Agenda packet — El Cajon City Council, April 23, 2024 (part 2 of 3)

RESOLUTION NO. ___-24

RESOLUTION OF THE EL CAJON CITY COUNCIL AMENDING
RESOLUTION NO. 71-93 PERTAINING TO FEES FOR CITY SERVICES

WHEREAS, at the City Council meeting on April 23 , 2024, staff recommended to the City Council that in an effort to achieve recovery of staff costs, it is necessary to update and revise some of the fees charged by the City of El Cajon to provide City services without adversely impacting the City's general fund; and

WHEREAS, in order to recover these costs, it is necessary to establish new fees and modify current fees by amending the Schedule of Miscellaneous Fees; and

WHEREAS, as required by Article XIII C of the California Constitution and California law, cities can only charge rates or fees that are equal to or less than the reasonably anticipated costs of providing the service, conferring a benefit, granting a privilege, performing regulatory duties, enforcing laws, or as a condition of property development; and

WHEREAS, in order to recover these costs, it is necessary to adopt new fees and modify current fees, and by amending the Schedule of Miscellaneous Fees; and

WHEREAS, the City Council has previously, by Resolution No. 71- 93, and amended by numerous prior resolutions, the last of which was Resolution No. 025 -23, adopted and maintained a Schedule of Miscellaneous Fees; and

WHEREAS, the proposed changes to the City’s Schedule of Miscellaneous Fees are not subject to the requirements of C alifornia Environmental Quality Act ("CEQA") pursuant to section 15273(a), Rates, Tolls, Fares, and Charges, of the CEQA Guidelines, which states that "CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by public agencies which the public agency finds are for the purpose of meeting operating expenses, including employee wage rates and fringe benefits."; and

WHEREAS, following a properly noticed public hearing at which oral and written testimony was received and considered, the City Council has determined that it is in the best interest of the City to adjust fees for City services.

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

1. The El Cajon City Council hereby approves adjustment of fees for City services pursuant to the Schedule of Miscellaneous Fees attached hereto as Exhibit "A" and made a part hereof by this reference.

2. The Schedule of Miscellaneous Fees, as initially established by Resolution No. 71-93 and amended as set forth in the recitals above, is hereby amended to include said fee adjustments. Except as otherwise provided herein, any fees described on the

Page 2 of 21 ends

Schedule of Miscellaneous Fees in conflict with the fees established or increased by this Resolution shall be void and of no force and effect.

3. The proposed changes to the City’s Schedule of Miscellaneous Fees are not subject to the requirements of CEQA pursuant to section 15273(a), Rates, Tolls, Fares, and Charges, of the CEQA Guidelines.

4. This Resolution shall take effect immediately upon its adoption, and the fee changes will take effect on July 1, 2024.

04/23/24 CC Agenda
Reso - 2024 Amendment of Schedule of Miscellaneous Fees 041524

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 3 of 21 Resolution No. __-24 adopted 04/23/24

SCHEDULE OF MISCELLANEOUS FEES
Effective 07/01/24
(Amended by Resolution No. 0__-24)

Department Fee Description Current Fee/Unit Basis

APPEALS / PUBLIC HEARINGS
City Council Public Hearing (including Appeals) $1,150.00 Non-public Hearing $390.00

Planning Commission Public Hearing $1,150.00
Non-public Hearing $390.00

Public Hearing Continuance by Applicant $85.00
Public Hearing item that is referred to Planning
Commission/City Council for new Public Hearing
Varies (actual costs of legal advertising
and notifying property owners)
Deed-Restricted Affordable Housing Program
Initiation Fee
Actual Cost, with $5,000 deposit required
for non-public hearing, and $10,000.00
deposit required for public hearing
Hearing for Tentative Subdivision and Parcel Maps
Extension of Time (includes Notice of Public Hearing
cost)
$1,050.00
Public Hearing for Street or Public Service Easement
Vacation
$1,900.00
TEFRA Public Hearing Fee $744.00

CITY CLERK
Attestation fee $10.00
Certification of documents $10.00
Conformed copy of Recorded Document County Recorder fee Copies (Standard size paper) $.25 per page
Copies of FPPC filings $.25 per page
DVD / CD / USB flash drive (copies of hearings, etc.) $20.00 Fingerprint/Live Scan $35.00
Municipal Code (hard copy) Actual cost charged by General Code Municipal Code supplements $.25 per page; no charge for electronic copies City Council Non-public Hearing $390.00
City Council Public Hearing (including appeals) $1,150.00 Public Hearing Continuance by Applicant $85.00
Recording fee $15.00 + County Recorder fees
Public hearing item that is referred to Planning
Commission/City Council for new public hearing
Varies (actual costs of legal advertising
and notifying property owners)

Records Requests:

Public Records Requests $.25 per page for paper copies only; no charge for electronic copies
Individual photographs (if available) Actual cost

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 4 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Subpoenas:

Civil Subpoena – Business Records $15.00
Civil Subpoena – Employee Witness Fee $275.00 – All employees (per day)

COMMUNITY

DEVELOPMENT

Building Safety
Copies:

Building permits $2.00 first page
Additional pages $1.00 each additional page
Blueprint copies $2.00 setup
Per page $5.00 each page
Archive fee
Permit documents $4.00 (base fee)
Plans $4.00 (base fee)
Up to 8 ½ "x 14" $.50/sheet
Over 8 ½ " x 14" $2.00/sheet
CD copy of Plans or Permits $16.00

Housing Permit Fee:
25 unit or fewer $6.00/unit
26 – 50 units $5.75/unit
51 – 99 units $5.50/unit
100 – 199 units $5.25/unit
200 or more units $5.00/unit
Unsafe, substandard administrative fee to
initiate proceeding
$615.00
Solicit bids to clear $1,690.00

Building Permit Fees:

Issuance fee for all permits $45.00
Intake fee for paper plan submittal $45.00
Self-certification fee for minor permits (SolarAPP+,
water heaters, reroofs, and air conditioning units)
$130.00

Valuation (based on the amended and adjusted 2023
Valuation Schedule as approved by the San Diego
Chapter of ICC):

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 5 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
$25,001.00 to $50,000.00 $455.11 for first $25,000.00 + $11.74 each add’l $1,000.00 or fraction thereof to &
including $50,000.00
$50,001.00 to $100,000.00 $748.59 for first $50,000.00 + $8.13 each add’l $1,000.00 or fraction thereof to &
including $100,000.00
$100,001.00 to $500,000.00 $1,154.94 for first $100,000.00 + $6.32 each add’l $1,000.00 or fraction thereof to
& including $500,000.00
$500,001.00 to $1,000,000.00 $3,683.34 for first $500,000.00 + $5.42 each add’l $1,000.00 or fraction thereof to
& including $1,000,000.00
$1,000,000.00 and up $6,392.34 for first $1,000,000.00 + $3.61 each add’l $1,000.00 or fraction thereof

Plan Check Fee:
65% of Building Permit Fee
Technology Maintenance Fee $25.00 surcharge on each permit processed

Allocated Fees:

Building Permit General Plan $135.00/building permit
Maintenance Fee Surcharge
Building Permit Code Enforcement Surcharge
Valuation Base Fee Amount Add’l Charge Per Unit
Up to $500 $11.65 None
$501 to $2,000 $11.65 $1.55 per unit of 1,000
$2,001 to $25,000 $34.95 $6.99 per unit of 1,000
$25,001 to $50,000 $195.70 $5.05 per unit of 1,000
$50,001 to $100,000 $321.89 $3.50 per unit of 1,000
$100,001 to $468,000 $496.62 $2.72 per unit of 1,000
Over $468,000 $1,500.00

Planning Division Plan Check
Residential Addition / Remodel / Accessory
Structure / Patio
$60.00
Miscellaneous – Pool / Spa / PV / Retaining Walls /
Freestanding Fence and Wall / EV Charging Station /
Trash Enclosure / State Exempt ADU and JADU
$60.00
New single-family; ADU; duplex; or minor multi-
family addition (less than 500 square feet)
$110.00
Commercial TI or Minor Commercial Addition (less
than 500 sq. ft.)
$110.00
Major Commercial Addition or New Commercial
Building
$220.00
Major Multi-family addition or New Multi-Family
Building or Subdivision
$330.00
Planning Re-Inspection (after two failed final
inspections)
$110.00 each inspection
Phased Final Inspection $110.00 each inspection

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 6 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis

Electrical Fees:

Issuance Fee $45.00
Electrical devices (switches, lights, outlets, etc.) $0.10 per square foot Swimming Pool Electrical $70.00
Temporary Power $33.00
Miscellaneous Circuit $26.00
Lighting Fixtures up to 20 $2.00
Lighting Fixtures over 20 $1.00
Switches, Outlets, Light Outlets up to 20 $2.00
Fixed Appliances $7.00
Sign Electrical – 1st circuit $34.00
Additional Sign Circuit $7.00
Meter Upgrade / Services to 200 Amp $43.00
Meter Upgrade / Services 200 to 1000 Amp $88.00
Meter Upgrade / Services over 1000 Amp $176.00
Generators, Transformers, etc. As per services of same amperage rating PV Systems 1.5 hours P.C. & 1.5 hours inspection
time per 10,000 kilowatt or portion thereof

PV System (up to 50 modules) $250.00
PV System (51 to 100 modules) $360.00
PV System (each block of 100, or portion thereof, over 100) $135.00 Energy Storage System (battery) with PV $115.00
Energy Storage System (battery) without PV $230.00
Commercial Charging Stations (up to 5) $230.00
Commercial Charging Stations (6 and over) $430.00

Plumbing Fees:

Issuance Fee $45.00
Fixture, Rainwater System $17.00
Building Sewer $36.00
Water Heater $17.00
Gas Piping to Five Outlets $12.00
Gas Piping Each Additional Outlet $2.00
Grease / Oil Interceptor $36.00
Water Pipe / Fill Line $17.00
Drains / Vents / Sewer Cap $17.00
Lawn Sprinkler System $17.00
Vacuum Breaker $12.00
Backflow Prevention Device $17.00

Mechanical Fees:

Issuance Fee $45.00
FAU to 100,000 BTU $21.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 7 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
FAU over 100,000 BTU $26.00
Wall Heater / Prefab / Ventless Fireplace $21.00
Residential Air Conditioner / Mini-Split / Heat Pump $39.00 Commercial RTU's / Heat Pump / Package Units BTU's $52.00 Mechanical Gas System / Medical $13.00
New / Alter Duct $16.00
Commercial Hood Type I or II $52.00
Boiler / Chiller $52.00
Make-up Air System $52.00
Radiant Heater $26.00
Cooling Tower $26.00
Residential Kitchen / Bath Exhaust Fans $16.00
Coil / Miscellaneous Mechanical $16.00
Variable Air Volume $22.00
Evaporative Cooler $16.00
Air Handling Unit $21.00
Ventilation Fan (Single Duct) / Clothes Dryer $10.00

Fire / Building Permit Fee Schedule – see fees listed under Fire

Building Safety Additional Fees:

Expedited Plan Check Fee – when available, expedited plan check fee will be charged at the rate of the normal plan fee plus 50% to cover cost of overtime.

Condominium Conversion Fee $181.00/1st unit
$90.00/additional units
Building Demolition Permit Fee Based on Valuation
Building Permit Extension / Change of Contractor $179.00 Inspections outside of normal business hours:

If extension of workday Minimum 1 hour at 1.5 times fully burdened hourly rate
If not extension of workday, or on weekend Minimum 4 hours at 1.5 times fully burdened hourly rate
Re-inspection fees (normal business hours) Minimum 4 hours at 1.5 times fully burdened hourly rate
Request for Alternate Methods and Material 1 hour minimum plan check hourly fee Temporary Certificate of Occupancy $179.00
Pool Demolition $142.00
Plan Retrieval $179.00
Heartland Fire and Rescue Permit/Plan Review
Processing Services
$45.00
State Energy Regulations Plan Check fee 10% of plan check fee State Accessibility Plan Check fee 10% of plan check fee State Cal Green Plan Check fee 10% of plan check fee
Self-Certification Inspection Review $40.00
Additional plan review at 4th submittal or revisions Minimum 1 hour at fully burdened rate General Business Fire Inspection $30.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 8 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis

Mobile Home Permits:
2-19 lots State Fee: $40.00
20-49 lots State Fee: $75.00
50-99 lots State Fee: $175.00
100-249 lots State Fee: $400.00
250-499 lots State Fee: $800.00
500 or more lots State Fee: $1,600.00

COMMUNITY

DEVELOPMENT

Housing Annual Participating Lender Fee $100.00
Deed-Restricted Affordable Housing Program
Initiation Fee
Actual Cost, with $5,000 deposit required
for non-public hearing; $10,000.00 deposit
required for public hearing
Deed-Restricted Affordable Housing Annual
Monitoring Fee
$100.00 per unit
Participating Lender Fee $250.00
Reconveyance Fee $45.00
Subordination Fee $200.00
Subordination Fee Re-Check $50.00
TEFRA Public Hearing Fee $744.00

COMMUNITY

DEVELOPMENT

Planning
Archive Fee:

Entitlement Permit Plans $4.00 Setup fee
Up to 8½" x 14" $.50/sheet
Over 8½" x 14" $2.00/sheet
Copies:

General Plan
Text $10.00
Map $15.00
Zoning Map $15.00
Zoning Ordinance (copy on CD) $10.00
Zoning Ordinance (hard copy) $25.00
Standard photocopies $.25 per page
Administrative Zoning Permit $395.00 (Disabled person license / placard holders applying for shade structures are
exempt)
Adult Entertainment $4,000.00
Agreement Not to Convey Condominium Conversions $1,680.00 Amending Zoning Code 2,770.00
Annexation $2,120.00 per acre

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 9 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Annual Alcohol Sales Regulatory Fee
(Resolution 98-13)
$0.00
Appeal to Planning Commission (non-public hearing) $390.00 Appeal to City Council (public hearing) $1,150.00
Certificate of Compliance $1,345.00
Certificate of Modification $1,365.00
Conditional Use Permit (CUP) $5,525.00
Conditional Use Permit (Minor) $2,500.00
Development Agreement $Cost ($10,000.00 deposit required) Director's Determination $160.00
Environmental Impact Report (EIR) $Cost ($10,000.00 deposit required) Extension of Time $550.00
Fish and Game Impact Fee $95.00 + pass-thru costs
General Plan Amendment (GPA) $3,680.00
Historic Resource Designation $1,300.00
Landscape Documentation Package Review $450.00
Lot Line Adjustment $1,550.00
Minor Amendment $1,325.00
Minor Use Permit $1,450.00
Mitigated Negative Declaration / Initial Study $6,000.00 + $263.00 for each required report (up to two reviews)
Negative Declaration / Initial Study $6,000.00 + $263.00 for each required report (up to two reviews)
Notice of Determination $145.00 + pass-thru costs
Partial Release of Lien (duplicate) $34.00 + County Recorder fees Planned Residential Development (PRD) $7,100.00
Planned Unit Development (PUD) $7,100.00
Public Hearing Continuance (by applicant) $85.00
Public Hearing item that is referred to the Planning
Commission/City Council
Varies (actual costs of legal advertising
and notifying property owners)
Re-inspection Fee Fully burdened hourly rate
Sign Application
Director $543.00
Planning Commission $1,450.00
Staff $115.00
Site Development Plan (SDP) $4,095.00
Specific Plan (SP) $7,090.00
Substantial Conformance Review $405.00
Temporary Use Permit (TUP) $195.00
Temporary Use Permit (TUP) Expedited $254.00
Tentative Parcel Map (TPM) $3,900.00 + $26.00/lot
Tentative Subdivision Map (TSM) $7,130.00 + $74.00/lot
Temporary Subdivision Sign Application $53.00 application fee + $105.00 refundable deposit / sign
Tobacco License Fee $709.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 10 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Vacant Property Registration and Monitoring $1,500.00
Vacant Property Re-registration and Monitoring $970.00
Variance $1,240.00
Zoning Letter $150.00
Zoning Reclassification (ZR) (including prezoning) $4,335.00

FINANCE
Payoff Demand processing fee $30.00 per statement
Returned check fee $25.00
Lien Release processing fee $13.00 + County Recorder lien release fee Special Operations License Application and
Investigation fees

Alcohol- and tobacco-free public dances $335.00
Ambulances $335.00
Cabarets $335.00
Card rooms $335.00
Closing-out sales $335.00
Escort services $335.00
Fortune-telling and related occupations $335.00
Junkyards $505.00
Massage parlors $335.00
Pawnbrokers $505.00
Penny arcades and other games of skill or
amusement
$335.00
Poolrooms $335.00
Private patrol services $335.00
Public dances $335.00
Secondhand stores and kiosks $505.00
Sound trucks $335.00
Swap meet operations $505.00
Towing service for city police towing purposes $335.00
Vehicles for hire $335.00

FIRE
Fire Permit and Inspection Fee Schedule
Description Current Fee/Unit Basis Contracted Services
A.G. Tank Installation $202.00 Actual cost +10%
A.G. Tank Removal $202.00 Actual cost +10%
Emergency Responder Radio
Communications Systems (ERRCS)
$393.00 Actual cost +10%
Fire Alarm System <25 devices $393.00 Actual cost +10%
Fire Alarm System – 25-75 devices $433.00 Actual cost +10% Fire Alarm System >75 devices $512.00 Actual cost +10%

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 11 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Fire Alarm System – for every
additional 25 devices above 75
devices
$125.00 Actual cost +10%
Fire Sprinkler <25 heads New $393.00 Actual cost +10%
Fire Sprinkler – 25-75 heads New $433.00 Actual cost +10% Fire Sprinkler >75 heads New $512.00 Actual cost +10%
Fire Sprinkler – for every additional
25 heads above 75 heads New
$125.00 Actual cost +10%
Fire Sprinkler <25 heads TI $274.00 Actual cost +10%
Fire Sprinkler – 25-75 heads TI $352.00 Actual cost +10% Fire Sprinkler >75 heads TI $430.00 Actual cost +10%
Fire Sprinkler – for every additional
25 heads above 75 heads TI
$125.00 Actual cost +10%
Fire Pump $239.00 Actual cost +10%
Fire Suppression System (hood) $202.00 Actual cost +10% Fire Suppression System (other) $202.00 Actual cost +10% Miscellaneous Review / Inspection $152.00 Actual cost +10% Standpipe $239.00 Actual cost +10%
U.G. Tank Removal $190.00 Actual cost +10%
U.G. Tank Installation $190.00 Actual cost +10%
U.G. Water Supply / Private Hydrant $202.00 Actual cost +10%

Fire Review and Final Fire Clearance of Building and Public Works Permit Applications Description Plan Review Fire Inspection Total
Residential (per address) $114.00 $114.00 $228.00
Multi-Family – 3-50 Units $114.00 $114.00 $228.00
Multi-Family – 51-100 Units $165.00 $165.00 $330.00
Multi-Family – 101-150 Units $227.00 $227.00 $454.00
Multi-Family – 151-200 Units $310.00 $310.00 $620.00
Multi-Family each additional 50 Units
above 200 Units
$114.00 $114.00 $228.00
TI $76.00 $76.00 $152.00
Commercial $114.00 $114.00 $228.00
Commercial Solar $114.00 $114.00 $228.00
Technical Report $76.00 $76.00 $152.00
Miscellaneous Review $76.00 $76.00 $152.00
Grading $114.00 $114.00 $228.00

Permit to Operate under California Fire Code
Description Fee
Additive Manufacturing $146.00
Aerosol Products $146.00
Amusement Buildings $146.00
Aviation Facilities $146.00
Carnival & Fairs $146.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 12 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Cellulose Nitrate Film $146.00
Combustible Dust-Producing Operations $146.00
Combustible Fibers $146.00
Compressed Gases $146.00
Covered & Open Mall Buildings $600.00
Cryogenic Fluids $146.00
Cutting & Welding $146.00
Dry Cleaners $146.00
Energy Storage Systems $291.00
Exhibit & Trade Shows $146.00
Explosives $159.00
Fire Hydrants & Valves $146.00
Fireworks $159.00
Flammable & Combustible Liquids $146.00
Floor finishing >350 sq. ft. using Class I or II liquids $146.00 Fruit & Crop Ripening $146.00
Fumigation & Insecticidal Fogging $146.00
Hazardous Materials $291.00
Hazardous Production Materials (HPM) Facilities $146.00 High Piled Storage $146.00
Hot Work Operations $146.00
Industrial Ovens $146.00
Liquefied Petroleum Gas $146.00
Liquid or Gas Vehicles or Equipment in Assembly
Building
$146.00
Lithium Batteries $291.00
Lumber Yards & Wood Working Plants $146.00
Magnesium $146.00
Miscellaneous Combustible Storage $146.00
Mobile Fueling of Hydrogen-Fueled Vehicles $146.00
Motor Fuel-Dispensing Facilities $146.00
Open Burning $146.00
Open Flames & Candles $73.00
Open Flames & Torches $146.00
Organic Coatings $146.00
Outdoor Assembly Event $146.00
Place of Assembly $146.00
Plant Extraction Systems $291.00
Private Fire Hydrants $146.00
Production Facilities $146.00
Pyrotechnic Special Effects Material $159.00
Pyroxylin Plastics $146.00
Refrigeration Equipment $146.00
Repair Garages & Motor Fuel-Dispensing Facilities $146.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 13 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Rooftop Heliports $146.00
Spraying or Dipping $146.00
Storage of Scrap Tires & Tire Byproducts $291.00
Temp. Membrane Structures, Tents & Canopies $128.00
Tire-Rebuilding Plants $291.00
Waste Handling $146.00
Wood Products $146.00
Additional Permits – Production Facilities $159.00
Additional Permits – Pyrotechnic & Special Events $159.00 Additional Permits – Live Audiences $159.00

State Mandated and Required Fire Inspections
Description Fee
Apartment, Hotel, Motel Inspections (1-14) $72.00
Apartment, Hotel, Motel Inspections (15-50) $114.00
Apartment, Hotel, Motel Inspections (51-100) $165.00
Apartment, Hotel, Motel Inspections (101-150) $227.00
Apartment, Hotel, Motel Inspections (151-200) $310.00
Apartment, Hotel, Motel Inspections (201-250) $350.00
Apartment, Hotel, Motel Inspections (251-300) $392.00
Apartment, Hotel, Motel Inspections (301-350) $433.00
Apartment, Hotel, Motel Inspections (351-400) $475.00
Apartment, Hotel, Motel Inspections (>400) $516.00
Business (General) Fire Inspection Services $155.00
Care Facility $219.00
Misc. Hourly Inspection Services $114.00
Mid-Rise $291.00
High-Rise (Over 75 feet) $291.00
Institutional Occupancies $146.00
Medical / Hospital Inspection $1,800.00

Expedited Plan Check Fee:

Expedited Plan Check Fee – when available, expedited plan check fee will be charged at the rate of the normal plan fee plus 50% to cover cost of overtime.

