, and discounts are reflected as other financing sources (uses) and recognized in the period in which they are issued.

Budgetary information

Budgetary basis of accounting
The City prepares and adopts annual budgets on a basis consistent with generally accepted accounting principles, with the exception of the General Fund and three special revenue funds: LMIHAF, HOME and Community Development Block Grant (CDBG). The General Fund, on a GAAP basis, includes two funds that were considered special revenue funds prior to the implementation of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definition. The three funds are budgeted as separate individual fun ds, but are consolidated into the General Fund for financial reporting purposes. The appropriated annual budgets for the LMIHAF, HOME, and CDBG special revenue funds include loan repayments and disbursements, which are reported as a decrease or increase in the loan receivable on a GAAP basis. Federal, State, and Local Grants and Various Donations special revenue funds do not have appropriated budget since the means control the use of the resources (e.g. grant/donor requirements) and the grant funds and donations vary from year to year.

The capital project budget is entirely project based, as opposed to fiscal year based. Once approved by City Council, the project’s scope and budget remains in effect until the project is completed or cancelled.

Since annual budgets are not adopted for the capital project funds, budget ary comparison schedules are not presented because comparison of budgetary amounts to actual revenues and expenditures is not meaningful.

The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level. For the purpose of this requirement, each fund, other than the General Fund, is considered a separate department. The City Manager may make transfers of appropriations within a department. Transfers of appropriations between funds and departments require the approval of the City Council.
56 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Budgetary information (continued)

Appropriations for operations in all budgeted funds lapse at fiscal year-end to the extent that they have not been expended, regardless of any related encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is utilized to the extent necess ary to assure effective budget ary control and accountability and to facilitate effective cash planning and control. While all appropriations and encumbrances lapse at year-end, valid outstanding encumbrances, those for which performance under the executory contract is expected in the next year are re-appropriated and become part of the subsequent year’s budget.

Additional budgetary information is provided in the required supplementary information beginning on page

97. Revenues and expenditures/expenses

Property taxes
The County of San Diego (County) bills and collects property taxes on behalf of numerous special districts and incorporated cities, including the City of El Cajon . The City’s current year tax collection is received through periodic apportionments from the County. The County’s tax calendar is from July 1 to June 30.

Property taxes attach as a lien on the property on January 1. Taxes are levied on July 1 and are payable in two equal installments on November 1 and February 1, and become delinquent after December 10 and April 10, respectively.

Since the passage of California’s Proposition 13, beginning with Fiscal Year 1978-79 general property taxes are based either on a flat 1% rate applied to the 1975 -76 full value of the property or on 1% of the sales price of any property sold or of the cost of any new construction after the 1975 -76 valuations. Taxable values of properties (exclusive of increases related to sales and new construction) can rise at a maximum rate of 2% per year.

Program revenues
Amounts reported as program revenues include a) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment (b) grants and contributions that are restricted to supporting the operational needs of a particular function or segment, and (c) grants and contributions that are restricted to financing the acquisition or construction of capital assets. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues.

Compensated Absences
Under certain circumstances and according to negotiated labor agreements, City employees are allowed to accumulate earned but unused vacation balances, compensatory time, and sick leave benefits. The total amount of these unpaid leave ba lances is accrued and reported as compensated absences in the government-wide and proprietary fund financial statements.

57 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenues and expenditures/expenses (continued)

Proprietary funds operating and nonoperating revenues and expenses Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering good s in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the wastewater fund and internal service funds are charges to customers for sales and services. The wastewater fund also recognizes as operating rev enue the portion of sewer fees intended to recover the cost of connecting new customers to the system. Operating expenses for the wastewater enterprise fund and internal service funds include the cost of supplies and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Cash, cash equivalents and investments

The City’s cash and cash equivalents include cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

In the accompanying financial statements, investments are stated at fair value except for certain investment contracts that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates. Changes in fair value that occur during a fiscal year are recognized as i nvestment earnings reported fo r the fiscal year. Investment earnings include interest earnings, changes in fair value and any gains or losses realized upon the liquidation or sale of investments.

In accordance with generally accepted accounting principles, an investment is defined as a security or other asset that (a) a government holds primarily for the purpose of income or profit and (b) has a present service capacity based solely on its ability to generate cash or to be sold to generate cash. Investments not measured at fair value c ontinue to include, for example, money market investments, 2a7 -like external investment pools and synthetic guaranteed investment contracts. A government is permitted in certain circumstances to establish the fair value of an investment that does not have a readily determinable fair value by using the net asset value per share (or its equivalent) of the investment .

Receivables

The City’s receivables are comprised of accounts, leases, interest, intergovernmental, taxes, an d loans.

Long-term housing loans receivables consist primarily of first -time homebuyer and housing developer loans. Repayment of these loans is dependent on future residual receipts generated by the property. These receivables are reported in the governmental fund statements and are recorded with an offset to restricted fund balances, as resources are not available for expenditures.

The wastewater (sewer) utility revenues are recorded as billed to customers on an annual basis as part of the County’s Fixed Charge Special Assessments for t he property tax roll, with the exception of some accounts that are billed directly to the customers on an annual basis.

Accounts receivables are reported net of an allowance for bad debt. The calculation of the allowance is based on a variety of factors, including the age of the receivables, historical trends, economic conditions, and significant one-time events.

58 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Prepaid items

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government -wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

Capital assets

Capital assets , which include land; buildings and improvements; equipment; interest in Mission Gorge Sewer Mains and infrastructure assets (i.e., roads, bridges, traffic signals, curbs and gutters, wastewater system, etc.), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City defines capital assets as machinery and equipment and capital construction with an initial, individual cost of $10,000 or more and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at acquisition value on the date of donation.

The estimated useful lives of capital assets using the straight-line method of depreciation are as follows:

Category Useful Life
Infrastructure 5 - 60 years
Buildings and improvements 10 - 50 years
Machinery and equipment 2 – 20 years
Interest in Mission Gorge Mains 60 years

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets lives are not capitalized. Improvements a re capitalized and depreciated, if applicable, over the remaining useful lives of the related capital assets. Capital assets and the related obligations acquired under lease/purchase agreements, if any, are capitalized and accounted for in accordance with generally accepted accounting principles.

Deferred outflows or inflows of resources

In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element represents the consumption of net assets that applies to future period (s) and so will not be recognized as an expense/expenditure until then. The City reports deferred outflows of resources related to pension and other postemployment benefits (OPEB).

In addition to liabilities, the statement of net positio n reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to future period(s) and so will not be recognized as resources or revenue until then. The City re ports two types of deferred inflows of resources. The firs t type, unavailable revenue, is reported only in the governmental funds balance sheet. This amount reported represents interest on housing loans, which has been earned but ha s not met the recognition criteria based on modified accrual basis of accounting and retention held by granting agency until project completion . The second type is reported in the proprietary funds balance sheet and the statement of net position and includes pension and OPEB related items.

59 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Pension

For purposes of measuring the net pension liability /asset, deferred outflows and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the California Public Employees’ Retirement System (CalPERS) Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

GASB Statement No. 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. The following timeframes were used in these financial statements.

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021

Other post-employment benefits (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), the assets of which are held by the California Employers’ Retiree Benefit Trust Program (CERBT), and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with benefits terms. Investments are reported at fair value.

GASB Statement No. 75 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2021
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021

Fund balance policies and flow assumption

Governmental funds report fund balance classifications based on the extent to which the City is bound to observe the constraints imposed on the use of resources. Governmental fund balances are classified as follows:

 Nonspendable - These are amounts th at cannot be spent because they are either (a) not in spendable form, or (b) legally or contractually required to be maintained intact. This includes prepaid items.

 Restricted - These are amounts that can be used only for specific purposes because of a) constitutional provisions, charter requirements or enabling legislation or b) constraints that are externally imposed by creditors, grantors, contributors, laws or regulations of other governments.

60 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Fund balance policies and flow assumption (continued)

 Committed - These amounts can be used only for specific purposes as determined by a formal action of the City Council. As the City’s highest level of decision-making authority, the City Council uses a resolution to establish a commitment of fund balance. Similarly, the City Council may only modify or rescind the commitment by adopting a subsequent resolution.

 Assigned - These amounts are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed. The City Council, through City Council Policy No. B -12, has delegated to the City Manager the authority to establish assigned fund balances.

 Unassigned fund balance - This amount represents the residual balance when the balances do not meet any of the above classifications. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance if expenditures incurred for specific purposes exceed the amounts restricted, committed or assigned for those purposes.

The City Council Policy on Fund Balance (No. B-12) also establishes the order of use of unrestricted fund balance. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Committed amounts should be reduced first, followed by assigned amounts, then the unassigned amounts.

In the General Fund, Restricted fund balance represents the amount deposited into the Section 115 trust for pension funding. Committed fund balance represents the operating reserve equal to 20% of annual expenditures. Assigned fund balance is an amount to assist in accelerating the reduction of the unfunded pension liability and stabilize service levels during economic uncertainty . Unassigned fund balance represents the residual fund balance and is to mitigate the effects of unforeseen changes in revenues and/or expenditures.

In the Capital Projects Funds, assigned fund balance represents the intent to utilize th e portion of fund balance for the purposes that these funds were established.

Net position flow assumption

Sometimes the City will fund outlays for a particular purpose from both restricted (e.g. restricted grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government -wide and proprietary fund fin ancial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the related reported amounts of revenues and expenses during the reporting period. Actual results could differ from estimates.

Management believes that the estimates are reasonable.

61 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Effect of new accounting standards

The City implemented the requirements of the following accounting standard in fiscal year ending June 30, 2022:

In June 2017, GASB issued Statement No. 87 , Leases, which establishes the model for lease accounting based on the principle that leases a re financings of the right to use an underlying asset. The primary objective of this statement is to enhance the relevance and consistency of information about governments’ leasing activities. Following the requirement of this pronouncement, the City, as a lessor, has recognized a lease receivable and deferred inflow of resources. The City, as a lessee, has recognized an intangible right- to-use lease asset and a lease liability for the City’s equipment leases.

NOTE 2. CASH AND INVESTMENTS

Cash and investments as of June 30, 2022, totaled $174,537,193, and are reported in the accompanying financial statements as follows:

Cash and Cash and Total
Cash and Investments, Investments with Cash and
Government-wide Statement of Net Position Investments Restricted Fiscal Agent Investments Governmental activities 126,704,022$ 83,749$ 1,810,154$ 128,597,925$ Business-type activities 34,586,237 592,205 - 35,178,442 Total Statement of Net Position 161,290,259 675,954 1,810,154 163,776,367 Fiduciary Funds Statement of Net Position 9,454,523 - 1,306,303 10,760,826 Total cash and investments 170,744,782$ 675,954$ 3,116,457$ 174,537,193$

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

Cash on hand 4,105$
Deposits with financial institutions 15,652,786
Investments 158,880,302
Total cash and investments 174,537,193$
62 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 2. CASH AND INVESTMENTS (continued)

Investments Authorized by the California Government Code and City’s Investment Policy

The following table lists some of the investment types authorized for the City by the California Government Code Section 53601 and the City’s investment policy. The table also identifies certain provisions of the California Government Code or the City’s investment policy, if more restrictive, that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by the bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Authorized Investments

Maximum
Maturity
Maximum
Percentage
of Portfolio

Maximum Investment
in One Issuer
Bank Deposits N/A N/A None
Negotiable Certificates of Deposit N/A 30% None
Timed Certificates of Deposit 1 year 20% None
Placement Service Deposits N/A 30% None
Securities of the US Government or its Agencies 5 years None None US Treasury Bills, Notes, Bonds or Certificates 5 years None None Medium-Term Notes 5 years 30% None
Municipal Debt 5 years 20% None
Supranationals 5 years 30% None
Asset-Backed Securities 5 years 20% None
Bankers' Acceptance 180 days 30% 30%
Commercial paper 270 days 25% 10%
Repurchase Agreements 30 days 30% None
Money Market Mutual Funds N/A 15% None
County of San Diego Treasury N/A 30% None
JPA Pools (other investment pools)/CAMP 5 years 30% None Local Agency Investment Fund (LAIF) N/A None $ 75,000,000 per LAIF account

Investment in State Investment Pool

The City is a voluntary participant in the Local Agency Investment Fund (LAIF), a governmental investment pool regulated by the California Government Code. The investment pool is managed and directed by the California State Treasurer and is not registered with the Securities and Exchange Commission. An oversight committee comprised of California State officials and various participants provide oversight to the management of the fund. LAIF has a maximum of 15 transactions per month with a minimum amount of $5,000. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Any withdrawal of $10,000,000 requires 24 -hour notice. The maximum investment in LAIF is $75,000,000 per account.

The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortize d cost of that portfolio). As of June 30, 2022, the fair value of the City’s LAIF investments was $40,186,132. The fair value was determined by multiplying the City’s LAIF balance by the fair value factor of 0.987125414 as determined by LAIF. 63 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 2. CASH AND INVESTMENTS (continued)

Investment in JPA Pool/CAMP

The City is a voluntary participant in the CAMP Trust (Trust), which was established as a nontaxable investment portfolio under provisions of the California Joint Exercise of Powers Act to provide California Public Agencies with comprehensive investment management services. CAMP is directed by a Board of Trustees made up of local government finance directors and treasurers. There are no minimum deposit requirements or limits on deposits and withdra wals. The contract creating the Trust specifies the types of investments that can be made by the investment portfolio with available cash: U.S. Government securities, securities of federally sponsored agencies, repurchase agreements, banker’s acceptances , negotiable certificates of deposit and commercial paper. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by CAMP.

Investments Authorized by Debt Agreements

The City, acting in its capacity as the Successor Agency to the former El Cajon Redevelopment Agency, has funds invested in accordance with various bond indenture and trustee agreements. The investment of these bond issuances is in accordance with the Permitted Investments section and applicable account restrictions outlined in the indenture of each bond issuance. The permitted investments in each indenture will vary based upon the maturity, cash flow demands, and res erve requirements associated with each issuance. In general, the permitted investments of each indenture will closely resemble the City’s investment policy, but may include certain investment options not authorized by applicable law for the investment policy (CGC § 53601).

Interest Rate Risk and Interest Rate Fluctuations

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. In general, the longer the maturity of an investment, the gre ater the sensitivity of its fair value to changes in market interest rates. The City’s investments (including investments held by bond trustees) did not include investments that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information below).

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 time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investment by maturity:
64 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 2. CASH AND INVESTMENTS (continued)

Interest Rate Risk and Interest Rate Fluctuations (continued)

12 or less 13 to 24 25 to 60 > 60
Investment Type Total
US Agency securities 29,644,094$ 6,286,736$ 9,004,159$ 14,353,199$ -$ US Treasuries 70,168,606 17,956,178 20,766,548 31,445,880 - Commercial paper 5,976,005 5,976,005 - - - Corporate notes 9,669,314 3,311,384 2,442,818 3,915,112 - Certificates of deposit 604,788 604,788 - - - Foreign issues 1,086,773 - - 1,086,773 - Municipal debt 156,998 - 156,998 - - CAMP cash pool 81,289 81,289 - - - LAIF 40,186,132 40,186,132 - - - Held by fiscal agent:

Invesco STIT Treasury Private 1,306,303 1,306,303 - - - Total 158,880,302$ 75,708,815$ 32,370,523$ 50,800,964$ -$ Remaining Maturity (in months)

Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.

Minimum
Investment Type Total Legal Rating S&P Rating Moodys Rating Not Rated US Agency securities 29,644,094$ N/A AA+ Aaa -$
US Treasuries 70,168,606 N/A N/A Aaa -
Commercial paper 5,976,005 N/A N/A N/A 5,976,005 Corporate notes 9,669,314 "A category" A-/A/A+/AA-/AA/AA+/AAA A2/A1/Aa3/Aa2/Aaa - Certificates of deposit 604,788 N/A N/A N/A 604,788 Foreign issues 1,086,773 AA AAA Aaa -
Municipal debt 156,998 N/A N/A N/A 156,998
CAMP cash pool 81,289 N/A Not Rated Not Rated 81,289 LAIF 40,186,132 N/A Not Rated Not Rated 40,186,132 Held by fiscal agent:

Invesco STIT Treasury Private 1,306,303 N/A N/A N/A 1,306,303 Total 158,880,302$
65 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 2. CASH AND INVESTMENTS (continued)

Concentration of Credit Risk

The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows:

Issuer Type Amount
Federal National Mortgage Association US Agency securities 13,915,337$ Federal Home Loan Mortgage Corporation US Agency securities 13,085,635 Total 27,000,972$

Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial c redit risk for investments is the risk that, in the event of a failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of a nother 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 governmental units by pledging securities in an undivided collateral 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 law also allows financial institutions to secure Agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2022, the City’s deposits with financial institutions in excess of federal depository insurance limits were held in collateralized accounts.

Fair Value Measurement

The City categorizes its fair value measurements within the fair value hierarchy established by GASB Statement No. 72. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. 66 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 2. CASH AND INVESTMENTS (continued)

Fair Value Measurement (continued)

U.S. Treasury securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. U.S. Agency securities , Commercial paper, Corporate notes, Certificates of deposit, Foreign issues, and Municipal debt classified in Level 2 of the fair value hierarchy are valued using of matrix pricing techniques maintained by the pricing vendors for these securities. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices . The City has no investments classified in Level 3 of the fair value hierarchy.

The City has the following hierarchy levels for investments as of June 30, 2022:

Total Level 1 Level 2 Level 3
Investments by fair value level
US Agency securities 29,644,094$ -$ 29,644,094$ -$ US Treasuries 70,168,606 70,168,606 - - Commercial paper 5,976,005 - 5,976,005 - Corporate notes 9,669,314 - 9,669,314 - Certificates of deposit 604,788 - 604,788 - Foreign issues 1,086,773 - 1,086,773 - Municipal debt 156,998 - 156,998 - Total investments by fair value level 117,306,578 70,168,606$ 47,137,972$ -$ Investments not subject to GASB Statement No. 72
CAMP cash pool 81,289
Invesco STIT Treasury Private 1,306,303
LAIF 40,186,132
Total investments not subject to GASB
Statement No. 72 41,573,724
Total investments 158,880,302$

67 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 3. LOANS RECEIVABLE

Governmental Activities:

Low & Moderate
Income Housing
Asset (LMIHAF) HOME CDBG
Federal,State
and Local
Grants Total
First Time Homebuyer 4,120,144$ 7,750,074$ -$ 648,536$ 12,518,754$ Mobile Home Rehabilitation - 54,410 174,484 - 228,894 Single Family Rehabilitation 76,134 1,687,449 93,622 - 1,857,205 Multi-Family Projects
Chambers Senior Residences 5,800,326 - - - 5,800,326 Lexington Avenue Senior Apartment 215,794 - - - 215,794 South Sunshine Associates LP 1,457,949 1,290,740 - - 2,748,689 11,670,347$ 10,782,673$ 268,106$ 648,536$ 23,369,662$

The City and Housing Authority make various acquisition, construction, and rehabilitation loans to developers and low and moderate -income households. The l oans are secured by deeds of trust , or certificates of title for mobile homes. The loans carry interest rates ranging from 0% to 5% with repayment terms from 10 to 55 years or upon sale or transfer of property. Repayment of these loans is not guaranteed until cash is received, and in some instances, the loans are either not fully recovered or forgiven.

Chambers Senior Residences, LP – In fiscal year 2010, t he former redevelopment agency entered into a Disposition Development Agreement with Chambers Senior Residences, L.P. for the development and construction of affordable housing units for seniors and families with very low and/or moderate incomes.

The loan amount to the developer was $4,500,000, secured by a deed of trust, and bears an interest rate of 3%. Loan repayments are based on residual receipts from monies earned on the property . At June 30, 2022, the balance outstanding includes $4,500,000 of principal and $1,300,326 of accrued interest.

Lexington Avenue Senior Apartments – In fiscal year 1994, the City and the former redevelopment agency entered into a Disposition and Development Agreement (DDA) with Lexington Avenue Senior Apartments (original developer) to provide for the development of affordable housing within the Project Area. On March 3, 2020, the Housing Authority and the original developer agreed to terminate the lease and DDA. This allowed t he Housing Authority to enter into a new DDA and sale of the leasehold interest to a new developer/operator, Thomas Safran & Associates Development, Inc. The sale was completed on December 14, 2020 with the new developer/operator assuming the outstanding loan balance of $206,250. The new agreement includes an interest rate of 3%. As of June 30, 2022, the outstanding balance includes $206,250 of principal and $9,544 of accrued interest.

South Sunshine Associates, LP - The City and the Housing Authority entered into a HOME Funding Agreement and Affordable Housing Agreement, respectively, with South Sunshine Associates, L.P. for the acquisition and development of a 70 -unit affordable housing project for low-income families and veteran households. In fiscal year 2016, the City agreed to loan HOME funds for up to $1,200,000, secured by a deed of trust, with an interest rate of 3% accruing upon project completion. The project was completed on December 23, 2019 and a certificate of occupancy was signed by the City Building Official. The loan is due on or before July 31, 2073. As of June 30, 2022, the outstanding balance of the HOME loan includes total principal of $1,200,000 and $90,740 of accrued interest.

In fiscal year 2018, the Housing Authority agreed to loan the developer LMIHAF funds for up to $1,300,000, secured by a deed of trust and assignment of rents, with an interest rate of 3%. Loan repayments are based on residual receipts from monies earned on the property. The loan is due on or before December 31, 2070.

As of June 30, 20 22, the balance outstanding includes a loan disbursement of $1,300,000 and accrued interest of $157,949.
68 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 4. CAPITAL ASSETS

Capital asset activity for the fiscal year ended June 30, 2022 is as follows:

Beginning Ending
Balance Additions Deletions Balance
Governmental activities
Capital assets, not being depreciated:

Land 21,731,601$ -$ -$ 21,731,601$ Rights of way 31,190,652 - - 31,190,652 Construction in progress 1,836,413 2,752,342 (116,826) 4,471,929 Total assets, not being depreciated: 54,758,666 2,752,342 (116,826) 57,394,182 Capital assets being amortized or depreciated:

Use rights 2,003,895 793,338 - 2,797,233 Land improvements 9,174,685 93,056 - 9,267,741 Buildings and improvements 114,375,357 - - 114,375,357 Vehicles and equipment 20,856,327 483,011 (1,163,184) 20,176,154 Infrastructure 200,774,836 910,511 - 201,685,347 Total assets being amortized or depreciated 347,185,100 2,279,916 (1,163,184) 348,301,832 Less accumulated amortization or depreciation for:

Use rights (894,596) (292,599) - (1,187,195) Land improvements (7,313,914) (620,458) - (7,934,372) Buildings and improvements (35,974,377) (3,352,052) - (39,326,429) Vehicles and equipment (15,631,718) (859,741) 1,114,561 (15,376,898) Infrastructure (124,711,879) (4,364,362) - (129,076,241) Total accumulated amortization or depreciation (184,526,484) (9,489,212) 1,114,561 (192,901,135) Total capital assets being amortized or depreciated, net 162,658,616 (7,209,296) (48,623) 155,400,697 Governmental activity capital assets, net 217,417,282$ (4,456,954)$ (165,449)$ 212,794,879$ Beginning Ending
Balance Additions Deletions Balance
Business-type activities
Capital assets, not being depreciated:

Land 82,300$ -$ -$ 82,300$ Construction in progress 795,365 3,128,175 - 3,923,540 Total assets, not being depreciated: 877,665 3,128,175 - 4,005,840 Capital assets being depreciated:

Buildings and improvements 427,527 - - 427,527 Vehicles and equipment 2,177,638 260,403 (10,516) 2,427,525 Interest in Mission Gorge Mains 8,805,762 - - 8,805,762 Infrastructure 102,401,540 - - 102,401,540 Total assets being depreciated 113,812,467 260,403 (10,516) 114,062,354 Less accumulated depreciation for:

Buildings and improvements (290,286) (7,223) - (297,509) Vehicles and equipment (1,216,651) (132,898) 10,516 (1,339,033) Interest in Mission Gorge Mains (4,010,298) (146,763) - (4,157,061) Infrastructure (51,694,172) (1,569,466) - (53,263,638) Total accumulated depreciation (57,211,407) (1,856,350) 10,516 (59,057,241) Total capital assets being depreciated, net 56,601,060 (1,595,947) - 55,005,113 Business-type activity capital assets, net 57,478,725$ 1,532,228$ -$ 59,010,953$

69 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 4. CAPITAL ASSETS (continued)

Amortization and Depreciation

Amortization and depreciation expense are charged to functions based on their usage of the related assets.

The amounts allocated to each function are as follows:

Governmental activities:

General government 922,635$
Public safety 3,009,221
Public works 4,538,275
Recreation 629,771
Community development 389,310
Total depreciation expense - governmental activities 9,489,212$ Business-type activities:

Wastewater 1,856,350$
Total depreciation expense - business-type activities 1,856,350$

NOTE 5. LONG-TERM LIABILITIES

Summary of the changes in long-term liabilities for the fiscal year ended June 30, 2022, is as follows:

Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental Activities:

Compensated absences 8,404,829$ 3,924,143$ (3,898,255)$ 8,430,717$ 3,854,448$ Claims payable (note 10) 3,456,000 1,449,511 (630,511) 4,275,000 800,000 Leases payable 1,070,768 793,338 (285,391) 1,578,715 291,815 Pension obligation bonds 141,517,800 - (4,696,000) 136,821,800 5,335,200 Total governmental activities 154,449,397$ 6,166,992$ (9,510,157)$ 151,106,232$ 10,281,463$ Business-type Activities:

Notes from direct borrowings
CA State Water Resources 9,552,774$ -$ (433,596)$ 9,119,178$ 442,702$ Other long-term liabilities
Compensated absences 489,087 382,092 (301,185) 569,994 250,638 Pension obligation bonds 5,692,200 - (189,000) 5,503,200 214,800 Total business-type activities 15,734,061$ 382,092$ (923,781)$ 15,192,372$ 908,140$ 70 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 5. LONG-TERM LIABILITIES (continued)

Pension obligation bonds $ 142,325,000

On January 27, 2021, the City issued its 2021 Taxable Pension Obligation Bonds in the amount of $147,210,000. The bonds were issued for the purpose of refunding a portion of the City’s obligations with the California Public Employee’s Retirem ent System (CalPERS ). The bonds bear variable interest rates ranging from 0.449% to 3.284% with an average rate of 2.864% and are payable semi -annually on April 1 and October 1 of each year, commencing October 1, 2021 until maturity.