Weed Abatement:

The fee for abatement shall be the actual cost of the abatement, which may include, but is not limited to, city staff abatement (supplies/resources) and/or contractor costs.

Fire Re-Inspection Fee:

The fee for re-inspection shall be zero cost upon 2nd inspection. Upon the 3rd and each subsequent inspection, the fee shall be $155.00.

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 14 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Emergency Responses:

False Alarm - Upon 3rd and each subsequent false
Fire response at the same address within a 12-month
period, as defined in Title 8 Health and Safety Code
$225.00 upon 3rd (plus processing fee, if
applicable)
$75.00 each subsequent (4th, 5th, etc.) (plus
processing fee, if applicable)

Emergency Medical Services (EMS):

Non-Transport:

Basic Life Support (BLS) or Advanced Life
Support (ALS) Assessment
$798.15

Transport:

Basic Life Support (BLS) Transport $1,669.95
Advanced Life Support (ALS) Transport $2,902.28
Advanced Life Support (ALS) Transport
(Level 2)
$3,227.58
Transport Mileage $58.43 per mile
Other Ancillary Charges Varies

Processing and Payment Fees:

Payment processing fee (online payment fee for Fire
Inspection and Permit Fee collection system – Fire
Recovery USA or similar
Processing fee set by contract, if applicable

PARKS & RECREATION

Recreation Center / Park / Field Fee Schedule

I. Center / Park Basic Use Fees

All "per hour" fees are charged per hour or fraction thereof.

The following fee schedule shall in all instances apply to all classifications except Class 1. a. Center Meeting Room $16.00 per hour, minimum 3 hours.

Private Parties: $28.00 per hour, minimum
3 hours.
b. Center Kitchen $20.00 per use; must be in conjunction with room rental.
c. Center Gymnasium $50.00 per hour, minimum 2 hours. Use must be compatible with normal
gymnasium use.
d. Fletcher Hills Center Backyard $30.00 per hour, minimum 3 hours.

e. Fletcher Hills Swimming Pool $80.00 per hour, minimum 2 hours, plus Extra City Staff Services fee.

Minimum of two City certified lifeguards on
duty at all times.

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 15 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
f. Kennedy Skatepark $30.00 per hour, minimum 2 hours, plus Extra City Staff Services fee. Minimum of two
staff required. Light use an additional $16.00
per hour.
g. Wells Center Back Lawn $30.00 per hour, minimum 3 hours. h. Wells Park Mini-Pitch Soccer Court $80.00 per hour, minimum 2 hours, plus Extra City Staff Services fee. Minimum of
two staff required. Light use is an
additional $16.00 per hour.

II. Special Use Fees

In addition to the basic rental fees as set forth in the fee schedule, additional fees will be charged for the following activities or services regardless of usage classifications. a. Dog shows (AKC sanction or practice, but not to
include business meetings where dogs are not
present)
$120.00 per event.
b. Extra City Staff Services
(Applies to all Classifications except Class 1)
$30.00 per hour per staff member required,
minimum 2 hours.
c. Commercial Uses (Class 5) $40.00 per hour, minimum 3 hours. d. Cancellation / Damage / Cleaning Deposits
Recreation Centers / Parks
$50.00 minimum - $150.00 maximum.
e. Concession Stand $125.00 per month.
f. Complete Party Package (including, but not
limited to, food and decorations)
Actual Cost + 20%
g. Rec Squad $300.00 for 3 hours
h. Inflatable to accompany Rec Squad $200.00 for 3 hours i. Trackless Train at Wells Park only $1,500.00 for 2 hours

III. Field Basic Use Fees

Applies to Classes 2, 3, 4 and 5 for fields controlled by the Parks & Recreation Department. a. Field reservation
(baseball, softball, football, soccer)
$30.00 per hour, minimum 2 hours.

Supported Youth League * No fee.
b. Light Use Fee $16.00 per hour, minimum 2 hours.
c. Field preparation (dragging, wetting down and
marking)
$100.00 per prep.
d. Ball field bases fee $30.00 flat fee.

* Supported Youth League, a league having met the criteria established by City Council as qualifying for the Youth League Utility Support Program. Refer to City Council Policy E-8, Youth Sports League Utility Support Program.

IV. Open Play Gym Fees
a. Open Play Annual Card
(basketball, volleyball, pickleball)
$25.00 for annual card.
$12.00 Senior / Teen discount fee.
b. Replacement for any Open Play Annual Card $5.00 for remainder of annual card.

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 16 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Leasable Park Spaces Fee Schedule
(Judson Park / Renette Plaza / Kennedy Park North Lawn / Hillside Upper Park / Wells Park Unlit Field)

All "per hour" fees are charged per hour or fraction thereof.

I. Basic Use Fees
a. Small Event (50 or fewer people) $100.00 per event.

Private Parties: $150.00 per event.
b. Large Event (51 – 250 people) $250.00 per event.

Private Parties: $300.00 per event.
c. Festivals or Community Events
(over 250 people)
$500.00 per day.

II. Special Use Fees

All Special Use Fees are in addition to Basic Use Fees. a. Cancellation / Damage / Cleaning Deposit $100.00 minimum - $500.00 maximum. b. Musical Presentations

1. Single event $200.00 flat fee.

2. Series $300.00 per day.
c. Commercial Use $40.00 per hour minimum 3 hours.

d. Extra City Staff Services $30.00 per hour per staff member, minimum 2 hours.
e. Security Personnel (per security person) See Current Schedule

Prescott Promenade Fee Schedule

All "per hour" fees are charged per hour or fraction thereof.

I. Basic Use Fees
a. Small event (50 or fewer people) $125.00 per event.

Private Parties: $175.00 per event.
b. Large event (51 to 250 people) $275.00 per event.

Private Parties: $325.00 per event.
c. Festivals or Community Events

1. Small (251-500 people per day) $550.00 per day.

2. Large (more than 500 people per day) $1,100.00 per day.

II. Special Use Fees

All Special Use Fees are in addition to Basic Use Fees. a. Alcohol Use(ABC license, security, and certificate of insurance required)
$30.00 per hour, minimum 3 hours.
b. Commercial use $40.00 per hour, minimum 3 hours.

c. Extra City Staff Services $30.00 per hour per staff member, minimum 3 hours.
d. Alley Closure $200.00 per day.
e. Cancellation/Damage/Cleaning Deposit $100.00 minimum - $500 maximum. f. Power Use $75.00 per day.
g. Security Personnel (per security person) See Current Schedule.

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 17 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
h. Steam Cleaning Deposit *

1. Small Event/Festival $250.00 per day.

2. Large Event/Festival $850.00 per day.

* Steam Cleaning Deposit – User will be charged or credited per actual invoice.

Ronald Reagan Community Center Fee Schedule

All "per hour" fees are charged per hour or fraction thereof.

I. Basic Use Fees
a. Full auditorium; includes two (2) patios (4 hours
minimum use)
$125.00 per hour.

Private Parties: $150.00 per hour.
b. East auditorium; includes one (1) patio (2 hours
minimum use)
$100.00 per hour.

Private Parties: $125.00 per hour.
c. West auditorium; includes one (1) patio (2 hours
minimum use)
$75.00 per hour.

Private Parties: $100.00 per hour.
d. Kitchen $100.00 use; must be in conjunction with
hall rental.
e. Bridal Suite $50.00 per use; must be in conjunction with hall rental.

II. Set-up Fees
All set-up and take-down must be done by Ronald Reagan Community Center staff. Equipment includes P.A. system, podiums, tables and chairs.
a. Full auditorium $100.00
b. East room $70.00
c. West room $60.00

III. Special Use Fees
a. Extra City Staff Services $30.00 per hour per staff person, minimum 2 hours.
b. Alcohol use (ABC license may be required) $30.00 per hour, minimum 3 hours. c. Non-Operations Use (holidays, weekends,
weekdays before/after hours, etc.)
$60.00 per hour.
d. Commercial use $40.00 per hour, minimum 3 hours.
e. Non-resident fee (Class 4 and 5 users) $30.00 per hour. f. Security personnel (per security person) See current schedule. g. Coffee service See current schedule.

IV. Special Equipment Use
a. Bar $30.00 each per day.
b. Piano $60.00 per day.
c. Stage/Backdrops (6 ft. x 8 ft. – includes drapes) $100.00 per day. d. Dance floor $100.00 per day.
e. Audio Visual / Presentation Equipment $150.00 per day. f. Portable Patio Heaters $50.00 each per day.

V. Cleaning/Security/Reservation Deposit
a. Non-alcohol use $250.00
b. Alcohol use $500.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 18 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Recreation Special Revenue Fund

The Director of Parks & Recreation is authorized to establish and implement Recreation Activity fees by category at cost recovery rates. The cost recovery rate may be amended as a necessity by City Council action. 2022 recovery rates are as follows:

I. Recreation Special Revenue Fund Recovery Rate – Fee Classes 75% - Youth Instructional Programs 50% - Youth Sports Leagues
80% - Aquatics
100% - Adult Sports Leagues
90% - Adult Instructional Programs
50% - Senior Instructional Programs

Community Services

Signs to be purchased by the public

I. No Trespass / Lodging signs a. Vinyl Window Cling $5.00 b. Corrugated Cardboard with
window suction cups
$10.00
c. 12 x 18 Metal Sign $15.00
d. 18 x 24 Metal Sign $25.00

POLICE
Audio Reproduction Fee $45.00
Body Worn Camera (BWC) Footage Reproduction $90.00
Civil Subpoena – Business Records $15.00
Civil Subpoena – Employee Witness Fee $275.00 – PD Employee (per day) $275.00 – Peace Officer (per day)
Copy of Call for Service (CFS) Report $1.00
Copy of Police Report $10.00
False Alarm Business License Tax
(Upon 3rd and each subsequent false Police or Fire
alarm at the same address within a twelve-month
period)
$225.00 upon 3rd (plus processing fee, if
applicable)
$75.00 each subsequent (4th, 5th, etc.) (plus
processing fee, if applicable)
Fingerprint (Live Scan Fee) $35.00
Massage License Fee $300.00
Parking Citation – online payment $3.50 processing fee
Pawnbroker and Secondhand Dealer License
Renewal Fee
$640.00
Private Property Towing Administration Fee $40.00
Vehicle Impound Fee:

Release of Impounded Vehicles
$150.00
Vehicle Repossession Fee $15.00
VISA/Clearance Letter Fee:

Formal Letter $15.00
Formal Letter with Notarization $25.00

Photograph Reproduction:

Administrative Fee
Research photo files, obtain clearances, package and
mail (photos provided on CD)
$25.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 19 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis

PUBLIC WORKS
1911 Act Petition (up to 5 parcels) $1,600.00
1911 Act Petition (each additional parcel) $95.00
BMP Facility Maintenance Agreement $620.00
Building Permit Review – Estimated Value
< $80,000.00:

Single Family Residential $870.00
Multi-Family, Commercial or Industrial $1,280.00
Subdivision Master Building Permit $1,280.00
Minor Building Review; Addition of 400 square
feet; or Added Plumbing Fixtures
$320.00
Building Permit Review – Storm Water Fees
Single Family Residential $240.00
Multi-Family or Commercial $660.00
Subdivision Master Building Permit $660.00
Inspection Fees $90.00
Certificate of Correction for Subdivision Maps $750.00
Condo Conversions CC&Rs and/or SW Mtce/Ops
Plan Review
$350.00
Condo Conversions Storm Water Site Plan and/or
BMP Facilities Agreements Review
$350.00
Copies
Maps and Plans $5.00/sheet
Documents $.25 per page
Deed / Easement Prep / Quitclaim / LLA Deed Review $1,200.00 Drainage Study Review $1,890.00
Dumpster Permit $128.00
Encroachment Permit
Level One $135.00
Level Two $450.00
Level Three $700.00
Encroachment (Plan Review Inspection – per hour) $100.00 Erosion/Sediment Control Plans >200 sq. ft.
(Remodels, Pools, Additions, Walls)
$110.00
Erosion/Sediment Control Plan Review
when Grading/Drainage Plan is not required
$600.00
Erosion/Sediment Control Plan Review
when Grading/Drainage Plan is required
$875.00
Erosion/Sediment Control (per Inspection) $90.00
Erosion/Sediment Control Site Inspection for
NPDES Compliance (includes 1-10 inspections)
$500.00 + 0.5%
Extension of Time for Tentative Subdivision and
Parcel Maps
No Hearing
$425.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 20 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Extension of Time for Tentative Subdivision and
Parcel Maps
Hearing (includes Notice of Public Hearing cost)
$1,050.00
Final Parcel Map Check (up to four (4) lots) $5,530.00
Final Subdivision Map Check (1st five (5) lots) $7,325.00 Final Subdivision Map Check (each additional lot) $200.00 GIS Fees Actual cost of employees' time
Grading/Drainage Plan Review (including precise
grading plans for new structures)

5% of 1st $50,000 of estimated site
improvement costs + 3% of costs between
$50,000 and $100,000, 2% of costs
between $100,000 and $250,000, 1% of
costs above $250,000 (minimum of $1,000)
Grading/Drainage Construction Inspection:
with Erosion Control Site Inspection

3.5% of the estimated cost of construction
with a minimum of $500 + (Erosion Control
Site Inspection $500 + 0.5% of estimated
cost of construction)
Hold Harmless Agreement (HHA) preparation $900.00
Hydrology Study Limited $350.00
Improvement Construction Inspection 3.5% of the estimated cost of construction (minimum $500.00)
(Soil Testing not included)
Improvement Plan Check (including improvement
plans for private sewer mains

6.5% of 1st $50,000 of estimated site
improvement costs, 4% of costs between
$50,000 and $100,000, 1.5% of costs
between $100,000 and $250,000, and 1%
of costs >$250,000, with a $1,000
minimum; 1% of estimate for each review
after three (3)
Inspection of restaurant
Annual inspection required
$130.00
Inspection of Small or Medium High <100,000 sq. ft.

Priority Commercial/Industrial Facilities
Annual Inspection Required
$280.00
Inspection of Small or Medium High <100,000 sq. ft.

Priority Commercial/Industrial Facilities
Annual Inspection Required
$500.00
Lien Contract Preparation $900.00
Lien Contract Release $30.00
Outdoor Dining or Sidewalk Vending Permit – Annual
Fee
$340.00
Oversize/Overload Permit (max as permitted by State)
Single fee Set by State – currently $16.00
Annual fee Set by State – currently $90.00
PRD – Engineering Fees $900.00
PRD – Storm Water Fees $900.00
Public Service Sign (Installation) $620.00
Public Service Sign (Replacement) $360.00
Reversion to Acreage $3,900.00
Restaurant FOG Building Permit Fee $225.00
Septic Tank Hauler's Discharge Fee $9.86/100 gallons
Septic Tank Hauler's After Hours Discharge Fee (Pre-
arranged)
$100.00
Emergency Septic Tank Hauler's Discharge Fee $200.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 21 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Sewer Lateral Video Review $200.00
Sewer Wet Tap Fee $900.00
Special Event – Prepare Traffic Plan (Major) $1,400.00
Special Event – Prepare Traffic Plan (Minor) $495.00
Special Event – Traffic Control (per hour per crew) $480.00 Special Event – Traffic Plan Review $394.00
Street Light Inspection per Light
(Amount includes est. $90.00 energizing fee from
SDG&E)
$500.00
Street or Public Service Easement Vacation
(with Public Hearing) $1,900.00
(without Public Hearing) $700.00
Standard Urban Storm Water Mitigation Plan
(SUSMP) Project Plan Review
(required if High Priority Project)
(three (3) Plan Checks (min)
$6,000.00
Conceptual SUSMP Project Plan Review $2,025.00
Priority Development Project (PDP) SUSMP Storm
Water Mitigation Plan (SWMitP) Review
$3,000.00
Additional Plan Check $160.00 each
SUSMP BMP Inspection
1-3 Features $270.00
>3 Features $360.00
SWPPP Review (>1 acre) $1,100.00
Subdivision Agreement Preparation $1,750.00
Traffic Control Plan Review $300.00
Traffic Impact Study Review $1,000.00
Trash Enclosure Building Permit Review $140.00
Utility Permit Fee
Utility Permit - Level One $500.00
Utility Permit - Level Two $850.00
Utility Permit - Level Three $1,200.00 + additional inspection hours

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 1 of 21 Resolution No. __-24 adopted 04/23/24

Redlined Changes to

CITY OF EL CAJON

SCHEDULE OF MISCELLANEOUS FEES

City Council Agenda 04/23/24

(if approved, changes will be effective 07/01/24)

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 2 of 21 Resolution No. __-24 adopted 04/23/24

SCHEDULE OF MISCELLANEOUS FEES
Effective 07/01/2324
(Amended by Resolution No. 0250__-2324)

Department Fee Description Current Fee/Unit Basis

APPEALS / PUBLIC HEARINGS
City Council Public Hearing (including Appeals) $1,150.00 Non-public Hearing $390.00

Planning Commission Public Hearing $1,150.00
Non-public Hearing $390.00

Public Hearing Continuance by Applicant $85.00
Public Hearing item that is referred to Planning
Commission/City Council for new Public Hearing
Varies (actual costs of legal advertising
and notifying property owners)
Deed-Restricted Affordable Housing Program
Initiation Fee
Actual Cost, with $5,000 deposit required
for non-public hearing, and $10,000.00
deposit required for public hearing
Public Hearing for Tentative Subdivision and Parcel
Maps Extension of Time (includes Notice of Public
Hearing cost)
$1,050.00
Public Hearing for Street or Public Service Easement
Vacation
$1,900.00
TEFRA Public Hearing Fee $744.00

CITY CLERK
Attestation fee $10.00
Certification of documents $10.00
Conformed copy of Recorded Document County Recorder fee Copies (Standard size paper) $.04 25 per page (plus actual cost of employee's time to copy records)
Copies of FPPC filings $.04 25 per page (plus actual cost of employee's time to copy records)
+ retrieval fee for copies more than five (5) years
old
$5.00 per request
DVD / CD / USB flash drive (copies of hearings, etc.) $15.0020.00 Fingerprint/Live Scan $35.00
Municipal Code (CD ROM Version of Quarterly
Supplements)
$100.00
Municipal Code (hard copy) $360.00Actual cost charged by General Code
Municipal Code supplements $50.00$.25 per page; no charge for electronic copies
City Council Non-public Hearing $390.00
City Council Public Hearing (including appeals) $1,100.001,150.00 Public Hearing Continuance by Applicant $85.00
Recording fee $13.0015.00 + County Recorder fees

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 3 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Request for Appeal to City Council (non-public
hearing)
$50.00
Public hearing item that is referred to Planning
Commission/City Council for new public hearing
Varies (actual costs of legal advertising
and notifying property owners)

Records Requests:

Public Records Requests to include NFIRS, Patient
Care Report (if available), and Fire Investigation
Narrative
$.04 25 per page (plus actual cost of
employee's time to copy records) for paper
copies only; no charge for electronic copies
Individual photographs (if available) Actual cost
Photographs on CD (if available) $10.00 per incident

Subpoenas:

Civil Subpoena – Business Records $15.00
Civil Subpoena – Employee Witness Fee $275.00 – All employees (per day)

COMMUNITY

DEVELOPMENT

Building Safety
Copies:

Housing Permit Fee: $6.00/unit (<25)
25 unit or fewer $6.00/unit
26 – 50 units $5.75/unit (26-50)
51 – 99 units $5.50/unit (51-99)
100 – 199 units $5.25/unit (100-199)
200 or more units $5.00/unit (200 or more)
Unsafe, substandard administrative fee to
initiate proceeding
$615.00
Solicit bids to clear $1,690.00

Building Permit Fees:

Issuance fee for all permits $45.00
Intake fee for paper plan submittal $45.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 4 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Self-certification fee for minor permits (SolarAPP+,
water heaters, reroofs, and air conditioning units)
$130.00

Valuation (based on the amended and adjusted 2022
2023 Valuation Schedule as approved by the San
Diego Chapter of ICC):

$1.00 to $500.00 $27.09
$501.00 to $2,000.00 $27.09 for first $500.00 + $3.61 each add’l $100.00 or fraction thereof to & including
$2,000.00
$2,001.00 to $25,000.00 $81.27 for first $2,000.00 + $16.25 each add’l $1,000.00 or fraction thereof to &
including $25,000.00
$25,001.00 to $50,000.00 $455.11 for first $25,000.00 + $11.74 each add’l $1,000.00 or fraction thereof to &
including $50,000.00
$50,001.00 to $100,000.00 $748.59 for first $50,000.00 + $8.13 each add’l $1,000.00 or fraction thereof to &
including $100,000.00
$100,001.00 to $500,000.00 $1,154.94 for first $100,000.00 + $6.32 each add’l $1,000.00 or fraction thereof to
& including $500,000.00
$500,001.00 to $1,000,000.00 $3,683.34 for first $500,000.00 + $5.42 each add’l $1,000.00 or fraction thereof to
& including $1,000,000.00
$1,000,000.00 and up $6,392.34 for first $1,000,000.00 + $3.61 each add’l $1,000.00 or fraction thereof