The bonds do not constitute an obligatio n of the City for which the City is obligated to levy or pledge any form of taxation. The bonds do not constitute an indebtedness of the City, the State, or any of its political subdivisions in contravention of any constitutional or statutory debt limit or restriction. For the purposes of paying principal and interest the City is obligated, under the trust agreement, to annually appropriate amounts sufficient to meet the debt service requirement in the fiscal year. The City refunded a portion of both Miscellaneous and Safety plans with CalPERS. The Miscellaneous plan portion was allocated to both governmental and business-type activities based on the allocation of the unfunded accrued liability.

The annual debt service requirements to amortize the 2021 Pens ion Obligation Bonds outstanding as of June 30, 2022 is provided below.

Year ending
June 30, Principal Interest Principal Interest Principal Interest 2023 5,335,200$ 3,434,725$ 214,800$ 138,149$ 5,550,000$ 3,572,874$ 2024 5,369,000 3,400,099 216,000 136,755 5,585,000 3,536,854 2025 5,417,200 3,350,329 217,800 134,753 5,635,000 3,485,081 2026 5,479,800 3,286,460 220,200 132,185 5,700,000 3,418,645 2027 5,561,200 3,208,154 223,800 129,038 5,785,000 3,337,192 2028-2032 29,445,600 14,384,362 1,184,400 578,553 30,630,000 14,962,915 2033-2037 33,166,200 10,674,454 1,333,800 429,360 34,500,000 11,103,814 2038-2042 38,559,000 5,274,590 1,551,000 212,153 40,110,000 5,486,743 2043 8,488,600 278,766 341,400 11,212 8,830,000 289,977 Totals 136,821,800$ 47,291,938$ 5,503,200$ 1,902,157$ 142,325,000$ 49,194,094$ Governmental Activities Business-type Activities Total

Leases payable

County of San Diego $ 868,236

In October 2016, the City entered into an installment sale agreement (Agreement) with the County of San Diego (County). The County’s Regional Communication System (RCS) provides a standardized communication services platform to public safety and public service agencies operating in San Diego and Imperial Counties. The initial system became operational in 1 998 and had an anticipated end -of-life in 2012. Work began to replace the aging system in 2013. The City ’s continued participation in the system has obligated the City to its proportionate share of the cost of the RCS upgrade. The Agreement between the City and the County represents the City’s share of the backbone infrastructure, including radio equipment.
71 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 5. LONG-TERM LIABILITIES (continued)

Leases payable (continued)

The leased asset, Use Right (Note 4), is amortized on a straight-line basis over 10 years. At June 30, 2022, the net book value of the asset is $887,439 , which consists of $2,003,895 initial cost, less accumulated amortization of $1,116,456.

The future minimum lease payments by fiscal year and the present value of the minimum lease payments are as follows:

Year ending June 30, Principal Interest Total
2023 208,183$ 24,224$ 232,407$
2024 213,992 18,415 232,407
2025 219,962 12,445 232,407
2026 226,099 6,308 232,407
Total 868,236$ 61,392$ 929,628$

Stryker Sales, LLC $ 710,479

On August 10, 2021, the City entered into a 120 month lease as a lessee for the use of cardiac equipment with an interest rate of 1.17%. An initial lease liability was recorded in the amount of $793, 338. The City is required to make annual fixed payments of $83,632.

The leased asset, Use Right (Note 4), is amortized on a straight-line basis over 10 years. At June 30, 2022, the net book value of the asset is $722,599, which consists of $793,338 initial cost, less accumulated amortization of $70,739.

The future minimum lease payments by fiscal year and the present value of the minimu m lease payments are as follows:

Year ending June 30, Principal Interest Total
2023 75,319$ 8,313$ 83,632$
2024 76,201 7,431 83,632
2025 77,092 6,540 83,632
2026 77,994 5,638 83,632
2027 78,907 4,725 83,632
2028-2032 324,966 9,561 334,527
Total 710,479$ 42,208$ 752,687$

72 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 5. LONG-TERM LIABILITIES (continued)

Direct borrowing

California State Water Resources Control Board $ 9,119,178

The City entered into an installment sale agreement (Agreement) with the California State Water Resources Control Board (CSWRCB) to finance the construction of the Johnson Avenue Sewer Interceptor Project (Project) in March 2014, amended in April 2015, and in June 2017, wherein the City agreed to sell to CSWRCB and CSWRCB purchased from the City the Project. Simultaneously, the City purchased from the CSWRCB and the CSWRCB sold to the City the Project. All rights, title and interest in the Project immediately vests with the City on the date of execution and delivery of th e Agreement.

The CSWRCB agreed to provide funding for this project of up to $11,300,000 at an interest rate of 2.1% per annum payable in annual installments beginning October 19, 2016 through October 19, 2035. Funding has been provided in full or in part by the Clean Water State Revolving Fund (CWSRF) through an agreement with the CSWRCB. CWSRF is capitalized through a variety of funding sources, including grants from the United States Environmental Protection Agency and state bond proceeds. CSWRCB agree s to forgive $2,000,000 of the principal due contingent on the City’s performance under the Agreement. The Agreement also contains a termination clause that requires immediate repayment of the remaining principal and any accrued interest upon violation by the City of any material provision of the Agreement that is not remedied in a reasonable time as determined by CSWRCB. The City has drawn down the full amount available under the Agreement.

Pledged revenues - The City has pledged the net revenues of the w astewater enterprise fund, and any reserve fund, towards this obligation until the note is paid off. The City also agreed, to the extent permitted by law, to fix, prescribe and collect sewer rates during each fiscal year necessary to yield net revenues that are at least 1.2 times the highest year’s debt service under this agreement, or 1.1 times the highest year’s debt service for all debts. As of June 30, 2022 , pledged net revenues and debt service are $ 10,727,185 and $592,205, respectively.

Reserve fund - The CSWRCB also required that the City maintain s and funds a separate account for a reserve amount, up to an amount not exceeding the lesser of (i) ten percent of the aggregate principal amount of the obligation, (ii) the maximum annual debt service with respect to the obligation, or (iii) 125 percent of the average annual debt service with respect to the obligation. As of June 30, 20 22, the City has restricted cash and investments in the amount of $592,205 for this purpose.

73 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 5. LONG-TERM LIABILITIES (continued)

Direct borrowing (continued)

Debt service requirement - The debt service requirement provided by CSWRCB, and presented below, is based on the $7,119,178 non-forgivable portion only. A debt service requirement for the forgivable portion, $2,000,000, will not be established by CSWRCB unless the City fails to meet the performance criteria under the Agreement.

Year ending June 30, Principal Interest Total
2023 442,702$ 149,503$ 592,205$
2024 451,999 140,206 592,205
2025 461,491 130,714 592,205
2026 471,182 121,023 592,205
2027 481,077 111,128 592,205
2028-2032 2,561,234 399,790 2,961,024
2033-2036 2,249,493 119,325 2,368,819
Totals 7,119,178$ 1,171,689$ 8,290,866$

Compensated absences

The total unpaid vacation balances, compensatory time and sick leave benefits accumulated by City employees are accrued and reported as compensated absences. Compensated absences balances for the fiscal year ended June 30, 2022, are as follows:

Major Governmental Fund
General Fund 8,156,156$
Nonmajor Governmental Funds
Gas Tax Special Revenue Fund 119,615
Transit Special Revenue Fund 185
Internal Service Funds 154,761
Total governmental activities 8,430,717$
Wastewater Enterprise Fund 569,994$
Total business-type activities 569,994$
Governmental Activities:

Business-type Activities:

NOTE 6. LEASES RECEIVABLE

The City is a lessor in various no ncancellable leases of land, buildings, and office space . As of June 30, 2022, the City’s leases receivable balance was $21,993,767 and the deferred inflow of resources associated with these leases that will be recognized as revenue over the term of the leases was $21,845,838. As of June 30, 2022, the City’s leases receivable balance for Governmental Activities was comprised of the following:

74 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 6. LEASES RECEIVABLE (continued)

Governmental Activities
Land leases with rents received totaling $1,186,303 during fiscal year 2022, at interest rates ranging from 0.967% - 2.452%, with remaining lease terms ranging from 8 to 18 years. 20,033,212$ Building and office space leases with rents received totaling $504,585 during fiscal year 2022, at interest rates ranging from 0.315% - 1.170%, with remaining lease terms ranging from 3 to 10 years. 1,960,555
Total Governmental Activities 21,993,767$

The leases receivable are expected to be received in subsequent years as follows:

Year ending
June 30, Principal Interest Interest
2023 1,570,438$ 303,465$ 1,873,903$
2024 1,605,781 284,759 1,890,540
2025 1,478,925 265,802 1,744,727
2026 1,272,605 247,495 1,520,100
2027 1,282,795 229,232 1,512,027
2028 - 2032 6,113,051 870,054 6,983,105
2033 - 2037 5,672,249 439,291 6,111,540
2038 - 2040 2,997,923 57,848 3,055,771 Totals 21,993,767$ 2,697,946$ 24,691,713$
Governmental Activities

NOTE 7. DEFINED BENEFIT PENSION PLANS

Pension Plan Description

The City provides retirement benefits to all eligible employees (employees who work at least 1,000 hours per fiscal year) through California Public Employees’ Retirement System (CalPERS), an agent multiple - employer defined benefit pension plan that acts a s a common investment and administrative agent for participating public entities within the State of California. Retirement benefits under a defined benefit plan (Plan) is based on a formula, rather than contributions and earnings to a savings plan, and a re calculated based on a member’s years of service credit, age at retirement and final compensation (average salary for a defined period of employment). There are three basic types of retirement: Non -Industrial Disability retirement for employees who can no longer perform the usual duties of their current position due to illness or injury, Industrial Disability retirement for safety risk pool (police and fire) employees who are unable to perform the usual duties of their current position due to job-related illness or injury, and Service retirement or “normal” retirement. The benefit provisions and all other requirements are established by State Statute, as recently amended by the Public Employees’ Pension Reform Act (PEPRA), and City ordinance.

The Plan consists of individual rate plans (benefit tiers) within a safety risk pool and a miscellaneous risk pool (all other). Rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. The City sponsors five rate pla ns (three safety and two miscellaneous). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. CalPERS’ Annual Comprehensive Financial Report and a full description of the pension plan regarding benefit provisions, assumptions and membership information are available online at www.calpers.ca.gov. 75 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 7. DEFINED BENEFIT PENSION PLANS (continued)

Pension Plan Description (continued)

The rate plan provisions and benefits in effect at June 30, 20 22, are summarized as noted below. All members have a benefit-vesting schedule of five years of service and receive benefit payments monthly for life.

MISCELLANEOUS
SAFETY
Tier 1
SAFETY
Tier 2 MISCELLANEOUS SAFETY
Benefit formula 3.0% @ 60 3.0% @ 50 3.0% @ 55 2.0% @ 62 2.7% @ 57 Retirement age 50 - 60+ 50+ 50 - 55+ 52 - 67+ 50 - 57+
Monthly benefits, percentage
eligibile compensation 2.0% to 3.0% 3.0% 2.4% to 3.0% 1.0% to 2.5% 2.0% to 2.7% Member Paid Contribution
Rate 8.000% 9.000% 9.000% 6.250% 13.000%
Employer Contribution Rate -
Normal Cost 11.99% 20.19% 20.19% 11.99% 20.19%

CLASSIC MEMBER
Membership date prior to
January 1, 2013

PEPRA MEMBER
Membership date on or after
January 1, 2013

Employees Covered

During the 2020-21 measurement period, the following number of employees were covered by the benefit terms of the Plan:

Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 546 325 Inactive employees entitled to but not yet receiving benefits 325 127 Active employees 202 172
Totals 1,073 624

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers to 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 Ju ne 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 contribu te the difference between the actuarially determined rate and the contribution rate of employees.

The total contributions to the Plans for the fiscal year ended June 30, 2022 is $12,563,379, which consisted of $5,994,636 and $6,568,743 for the Miscellaneous and Safety Plans, respectively. 76 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 7. DEFINED BENEFIT PENSION PLANS (continued)

Net Pension Liability (Asset) Information

The City’s net pension liability for each Plan is measured as the to tal pension liability, less the p lan’s fiduciary net position. The total pension liability of each of the Plan s is measured as of June 30, 20 21 (measurement date) using an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The June 30, 2021 total pension liability was based on the following actuarial methods and assumptions:

Actuarial cost method Entry Age Normal
Actuarial Assumptions:

Discount rate 7.15%
Inflation 2.50%
Payroll growth 2.75%
Salary increases Varies by entry age and service
Mortality rate* Derived using CalPERS’ membership data for all funds Post-retirement benefit increase Contract COLA up to 2.0% until Purchasing Power Protection Allowance Floor on purchasing power applies; 2.50% thereafter

* The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre -retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP -2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

All other actuarial a ssumptions used in June 30 , 2020 valuation were based on an actuarial experience study for the period 1997 to 2015, including salary increases, mortality rates and retirement rates. The Experience Study report can be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications.

In February 2020, the City established a Section 115 irrevocable trust to set aside funds to address pension funding needs in the long term. The Trust is owned and monitored by the City but externally managed by investment professionals. The Trust allows the City to have full control and flexibility on use of trust assets as a budget stabilization tool to fund p ension contributions in future years. As of June 30, 202 2 the City reported the account balance of $ 1,810,152 as cash and investments held by fiscal agent in the City’s General Fund.

Change of Assumptions

There were no changes of assumptions in measurement period 2021. Demographic assumptions and inflation rate used for the June 30, 2020 valuation were based on the CalPERS Experience Study and Review of Actuarial Assumptions December 2017.

77 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 7. DEFINED BENEFIT PENSION PLANS (continued)

Discount Rate

The discount rate used to measure the total pension liability was 7.15 percent for each Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contributio n rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plans’ fiduciary net position was projected to be available to make all projected future benefit payments of c urrent plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Subsequent Events

On July 12, 2021, CalPERS reported a prelimina ry 21.3% net return on investments for fiscal year 2020 -

21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of

14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the disco unt rate used in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptio ns, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from

2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

Expected Rate of Return

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

In determining the long-term expected rate of return, CalPERS took into account both 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 expected nominal returns for both short-term and long-term, the present value of benef its was calculated for each 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.

78 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 7. DEFINED BENEFIT PENSION PLANS (continued)

Expected Rate of Return (continued)

ASSUMED

ASSET REAL RETURN REAL RETURN
ASSET CLASS ALLOCATION YEARS 1-10(a) YEARS 11+(b)
Public entity 50.0 % 4.80 % 5.98 %
Fixed income 28.0 % 1.00 % 2.62 %
Inflation assets 0.0 % 0.77 % 1.81 %
Private Equity 8.0 % 6.30 % 7.23 %
Real assets 13.0 % 3.75 % 4.93 %
Liquidity 1.0 % 0.00 % (0.92)%
(a) An expected inflation of 2.00% used for this period (b) An expected inflation of 2.92% used for this period

Schedule of Changes in Net Pension Liability (Asset)

Total Pension Increase (Decrease) in Plan Net Pension
Liability Fiduciary Net Position Liability (Asset)
(a) (b) (c) = (a) - (b)

MISCELLANEOUS
Balance at 06/30/2020 (valuation date) 241,314,847$ 164,369,754$ 76,945,093$ Changes recognized for the measurement period:

Service cost 2,777,695 - 2,777,695 Interest on total pension liability 16,884,141 - 16,884,141 Differences between expected and
actual experience 937,913 - 937,913 Contributions from the employer - 55,499,867 (55,499,867) Contributions from the employees - 1,101,687 (1,101,687) Net investment income - 41,616,905 (41,616,905) Benefit payments, including refunds
of employee contributions (14,999,589) (14,999,589) - Administrative expense - (164,195) 164,195 Net changes during 2020-21 5,600,160 83,054,675 (77,454,515) Balance at 06/30/2021 (measurement date) 246,915,007$ 247,424,429$ (509,422)$ 79 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 7. DEFINED BENEFIT PENSION PLANS (continued)

Schedule of Changes in Net Pension Liability (Asset) (continued)

SAFETY
Balance at 06/30/2020 (valuation date) 343,179,293$ 215,187,136$ 127,992,157$ Changes recognized for the measurement period:

Service cost 5,236,365 - 5,236,365 Interest on total pension liability 24,631,101 - 24,631,101 Differences between expected and
actual experience 8,209,825 - 8,209,825 Contributions from the employer - 111,393,591 (111,393,591) Contributions from the employees - 1,882,796 (1,882,796) Net investment income - 58,360,338 (58,360,338) Benefit payments, including refunds
of employee contributions (19,032,740) (19,032,740) - Administrative expense - (214,959) 214,959 Net changes during 2020-21 19,044,551 152,389,026 (133,344,475) Balance at 06/30/2021 (measurement date) 362,223,844$ 367,576,162$ (5,352,318)$

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following tables present the net pension liabilities 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, 2021:

Miscellaneous
Discount Rate
Net Pension
Liability (Asset)
Impact on
Liability (Asset)

6.15% 28,315,987$ 28,825,409$

7.15% (509,422) -

8.15% (24,654,389) (24,144,967)
Safety
Discount Rate
Net Pension
Liability (Asset)
Impact on
Liability (Asset)

6.15% 42,896,347$ 48,248,665$

7.15% (5,352,318) -

8.15% (45,007,483) (39,655,165)

Pension Plan’s Fiduciary Net Position

Detailed information about th e Plan’s fiduciary net position is available in a separately issued CalPERS financial report. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the June 30, 2021 Actuarial Valuation Report, Appendix B. This report and CalPERS’ audited financial statements are available on the CalPERS’ website https://www.calpers.ca.gov/ under Forms and Publications.
80 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 7. DEFINED BENEFIT PENSION PLANS (continued)

Pension Expense (Income)

For the measurement period ending June 30, 2021, the total pension expense recognized is $2,967,057 for the Safety plan, and the total pension income recognized is $71,158 for the Miscellaneous plan.

Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized as pension expense (income) systematically over time. The first amortized amounts are recognized in pension expense (inco me) for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense (income).

Amortization is computed on a straight-line basis and the period differs depending on the source of the gain or loss:

Miscellaneous Safety
Differences between expected and actual
experience 2.0 years 3.6 years
Changes in assumptions N/A 0.5 years
Net difference between projected and actual
earnings on plan investments 5.0 years 5.0 years

The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants. For the measur ement period ending June 30, 202 1, the EARSL used for the Plans is as follows:

Miscellaneous Safety
Total future service years (a) 2,156 2,203
Total number of participants (active, inactive and retired) 1,068 615 EARSL for the 2020-21 measurement period 2.0 years 3.6 years

(a) The sum of the remaining service years of the active employees. Inactive employees and retirees have remaining service years equal to 0. Total future service years is based on the members' probability of decrementing due to an event other than receiving a cash refund.

81 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 7. DEFINED BENEFIT PENSION PLANS (continued)

Deferred Outflows and Inflows of Resources Related to Pensions

The following tables present the deferred outflows and deferred inflows of resources related to pensions as of the measurement date of June 30, 2021.

Deferred Outflows of Resources Miscellaneous Safety
Pension contributions subsequent to the measurement date 5,994,636$ 6,568,743$ Differences between expected and actual experience 495,723 6,022,494 Total Deferred Outflows of Resources - Pension 6,490,359$ 12,591,237$ Deferred Inflows of Resources Miscellaneous Safety
Differences between expected and actual experience -$ (288,928)$ Net difference between projected and actual earnings on plan investments (20,911,026) (29,235,644) Total Deferred Inflows of Resources - Pension (20,911,026)$ (29,524,572)$

The $12,563,379 reported as deferred outflows of resources related to contributi ons subsequent the June 30, 2021 measurement date will be recognized as a reduction of the net pension liability during the fiscal year ending June 30, 2023.

The remaining amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in the future as pension expense as follows:

Measurement Period
Ended June 30 Miscellaneous Safety
2022 (4,825,510)$ (5,215,059)$
2023 (4,882,074) (4,679,128)
2024 (5,028,222) (5,684,260)
2025 (5,679,497) (7,923,631)
2026 - -
Thereafter - -
Deferred Outflows / (Inflows) of Resources

NOTE 8. DEFINED CONTRIBUTION PENSION PLAN

City provides a defined contribution retirement plan (the "Plan") for specified part -time, temporary and seasonal employees who work less than 1,000 hours per fiscal year in lieu of Social Security coverage. In a defined contribution plan, benefits depend solely on amount contributed to the plan plus investment earnings. The plan provisions were established by the City Council to comply with the Omnibus Budget Reconciliation Act of 1990. The plan is a qualified pension plan as specified by Internal Reven ue Code Section 414(I), and is administered by Nationwide Retirement Solutions.

Eligible employees are fully vested effective their dates of hire. If participating employees become eligible for participation in CalPERS, by virtue of working more than 1,0 00 hours per fiscal year or otherwise, contributions to the Plan shall cease once the employee is enrolled in CalPERS. If a participating employee is hired into a regular full-time position, all contributions and earnings in the plan are transferred to the City’s Deferred Compensation Plan, also administered by Nationwide Retirement Solutions. 82 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 8. DEFINED CONTRIBUTION PENSION PLAN (continued)

Contributions are equal to 7.5% of each participating employee's compensation and are made by the City.

Contributions are invested with a third party administrator in a liquid savings account. Earnings are at a variable rate and accrue daily commencing on the date the funds are posted. For the year ended Jun e 30, 2022, the City’s total payr oll and covered payroll was $624,392. The City made employer contributions of $46,864. The assets held in trust by the plan administrator had a fair value of $677,802 at June 30, 2022.

Distribution shall be by lump sum only, twelve months after termination of employment. Such distribution shall include investment earnings accrued to date of fund withdrawal. In the event of a participating employee’s death, the waiting period will be waived.

NOTE 9. OTHER POST-EMPLOYMENT BENEFITS

Plan Description

The City has established a retiree healthcare plan (Plan) and is participating in an agent multiple-employer defined benefit retiree healthcare plan. Following is the description of current retiree benefit plan provided to retired miscellaneous and safety members who retired on or after July 14, 1988:

Benefit types provided Medical only
Required service 5 years and retiring directly from City service Minimum Age 50
Dependent Coverage Yes
Benefit Minimum employer contribution in accordance
with the Public Employees Medical and Hospital
Care Act (PEMHCA)
Duration of Benefits As long as eligible employee is enrolled in CalPERS healthcare plans
There is no separately issued report for the Plan.

Employees Covered

As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:

Active employees 378
Inactive employees or beneficiaries currently receiving benefits 200 Total 578

83 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 9. OTHER POST-EMPLOYMENT BENEFITS (continued)

Contributions

The annual contribution is comprised of the pay-as-you go amount. For the fiscal year ended June 30, 2022, the City’s cash contributions were $3 46,532 of premium payments to CalPERS for PEMHCA health benefits. The City created a California Employer’s Retiree Benefit Trust (CERBT) account with CalPERS in fiscal year 2008 for the purpose of prefunding obligations.

Net OPEB Liability Information

The City’s net OPEB liability was measured as of June 30, 20 21 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 20 21 that was used to determine the June 30, 202 1 total OPEB liability, based on the following actuarial methods and assumptions:

Actuarial cost method Entry age normal
Asset valuation method Fair value basis
Amortization method Over 20 years using level percentage of payroll Actuarial Assumptions:

Discount rate 6.75%
Expected rate of return 6.75%
Inflation rate 2.50%
Payroll increases 2.75%
Healthcare cost trend rate 4.00%
Minimum contribution 4% annual increase in CalPERS minimum required contributions

The June 30, 2021 valuation reflects updated census, plan and rate information and healthcare trend rates.

In addition, all other actuarial assumptions used in the valuation were based on the results of t he 2017 CalPERS Experience Study f or the period from 1997 to 2015, in cluding updates to salary increases, mortality and retirement rates.

84 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 9. OTHER POST-EMPLOYMENT BENEFITS (continued)

Expected Rate of Return

The long-term expected rate of return on OPEB plan investments was determined using a building –block method in which 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 th e expected future real 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 allocation as of June 3 0, 2021 are summarized in the following table:

Asset class Target allocation
Long-term expected
real rate of return
CERBT
Global Equity 59.0% 7.545 %
Global Debt Securities 25.0% 4.250 %
Inflation Assets 5.0% 3.000 %
Commodities 3.0% 7.545 %
REITs 8.0% 7.250 %
Total 100.0%
Long-term expected rate of return is 6.75%

Discount Rate

The discount rate used to measure the City’s total OPEB liability was 6.75%. This discount rate assumes the City continues to fully fund for its retiree benefits through CERBT trust under its investment allocation strategy 1. The rate is reasonable given t he current level of actuarial funding and the City’s annual contributions to the CERBT trust. The projection of cash flows used to determine the discount rate is based on the assumption that the City’s contributions are made at rates equal to the actuarial ly determined contribution rates, in addition to the amount of annual benefit payments. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive emp loyees and beneficiaries. Therefore, the long -term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Change in Assumptions

The discount rate used to measure the City’s total OPEB liability was decreased from 7.28 percent to 6.75 percent for measurement period 2021.
85 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 9. OTHER POST-EMPLOYMENT BENEFITS (continued)

Schedule of Changes in Net OPEB Liability

Increase (Decrease)
Total OPEB in Plan Fiduciary Net OPEB
Liability Net Position Liability (Asset)
(a) (b) (c) = (a) - (b)
Balance at 06/30/2020 (measurement date) 10,631,671$ 5,765,120$ 4,866,551$ Changes recognized for the measurement period:

Service cost 247,011 - 247,011 Interest 770,296 - 770,296 Differences between expected
and actual experience 949,686 - 949,686 Changes of assumptions 686,927 - 686,927 Contributions - employer - 962,477 (962,477) Net investment income - 1,587,754 (1,587,754) Benefit payments, including refunds of
member contributions (762,477) (762,477) - Administrative expense - (2,187) 2,187 Net changes 1,891,443 1,785,567 105,876 Balance at 06/30/2021 (measurement date) 12,523,114$ 7,550,687$ 4,972,427$

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate

The following presents the net OPEB liability 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 measureme nt period ended June 30, 2021:

Discount Rate Net OPEB Liability Impact on Liability

5.75% 6,235,804$ 1,263,377$

6.75% 4,972,427 -

7.75% 3,899,094 (1,073,333)
86 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 9. OTHER POST-EMPLOYMENT BENEFITS (continued)

Sensitivity of the Net OPEB Liability to Changes in Healthcare Cost Trends

The following presents the net OPEB liability of the City if it were calculated using a healthcare cost trend rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2021:

Healthcare Cost
Trend Rates Net OPEB Liability Impact on Liability
1% Decrease 3,716,972$ (1,255,455)$
Current Rate 4,972,427 -
1% Increase 6,485,051 1,512,624

OPEB Plan Fiduciary Net Position

CalPERS issues a publicly available CERBT financial report that may be obtained from the CalPERS’ website at www.calpers.ca.gov. The plan itself does not issue financial statements.