Plan Check Fee:
65% of Building Permit Fee
Technology Maintenance Fee $25.00 surcharge on each permit processed

Allocated Fees:

Planning Division Plan Check
Residential Addition / Remodel / Accessory
Structure / Patio
$60.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 5 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Miscellaneous – Pool / Spa / PV / Retaining Walls /
Freestanding Fence and Wall / EV Charging
Station / Trash Enclosure / State Exempt ADU and
JADU
$60.00
New single-family; ADU; duplex; or minor multi-
family addition (less than 500 square feet)
$110.00
Commercial TI or Minor Commercial Addition (less
than 500 sq. ft.)
$110.00
Major Commercial Addition or New Commercial
Building
$220.00
Major Multi-family addition or New Multi-Family
Building or Subdivision
$330.00
Planning Re-Inspection (after two failed final
inspections)
$110.00 each inspection
Phased Final Inspection $110.00 each inspection

Electrical Fees:

PV System (up to 50 modules) $250.00
PV System (51 to 100 modules) $360.00
PV System (each block of 100, or portion thereof,
over 100)
$135.00
Energy Storage System (battery) with PV $115.00
Energy Storage System (battery) without PV $230.00
Commercial Charging Stations (up to 5) $230.00
Commercial Charging Stations (6 and over) $430.00

Plumbing Fees:

Issuance Fee $45.00
Fixture, Rainwater System $17.00
Building Sewer $36.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 6 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Water Heater $17.00
Gas Piping to Five Outlets $12.00
Gas Piping Each Additional Outlet $2.00
Grease / Oil Interceptor $36.00
Water Pipe / Fill Line $17.00
Drains / Vents / Sewer Cap $17.00
Lawn Sprinkler System $17.00
Vacuum Breaker $12.00
Backflow Prevention Device $17.00

Mechanical Fees:

Issuance Fee $45.00
FAU to 100,000 BTU $21.00
FAU over 100,000 BTU $26.00
Wall Heater / Prefab / Ventless Fireplace $21.00
Residential Air Conditioner / Mini-Split / Heat Pump $39.00 Commercial RTU's / Heat Pump / Package Units
btuBTU's
$52.00
Mechanical Gas System / Medical $13.00
New / Alter Duct $16.00
Commercial Hood Type I or II $52.00
Boiler / Chiller $52.00
Make-up Air System $52.00
Radiant Heater $26.00
Cooling Tower $26.00
Residential Kitchen / Bath Exhaust Fans $16.00
Coil / Miscellaneous Mechanical $16.00
Variable Air Volume $22.00
Evaporative Cooler $16.00
Air Handling Unit $21.00
Ventilation Fan (Single Duct) / Clothes Dryer $10.00

Fire / Building Permit Fee Schedule – see fees listed under Fire

Building Safety Additional Fees:

Expedited Plan Check Fee – when available, expedited plan check fee will be charged at the rate of the normal plan fee plus 50% to cover cost of overtime.

If extension of workday – minimum one hour at 1.5
times fully burdened hourly rate.

Minimum 1 hour at 1.5 times fully burdened
hourly rate

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 7 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
If not extension of workday, or on weekend –
minimum four hours at 1.5 times fully burdened
hourly rate.

Minimum 4 hours at 1.5 times fully
burdened hourly rate
Re-inspection fees (normal business hours) – fully
burdened hourly rate.

Minimum 4 hours at 1.5 times fully
burdened hourly rate
Request for Alternate Methods and Material 1 hour minimum plan check hourly fee Temporary Certificate of Occupancy $179.00
Pool Demolition $142.00
Plan Retrieval $179.00
Heartland Fire and Rescue Permit/Plan Review
Processing Services
$45.00
State Energy Regulations Plan Check fee 10% of plan check fee State Accessibility Plan Check fee 10% of plan check fee State Cal Green Plan Check fee 10% of plan check fee
Self-Certification Inspection Review $40.00
Additional plan review at 4th submittal or revisions Minimum 1 hour at fully burdened rate.

General Business Fire Inspection $30.00

COMMUNITY

DEVELOPMENT

Housing Annual Participating Lender Fee $100.00
Deed-Restricted Affordable Housing Program
Initiation Fee
$Actual Cost, with $5,000 deposit required
for non-public hearing; $10,000.00 deposit
required for public hearing
Deed-Restricted Affordable Housing Annual
Monitoring Fee
$100.00 per unit
Participating Lender Fee $250.00
Reconveyance Fee $45.00
Subordination Fee $200.00
Subordination Fee Re-Check $50.00
TEFRA Public Hearing Fee $744.00

COMMUNITY

DEVELOPMENT

Planning
Archive Fee:

Entitlement Permit Plans $4.00 Setup fee
- --

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 8 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Up to 8½" x 14" $.50/sheet
Over 8½" x 14" $2.00/sheet
Copies:

General Plan
Text $10.00
Map $15.00
Zoning Map $15.00
Zoning Ordinance (copy on CD) $10.00
Zoning Ordinance (hard copy) $25.00
Standard photocopies $.0425 per page (plus actual cost of employee's time to copy records
Administrative Zoning Permit $375.00395.00 (Disabled person license / placard holders applying for shade
structures are exempt)
Adult Entertainment $4,000.00
Agreement Not to Convey Condominium Conversions $1,680.00 Amending Zoning Code $2,700.002,770.00
Annexation $2,120.00 per acre
Annual Alcohol Sales Regulatory Fee
(Resolution 98-13)
$0.00
Appeal to Planning Commission (non-public hearing) $365.00390.00 Appeal to City Council (public hearing) $1,100.001,150.00 Certificate of Compliance $1,300.001,345.00
Certificate of Modification $1,300.001,365.00
Conditional Use Permit (CUP) $5,525.00
Conditional Use Permit (Minor) $2,390.002,500.00
Development Agreement $Cost ($10,000.00 deposit required) Director's Determination $155.00160.00
Environmental Impact Report (EIR) $Cost ($10,000.00 deposit required) Extension of Time $550.00
Fish and Game Impact Fee $95.00 + pass-thru costs
General Plan Amendment (GPA) $3,680.00
Historic Resource Designation $1,250.001,300.00
Landscape Documentation Package Review $430.00450.00
Lot Line Adjustment $1,550.00
Minor Amendment $1,325.00
Minor Use Permit $1,390.001,450.00
Mitigated Negative Declaration / Initial Study $5,900.006,000.00 + $263.00 for each required report (up to two reviews)
Negative Declaration / Initial Study $5,900.006,000.00 + $263.00 for each required report (up to two reviews)
Notice of Determination $145.00 + pass-thru costs
Partial Release of Lien (duplicate) $34.00 + County Recorder fees Planned Residential Development (PRD) $7,100.00
Planned Unit Development (PUD) $7,100.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 9 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Public Hearing Continuance (by applicant) $85.00
Public Hearing item that is referred to the Planning
Commission/City Council
Varies (actual costs of legal advertising
and notifying property owners)
Re-inspection Fee Fully burdened hourly rate
Sign Application
Director $543.00
Planning Commission $1,390.001,450.00
Staff $115.00
Site Development Plan (SDP) $4,095.00
Specific Plan (SP) $6,900.007,090.00
Substantial Conformance Review $385.00405.00
Temporary Use Permit (TUP) $195.00
Temporary Use Permit (TUP) Expedited $254.00
Tentative Parcel Map (TPM) $3,885.003,900.00 + $26.00/lot Tentative Subdivision Map (TSM) $7,005.007,130.00 + $74.00/lot Temporary Subdivision Sign Application $53.00 application fee + $105.00 refundable deposit / sign
Tobacco License Fee $709.00
Vacant Property Registration and Monitoring $1,500.00
Vacant Property Re-registration and Monitoring $970.00
Variance $1,180.001,240.00
Zoning Letter $150.00
Zoning Reclassification (ZR) (including prezoning) $4,335.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 10 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Public dances $335.00
Secondhand stores and kiosks $505.00
Sound trucks $335.00
Swap meet operations $505.00
Towing service for city police towing purposes $335.00
Vehicles for hire $335.00

FIRE
Fire Permit and Inspection Fee Schedule
Description Current Fee/Unit Basis Contracted Services
A.G. Tank Installation $202.00 Actual cost +20%10%
A.G. Tank Removal $202.00 Actual cost +20%10%
Business (General) Fire Inspection $155.00 Actual cost +20% Emergency Responder Radio
Communications Systems (ERRCS)
$393.00 Actual cost +10%
Fire Alarm System <25 devices $393.00 Actual cost +20%10% Fire Alarm System 25-75 devices $433.00 Actual cost +20%10% Fire Alarm System >75 devices $512.00 Actual cost +20%10% Fire Alarm System – for every
additional 25 devices above 75
devices
$125.00 Actual cost +10%
Fire Sprinkler <25 heads New $393.00 Actual cost +20%10% Fire Sprinkler 25-75 heads New $433.00 Actual cost +20%10% Fire Sprinkler >75 heads New $512.00 Actual cost +20%10% Fire Sprinkler – for every additional
25 heads above 75 heads New
$125.00 Actual cost +10%
Fire Sprinkler <25 heads TI $274.00 Actual cost +20%10% Fire Sprinkler 25-75 heads TI $352.00 Actual cost +20%10% Fire Sprinkler >75 heads TI $430.00 Actual cost +20%10% Fire Sprinkler – for every additional
25 heads above 75 heads TI
$125.00 Actual cost +10%
Fire Pump $239.00 Actual cost +10%
Fire Extinguisher Suppression
System (hood)
$202.00 Actual cost +20%10%
Fire Extinguisher Suppression
System (other)
$202.00 Actual cost +20%10%
Install Compressed Gas System $239.00 Actual cost +20%
Miscellaneous Clearance $152.00 Actual cost +20%
Miscellaneous Review / Inspection $152.00 Actual cost +20%10% Standpipe / Riser / Fire Pump $239.00 Actual cost +20%10% U.G. Tank RemovalTent and
Subsequent
$22.00190.00 Actual cost +20%10%
U.G. Tank Installation $190.00 Actual cost +20%10%
U.G. Water Supply / Private Hydrant $202.00 Actual cost +20%10%

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 11 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Fire Review and Final Fire Clearance of Building and Public Works Permit Applications Description Plan Review Fire Inspection Total
Residential (per address) $76.00114.00 $76.00114.00 $152.00228.00 Multi-Family – 3-50 Units $114.00 $114.00 $228.00
Multi-Family – 51-100 Units $165.00 $165.00 $330.00
Multi-Family – 101-150 Units $227.00 $227.00 $454.00
Multi-Family – 151-200 Units $310.00 $310.00 $620.00
Multi-Family each additional 50 Units
above 200 Units
$114.00 $114.00 $228.00
TI $76.00 $76.00 $152.00
Commercial $114.00 $114.00 $228.00
Commercial Solar $114.00 $114.00 $228.00
Technical Report $76.00 $76.00 $152.00
Fire Final for Residential Care
Facilities – Elderly
$60.00 $60.00 $120.00
Miscellaneous Review $76.00 $76.00 $152.00
Miscellaneous Clearance $76.00 $76.00 $152.00
Grading $114.00 $114.00 $228.00

Permit to Operate under California Fire Code
Description Fee
Additive Manufacturing $146.00
Aerosol Products $146.00
Amusement Buildings $146.00
Aviation Facilities $146.00
Carnival & Fairs $146.00
Cellulose Nitrate Film $146.00
Combustible Dust-Producing Operations $146.00
Combustible Fibers $146.00
Compressed Gases $146.00
Covered & Open Mall Buildings $600.00
Cryogenic Fluids $146.00
Cutting & Welding $146.00
Dry Cleaners $146.00
Energy Storage Systems $291.00
Exhibit & Trade Shows $146.00
Explosives $159.00
Fire Hydrants & Valves $146.00
Fireworks $159.00
Flammable & Combustible Liquids $146.00
Floor finishing >350 sq. ft. using Class I or II liquids $146.00 Fruit & Crop Ripening $146.00
Fumigation & Insecticidal Fogging $146.00
Hazardous Materials $291.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 12 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Hazardous Production Materials (HPM) Facilities $146.00 High Piled Storage $146.00
Hot Work Operations $146.00
Industrial Ovens $146.00
Liquefied Petroleum Gas $146.00
Liquid or Gas Vehicles or Equipment in Assembly
Building
$146.00
Lithium Batteries $291.00
Lumber Yards & Wood Working Plants $146.00
Magnesium $146.00
Miscellaneous Combustible Storage $146.00
Mobile Fueling of Hydrogen-Fueled Vehicles $146.00
Motor Fuel-Dispensing Facilities $146.00
Open Burning $146.00
Open Flames & Candles $73.00
Open Flames & Torches $146.00
Organic Coatings $146.00
Outdoor Assembly Event $146.00
Place of Assembly $146.00
Plant Extraction Systems $291.00
Private Fire Hydrants $146.00
Production Facilities $146.00
Pyrotechnic Special Effects Material $159.00
Pyroxylin Plastics $146.00
Refrigeration Equipment $146.00
Repair Garages & Motor Fuel-Dispensing Facilities $146.00 Rooftop Heliports $146.00
Spraying or Dipping $146.00
Storage of Scrap Tires & Tire Byproducts $291.00
Temp. Membrane Structures, Tents & Canopies $128.00
Tire-Rebuilding Plants $291.00
Waste Handling $146.00
Wood Products $146.00
Additional Permits – Production Facilities $159.00
Additional Permits – Pyrotechnic & Special Events $159.00 Additional Permits – Live Audiences $159.00

State Mandated Annual and Required Fire Inspections
Description Fee
Apartment, Hotel, Motel Inspections (1-14) $72.00
Apartment, Hotel, Motel Inspections (15-50) $114.00
Apartment, Hotel, Motel Inspections (51-100) $165.00
Apartment, Hotel, Motel Inspections (101-150) $227.00
Apartment, Hotel, Motel Inspections (151-200) $310.00
I L-----1-=== ==================::=----------_j

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 13 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Apartment, Hotel, Motel Inspections (201-250) $350.00
Apartment, Hotel, Motel Inspections (251-300) $392.00
Apartment, Hotel, Motel Inspections (301-350) $433.00
Apartment, Hotel, Motel Inspections (351-400) $475.00
Apartment, Hotel, Motel Inspections (>400) $516.00
Business (General) Fire Inspection Services $155.00
Care Facility Annual <25 $146.00
Care Facility Annual >25 $219.00
Care Facility Fire Clearance <25 $146.00
Care Facility Fire Clearance >25 $219.00
Care Facility Pre-Inspection <25 (by State law) $25.00
Care Facility Pre-Inspection >25 (by State law) $50.00
Daycare / In-home Care Licensing $146.00
Fire Clearance Pre-Inspection 25 or fewer people $50.00 Fire Clearance Pre-Inspection 26 or more people $100.00 Misc. Hourly Inspection Services $114.00
Mid-High Rise $291.00
High-Rise (Over 75 feet) $291.00
Institutional Occupancies $146.00
Large Family Day Care $73.00
Medical / Hospital Inspection $1,800.00

Expedited Plan Check Fee:

Expedited Plan Check Fee – when available, expedited plan check fee will be charged at the rate of the normal plan fee plus 50% to cover cost of overtime.

Weed Abatement:

The fee for abatement shall be the actual cost of the abatement, which may include, but is not limited to, city staff abatement (supplies/resources) and/or contractor costs.

Fire Permit Re-Inspection Fee:

The fee for re-inspection on any Fire Permit shall be zero cost upon 2nd inspection. Upon the 3rd and each subsequent inspection, the fee shall be $155.00.

Emergency Responses:

False Alarm - Upon 3rd and each subsequent false
Fire response at the same address within a twelve-
month period, as defined in Title 8 Health and Safety
Code
$225.00 upon 3rd (plus processing fee, if
applicable)
$75.00 each subsequent (4th, 5th, etc.) (plus
processing fee, if applicable)

Emergency Medical Services (EMS):

Non-Transport:

Basic Life Support (BLS) or Advanced Life
Support (ALS) Assessment
$0.00798.15
Advanced Life Support (ALS) Assessment $0.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 14 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Transport:

Basic Life Support (BLS) Transport $1,478.191,669.95
Advanced Life Support (ALS) Transport $2,606.182,902.28 Advanced Life Support (ALS) Transport
(Level 2)
$2,894.123,227.58
Transport Mileage $51.7258.43 per mile
Pre-Hospital Medical SuppliesOther Ancillary Charges Varies

Processing and Payment Fees:

Payment processing fee (online payment fee for Fire
Inspection and Permit Fee collection system – Fire
Recovery USA or similar
Processing fee set by contract, if applicable

PARKS & RECREATION

Recreation Center / Park / Field Fee Schedule

I. Center / Park Basic Use Fees

All "per hour" fees are charged per hour or fraction thereof.

The following fee schedule shall in all instances apply to all classifications except Class 1. a. Center Meeting Room $14.0016.00 per hour, minimum 3 hours.

Private Parties: $24.0028.00 per hour,
minimum 3 hours.
b. Center Kitchen $20.00 per use,; must be in conjunction with room rental.
c. Center Gymnasium $50.00 per hour, minimum 2 hours. Use must be compatible with normal
gymnasium use.
d. Fletcher Hills Center Backyard $15.0030.00 per hour, minimum 3 hours.

e. Fletcher Hills Swimming Pool $80.00 per hour, minimum 2 hours, plus Extra City Staff Services fee.

Minimum of two City certified lifeguards on
duty at all times.
f. Kennedy Skatepark $30.00 per hour, minimum 2 hours, plus Extra City Staff Services fee. Minimum of two
staff required. Light use an additional $16.00
per hour.
g. Wells Center Back Lawn $30.00 per hour, minimum 3 hours. h. Wells Park Mini-Pitch Soccer Court $75.0080.00 per hour, minimum 2 hours, plus Extra City Staff Services fee.

Minimum of two staff required. Light use is
an additional $16.00 per hour.

II. Special Use Fees

In addition to the basic rental fees as set forth in the fee schedule, additional fees will be charged for the following activities or services regardless of usage classifications.

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 15 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
a. Dog shows (AKC sanction or practice, but not to
include business meetings where dogs are not
present)
$120.00 per event.
b. Extra City Staff Services
(Applies to all Classifications except Class 1)
$25.0030.00 per hour per staff member
required, minimum 2 hours.
c. Commercial Uses (Class 5) $35.0040.00 per hour, minimum 4 3 hours. d. Cancellation / Damage / Cleaning Deposits
Recreation Centers / Parks
$50.00 minimum - $150.00 maximum.
e. Concession Stand $125.00 per month.
f. Complete Party Package (including, but not
limited to, food and decorations)
Actual Cost + 20%
g. Rec Squad $300.00 for 3 hours
h. Inflatable to accompany Rec Squad $200.00 for 3 hours i. Trackless Train at Wells Park only $1,500.00 for 2 hours

III. Field Basic Use Fees

Applies to Classes 2, 3, 4 and 5 for fields controlled by the Parks & Recreation Department. a. Field reservation
(baseball, softball, football, soccer)
$20.0030.00 per hour, minimum 2 hours.

IV. Open Play Gym Fees
a. Open Play Annual Card
(basketball, volleyball, pickleball)
$20.0025.00 for annual card.
$10.0012.00 Senior / Teen discount fee.

b. Replacement for any Open Play Annual Card $5.00 for remainder of annual card.

Leasable Park Spaces Fee Schedule
(Judson Park / Renette Plaza / Kennedy Park North Lawn / Hillside Upper Park / Wells Park Unlit Field)

All "per hour" fees are charged per hour or fraction thereof.

I. Basic Use Fees
a. Small Event (50 or fewer people) $100.00 per event.

Private Parties: $150.00 per event.
b. Large Event (51 – 250 people) $250.00 per event.

Private Parties: $300.00 per event.
c. Festivals or Community Events
(over 250 people)
$500.00 per day.

II. Special Use Fees

All Special Use Fees are in addition to Basic Use Fees. a. Cancellation / Damage / Cleaning Deposit $100.00 minimum - $500.00 maximum.

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 16 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
b. Musical Presentations

1. Single event $200.00 flat fee.

2. Series $300.00 per day.
c. Commercial Use $35.0040.00 per hour minimum 8 3 hours.

d. Extra City Staff Services $25.0030.00 per hour per staff member, minimum 2 hours.
e. Security Personnel (per security person) See Current Schedule

Prescott Promenade Fee Schedule

All "per hour" fees are charged per hour or fraction thereof.

I. Basic Use Fees
a. Small event (50 or fewer people) $100.00125.00 per event.

Private Parties: $150.00175.00 per event.
b. Large event (51 to 250 people) $250.00275.00 per event.

Private Parties: $300.00325.00 per event.
c. Festivals or Community Events

1. Small (251-500 people per day) $500.00550.00 per day.

2. Large (more than 500 people per day) $1,000.001,100.00 per day.

II. Special Use Fees

All Special Use Fees are in addition to Basic Use Fees. a. Alcohol Use(ABC license, security, and certificate of insurance required)
$25.0030.00 per hour, minimum 4 3
hours.
b. Commercial use $35.0040.00 per hour, minimum 8 3
hours.

c. Extra City Staff Services $25.0030.00 per hour per staff member, minimum 2 3 hours.
d. Alley Closure "Simple" $150.00200.00 per day.
e. Cancellation/Damage/Cleaning Deposit
$100.00 minimum - $500 maximum.
f. Power Use $50.0075.00 per day.
g. Security Personnel (per security person) See Current Schedule. h. Steam Cleaning Deposit *

1. Small Event/Festival $250.00 per day.

2. Large Event/Festival $850.00 per day.

* Steam Cleaning Deposit – User will be charged or credited per actual invoice.

Ronald Reagan Community Center Fee Schedule

All "per hour" fees are charged per hour or fraction thereof.

I. Basic Use Fees
a. Full auditorium; includes two (2) patios (4 hours
minimum use)
$100.00125.00 per hour.

Private Parties: $125.00150.00 per hour.
b. East auditorium; includes one (1) patio (2 hours
minimum use)
$75.00100.00 per hour.

Private Parties: $100.00125.00 per hour.

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 17 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
c. West auditorium; includes one (1) patio (2 hours
minimum use)
$50.0075.00 per hour.

Private Parties: $75.00100.00 per hour.
d. Kitchen $75.00 per100.00 use,; must be in
conjunction with hall rental.
e. Bridal Suite $50.00 per use,; must be in conjunction with hall rental.

II. Set-up Fees
All set-up and take-down must be done by Ronald Reagan Community Center staff. Equipment includes P.A. system, podiums, tables and chairs.
a. Full auditorium $90.00100.00
b. East room $60.0070.00
c. West room $50.0060.00

III. Special Use Fees
a. Extra City Staff Services $25.0030.00 per hour per staff person, minimum 2 hours.
b. Alcohol use (ABC license may be required) $25.0030.00 per hour, minimum 4 3 hours. c. Non-Operations Use (holidays, weekends,
weekdays before/after hours, etc.)
$50.0060.00 per hour.
d. Commercial use $35.0040.00 per hour, minimum 4 3 hours. e. Non-resident fee (Class 4 and 5 users) $30.00 per hour. f. Security personnel (per security person) See current schedule. g. Coffee service See current schedule.

IV. Special Equipment Use
a. Bar $30.00 each per day.
b. Piano $50.0060.00 per day.
c. Stage/Backdrops (6 ft. x 8 ft. – includes drapes) $50.00100.00 per day. d. Dance floor $80.00100.00 per day.
e. Audio Visual / Presentation Equipment $150.00 per day. f. Portable Patio Heaters $40.0050.00 each per day.

V. Cleaning/Security/Reservation Deposit
a. Non-alcohol use $250.00
b. Alcohol use $500.00

Recreation Special Revenue Fund

Community Services

Signs to be purchased by the public

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 18 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
I. No Trespass / Lodging signs a. Vinyl Window Cling $5.00 b. Corrugated Cardboard with
window suction cups
$10.00
c. 12 x 18 Metal Sign $15.00
d. 18 x 24 Metal Sign $25.00

POLICE
Audio Reproduction Fee $45.00
Body Worn Camera (BWC) Footage Reproduction $90.00
Civil Subpoena – Business Records $15.00
Civil Subpoena – Employee Witness Fee $275.00 – PD Employee (per day) $275.00 – Peace Officer (per day)
Copies 04 (plus actual cost of employee's time to
copy records)
Copy of Call for Service (CFS) Report $1.00
Copy of Police Report $10.00
False Alarm Business License Tax
(Upon 3rd and each subsequent false Police or Fire
alarm at the same address within a twelve-month
period)
$225.00 upon 3rd (plus processing fee, if
applicable)
$75.00 each subsequent (4th, 5th, etc.) (plus
processing fee, if applicable)
Fingerprint Fee (Inked) $20.00
Fingerprint (Live Scan Fee) $35.00
Massage License Fee $300.00
Parking Citation – online payment $3.50 processing fee
Pawnbroker and Secondhand Dealer License
Renewal Fee
$640.00
Private Property Towing Administration Fee $40.00
Vehicle Impound Fee:

Release of Impounded Vehicles
$150.00
Release of Impounded Vehicles $135.00
Release of Impounded Vehicles
Unlicensed/Revoked/Suspended
$150.00
Vehicle Repossession Fee $15.00
VIN Verification $5.00
VISA/Clearance Letter Fee:

Formal Letter $15.00
Formal Letter with Notarization $25.00

Photograph Reproduction:

Administrative Fee
Research photo files, obtain clearances, package
and mail (photos provided on CD)
$25.00
Per Unit Charges
Black & White and Color
4 x 5 $5.00
5 x 7 $6.00
8 x 10 $8.00
Polaroid – Black & White and Color $5.00
Proofs/Contact Sheets – Black & White and Color $8.00

PUBLIC WORKS
1911 Act Petition (up to 5 parcels) $1,600.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 19 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
1911 Act Petition (each additional parcel) $95.00
BMP Facility Maintenance Agreement $620.00
Building Permit Review – Estimated Value
< $80,000.00:

Single Family Residential $870.00
Multi-Family, Commercial or Industrial $1,280.00
Subdivision Master Building Permit $1,280.00
Minor Building Review; Addition of 400 square
feet; or Added Plumbing Fixtures
$320.00
Building Permit Review – Storm Water Fees
Single Family Residential $240.00
Multi-Family or Commercial $660.00
Subdivision Master Building Permit $660.00
Inspection Fees $90.00
Certificate of Correction for Subdivision Maps $750.00
Condo Conversions CC&Rs and/or SW Mtce/Ops
Plan Review
$350.00
Condo Conversions Storm Water Site Plan and/or
BMP Facilities Agreements Review
$350.00
Copies
Maps and Plans $5.00/sheet
Documents $.04 25 per page (plus actual cost of
employee's time to copy records)
Deed / Easement Prep / Quitclaim / LLA Deed Review $1,200.00 Drainage Study Review $1,890.00
Dumpster Permit $128.00
Encroachment Permit
Level One $135.00
Level Two $450.00
Level Three $580.00700.00
Encroachment (Plan Review Inspection – per hour) $100.00 Erosion/Sediment Control Plans >200 sq. ft.
(Remodels, Pools, Additions, Walls)
$110.00
Erosion/Sediment Control Plan Review
when Grading/Drainage Plan is not required
$600.00
Erosion/Sediment Control Plan Review
when Grading/Drainage Plan is required
$875.00
Erosion/Sediment Control (per Inspection) $90.00
Erosion/Sediment Control Site Inspection for
NPDES Compliance (includes 1-10 inspections)
$500.00 + 0.5%
Extension of Time for Tentative Subdivision and
Parcel Maps
No Hearing
$425.00
Extension of Time for Tentative Subdivision and
Parcel Maps
$1,050.00

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 20 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Hearing (includes Notice of Public Hearing cost)
Final Parcel Map Check (up to four (4) lots) $5,530.00
Final Subdivision Map Check (1st five (5) lots) $7,325.00 Final Subdivision Map Check (each additional lot) $200.00 GIS Fees Actual cost of employees' time
Grading/Drainage Plan Review (including precise
grading plans for new structures)

Priority Commercial/Industrial Facilities
Annual Inspection Required
$280.00
Inspection of Small or Medium High <100,000 sq. ft.

Misc. Fees Update effective 07/01/24 EXHIBIT "A" Page 21 of 21 Resolution No. __-24 adopted 04/23/24
Department Fee Description Current Fee/Unit Basis
Special Event – Prepare Traffic Plan (Major) $1,400.00
Special Event – Prepare Traffic Plan (Minor) $495.00
Special Event – Traffic Control (per hour per crew) $480.00 Special Event – Traffic Plan Review $394.00
Street Light Inspection per Light
(Amount includes est. $90.00 energizing fee from
SDG&E)
$500.00
Street or Public Service Easement Vacation
(with Public Hearing) $1,900.00
(without Public Hearing) $700.00
Standard Urban Storm Water Mitigation Plan
(SUSMP) Project Plan Review
(required if High Priority Project)
(three (3) Plan Checks (min)
$4,030.006,000.00
Conceptual SUSMP Project Plan Review $2,025.00
Priority Development Project (PDP) SUSMP Storm
Water Mitigation Plan (SWMitP) Review
$2,025.003,000.00
Additional Plan Check $160.00 each
SUSMP BMP Inspection
1-3 Features $270.00
>3 Features $360.00
SWPPP Review (>1 acre) $1,100.00
Subdivision Agreement Preparation $1,750.00
Traffic Control Plan Review $300.00
Traffic Impact Study Review $1,000.00
Trash Enclosure Building Permit Review $140.00
Utility Permit Fee
Utility Permit - Level One $500.00
Utility Permit - Level Two $850.00

Utility Permit - Level Three
$850.001,200.00 + additional inspection
hours

City Council
Agenda Report
Agenda Item 10.

DATE: April 23, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Graham Mitchell, City Manager
SUBJECT: El Cajon Critical Services Sales Tax Measure
RECOMMENDATION:

That the City Council receives the report, which provides an overview of the survey results for a possible sales tax measure and provides feedback on additional steps to consider, regarding the possible measure.

BACKGROUND:

Proposition J is a ½-cent sales tax measure that was passed by El Cajon voters in 2008 and is scheduled to sunset in 2028. Proposition J generates approximately $14 million—or about 13% of the City’s General Fund—and is a crucial revenue stream that funds Police and Fire services, street maintenance, and other essential City services.

With the 20-year sunset approaching, staff is analyzing necessary cuts in City services when the revenue source ceases. In addition, the City is analyzing the possibility of an extension of the sales tax measure. As part of that effort, a polling firm was hired to conduct a survey of the electorate on their understanding of the services that the ½-cent sales tax funds and whether the measure should be extended.

An overview of the survey results will be provided by the consultant at the City Council meeting.

In addition, staff will present possible reductions in services that would be required if the measure was not extended. Finally, staff will recommend next steps necessary to consider whether to place a sales tax measure on the November 2024 ballot, including educational outreach and solicitation of feedback.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

FISCAL IMPACT:

No fiscal impact.

Prepared By: Ryan Villegas, Senior Management Analyst
Reviewed By: N/A
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Approved By: Graham Mitchell, City Manager
City Council
Agenda Report
Agenda Item 11.

DATE: April 23, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Clay Schoen, Director of Finance
SUBJECT: Fiscal Year 2023-24 Mid-Year Report and Five-Year Business Plan Update RECOMMENDATION:

That the City Council:

Receives and accepts the Fiscal Year 2023-24 Mid-Year Report and Five-Year Business Plan update;

1. Authorizes the proposed personnel changes detailed in this report; and2.

Authorizes the proposed capital expenditures detailed in this report.3.

BACKGROUND:

The City of El Cajon prepares the Mid-Year Report and Five-Year Business Plan Update as part of an overall financial planning and monitoring program. Other major components of the program include the Annual Budget and the Annual Comprehensive Financial Report. When viewed as a cycle, they represent long-term planning, the implementation of that plan, and the execution and measurement of that plan.

Mid-Year Report - This document is an opportunity to measure financial performance at the midpoint of the fiscal year. Mid-year results are compared to both budgeted amounts and previous year’s results. This is also the basis for projecting year-end results, as well as longer-term projections.

Five-Year Business Plan - This document is a long-range financial plan intended to clarify City goals and objectives. By forecasting five years, City decision-makers can easily see the long-term impacts of their decisions, as well as provide time to prepare for future challenges.

As part of this process, it is common to identify City Council actions, including budget adjustments, which are needed for financial and/or operational circumstances that have arisen since the Fiscal Year 2023-24 budget was developed last year.

Personnel Adjustments
Subsequent to the creation of the Fiscal Year 2023-24 Annual Budget, a number of classification studies were completed. This process assesses if the current job classification correctly characterizes the work being performed. The following positions were evaluated. .!!!!_ Valley of opportunity
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City Clerk: Administrative Secretary (from Customer Service Representative) City Manager’s Office: Senior Management Analyst (from Management Analyst) Approval of this action amends the positions authorized in the Fiscal Year 2023-2024 Annual Budget to reflect the reclassifications. This change does not represent an addition to staff, it does affect the salaries and wages budget for the remainder of the fiscal year; however, no additional appropriation is required at this time.

Capital Authorization

Parks & Recreation Trailer (101610) As part of the Fiscal Year 2023-24 Annual Budget, the City Council approved the purchase of a trackless train to serve as an attraction at City events. The cost of this train was originally estimated at $95,000, but the final cost totaled $73,000. Upon placing the train in service, it was observed that loading and transporting the train with existing City equipment was difficult and placed it at risk of damage. Staff recommends the approval of the capital expenditure of $22,000, funded by monies originally programmed for the purchase of the train, for the purpose of procuring an appropriate trailer to safely transport the train.

Fire Department Equipment (101410) Staff recommends the approval of $160,000 of capital expenditure from existing appropriations. Proposed as part of this report is the replacement of $100,000 of Fire Department self-contained breathing apparatuses, and $60,000 for the repair of Fire Station 6’s breathing air compressor used to fill firefighters' air tanks.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The Fiscal Year 2023-24 Mid-Year Report and Five-Year Business Plan update, and proposed personnel changes and capital expenditures, are exempt from the California Environmental Quality Act (CEQA). Pursuant to State CEQA Guidelines section 15378(b)(2)(4) and (5), these administrative and fiscal activities are not projects and therefore not subject to CEQA.

FISCAL IMPACT:

The Fiscal Year 2023-24 Mid-Year Report and Five-Year Business Plan are critical for informed financial decision-making and the ongoing implementation of City goals. Approval of this action will not increase appropriations.

Prepared By: Clay Schoen, Director of Finance
Reviewed By: Vince DiMaggio, Assistant City Manager
Approved By: Graham Mitchell, City Manager
Attachments
FY24 Mid-Year Report and Five-Year Business Plan Update • •

CITY OF EL CAJON MID-YEAR REPORT

CITY OF EL CAJON MID-YEAR REPORT
FISCAL YEAR 2023-24

This report is intended to evaluate the status of revenues and expenditures at the halfway point of the fiscal year, as well as communicate anticipated year-end results. In evaluating mid-year performance, current y ear activity is compared to that of previous years and budgeted expectations. This analysis has been conducted for the City of El Cajon’s major funds: the General Fund, the American Rescue Plan Act special revenue fund, the Low- Moderate Income Housing Asset F und special revenue fund, and th e Wastewater enterprise fund. This report is useful for both managing operat ions for the remainder of this fiscal year, as well as contributing information necessary for the Five-Year Business Plan and developing the Fiscal Year 2024-25 Annual Budget.

Note: The following analysis was prepared solely for the purpose of determining how revenues and expenditures are performing a s related to the budget. Consequently, the information contained herein may not be presented in accordance with generally accepte d accounting principles.

GENERAL FUND

Overview
As of December 31, 2023, General Fund Revenues and Sources of Funds totaled $28.5 million, an increase of 3.7% ($1. 0 million) from the same point last year. Expenditures and Uses of Funds totaled $45.4 million, which is up approximat ely 8.5% ($3.6 million) from last year’s midway point. This change is primarily due to increased public safety expenditures.

For this period, July through December 2023, Expenditures and Uses of Funds exceeded Revenues and Sources of Funds by approximately $16.9 million. Several of the General Fund’s larger revenue streams, such as Property Taxes, are received in the latter half of the fiscal year. During the first six months of the fiscal year , the General Fund cash flow needs are reliant upon the City’s 20% Operating Reserve which p revents the City from having to borrow funds (i.e. issue tax and revenue anticipation notes), thereby avoiding additional interest and issuance expenses.

The table below summarizes this activity for the current year, as well as the two previous years.

FY23-24
Budget*
FY23-24
Mid-Year
% of
Budget
FY22-23
Mid-Year
FY21-22
Mid-Year
Revenues and Sources of Funds $98,352,815 $28,536,486 29.0 $27,514,581 $26,748,750 Expenditures and Uses of Funds 100,205,459 45,446,724 45.4 41,891,942 34,310,637 1 CITY OF EL CAJON MID-YEAR REPORT

By fiscal year end, Revenues and Sources of Funds are projected to total $94.9 million, which is $3.4 million below budget, and a 0.2% decrease from la st year. Expenditures and Uses of Funds are estimated to be $96.8 million at fiscal year-end. That total is $3.4 million below budget, but 3.5% abov e last year’s total expendit ures. Further analysis of selected revenues and expenditures follows.

Revenue and Sources of Funds
While the General Fund has many sources of revenue, three major categories account for 75.4% of total budgeted revenue. These categories are: Sales Taxes, Property Taxes, and Franchise Fees. Each of these will be discussed separate of all remaining sources.

Sales Taxes- Sales tax revenue is comprised of two components: the City’s share of the State sales tax rate and a vot er approved 0.5% general sales tax (Proposition J). At the mid-year point of the fiscal year, sales tax receipts are down approximately $108,988 (-

0.7%) from the same point last year. The table below summarizes these balances, as well as those of the two previous years.

FY23-24
Budget
FY23-24
Mid-Year
% of
Budget
FY22-23
Mid-Year
FY21-22
Mid-Year
Sales Taxes $33,513,222 $11,154,729 33.3 $11,196,482 $10,671,497 Sales Taxes (Proposition J) 13,353,000 4,527,624 33.9 4,594,859 4,267,394

Sales Taxes are expected to be under budgeted amounts by approx imately $1.3 million by fiscal year end. This is the result of worse than expected e conomic performance, as well as the loss of a significant sales tax generator.

Property Taxes- Property tax revenue is comprised of three major components: r egular property taxes, property tax received in lieu of Vehicle Licens e Fees, and the residual distribution from the Redevelopm ent Property Tax Trust Fund. Pr operty taxes, in total, are up approximately 6.6% ($294,815) from last year.

FY23-24
Budget
FY23-24
Mid-Year
% of
Budget
FY22-23
Mid-Year
FY21-22
Mid-Year
Property Taxes (PT) $13,491,146 $4,782,074 35.4 $4,487,259 $3,976,967 PT – In Lieu VLF 12,213,995 - - - -
PT – RPTTF Residual Distribution 1,460,020 - - - -

The majority of this revenue is received in the second half of the fiscal year, and projections indicate that year-end results will fall short of b udgetary expectations for this category by approximately $900,000 (3.3%).

2 CITY OF EL CAJON MID-YEAR REPORT

Franchise Fees- Franchise fees are collected from San Diego Gas & Electric, Wa ste Management, EDCO, Cox Communications, and Direct TV. At the mid point of the fiscal year, current year Franchise Fees are up approximately 26.3% ($394,506) from last year.

The table below illustrates Franchise Fees for the current year, as well as the two previous years.

FY23-24
Budget
FY23-24
Mid-Year
% of
Budget
FY22-23
Mid-Year
FY21-22
Mid-Year
Franchise Fees $7,539,261 $1,892,152 25.1 $1,497,646 $1,381,573

Other Revenue Categories- The remaining revenue categories represent 24.6% of total budgeted General Fund Revenues and Sources of Funds. The following table details the mid-year performance of each category for the current year, as well as the two most recent years.

FY23-24
Budget
FY23-24
Mid-Year
% of
Budget
FY22-23
Mid-Year
FY21-22
Mid-Year
Transient Occupancy Tax $3,532,995 $868,676 24.6 $815,087 $810,193 Business Licenses 819,660 529,605 62.3 435,930 398,414
Real Property Transfer Tax 500,000 130,297 26.1 167,437 515,760 Ambulance/Paramedic Tax 365,000 80,463 22.0 92,301 96,672 Licenses and Permits 1,800,000 1,170,311 65.0 1,078,671 913,100 Intergovernmental Revenues 1,400,541 438,358 31.3 519,405 309,714 Charges for Services 3,704,054 1,554,973 42.0 1,766,243 1,486,713 Use of Money and Property* 3,378,500 986,820 29.2 620,912 355,942 Fines and Forfeitures 738,500 251,800 34.1 208,600 207,831 Other Revenue& Reimbursement* 315,100 167,773 53.2 32,952 1,345,016 Other Financing Sources 197,821 832 0.4 797 12,463

*
Beginning in Fiscal Year 2022-23, a number of accounts were reclassified into the Use of Money and Property category which replaced the category Investment Earnings used in previous fiscal years.

Projected results for each major revenue category is shown in the following table.

FY23-24
Budget
FY23-24
Projected
% of
Budget
Sales Taxes $46,866,222 45,571,961 97.2
Property Taxes 27,165,161 26,265,415 96.7
Franchise Fees 7,539,261 6,710,561 89.0
All Other Categories 16,782,171 16,383,126 97.6
Total General Fund Revenue $98,352,815 $94,931,063 96.5

3 CITY OF EL CAJON MID-YEAR REPORT

Expenditures and Uses of Funds
Expenditures and Uses of Funds a re $45.4 million or 45.4% of bu dget at mid-year. This represents an 8.5% ($3.6 million) increase from the same point last year. This change is primarily attributable to increas ed personnel costs in the Poli ce and Fire Departments.

The following table shows mid-year expenditures organized by function for the current year, as well as the two preceding years.

FY23-24
Budget
FY23-24
Mid-Year
% of
Budget
FY22-23
Mid-Year
FY21-22
Mid-Year
General Government $9,916,951 $3,751,534 37.8 $3,749,454 $3,002,438 Public Safety- Police 49,847,393 24,172,309 48.5 21,789,608 17,428,843 Public Safety- Fire 21,766,701 10,341,606 47.5 9,443,714 8,105,994 Public Works 10,115,393 3,366,173 33.3 3,431,043 3,215,412 Parks & Recreation 4,757,514 2,121,411 44.6 1,996,003 1,494,198 Community Development 3,301,507 1,443,688 43.7 1,357,122 1,063,752 Other Financing Uses 500,000 250,002 50.0 124,998 - Total General Fund Expenditures $100,205,459 $45,446,724 45.4 $41,891,942 $34,310,637

General Fund expenditures are also shown by category in the following table.