Recognitions 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 gain or lo ss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources 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.

Sources of Gains and Losses Recognition Period

Net differences between projected and actual
earnings on OPEB plan investments
5 years
All other amounts 9 years

87 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 9. OTHER POST-EMPLOYMENT BENEFITS (continued)

OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB

For the fiscal year ended June 30, 202 2, the City recognized OPEB expense of $ 584,041 At the end of the fiscal year, the City reported deferred outflows and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to measurement period 346,532$ -$ Differences between expected and actuarial experience 844,165 (747,115) Changes of assumptions 818,649 -
Differences between projected and actual earnings 144,147 (928,682) Total 2,153,493$ (1,675,797)$

The $346,532 reported as deferred outflows of resources related to contribution s subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2023.

The remaining $131,164 of deferred outflows and deferred inflows of resources will be recognized in the future as OPEB expense as follows:

Measurement period Deferred Outflows/(Inflows)
Ended June 30 of Resources
2022 (201,584)$
2023 (202,046)
2024 (142,262)
2025 (50,322)
2026 181,847
Thereafter 545,531

NOTE 10. RISK MANAGEMENT

The City is exposed to various general liability risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City established self - insurance programs and maintains contracts with various insurance companies to manage excessive risks.

The City uses the Self Insurance Fund to account for and finance risks for claim liabilities. The estimated liability for pending and incurred but not reported (IBNR) claims at June 30, 2022, has been reported in the financial statements as claims payable in the Self Insurance Internal Service Fund and is based on history and actuarial studies. There were no significant changes in insurance coverage from the prior year, and there were no settlements in excess of the insurance coverage in any of the prior three years. 88 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 10. RISK MANAGEMENT (continued)

General Liability and Worker’s Compensation Insurance

The City is self -insured for general liability through Public Risk Innovation, Solutions, and Management (PRISM) with a self-insured retention (SIR) of $250,000. The total general liability policy limit is $25,000,000, including the $250,000 SIR. The Risk Manager administered claims against the City.

The City is also self-insured for the first $125,000 on each workers’ compensation claim and is a participating member agency of an excess worker’s compensation insurance program that covers losses up to the statutory limit. Athens Administrators is the City’s third party workers’ compensation claims administrator. Loss control services are obtained on an as needed basis.

Changes in the balance of claim liabilities during the past two years are as follows:

General Worker's Total
Liability Compensation Claims
Liability - June 30, 2020 1,814,000$ 1,951,000$ 3,765,000$ Current fiscal year claims 77,359 742,079 819,438 Claims payments (119,385) (682,568) (801,953) Changes to estimates (464,974) 138,489 (326,485) Liability - June 30, 2021 1,307,000 2,149,000 3,456,000 Current fiscal year claims 438,630 702,056 1,140,686 Claims payments (78,801) (335,881) (414,682) Changes to estimates (215,829) 308,825 92,996 Liability - June 30, 2022 1,451,000$ 2,824,000$ 4,275,000$

The City’s accrued liability at year-end of $4,275,000 was established based on the 70% confidence level of funding of the actuarially computed expected liability.

Property Insurance

The City participates in the Public Entity Property Insurance Program (PEPIP) through Alliant In surance Services for coverage of the City's physical assets. This includes all real and personal property owned by the City or for which the City has assumed responsibility to insure, e.g. buildings, structures, computer equipment, heavy-duty equipment, mechanical equipment, veh icles, furniture and fixtures. The deductible varies depending on the type of loss.

89 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 11. COMMITMENTS AND CONTINGENCIES

Federal and State Grants

The City has received federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursement to the granting agency for expenditures disallowed under terms of the g rant. City management believes such disallowances, if any, would not have a material effect on the City’s financial position.

Litigation

The City is a defendant in a number of lawsuits that have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty.

In the opinion of the City’s legal counsel, these actions when finally adjudicated will not have a material effect on the City’s financial position.

Significant Encumbrances

As discussed in Note 1, Budgetary information, Budgetary basis of accounting, encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. The encumbrances and related appropriation lapse at the end of the year, but are re -appropriated and become part of the subsequent year’s budget because performance under the executory contract is expected in the next year.

At fiscal year end, the significant encumbrances expected to be honored upon performance by the vendor in the next year were as follows:

Fund Encumbrance Amount
Governmental Funds:

Federal, State, and Local Grants
Major Special Revenue Fund Network & Datacenter Equipment 514,209$ Total 514,209$
Enterprise Fund:

Wastewater Fund Broadway Creek Restoration 1,874,224$
Pipeline Lining and Rehabilitation 1,228,744
Truck Mounted Equipment 513,240
Total 3,616,208$

90 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 12. INTERFUND BALANCES AND TRANSFERS

Due To/Due From

The composition of due to/due from other funds for the fiscal year ended June 30, 2022 is as follows:

Due To Due From Amount
General Fund Non-Major Special
Revenue Fund 253,700$
Non-Major Capital
Project Fund 6,348
Totals 260,048$

The amounts due to the General Fund from the CDBG nonmajor special revenue fund and the Parks and Recreation Improvement Grants capital project fund were due to cash flow needs at fiscal year-end. These funds will be repaid in the next fiscal year, as grant reimbursements become available to the borrowing fund.

Transfers In/Transfers Out

Transfers in and transfers out for the fiscal year ended June 30, 2022 are as follows:

Major Funds
Transfers Out
General
Fund
Debt
Service
Capital
Projects Total
Major Funds
General Fund -$ 8,264,499$ -$ 8,264,499$ Federal, State, and Local Grants Fund - - 670,503 670,503 Wasterwater Fund - 484,433 - 484,433 Non-Major Funds
Internal Service - 216,877 - 216,877 Special Revenue 209,841 153,307 592,553 955,701 Total 209,841$ 9,119,116$ 1,263,056$ 10,592,013$
Transfers In
Non-Major Funds

The transfers from the General fund , the Wastewater fund, the Internal Service funds, and the non -major special revenue funds to the Debt Service fund are for funding to fund the pension obligation bonds debt service payments.

The transfers from the non -major special revenue fund s provide annual subsidy to the General Fund to fund the police o fficers assigned to patrol schools in the Grossmont Union High School District and to manage the Crime Free Multi -Housing program. The General Fund also receive d five percent of the Certified Access Specialist Program fees collected for administration costs.

The transfers from the major special revenue fund to the non -major capital projects funds were ARPA funding for public safety energy efficiency, and recreation center upgrades.

91 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 12. INTERFUND BALANCES AND TRANSFERS (continued)

Transfers In/Transfers Out (continued)

The transfers from non-major special revenue funds to the nonmajor capital project funds are funding for American with Disabilities Act (ADA) curb ramps and sidewalks program, neighborhood streetlights , Downtown bollards, and park facilities improvements.

NOTE 13. FUND BALANCES AND DEFICITS

Fund balances for the fiscal year ended June 30, 2022 are as follows:

General
Low and
Moderate
IncomeHousing
Asset
Federal,
State, and
Local Grants Non-Major
Total
Governmental
Funds
Restricted
Animal shelter operations -$ -$ -$ 41,549$ 41,549$ Animal shelter project - - - 266,637 266,637 Community development - 7,392,013 76,018 1,826,166 9,294,197 Debt service - - - 2 2 Loans receivable - 10,202,528 648,536 10,960,039 21,811,103 Public safety - - 450,445 449,565 900,010 Public works project - - 57,223 587,865 645,088 RTCIP impact fee - - - 754,879 754,879 RMRA - - - 2,845,447 2,845,447 Transportation projects - - - 3,292,383 3,292,383 PARS Trust for UAL 1,810,152 - - - 1,810,152 Committed 15,883,202 - - 596,043 16,479,245 Assigned
Capital projects - - - 14,942,382 14,942,382 Economic uncertainty 15,883,202 - - - 15,883,202 Unfunded retirement obligations 11,189,848 - - - 11,189,848 Unassigned 17,281,670 - (77,458) (6,348) 17,197,864 Totals 62,048,074$ 17,594,541$ 1,154,764$ 36,556,609$ 117,353,988$ Special Revenue

The General Fund’s committed fund balance of $15,883,202 is established as an operating reserve based on 20% of annual expenditures. This reserve serves as both a last resort to mitigate the effect of unexpected events outside of the City’s control, and a source of cash flow for the General Fund between the months of July and December when expenditures typically exceed revenues until cash receipts from the City’s primary revenue sources begin to come in.

Fund Deficit

The $77,458 fund deficit reported for the Federal, State, and Local Grants major fund was for Community Development Grants resulting from expenditures incurred before the grant revenue was received.

The fund deficit reported for nonmajor governmental funds was for the Parks and Recreation Improvement Grants Capital Projects Fund. The $6,348 deficit in the fund was due to expenditures being incurred before the grant revenue was received.

92 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 14. JOINT VENTURES

The City represents a significant membership share in two of the joint powers authorities to which it belongs.

A summary of each joint power authority, the City's participation, and any related party transactions with each authority are as follows:

Heartland Fire Training Authority

The purpose of Heartland Fire Training Authority (HFTA) is to provide a fire-fighting training facility and training courses for personnel of the member agencies. HFTA was created on October 1, 1999, as amended, by a Joint Powers Agreement (JPA) between a number of cities and fire protection districts in San Diego County.

For the current fiscal year, the JPA members consist of the Cities of El Cajon, La Mesa, Lemon Grove, and Santee, the Fire Protection Districts of Alpine, Bonita-Sunnyside, Lakeside, and San Miguel, the Viejas Band of Kumeyaay Indians, and the Barona Band of Mission Indians. One elected official from each member agency is appointed to the HFTA Commission. The Commission approves an annual budget based on the costs of operating the facility and providing training to member agency personnel. El Cajon’s membership share was

14.14% for the fiscal year ending June 30, 2022.

On May 12, 2020 , HFTA entered into a Facility Lease Agreement with the City of El Cajon. The executed agreement included a proposed capital improvement project based on a prioritized list of capital improvement needs. The lease agreement provides for annual rent payments of $70,674 that was utilized by the City of El Cajon to fund th e capital improvement project. The City als o provides clerical and accounting services for HFTA. Charges for services were $33,334 for the fiscal year ending June 30, 2022.

Annual financial statements may be obtained from HFTA, c/o City of El Cajon, Finance Department, 200 Civic Center Way, El Cajon, CA 92020.

Heartland Communications Facility Authority

The purpose of the Heartland Communication Facility Authority (HCFA) is to equip, maintain, operate and staff a facility to provide emergency call receiving and dispatching services to member agencies. HCFA was created on June 25, 1986, as amended, by a Joint Powers Agreement (JPA) between a number of cities and fire protection districts in San Diego County. For the current fiscal year, the JPA members consist of the Cities of El Cajon, La Mesa, Lemon Grove, and Santee, and the Fire Protection Districts of Alpine, Bonita-Sunnyside, Lakeside, the Viejas Band of Kumeyaay Indians, and San Miguel . One elected official from each member agency is appointed to the HCFA Commission. The commission approves an annual budget based on the costs of operating the Authority. El Cajon’s membership share was 26.92% for the fiscal year ending June 30, 2022.

HCFA leases a portion of the property located at 100 E. Lexington Avenue from the City. Lease payments totaled $ 54,518 for the fiscal year ending June 30, 2022. The City also provides clerical and accounting services for HCFA. Charges for services were $56,011 for the fiscal year ending June 30, 2022.

Annual financial statements may be obtained from HCFA, c/o City of El Cajon, Finance Department, 200 Civic Center Way, El Cajon, CA 92020.

93 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 15. TAX ABATEMENTS

Sunroad E C Land, Inc.

In March 2013, as part of the City’s revitalization program, the City and Sunroad E C Land, Inc. (Sunroad), entered into an Owner Participation and Development Agreement for redevelopment of real property. Sunroad owns the land and agreed to construct a BMW motorcar d ealership (BMW) consistent with BMW USA’s new image requirement that includes modern European style frontage, showroom service areas, and customer waiting areas. In consideration for Sunroad’s investment in the City, the City agreed to return to Sunroad a percentage of the net sales taxes (based on sales taxes in excess of $93,000 per quarter) derived by BMW as follows:

Percentage of Net
Fiscal Year Operating Years Sales Taxes
FY2012-13 through FY2016-17 Years 1 through 5 75%
FY2017-18 through FY2021-22 Years 6 through 10 60%
FY2022-23 through FY2026-27 Years 11 through 15 50%

In FY 2021-22, the total amount rebated to Sunroad under this agreement was $41,950.

El Cajon Hotels, LP and Magnolia Hotel, Inc.

In August 2015, as part of the City’s revitalization program, the City and El Cajon Hotels, Inc. entered into a Disposition and Development Agreement to develop real property into a 120-room Courtyard by Marriott Hotel (Courtyard). As an economic incentive to building and operating a quality hotel , the City and El Cajon Hotel, Inc. agreed to a transient occupancy tax (TOT) rebate sharing program . In December 2015, the TOT agreement was assigned by El Cajon Hotel, Inc. to Magnolia Hotel, Inc. (Hotel) as follows:

Percentage of TOT
Fiscal Year Operating Years rebate due to Hotel
FY2017-18 through FY2021-22 Years 1 through 5 100%
FY2022-23 through FY2026-27 Years 6 through 10 50%

In FY 2021-22, the total amount rebated to the Hotel under this agreement was $594,926.

Tipton Enterprises, Inc. dba Tipton Honda

In June 2015, the City and Tipton Enterprises, Inc. entered into an Owner Participation and Development Agreement to redevelop the existing Honda dealership that included the acquisition of the adjacent property for expansion. Tipton Honda represented that they w ill invest approximately $2.3 million into the acquisition and redevelopment of this dealersh ip. In consideration for this approximate investment, the City agreed to return to Tipton Honda a percentage of the net sales taxes (based on sales taxes in exces s of $342,000 per year) not to exceed $2.3 million as follows:

Percentage of Net
Fiscal Year Operating Years Sales Taxes
FY2017-18 through FY2022-23 Years 1 through 6 65%
FY2023-24 through FY2028-29 Years 7 through 12 50%

In FY 2021-22, the City did not rebate any taxes to Honda under this agreement. 94 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2022

NOTE 15. TAX ABATEMENTS (continued)

Oremor European, LLC dba Mercedes-Benz of El Cajon

In February, 2018, the City and Oremor European, LLC entered into an operating covenant for operation of a first-class motor vehicle dealership in compliance with all facility and image requirements of Mercedes -Benz.

As an economic incentive to operate the dealership, the City agreed to return to Mercedes-Benz a percentage of net sales taxes (based on sales taxes in excess of $300,000 per year) as follows:

Percentage of Net
Fiscal Year Operating Years Sales Taxes
FY2018-19 through FY2022-23 Years 1 through 5 75%
FY2023-24 through FY2027-28 Years 6 through 10 60%

In FY 2021-22, the total amount rebated to Mercedes-Benz under this agreement was $282,621.

NOTE 16. PRIOR PERIOD ADJUSTMENTS

During the previous fiscal year, the City received lease payments from Verizon Wireless for a small cell site.

The property where this smal l cell site is located was sold by the City during fiscal year 2021. The lease payments were recognized as revenue in the prior fiscal year. The amount received should have been placed in a liability account until remitted to the correct owner.

In fiscal year 2022, the City entered a prior period adjustment to reduce beginning fund balance of the City’s General fund to correct the overstatement of revenue in the prior year.

General
Fund
Beginning fund balance, July 1, 2021, as
reported 53,014,155$
Recognition of liability instead of revenue (13,915)
Beginning fund balance, July 1, 2021, as
restated 53,000,240$

95 96
The Valley of Opportunity

REQUIRED SUPPLEMENTARY INFORMATION
97 Actual Variance with
Original Final Amounts1 Final Budget

REVENUES
Taxes
Sales and use 39,189,123$ 39,189,123$ 45,502,200$ 6,313,077$ Property 22,809,091 22,809,091 22,501,821 (307,270) Franchise 6,553,000 6,553,000 6,772,687 219,687 Transient lodging 2,353,000 2,353,000 2,797,309 444,309 Business licenses 827,206 827,206 735,274 (91,932) Property transfer 422,444 422,444 984,158 561,714 Total taxes 72,153,864 72,153,864 79,293,449 7,139,585 Intergovernmental:

Motor vehicle license fees 66,750 66,750 119,272 52,522 Reimbursements 988,200 1,598,200 1,826,547 228,347 Total intergovernmental 1,054,950 1,664,950 1,945,819 280,869 Licenses and permits 1,819,000 1,819,000 1,939,791 120,791 Fines and forfeitures 684,000 684,000 471,784 (212,216) Special assessments 360,000 360,000 369,284 9,284 Charges for services:

Planning and engineering 1,308,460 1,308,460 1,303,490 (4,970) Public safety 693,500 693,500 662,990 (30,510) All others 2,202,480 2,202,480 2,018,728 (183,752) Total charges for services 4,204,440 4,204,440 3,985,208 (219,232) Use of money and property 2,731,300 2,731,300 (239,949) (2,971,249) Other:

Sale of property - - 58,182 58,182 Miscellaneous 421,000 421,000 261,676 (159,324) Total other 421,000 421,000 319,858 (101,142) Total revenues 83,428,554 84,038,554 88,085,244 4,046,690 (Continued)
basis combine an additional fund pursuant to GASB Statement No.54.

See Notes to Required Supplementary Information on page 103. 1 Includes only the General Fund as defined by the City's budget. Financial statements prepared on a GAAP Budgeted Amounts

CITY OF EL CAJON
Budget and Actual (Budgetary Basis)
General Fund
For the fiscal year ended June 30, 2022
Schedule of Revenues, Expenditures and Changes in Fund Balance Required Supplementary Information
98 Actual Variance with
Original Final Amounts1 Final Budget

EXPENDITURES
General government:

City council 580,230$ 565,230$ 516,581$ 48,649$ Council contingency 60,000 60,000 25,000 35,000 City manager 2,375,902 2,661,902 2,661,197 705 Community services and events 125,450 125,450 93,923 31,527 City attorney 776,059 546,059 537,456 8,603 City clerk and elections 564,129 564,129 536,774 27,355 Human resources 937,922 881,922 864,757 17,165 Finance 2,020,542 2,035,542 2,035,303 239 Total general government 7,440,234 7,440,234 7,270,991 169,243 Public safety:

Police:

Administration 3,269,186 3,215,186 3,215,007 179 Inspection and training 2,226,461 2,393,741 2,392,880 861 Records 1,306,694 931,694 893,352 38,342 Communications 2,786,519 2,766,519 2,640,826 125,693 Patrol 14,673,609 14,667,809 14,639,295 28,514 Special operations unit 2,629,750 2,815,910 2,814,876 1,034 Traffic enforcement 1,883,866 1,757,346 1,717,603 39,743 Investigation 5,494,943 5,327,823 5,272,266 55,557 Laboratory 986,100 986,100 917,413 68,687 Auxillary 142,367 142,367 126,333 16,034 Animal control 1,059,600 1,079,600 1,077,744 1,856 Total police 36,459,095 36,084,095 35,707,595 376,500 Fire:

Administration 2,267,109 2,067,109 2,011,325 55,784 Emergency medical services 320,200 320,200 289,515 30,685 Suppression 11,411,624 11,916,624 11,916,200 424 Heartland Fire and Rescue 1,940,722 2,030,722 2,028,524 2,198 Total fire 15,939,655 16,334,655 16,245,564 89,091 Total public safety 52,398,750 52,418,750 51,953,159 465,591 (Continued)
basis combine an additional fund pursuant to GASB Statement No.54 See Notes to Required Supplementary Information on page 103.

CITY OF EL CAJON
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance For the fiscal year ended June 30, 2022
Budgeted Amounts
1 Includes only the General Fund as defined by the City's budget. Financial statements prepared on a GAAP Budget and Actual (Budgetary Basis)
Required Supplementary Information
99 Actual Variance with
Original Final Amounts1 Final Budget
Public works:

Administration 508,315$ 538,315$ 509,175$ 29,140$ Facilities maintenance 2,393,738 2,368,738 2,039,385 329,353 Engineering 908,123 933,123 714,630 218,493 Traffic engineering and maintenance 1,757,500 1,817,500 1,658,787 158,713 Parks 2,064,291 2,004,291 1,441,043 563,248 Street maintenance 846,221 846,221 520,292 325,929 Total public works 8,478,188 8,508,188 6,883,312 1,624,876 Recreation 3,305,852 3,305,852 3,162,325 143,527 Community development:

Housing 405,931 405,931 361,876 44,055 Planning 1,155,997 1,155,997 925,720 230,277 Building and fire safety 1,298,559 1,298,559 995,575 302,984 Total community development 2,860,487 2,860,487 2,283,171 577,316 Total expenditures 74,483,511 74,533,511 71,552,958 2,980,553 Excess (deficiency) of revenues over
(under) expenditures 8,945,043 9,505,043 16,532,286 7,027,243

OTHER FINANCING SOURCES (USES)
Transfers in 210,507 210,507 209,841 666 Transfers out (9,255,550) (9,255,550) (9,255,550) - Total other financing sources (uses) (9,045,043) (9,045,043) (9,045,709) 666 Net change in fund balance (100,000) 460,000 7,486,577 7,027,909 Fund balance, beginning 53,014,155 53,014,155 53,014,155 - Prior period adjustment (note 16) (13,915) (13,915) (13,915) - Fund balance, beginning restated 53,000,240 53,000,240 53,000,240 -

Fund balance, ending 52,900,240$ 53,460,240$ 60,486,817$ 7,027,909$ (Concluded)
basis combine an additional fund pursuant to GASB Statement No.54 See Notes to Required Supplementary Information on page 103. 1 Includes only the General Fund as defined by the City's budget. Financial statements prepared on a GAAP For the fiscal year ended June 30, 2022
Budgeted Amounts

CITY OF EL CAJON
Schedule of Revenues, Expenditures and Changes in Fund Balance General Fund
Budget and Actual (Budgetary Basis)
Required Supplementary Information
100
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Charges for services -$ -$ 29,805$ 29,805$ Use of money and property 1 1 47,476 47,475 Other 200,420 200,420 428,046 227,626 Total revenues 200,421 200,421 505,327 304,906

EXPENDITURES
Current:

Community development 3,234,821 3,234,821 689,917 2,544,904 Capital outlay 2,000 2,000 - 2,000 Total expenditures 3,236,821 3,236,821 689,917 2,546,904 Excess (deficiency) of revenues over
(under) expenditures (3,036,400) (3,036,400) (184,590) 2,851,810

OTHER FINANCING SOURCES
Transfers in 303,000 303,000 - (303,000) Total other financing sources 303,000 303,000 - (303,000) Net change in fund balance (2,733,400) (2,733,400) (184,590) 2,548,810 Fund balance, beginning 18,342,189 18,342,189 18,342,189 - Fund balance, ending 15,608,789$ 15,608,789$ 18,157,599$ 2,548,810$ See Notes to Required Supplementary Information on page 103.

Budgeted Amounts

CITY OF EL CAJON
Low and Moderate Income Housing Asset Major Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Budgetary Basis)
For the fiscal year ended June 30, 2022
Required Supplementary Information
101
Low and
Moderate
Income
General Housing Asset
Actual revenues from budgetary basis schedules 88,085,244$ 505,327$ Differences - Budget to GAAP:

GAAP reporting entity differences:

Recreation Special Programs is not budgeted in General Fund 669,746 - Magnolia Performing Arts is not budgeted in General Fund 3,202,620 - Long-term lease interest and revenue recognition as required by GASB Statement No. 87 146,426 -
Loan repayments are budgetary resources but are not revenues for financial reporting purpose - (426,881) Total revenues as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds (page 42) 92,104,036 78,446 Actual expenditures from budgetary basis schedules 71,552,958 689,917 Differences - Budget to GAAP
GAAP reporting entity differences:

Recreation Special Programs is not budgeted in General Fund 518,419 - Magnolia Performing Arts is not budgeted in General Fund 3,593,788 - Long-term lease principal, interest, and expense recognition as required by GASB Statement No. 87 793,338 -
Loans forgiven are not outflows of budgetary resources but are expenditures for financial reporting purpose - 23,771 Total expenditures as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds (page 42) 76,458,503 713,688 Actual other financing sources (uses) from budgetary basis schedules (9,045,709) - Differences - Budget to GAAP
GAAP reporting entity differences:

Recreation Special Programs is not budgeted in General Fund (8,949) - Magnolia Performing Arts is not budgeted in General Fund 1,000,000 - Lease acquisition from recognition of leased asset as required by GASB Statement No. 87 793,338 -
Total other financing sources (uses) as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds (page 42) (7,261,320) - Net change in fund balances as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds (page 42) 8,384,213 (635,242) Fund balances, beginning of year (GAAP Basis) (page 42) 53,677,776 18,229,783 Prior period adjustment (note 16) (13,915) - Fund balances, restated beginning of year (GAAP Basis) (page 42) 53,663,861 18,229,783 Fund balances, end of year (GAAP Basis) (page 42) 62,048,074$ 17,594,541$ See Notes to Required Supplementary Information on page 103.