FY23-24
Budget
FY23-24
Mid-Year
% of
Budget
FY22-23
Mid-Year
FY21-22
Mid-Year
Salaries and Benefits $69,040,765 $32,839,323 47.6 $29,078,803 $26,568,701 Materials, Services, and Supplies 21,534,211 8,170,450 37.9 8,546,390 7,741,937 Capital Outlay 1,134,519 262,216 23.1 123,851 -
Other Financing Uses 8,495,964 4,174,734 49.1 4,142,898 - Total General Fund Expenditures $100,205,459 $45,446,724 45.4 $41,891,942 $34,310,637

By year end, these categories in total are projected to total l ess than budgeted amounts as shown in the following table.

FY23-24
Budget
FY23-24
Projected
% of
Budget
Salaries and Benefits $69,040,765 68,242,567 98.8
Materials, Services, and Supplies 21,534,211 19,157,628 89.0 Capital Outlay 1,134,519 896,374 79.0
Other Financing Uses 8,495,964 8,495,964 -
Total General Fund Expenditures $100,205,459 $96,792,533 96.6

4 CITY OF EL CAJON MID-YEAR REPORT

Fund Balance
Fund balance is comprised of reserves and designations for spec ific operating needs or purposes. The 20% Operating Reserve is used to provide sufficient cash flow during the first half of the fiscal year, primarily resulting from the tim ing differences between expenditures and revenues. The Ec onomic Uncertainty Reserve is established for the purpose of stabilizing delivery of City services during periods of budget deficits and to mitigate the effects of major economic uncertainties resulting from unforeseen changes in revenues and/or expenditures. The Reserve for Unfunded Retir ement Obligation was established to address increas ing unfunded liabilities and high er employer contribution rates. Any remaining fund balance creates a Carryover Reserve.

The fund balance at the start of the fiscal year was $62.2 million. Taking into consideration projected revenues and expenditures at fiscal year-end; fund balance is expected to total approximately $60.3 million. The following table illustrates projected reserve balances at year-end.

Projected General Fund Balance

07/01/23
Fund Balance
06/30/24
Estimated
Fund Balance
20% Operating Reserve $16,161,701 $19,358,507
Economic Uncertainty Reserve 16,161,701 19,358,507
Reserve for Unfunded Retirement Obligation 13,000,000 13,000,000 Carryover Reserve ** 16,866,360 8,611,279
Total Fund Balance $62,189,762 $60,328,292

** Carryover Reserve is available to bridge any imbalance of expenditures exceeding revenues.

AMERICAN RESCUE PLAN ACT FUND

The American Rescue Plan Act Fund is a special revenue fund use d to manage various programs related to the mitigation of the impacts of the public health crisis related to the Covid-19 virus. The fund is administered by the City Manager’s Office, and is funded primarily by revenues generated from the American Rescue Plan Act.

FY23-24
Budget
FY23-24
Mid-Year
% of
Budget
FY22-23
Mid-Year
FY21-22
Mid-Year
Expenditures $22,264,968 $285,003 1.3 $2,427,133 $2,193,979 Revenues 22,655,540 - 0.0 - 7,600

5 CITY OF EL CAJON MID-YEAR REPORT

LOW-MODERATE INCOME HOUSING ASSET FUND

The Low-Moderate Income Housing Asset Fund (LMIHAF) is a special revenue fund used to manage the housing programs and projects to increase afforda ble housing opportunities for the City’s lower income households. The fund is administered by the City’s Community Development Department, and is funded primaril y by revenues generated from the housing assets transferred from the former redevelopment agency.

FY23-24
Budget
FY23-24
Mid-Year
% of
Budget
FY22-23
Mid-Year
FY21-22
Mid-Year
Expenditures $732,885 $ 108,897 14.9 $ 204,696 $ 242,270 Revenues 508,151 38,225 7.5 59,529 182,103

The activity in this fund is largely project based, and therefore highly impacted by timing differences. However, it is anticipated that year-end results will be within budget.

WASTEWATER ENTERPRISE FUND

Revenues at the midpoint of the fiscal year total $31.1 million, which is down 5.3% ($1.8 million) from the same point las t year. The chart below illustr ates mid-year performance for the current year, as well as the two preceding years.

Wastewater Revenues FY23-24
Budget
FY23-24
Mid-Year
% of
Budget
FY22-23
Mid-Year
FY21-22
Mid-Year
Sewer Service Fee $33,040,000 $30,035,572 90.9 $30,015,939 $26,820,607 Septic Tank Disposal Fee 1,697,713 415,071 24.4 622,540 428,758 All Other Revenue 311,730 606,009 194.4 2,174,871 281,493 Total Revenue $35,049,443 $31,056,652 88.6 $32,813,350 $27,530,859

Expenditures of $11.2 million are 11.7% ($1.5 million) lower th an the same period last year. It is anticipated that the Wastewater Fund expenditures will be within budget at year end.

Wastewater Expenditures FY23-24
Budget
FY23-24
Mid-Year
% of
Budget
FY22-23
Mid-Year
FY21-22
Mid-Year
Salaries & Benefits $4,446,228 $2,070,828 46.6 $2,106,726 $1,935,797 Materials, Services, and Supplies 23,621,634 8,001,523 34.3 7,396,178 7,537,495 Debt Service 592,205 461,008 77.8 454,196 421,190
Capital Outlay and Projects 1,516,420 469,945 31.0 2,499,789 130,735 Other Financing Uses 408,723
204,360 50.0 237,516 -
Total Expenditures $30,585,210 $11,207,664 36.6 $12,694,405 $10,025,217

6 BUDGET REVENUE BALANCE % BUDGET REVENUE BALANCE %
101 GENERAL FUND
11 CITY MANAGER 237,500$ 180,679$ 56,821$ 76.08% 363,000$ 144,102$ 218,898$ 39.70% 12 CITY CLERK AND ELECTIONS 63,000 25,810 37,190 40.97% 5,000 34,417 (29,417) 688.34% 14 FINANCE 90,867,745 25,361,017 65,506,728 27.91% 83,417,429 24,229,527 59,187,902 29.05% 16 CITY ATTORNEY ‐ 40 (40) 0.00% ‐ 55 (55) 0.00% 20 COMMUNITY DEVELOPMENT 2,119,643 1,277,400 842,243 60.26% 2,030,000 1,259,843 770,157 62.06% 30 POLICE 2,171,127 486,289 1,684,838 22.40% 1,844,307 507,287 1,337,020 27.51% 40 FIRE 1,270,000 592,000 678,000 46.61% 1,265,000 674,696 590,304 53.34% 50 PUBLIC WORKS 1,335,800 469,828 865,972 35.17% 878,000 603,663 274,337 68.75% 60 PARKS & RECREATION 288,000 143,425 144,575 49.80% 268,500 60,991 207,509 22.72% TOTAL GENERAL FUND 98,352,815$ 28,536,486$ 69,816,329$ 29.01% 90,071,236$ 27,514,581$ 62,556,655$ 30.55% 201 AMERICAN RESCUE PLAN ACT F 22,655,540 ‐ 22,655,540 0.00% 14,627,507 ‐ 14,627,507 0.00% 209 CA BEVERAGE GRANT ‐ 361 (361) 0.00% ‐ (176) 176 0.00% 211 GAS TAX 3,046,062 1,078,582 1,967,480 35.41% 2,861,662 1,191,955 1,669,707 41.65% 213 TRANSIT 138,518 3,967 134,551 2.86% 85,000 (1,807) 86,807 ‐2.13% 215 STATE COPS GRANT‐BRUELTE 268,000 210,763 57,237 78.64% 250,000 168,555 81,445 67.42% 222 FEDERAL ASSET FORFEITURE 6,000 16,177 (10,177) 269.62% 10,000 33,570 (23,570) 335.70% 223 STATE ASSET FORFEITURE 11,000 2,941 8,059 26.74% 1,000 8,007 (7,007) 800.74% 224 LOCAL PUBLIC SAFETY PROP 1 607,338 255,901 351,437 42.13% 525,000 254,875 270,125 48.55% 225 LEGACY POLICE GRANTS ‐ ‐ ‐ 0.00% ‐ (29,853) 29,853 0.00% 226 POLICE GRANTS 578,801 200,408 378,393 34.62% 1,146,927 63,239 1,083,688 5.51% 240 RECREATION PROGRAMS 688,159 343,502 344,657 49.92% 714,210 173,894 540,316 24.35% 241 MAGNOLIA PERFORMING ARTS 500,000 105,718 394,282 21.14% 600,000 203,975 396,025 34.00% 251 PUBLIC WORKS OPERATING GRA 146,529 63,986 82,543 43.67% 3,004,287 23,248 2,981,039 0.77% 254 FIRE DEPARTMENT GRANTS 70,915 ‐ 70,915 0.00% 159,591 ‐ 159,591 0.00% 260 COMMUNITY DEVELOPMENT GRAN 137,621 122,799 14,822 89.23% ‐ ‐ ‐ 0.00% 265 LEGACY COMM DEV MISC GRANT ‐ ‐ ‐ 0.00% ‐ 5,760 (5,760) 0.00% 266 STATE CASP‐AB1379 FUND 29,664 18,492 11,172 62.34% 28,000 17,700 10,300 63.21% 270 LEGACY CDBG ‐ ‐ ‐ 0.00% ‐ (503,650) 503,650 0.00% 271 COMMUNITY DEV BLOCK GRANT ‐ 344,212 (344,212) 0.00% 1,219,861 518,695 701,166 42.52% 275 LEGACY HOME ‐ ‐ ‐ 0.00% ‐ (9,290) 9,290 0.00% 276 HOME ‐ 13,779 (13,779) 0.00% 665,010 519,486 145,524 78.12% 280 CAL HOME GRANT 100,000 ‐ 100,000 0.00% ‐ ‐ ‐ 0.00% 290 LOW‐MOD HOUSING ASSET FUND 508,151 38,225 469,926 7.52% 503,420 59,529 443,891 11.82% 299 HOUSING IN LIEU FEES ‐ 3,602 (3,602) 0.00% ‐ 244,613 (244,613) 0.00% 401 PENSION OBLIGATION BONDS 9,119,116 4,560,945 4,558,171 50.02% 9,122,874 4,561,428 4,561,446 50.00% 501 CITY CAPITAL IMPROVMNT PRO ‐ 40,037 (40,037) 0.00% 1,448,822 37,175 1,411,648 2.57% 502 PUBLIC SAFETY FACILITY ‐ 21,760 (21,760) 0.00% 40,486 (10,841) 51,327 ‐26.78% 503 LEGACY TRANSNET ‐ ‐ ‐ 0.00% ‐ (630,650) 630,650 0.00% 506 LEGACY TRAFFIC CONG RELIEF ‐ ‐ ‐ 0.00% ‐ (1,086) 1,086 0.00% 511 ROAD MAINTENANCE & REHAB ‐ 1,167,285 (1,167,285) 0.00% 2,286,226 968,022 1,318,204 42.34% 512 TRANSNET 6,800,000 183,839 6,616,161 2.70% 8,223,465 ‐ 8,223,465 0.00% 513 REGIONAL TRANSP CONGESTION ‐ 110,928 (110,928) 0.00% ‐ 5,324 (5,324) 0.00% 515 LEGACY PARK IMPACT FEES ‐ ‐ ‐ 0.00% ‐ (411) 411 0.00% 516 TRAFFIC CONGESTION RELIEF ‐ 1,718 (1,718) 0.00% ‐ ‐ ‐ 0.00% 517 PARK IMPACT FEES ‐ 1,513 (1,513) 0.00% ‐ 825 (825) 0.00% 550 LEGACY PW TRANSPORTATION 7,100,000 2,470,022 4,629,978 34.79% ‐ ‐ ‐ 0.00% 551 CAPITAL GRANTS 1,000,000 59,127 940,873 5.91% 20,489,971 14,194 20,475,776 0.07% 552 LEGACY TRANSPORTATION GRAN ‐ ‐ ‐ 0.00% ‐ (49,176) 49,176 0.00% 553 LEGACY TRANSPRT CONGESTION ‐ ‐ ‐ 0.00% ‐ (2,222) 2,222 0.00% 554 LEGACY RMRA ‐ ‐ ‐ 0.00% ‐ (379,813) 379,813 0.00% 601 VEHICLE‐EQUIPMENT MAINTENA 2,201,000 995,831 1,205,169 45.24% 2,200,000 1,100,277 1,099,723 50.01% 605/606 VEHICLE‐EQUIPMENT REPLACEM 500,000 250,002 249,998 50.00% 250,000 124,998 125,002 50.00% 610 SELF‐INSURANCE FUND 4,483,255 2,060,489 2,422,766 45.96% 4,212,000 2,074,749 2,137,251 49.26% 615 IT SERVICES FUND 3,817,788 1,925,370 1,892,418 50.43% 3,850,741 1,862,742 1,987,999 48.37% 620 OTHER POST‐EMPLOYMENT BENE 1,200,000 598,170 601,830 49.85% 1,200,000 600,012 599,988 50.00% 650 WASTEWATER 35,049,443 31,056,652 3,992,791 88.61% 31,794,000 32,809,163 (1,015,163) 103.19% 651 WASTEWATER PROJECTS AND GR ‐ ‐ ‐ 0.00% ‐ 4,187 (4,187) 0.00%

CITY OF EL CAJON

MID-YEAR REVENUE AND SOURCES OF FUNDS COMPARISON REPORT CURRENT YEAR / FY2023-24 PRIOR YEAR / FY2022-23
FUND
7 BUDGET EXPENDITURE BALANCE % BUDGET EXPENDITURE BALANCE % 101 GENERAL FUND
10 MAYOR‐CITY COUNCIL 625,636$ 342,615$ 283,021$ 54.76% 624,519$ 271,171$ 353,348$ 43.42% 11 CITY MANAGER 3,635,630 971,869 2,663,761 26.73% 3,572,846 1,099,552 2,473,294 30.78% 12 CITY CLERK AND ELECTIONS 705,011 303,328 401,683 43.02% 786,349 421,061 365,288 53.55% 14 FINANCE 2,854,107 1,231,439 1,622,668 43.15% 2,597,893 1,137,781 1,460,112 43.80% 16 CITY ATTORNEY 823,162 302,274 520,888 36.72% 827,419 294,558 532,861 35.60% 18 HUMAN RESOURCES 1,273,405 600,009 673,396 47.12% 1,275,486 525,330 750,156 41.19% 20 COMMUNITY DEVELOPMENT 3,301,507 1,443,688 1,857,819 43.73% 3,349,046 1,357,122 1,991,924 40.52% 30 POLICE 49,847,393 24,172,309 25,675,084 48.49% 46,006,956 21,789,608 24,217,348 47.36% 40 FIRE 21,766,701 10,341,606 11,425,095 47.51% 19,477,573 9,443,714 10,033,859 48.49% 50 PUBLIC WORKS 10,115,393 3,366,173 6,749,220 33.28% 9,854,938 3,431,043 6,423,895 34.82% 60 PARKS & RECREATION 4,757,514 2,121,411 2,636,103 44.59% 4,739,227 1,996,003 2,743,224 42.12% 80 OTHER FINANCING SOURCES & U 500,000 250,002 249,998 50.00% 750,000 124,998 625,002 16.67% TOTAL GENERAL FUND 100,205,459$ 45,446,724$ 54,758,736$ 45.35% 93,862,252$ 41,891,942$ 51,970,310$ 44.63% 201 AMERICAN RESCUE PLAN ACT F 22,264,968 285,003 21,979,965 1.28% 26,407,999 2,427,133 23,980,866 9.19% 209 CA BEVERAGE GRANT ‐ 2,104 (2,104) 0.00% ‐ ‐ ‐ 0.00% 211 GAS TAX 3,672,108 1,286,706 2,385,402 35.04% 3,592,274 1,226,988 2,365,286 34.16% 213 TRANSIT 124,931 31,692 93,239 25.37% 117,506 33,605 83,901 28.60% 215 STATE COPS GRANT‐BRUELTE 307,638 43,840 263,798 14.25% 404,586 85,677 318,909 21.18% 222 FEDERAL ASSET FORFEITURE 67,872 34,392 33,480 50.67% 67,872 32,954 34,918 48.55% 224 LOCAL PUBLIC SAFETY PROP 1 805,426 416,165 389,261 51.67% 827,388 263,682 563,706 31.87% 226 POLICE GRANTS 578,801 54,264 524,537 9.38% 1,146,927 135,433 1,011,494 11.81% 240 RECREATION PROGRAMS 957,807 261,988 695,819 27.35% 694,711 311,574 383,137 44.85% 241 MAGNOLIA PERFORMING ARTS 1,018,000 149,468 868,532 14.68% 1,138,900 389,364 749,536 34.19% 245 RECREATION GRANTS ‐ 2,035 (2,035) 0.00% ‐ ‐ ‐ 0.00% 251 PUBLIC WORKS OPERATING GRA 146,529 ‐ 146,529 0.00% 3,004,287 24,691 2,979,596 0.82% 254 FIRE DEPARTMENT GRANTS 70,915
4,686 66,229 6.61% 159,591 ‐ 159,591 0.00% 260 COMMUNITY DEVELOPMENT GRAN 137,621 ‐ 137,621 0.00% ‐ 35,430 (35,430) 0.00% 266 STATE CASP‐AB1379 FUND 9,200 832 8,368 9.05% 7,200 937 6,264 13.01% 271 COMMUNITY DEV BLOCK GRANT ‐ 507,503 (507,503) 0.00% 4,786,303 425,652 4,360,650 8.89% 276 HOME ‐ 35,203 (35,203) 0.00% 4,026,923 37,399 3,989,524 0.93% 280 CAL HOME GRANT 64,588 ‐ 64,588 0.00% 64,588 ‐ 64,588 0.00% 290 LOW‐MOD HOUSING ASSET FUND 732,885 108,897 623,988 14.86% 3,276,500 204,696 3,071,804 6.25% 299 HOUSING IN LIEU FEES 303,000 ‐ 303,000 0.00% 303,000 ‐ 303,000 0.00% 401 PENSION OBLIGATION BONDS 9,125,355 1,768,427 7,356,928 19.38% 9,127,874 ‐ 9,127,874 0.00% 501 CITY CAPITAL IMPROVMNT PRO ‐ 101,066 (101,066) 0.00% 9,963,456 222,197 9,741,259 2.23% 502 PUBLIC SAFETY FACILITY ‐ 46,711 (46,711) 0.00% 4,076,774 263,705 3,813,069 6.47% 511 ROAD MAINTENANCE & REHAB ‐ 832,355 (832,355) 0.00% 5,001,391 926,261 4,075,130 18.52% 512 TRANSNET 6,800,000 491,922 6,308,078 7.23% 8,020,087 189,681 7,830,406 2.37% 513 REGIONAL TRANSP CONGESTION ‐ 122,810 (122,810) 0.00% 720,000 1,742 718,258 0.24% 514 SPECIFIC STREET OBLIGATION ‐ 7,123 (7,123) 0.00% 721,719 101 721,618 0.01% 516 TRAFFIC CONGESTION RELIEF ‐ 63,621 (63,621) 0.00% 373,000 903 372,097 0.24% 550 CIP MEMO ONLY FUND 7,100,000 292,045 6,807,955 4.11% 76,721,850 4,046,559 72,675,292 5.27% 551 CAPITAL GRANTS 1,000,000 (39,606) 1,039,606 ‐3.96% 18,510,001 484,443 18,025,558 2.62% 601 VEHICLE‐EQUIPMENT MAINTENA 2,324,030 880,121 1,443,909 37.87% 2,342,236 984,268 1,357,968 42.02% 605/606 VEHICLE‐EQUIPMENT REPLACEM 1,375,796 502,307 873,489 36.51% 1,125,209 38,106 1,087,103 3.39% 610 SELF‐INSURANCE FUND 6,024,135 3,565,384 2,458,751 59.18% 5,158,490 3,090,928 2,067,562 59.92% 615 IT SERVICES FUND 4,468,926 1,856,151 2,612,775 41.53% 5,613,770 2,234,110 3,379,660 39.80% 620 OTHER POST‐EMPLOYMENT BENE 1,005,040 196,807 808,233 19.58% 1,212,000 184,905 1,027,095 15.26% 650 WASTEWATER 30,285,210 10,654,983 19,630,227 35.18% 26,920,284 10,635,332 16,284,952 39.51% 651 WASTEWATER PROJECTS AND GR 300,000 552,682 (252,682) 184.23% 14,879,379 2,059,074 12,820,305 13.84%

CITY OF EL CAJON

MID-YEAR EXPENDITURE AND USES OF FUNDS COMPARISON REPORT CURRENT YEAR / FY2023-24 PRIOR YEAR / FY2022-23
FUND
8 CITY OF EL CAJON FIVE-YEAR BUSINESS PLAN

CITY OF EL CAJON FIVE-YEAR BUSINESS PLAN
FISCAL YEAR 2024-25 UPDATE

The Five-Year Business Plan is used to evaluate and update reve nue and expenditure assumptions for the General Fund and other funds based on current economic conditions.

Long-range forecasting can reveal imbalances not apparent today, providing time to take corrective action in a proactive way. Accordingly, financial pl anning is central to how the City is governed and managed. This long-range financial forecas t is not intended as a budget, but as a decision-making tool.

The purpose of the plan is to assist City staff in making bette r business decisions by assessing mid-term and long-term financial implications of curr ent economic conditions and proposed obligations, policies, programs, and assumptions. As such, the Five-Year Business Plan is an important tool in preparation of the upcomi ng budget. The plan represents the opportunity to take a broad view of the City’s o perating finances before considering the details of the Annual Budget.