Recreation Special Programs Fund and Magnolia Performing Arts Fund are included with the General Fund for financial reporting purposes on a GAAP basis, pursuant to GASB Statement No.54

CITY OF EL CAJON
Reconciliation of Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budgetary to GAAP Basis
For the fiscal year ended June 30, 2022
Major Governmental Funds
Required Supplementary Information
102

CITY OF EL CAJON
Notes to the Required Supplementary Information
Budgetary Information
For the fiscal year ended June 30, 2022

1. Budgetary control and accounting
Budgets are generally prepared on a basis consistent with generally accepted accounting principles (GAAP), with the exception of the General Fund, Low and Moderate Income Housing Asset Fund Special Revenue Fund, HOME Special Revenue Fund and Community Development Block Grant Special Revenue Fund. The differences of actual amounts presented using the budgetary basis versus GAAP basis for the major governmental funds are presented in the Reconciliation of Schedules of Revenues, Expenditures, and Change in Fund Balances - Budgetary to GAAP Basis on page 102.

The budget process includes submittal of each department's budget request for the next fiscal year, a detailed review of each department's proposed budget by the City Manager, and a final recommended budget that is transmitted to the City Council for review before the required date of adoption. Once transmitted to the City Council, the preliminary budget is made available for inspection. Prior to adoption, a budget workshop meeting is held by the City Council that includes a public hearing to give the public the opportunity to comment upon the preliminary budget. Notice of such public hearing is published in a newspaper of general circulation and the City's website.

The approval of the budget is accomplished by the adoption of a Budget Resolution by the City Council, prior to the beginning of the fiscal year. Annual budgets are adopted for all governmental funds except for the Federal, State, and Local Grants and Various Donations Special Revenue Funds and Capital Projects Funds. The Capital Projects Fund is appropriated on a project-lenth basis. The level of budgetary control is at the department level. For purposes of this requirement, each fund other than the General Fund is considered to be a separate department. The City Manager is authorized to transfer appropriations within a departmental budget. Any appropriation transfers between departments or funds require City Council approval.

Appropriations for operations lapse at year-end to the extent that they have not been expended or encumbered.

2. General Fund
The General Fund Budgetary Comparison Schedule presented on pages 96-98 is the budgetary and actual amounts as reported in the City's budget. The financial statements for the General Fund, prepared on a GAAP basis, include two funds that were considered special revenue funds prior to the implementation of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. These additional funds that are combined with the General Fund (GAAP basis) are the Recreation Special Programs and Magnolia Performing Arts funds. These two funds are budgeted as separate individual funds, but are consolidated into the General Fund for financial reporting purposes. A reconciliation of the Schedule of Revenues, Expenditures and Changes in Fund Balances from budgetary to the GAAP Basis is presented on page 102. The Combined Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance of the General Fund (GAAP Basis) and budgetary comparison schedules of the two funds are presented as Supplementary Information on pages 114-117.

3. Federal, State, and Local Grants Major Special Revenue Fund Budgetary to actual comparison schedule is not presented for the Federal, State, and Local Grants Special Revenue Fund because this fund is not budgeted annually. The fund does not have appropriated budget since the grant awards, agreements and requirements control the use of the resources and sometimes span a period of more than one fiscal year.
103
2013-14 2014-15 2015-16
Total Miscellaneous Pension Liability
Service cost 2,765,638$ 2,565,998$ 2,551,598$ Interest on total pension liability 13,910,118 14,457,238 14,844,856 Changes in benefits - - - Differences between expected and actual experience - 57,598 (1,504,597) Changes in assumptions - (3,292,566) - Benefit payments, including refunds of employee contributions (9,543,379) (10,108,043) (10,781,021) Net change in total pension liability 7,132,377 3,680,225 5,110,836 Total pension liability - beginning 188,857,112 195,989,489 199,669,714 Total Miscellaneous pension liability - ending (a) 195,989,489$ 199,669,714$ 204,780,550$ Miscellaneous Plan fiduciary net position
Contributions - employer 4,086,776$ 4,676,850$ 5,294,296$ Contributions - employee 1,273,729 1,169,243 1,142,365 Net investment income 21,642,095 3,217,684 736,004 Benefit payments (9,543,379) (10,108,043) (10,781,021) Plan to plan resource movement - 256 - Administrative expense - (162,571) (86,686) Other miscellaneous income(expense) - - - Net change in plan fiduciary net position 17,459,221 (1,206,581) (3,695,042) Plan fiduciary net position - beginning 125,984,050 143,443,271 142,236,690 Miscellaneous Plan fiduciary net position - ending (b) 143,443,271$ 142,236,690$ 138,541,648$ Net pension liability (asset) - ending (a)-(b) 52,546,218$ 57,433,024$ 66,238,902$ Miscellaneous Plan fiduciary net position as a percentage of the total pension liability (b)/(a) 73.19% 71.24% 67.65% Miscellaneous Plan covered payroll 2
14,761,877$ 14,329,579$ 14,348,523$
Net pension liability (asset) as a percentage of Miscellaneous Plan covered payroll 355.96% 400.80% 461.64%
See Note 1 of the Notes to Required Supplementary Information - Net Pension Liability (Asset) on page 109.

Measurement Period
2 Covered payroll represents the payroll on which contributions to the pension plan are based.

CITY OF EL CAJON
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios - Miscellaneous Plan for the Measurement Periods ending June 30
Last Eight Years 1
1 Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. 104
2016-17 2017-18 2018-19 2019-20 2020-21
2,765,699$ 2,812,784$ 2,825,180$ 2,977,187$ 2,777,695$ 15,080,991 15,414,119 16,060,380 16,469,083 16,884,141 - - - - - (1,052,850) (217,246) 3,530,348 294,443 937,913 11,547,296 (1,094,357) - - - (11,469,789) (12,329,214) (13,120,445) (13,959,312) (14,999,589) 16,871,347 4,586,086 9,295,463 5,781,401 5,600,160 204,780,550 221,651,897 226,237,983 235,533,446 241,314,847 221,651,897$ 226,237,983$ 235,533,446$ 241,314,847$ 246,915,007$ 5,729,154$ 5,952,503$ 7,126,866$ 7,760,121$ 55,499,867$ 1,179,611 1,148,838 1,240,802 1,221,300 1,101,687 15,602,402 12,639,219 10,236,329 8,085,826 41,616,905 (11,469,789) (12,329,214) (13,120,445) (13,959,312) (14,999,589) - (364) 2,323 - - (204,547) (232,773) (111,407) (227,661) (164,195) - (442,040) 364 - - 10,836,831 6,736,169 5,374,832 2,880,274 83,054,675 138,541,648 149,378,479 156,114,648 161,489,480 164,369,754 149,378,479$ 156,114,648$ 161,489,480$ 164,369,754$ 247,424,429$ 72,273,418$ 70,123,335$ 74,043,966$ 76,945,093$ (509,422)$

67.39% 69.00% 68.56% 68.11% 100.21%
13,975,942$ 14,120,404$ 14,671,685$ 15,802,477$ 14,846,044$ 517.13% 496.61% 504.67% 486.92% -3.43%
Measurement Period
105
2013-14 2014-15 2015-16
Total Safety Plan pension liability
Service cost 3,989,127$ 4,099,136$ 4,327,007$ Interest on total pension liability 19,271,768 20,106,901 20,881,842 Changes in benefits - - - Differences between expected and actual experience - 1,748,846 704,978 Changes in assumptions - (4,926,806) - Benefit payments, including refunds of employee contributions (13,894,694) (14,624,385) (15,165,608) Net change in total pension liability 9,366,201 6,403,692 10,748,219 Total pension liability - beginning 261,909,693 271,275,894 277,679,586 Total Safety Plan pension liability - ending (a) 271,275,894$ 277,679,586$ 288,427,805$ Safety Plan fiduciary net position
Contributions - employer 5,671,725$ 7,064,751$ 7,138,821$ Contributions - employee 1,408,399 1,452,168 1,448,543 Net investment income 28,540,504 4,131,876 913,046 Benefit payments (13,894,694) (14,624,385) (15,165,608) Plan to plan resource movement - - - Administrative expense - (209,628) (113,503) Other Miscellaneous Income/(Expense) - - - Net change in plan fiduciary net position 21,725,934 (2,185,218) (5,778,701) Plan fiduciary net position - beginning 166,698,392 188,424,326 186,239,108 Safety Plan fiduciary net position - ending (b) 188,424,326 186,239,108 180,460,407 Net pension liability (asset) - ending (a) - (b) 82,851,568$ 91,440,478$ 107,967,398$ Safety Plan fiduciary net position as a percentage
of the total pension liability (b)/(a) 69.46% 67.07% 62.57% Safety Plan covered payroll 2
14,089,384$ 15,063,157$ 15,983,328$
Net pension liability as percentage of Safety Plan covered payroll 588.04% 607.05% 675.50% See Note 1 of the Notes to Required Supplementary Information - Net Pension Liability (Asset) on page 109. 2 Covered payroll represents the payroll on which contributions to the pension plan are based.

Last Eight Years 1

CITY OF EL CAJON
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios - Safety Plan for the Measurement Periods ending June 30
1 Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable.

Measurement Period
106
2016-17 2017-18 2018-19 2019-20 2020-21
4,627,095$ 4,665,299$ 4,417,341$ 4,723,268$ 5,236,365$ 21,187,689 21,939,641 22,690,389 23,341,882 24,631,101 - - - - - (4,240,228) 2,153,863 791,993 (650,086) 8,209,825 17,772,474 (1,270,346) - - - (15,884,588) (16,516,560) (17,029,399) (17,968,239) (19,032,740) 23,462,442 10,971,897 10,870,324 9,446,825 19,044,551 288,427,805 311,890,247 322,862,144 333,732,468 343,179,293 311,890,247$ 322,862,144$ 333,732,468$ 343,179,293$ 362,223,844$ 7,963,467$ 8,172,881$ 9,762,519$ 11,019,557$ 111,393,591$ 1,501,090 1,391,912 1,663,961 1,756,898 1,882,796 20,358,562 16,375,994 13,272,580 10,470,492 58,360,338 (15,884,588) (16,516,560) (17,029,399) (17,968,239) (19,032,740) - (474) - - - (266,438) (302,512) (144,636) (296,337) (214,959) - (574,475) 474 - - 13,672,093 8,546,766 7,525,499 4,982,371 152,389,026 180,460,407 194,132,500 202,679,266 210,204,765 215,187,136 194,132,500 202,679,266 210,204,765 215,187,136 367,576,162 117,757,747$ 120,182,878$ 123,527,703$ 127,992,157$ (5,352,318)$

62.24% 62.78% 62.99% 62.70% 101.48%
15,120,732$ 15,449,544$ 14,818,817$ 16,153,448$ 18,068,893$ 778.78% 777.91% 833.59% 792.35% -29.62%
Measurement Period
107
Fiscal Year
Ending
June 30,
Actuarially
Determined
Contribution
Contributions in
relation to the
actuarially
determined
contributions
Contributions
deficiency
(excess)
Covered
payroll 2
Contributions
as a percentage
of covered
payroll
Miscellaneous
2013-14 4,086,776$ (4,086,776)$ -$ 14,761,877$ 27.68% 2014-15 4,274,354 (4,676,850) (402,496) 14,329,579 32.64% 2015-16 5,106,525 (5,294,296) (187,771) 14,348,523 36.90% 2016-17 5,525,288 (5,729,154) (203,866) 13,975,942 40.99% 2017-18 5,952,503 (5,952,503) - 14,120,404 42.16% 2018-19 6,938,792 (7,126,866) (188,074) 14,671,685 48.58% 2019-20 7,760,121 (7,760,121) - 15,802,477 49.11% 2020-21 3
8,272,207 (55,499,867) (47,227,660) 14,846,044 373.84% Safety
2013-14 5,671,725$ (5,671,725)$ -$ 14,089,384$ 40.26% 2014-15 6,461,007 (7,064,751) (603,744) 15,063,157 46.90% 2015-16 6,886,886 (7,138,821) (251,935) 15,983,328 44.66% 2016-17 7,680,772 (7,963,467) (282,695) 15,120,732 52.67% 2017-18 8,172,881 (8,172,881) - 15,449,544 52.90% 2018-19 9,530,187 (9,762,519) (232,332) 14,818,817 65.88% 2019-20 11,019,557 (11,019,557) - 16,153,448 68.22% 2020-21 3
12,051,806 (111,393,591) (99,341,785) 18,068,893 616.49% See Note 2 of the Notes to Required Supplementary Information - Net Pension Liability on page 109. 2 Covered payroll represents the payroll on which the contributions to the pension plan are based. 3 In fiscal year 2020-21, the City issued Pension Obligation Bonds to pay down a portion of its unfunded CalPERS liability.
1 Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable.

CITY OF EL CAJON
Required Supplementary Information
Schedule of Plan Contributions - Pension
Last Eight Fiscal Years 1
108

1. Notes to Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios Benefit changes.

Changes of assumptions.

2. Notes to Schedule of Plan Contributions for the Fiscal Years June 30:
a.
b.
c.

Actuarial cost method Entry Age Normal
Amortization method/period Details on Appendix A of the June 30, 2018 Funding Valuation Report.

Asset valuation method Fair value of assets. Details on the June 30, 2018 Funding Valuation Report.

Inflation 2.500%
Salary increases Varies by entry age and service
Payroll growth 2.750%
Investment rate of return 7.00% net of pension plan investment and administrative expenses including inflation.

Retirement age The probabilities of retirement are based on the 2017 California Public Employees' Retirement System (CalPERS) experience study for the period 1997 to 2015.

Mortality The probabilities of mortality are based on the 2017 CalPERS experience study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP- 2016 published by the Society of Actuaries.

The City makes contributions equal to the actuarially determined contributions. However, the City may choose to make additional contributions towards its unfunded liability. Contributions for the plan exceed the actuarially determined contributions.

Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21, 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

The following actuarial methods and assumptions from the June 30, 2018 funding valuation report, were used to set the actuarially determined contributions for measurement period 2020-21:

CITY OF EL CAJON
Notes to Required Supplementary Information
Net Pension Liability - Miscellaneous and Safety Plans June 30, 2022
The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2020 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2020 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

No changes in 2019 - 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions from December 2017. There were no changes in the discount rate. For the measurement date June 30, 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, the amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, the amounts reported were based on the 7.5 percent discount rate.
109
2016-17 2017-18 2018-19 2019-20 2020-21
Total OPEB Liability
Service cost 78,533$ 78,533$ 233,261$ 240,400$ 247,011$ Interest on total OPEB liability 391,440 397,219 795,418 792,235 770,296 Differences between expected and actual experience - 54,005 (868,788) (666,003) 949,686 Changes in assumptions - 718,115 520,123 - 686,927 Changes in benefit terms - 4,588,311 - - Benefit payments (293,421) (308,359) (733,949) (740,805) (762,477) Net change in total OPEB liability 176,552 5,527,824 (53,935) (374,173) 1,891,443 Total OPEB liability - beginning 5,355,403 5,531,955 11,059,779 11,005,844 10,631,671 Total OPEB liability - ending (a) 5,531,955$ 11,059,779$ 11,005,844$ 10,631,671$ 12,523,114$ Plan fiduciary net position
Contributions - employer 949,193$ 958,359$ 1,383,949$ 940,805$ 962,477$ Net investment income 321,424 276,640 296,391 192,108 1,587,754 Benefit payments (293,421) (308,359) (733,949) (740,805) (762,477) Administrative expense (1,685) (6,613) (1,063) (2,631) (2,187) Net change in plan fiduciary net position 975,511 920,027 945,328 389,477 1,785,567 Plan fiduciary net position - beginning 2,534,777 3,510,288 4,430,315 5,375,643 5,765,120 Plan fiduciary net position - ending (b) 3,510,288$ 4,430,315$ 5,375,643$ 5,765,120$ 7,550,687$ Net OPEB liability - ending (a)-(b) 2,021,667$ 6,629,464$ 5,630,201$ 4,866,551$ 4,972,427$ Plan fiduciary net position as a percentage
of the total OPEB liability (b)/(a) 63.45% 40.06% 48.84% 54.23% 60.29% Covered-employee payroll 2
24,275,515$ 24,988,882$ 27,922,328$ 28,690,192$ 26,762,410$ Net OPEB liability as percentage of covered-employee
payroll 8.33% 26.53% 20.16% 16.96% 18.58%
See Notes to Required Supplementary Information - Other Postemployment Benefits on page 112. 2 Contributions to OPEB are not based on measure of pay. 1 Historical information is required only for measurement periods for which GASB Statement No.75 is applicable.

Measurement Period

CITY OF EL CAJON
Required Supplementary Information
Schedule of Changes in the Net OPEB Liability and Related Ratios for the Measurement Periods ending June 30
Last Five Years 1
110
Fiscal Year
Ending
June 30,
Actuarially
Determined
Contribution
Contributions
in relation to
the actuarially
determined
contributions
Contributions
deficiency
(excess)
Covered-
employee
payroll 2
Contributions
as a percentage
of covered-
employee payroll
2016-17 398,230$ (949,193)$ (550,963)$ 24,275,515$ 3.91% 2017-18 398,230 (958,359) (560,129) 24,988,882 3.84% 2018-19 769,774 (1,383,949) (614,175) 27,922,328 4.96% 2019-20 740,805 (940,805) (200,000) 28,690,192 3.28% 2020-21 717,072 (538,575) 178,497 26,762,410 2.01% 2021-22 718,238 (346,532) 371,706 28,768,398 1.20% 1 Historical information is required only for measurement periods for which GASB Statement No.75 is applicable.

See Notes to Required Supplementary Information - Other Postemployment Benefits on page 112.

CITY OF EL CAJON
2 Contributions to OPEB are not based on measure of pay.

Required Supplementary Information
Schedule of Plan Contributions - OPEB
Last Six Fiscal Years 1
111
Actuarial cost method Entry Age Normal
Actuarial valuation date June 30, 2021
Measurement date June 30, 2021
Asset valuation method Fair value basis
Funding policy
Expected rate of return
Discount rate
Inflation 2.50%
Payroll increases
Change in assumptions
Medical trend rates
Minimum contribution
Participation rates and
spouse coverage
The discount rate used to measure the City's OPEB liability was changed from

7.28% to 6.75%.

Pre-retirement turnover, mortality, retirement, and disability retirement rates are based on the 2017 CalPers experience study for the pension plan.
40% of eligible employees will elect medical insurance coverage and 40% of future retirees are assumed to elect spouse coverage
Medical costs in future years has been updated to 4% for all years.

CITY OF EL CAJON
Notes to Required SupplementaryInformation
Other Post Employment Benefits (OPEB)
June 30, 2022
The OPEB liabilities and actuarially determined contribution were based on the following actuarial assumptions and methods:

Fund a recommended actuarially determined contribution (ADC) to fully fund the benefits over a reasonable period of time through an amortization of the net (unfunded) OPEB liability.

6.75%

6.75%. This discount rate assumes the City fully funds for its retiree beenfits through the California Employers' Retiree Benefit Trust (CERBT) under its investment allocation strategy 1. The rate reflects the CERBT published median interest rate for strategy 1.

2.75%
The CalPers minimum required contribution is assumed to increase 4% per year.
112

SUPPLEMENTARY INFORMATION
113
Recreation Magnolia
General Special Performing
Fund Programs Arts Total1
ASSETS
Cash and investments 51,921,412$ 145,991$ 1,482,445$ 53,549,848$ Cash and investments with fiscal agent 1,810,152 - - 1,810,152 Receivables:

Accounts 196,469 84,327 - 280,796 Interest 278,584 374 - 278,958 Intergovernmental 264,162 - - 264,162 Leases 21,452,665 - - 21,452,665 Taxes 10,071,177 - - 10,071,177 Due from other funds 260,048 - - 260,048 Total assets 86,254,669$ 230,692$ 1,482,445$ 87,967,806$

LIABILITIES
Accounts payable 1,146,683$ 1,903$ 44,790$ 1,193,376$ Accrued liabilities 2,186,661 32,371 - 2,219,032 Deposits payable 980,930 6,333 - 987,263 Unearned revenue 913 212,909 - 213,822 Total liabilities 4,315,187 253,516 44,790 4,613,493

DEFERRED INFLOWS OF RESOURCES
Related to leases 21,306,239 - - 21,306,239 Total deferred inflows of resources 21,306,239 - - 21,306,239

FUND BALANCES
Restricted 1,810,152 - - 1,810,152 Committed 15,883,202 - - 15,883,202 Assigned:

Economic uncertainty 15,883,202 - - 15,883,202 Unfunded retirement obligations 11,189,848 - - 11,189,848 Unassigned 15,866,839 (22,824) 1,437,655 17,281,670 Total fund balances 60,633,243 (22,824) 1,437,655 62,048,074 Total liabilities, deferred inflows of
resources and fund balances 86,254,669$ 230,692$ 1,482,445$ 87,967,806$

CITY OF EL CAJON
Balance Sheet
General Fund (GAAP Basis)
June 30, 2022
1 The total for General Fund (GAAP Basis) includes additional funds that do not meet the criteria to be classified as special revenue funds, pursuant to GASB Statement No. 54. This total is reported on the Balance Sheet- Governmental Funds for the General Fund (page 38).
114
Reconciliation
Recreation Magnolia to Fund
General Special Performing Financial
Fund Programs Arts Statements Total1

REVENUES
Taxes 79,293,449$ -$ -$ -$ 79,293,449$ Intergovernmental 1,945,819 30,347 - - 1,976,166 Licenses and permits 1,939,791 - - - 1,939,791 Fines and forfeitures 471,784 - - - 471,784 Special assessments 369,284 - - - 369,284 Charges for services 3,985,208 608,555 - - 4,593,763 Use of money and property (93,523) (2,453) 3,099,620 - 3,003,644 Other 319,858 33,297 103,000 - 456,155 Total revenues 88,231,670 669,746 3,202,620 - 92,104,036

EXPENDITURES
Current:

General government 7,270,991 - - - 7,270,991 Public safety 52,662,865 - - - 52,662,865 Public works 6,883,312 - - - 6,883,312 Recreation 3,162,325 518,419 3,593,788 - 7,274,532 Community development 2,283,171 - - - 2,283,171 Debt service
Interest 774 - - - 774 Principal 82,858 - - - 82,858 Total expenditures 72,346,296 518,419 3,593,788 - 76,458,503 Excess (deficiency) of revenues
over (under) expenditures 15,885,374 151,327 (391,168) - 15,645,533

OTHER FINANCING SOURCES (USES)
Lease acquisition 793,338 - - - 793,338 Transfers in 209,841 - 1,000,000 (1,000,000) 209,841 Transfers out (9,255,550) (8,949) - 1,000,000 (8,264,499) Total other financing sources (uses) (8,252,371) (8,949) 1,000,000 - (7,261,320) Net change in fund balances 7,633,003 142,378 608,832 - 8,384,213 Fund balances, beginning 53,014,155 (165,202) 828,823 - 53,677,776 Prior period adjustment (note 16) (13,915) - - - (13,915) Fund balance, beginning restated 53,000,240 (165,202) 828,823 - 53,663,861 Fund balances, ending 60,633,243$ (22,824)$ 1,437,655$ -$ 62,048,074$ 1 The total for General Fund (GAAP Basis) includes additional funds that do not meet the criteria to be classified as special revenue funds, pursuant to GASB Statement No. 54. This total is reported on the Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds for the General Fund (page 42).

For the fiscal year ended June 30, 2022

CITY OF EL CAJON
Schedule of Revenues, Expenditures and Changes in Fund Balances General Fund (GAAP Basis)
115
Actual Amounts Variance with
Original Final Budgetary Basis Final Budget

REVENUES
Intergovernmental 49,000$ 49,000$ 30,347$ (18,653)$ Charges for services 595,100 595,100 608,555 13,455 Use of money and property 3,400 3,400 (2,453) (5,853) Other 83,000 83,000 33,297 (49,703) Total revenues 730,500 730,500 669,746 (60,754)

EXPENDITURES
Current:

Recreation 635,395 635,395 518,419 116,976 Capital outlay 93,400 93,400 - 93,400 Total expenditures 728,795 728,795 518,419 210,376 Excess (deficiency) of revenues over
(under) expenditures 1,705 1,705 151,327 149,622

OTHER FINANCING SOURCES (USES)
Transfers out (8,949) (8,949) (8,949) - Total other financing sources (8,949) (8,949) (8,949) - Net change in fund balance (7,244) (7,244) 142,378 149,622 Fund balance, beginning (165,202) (165,202) (165,202) - Fund balance, ending (172,446)$ (172,446)$ (22,824)$ 149,622$ 1 Recreation Special Programs is considered General Fund (GAAP Basis), pursuant to GASB Statement No. 54.

This fund has a legally adopted budget and as such, a budgetary comparison schedule is presented.

A reconciliation of the budgetary comparison schedule-General Fund to the Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds (GAAP Basis) is included in Required Supplementary Information on page 102.