Economic Outlook
The economic outlook for the county, state, and nation are taken into consideration when updating the Five-Year Business Plan. To summarize its outlook, the Federal Reserve’s Open Market Committee (FOMC) made the following comments in its March 20, 2024 press release.

Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained strong, and the unemployment rate has remai ned low. Inflation has eased over the past year but remains elevated.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risk s to achieving its employment and inflation goals are moving into better balance. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks.

This message is consistent with its more comprehensive Monetary Policy Report from March 1, 2024 which similarly stated the following.

Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have moderated since early last year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated.”

This report, includes summaries of economic projections from it s (approximately 20) participating economists. The median projections of national GDP growth of 1.4% in 2024,

1.8% in 2025, and 1.9% in 2026. Beyond that, the expectation is 1.8% for the “Longer run.” In a recent release the Bureau of Economic Analysis repor ted the Gross Domestic Product increased at a 3.3% annual rate, marking six consecutiv e quarters of positive economic growth.

9 CITY OF EL CAJON FIVE-YEAR BUSINESS PLAN

Additionally, the FOMC’s Monetar y Policy Report’s economists co llectively projected a national employment rate of 4.1% for all periods reported. As of December 2023, the Bureau of Labor Statistics reported a national unemployment rate of 3.5%.

Inflation remains the FOMC’s primary concern, as stated, and pr ojects inflation to return to their target rate by 2026. T he Bureau of Labor Statistic’s release for January 2024 reported inflation (as estimated by the Consumer Price Index) of 3.1% over the preceding twelve months.

Most indicators suggest a modestly growing economy. World event s always represent possible disruption to the economy, but the effects of a presid ential election year may also influence the course of the economy. The perceived state of the economy may be a reflection of the choice of the source of information. The City will continue to monitor events closely, and make sound decisions based on data, rather than speculation.

Highlights of this Update

The most important elements of this report’s projected activity is the short-term decline is Sales Tax revenue in Fiscal Year 2023-24 and 2024-25, as well as long-term impacts of the sun-setting of Proposition J Sales Tax in 2029.

Employee Retirement – CalPERS
The City is a member of the California Public Employees’ Retirement System (CalPERS).

All City employees who work at least 1,000 hours per fiscal year are eligible to participate in CalPERS. Participants in the plan vest after five years of employment.

Over the past few years the CalPERS Board approved significant changes to actuarial policies and assumptions to enhance the long-term stability of the fund. These changes, along with poor investment performance, continue to place signi ficant burden on City finances.

Presented below are tables showing projected CalPERS contributi on rates, as well as projected total contributions a longside Pension Obligation Bond s (POB) debt service payments.

PROJECTED CALPERS EMPLOYER CONTRIBUTION RATES
FY 2024-25 FY 2025-26 FY 2026-27 FY2027-28 FY2028-29
Miscellaneous 20.0% 24.4% 28.6% 32.6% 36.3%
Safety 43.3% 45.6% 47.7% 49.2% 53.8%
*The rates stated above are employer rates only; employee rates apply in addition to the above rates.

10 CITY OF EL CAJON FIVE-YEAR BUSINESS PLAN

PROJECTED CALPERS/POB CASH FLOW ANALYSIS

CalPERS employer contributions , and the City’s unfunded pension liability, continue to represent one of the most signifi cant challenges for the City. While the City has taken significant action to mitigate this issue, there is no guarantee that CalPERS contributions will not continue to grow. It is i mperative that the City maint ains focus on this issue to ensure the continuation of the progress it has made.

Assumptions Utilized in the Five-Year Business Plan
The Five-Year Business Plan is based on the following assumptions regarding the future.

General Fund Revenue Assumptions

1. Revenue projections are bas ed on anticipated Fiscal Year 202 3-24 revenues as determined by mid-year analysis, as well as the most recent data available.

2. Sales tax revenue projections are based on estimates provide d by the City’s sales tax consultant/analyst.

3. Property tax revenues are projected to grow by 5.0% annually .

4. Residual revenue distribution resulting from the dissolution of the redevelopment agency is conservatively projected based on experience.

5. Assumes most other revenues to grow 2.0% annually where appropriate.

6. Anticipates no revenue reductions to aid in balancing the State’s budget.

7. Assumes no extension of the additional sales tax authorized by Proposition J in 2009.

General Fund Expenditure Assumptions

1. Salary and wages are project ed using negotiated or estimated rates where available, and assumes growth where applicable.

2. Personnel costs assume an attrition rate in all projected ye ars.

3. Pension related costs are pr ojected based on information pro vided by CalPERS as part of the actuarial valuations.

4. Assumes additional CalPERS c ontributions in FY2024-25, and FY2025-26.

5. Materials and Suppl ies expenditure growth is projected at 2. 0% annually where appropriate.

6. Assumes General Fund funding of the City’s capital improveme nt program and vehicle replacement.

7. Assumes no additional General Fund subsidy in support of Mag nolia Performing Arts Center operation.

Fiscal
Year
CalPERS
Contributions
POB Debt
Service
FY 2024‐25 13,534,466           9,120,081
FY 2025‐26 15,485,108           9,118,645
FY 2026‐27 17,337,669           9,122,192
FY 2027‐28 19,523,713           9,119,078
FY 2028‐29 21,961,028           9,119,078
11 CITY OF EL CAJON FIVE-YEAR BUSINESS PLAN

Wastewater Enterprise Fund Assumptions

1. Revenue projections are bas ed on anticipated Fiscal Year 202 3-24 revenues as determined by mid-year analysis, and assumes revenues to grow 2.0% annually.

2. Potential rate increases are not included in the projections.

3. Salary and wages are project ed using negotiated or estimated rates where available, and assumes growth where applicable.

4. Personnel costs assume an attrition rate in all projected ye ars.

5. Pension related costs are pr ojected based on information pro vided by CalPERS as part of the actuarial valuations.

6. Assumes additional CalPERS c ontributions in FY2024-25, and FY2025-26.

7. Capital expenses are project ed for the current year, and an assumed annual

2.0% growth rate for future years.

8. All other non-pers onnel expenses are projected at known amounts, or 2.0% annually.

Projection Limitations
Projections are designed to anticipate future performance based on past results, but unforeseen events can dramatically impact anticipated results. Projections should therefore be used as a planning tool and to identify structural flaws. The mitigation of these unforeseen events takes place during the annual budget pr ocess and the daily operation of the organization.

General Fund Projection Results
Once the assumptions identified above are taken into account, a nd weighed alongside objective information, a picture of anticipated results emerges. The overall conclusion is that revenue growth is anticipated to soften in Fiscal Year 202 3-24, stabilize in Fiscal Year 2024-25, and then begin to grow again. Expenditures will need to be closely monitored in order to align with projected revenues. The impact of unforeseen events may have much bigger impacts than what is anticipated here. The information presented below indicates the starting point from which adjustments can be made during the annual budget process to ensure balanced budgets going forward.

12 CITY OF EL CAJON FIVE-YEAR BUSINESS PLAN

Summary of Projected General Fund Activity

Fund Balance
City Council Policy B-12, Fund Ba lance, establishes a policy th at ensures the City maintains adequate fund balance and reserves to provide suffici ent cash flow for daily needs, secure and maintain investment grade bond ratings, offset significant economic downturns and revenue shortfalls, and provide funds for unforeseen expenditures related to emergencies.

In accordance with the Policy, t he General Fund, Fund Balance i s currently segregated into an operating reserve, an economic uncertainty reserve, an unfunded pension obligation reserve, and a carryov er reserve. The purpose for ea ch of these reserves is discussed more fully below.

Operating Reserve – The Operating Reserve is recomputed annuall y a t 2 0 % o f expenditures and is maintained each year. The Operating Reserve serves the following essential purposes:

1. Provides cash flow to avoi d borrowing (tax and revenue antic ipation notes) during low cash periods (typically the first six-months of the fiscal year).

2. Provides interest-earning re venues to benefit the General Fund.

3. Serves as the single most im portant practice evaluated by cr edit rating agencies when rating a municipality.

4. Protects the City from unfor eseeable circumstances such as:
 Unexpected costs resulting from a national or local disaster.  A sudden worsening in the economy.
 Unanticipated external factors, such as litigation or negative actions of other governments.

Fiscal
Year
Projected
Inflows
Projected
Outflows
Change in
Fund Balance
FY 2023‐24 94,931,063       96,792,533        (1,861,470) FY 2024‐25 97,698,765       101,345,130    (3,646,365)
FY 2025‐26 100,861,463    105,967,400     (5,105,937)
FY 2026‐27 104,178,868    108,626,813     (4,447,945)
FY 2027‐28 107,673,182    113,778,762     (6,105,580)
FY 2028‐29 107,579,307    117,980,133     (10,400,826)
FY 2029‐30 99,212,416      120,413,517    (21,201,101)
FY 2030‐31 102,041,893    122,901,586     (20,859,693)
FY 2031‐32 105,001,907    125,445,582     (20,443,675)
FY 2032‐33 108,056,414    128,046,780     (19,990,366)
FY2033‐34 111,262,557    130,706,480     (19,443,923)
13 CITY OF EL CAJON FIVE-YEAR BUSINESS PLAN

Economic Uncertainty Reserve – This reserve is established for the purpose of stabilizing delivery of City services duri ng periods of structural budget d eficits and to mitigate the effects of major economic uncerta inties resulting from unforese en changes in revenues and/or expenditures.

Unfunded Retirement Obligation Reserve - This reserve was estab lished to address the increasing unfunded liability and higher employer contribution rates. CalPERS conducts periodic evaluations of the act uarial assumptions and, after du e consideration by its Board, modifies the assumptions based on actual experience.

Carryover Reserve – The Carryover Reserve is available for the following purposes, and, without mitigation, is expected to be reduced over the course o f the Five-Year Business Plan:

1. Allocating additional contribut ions to vehicle/equipment rep lacement, information technology replacement, and capital improvement projects for long- term fiscal sustainability.

2. Stabilizing delivery of City services during periods of operational budget deficits.

3. Mitigating the effects of maj or economic uncertainties resul ting from unforeseen changes in revenues and/or expenditures.

Based on projections, and without mitigation, the table below summarizes the impact on fund balance of anticipated activity over the next five years.

GENERAL FUND FY2023-24 FY2024-25 FY 2025-26 FY2026-27 FY207-28 FY2028-29 Projected Total Ending
Fund Balance $60,328,292 $56,681,927 $51,575,990 $47,128,046 $41,022,466 $30,621,640

Wastewater Enterprise Fund Projection Results
Once the assumptions identified above are taken into account, a nd weighed alongside objective information, a picture of anticipated results emerges. The impact of unforeseen events may have much bigger impac ts than what is anticipated here. The information presented below indicates the starting point from which adjustments can be made during the annual budget process to ensure balanced budgets going forward.

14 CITY OF EL CAJON FIVE-YEAR BUSINESS PLAN

Summary of Projected Wastewater Fund Activity

It should be noted that this set of projections does not includ e the impact of user rate increases. As the City increases its repair, maintenance, and development of its sewer system beyond previous levels, authorized rate increases may be necessary.

Additionally, rate increases, significant increases in Metropol itan Wastewater JPA participation, or expanded capital activity will greatly affect projected results. However, based on projections, and without mitigation, the table below summarizes the impact on fund balance of anticipated activity over the next five years.

The table below summarizes the impact on fund balance of this projected activity over the next five years.

WASTEWATER FUND FY2023-24 FY2024-25 FY2025-26 FY2026-27 FY2027-28 FY2028-29 Projected Total Ending
Budgetary Fund Balance $49,800,642 $55,609,830 $61,485,667 $67,455,400 $73,432,192 $79,429,224

Fiscal
Year
Projected
Inflows
Projected
Outflows
Change in
Fund Balance
FY 2023‐24 34,501,679     25,781,183      8,720,496
FY 2024‐25 35,191,713     29,382,525      5,809,188
FY 2025‐26 35,895,547     30,019,709      5,875,838
FY 2026‐27 36,613,458     30,643,725      5,969,733
FY 2027‐28 37,345,727     31,365,934      5,979,793
FY 2028‐29 38,092,641     32,098,610      5,994,031
15 City Council
Agenda Report
Agenda Item 12.

DATE: April 23, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Clay Schoen, Director of Finance
SUBJECT: Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023, 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, 2023.

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 (i.e., 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
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:

This is an informational item being considered by the City Council. Therefore, it is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under section 15378(b)(5) of CEQA Guidelines. It is an organizational or administrative activity of government that will not result in a direct or indirect physical change in the environment.

FISCAL IMPACT:

None.

Prepared By: Luca Gonzales, Financial Operations Manager Reviewed By: Clay Schoen, Director of Finance
Approved By: Graham Mitchell, City Manager
Attachments
ACFR 2022-23
Audit Report
GANN Limit Report
SAS114 Letter
City of El Cajon
California
Fiscal Year Ending June 30, 2023

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
The Valley of Opportunity

City of El Cajon, California

Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2023

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 .......................................................................................................................... 32 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 ........................................ 45 Proprietary Funds
Statement of Net Position ................................................................................................................... 47 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................ 48 Statement of Cash Flows .................................................................................................................... 49 Fiduciary Funds
Statement of Fiduciary Net Position .................................................................................................... 51 Statement of Changes in Fiduciary Net Position ................................................................................ 52 Notes to the Basic Financial Statements ......................................................................................................... 53

Required Supplementary Information (Unaudited)
Budgetary Information
Net Pension Liability
Schedule of Changes in the Net Pension Liability and Related Ratios ............................................ 100 Schedule of Plan Contributions ......................................................................................................... 104 Notes to Required Supplementary Information – Net Pension Liability ............................................ 105 Other Post-Employment Benefits (OPEB)
Schedule of Changes in the OPEB Liability and Related Ratios ..................................................... 106 Schedule of Plan Contributions - OPEB ........................................................................................... 108 Notes to Required Supplementary Information - OPEB ................................................................... 109 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (Budgetary Basis)
General Fund ............................................................................................................................. 110 Low and Moderate Income Housing Major Special Revenue Fund ........................................... 113

CITY OF EL CAJON

TABLE OF CONTENTS

FINANCIAL SECTION (continued)

Reconciliation of Schedule of Revenues, Expenditures, and Changes in Fund Balances Budgetary To GAAP Basis – Major Governmental Funds ................................................................ 114 Notes to the Budgetary Information ......................................................................................................... 115

Supplementary Information
General Fund
Balance Sheet (GAAP Basis) .................................................................................................................. 117 Schedule of Revenues, Expenditures and Changes in Fund Balances (GAAP Basis) ......................... 118 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual (Budgetary Basis)
General Fund - Recreation Special Programs ........................................................................... 119 General Fund - Magnolia Performing Arts .................................................................................. 120 Nonmajor Governmental Funds
Combined Balance Sheet ........................................................................................................................ 121 Combined Statement of Revenues, Expenditures and Changes in Fund Balances ............................... 122 Nonmajor Special Revenue Funds
Combining Balance Sheet ....................................................................................................................... 124 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............................. 126 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Gas Tax ............................................................................................................................................. 128 Transit ............................................................................................................................................. 129 Federal/County Asset Forfeiture ....................................................................................................... 130 Local Public Safety ............................................................................................................................ 131 Housing In-Lieu Fees ....................................................................................................................... 132 State Certified Access Specialist Program ....................................................................................... 133 Community Development Block Grant .............................................................................................. 134 HOME ............................................................................................................................................. 135 Nonmajor Debt Service Fund
Balance Sheet ......................................................................................................................................... 137 Schedule of Revenues, Expenditures and Changes in Fund Balances .................................................. 138 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 ........................................................................................................................... 158 Changes in Net Position ................................................................................................................................. 160 Fund Balance of Governmental Funds .......................................................................................................... 164 Changes in Fund Balance of Governmental Funds ............................................................................................. 166

CITY OF EL CAJON

TABLE OF CONTENTS

iii

STATISTICAL SECTION, Unaudited (continued)

Revenue Capacity
Tax Revenues by Source, Governmental Funds ........................................................................................... 168 Principal Sales Tax Producers ....................................................................................................................... 169 Taxable Sales by Category ............................................................................................................................ 170 Assessed Value of Taxable Property ............................................................................................................. 171 Direct and Overlapping Property Tax Rates .................................................................................................. 172 Property Tax Levies and Collections ............................................................................................................. 173 Principal Property Tax Payers ....................................................................................................................... 174 Debt Capacity
Ratios of Outstanding Debt by Type .............................................................................................................. 176 Ratios of Bonded Debt Outstanding ............................................................................................................. 178 Direct and Overlapping Governmental Activities Debt ................................................................................... 179 Legal Debt Margin Information ....................................................................................................................... 180 Pledged-Revenue Coverage .......................................................................................................................... 182 Demographic and Economic Information
Demographic and Economic Statistics .......................................................................................................... 184 Top Ten Employers ........................................................................................................................................ 185 Operating Information
Full-time Equivalent City Government Employees by Function/Program ...................................................... 186 Operating Indicators by Function/Program .................................................................................................... 188 Capital Asset Statistics by Function/Program ................................................................................................ 190

ACKNOWLEDGEMENTS

The Valley of Opportunfty

INTRODUCTORY SECTION
1 1be Valley of Opportunity

INTRODUCTORY SECTION
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CITY OF EL CAJON
200 Civic Center Way ● El Cajon , California 92020 March 29, 2024
To the Honor
able 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 accountants. 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, 2023.

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 conformity 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, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor 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, 2023, 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 the 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 104,619. The City has experienced population growth of approximately 3.2% 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. Add itional information on these separate entities can be found in Note 1 (page 54) 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 a mild economic slowing in 2022, national GDP grew 2.5% in 2023 (from 1.9% in 2022). While state- level data has not been released for the final quarter of 2023, California’s Gross Domestic Product (GDP) increased at a 4.8% annual rate for the third quarter 2023, as compared to 0.7% for 2022. State unemployment rates have crept up over the year, with the State unemployment rate for December 2023 at 5.1%, compared to 4.1% at the same point last year. For the same period, national unemployment was 3.7%, up from 3.5% in December 2022.

4 The Consumer Price Index (CPI) improved in 2023 for the San Diego region, measuring from January 2024 to January 2023, CPI was up 3.8%, and up 3.1% nationally. The Federal Open Market Committee has moved towards maintaining the federal funds rate after increases implemented to mitigate inflation. The Committee recently stated that “The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”

Housing indicators are mixed, led by privately -owned housing units authorized nationally, which in creased

8.6% from January 2023 to January 2024. For the same period, housing starts de creased 0.7%, while completions are up 2.8%.

Sales Tax Revenues – Regular sales tax revenue increased approximately $630,000 from the prior fiscal year, a 2.0% 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 3.2%, or approximately $424,000 from the previous year.

Property Taxes – Property taxes collected in fiscal year 2022-23 increased 6.0% 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 2022-23 was $11.9 billion; this represents an 8.4% increase from the prior year. For fiscal year 2023-24, total assessed values grew to $12.7 billion, an increase of 6.8% from fiscal year 2022-23.

Economic indicators are mixed, and generally positive, but suggest economic slowing. These indicators, along with presidential election year uncertainty, contribute to a variety of economic outlooks for the coming year. 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 Policy on Fund Balance (No. B -12), the general fund maintains an operating reserve in unassigned fund balance equal to 20% of annual budget ed expenditures of $16.2 million at June 30, 2023. Additionally, the general fund had reserves of $13.0 million for unfunded retirement obligations and $16.2 million for economic uncertainty. The remaining $18.0 million of unassigned fund balance, at June 30, 2023, provides resources for future needs. The city council periodically rebalances these assignments based on anticipated needs, which was done on June 13, 2023. Based on recent analysis and information received to date, general fund revenue and expenditure projections for fiscal year 2023- 24 are conservatively estimated. The City must continue to operate in a fiscally conservative manner and prioritize capital 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 $13.7 million was collected in fiscal year 2022-23 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 $12.2 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 reasons 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, 2022. 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 and 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 assistance 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, 2022
Executive Director/CEO
7 7
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CITY OF EL CAJON
List of Principal Officials
Fiscal Year Ended June 30, 2023

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
Bent Koch – Fire Chief
Tony Shute – Director of Community Development
Marisol Thorn – Director of Human Resources
Sara Diaz – Director of Information Services
Yazmin Arellano – 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, 2023
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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FINANCIAL SECTION
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1be Valley of Opportunity

FINANCIAL SECTION
12 Independent Auditor’s Report
To the Hon
orable 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, 2023, 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 financia l statements presen t fairly, in all material respects, the respective fi nancial 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, 2023, 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 statem ents in accordance with accounting principles generally accepted in the Un ited 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. Ca rn egie Dr . Suite I 00
San Bern ard ino. CA 92408
909 889 087 I T
909 889 536 1 F
ramscpa. net

PARTNERS
Scott W. Manno, CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. We lebir, CPA. MBA. CGMA
Jenny W. Liu, CPA. MST
Gardenya Duran. CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA, MST (Partn er· Emeritus)
Terry P. Shea, CPA (Partner Emeritus)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA, MBA
Evelyn Morentin -Barcena, CPA
Veronica Hernandez , CPA
Laura Arvizu, CPA
John Maldonado, CPA. MSA
Julia Rodriguez Fuentes. CPA , MSA
Demi Hite. CPA
Jeffrey McKennan, CPA
Monica Wysocki, CPA

MEMBERS
American I nsticute of
Certified Public Accountants
PCPS The A/CPA Alliance
for CPA Firms
Governmental Audit
Quality Center
Californi a Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS , ANDERSON , MALOD Y & SC OTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
STA BILITY . 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 audi t conducted in accordance with GAAS and Government Auditing Standards 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 and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstat ement 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 condi tions 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 Un ited States of America r equire 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 managem ent and, although not a part of the basic financial statements, is required by the Governmental Ac counting 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 ge nerally 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 Informat
ion
Our audit was conducted for the purpose of forming opi nions 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 bu dgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedur es 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 themse lves, 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 inclu de 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 th e other information and consider whether a material inconsistency exists between the other information a nd the financial statements, or the other information otherwise appears to be materially misstated. If, ba sed on the work perform ed, we conclude that an uncorrected material misstatement of the other information exists, we ar e 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 29, 2024 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 29, 2024
15 16

CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2023

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, 2023 . We encourage readers to consider the information presented 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, 2023, the City’s total net position was $258.4 million. Of this amount, governmental activities net position accounts for $172 .0 million and business -type ac tivities total $86 .4 million. The City’s overall net position increased by $15.5 million or 6.4 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) an increase in deferred outflows related to pension $ 51.8 million and a slight increase in capital assets $5.4 million. However, (2) total liabilities of the City also increased by $93.2 million or 45.1 percent primarily due to the recognition of pension liability, a change from the prior year’s pension asset, this increase was partially offset by a decrease in deferred inflows of resources $53.9 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 prior fiscal year, which resulted in the net pension asset .