Budgeted Amounts

CITY OF EL CAJON
Schedule of Revenues, Expenditures and Changes in Fund Balance Recreation Special Programs1
Budget and Actual
For the fiscal year ended June 30, 2022
116
Actual Amounts Variance with
Original Final Budgetary Basis Final Budget

REVENUES
Use of money and property 700,000$ 700,000$ 232,235$ (467,765)$ Other - - 103,000 103,000 Total revenues 700,000 700,000 335,235 (364,765)

EXPENDITURES
Current:

Recreation 1,074,775 1,074,775 726,403 348,372 Capital outlay 50,000 50,000 - 50,000 Total expenditures 1,124,775 1,124,775 726,403 398,372 Excess (deficiency) of revenues over
(under) expenditures (424,775) (424,775) (391,168) 33,607

OTHER FINANCING SOURCES
Transfers in 1,000,000 1,000,000 1,000,000 - Total other financing sources 1,000,000 1,000,000 1,000,000 - Net change in fund balance 575,225 575,225 608,832 33,607 Fund balance, beginning 828,823 828,823 828,823 - Fund balance, ending 1,404,048$ 1,404,048$ 1,437,655$ 33,607$ 1 Magnolia Performing Arts is considered General Fund (GAAP Basis), pursuant to GASB Statement No. 54. This fund has a legally adopted budget and as such, a budgetary comparison schedule is presented.

CITY OF EL CAJON
Schedule of Revenues, Expenditures and Changes in Fund Balance Magnolia Performing Arts1
Budget and Actual
For the fiscal year ended June 30, 2022
Budgeted Amounts
Actual amounts, on a budgetary basis, do not reflect the full revenues and expenditures of the Magnolia Performing Arts, and only present the net budgetary impact of the activities. The full revenue and expenditure amounts, pursuant to GAAP Basis, are included and presented in the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances (GAAP Basis) on page 115.
117
Special Debt Capital
Revenue Service Projects
Funds Fund Funds Total
ASSETS
Cash and investments 6,328,288$ 596,043$ 17,882,075$ 24,806,406$ Cash and investments,
with fiscal agent - 2 - 2 Receivables:

Interest 17,608 - 23,936 41,544 Intergovernmental 709,371 - 1,169,618 1,878,989 Leases - - 541,102 541,102 Taxes 46,510 - - 46,510 Loans 11,050,779 - - 11,050,779 Total assets 18,152,556$ 596,045$ 19,616,731$ 38,365,332$

LIABILITIES
Accounts payable 334,403$ -$ 451,489$ 785,892$ Accrued liabilities 49,509 - - 49,509 Unearned revenue - - - - Due to other funds 253,700 - 6,348 260,048 Total liabilities 637,612 - 457,837 1,095,449

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 90,740 - 83,848 174,588 Related to leases - - 538,686 538,686 Total deferred inflows of resources 90,740 - 622,534 713,274

FUND BALANCES (DEFICITS)
Restricted:

Animal shelter operations 41,549 - - 41,549 Animal shelter project 266,637 - - 266,637 Community development 1,826,166 - - 1,826,166 Debt service - 2 - 2 Loans receivable 10,960,039 - - 10,960,039 Public safety 449,565 - - 449,565 Public works projects 587,865 - - 587,865 RTCIP impact fee - - 754,879 754,879 RMRA - - 2,845,447 2,845,447 Streets projects 3,292,383 - - 3,292,383 Committed - 596,043 - 596,043 Assigned:

Capital projects - - 14,942,382 14,942,382 Unassigned - - (6,348) (6,348) Total fund balances 17,424,204 596,045 18,536,360 36,556,609 Total liabilities, deferred inflows of
resources and fund balances 18,152,556$ 596,045$ 19,616,731$ 38,365,332$

CITY OF EL CAJON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
118
Special Debt Capital
Revenue Service Projects
Funds Fund Funds Total

REVENUES
Taxes -$ -$ 1,932,401$ 1,932,401$ Intergovernmental 4,571,668 - 2,354,529 6,926,197 Fines and forfeitures 32,236 - - 32,236 Charges for services 29,664 - 44,648 74,312 Use of money and property (129,585) 2 (99,054) (228,637) Other 10,485 - 205,999 216,484 Total revenues 4,514,468 2 4,438,523 8,952,993

EXPENDITURES
Current:

General government - 3,500 - 3,500 Public safety 46,743 - 2,487 49,230 Public works 2,383,862 - 706,647 3,090,509 Recreation - - 27,373 27,373 Community development 956,422 - - 956,422 Capital outlay 321,182 - 5,133,909 5,455,091 Debt service
Interest 29,874 3,961,037 - 3,990,911 Principal 202,533 4,570,000 - 4,772,533 Total expenditures 3,940,616 8,534,537 5,870,416 18,345,569 Excess (deficiency) of revenues
over (under) expenditures 573,852 (8,534,535) (1,431,893) (9,392,576)

OTHER FINANCING SOURCES (USES)
Transfers in - 9,119,116 1,263,056 10,382,172 Transfers out (955,702) - - (955,702) Total other financing sources (uses) (955,702) 9,119,116 1,263,056 9,426,470 Net change in fund balances (381,850) 584,581 (168,837) 33,894 Fund balances, beginning 17,806,054 11,464 18,705,197 36,522,715 Fund balances, ending 17,424,204$ 596,045$ 18,536,360$ 36,556,609$

CITY OF EL CAJON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the fiscal year ended June 30, 2022
119

120
The Valley of Opportunity

CITY OF EL CAJON

NONMAJOR SPECIAL REVENUE FUNDS
SPECIAL REVENUE FUNDS are used to account for specific revenue sources that are legally restricted to expenditures for specified purposes. The following are the nonmajor Special Revenue Funds used by the City:

Gas Tax
This fund accounts for gas tax revenues from the State and expen ded for construction and maintenance of City streets and street infrastructure.

Transit
This fund accounts for Transportation Development Act (TDA) Art icle 4 monies allocated by the San Diego Association of Governments (SANDAG) to be used for support of public transportation systems and aid to public transportation research and projects.

Federal/County Asset Forfeiture
This fund accounts for revenues from assets seized primarily from illegal narcotics activity to be used to supplement law enforcement activities.

Local Public Safety
This fund accounts for the allocation of the state's sales tax reve nue (Proposition 172) to be used for public safety, including sheriffs, police and fire protection.

Housing In-Lieu Fees
This fund accounts for in-lieu fees received from developers as an alternative to constructing affordable housing units. These funds will be utiliz ed by the City to support the development of affordable housing units.

State CASP
This fund accounts for fees collected with business license applications and renewals as mandated by State (Assembly Bill 1379) for the Certified Access Specialist Program (CASP).

Community Development Block Grant (CDBG)
This fund accounts for federal grants used for public services and programs and public facilities projects which benefit citizens with special needs such as seniors, people with disability and low and moderate income households.

HOME
This fund accounts for federal grants to support local affordable housing initiatives under the Home Investment Partnerships Program.

Various Donations
This fund accounts for various donations received to pay for specific functions and/or programs of the City. This fund is not budgeted annually because donations vary from year to year.
121
Federal/
County Local
Asset Public
Gas Tax Transit Forfeiture Safety
ASSETS
Cash and investments 3,184,217$ 592,908$ 146,810$ 256,578$ Receivables:

Interest 9,209 1,807 440 1,083 Intergovernmental 200,593 - - - Taxes - - - 46,510 Loans - - - - Total assets 3,394,019$ 594,715$ 147,250$ 304,171$

LIABILITIES
Accounts payable 63,581$ 6,719$ 1,730$ 126$ Accrued liabilities 38,055 131 - - Due to other funds - - - - Total liabilities 101,636 6,850 1,730 126

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - Total deferred inflows of resources - - - -

FUND BALANCES
Restricted:

Animal shelter operations - - - - Animal shelter project - - - - Community development - - - - Loans receivable - - - - Public safety - - 145,520 304,045 Public works projects - 587,865 - - Streets projects 3,292,383 - - - Total fund balances 3,292,383 587,865 145,520 304,045 Total liabilities, deferred inflows of
resources and fund balances 3,394,019$ 594,715$ 147,250$ 304,171$

CITY OF EL CAJON
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
Budgeted
122
Unbudgeted
Community
Housing Development Total Nonmajor
In-Lieu State Block Various Special Revenue
Fees CASP Grant HOME Donations Funds
305,506$ 112,109$ -$ 1,418,725$ 311,435$ 6,328,288$ 907 - - 4,162 - 17,608 - - 503,650 5,128 - 709,371 - - - - - 46,510 - - 268,106 10,782,673 - 11,050,779 306,413$ 112,109$ 771,756$ 12,210,688$ 311,435$ 18,152,556$ -$ -$ 241,900$ 20,347$ -$ 334,403$ - - 8,048 3,275 - 49,509 - - 253,700 - - 253,700 - - 503,648 23,622 - 637,612 - - - 90,740 - 90,740 - - - 90,740 - 90,740 - - - - 41,549 41,549 - - - - 266,637 266,637 306,413 112,109 2 1,404,393 3,249 1,826,166 - - 268,106 10,691,933 - 10,960,039 - - - - - 449,565 - - - - - 587,865 - - - - - 3,292,383 306,413 112,109 268,108 12,096,326 311,435 17,424,204 306,413$ 112,109$ 771,756$ 12,210,688$ 311,435$ 18,152,556$ Budgeted

CITY OF EL CAJON
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
123
Federal/
County Local
Asset Public
Gas Tax Transit Forfeiture Safety

REVENUES
Intergovernmental 2,461,568$ 80,560$ -$ 570,440$ Fines and forfeitures - - 32,236 - Charges for services - - - - Use of money and property (72,432) (13,881) (3,344) (8,894) Other 9,450 - - - Total revenues 2,398,586 66,679 28,892 561,546

EXPENDITURES
Current:

Public safety - - 42,410 4,333 Public works 2,300,660 83,202 - - Community development - - - - Capital outlay 24,952 - - 296,230 Debt service
Interest - - - 29,874 Principal - - - 202,533 Total expenditures 2,325,612 83,202 42,410 532,970 Excess (deficiency) of revenues over
(under) expenditures 72,974 (16,523) (13,518) 28,576

OTHER FINANCING SOURCES (USES)
Transfers out (251,217) (350) - (160,000) Total other financing (uses) (251,217) (350) - (160,000) Net change in fund balances (178,243) (16,873) (13,518) (131,424) Fund balances, beginning 3,470,626 604,738 159,038 435,469 Fund balances, ending 3,292,383$ 587,865$ 145,520$ 304,045$

CITY OF EL CAJON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds
For the fiscal year ended June 30, 2022
Budgeted
124
Unbudgeted
Community
Housing Development Total Nonmajor
In-Lieu State Block Various Special Revenue
Fees CASP Grant HOME Donations Funds
-$ -$ 1,398,695$ 60,405$ -$ 4,571,668$ - - - - - 32,236 - 29,664 - - - 29,664 (6,971) - 4,607 (28,670) - (129,585) - - 45 990 - 10,485 (6,971) 29,664 1,403,347 32,725 - 4,514,468 - - - - - 46,743 - - - - - 2,383,862 - 3,346 879,502 73,574 - 956,422 - - - - - 321,182 - - - - - 29,874 - - - - - 202,533 - 3,346 879,502 73,574 - 3,940,616 (6,971) 26,318 523,845 (40,849) - 573,852 - (734) (541,223) (2,178) - (955,702) - (734) (541,223) (2,178) - (955,702) (6,971) 25,584 (17,378) (43,027) - (381,850) 313,384 86,525 285,486 12,139,353 311,435 17,806,054 306,413$ 112,109$ 268,108$ 12,096,326$ 311,435$ 17,424,204$ Budgeted

CITY OF EL CAJON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds
For the fiscal year ended June 30, 2022
125
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 2,708,477$ 2,708,477$ 2,461,568$ (246,909)$ Use of money and property - - (72,432) (72,432) Other - - 9,450 9,450 Total revenues 2,708,477 2,708,477 2,398,586 (309,891)

EXPENDITURES
Current:

Public works 2,687,029 2,688,728 2,300,660 388,068 Capital outlay 27,000 27,000 24,952 2,048 Total expenditures 2,714,029 2,715,728 2,325,612 390,116 Deficiency of revenues (under)
expenditures (5,552) (7,251) 72,974 80,225 OTHER FINANCING SOURCES (USES):

Transfers out (132,971) (132,971) (251,217) (118,246) Total other financing sources (uses) (132,971) (132,971) (251,217) (118,246) Net change in fund balance (138,523) (140,222) (178,243) (38,021) Fund balance, beginning 3,470,626 3,470,626 3,470,626 - Fund balance, ending 3,332,103$ 3,330,404$ 3,292,383$ (38,021)$ Budgeted Amounts

CITY OF EL CAJON
Schedule of Revenues, Expenditures and Changes in Fund Balance Gas Tax Special Revenue Fund
Budget and Actual
For the fiscal year ended June 30, 2022
126
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 103,323$ 103,323$ 80,560$ (22,763)$ Use of money and property - - (13,881) (13,881) Total revenues 103,323 103,323 66,679 (36,644)

EXPENDITURES
Current:

Public works 104,624 104,624 83,202 21,422 Total expenditures 104,624 104,624 83,202 21,422 Excess (deficiency) of revenues over
(under) expenditures (1,301) (1,301) (16,523) (15,222)

OTHER FINANCING SOURCES (USES)
Transfers out (350) (350) (350) - Total other financing sources (uses) (350) (350) (350) - Net change in fund balance (1,651) (1,651) (16,873) (15,222) Fund balance, beginning 604,738 604,738 604,738 - Fund balance, ending 603,087$ 603,087$ 587,865$ (15,222)$ Budgeted Amounts

CITY OF EL CAJON
Schedule of Revenues, Expenditures and Changes in Fund Balance Transit Special Revenue Fund
Budget and Actual
For the fiscal year ended June 30, 2022
127
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Fines and forfeitures 20,000$ 20,000$ 32,236$ 12,236$ Use of money and property 1,860 1,860 (3,344) (5,204) Total revenues 21,860 21,860 28,892 7,032

EXPENDITURES
Current:

Public safety 67,850 67,850 42,410 25,440 Total expenditures 67,850 67,850 42,410 25,440 Deficiency of revenues (under)
expenditures (45,990) (45,990) (13,518) 32,472 Net change in fund balance (45,990) (45,990) (13,518) 32,472 Fund balance, beginning 159,038 159,038 159,038 - Fund balance, ending 113,048$ 113,048$ 145,520$ 32,472$ Budgeted Amounts

CITY OF EL CAJON
Schedule of Revenues, Expenditures and Changes in Fund Balance Federal/County Asset Forfeiture Special Revenue Fund
Budget and Actual
For the fiscal year ended June 30, 2022
128
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 468,900$ 468,900$ 570,440$ 101,540$ Use of money and property 6,000 6,000 (8,894) (14,894) Total revenues 474,900 474,900 561,546 86,646

EXPENDITURES
Current:

Public safety 20,000 20,000 4,333 15,667 Capital outlay 340,000 340,000 296,230 43,770 Debt service
Interest 29,874 29,874 29,874 - Principal 202,533 202,533 202,533 - Total expenditures 592,407 592,407 532,970 59,437 Excess of revenues over expenditures (117,507) (117,507) 28,576 146,083

OTHER FINANCING SOURCES (USES)
Transfers out (160,000) (160,000) (160,000) - Total other financing sources (uses) (160,000) (160,000) (160,000) - Net change in fund balance (277,507) (277,507) (131,424) 146,083 Fund balance, beginning 435,469 435,469 435,469 - Fund balance, ending 157,962$ 157,962$ 304,045$ 146,083$ Budgeted Amounts

CITY OF EL CAJON
Schedule of Revenues, Expenditures and Changes in Fund Balance Local Public Safety Special Revenue Fund
Budget and Actual
For the fiscal year ended June 30, 2022
129
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Use of money and property -$ -$ (6,971)$ (6,971)$ Total revenues - - (6,971) (6,971)

OTHER FINANCING SOURCES (USES)
Transfers out (303,000) (303,000) - 303,000 Total other financing sources (303,000) (303,000) - 303,000 Net change in fund balance (303,000) (303,000) (6,971) 296,029 Fund balance, beginning 313,384 313,384 313,384 - Fund balance, ending 10,384$ 10,384$ 306,413$ 296,029$ Budgeted Amounts

CITY OF EL CAJON
Schedule of Revenues, Expenditures and Changes in Fund Balance Housing In-Lieu Fees Special Revenue Fund
Budget and Actual
For the fiscal year ended June 30, 2022
130
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Charges for services 28,000$ 28,000$ 29,664$ 1,664$ Total revenues 28,000 28,000 29,664 1,664

EXPENDITURES
Current:

Community development 25,940 25,940 3,346 22,594 Total expenditures 25,940 25,940 3,346 22,594 Excess of revenues over expenditures 2,060 2,060 26,318 24,258

OTHER FINANCING SOURCES (USES)
Transfers out (1,400) (1,400) (734) 666 Total other financing sources (uses) (1,400) (1,400) (734) 666 Net change in fund balance 660 660 25,584 24,924 Fund balance, beginning 86,525 86,525 86,525 - Fund balance, ending 87,185$ 87,185$ 112,109$ 24,924$ Budgeted Amounts

CITY OF EL CAJON
Schedule of Revenues, Expenditures and Changes in Fund Balance State Certified Access Specialist Program (CASP) Special Revenue Fund Budget and Actual
For the fiscal year ended June 30, 2022
131
Actual Amounts Variance with
Original Final Budgetary Basis Final Budget

REVENUES
Intergovernmental 1,294,037$ 4,839,670$ 1,398,695$ (3,440,975)$ Use of money and property - - 4,607 4,607 Other - - 19,746 19,746 Total revenues 1,294,037 4,839,670 1,423,048 (3,416,622)

EXPENDITURES
Current:

Community development 416,279 1,699,430 879,502 819,928 Total expenditures 416,279 1,699,430 879,502 819,928 Excess (deficiency) of revenues over
(under) expenditures 877,758 3,140,240 543,546 (2,596,694)

OTHER FINANCING SOURCES (USES)
Transfers out (868,040) (3,140,073) (541,223) 2,598,850 Total other financing sources (868,040) (3,140,073) (541,223) 2,598,850 Net change in fund balance 9,718 167 2,323 2,156 Fund balance, beginning 285,486 285,486 285,486 - Fund balance, ending 295,204$ 285,653$ 287,809$ 2,156$ 1 Actual amounts presented reflect the full revenues and expenditures of the Community Development Block Grant Fund on a budgetary basis that include both loan repayments and disbursements. Pursuant to GAAP basis, these amounts are considered an increase or reduction in the loan receivable as presented in the Combining Statement of Revenues, Expenditures and Changes in Fund Balances (GAAP Basis) for Nonmajor Special Revenue Funds on pages 124 and 125.

Budgeted Amounts

CITY OF EL CAJON
Schedule of Revenues, Expenditures and Changes in Fund Balance Community Development Block Grant (CDBG) Special Revenue Fund 1 Budget and Actual
For the fiscal year ended June 30, 2022
132
Actual Amounts Variance with
Original Final Budgetary Basis Final Budget

REVENUES
Intergovernmental 604,049$ 611,412$ 60,405$ (551,007)$ Use of money and property - - (28,669) (28,669) Other - - 205,518 205,518 Total revenues 604,049 611,412 237,254 (374,158)

EXPENDITURES
Current:

Community development 594,508 3,454,024 73,574 3,380,450 Total expenditures 594,508 3,454,024 73,574 3,380,450 Excess (deficiency) of revenues over
(under) expenditures 9,541 (2,842,612) 163,680 3,006,292

OTHER FINANCING SOURCES
Transfers out (2,178) (2,178) (2,178) - Total other financing sources (2,178) (2,178) (2,178) - Net change in fund balance 7,363 (2,844,790) 161,502 3,006,292 Fund balance, beginning 12,139,353 12,139,353 12,139,353 - Fund balance, ending 12,146,716$ 9,294,563$ 12,300,855$ 3,006,292$ 1 Actual amounts presented reflect the full revenues and expenditures of the HOME Fund on a budgetary basis that include both loan repayments and disbursements. Pursuant to GAAP basis, these amounts are considered an increase or reduction in the loan receivable as presented in the Combining Statement of Revenues, Expenditures and Changes in Fund Balances (GAAP Basis) for Nonmajor Special Revenue Funds on pages 124 and 125.

CITY OF EL CAJON
HOME Special Revenue Fund 1
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
For the fiscal year ended June 30, 2022
Budgeted Amounts
133

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CITY OF EL CAJON

NONMAJOR DEBT SERVICE FUND
DEBT SERVICE FUND is used to accumulate financial resources that will be used to make principal and interest payments on general long-term debt. The nonmajor debt service fund is listed below:

Pension Obligation Bonds
This fund is used to accumulate resources for the repayment of t he 2021 Taxable Pension Obligation Bonds that financed a portion of the City’ s obligations with the California Public Employee’s Retirement System.
135
Pension
Obligation
Bonds
ASSETS
Cash and investments 596,043$
Cash and investments,
with fiscal agent 2
Total assets 596,045$

FUND BALANCES
Restricted:

Debt service 2
Committed 596,043
Total fund balances 596,045
Total liabilities and fund balances 596,045$
June 30, 2022
Pension Obligation Bonds Debt Service Fund

CITY OF EL CAJON
Balance Sheet
136
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Use of money and property -$ -$ 2$ 2$ Total revenues - - 2 2

EXPENDITURES
Current:

General government - - 3,500 (3,500) Debt service:

Interest 4,233,884 4,233,884 3,961,037 272,847 Principal 4,885,232 4,885,232 4,570,000 315,232 Total expenditures 9,119,116 9,119,116 8,534,537 584,579 Deficiency of revenues (under)
expenditures (9,119,116) (9,119,116) (8,534,535) 584,581 OTHER FINANCING SOURCES (USES):

Transfers in 9,119,116 9,119,116 9,119,116 - Total other financing sources (uses) 9,119,116 9,119,116 9,119,116 - Net change in fund balance - - 584,581 584,581 Fund balance, beginning 11,464 11,464 11,464 11,464 Fund balance, ending 11,464$ 11,464$ 596,045$ 596,045$ Budgeted Amounts

CITY OF EL CAJON
Pension Obligation Bonds Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
For the fiscal year ended June 30, 2022
137

138
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CITY OF EL CAJON

NONMAJOR CAPITAL PROJECTS FUNDS
CAPITAL PROJECTS FUNDS are used to account for financial resources to be used for the acquisition, construction and preservation of majo r capital facilities, infrastructure, and equipment, other than those financed by proprietary funds assets.

Appropriations in the capital project funds are entirely project based, as opposed to fiscal year based. Once approved by City Council, the project’s scope an d budget remain in effect until the project is completed or cancelled. Since annual b udgets are not adopted for the capital project funds, budgetary comparison schedules a re not presented because comparison of the budgetary amounts to actual revenues a nd expenditures is not meaningful.

The following are the nonmajor Capital Project Funds used by the City:

City Capital Improvement Program
This fund is used to account for the acquisition, construction, and preservation of City- owned facilities and other capital assets.

Parks and Recreation Improvement Grants
This fund is used to account for state grants to repair and improve City recreational facilities.

Parks Impact Fees
This fund is used to account for City parks and recreational improvements financed with park impact fees.

Public Works Transportation Projects
This fund accounts for research, planning, construction, improve ment, maintenance, and operation of public streets, highways, and their related publi c facilities for traffic funded with TransNet (half-percent special sales tax), Specific Street Ob ligations, Gas Tax, Highway Safety Grants, and other transportation related funding.

Public Safety Facilities
This fund was established to account for the proceeds resulting from the half-cent sales tax increase for ten years authorized by Proposition O, as approved by votes in November 2004. Expenditures in this fund are restricted for the construction of new public safety facilities including an animal shelter, as well as upgrades to existing fire facilities.
139
Parks and
City Capital Recreation Parks Public Works
Improvement Improvement Impact Transportation
Program Grants Fees Projects
ASSETS
Cash and investments 10,459,226$ -$ 138,529$ 3,633,389$ Receivables:

Interest - - 410 12,684 Intergovernmental - - - 1,169,618 Leases 541,102 - - - Total assets 11,000,328$ -$ 138,939$ 4,815,691$

LIABILITIES
Accounts payable 30,005$ -$ -$ 421,484$ Unearned revenue - - - - Due to other funds - 6,348 - - Total liabilities 30,005 6,348 - 421,484

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - 83,848 Related to leases 538,686 - - - Total deferred inflows of resources 538,686 - - 83,848

FUND BALANCES (DEFICITS)
Restricted:

RTCIP impact fee - - - 754,879 RMRA - - - 2,845,447 Assigned:

Capital projects 10,431,637 - 138,939 710,033 Unassigned - (6,348) - - Total fund balances 10,431,637 (6,348) 138,939 4,310,359 Total liabilities, deferred inflows of
resources and fund balances 11,000,328$ -$ 138,939$ 4,815,691$

CITY OF EL CAJON
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2022
140
Total
Public Safety Nonmajor
Facilities Capital Projects
Projects Funds
3,650,931$ 17,882,075$
10,842 23,936
- 1,169,618
- 541,102
3,661,773$ 19,616,731$
-$ 451,489$
- -
- 6,348
- 457,837
- 83,848
- 538,686
- 622,534
- 754,879
- 2,845,447
3,661,773 14,942,382
- (6,348)
3,661,773 18,536,360
3,661,773$ 19,616,731$
141
Parks and
City Capital Recreation Parks Public Works
Improvement Improvement Impact Transportation
Program Grants Fees Projects

REVENUES
Taxes -$ -$ 3,751$ 1,928,650$ Intergovernmental - - - 2,354,529 Charges for services - - - 44,648 Use of money and property 73,091 - (3,133) (85,694) Other 100,000 - - 105,999 Total revenues 173,091 - 618 4,348,132

EXPENDITURES
Current:

Public safety - - - - Public works 72,436 - - 634,211 Recreation - 27,373 - - Capital outlay 762,716 - - 4,356,874 Total expenditures 835,152 27,373 - 4,991,085 Excess (deficiency) of revenues over
(under) expenditures (662,061) (27,373) 618 (642,953)

OTHER FINANCING SOURCES (USES)
Transfers in 670,503 27,373 - 565,180 Total other financing sources (uses) 670,503 27,373 - 565,180 Net change in fund balances 8,442 - 618 (77,773) Fund balances (deficits), beginning 10,423,195 (6,348) 138,321 4,388,132 Fund balances (deficits), ending 10,431,637$ (6,348)$ 138,939$ 4,310,359$

CITY OF EL CAJON
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances (Deficit)
Nonmajor Capital Projects Funds
For the fiscal year ended June 30, 2022
142
Total
Nonmajor
Public Safety Capital
Facilities Projects
Projects Funds
-$ 1,932,401$
- 2,354,529
- 44,648
(83,318) (99,054)
- 205,999
(83,318) 4,438,523
2,487 2,487
- 706,647
- 27,373
14,319 5,133,909
16,806 5,870,416
(100,124) (1,431,893)
- 1,263,056
- 1,263,056
(100,124) (168,837)
3,761,897 18,705,197
3,661,773$ 18,536,360$
143

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CITY OF EL CAJON

INTERNAL SERVICE FUNDS
INTERNAL SERVICE FUNDS are used to account for financing of goods or services provided by one fund, or department, to other funds, or departments, on a cost-reimbursement basis.

Vehicle Maintenance
This fund accounts for maintenance and operating expenses of t he City's automotive and equipment fleets.

Vehicle and Equipment Replacement
This fund accounts for the replacement of the City's automoti ve and equipment fleets.

Self Insurance
This fund accounts for liability insurance premiums, payment of cl aims and to establish reserves against future claims.

Information Technology Services
This fund accounts for the City's information technology servi ces and replacement of equipment.

Other Post-Employment Benefits
This fund accounts for post-employment benefits of the City in cluding annual required healthcare contributions and terminal conversions o f vacation and sick time.
145
Vehicle and
Vehicle Equipment Self
Maintenance Replacement Insurance
ASSETS
Current assets:

Cash and investments 1,281,061$ 3,654,083$ 7,830,891$ Cash and investments, restricted - - 83,749 Prepaid items - 36,171 - Total current assets 1,281,061 3,690,254 7,914,640 Noncurrent assets:

Net pension asset 101,255 - 186,684 Capital assets, not being depreciated:

Construction in progress - 714,946 - Capital assets, being depreciated net:

Machinery and equipment - 10,032 - Vehicles 16,280 2,385,074 -
Total noncurrent assets 117,535 3,110,052 186,684 Total assets 1,398,596 6,800,306 8,101,324

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 194,711 - 64,903 Deferred outflows related OPEB 26,624 - 7,309 Total deferred outflows of resources 221,335 - 72,212

LIABILITIES
Current liabilities:

Accounts payable 112,728 54,755 27,824 Accrued interest payable 8,493 - 2,831 Accrued liabilities 16,272 - 8,705 Claims payable - Due within one year - - 800,000 Compensated absences - Due within one year 40,680 - - Bonds payable - Due within one year 53,700 - 17,900 Total current liabilities 231,873 54,755 857,260 Noncurrent liabilities:

Claims payable - Due in more than one year - - 3,475,000 Compensated absences - Due in more than one year 27,967 - - Bonds payable 1,322,100 - 440,700 Net OPEB liability 85,918 - 18,120 Total noncurrent liabilities 1,435,985 - 3,933,820 Total liabilities 1,667,858 54,755 4,791,080

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 627,331 - 209,110 Deferred inflows related OPEB 20,719 - 5,688 Total deferred inflows of resources 648,050 - 214,798

NET POSITION
Net investment in capital assets 16,280 3,110,052 - Unrestricted (deficit) (712,257) 3,635,499 3,167,658 Total net position (695,977)$ 6,745,551$ 3,167,658$

CITY OF EL CAJON
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
146
Information Other Post
Technology Employment
Services Benefits Total
2,461,750$ 734,109$ 15,961,894$
- - 83,749 4,000 - 40,171 2,465,750 734,109 16,085,814
2,386,503 - 2,674,442 - - 714,946 350,440 - 360,472 - - 2,401,354 2,736,943 - 6,151,214 5,202,693 734,109 22,237,028
259,614 - 519,228 36,545 - 70,478 296,159 - 589,706 59,602 - 254,909 11,324 - 22,648 32,229 - 57,206 - - 800,000 67,990 - 108,670 71,600 - 143,200 242,745 - 1,386,633 - - 3,475,000 18,124 - 46,091 1,762,800 - 3,525,600 75,416 - 179,454 1,856,340 - 7,226,145 2,099,085 - 8,612,778 836,441 - 1,672,882 28,438 - 54,845 864,879 - 1,727,727 350,440 - 3,476,772 2,184,448 734,109 9,009,457
2,534,888$ 734,109$ 12,486,229$
147
Vehicle and
Vehicle Equipment Self
Maintenance Replacement Insurance
Operating revenues:

Charges for services 2,200,000$ -$ 3,502,933$ Total operating revenues 2,200,000 - 3,502,933 Operating expenses:

Salaries and benefits 430,535 - 147,294 Materials, services and supplies 1,240,594 26,751 691,204 Insurance claims/premiums 8,168 - 3,216,628 Depreciation 10,636 530,918 - Total operating expenses 1,689,933 557,669 4,055,126 Operating income (loss) 510,067 (557,669) (552,193) Nonoperating revenues (expenses):

Gain on disposal of assets - 44,370 - Other revenues 590 - 605,369 Interest expense and fiscal charges (34,260) - (11,420) Total nonoperating revenues (expenses) (33,670) 44,370 593,949 Income (loss) before operating
transfers 476,397 (513,299) 41,756 Operating transfers:

Transfers out (71,876) - (21,486) Total operating transfers (71,876) - (21,486) Change in net position 404,521 (513,299) 20,270 Net position (deficit), beginning (1,100,498) 7,258,850 3,147,388 Net position (deficit), ending (695,977)$ 6,745,551$ 3,167,658$

CITY OF EL CAJON
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the fiscal year ended June 30, 2022
148
Information Other Post
Technology Employment
Services Benefits Total
3,814,479$ 956,001$ 10,473,413$
3,814,479 956,001 10,473,413
630,852 921,238 2,129,919
2,714,433 5,040 4,678,022
- - 3,224,796 18,213 - 559,767 3,363,498 926,278 10,592,504
450,981 29,723 (119,091)
- - 44,370 3,309 955 610,223 (45,680) - (91,360) (42,371) 955 563,233 408,610 30,678 444,142
(123,515) - (216,877) (123,515) - (216,877) 285,095 30,678 227,265
2,249,793 703,431 12,258,964
2,534,888$ 734,109$ 12,486,229$
149
Vehicle and
Vehicle Equipment Self
Maintenance Replacement Insurance

CASH FLOW FROM OPERATING ACTIVITIES
Receipts from interfund charges 2,200,590$ -$ 4,108,302$ Payments to suppliers (1,217,786) (8,167) (3,888,973) Payments to employees (610,589) - 611,653 Net cash provided by (used for) operating activities 372,215 (8,167) 830,982

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers to other funds (71,876) - (21,486) Repayment of long term borrowing (principal) (47,250) - (15,750) Repayment of long term borrowing (interest) (40,927) - (13,642) Net cash (used for) noncapital financing activities (160,053) - (50,878)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Proceeds from sale of vehicles and equipment - 44,370 - Acquisitions of vehicles and equipment - (755,826) - Net cash (used for) capital and related financing activities - (711,456) - Net increase (decrease) in cash and cash equivalents 212,162 (719,623) 780,104 Cash and cash equivalents, beginning 1,068,899 4,373,706 7,134,536 Cash and cash equivalents, ending 1,281,061$ 3,654,083$ 7,914,640$ Reconciliation of cash and cash equivalents at end of year to the Statement of Net Position:

Cash and investments 1,281,061$ 3,654,083$ 7,830,891$ Cash and investments, restricted - - 83,749 Total cash and cash equivalents at end of year 1,281,061$ 3,654,083$ 7,914,640$ Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

Operating income (loss) 510,067$ (557,669)$ (552,193)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation expense 10,636 530,918 - Other nonoperating revenue 590 - 605,369 Pension related adjustments (181,974) - (60,658) OPEB related adjustments (2,304) (633)
(Increase) in prepaid expenses - (36,171) - Increase (decrease) in accounts payable 30,976 54,755 12,660 Increase in accrued liabilities 12,452 - 7,437 Increase in claims payable - - 819,000 (Decrease) in compensated absences payable (8,228) - - Total adjustments (137,852) 549,502 1,383,175 Net cash provided by (used for) operating activities 372,215$ (8,167)$ 830,982$

CITY OF EL CAJON
Combining Statement of Cash Flows
Internal Service Funds
For the fiscal year ended June 30, 2022
150
Information Other Post
Technology Employment
Services Benefits Total
3,817,789$ 956,956$ 11,083,637$
(2,730,086) (7,140) (7,852,152) (969,340) (921,238) (1,889,514) 118,363 28,578 1,341,971
(123,515) (216,877)
(63,000) - (126,000) (54,569) - (109,138) (241,084) - (452,015) - - 44,370 - - (755,826) - - (711,456) (122,721) 28,578 178,500
2,584,471 705,531 15,867,143
2,461,750$ 734,109$ 16,045,643$
2,461,750$ 734,109$ 15,961,894$
- - 83,749 2,461,750$ 734,109$ 16,045,643$
450,981$ 29,723$ (119,091)$
18,213 - 559,767 3,309 955 610,223
(242,631) - (485,263) (3,163) (6,100)
(4,000) - (40,171) (11,653) (2,100) 84,638
26,622 - 46,511 - - 819,000 (119,315) - (127,543) (332,618) (1,145) 1,461,062 118,363$ 28,578$ 1,341,971$
151

152
The Valley of Opportunity

CITY OF EL CAJON

FIDUCIARY FUNDS - CUSTODIAL FUNDS
FIDUCIARY FUNDS - Custodial Funds are used to account for assets held by the City in a purely custodial capacity for other governments, agencies, or individuals.

Special Assessments
This fund accounts for the special assessments levied and collected for the Downtown El Cajon Business Improvement District and for the delinquent re fuse service fees liened, assessed, and collected for Waste Management.

Heartland Communications Facility Authority
This fund accounts for activities to provide emergency call recei ving and dispatching services to participating agencies.

Heartland Fire Training Authority
This fund accounts for activities of the fire-fighting trainin g facility and training courses for personnel of the member agencies.
153
Heartland Heartland
Special Communications Fire Training
Assessments Facility Authority Authority Total
ASSETS
Cash and investments 67,463$ 4,675,208$ 1,174,341$ 5,917,012$ Receivables:

Accounts 8,364 33,379 18,974 60,717 Intergovernmental - 412,373 - 412,373 Interest - 15,184 3,604 18,788 Total assets 75,827 5,136,144 1,196,919 6,408,890

LIABILITIES
Accounts payable and other liabilities - 140,898 19,467 160,365 Due to other agencies 17,315 - - 17,315 Total liabilities 17,315 140,898 19,467 177,680

NET POSITION
Restricted for:

Organizations and other agencies 58,512 4,995,246 1,177,452 6,231,210 Total net position 58,512$ 4,995,246$ 1,177,452$ 6,231,210$

CITY OF EL CAJON
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2022
154
Heartland Heartland
Special Communications Fire Training
Assessments Facility Authority Authority Total

ADDITIONS
Contributions
Other agencies -$ 4,260,838$ 345,142$ 4,605,980$ Participants - - 120,506 120,506 Investment earnings - (116,568) (27,425) (143,993) Assessment collections for other agencies 504,057 - - 504,057 Miscellaneous - 55,052 469 55,521 Total additons 504,057 4,199,322 438,692 5,142,071

DEDUCTIONS
Payments of assessments to other agencies 445,545 - - 445,545 Program/project expenses - 4,091,983 482,079 4,574,062 Total deductions 445,545 4,091,983 482,079 5,019,607 Net change in fiduciary net position 58,512 107,339 (43,387) 122,464 Net position, beginning - 4,887,907 1,220,839 6,108,746 Net position, ending 58,512$ 4,995,246$ 1,177,452$ 6,231,210$

CITY OF EL CAJON
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the fiscal year ended June 30, 2022
155

156
The Valley of Opportunity

STATISTICAL SECTION
157

STATISTICAL SECTION
The Statistical Section presents detailed information as a conte xt for understanding what the information in the financial statements, note disclosures, a nd required supplementary information say about the City's overall financial health.

Financial Trends (Pages 159-163)
These schedules contain trend information to help the reader un derstand how the City's financial performance and well-being have changed over time.

Revenue Capacity (Pages 164-170)
These schedules contain information to help the reader assess the Ci ty's most significant local revenue source, the property tax.

Debt Capacity (Pages 171-174)
These schedules present information to help the reader assess the a ffordability of the City's current levels of outstanding debt and the City's abil ity to issue additional debt in the future.

Demographic and Economic Information (Pages 175-176)
These schedules offer demographic and economic indicators to he lp the reader understand the environment within which the City's financial a ctivities take place.

Operating Information (Pages 177-180)
These schedules contain service and infrastructure data to help t he reader understand how the information in the City's financial statements relate s to the services the City provides and the activities it performs.
158
2013 2014 2015 (a) 2016 2017 2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets 193,537,908$ 210,077,278$ 214,159,409$ 218,963,053$ 217,482,744$ 224,144,319$ 229,501,003$ 225,818,278$ 216,346,514$ 211,216,164$ Restricted 59,087,555 61,853,603 65,833,008 58,121,515 57,960,163 50,168,314 50,726,336 37,057,587 42,836,002 42,459,738 Unrestricted 28,212,027 30,515,904 (104,296,561) (94,443,051) (91,791,772) (97,584,297) (110,074,824) (107,090,485) (107,845,573) (86,013,407) Total governmental activities net position 280,837,490$ 302,446,785$ 175,695,856$ 182,641,517$ 183,651,135$ 176,728,336$ 170,152,515$ 155,785,380$ 151,336,943$ 167,662,495$ Business-type activities
Net investment in capital assets 37,072,743$ 46,121,178$ 38,577,875$ 36,498,175$ 38,505,588$ 43,106,240$ 41,234,527$ 48,223,010$ 47,925,951$ 49,891,775$ Restricted - - 261,645 231,764 264,273 357,552 592,205 592,205 592,205 592,205 Unrestricted 18,044,303 6,881,080 14,669,740 21,239,228 19,898,344 18,826,347 22,430,175 17,932,192 20,059,488 24,702,769 Total business-type activities net position 55,117,046$ 53,002,258$ 53,509,260$ 57,969,167$ 58,668,205$ 62,290,139$ 64,256,907$ 66,747,407$ 68,577,644$ 75,186,749$ Primary government
Net investment in capital assets 230,610,651$ 256,198,456$ 252,737,284$ 255,461,228$ 255,988,332$ 267,250,559$ 270,735,530$ 274,041,288$ 264,272,465$ 261,107,939$ Restricted 59,087,555 61,853,603 66,094,653 58,353,279 58,224,436 50,525,866 51,318,541 37,649,792 43,428,207 43,051,943 Unrestricted 46,256,330 37,396,984 (89,626,821) (73,203,823) (71,893,428) (78,757,950) (87,644,649) (89,158,293) (87,786,085) (61,310,638) Total primary government net position 335,954,536$ 355,449,043$ 229,205,116$ 240,610,684$ 242,319,340$ 239,018,475$ 234,409,422$ 222,532,787$ 219,914,587$ 242,849,244$ Source: City of El Cajon - Finance Department
Notes:(a) The City implemented GASB Statement 68 in fiscal year 2015, which had a significant effect on the unrestricted fund balance.

CITY OF EL CAJON
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
159
2013 2014 2015(a) 2016 2017 2018 2019 2020 2021 2022
Expenses
Governmental activities:

General government 9,148,684$ 11,388,403$ 9,344,953$ 8,606,868$ 9,205,742$ 8,375,482$ 8,118,423$ 8,360,591$ 8,411,073$ 10,112,686$ Public safety 40,578,344 42,919,265 45,235,084 47,292,321 52,741,903 58,123,097 64,202,864 66,478,760 63,835,598 50,104,115 Public works 12,281,575 10,796,564 10,806,104 10,984,725 13,175,937 14,984,088 17,520,996 18,208,412 18,905,842 15,717,977 Recreation 4,622,822 4,958,144 5,526,542 5,526,453 3,242,986 4,916,098 4,602,764 7,294,395 4,900,145 7,957,462 Community development 4,669,220 2,665,013 2,906,824 3,501,648 3,089,380 4,223,953 4,337,787 4,761,873 9,329,987 3,892,396 Interest on long-term debt 987,165 792,604 483,777 174,542 55,909 50,652 43,072 37,833 1,499,559 3,352,189 Total governmental activities expenses 72,287,810 73,519,993 74,303,284 76,086,557 81,511,857 90,673,370 98,825,906 105,141,864 106,882,204 91,136,825 Business-type activities:

Wastewater 17,710,456 17,378,120 15,867,424 16,700,356 19,429,363 17,389,328 20,017,217 23,790,188 21,948,424 21,208,600 Total business-type activities expenses 17,710,456 17,378,120 15,867,424 16,700,356 19,429,363 17,389,328 20,017,217 23,790,188 21,948,424 21,208,600 Total primary government expenses 89,998,266$ 90,898,113$ 90,170,708$ 92,786,913$ 100,941,220$ 108,062,698$ 118,843,123$ 128,932,052$ 128,830,628$ 112,345,425$ Program Revenues
Governmental activities:

Charges for services:

General government 2,229,570$ 2,416,175$ 1,523,652$ 1,824,092$ 1,653,820$ 2,319,957$ 2,474,624$ 2,889,061$ 3,222,477$ 3,469,892$ Public safety 4,145,824 4,956,285 4,580,713 3,829,943 1,714,929 2,018,135 2,203,829 2,591,701 2,181,275 2,331,565 Public works 1,184,869 1,270,454 1,067,571 1,198,740 1,145,382 1,728,558 1,541,113 1,411,722 1,473,685 1,393,173 Recreation 696,275 1,153,051 992,221 843,635 823,711 679,813 667,450 2,683,986 265,879 4,127,303 Community development 2,166,733 332,193 1,540,318 1,962,232 1,417,215 1,864,899 3,339,544 2,237,967 8,122,977 2,693,437 Operating grants and contributions 6,811,610 6,717,307 6,970,968 6,049,885 6,478,047 7,581,512 6,878,948 6,353,384 8,890,194 7,429,896 Capital grants and contributions 16,162,285 23,453,340 14,847,109 7,468,431 5,625,620 3,819,611 6,755,129 3,966,957 4,650,549 4,486,931 Total governmental activities revenues 33,397,166 40,298,805 31,522,552 23,176,958 18,858,724 20,012,485 23,860,637 22,134,778 28,807,036 25,932,197 Business-type activities:

Wastewater
Charges for services 15,369,359 15,363,078 20,341,567 19,577,156 19,903,017 20,395,530 21,060,708 21,351,388 24,087,595 28,970,040 Total business-type activities revenues 15,369,359 15,363,078 20,341,567 19,577,156 19,903,017 20,395,530 21,060,708 21,351,388 24,087,595 28,970,040 Total primary government revenues 48,766,525$ 55,661,883$ 51,864,119$ 42,754,114$ 38,761,741$ 40,408,015$ 44,921,345$ 43,486,166$ 52,894,631$ 54,902,237$ (Continued)
Fiscal Year

CITY OF EL CAJON
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
160
2013 2014 2015(a) 2016 2017 2018 2019 2020 2021 2022
Fiscal Year

CITY OF EL CAJON
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Net (expense)/revenue
Governmental activities (38,890,644)$ (33,221,188)$ (42,780,732)$ (52,909,599)$ (62,653,133)$ (70,660,885)$ (74,965,269)$ (83,007,086)$ (78,075,168)$ (65,204,628)$ Business-type activities (2,341,097) (2,015,042) 4,474,143 2,876,800 473,654 3,006,202 1,043,491 (2,438,800) 2,139,171 7,761,440 Total primary government net expense (41,231,741)$ (35,236,230)$ (38,306,589)$ (50,032,799)$ (62,179,479)$ (67,654,683)$ (73,921,778)$ (85,445,886)$ (75,935,997)$ (57,443,188)$ General Revenues and Changes in Net Position
Governmental activities:

Taxes
Property taxes 20,468,597$ 21,692,259$ 21,360,064$ 21,396,116$ 17,575,902$ 18,709,738$ 20,147,423$ 20,964,049$ 22,102,541$ 23,485,978$ Sales taxes 24,328,310 25,367,434 26,056,239 29,493,906 37,559,282 37,163,462 37,055,679 35,936,128 42,005,039 45,502,199 Franchise taxes 4,767,474 4,791,459 5,044,461 5,196,514 5,148,007 5,311,723 5,511,422 5,947,736 6,388,777 6,772,687 Transient lodging taxes 1,057,224 1,138,761 1,330,117 1,378,472 1,408,750 1,613,926 2,116,816 1,794,920 2,126,234 2,797,308 Business license taxes 768,726 766,515 788,397 775,603 833,371 837,895 843,422 818,288 832,383 735,274 Intergovernmental, unrestricted 51,550 87,385 828,833 40,931 45,845 54,999 50,668 83,545 76,565 4,540,708 Investment earnings 179,961 39,032 54,446 599,306 241,282 402,994 2,645,785 3,159,443 92,406 (2,793,477) Other 1,352,057 801,775 676,603 703,000 821,817 (356,651) 18,233 (64,158) 2,786 18,985 Special item - net gain(loss) on sale (597,018) - - - - - - - - - Special item - payment to affected taxing entities - - (1,234,000) - - - - - - - Extraordinary gain - net transfer of assets - - - - - - - - - - Transfer in(out) 69,751 145,863 54,944 271,412 28,495 - - - - 484,433 Total governmental activities 52,446,632 54,830,483 54,960,104 59,855,260 63,662,751 63,738,086 68,389,448 68,639,951 73,626,731 81,544,095 Business-type activities:

Investment earnings 24,511 42,103 69,455 187,377 146,614 144,106 879,492 1,093,630 (70,097) (804,769) Other 15,015 4,014 5,413,909 1,667,142 107,265 471,626 43,785 3,835,670 (238,837) 136,867 Special item - net loss on sale of properties (2,225) - - - - - - - - - Transfer in(out) (69,751) (145,863) (54,944) (271,412) (28,495) - - - - (484,433) Total business-type activities (32,450) (99,746) 5,428,420 1,583,107 225,384 615,732 923,277 4,929,300 (308,934) (1,152,335) Total primary government 52,414,182$ 54,730,737$ 60,388,524$ 61,438,367$ 63,888,135$ 64,353,818$ 69,312,725$ 73,569,251$ 73,317,797$ 80,391,760$ Changes in Net Position
Governmental activities 13,555,988$ 21,609,295$ 12,179,372$ 6,945,661$ 1,009,618$ (6,922,799)$ (6,575,821)$ (14,367,135)$ (4,448,437)$ 16,339,467$ Business-type activities (2,373,547) (2,114,788) 9,902,563 4,459,907 699,038 3,621,934 1,966,768 2,490,500 1,830,237 6,609,105 Total primary government 11,182,441$ 19,494,507$ 22,081,935$ 11,405,568$ 1,708,656$ (3,300,865)$ (4,609,053)$ (11,876,635)$ (2,618,200)$ 22,948,572$ (Concluded)
Source: City of El Cajon - Finance Department
Notes:(a) The City implemented GASB Statement 68 in fiscal year 2015, which had a significant effect on the unrestricted fund balance. 161
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General fund
Nonspendable 2,331$ 2,616$ 1,769$ 8,379$ 15,598$ 7,071$ 2,507$ -$ 4,330$ -$ Restricted - - - - - - - - 2,038,034 1,810,152 Committed 10,614,730 11,415,896 12,101,021 13,052,990 13,052,990 13,052,990 15,939,481 15,619,455 15,531,197 15,883,202 Assigned 4,947,648 3,520,000 6,020,000 6,020,000 14,500,000 14,500,000 14,500,000 13,612,686 12,461,966 27,073,050 Unassigned 10,969,345 12,987,788 12,430,127 16,573,355 14,613,935 21,239,581 18,617,202 20,120,759 23,642,249 17,281,670 Total general fund 26,534,054$ 27,926,300$ 30,552,917$ 35,654,724$ 42,182,523$ 48,799,642$ 49,059,190$ 49,352,900$ 53,677,776$ 62,048,074$ All other governmental funds
Nonspendable 4,219$ 3,117$ 1,234,000$ -$ 568,839$ -$ -$ -$ -$ -$ Restricted 31,072,800 31,521,762 33,798,874 31,368,390 31,236,465 34,195,345 35,871,669 35,927,192 40,848,340 39,851,295 Committed - - - - - - - - - 596,043 Assigned 27,270,420 29,729,317 29,851,850 26,613,467 26,043,452 15,847,758 13,360,745 12,595,367 15,322,832 14,942,382 Unassigned (16,521) (42,390) - (2,250) (13,157) (8,343) (6,348) (38,210) (6,348) (83,806) Total all other governmental funds 58,330,918$ 61,211,806$ 64,884,724$ 57,979,607$ 57,835,599$ 50,034,760$ 49,226,066$ 48,484,349$ 56,164,824$ 55,305,914$ Total fund balance 84,864,972$ 89,138,106$ 95,437,641$ 93,634,331$ 100,018,122$ 98,834,402$ 98,285,256$ 97,837,249$ 109,842,600$ 117,353,988$ Source: City of El Cajon - Finance Department
Fiscal Year