The deferred inflows of resources related to leases contributed to the only deferred inflows in the current fiscal year. (3) T he remainder of the increase comes from the business type activities current year operating activities.

• Total government-wide revenues were $150.0 million, which increased by $14.7 million or 10.9 percent from the prior fiscal year, mostly due to increased investment earnings and charges for services revenues. Total expenses were $135.3 million, an increase of $23.0 million, or 20.5 percent, from last fiscal year. The expense increases were incurred predominantly in public safety.

• At June 30, 2023, the City’s governmental funds reported combined fund balances of $117.8 million, a negligible $0.4 million increase from the prior fiscal year.

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 32 of this report.

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 serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

17 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2023

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 fiscal 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. T he 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 fiduciary funds. The fund financial statements can be found beginning on page 38 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 year. 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, 2023

The City maintains 17 individual governmental 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 14 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 schedules section of this report.

Proprietary funds

The City maintains two different 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 functions. 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 provided 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 parties 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 funds . 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 statements. The notes are presented immediately following the basic financial statements and can be found beginning on page 53 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 100 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 117 of this report. 19 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2023

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, 2023, the City’s net position totaled $258.4 million, which represents an overall increase of $15.5 million from the previous fiscal year. T his in crease was primarily related to business -type activities, with revenues exceeding expenditures for the current fiscal year. The governmental increase is attributable to an increase in capital assets.

The following is the condensed statement of net position for the fiscal years ended June 30, 2023 and 2022.

2023 2022 2023 2022 2023 2022
ASSETS
Current & Other assets $ 185.4 $ 188.2 $ 43. 1 $ 36.5 $ 228.5 $ 224.7 Net Pension Asset - 5.8 - 0. 1 - 5.9 Capital Assets, Net 216.7 212.8 60. 5 59.0 277.2 271.8 Total Assets 402.1 406.8 103. 6 95.6 505.7 502.4

DEFERRED OUTFLOWS
OF RESOURCES 68.5 20.3 4. 3 1.0 72.8 21.3

LIABILITIES
Long-term Liabilities 149.2 151. 1 14.5 15.2 163.7 166.3 Net Pension Liability 92.8 - 5. 6 - 98.4 - Net OPEB Liability 5.6 4. 6 0.5 0.4 6.1 5.0 Other Liabilities 30.9 32. 4 0.9 3.1 31.8 35.5 Total Liabilities 278.5 188.1 21. 5 18.7 300.0 206.8

DEFERRED INFLOWS
OF RESOURCES 20.1 71.3 - 2. 7 20.1 74.0

NET POSITION
Net Investment in Capital Assets 211.2 211.2 51. 8 49.9 263.0 261.1 Restricted 46.1 42. 5 0.6 0.6 46.7 43.1 Unrestricted (85.3) ( 86.0) 34.0 24.7 (51.3) (61.3) Total Net Position $ 172.0 $ 167.7 $ 86. 4 $ 75.2 $ 258.4 $ 242.9 Condensed Statement of Net Position
June 30, 2023 and 2022
(in millions)
Governmental
Activities
Busine ss-type
Activities Total

At June 30, 2023 , t he largest portion of the City’s total net position ($263.0 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 acqui sition, construction, or improvement of those assets.

The City uses these capital assets, which include land, buildings, machinery and equipment, intangible, 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, 2023

An additional portio n of the City’s net position ($46.7 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 legislation, or other legal requirements. T he City’s unrestricted net position, at June 30, 202 3, was a deficit of ($51.3 million), primarily due to the recognition of long- term liabilities ( pension obligation bonds, compensated absences), and liabilities related to Pension and OPEB.

The following is the condensed statement of activities for the fiscal years ended June 30, 2023 and 2022.

2023 2022 2023 2022 2023 2022

REVENUES
Program Revenues:

Charges for Services 15.7$ 14.0$ 32.1$ 29.0$ 47.8$ 43.0$ Operating Grants & Contributions 7.6 7.4 - - 7.6 7.4 Capital Grants & Contributions 4.8 4.5 - - 4.8 4.5 General Revenues:

Property Taxes 24.9 23.5 - - 24.9 23.5 Sales Taxes 46.5 45.5 - - 46.5 45.5 Other Taxes 11.0 10.3 - - 11.0 10.3 Intergovernmental 3.3 4.6 - - 3.3 4.6 Investment Earnings 1.3 (2.8) 0.4 (0.8) 1.7 (3.6) Other 0.2 - 2.2 0.1 2.4 0.1 Transfers 0.5 0.5 (0.5) (0.5) - - Total Revenues and Transfers 115.8 107.5 34.2 27.8 150.0 135.3

EXPENSES
General Government 10.2 10.1 - - 10.2 10.1 Public Safety 67.7 50.1 - - 67.7 50.1 Public Works 16.2 15.7 - - 16.2 15.7 Recreation 10.1 8.0 - - 10.1 8.0 Community Development 4.7 3.9 - - 4.7 3.9 Interest on Long-term Debt 3.4 3.3 - - 3.4 3.3 Wastewater - - 23.0 21.2 23.0 21.2 Total Expenses 112.3 91.1 23.0 21.2 135.3 112.3 Change in Net Position 3.5 16.4 11.2 6.6 14.7 23.0 Net Position, Beginning 167.7 151.3 75.2 68.6 242.9 219.9 Net Position, Restatement 0.8 - - - 0.8 - Net Position, Ending 172.0$ 167.7$ 86.4$ 75.2$ 258.4$ 242.9$ Governmental
Activities
Busine ss-type
Activities
Total
21 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2023

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 .

Charges for Services

13.5%
Operating Grants and
Contributions

6.5%
Capital Grants and
Contributions

4.2%
Property Taxes

21.5%
Sales Taxes

40.2%
Other Taxes

9.5%
Investment Earnings

1.1% Intergovernmental

2.9%
Other/Transfers

0.6%
Governmental Activities
Revenues by Source
June 30, 2023

The City’s revenue sources for governmental activities increased by $8.3 million, or 7.7 percent from the previous fiscal year. Key elements of this change are as follows:

• Sales Taxes were $1.0 million or 2.2 percent higher compared to the prior fiscal year, which is primarily attributable to an increase in sales volume and the cost of items purchased, such as vehicles and construction materials.

• Charges for Services were higher by $1.7 million, or 12.1 percent, primarily from an increase in permits issued.

• Property Taxes were $1.4 million or 6 .0 percent higher compared to the prior fiscal year primarily because of a 8.4 percent increase in the assessed values of residential, commercial, and industrial properties.

• Investment Earnings increased by $4.1 million due to rising interest rates and improved investment performance.

• Intergovernmental decreased by $1.3 million. This decrease is primarily due to less utilization of ARPA funding in the current fiscal year.
22 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2023

Expenses – Over 60 percent of expenses for governmental activities are related to Public Safety. The chart below shows governmental expenses by function.

General Government

9.4%
Public Safety

62.1%
Public Works

14.9%
Recreation

9.3%
Community Development

4.3%
Governmental Activities
Functional Expenses
June 30, 2023

Overall governmental expenses increased by $21.2 million from the prior fiscal year primarily due to pension valuation changes.

• The primary reason for the increase is due to a n increase in recognized long-term pension expense, as the valuation changed from a net pension asset to a net pension liability ($10.8 million). • The City also saw an increase in the required Unfunded Accrued Liability (UAL) payment ($1.4 million), and made an additional contribution ($5.9 million) towards the pension liability in an effort to continue to reduce the City’s outstanding pension obligation.

Business-type Activities

The City’s business-type activity consists solely of the wastewater enterprise fund, which reported a net position of $86.4 million at June 30, 2023. Wastewater total revenues exceeded total expenses resulting in an increase in the overall net position by $11.2 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 ($ 51.9 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, 2023, the wastewater fund’s unrestricted net position was $33.9 million.
23 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2023

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, 2023, the City’s governmental funds reported combined fund balances of $117. 8 million, an increase of $0.4 million from the prior year . Approximately 28.9 percent of this amount ($34.1 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 ($42.6 million), b) committed by Council for a specific purpose ($1.2 million), and c) assigned for particular purposes ($39.9 million).

General Fund
The General Fund is the chief operating fund of the City. At the end of the fiscal year, total fund balance was $63.3 million; of which $34.1 million was unassigned fund balance, which includes an operating reserve of 20% of annual operating expenditures. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance to total General Fund expenditures of $89.5 million. Unassigned fund balance represented 38.1 percent of total General Fund expenditures for the year.

The General Fund’s fund balance increased by $1.2 million from the previous fiscal year. Excess of revenues over expenditures was $10.3 million.

Revenues of the General Fund were $99.8, which was $7.7 million higher than the prior year. As mentioned in the preceding section about the government -wide analysis of revenue sources, investment earnings outperforming prior year is the main driver of this increase. This followed by slight increases in both property and sales taxes.

Total General Fund expenditures were $89 .5 million, an increase of $13.0 million compared to previous fiscal year. Public safety expenditures increased by $7.0 million primarily due to pension costs , which included an additional payment to fur ther reduce the UAL. A majority of the expenditure functions saw increases due to increases to the required UAL payment and the additional UAL contribution.

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, 2023, the LMIHAF had total assets of $18.8 million, of which $11.8 were loans receivable.

The LMIHAF had total revenues of $0.1 million from investment earnings and interest on loans . T otal expenditures were $0. 6 million, which were primarily costs for the rent subsidy at the Lexington Seni or Apartments. During the fiscal year, loan repayments of $0.1 million were received as accounted for on the balance sheet.
24 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2023

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, 2023, total fund balance was $1.1 million, and unearned revenues totaled $2 2.2 million for the American Rescue Plan Act (ARPA) funds that were received before all grant requirements were met by the City. Total expenditures exceeded total revenues by ($0.1) million as most of these grants were expenditure driven to be eligible for reimbursement. This fund received $30.4 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 expenditures for specified purposes. The total ending fund balances for these funds was approximately $36.3 million at June 30, 2023, a negligible decrease ($0.3) from the prior fiscal year.

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 $3.1 million to $32.1 million during the fiscal year. Operating expenses totaled $22.7 million, a $1.5 million increase from previous year, primarily due to an increase in pension expenses recognized in the current year . Nonoperating revenues totaled $2.3 million, primarily due to improved investment performance. As of June 30, 2023, the fund’s net position increased by $11.2 million to $86.4 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 ($1.5 million) and total nonoperating expenses were $0. 2 million. The majority of operating loss is caused by self insurance which is negative due to claim expenses. The total net position of the internal service funds decreased to $11.7 million at June 30, 2023. 25 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2023

GENERAL FUND BUDGETARY HIGHLIGHTS

The General Fund final budget for revenues and other financing sources was $90.1 million and the final budget for expenditures and other financing uses was $98.9 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 $ 4.8 million. This variance was predominantly from actual sales taxes and property tax exceeding projections.

Sales Taxes Property Taxes Other Taxes Licenses &
Permits
Charges for
Services
Other Revenues
& Financing
Sources
Original 45.2 23.5 10.7 1.6 3.3 5.8
Final 45.2 23.5 10.7 1.6 3.3 5.8
Actual 46.6 24.5 11.4 2.5 4.0 5.9
-

5.0 10.0

15.0 20.0

25.0 30.0

35.0 40.0

45.0 50.0
Comparison of General Fund Revenues
Budget vs. Actual
For the fiscal year ended June 30, 2023
(in millions)

CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2023

Actual expenditures and other financing uses were under the final budg et by $5.3 million. This savings is primarily due to Public Works ($2.3 million under budget) and Public Safety ($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 non-personnel expenditures, including repair and maintenance costs. Public Safety savings is predominantly due to vacant positions during the year.

General
Government Public Safety Public Works Parks and
Recreation
Community
Development
Other Financing
Uses
Original 8.8 58.3 8.7 4.5 3.1 8.8
Final 10.0 61.6 9.9 4.7 3.4 9.3
Actual 9.3 60.0 7.6 4.4 3.0 9.3
-

5.0 10.0

15.0 20.0

25.0 30.0

35.0 40.0

45.0 50.0

55.0 60.0

65.0 Comparison of General Fund Expenditures
Budget vs. Actual
For the fiscal year ended June 30, 2023
(in millions)

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 110.

27

II

CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2023

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

At June 30, 2023 , the City reported capital assets with a carrying value of $277.2 million, an increase of $5.4 million from the prior year. The following table provides a summary of the City’s capital assets as of June 30, 2023 and 2022.

2023 2022 2023 2022 2023 2022
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 13.2 4.5 6.7 3.9 19.9 8.4 Use Rights 3.7 1.6 - - 3.7 1.6 Land Improvements 1.2 1.3 - - 1.2 1.3 Buildings & Improvements 72.1 75.1 0.1 0.1 72.2 75.2 Machinery/Equipment 1.5 1.6 0.1 0.1 1.6 1.7 Vehicles 3.2 3.2 1.4 1.1 4.6 4.3 Interest in Mission Gorge Mains - - 4.5 4.7 4.5 4.7 Infrastructure 68.9 72.6 47.6 49.1 116.5 121.7 Total 216.7$ 212.8$ 60.5$ 59.1$ 277.2$ 271.9$ Governmental Activities Business-type Activities Total
City of El Cajon
Capital Assets (net of depreciation)
Comparative Data as of June 30, 2023 and 2022
(in millions)

Some of the major changes to the City’s capital assets include:
• Building improvements for Fire administrative services, completed • Channel/Creek restoration, in progress
• Reconstruction and resurfacing of City thoroughfares
• Bicycle lanes and enhanced safety features along Madison Avenue, in progress • Sewer and Storm drain rehabilitation
• Fire Department ladder truck being built, in progress • Subscription Based Information Technology Assets (SBITA) Use Rights, completed

A number of capital projects were still in progress at fiscal year ended June 30, 2023. These projects added approximately $11.5 million to construction in progress.

Additional information on capital assets is available in Note 4 of the Notes to the Basic Financial Statements beginning on page 71.

28 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2023

Long-Term Debt

The City’s outstanding long- term debt at the end of fiscal years 2023 and 202 2 are presented in the schedule below.

2023 2022 2023 2022 2023 2022
Pension Obligation Bonds 131.5$ 136.8$ 5.3$ 5.5$ 136.8$ 142.3$ Leases Payable 1.3 1.6 - - 1.3 1.6 SBITA Payable 1.8 - - - 1.8 - CA State Water Resources Loan - - 8.7 9.1 8.7 9.1 Total 134.6$ 138.4$ 14.0$ 14.6$ 148.6$ 153.0$ Governmental Activities Business-type Activities Total
City of El Cajon
Long-Term Debt
Comparative Data as of June 30, 2023 and 2022
(in millions)

The City implemented Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription Based Information Technology Arrangements (SBITA), which resulted in the net present value of qualified long-term software increasing long term debt.

Additional information on long- term debt can be found in Note 5 of the Notes to the Basic F inancial Statements beginning on page 72.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

The following factors were considered in preparing the City’s General Fund budget for fiscal year 2023-24:

• General Fund revenues and other financing sources are anticipated to increase by $2.2 million in FY 2023-24 over FY 2022-23 . This represents an overall increase of 2.3 percent. The majority of this increase is due to the property tax growth.

• General Fund expenditures and other financing uses are anticipated to increase by $1.0 million, or 1.1 percent, in FY 2023-24 compared to the revised FY 2022-23 budget. The majority of this increase is the due to public safety departments.

• 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 this purpose. This funding, first appropriated in Fiscal Year 2021, continues as a significant component of the FY 2023-24 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 the 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 $1.7 million in FY 2023-24.

29 CITY OF EL CAJON
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the fiscal year ended June 30, 2023

• 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 2023-24 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 2022-23 with a fund balance of $63.3 . This reserve balance represents approximately 68.7 percent of the City’s FY 2023-24 budgeted General Fund expenditures. The FY 2023-24 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 Governmental Business-type
Activities Activities Total
ASSETS
Cash and Investments (note 2)
Cash and Investments 125,460,928$ 40,698,086$ 166,159,014$ Cash and Investments, Restricted 1,919,769 592,205 2,511,974 Receivables:

Accounts, net 1,625,749 1,515,101 3,140,850 Interest 648,990 214,585 863,575
Intergovernmental 3,310,987 21,158 3,332,145 Leases (note 6) 20,476,784 20,476,784
Taxes 9,018,972 - 9,018,972
Loans (note 3) 22,909,754 - 22,909,754 Prepaid Items 3,807 - 3,807 Capital Assets (note 4):

Non-depreciable 66,098,247 6,838,855 72,937,102 Amortizable or Depreciable 150,594,518 53,672,093 204,266,611 Total assets 402,068,505 103,552,083 505,620,588

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows - Pension (note 7) 66,761,076 4,173,306 70,934,382 Deferred Outflows - OPEB (note 9) 1,732,103 171,767 1,903,870 Total Deferred Outflows of Resources 68,493,179 4,345,073 72,838,252 Combined Assets and Deferred Outflows of Resources 470,561,684 107,897,156 578,458,840

LIABILITIES
Accounts Payable 4,542,690 292,384 4,835,074 Accrued Interest Payable 895,097 131,196 1,026,293 Accrued Liabilities 1,579,183 71,549 1,650,732 Deposits Payable 1,341,805 345,823 1,687,628 Unearned Revenue 22,516,591 29,489 22,546,080 Noncurrent Liabilities:

Due within One Year (note 5) 10,350,717 898,578 11,249,295 Due in more than One Year:

Long-Term Obligations (note 5) 136,553,859 13,636,405 150,190,264 Leases Payable 1,005,020 - 1,005,020 SBITAs Payable 1,257,317 - 1,257,317 Net Pension Liability (note 7) 92,807,346 5,581,650 98,388,996 Net OPEB Liability (note 9) 5,643,605 497,615 6,141,220 Total Liabilities 278,493,230 21,484,689 299,977,919

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Related to Leases 20,079,542 - 20,079,542 Total Deferred Inflows of Resources 20,079,542 - 20,079,542 Combined Liabilities and Deferred Inflows of Resources 298,572,772 21,484,689 320,057,461

NET POSITION
Net Investment in Capital Assets 211,269,970 51,782,706 263,052,676 Restricted for:

Public Safety 378,358 - 378,358 Public Works 11,097,918 - 11,097,918 Community Development 32,674,520 - 32,674,520 Debt Service 2 592,205 592,207 Other 1,923,574 - 1,923,574
Unrestricted (deficit) (85,355,430) 34,037,556 (51,317,874) Total Net Position 171,988,912$ 86,412,467$ 258,401,379$ The accompanying notes are an integral part of these financial statements.

CITY OF EL CAJON
Statement of Net Position
June 30, 2023
32 33
The Valley of Opportunity
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General Government 10,220,044$ 3,081,707$ 16,909$ -$ Public Safety 67,705,101 2,674,312 1,911, 585 - Public Works 16,211,324 1,366,719 2,972, 568 4,813, 145 Recreation 10,153,741 4,938,215 154,493 - Community Development 4,657,913 3,614,626 2,509, 670 - Interest on Long-term Debt 3,362,480 - - - Total Government Activities 112,310,603 15,675,579 7,565,225 4,813,145 Business-type Activity:

Wastewater 23,010,007 32,119,960 - - Total Business-type Activity 23,010,007 32,119,960 - - Total 135,320,610$ 47,795,539$ 7,565,225$ 4,813,145$ General Revenues:

Taxes
Property Taxes
Sales Taxes
Franchise Taxes
Transient Lodging Taxes
Business License Taxes
Intergovernmental (unrestricted)
Investment Earnings
Other
Transfers
Total General Revenues and Transfers
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, 2023
Program Revenues
34 Governmental Business-type
Activities Activities Total
(7,121,428)$ -$ (7,121,428)$ (63,119,204) - (63,119,204) (7,058,892) - (7,058,892) (5,061,033) - (5,061,033) 1,466,383 - 1,466,383 (3,362,480) - (3,362,480) (84,256,654) - (84,256,654) - 9,109,953 9,109,953 - 9,109,953 9,109,953 (84,256,654) 9,109,953 (75,146,701)
24,934,876 - 24,934,876 46,555,665 - 46,555,665 7,114,259 - 7,114,259 3,026,644 - 3,026,644 849,581 - 849,581 3,309,155 - 3,309,155 1,306,325 361,060 1,667,385
179,948 2,229,723 2,409,671
475,018 (475,018) -
87,751,471 2,115,765 89,867,236
3,494,817 11,225,718 14,720,535
167,662,495 75,186,749 242,849,244
831,600 - 831,600 168,494,095 75,186,749 243,680,844
171,988,912$ 86,412,467$ 258,401,379$
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 all 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. The 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 transferred 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) 54,335,897$ 6,999,940$ 22, 613,462$ with Fiscal Agent 1,848,717 - - Receivables:

Accounts 1,625,749 - - Interest 513,982 34,741 1, 853 Intergovernmental 308,973 - 203 ,295 Leases 20,000,757 - - Taxes 8,973,392 - - Loans (note 3) - 11,753,611 596 ,585 Prepaid Items 3,807 - - Due from Other Funds (note 12) 317,397 - - Total Assets 87,928,671$ 18,788,292$ 23,415,195$

LIABILITIES
Accounts Payable 1,838,976$ 66,285$ 1 1,513$ Accrued Liabilities 1,524,444 - - Deposits Payable 1,332,505 - 424 Due to Other Funds (note 12) - - - Unearned Revenue 251,615 - 22, 264,976 Total Liabilities 4,947,540 66,285 22,276,913

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 115,674 1,635,716 15, 189 Related to Leases 19,608,192 - - Total Deferred Inflows of Resources 19,723,866 1,635,716 15,189 FUND BALANCES (DEFICITS) (note 13)
Nonspendable 3,807 - - Restricted 1,848,717 17,086,291 1, 123,093 Committed - - - Assigned 27,312,984 - - Unassigned 34,091,757 - - Total Fund Balance 63,257,265 17,086,291 1,123,093 Total Liabilities, Deferred Inflows of
Resources and Fund Balance 87,928,671$ 18,788,292$ 23,415,195$ The accompanying notes are an integral part of these financial statements.