CITY OF EL CAJON
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
162
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenues
Taxes 62,523,559$ 64,226,217$ 64,639,654$ 60,540,666$ 64,994,212$ 65,198,527$ 67,830,438$ 66,979,234$ 75,192,420$ 81,225,850$ Intergovernmental 6,772,809 7,353,362 7,588,943 6,950,884 7,554,839 8,604,212 10,421,364 9,047,131 12,140,641 14,957,123 Licenses and permits 959,941 1,043,011 1,376,417 1,810,129 1,190,944 1,387,579 1,984,864 1,720,324 1,701,436 1,939,791 Fines and forfeitures 948,898 730,257 707,147 614,923 634,882 685,061 573,407 543,091 370,272 504,020 Special assessments 378,829 385,163 379,048 377,388 368,315 367,458 366,589 366,681 367,954 369,284 Charges for services 5,964,400 6,165,821 5,876,605 5,165,405 3,387,982 4,561,823 4,559,913 4,811,503 4,645,205 4,697,880 Use of money and property 994,581 897,274 1,700,784 1,515,971 1,336,554 1,309,683 3,758,860 6,849,675 2,252,063 2,811,221 Other 5,269,805 3,481,182 6,053,602 6,166,811 3,393,023 2,776,383 2,481,587 1,030,115 573,336 701,703 Total revenues 83,812,822 84,282,287 88,322,200 83,142,177 82,860,751 84,890,726 91,977,022 91,347,754 97,243,327 107,206,872 Expenditures
General government 8,943,751 11,158,991 8,490,159 8,720,888 7,483,195 5,945,279 6,699,620 7,135,491 14,368,326 9,933,170 Public safety 39,216,674 41,758,874 44,909,375 45,379,458 45,326,731 48,075,169 52,026,698 54,868,132 167,079,011 53,157,288 Public works 5,523,424 5,196,417 5,161,698 5,695,177 9,930,389 11,193,499 12,358,617 12,407,958 22,518,337 10,032,091 Recreation 4,362,631 4,634,936 5,084,634 5,113,117 3,222,345 3,469,092 3,733,382 6,540,475 7,858,891 7,978,063 Community development 5,013,538 2,970,194 2,958,140 3,236,546 3,327,458 3,578,642 3,926,542 4,459,817 13,029,325 4,035,187 Capital outlay 9,054,501 6,443,922 6,269,915 8,907,171 6,982,930 13,555,195 13,551,753 6,173,793 3,684,679 7,193,341 Debt service: principal 2,997,000 7,187,000 7,472,000 7,990,000 176,498 181,423 186,484 191,687 197,035 4,855,391 Debt service: interest & fiscal charges 987,165 792,604 483,777 174,542 55,909 76,147 43,072 18,408 35,372 3,991,685 Total expenditures 76,098,684 80,142,938 80,829,698 85,216,899 76,505,455 86,074,446 92,526,168 91,795,761 228,770,976 101,176,216 Excess (deficiency) of revenues
over (under) expenditures 7,714,138 4,139,349 7,492,502 (2,074,722) 6,355,296 (1,183,720) (549,146) (448,007) (131,527,649) 6,030,656 Other financing sources (uses)
Sale of capital assets - - - - - - - - 5,810,000 - Proceeds from issuance of debt - - - - - - - - 137,723,000 793,338 Transfers in 11,555,208 16,101,370 15,070,867 12,427,065 5,454,368 3,539,200 10,629,962 5,284,107 3,873,700 10,592,013 Transfers out (11,551,690) (15,967,585) (15,029,834) (12,155,653) (5,425,873) (3,539,200) (10,629,962) (5,284,107) (3,873,700) (9,890,704) Total other financing sources (uses) 3,518 133,785 41,033 271,412 28,495 - - - 143,533,000 1,494,647 Special item - payment to affected
taxing entities - - (1,234,000) - - - - - - - Net change in fund balances 7,717,656$ 4,273,134$ 7,533,535$ (1,803,310)$ 6,383,791$ (1,183,720)$ (549,146)$ (448,007)$ 12,005,351$ 7,525,303$ Debt service as percentage of
noncapital expenditures 5.94% 10.83% 10.67% 10.70% 0.33% 0.36% 0.29% 0.25% 0.10% 9.41% Source: City of El Cajon - Finance Department
Fiscal Year

CITY OF EL CAJON
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
163
Fiscal Year Property
Sales and Use
(a) (b) Franchise
Transient
Occupancy
Business
License
Property
Transfer Other Total
2013 20,224,259$ 32,662,638$ 4,767,474$ 1,057,224$ 768,726$ 244,338$ 2,798,900$ 62,523,559$ 2014 21,285,194 33,814,507 4,791,459 1,138,761 766,515 407,065 2,022,716 64,226,217 2015 20,987,827 33,584,316 5,044,461 1,330,117 788,397 372,237 2,532,300 64,639,655 2016 21,086,961 29,620,061 5,196,514 1,378,472 775,603 309,155 2,173,900 60,540,666 2017 17,223,736 37,559,282 5,148,007 1,408,750 833,371 352,166 2,468,900 64,994,212 2018 18,339,325 37,192,949 5,311,723 1,613,926 837,895 370,413 1,899,754 65,565,985 2019 19,834,547 37,063,099 5,511,422 2,116,816 843,422 312,876 2,514,845 68,197,027 2020 20,483,031 35,936,128 5,947,736 1,794,920 818,288 481,018 1,518,113 66,979,234 2021 21,623,736 42,005,040 6,388,777 2,126,234 832,383 478,805 1,737,445 75,192,420 2022 22,501,821 45,502,200 6,772,687 2,797,309 735,274 984,158 1,932,401 81,225,850 Source: City of El Cajon - Finance Department
Notes: (a) The voters of the City approved Proposition O, a sales tax increase of half percent which was in effect from 04/01/2005 through 03/31/2015.
(b) The voters of the City approved Proposition J, a sales tax increase of half percent which will be in effect from 04/01/2009 through 03/31/2029.

CITY OF EL CAJON
Tax Revenues by Source, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
164
Business Name Business Category Business Name Business Category Auto City Used Automotive Dealers Best Buy Electronics/Appliance Stores Best Buy Electronics/Appliance Stores BMW New Motor Vehicle Dealers BMW New Motor Vehicle Dealers East County Preowned Superstore Used Automotive Dealers East County Preowned Superstore Used Automotive Dealers El Cajon Ford New Motor Vehicle Dealers El Cajon Ford New Motor Vehicle Dealers El Cajon Mitsubishi New Motor Vehicle Dealers Enterprise Rent A Car Transportation/Rentals Enterprise Rent A Car Transportation/Rentals G&M Oil Plumbing/Electrical Supplies Ferguson Enterprises Plumbing/Electrical Supplies HD Supply Service Stations G&M Oil Service Stations
Home Depot Medical/Biotech Home Depot Building Materials Hyundai of El Cajon Building Materials JC Penney Department Stores J & B Materials New Motor Vehicle Dealers Lexus New Motor Vehicle Dealers Lexus New Motor Vehicle Dealers Macys Department Stores Mercedes Benz Building Materials Mossy Nissan New Motor Vehicle Dealers Mossy Nissan New Motor Vehicle Dealers Mossy Volkswagen New Motor Vehicle Dealers Motoworld New Motor Vehicle Dealers Sears Department Stores Russell Sigler New Motor Vehicle Dealers Soco Group Service Stations Speedway Contractors Subaru of El Cajon New Motor Vehicle Dealers Subaru of El Cajon New Motor Vehicle Dealers Target Discount Department Stores Target Discount Department Stores Team Kia of El Cajon New Motor Vehicle Dealers Team Kia of El Cajon New Motor Vehicle Dealers Tesoro Refining & Marketing Co Service Stations Team Mazda of El Cajon New Motor Vehicle Dealers Toyota of El Cajon New Motor Vehicle Dealers Toyota of El Cajon New Motor Vehicle Dealers Tripton Honda New Motor Vehicle Dealers Tripton Honda New Motor Vehicle Dealers United Oil Service Stations United Oil Service Stations Vons Grocery Stores
Walmart Discount Department Stores Walmart Discount Department Stores Percent of Fiscal Year Total Paid By Top 25 Accounts = 45.12% Percent of Fiscal Year Total Paid By Top 25 Accounts = 46.97% Sources: State Board of Equalization
California Department of Taxes and Fees Administration
State Controller's Office
The HdL Companies

CITY OF EL CAJON
Principal Sales Tax Producers (Listed Alphabetically)
Current Fiscal Year and Nine Years Ago
Fiscal Year 2022 Fiscal Year 2013
165
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Apparel Stores 80,630$ 83,364$ 82,324$ 84,241$ 86,123$ 85,294$ 87,675$ 86,541$ 58,955$ 95,714$ General Merchandise 145,964 147,430 151,929 155,714 154,451 147,400 134,383 119,974 107,241 113,740 Food Stores 45,473 47,891 47,291 45,809 45,374 47,041 47,961 46,271 51,726 50,827 Eating and Drinking Places 133,326 137,793 143,339 150,819 159,558 164,357 173,666 186,546 169,593 216,080 Building Materials 192,786 209,128 230,531 247,753 261,868 272,995 280,374 323,993 296,446 328,972 Auto Dealers and Supplies 500,822 569,150 610,892 696,517 752,207 780,013 751,463 742,782 727,653 914,137 Service Stations 378,912 353,581 339,384 275,627 243,765 267,201 287,686 212,079 140,676 200,459 Other Retail Stores 251,955 264,852 267,323 280,789 286,048 280,452 291,415 295,436 280,236 347,815 All Other Outlets 401,943 431,732 451,971 479,017 508,471 612,843 626,266 667,280 831,376 900,227 Total 2,131,811$ 2,244,921$ 2,324,984$ 2,416,286$ 2,497,865$ 2,657,596$ 2,680,889$ 2,680,902$ 2,663,902$ 3,167,971$ Sources: State Board of Equalization
California Department of Taxes and Fees Administration
State Controller's Office
The HdL Companies
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative infomration regarding the sources of City revenue.

CITY OF EL CAJON
Taxable Sales by Category
Last Ten Calendar Years
(in thousands of dollars)
Calendar Year
166
Fiscal Year
Residential
Property
Commercial
Property
Industrial
Property
Other
Property
Unsecured
Property
Taxable
Assessed
Value (a)
Change
from Prior
Year
Direct Tax
Rate (b)
2013 4,607,898$ 1,310,579$ 444,734$ 334,147$ 439,823$ 7,137,181$ -1.01% 0.27945 2014 4,787,559 1,331,941 443,994 339,905 425,276 7,328,675 2.68% 0.11063 2015 5,108,591 1,368,047 447,675 344,706 400,064 7,669,083 4.64% 0.11052 2016 5,427,999 1,417,330 465,784 349,895 419,799 8,080,807 5.37% 0.11042 2017 5,731,130 1,495,880 472,218 368,216 441,287 8,508,731 5.30% 0.11031 2018 6,166,301 1,539,417 507,733 350,122 426,269 8,989,842 5.65% 0.11052 2019 6,555,644 1,595,490 539,786 377,385 450,730 9,519,035 5.89% 0.11022 2020 6,925,985 1,661,394 570,715 394,050 494,779 10,046,923 5.55% 0.11014 2021 7,387,271 1,728,043 594,413 410,744 505,699 10,626,170 5.77% 0.11012 2022 7,759,913 1,768,748 617,143 420,538 451,844 11,018,186 3.69% 0.11008 Sources: San Diego County Assessor 2011/12 - 2020/21 Combined Tax Rolls HdL, Coren & Cone
Notes: (a) Exempt values are not included in the Taxable Assessed Value (b) Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013-14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012-13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.

CITY OF EL CAJON
Assessed Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
167
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Basic City and County Levy (a) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Overlapping Tax Rates
Cajon Valley School - General Bond 0.06274 0.08634 0.08294 0.08145 0.07801 0.08761 0.08477 0.07882 0.07637 0.07310 Grossmont Healthcare District Bond 0.02005 0.02005 0.02005 0.02352 0.02352 0.02352 0.02352 0.02490 0.02490 0.02459 Grossmont Union High Bond 0.06103 0.06167 0.06118 0.06053 0.05717 0.06613 0.06482 0.06704 0.06326 0.06448 Grossmont-Cuyamaca Community College 0.03173 0.04752 0.04650 0.04539 0.04005 0.04671 0.04225 0.04038 0.03797 0.04115 La Mesa Spring Valley - General Bond 0.02591 0.02532 0.02446 0.02363 0.02289 0.02247 0.02194 0.02155 0.02144 0.04779 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 Santee - General Bond 0.03390 0.03405 0.03321 0.03277 0.03964 0.03705 0.03473 0.03411 0.05992 0.05854 Total Direct & Overlapping Tax Rates (b) 1.23886 1.27845 1.27184 1.27079 1.26478 1.28699 1.27553 1.27030 1.28736 1.31315 City's Share of 1% Levy per Proposition 13 (c) 0.11174 0.11174 0.11174 0.11174 0.11174 0.11174 0.11174 0.11174 0.11174 0.11174 Sources: San Diego County Assessor 2011/12 - 2020/21 Tax Rate Table HdL, Coren & Cone
Note: (a)
(b)
(c)
In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.

Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners.

City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City (TRA-03001). The ERAF portion of the City's Levy has been subtracted where known.

Fiscal Year

CITY OF EL CAJON
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
168
Fiscal Year
Taxes Levied
for the Fiscal
Year Amount
Percentage of
Levy Amount
Percentage of
Levy
2013 6,705,944$ 6,532,219$ 97.41 % $ 47,089 6,579,308$ 98.11 % 2014 7,038,840 6,846,801 97.27 25,902 6,872,703 97.64 2015 7,188,741 7,058,431 98.19 34,693 7,093,124 98.67 2016 7,574,543 7,443,382 98.27 41,488 7,484,870 98.82 2017 7,986,215 7,831,502 98.06 47,880 7,879,382 98.66 2018 8,434,486 8,291,346 98.30 21,906 8,313,252 98.56 2019 8,920,584 8,746,728 98.05 46,373 8,793,101 98.57 2020 9,256,244 9,027,399 97.53 82,836 9,110,235 98.42 2021 9,782,316 9,537,408 97.50 82,742 9,620,150 98.34 2022 10,314,745 9,911,689 96.09 - 9,911,689 96.09 Source: San Diego County Auditor/Controller, Property Tax Apportionment Report 2020-21 Note: (a) Information required by GASB Statement 44 differs from information reported. Collections in subsequent years represent total delinquent amounts received during the fiscal year, regardless of the fiscal year of the tax levy.

Data for delinquent tax collections by levy year is not available from the San Diego County Auditor/Controller's Office.

CITY OF EL CAJON
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Year of the Levy Total Collections to Date
Collections in
Subsequent
Years (a)
169
Taxpayer Taxable Value Rank
Percent of
City Total
Taxable
Value Taxable Value Rank
Percent of
City Total
Taxable
Value
Star-West Parkway Mall L P 253,833,909$ 1 2.25% 257,957,057 1 3.52% G K N Aerospace Chem-Tronics Inc 102,175,331 2 0.90% 56,492,760 3 0.77% Bmf V California Forest Park Fletcher 87,568,844 3 0.78% Mf Panda Nr Owner California Lp 73,115,354 4 0.65% Lysinger 1999 Trust 48,324,497 5 0.43%
Kaiser 47,739,356 6 0.42% 48,634,270 4 0.66% Cox Communications California 37,113,045 7 0.33% 25,162,047 10 0.34% Terraza T I C I Llc 35,722,387 8 0.32%
Hoban Holdings Inc 33,904,074 9 0.30%
General Atomics 33,267,900 10 0.29%
Conrad Prebys Trust 108,878,127 2 1.49%
El Cajon Energy Center Llc 37,170,034 5 0.51% San Diego Forest Park Llc 32,048,191 6 0.44% Pacific Gillespie Partners 28,873,081 7 0.39% Sears Roebuck And Company 26,455,569 8 0.36% Helf Properties Inc 26,303,624 9 0.36%
Total Top 10 Taxpayers 752,764,697 6.67% 647,974,760 8.84% City Total Taxable Value (a) 11,290,408,768$ 100.00% 7,328,080,972$ 100% Sources: San Diego County Assessor 2012/13 and 2021/22 Combined Tax Rolls and SBE Non Unitary Tax Roll HdL, Coren & Cone
Fiscal Year 2022 Fiscal Year 2013

CITY OF EL CAJON
Principal Property Tax Payers
Current Fiscal Year and Nine Years Ago
170
Fiscal Year
Sales Tax
Revenue
Bonds
Capital
Leases
Notes
Payable
Pension
Obligation
Bonds
Obligation
Due to San
Diego Metro
Wastewater
Note Payable
to State Water
Resources
Control Board
Pension
Obligation
Bonds
Total Primary
Government
Percentage
of Personal
Income
(a)
Per
Capita
(a)
2013 22,255,000$ -$ 394,000$ -$ 9,858,817$ -$ -$ 32,507,817$ 1.56% 324$ 2014 15,125,000 - 337,000 - 9,858,817 - - 25,320,817 1.23% 250 2015 7,710,000 - 280,000 - 9,858,817 1,308,225 - 19,157,042 0.96% 190 2016 - - - - 9,858,817 3,768,749 - 13,627,566 0.66% 133 2017 - 1,827,397 - - 9,858,817 3,871,418 - 15,557,632 0.73% 151 2018 - 1,645,974 - - 9,858,817 7,313,590 - 18,818,381 0.85% 178 2019 - 1,459,490 - - 9,858,817 10,393,396 - 21,711,703 0.95% 206 2020 - 1,267,803 - - - 9,977,452 - 11,245,255 0.46% 108 2021 - 1,070,768 - 141,517,800 - 9,552,774 5,692,200 157,833,542 6.09% 1,529 2022 - 1,578,715 - 136,821,800 - 9,119,178 5,503,200 153,022,893 5.71% 1,449 Source: City of El Cajon - Finance Department
Notes: (a) See Demographic and Economic Statistics on page 166 for personal income and population data.

Details regarding the City's outstanding debt can be found in Note 5 of the Notes to the Basic Financial Statements on pages 70-74.

CITY OF EL CAJON
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-type Activities
171
Total Debt Percent Applicable City’s Share of
06/30/2022 to City of El Cajon (a) Debt 06/30/2022
OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District 20,175,000$ 0.321% 64,762$ Grossmont-Cuyamaca Community College District 381,640,377 18.472% 70,496,610 Grossmont Union High School District 618,237,843 19.008% 117,514,649 Cajon Valley Union School District 160,707,393 47.046% 75,606,400 La Mesa-Spring Valley School District 58,518,377 8.648% 5,060,669 Santee School District 59,631,438 3.221% 1,920,729 Grossmont Healthcare District 243,787,076 17.445% 42,528,655 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 313,192,474$ (b) TOTAL OVERLAPPING GENERAL FUND DEBT:

San Diego County General Fund Obligations 245,340,000$ 1.801% 4,418,573$ San Diego County Pension Obligation Bonds 340,825,000 1.801% 6,138,258 San Diego County Superintendent of Schools Certificates of Participation 7,780,000 1.801% 140,118 Grossmont-Cuyamaca Community College District General Fund Obligations 32,420,000 19.008% 6,162,394 Cajon Valley Union School District Certificates of Participation 15,339,000 47.046% 7,216,386 La Mesa-Spring Valley School District Certificates of Participation 9,257,793 8.648% 800,614 Santee School District Certificates of Participation 22,394,849 3.221% 721,338 TOTAL OVERLAPPING GENERAL FUND DEBT 25,597,681$ (b) OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): 53,665,000$ 90.413-100% 49,205,194$ (b) TOTAL DIRECT DEBT - City of El Cajon
Pension Obligation Bonds 136,821,800$ 100.000% 136,821,800$ Capital Lease Obligations 1,578,715 100.000% 1,578,715 TOTAL DIRECT DEBT - City of El Cajon 138,400,515$
COMBINED TOTAL DEBT 526,395,864$
Ratios to 2021-22 Assessed Valuation (in thousands of dollars): 11,018,186$ Total Overlapping Tax and Assessment Debt 2.84%
Total Overlapping General Fund Debt 0.23%
Overlapping Tax Increment Debt (Successor Agencies) 0.45% Total Direct Debt 1.26%
Combined Total Debt 4.78%
Source: San Diego County Assessor Data. MuniServices, LLC / an Avenu Insights & Analytics Company Notes: (a)
(b) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease obligations.

CITY OF EL CAJON
Direct and Overlapping Governmental Activities Debt
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.

As of June 30, 2022
172
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Net assessed valuation 7,137,181$ 7,328,675$ 7,669,083$ 8,080,807$ 8,508,731$ 8,989,842$ 9,519,035$ 10,046,923$ 10,626,170$ 11,018,185$ State legal debt limit (a) 1,070,577 1,099,301 1,150,362 1,212,121 1,276,310 1,348,476 1,427,855 1,507,038 1,593,926 1,652,728 Less amount of debt applicable to the limit (b):

Sales Tax Revenue Bonds 22,255 15,125 7,710 - - - - - - - Notes Payable 394 337 2,890 - - - - - - - Capital Lease Obligations - - - - 1,827 1,646 1,459 1,268 1,071 1,579 Pension Obligation Bonds 141,518 136,822
Total net debt applicable to limit 22,649 15,462 10,600 - 1,827 1,646 1,459 1,268 142,589 138,401 Legal debt margin 1,047,928$ 1,083,839$ 1,139,762$ 1,212,121$ 1,274,483$ 1,346,830$ 1,426,396$ 1,505,770$ 1,451,337$ 1,514,327$ Total net debt applicable to the limit as a
percentage of debt limit 2.12% 1.41% 0.92% 0.00% 0.14% 0.12% 0.10% 0.08% 8.95% 8.37% Sources: San Diego County Assessor 2011/12 - 2020/21 Combined Tax Rolls HdL, Coren & Cone
City of El Cajon Finance Department
Notes: (a) State law limits indebtedness for California cities to 15% of the assessed valuation of property within the City. (b) Details regarding the City's outstanding debt can be found in Note 5 of the Notes to the Basic Financial Statements on pages 70-74.

CITY OF EL CAJON
Legal Debt Margin Information
Last Ten Fiscal Years
(in thousands of dollars)
Fiscal Year
173
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

NOTE PAYABLE - STATE WATER

RESOURCES CONTROL BOARD
Wastewater Revenues -$ -$ -$ 21,431,675$ 19,985,038$ 20,910,132$ 21,848,143$ 22,350,809$ 24,087,595$ 28,845,517$ Less: Operations and Maintenance - - - (12,260,836) (14,563,908) (13,833,983) (14,128,459) (20,830,199) (21,948,424) (21,208,600) Net revenues - - - 9,170,839 5,421,130 7,076,149 7,719,684 1,520,610 2,139,171 7,636,917 Debt Service
Principal - - - - 184,664 270,557 467,098 415,943 424,678 433,596 Interest - - - - 64,545 86,995 125,107 176,261 167,527 158,608 Coverage - - - - 21.75 19.79 13.04 2.57 3.61 12.90 REVENUE BONDS (a)
Sales Tax Revenues 8,334,328$ 8,447,073$ 7,528,077$ 126,155$ -$ 29,487$ 7,420$ 27,459$ 5,858$ -$ Debt Service
Principal 2,940,000 7,130,000 7,415,000 - - - - - - - Interest 964,300 772,600 466,700 - - - - - - - Coverage 2.13 1.07 0.96 - - - - - - - TAX ALLOCATION BONDS (b)
Property Tax Incremental Revenues -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Debt Service
Principal - - - - - - - - - - Interest - - - - - - - - - - Pass-through payments - - - - - - - - - - Coverage - - - - - - - - - - Source: City of El Cajon - Finance Department
Notes: (a) The Sales Tax Revenue Bonds (Proposition O - Public Safety Building Bonds) were paid in full in fiscal year 2016. (b) The El Cajon Redevelopment Agency's outstanding tax allocation bonds were transferred to the Successor Agency on 02/01/2012.

Fiscal Year

CITY OF EL CAJON
Pledged-Revenue Coverage
Last Ten Fiscal Years
174
Calendar
Year
Population
(a)
Personal Income
(in thousands) (b)
Per Capita
Personal Income
(b)
Unemployment
Rate
(c)
Median Age
(b)
% of Population
25+ with High
School Degree
(b)
% of Population
25+ with
Bachelor's Degree
(b)
2012 100,460 $ 2,088,061 $ 20,785 9.5% 32.6 78.8% 17.1% 2013 101,256 2,058,940 20,334 8.3% 32.4 78.6% 17.9%
2014 101,003 1,991,880 19,721 9.2% 32.4 78.4% 17.5%
2015 102,337 2,075,352 20,279 7.5% 32.8 79.2% 18.2%
2016 102,803 2,133,683 20,755 6.7% 33.3 80.4% 19.1%
2017 105,557 2,201,499 20,856 6.5% 34.1 81.1% 19.1%
2018 105,559 2,296,327 21,753 3.6% 33.8 82.2% 19.1%
2019 104,393 2,450,181 23,470 3.6% 34.0 83.0% 20.1%
2020 103,243 2,593,529 25,120 12.1% 34.0 84.0% 20.9%
2021 105,638 2,678,290 25,353 9.0% 35.0 85.1% 22.1%
Source: HdL, Coren & Cone
Notes: (a) Population: California State Department of Finance. (b) Income, Age, and Education Data: US Census Bureau, most recent American Community Survey. (c) Unemployment Data: California Employment Develoment Department.

CITY OF EL CAJON
Demographic and Economic Statistics
Last Ten Calendar Years
175
Number of
Employees Rank
Percent of
Total
Employment
Number of
Employees Rank
Percent of
Total
Employment
Cajon Valley Union School District (1) 1,884 1 4.23% 970 1 1.79% Grossmont-Cuyamaca Community College District (2) 1,169 2 2.63% 642 2 1.18% GKN Aerospace Chem-Tronics Inc 967 3 2.17% 641 3 1.18%
Grossmont UHSD 744 4 1.67% 385 7 0.71%
Taylor Guitars 544 5 1.22% 385 8 0.71%
Avocado Post Acute (Formerly El Dorado Care Center) 476 6 1.07% City of El Cajon 413 7 0.93% 405 6 0.75%
Wal-Mart Stores (2 locations) 405 8 0.91% 455 4 0.84%
The Home Depot 387 9 0.87% 360 9 0.66%
Country Hills Health Care 329 10 0.74% 355 10 0.65%
University Mechanical & Engineering 455 5 0.84%
Total Top 10 Employers 7,318 16.44% 5,053 9.31%
Total City Labor Force 44,500 54,200
Source: MuniServices, LLC /an Avenu Insights & Analytics Company (Results based on direct correspondence with City's local businesses) 2012-13 previously published City of El Cajon Annual Comprehensive Financial Report City Labor Force: California Employment Development Department Labor Force Data.

Notes: (a) Includes full-time classified and certificated employees in El Cajon only and the district office. (b) Includes full-time and part-time classified employees, full-time and part-time certificated employees, certificated adminstrators, management and supervisory.

CITY OF EL CAJON
Top Ten Employers
Current Fiscal Year and Nine Years Ago
Business Name
Fiscal Year 2013Fiscal Year 2022
176
Function/Program 2013 2014 2015 2016 2017 2018 (a) 2019 (b) 2020 2021 2022 General Government
City Manager 9.35 9.35 14.20 14.75 3.05 3.85 6.35 6.75 5.50 6.00 City Clerk 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 City Attorney 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Finance 11.45 14.00 11.30 11.50 12.40 13.00 15.50 15.09 13.55 14.00 Human Resources (b) 0.00 0.00 0.00 0.00 0.00 0.00 5.50 5.00 4.00 4.00 Information Technology (b) 0.00 0.00 0.00 0.00 0.00 0.00 9.00 8.00 7.00 7.00 Administrative Services (b) 4.00 4.00 4.00 3.80 16.50 17.00 0.00 0.00 0.00 0.00 Police
Officers 122.00 122.00 122.00 122.00 122.00 124.00 126.00 126.00 126.00 126.00 Civilians 69.20 69.20 70.20 66.20 66.20 65.20 63.20 64.00 63.00 62.00 Animal Control 5.00 5.00 5.00 5.00 5.00 7.00 7.00 6.00 7.00 0.00 Fire
Firefighters and Officers 72.00 72.00 72.00 73.00 59.00 56.00 57.00 57.00 58.00 60.00 Civilians 2.20 2.20 2.20 2.20 2.20 2.70 2.70 3.00 3.00 2.00 Public Works
Administration and Engineering 19.05 14.10 13.80 14.70 14.30 14.40 14.00 13.40 10.70 12.30 Traffic and Streets Maintenance 23.05 24.85 25.05 26.90 22.90 27.95 27.20 26.65 23.45 21.50 Parks, Facilities, and Vehicle Maintenance 44.25 43.10 42.65 40.40 26.65 25.80 25.05 26.20 24.65 25.00 Wastewater 30.25 29.75 30.30 29.70 33.05 33.35 28.25 28.25 30.65 23.70 Recreation 15.00 15.00 16.00 16.00 16.00 41.55 41.55 43.50 43.50 15.50 Community Development 20.5 20.5 18.8 18.9 18.9 21.50 22.00 23.00 19.00 20.00 Total 452.30 450.05 452.50 450.05 423.15 458.30 455.30 456.84 444.00 404.00 Source: City of El Cajon - Finance Department
Note: (a) Beginning in fiscal year 2018, part-time and seasonal employees were included in total full-time equivalent employee count.
(b) Beginning in fiscal year 2019, Administrative Services was split into Human Resources and Information Technology.

Fiscal Year

CITY OF EL CAJON
Full-time Equivalent City Government Employees
By Function/Program
Last Ten Fiscal Years
177
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Community Development
Building permits issued 1,376 1,534 1,971 2,016 2,063 2,208 2,501 2,520 1,976 2,064 Building inspections conducted 5,340 2,522 9,529 9,608 5,631 6,919 11,142 9,580 4,500 3,687 Police
Physical arrests 5,015 5,088 6,589 5,121 4,861 4,754 6,385 6,432 4,208 4,462 Traffic violations 10,915 3,653 3,100 2,953 2,434 2,244 2,003 1,907 1,593 1,186 Parking violations 3,085 2,764 3,191 2,498 2,411 2,443 2,797 2,266 1,955 2,026 Animal Control (c)
Licenses issued 2,254 2,025 1,985 1,978 1,819 1,679 1,340 1,471 510 0 Adoptions 1,112 951 971 816 1,071 1,064 1,054 1,530 491 0 Fire
Emergency responses 11,549 12,087 12,833 13,616 14,462 15,562 15,802 14,993 15,753 16,840 Fires extinguished (a)(b) 410 368 348 409 279 157 125 360 496 407 Fires investigated (b) 410 368 96 165 38 10 125 360 2 6 Inspections 3,921 535 813 632 1,827 1,849 609 106 864 670 Abatement compliance 407 418 2,770 88 146 73 230 228 49 47 Public works
Street resurfacing (miles) 11 6 5 9 4 5 8 27 19 17
Recreation
Facility rentals 362 367 334 348 362 378 386 182 8 397
Classes and other bookings 1,799 1,704 1,596 1,134 1,218 1,281 1,433 811 3,487 1,255 Attendance 85,574 88,875 113,924 92,871 96,455 100,677 105,226 113,552 117,600 106,887 Wastewater
Average daily sewage transportation
(thousands of gallons) 7,780 7,941 7,728 6,980 7,421 6,458 7,321 7,630 6,420 6,486 Source: City of El Cajon Departments
Notes: (a) In fiscal year 2012, El Cajon Fire Department became part of the Heartland Fire and Rescue JPA and responds to fires in La Mesa, Lemon Grove, and San Miguel fire districts.
(b) Data presented are for fires within El Cajon city limits. (c) As of October 2020, San Diego Humane Society was contracted to provide animal shelter and care services at the El Cajon Animal Shelter.

CITY OF EL CAJON
Operating Indicators by Function/Program
Last Ten Fiscal Years
Fiscal Year
178
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Government
City Hall 1 1 1 1 1 1 1 1 1 1
Police
Headquarters 1 1 1 1 1 1 1 1 1 1
Animal shelter 1 1 1 1 1 1 1 1 1 1
Patrol vehicle 56 56 56 56 59 59 59 59 59 53
Undercover vehicles 30 30 34 34 31 31 31 31 31 46
Tactical vehicles 5 5 5 5 5 5 5 5 5 5
Fire
Stations 4 4 4 4 4 4 4 4 4 4
Engines/Pumper trucks 7 7 7 7 7 7 7 7 7 9
Ladder truck 1 1 1 1 1 1 1 1 1 1
Battalion chief units 2 2 2 2 2 2 2 2 2 2
Ambulances (a) 7 7 7 4 1 1 1 0 0 1
Public works
Streets (miles) 194 194 194 194 194 194 194 194 194 194 Streetlights 2,352 2,356 2,360 2,360 2,688 2,732 2,732 2,732 2,732 3,267 Traffic signals 112 112 112 112 112 113 113 113 113 113 (Continued)

CITY OF EL CAJON
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
179
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

CITY OF EL CAJON
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
Parks and recreation
Acreage 120 120 120 120 120 120 120 120 120 120
Community/recreation centers 6 6 6 6 7 7 7 7 7 7
Playing fields 5 5 5 5 5 5 5 5 5 5
Playing courts 5 5 5 5 5 5 5 5 5 5
Playgrounds 6 6 6 6 7 7 7 7 8 8
Outdoor gym 0 0 0 0 2 2 2 2 2 2
Tennis courts 1 1 1 1 1 1 1 1 1 2
Baseball/Softball diamonds 5 5 5 5 5 5 5 5 5 5
Soccer/Football/Fields 5 5 5 5 5 5 5 5 5 5
Outdoor basketball courts 3 3 3 3 3 3 3 3 4 4
Gymnasiums 4 4 4 4 4 4 4 4 4 4
Swimming pool 1 1 1 1 1 1 1 1 1 1
Skate park/Skate plaza 1 1 1 1 2 2 2 2 2 2
Outdoor multi-use sports area 0 0 0 0 0 0 0 0 1 2
Dog park 1 1 1 1 3 3 3 3 4 4
Amphitheaters 3 3 3 3 3 3 3 3 3 3
Performing arts center 1 1 1 1 1 1 1 1 1 1
Wastewater
Sanitary sewers (miles) 195 195 195 195 195 195 195 195 195 195 Storm sewers (miles) 72 72 72 72 82 82 82 82 82 82
Source: City of El Cajon Departments
Notes: (a) Three (3) ambulances were sold in fiscal year 2017. (Concluded)
180

CITY OF EL CAJON

ACKNOWLEDGEMENTS
Finance Department
Lilia Calip
Victoria Danganan
Luca Gonzales
Lee Ann Jones-Santos
Jason Kang
Martha Lopez
Zachary Moran
Maria Navarro
Alma Ramirez
Autumn Reberger
Martin Reid
Mara Romano
Clay Schoen, CPA
April Solis
Heidi Steppler

C I T Y O F E L C A J O N
200 Civic Center Way
El Cajon, California 92020
www.elcajon.gov

13 Independent Auditor’s Report

To the Honorable Mayor and Members of the City Council
City of El Cajon, California

Report on the Audit of the Financial Statements

Opinions

Basis for Opinions

Responsibilities of Management for the Financial Statements

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 735 E. Carnegie Dr. Suite I 00
San Bernard ino, CA 92408
909 889 087 1 T
909 889 536 1 F
ramscpa.net

ROGERS, ANDERSON, MALODY & SCOTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
STAB ILITY. ACCURACY. TRUST.

14 Auditor’s Responsibilities for the Audit of the Financial Statements

In performing an audit in accordance with GAAS, we:

Required Supplementary Information

15 Supplementary Information

Other Information included in the Annual Report

Other Reporting Required by Government Auditing Standards

San Bernardino, California
March 9, 2023

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Independent Accountant’s Report

To the Honorable City Council
City of El Cajon, California

We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the City of El Cajon, California (the City) for the year ended June 30, 2022. The management of the City is responsible for the accompanying Appropriations Limit Worksheet.

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

The procedures and the associated findings are as follows:

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

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

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

Finding: No exceptions were noted as a result of our
procedures.
735 E. Carnegie Dr. Suite I 00
San Bernard ino, CA 92408
909 889 087 1 T
909 889 536 1 F
ramscpa.net

ROGERS, ANDERSON, MALODY & SCOTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
STAB ILITY. ACCURACY. TRUST.

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

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

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

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

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying Appropriations Limit Computation Worksheet for the year ended June 30, 2022. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

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

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

San Bernardino, California
March 17, 2023

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CITY OF EL CAJON

APPROPRIATIONS LIMIT COMPUTATION
2021- 2022

2021-22Per Capita Personal Income change 5.73%Population change:City population growth -0.32%CPI change converted to a ratio 1.0573Population change converted to a ratio 0.9968Calculation of growth factor 1.05402020-2021 Appropriations Limit 173,575,944$ 2021-2022 Appropriations Limit($173,575,944 X 1.054)* 182,949,045$ * = allow for rounding

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To the Honorable City Council
City of El Cajon, California

We have audited the financial statements of the City of El Cajon (the City) as of and for the year ended June 30, 2022, and have issued our report thereon dated March 9, 2023. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit

As communicated in our engagement letter dated May 16, 2022, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

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

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

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, and our firm have complied with all relevant ethical requirements regarding independence.

735 E. Carnegie Dr. Suite I 00
San Bernard ino, CA 92408
909 889 087 1 T
909 889 536 1 F
ramscpa.net

ROGERS, ANDERSON, MALODY & SCOTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
STAB ILITY. ACCURACY. TRUST.

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Significant Risks Identified

We have identified the possibility of the following significant risks:

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

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

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

Qualitative Aspects of the City’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. The City adopted GASB Statement No. 87, Leases, during 2022. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates

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

The most sensitive accounting estimates affecting the financial statements are as follows:

Management's estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements taken as a whole.

Management's estimate of capital asset depreciation is based on historical estimates of each capitalized item's useful life. We evaluated the key factors and assumptions used to develop the estimated useful lives in determining that it is reasonable in relation to the financial statements taken as a whole.

Management's estimate of the net OPEB liability, related deferred inflows and outflows and OPEB expense are based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole.

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

Management’s estimate of leases receivable, deferred inflows of resources related to leases, and lease amortization is based on present value calculations using certain terms and assumptions in the lease agreements in accordance with generally accepted accounting principles. Management’s estimate of lease liabilities, right-to-use assets, and asset amortization is based on present value calculations using certain terms and assumptions in the lease agreements and estimated useful lives of assets in accordance with generally accepted accounting principles. We evaluated the key factors and assumptions used to develop the lease related estimates in determining that it is reasonable in relation to the financial statements taken as a whole.

Financial Statement Disclosures

Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:

The disclosure of fair value of investments in the notes to the financial statements represents amounts susceptible to market fluctuations.

The disclosure of accumulated depreciation in the notes to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.

The disclosure of net OPEB liability, deferred inflows and outflows and OPEB expense in the notes to the financial statements are based on actuarial assumptions. Actual future liabilities, deferred inflows and outflows and pension expense may vary from disclosed estimates.

The disclosure of net pension liability, deferred inflows and outflows and pension expense in the notes to the financial statements are based on actuarial assumptions. Actual future liabilities, deferred inflows and outflows and pension expense may vary from disclosed estimates.

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

The financial statement disclosures are neutral, consistent, and clear.

Significant Difficulties Encountered during the Audit

We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit.

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Disagreements with Management

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

Representations Requested from Management

We have requested certain written representations from management, which are included in the attached letter dated March 9, 2023.

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

Other Significant Matters, Findings, or Issues

In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the city, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information included in Annual Reports

Pursuant to professional standards, our responsibility as auditors for other information in documents containing the City’s audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.

However, in accordance with such standards:

We applied certain limited procedures to the required supplementary information (RSI), as listed in the basic financial statements table of contents, which are required information that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining and individual nonmajor fund financial statements, the budgetary comparison schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the transmittal letter and statistical section, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it.

-5-
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

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

March 9, 2023

The Valley of Opportunity
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March 9, 2023
Rogers, Anderson, Malady & Scott, LLP
735 E Carnegie Drive, Suite 100
San Bernardino, California 92408
Finance
This representation letter is provided in connection with your audit of the basic financial statements of the City of El Cajon (the City) as of June 30, 2022 and for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the basic financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows, where applicable, of the various opinion units of the City in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GMP).

Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.

We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of March 9, 2023:

Financial Statements
• We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated May 16, 2022, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GMP .
• We acknowledge our responsibility 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.
• We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
• We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
• We have reviewed, approved, and taken responsibility for the financial statements and related notes.
• We have a process to track the status of audit findings and recommendations. • We have identified and communicated to you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented.
• Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.

City of El Cajon • 200 Civic Center Way• El Cajon, CA 92020 (619) 441-1721 • Fax (619) 588-1190
www.cityofelcajon.us
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• All related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. • All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. • The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.
• All component units, as well as joint ventures with an equity interest , are included and other joint ventures and related organizations are properly disclosed. • All funds and activities are properly classified .
• All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments , GASB Statement No. 37, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments: Omnibus as amended , and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users.
• All components of net position, nonspendable fund balance, and restricted, committed, assigned , and unassigned fund balance are properly classified and, if applicable , approved . • Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy.
• All revenues within the statement of activities have been properly classified as program revenues , general revenues, contributions to term or permanent endowments , or contributions to permanent fund principal.
• All expenses have been properly classified in or allocated to functions and programs in the statement of activities , and allocations, if any, have been made on a reasonable basis. • All interfund and intra-City transactions and balances have been properly classified and reported. • Deposit and investment risks have been properly and fully disclosed . • Capital assets, including infrastructure assets, are properly capitalized , reported, and if applicable, depreciated .
• All required supplementary information is measured and presented within the prescribed guidelines.
• With regard to investments and other instruments reported at fair value:
o The underlying assumptions are reasonable and they appropriately reflect management's intent and ability to carry out its stated courses of action . o The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied. o The disclosures related to fair values are complete , adequate , and in accordance with U.S.

GAAP.
o There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements.
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Information Provided
• We have provided you with :
o Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters; o Additional information that you have requested from us for the purpose of the audit; and o Unrestricted access to persons within the City from whom you determined it necessary to obtain audit evidence .
o A final version of the annual report (including all the documents that, together, comprise the annual report) in a timely manner prior to the date of the auditor's report. • All transactions have been recorded in the accounting records and are reflected in the financial statements .
• We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.
• We have no knowledge of any fraud or suspected fraud that affects the City and involves:
o Management;
o Employees who have significant roles in internal control; or o Others where the fraud could have a material effect on the financial statements. • We have no knowledge of any allegations of fraud , or suspected fraud, affecting the City's financial statements communicated by employees , former employees, vendors , regulators , or others . • We have disclosed to you all known actual or possible litigation, claims , and assessments whose effects should be considered when preparing the financial statements . There have been no changes or updates to legal information disclosed to you by our attorneys since the date of such legal response and now.
• We have disclosed to you the identity of the City's related parties and all the related party relationships and transactions of which we are aware.
• There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. • The City has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
• We have disclosed to you all guarantees, whether written or oral, under which the City is contingently liable.
• We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB- 62), Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply , or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year. • We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts , including legal and contractual provisions for reporting specific activities in separate funds . -3-
• There are no:
o Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations.
o Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62.
o Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62.
o Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12).
• Unless disclosed to you, the City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you.
• We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance. • All electronic copies of documents provided to you were copies of the true, unaltered originals.

Supplementary Information in Relation to the Financial Statements as a Whole With respect to the supplementary information accompanying the financial statements:
• We acknowledge our responsibility for the presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America. • We believe the supplementary information, including its form and content, is fairly presented in accordance with any applicable criteria.
• The methods of measurement or presentation have not changed from those used in the prior period.
• When the supplementary information is not presented with the audited financial statements , management will make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the City of the supplementary information and the auditor's report thereon.
• We acknowledge our responsibility to include the auditor's report on the supplementary information in any document containing the supplementary information and that indicates the auditor reported on such supplementary information.
• We acknowledge our responsibility to present the supplementary information with the audited financial statements or, if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the City of the supplementary information and the auditor's report thereon. -4-
Required Supplementary Information
With respect to the required supplementary information accompanying the financial statements :
• We acknowledge our responsibility for the presentation of the required supplementary information in accordance with accounting principles generally accepted in the United States of America. • We believe the required supplementary information , including its form and content , is measured and fairly presented in accordance with any applicable criteria. • The methods of measurement or presentation have not changed from those used in the prior period.

Pension and Postretirement Benefits
We believe that the actuarial assumptions and methods used to measure pension and other postemployment benefit liabilities and costs for financial accounting purposes are appropriate in the circumstances.

Use of a Specialist
We agree with the findings of specialists in evaluating the net pension liability and net OPEB liability (and related deferred amounts) and have adequately considered the qualifications of the specialist in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists . -5-
City Council
Agenda Report
Agenda Item 11.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Vince DiMaggio, Assistant City Manager
SUBJECT: Intention to Conduct Appraisal of Travelodge at 425 W. Main Street for Possible Acquisition
RECOMMENDATION:

No action is required by the City Council. This is provided as an informational item.

BACKGROUND:

In the Fall of 2022, a City Council subcommittee comprised of Councilmembers Goble and Ortiz, along with staff, met with several motel operators to gain a better understanding of the County's "motel voucher" program. During those meetings, staff became aware of one motel, the Travelodge at 425 W. Main Street, that was interested in selling the property.

Staff is aware that discussions with a private developer have occurred but have been unsuccessful at reaching an agreement. The City has economic development funding through the American Rescue Plan Act (ARPA) that could potentially be used to acquire this site.

However, before public funds can be used in property acquisition, an appraisal must be conducted.

Staff intends to retain the services of a qualified real estate appraiser to ascertain the market value of the site. These services will be well under the city manager's signing authority of $75,000.

Once completed, staff will return to the City Council with a report on the appraisal and recommend further action, if appropriate.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Mayor Wells
SUBJECT: Council Activity Report
RECOMMENDATION:

That the City Council accepts and files the following report of Council/Mayor activities attended during the current agenda period.

BACKGROUND:

Government Code Section 53232.3(d) requires members of a legislative body to provide brief reports on meetings attended at the expense of the local agency at the next regular meeting of the legislative body.

REPORT:

Since the last City Council meeting, I have attended the following events on behalf of the City of El Cajon:

March 15, 2023 – Interview with KUSI
March 15, 2023 - Interview with One America News (OAN)
March 16, 2023 – Coast News Podcast
March 16, 2023 – Mark Larson Show
March 20, 2023 – Interview with One American News (OAN) March 20, 2023 – Interview with CBS 8
March 20, 2023 – Interview with KUSI
March 20, 2023 – Interview with Fox National News
March 20, 2023 – Carl DeMaio Show
March 21, 2023 – Special City Council Meeting
March 21, 2023 – Interview with KUSI
March 21, 2023 – Interview with Telemundo
March 21, 2023 – Mark Larson Show
March 21, 2023 – Mike Slater Show
March 22, 2023 – Interview with Fox Business News
March 22, 2023 – Steve Hilton on Fox
March 23, 2023 – Tracy Gallagher Show
March 25, 2023 – 5.11 Tactical Ribbon Cutting
March 28, 2023 – City Council Meeting
March 28, 2023 – State of the City
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I am available to answer questions.

Submitted By: Bill Wells, Mayor
City Council
Agenda Report
Agenda Item 13.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Deputy Mayor Goble
SUBJECT: DEPUTY MAYOR STEVE GOBLE
MTS (Metropolitan Transit System Board); East County Advanced Water Purification Joint Powers Authority Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate; SANDAG Public Safety Committee – Alternate.

RECOMMENDATION:

That the City Council accepts and files the following report of Council/Mayor activities attended during the current agenda period.

BACKGROUND:

REPORT:

Since the last City Council meeting, I have attended the following events on behalf of the City of El Cajon:

March 21, 2023 – Special City Council Meeting
March 28, 2023 – City Council Meeting
March 28, 2023 – State of the City
I am available to answer questions.

Submitted By: Steve Goble, Deputy Mayor
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City Council
Agenda Report
Agenda Item 14.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Councilmember Kendrick
SUBJECT: COUNCILMEMBER GARY KENDRICK
METRO Commission/Wastewater JPA; Heartland Communications; Heartland Fire Training JPA.

RECOMMENDATION:

That the City Council accepts and files the following report of Council/Mayor activities attended during the current agenda period.

BACKGROUND:

REPORT:

Since the last City Council meeting, I have attended the following events on behalf of the City of El Cajon:

March 21, 2023 – Special City Council Meeting
March 28, 2023 – City Council Meeting
March 28, 2023 – State of the City
I am available to answer questions.

Submitted By: Gary Kendrick, Councilmember
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City Council
Agenda Report
Agenda Item 15.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Councilmember Metschel
SUBJECT: COUNCILMEMBER MICHELLE METSCHEL
Harry Griffen Park Joint Steering Committee; METRO
Commission/Wastewater JPA – Alternate; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate.

RECOMMENDATION:

That the City Council accepts and files the following report of Council/Mayor activities attended during the current agenda period.

BACKGROUND:

REPORT:

Since the last City Council meeting, I have attended the following events on behalf of the City of El Cajon:

March 17, 2023 – PalmCare Pharmacy Ribbon Cutting
March 21, 2023 – Special City Council Meeting
March 21, 2023 – San Diego County Crisis Stabilization Unit Briefing March 22, 2023 – BLISS Care Foundation Ribbon Cutting
March 23, 2023 – XL Staffing Ribbon Cutting
March 24, 2023 – Home Depot Urban Roots Preparation
March 25, 2022 – Jonah Kuhio Kalaniana’o Scholarship Luncheon March 28, 2023 – City Council Meeting
March 28, 2023 – State of the City
I am available to answer questions.

Submitted By: Michelle Metschel, Councilmember
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City Council
Agenda Report
Agenda Item 16.

DATE: March 28, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Councilmember Ortiz
SUBJECT: COUNCILMEMBER PHIL ORTIZ
League of California Cities, San Diego Division; East County Economic Development Council; MTS (Metropolitan Transit System Board) – Alternate; East County Advanced Water Purification Joint Powers Authority Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate.

RECOMMENDATION:

That the City Council accepts and files the following report of Council/Mayor activities attended during the current agenda period.

BACKGROUND:

REPORT:

Since the last City Council meeting, I have attended the following events on behalf of the City of El Cajon:

March 20, 2023 – Lunch with PSAR
March 21, 2023 – Special City Council Meeting
March 22, 2023 – Briefing on County of San Diego Building Usage March 23, 2023 – XL Staffing Ribbon Cutting
March 25, 2023 – 5.11 Tactical Ribbon Cutting
March 28, 2023 – Lunch with POA
March 28, 2023 – City Council Meeting
March 28, 2023 – State of the City
I am available to answer questions.

Submitted By: Phil Ortiz, Councilmember
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City Council
Agenda Report
Agenda Item 17.

DATE: March 28, 2023
TO: City Clerk
FROM: City Attorney/General Legal Counsel
SUBJECT: Closed Session - Conference with Labor Negotiators pursuant to Government Code section 54957.6:

Agency Designated Representatives:

El Cajon Professional Firefighters Association - Local 4603 (ECPFF) RECOMMENDATION:

That the following Closed Session be scheduled for the Joint City Council / Housing Authority / Successor Agency to the El Cajon Redevelopment Agency meeting on Tuesday, March 28, 2023, at 3:00 p.m.:

CONFERENCE WITH LEGAL COUNSEL – CONFERENCE WITH LABOR NEGOTIATORS – pursuant to Government Code section 54957.6:

NAME OF CASE:

Agency Designated Representatives:

El Cajon Professional Firefighters Association - Local 4603 (ECPFF) Morgan L. Foley
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Morgan L. Foley
City Attorney/General Legal Counsel

MLF:hms

El Cajon City CouncilMarch 28, 2023

El Cajon City Council
March 28, 2023