Special Revenue

CITY OF EL CAJON
Balance Sheet
Governmental Funds
June 30, 2023
38 Total Total
Nonmajor Governmental
Governmental Funds
25,765,706$ 109,715,005$
2 1,848,719
- 1,625,749
73,881 624,457
2,798,719 3,310,987
476,027 20,476,784
45,580 9,018,972
10,559,558 22,909,754
- 3,807
- 317,397
39,719,473$ 169,851,631$
2,456,831$ 4,373,605$
24,163 1,548,607
- 1,332,929
317,397 317,397
- 22,516,591
2,798,391 30,089,129
142,537 1,909,116
471,350 20,079,542
613,887 21,988,658
- 3,807
22,526,474 42,584,575
1,181,443 1,181,443
12,599,278 39,912,262
- 34,091,757
36,307,195 117,773,844
39,719,473$ 169,851,631$

39 40
The Valley of Opportunity
Fund Balance of Governmental Funds (page 39) 117,773,844$ 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 403,571,544
Accumulated Amortization or Depreciation (192,683,913)
Other Post Employment Benefits (OPEB) related adjustments that are not financial resources and, therefore, not reported in the governmental funds.

Deferred Outflows of Resources 1,667,398
Net OPEB Liability (5,423,825)
Accrued interest on leases receivable that is not available to pay for current-period expenditures and, therefore, are not recognized in the governmental funds 24,533 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 (831,434)
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 (8,726,322)
Leases Payable (1,295,213)
Pension Obligation Bonds Payable (127,961,000)
Pension related adjustments that are not financial resources and, therefore, not reported in the governmental funds.

Deferred Outflows of Resources 64,892,316
Net Pension Liability (92,582,503)
Deferred revenues from receivables and deferred interest on receivables that are not available to pay for current-period expenditures and, therefore, are not recognized in the governmental funds Deferred Inflows of Resources 1,909,116
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 services provided to governmental activities. 11,654,371
Net Position of Governmental Activities (page 32) 171,988,912$ The accompanying notes are an integral part of these financial statements.

June 30, 2023

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 82,481,025$ -$ -$ Intergovernmental 1,505,048 - 4,107,253 Licenses and Permits 2,458,242 - - Fines and Forfeitures 509,475 - - Special Assessments 367,380 - - Charges for Services 4,452,396 17,340 - Use of Money and Property 7,623,248 106,381 4,575 Other 401,478 545 (2,653) Total Revenues 99,798,292 124,266 4,109,175

EXPENDITURES
Current
General Government 9,338,185 - 134,841 Public Safety 59,943,064 - 392,668 Public Works 7,643,653 - 56,795 Recreation 9,576,221 - 141,095 Community Development 2,991,975 632,516 64,121 Capital Outlay - - 3,806,469 Debt Service
Interest 8,313 - - Principal - - - Total Expenditures 89,501,411 632,516 4,595,989 Excess (deficiency) of Revenues
Over (under) Expenditures
10,296,881 (508,250) (486,814) OTHER FINANCING SOURCES (USES):

Transfers In (note 12) 161,316 - 455,143 Transfers Out (note 12) (9,249,006) - - Total Other Financing Sources (uses) (9,087,690) - 455,143 Net Change in Fund Balance 1,209,191 (508,250) (31,671) Fund Balance, Beginning 62,048,074 17,594,541 1,154,764 Fund Balances, Ending 63,257,265$ 17,086,291$ 1,123,093$ 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, 2023
42 Total Total
Nonmajor Governmental
Governmental Funds
807,355$ 83,288,380$
9,719,640 15,331,941
- 2,458,242
78,256 587,731
- 367,380
312,290 4,782,026
509,053 8,243,257
100,271 499,641
11,526,865 115,558,598
2,850 9,475,876
72,867 60,408,599
3,300,377 11,000,825
- 9,717,316
906,480 4,595,092
8,039,219 11,845,688
3,366,849 3,375,162
5,400,183 5,400,183
21,088,825 115,818,741
(9,561,960) (260,143)
9,622,874 10,239,333
(310,328) (9,559,334)
9,312,546 679,999
(249,414) 419,856
36,556,609 117,353,988
36,307,195$ 117,773,844$

43 44
The Valley of Opportunity
Net Changes in Fund Balance - Total Governmental Funds (page 43) 419,856$ 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.

Capital Outlay 10,328,224
Amortization or Depreciation Expense (8,749,194)
Disposition of Capital Assets (9,503)
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 5,192,000
Payments on lease obligations 283,502
Net difference in the accrued interest payable on long term debt. 12,682 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. (450,366)
Net Change in Pension Plan Expense (2,360,452)
Net Change in OPEB Expense 225,412
Interest accrued on leases, long-term loans receivable and earned revenue that is not available in the current period and, therefore, is not included in the governmental funds. 266,115 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 services provided to governmental funds. The net expense of the internal service funds is reported with governmental activities. (1,663,459)

Changes in Net Position of Governmental Activities (page 35) 3,494,817$ 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, 2023
45 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 disposal 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, benefits, insurance, and other administrative services. The Internal Service Funds primarily serve governmental activities of the City.
46 Business-type Activity
Enterprise Fund Governmental Activities
Wastewater Internal Service Funds
ASSETS
Current Assets:

Cash and Investments (note 2)
Cash and Investments 40,698,086$ 15,745,923$ Cash and Investments, Restricted 592,205 71,050 Receivables:

Accounts, Net of Allowance for Bad Debt 1,515,101 - Interest 214,585 -
Intergovernmental 21,158 -
Total Current Assets 43,041,135 15,816,973 Noncurrent Assets:

Capital Assets, Non-depreciable (note 4):

Land 82,300 -
Construction in Progress 6,756,555 714,945 Capital Assets, Depreciable, Net (note 4):

Intangible Right-to-Use Assets - 2,440,115 Buildings and Improvements 121,849 - Machinery and Equipment 50,645 236,282 Vehicles 1,419,364 2,413,792
Interest in Mission Gorge Mains 4,501,938 - Infrastructure 47,578,297 -
Total Noncurrent Assets 60,510,948 5,805,134 Total Assets 103,552,083 21,622,107

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources related to Pensions (note 7) 4,173,306 1,868,760 Deferred Outflows of Resources related to OPEB (note 9) 171,767 64,705 Total Deferred Outflows of Resources 4,345,073 1,933,465 Total Assets and Deferred Outflows of Resources 107,897,156 23,555,572

LIABILITIES
Current Liabilities:

Accounts Payable 292,384 169,085 Accrued Interest Payable 131,196 63,663 Accrued Liabilities 71,549 30,576 Claims payable (note 10) - 800,000 Deposits Payable 345,823 8,876 Unearned Revenues 29,489 -
Compensated Absences (note 5) 230,579 85,001 California State Water Resources Control Board (note 5) 451,999 - Subscriptions Payable (note 5) - 533,007 Bonds Payable - Current (note 5) 216,000 144,000 Total Current Liabilities 1,769,019 1,834,208 Noncurrent Liabilities:

Claims Payable (note 10) - 4,876,875 Compensated Absences (note 5) 339,528 106,578 California State Water Resources Control Board (note 5) 8,224,477 - Subscriptions Payable (note 5) - 1,257,317 Bonds Payable (note 5) 5,072,400 3,381,600 Net Pension Liability (note 7) 5,581,650 224,843 Net OPEB Liability (note 9) 497,615 219,780 Total Noncurrent Liabilities 19,715,670 10,066,993 Total Liabilities 21,484,689 11,901,201

NET POSITION
Net Investment in Capital Assets 51,782,706 4,014,810 Restricted for Debt Service 592,205 - Restricted for Other - 71,050 Unrestricted 34,037,556 7,568,511
Total Net Position 86,412,467$ 11,654,371$ The accompanying notes are an integral part of these financial statements.

CITY OF EL CAJON
Statement of Net Position
Proprietary Funds
June 30, 2023
47 Business-type Activity
Enterprise Fund Governmental Activities
Wastewater Internal Service Funds
Operating Revenues
Charges for Services 32,004,914$ 11,404,491$ Fines 115,046 -
Total Operating Revenues 32,119,960 11,404,491 Operating Expenses
Salaries and Benefits 4,592,027 2,830,572 Materials, Services, and Supplies 16,256,482 4,624,999 Insurance Claims/Premiums - 3,980,573 Depreciation 1,880,659 1,369,480
Total Operating Expenses 22,729,168 12,805,624 Operating Income (Loss) 9,390,792 (1,401,133) Nonoperating Revenues (Expenses):

Investment Earnings 361,060 -
Gain on Disposal of Assets - 360 Other Revenues 2,229,723 77,331
Interest Expense and Fiscal Charges (280,839) (135,035) Total Nonoperating Revenues (Expenses) 2,309,944 (57,344) Income (Loss) before Operating Transfers 11,700,736 (1,458,477) Operating Transfers:

Transfers Out (475,018) (204,981) Total Operating Transfers (475,018) (204,981) Change in Net Position 11,225,718 (1,663,458) Net Position, Beginning 75,186,749 12,486,229 Prior period adjustment (note 16) - 831,600 Net position, beginning as restated 75,186,749 13,317,829 Net Position, Ending 86,412,467$ 11,654,371$ 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, 2023
48 Business-type Activity Governmental
Enterprise Fund Activities
Wastewater Internal Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Charges to Other Funds 31,900,293$ 11,404,491$ Payments to Suppliers (18,449,765) (7,810,748) Payments to employees (4,970,711) (1,550,386) Net Cash provided by Operating Activities 8,479,817 2,043,357

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Other Revenue 2,229,723 77,331
Transfers to Other Funds (475,018) (204,981) Repayment of Long-term Borrowing (Principal) (214,800) (143,200) Repayment of Long-term Borrowing (Interest) (138,149) (92,099) Net Cash Provided by (used for) Noncapital Financing Activities 1,401,756 (362,949)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Payment of SBITA Borrowing (Principal) - (573,338) Payment of SBITA Borrowing (Interest) - (1,919) Proceeds from Sale of Vehicles and Equipment - 360 Acquisition of Infrastructure, Vehicles and Equipment (3,431,450) (1,334,181) Repayment of Long-term Borrowing (Principal) (442,702) - Repayment of Long-term Borrowing (Interest) (149,503) - Net Cash (used for) Capital and Related Financing Activities (4,023,655) (1,909,078)

CASH FLOWS FROM INVESTING ACTIVITIES
Net Investment Income 253,931 - Net Cash (used for) Investing Activities 253,931 - Net Increase (decrease) in Cash and Cash Equivalents 6,111,849 (228,670) Cash and Cash Equivalents, Beginning 35,178,442 16,045,643 Cash and Cash Equivalents, Ending 41,290,291$ 15,816,973$

Reconciliation of Cash and Cash Equivalents at Year-end to the Statement of Net Position:

Cash and Investments 40,698,086$ 15,745,923$ Cash and Investments, Restricted 592,205 71,050 Total Cash and Cash Equivalents at Year-end 41,290,291$ 15,816,973$ Operating Income (Loss) 9,390,792$ (1,401,133)$ Adjustments to reconcile Operating Income (loss) to Net Cash provided by Operating Activities:

Depreciation Expense 1,880,659 1,369,480 Pension Related Adjustments (274,970) (123,129) OPEB Related Adjustments (23,221) (8,746) Changes in Assets and Liabilities:

Decrease in Accounts Receivable, Net of Allowance for Bad Debt (256,295) - Decrease in Intergovernmental Receivable 22,153 - Decrease in Prepaid Expenses - 40,171 (Decrease) in Accounts Payable (2,193,284) (85,603) (Decrease) in Accrued Liabilities (80,606) (26,630) Increase in Deposits Payable 14,476 8,654 Increase in Claims Payable - 1,401,875 Increase in Compensated Absences Payable 113 36,818 Increase in Capital Assets (Prior Period Adjustment) - 831,600 Total Adjustments (910,975) 3,444,490 Net Cash provided by Operating Activities 8,479,817$ 2,043,357$ Noncash Investing, Capital, and Financing Activities:

Change in Fair Value of Investments (250,712)$ -$ Capital Asset (Infrastructure) included in Accounts Payable 51,765 - 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, 2023
49 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 capacity for other agencies/organizations, and therefore cannot be used to support the City's programs.

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

Private Purpose Trust Fund
This fund is used to report resources held and administered under 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 for the Successor Agency to the Former El Cajon Redevelopment Agency which accounts for the activities related to the dissolution of the former redevelopment agency. 50 Successor
Agency to the
Former El Cajon
Custodial Redevelopment
Funds Agency
ASSETS
Cash and Investments 6,093,262$ 3,379,442$
Cash and Investments with Fiscal Agent - 1,348,324 Receivables:

Accounts 128,112 -
Intergovernmental 278,633 -
Interest 31,142 6,414
Loans - 1,449,376
Prepaid Items - 183,781
Total Assets 6,531,149 6,367,337

DEFERRED OUTFLOW OF RESOURCES
Deferred Amount on Refunding - 685,760 Total Deferred Outflow of Resources - 685,760 Total Assets and Deferred Outflows of Resources 6,531,149 7,053,097

LIABILITIES
Accounts Payable and Other Liabilities 82,225 10,363 Interest Payable - 598,318
Due to Other Agencies 5,784 -
Long-term Debt - 46,801,879
Total Liabilities 88,009 47,410,560

NET POSITION (DEFICIT)
Restricted for:

Other Agencies 6,443,140 -
Unrestricted (deficit) - (40,357,463) Total Net Position 6,443,140$ (40,357,463)$
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, 2023
Private Purpose
Trust Fund
51 Successor
Agency to the
Former El Cajon
Custodial Redevelopment
Funds Agency

ADDITIONS
Contributions
Other Agencies 4,006,778$ 34,154$
Participants 151,266 -
Property Taxes - 4,331,209
Investment Earnings 62,624 56,629
Assessment Collections for Other Agencies 473,198 - Interest on Loan - 45,222
Miscellaneous 64,941 -
Total Additions 4,758,807 4,467,214

DEDUCTIONS
Administrative Expenses - 37,867 Payments of Assessments to Other Agencies 486,327 - Program/Project Expenses 4,060,550 215,507
Interest and Fiscal Agent Expenses - 2,326,177 Total Deductions 4,546,877 2,579,551
Net Change in Fiduciary Net Position 211,930 1,887,663 Net Position (deficit), Beginning 6,231,210 (42,245,126) Net Position (deficit), Ending 6,443,140$ (40,357,463)$ 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, 2023
52 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

Notes Page

Note 1. Summary of Significant Accounting Policies ............................................................................................. 54 Reporting entity…. .............................................................................................................................. 54 Basic financial statements and presentation ...................................................................................... 55 Measurement focus and basis of accounting ..................................................................................... 56 Budgetary information ......................................................................................................................... 57 Revenues and expenditures/expenses ............................................................................................... 58 Cash, cash equivalents and investments............................................................................................ 59 Receivables…. .................................................................................................................................... 59 Prepaid items ...................................................................................................................................... 60 Capital assets ...................................................................................................................................... 60 Deferred outflows or inflows of resources ........................................................................................... 61 Pension………... ................................................................................................................................. 61 Other post-employment benefits (OPEB) ........................................................................................... 61 Fund balance policies and flow assumption ....................................................................................... 62 Net position flow assumption .............................................................................................................. 63 Use of estimates ................................................................................................................................. 63 Effect of new accounting standards .................................................................................................... 63

Note 2. Cash and Investments ............................................................................................................................... 64 Note 3. Loans Receivable ...................................................................................................................................... 70 Note 4. Capital Assets ……. ................................................................................................................................... 71 Note 5. Long-Term Liabilities ................................................................................................................................. 72 Note 6. Leases Receivable ..................................................................................................................................... 77 Note 7. Defined Benefit Pension Plans .................................................................................................................. 77 Note 8. Defined Contribution Pension Plan............................................................................................................ 84 Note 9. Other Post-Employment Benefits .............................................................................................................. 85 Note 10. Risk Management .................................................................................................................................... 90 Note 11. Commitments and Contingencies ............................................................................................................ 92 N
ote 12. Interfund Balances and Transfers ............................................................................................................ 93 Note 13 . Fund Balances and Deficits ..................................................................................................................... 94 Note 14 . Joint Ventures….. .................................................................................................................................... 95 Note 15. Tax Abatements ...................................................................................................................................... 96 Note 16. Prior Period Adjustments ....................................................................................................................... 97 53 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 on 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 units 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 tasked 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.

54 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 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/expenses . 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 for 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. 55 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 f und 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 eliminated leaving only the net amount 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 reported 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.

56 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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. Revenues 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 statements, 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 individually, 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, budgetary comparison schedules are not presented because comparisons of budgetary amounts to actual revenues and expenditures are 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.

The City also budgets programmatically when necessary, this allows the budget for a particular program or project to be carried forward until the activity is completes or amended by the City Council. This multi-year budget functionality is applies to the City’s grant management functions, capital improvement program, fleet replacement program, and the American Rescue Plan Act funding programs.

57 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 necessary 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 110.

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 balances is accrued and reported as compensated absences in the government-wide and proprietary fund financial statements.

58 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 goods 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 revenue 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. C hanges in fair value that occur during a fiscal year are recognized as investment earnings reported for 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 continue 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, and 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 the 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.

59 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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. Intangible assets (right-to-use lease and subscription information based technology agreement, SBITA, assets) are recorded at net present value and amortized over the duration of the agreements.

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 Sewer Mains 60 years

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. Improvements are 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.

60 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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, other postemployment benefits (OPEB), and subscription based information technology assets (SBITAs).

In addition to liabilities, the statement of net position 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 will not be recognized as resources or revenue until then. The City reports two types of deferred inflows of resources. The first 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 has 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, OPEB, and SBITA related items.

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, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022

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, 2022
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
61 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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 that 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 have spending constraints 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 government.

• Committed - These amounts are available to 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. 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. A portion of the unassigned fund balance represents the Council designated operating reserve equal to 20% of annual expenditures

In the Capital Projects Funds, assigned fund balance represents the intent to utilize the portion of fund balance for the purposes that these funds were established. 62 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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 financial 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.

Effect of New Accounting Standard(s)

The City implemented the requirements of the following accounting standards in fiscal year ending June 30, 2023:

In September 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The primary objective of this statement is to provide reporting consistency as it defines conduit debt and eliminates the option for issuers to report conduit debt obligations as the entities’ own liabilities. The City has no conduit debt obligations.

In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships (PPPs) and Availability Payment Arrangements (APAs). This Statement enhances the usefulness of a government ’s financial statements by requiring governments to report assets and liabilities related to PPPs and APAs consistently and disclose information about PPP and APA transactions. The required disclosures allow users to understand the value and important aspects of a government ’s PPPs /APAs and evaluate a government’s future obligations and assets resulting from these arrangements . The City has no arrangements that meet the definitions of a PPP or APA.

In May 2020, GASB issued Statement No. 96, Subscription Based Technology Arrangements , which defines a Subscription Based Technology Arrangement (SBITA) and establishes the model for SBITA accounting based on the principle that SBITAs are financings of the right-to-use underlying software assets.

The primary objective of this statement is to enhance the relevance and consistency of information about governments’ ongoing subscription activities. Following the requirement of this pronouncement, the City has recognized subscription liabilities and intangible right-to-use assets.

In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for m aking decisions or assessing accountability. Although this statement is effective for fiscal year 2024, the City has early implemented reflected in Note 16 of the financial statements.

63 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 2. CASH AND INVESTMENTS

Cash and investments as of June 30, 2023, totaled $179,492,016, and are reported in the accompanying financial statements as follows:

Cash and Cash and Tot al
Cash and Inve stme nts, Investments with Cash and
Gover
nment-wide Statement of Net Position Investments Restricted Fiscal Agent Investments Governmental Activities 125,460,928$ 71,050$ 1,848,719$ 127,380,697$ Business-type Activities 40,698,086 592,205 - 41,290,291 Total Statement of Net Position 166,159,014 663,255 1,848,719 168,670,988 Fiduciary Funds Statement of Net Position 9,472,704 - 1,348,324 10,821,028 Total Cash and Investments 175,631,718$ 663,255$ 3,197,043$ 179,492,016$

Cash and investments at June 30, 2023, consisted of the following:

Cash on Hand 4,705$
Deposits with Financial Institutions 20,273,465
Investments 159,213,846
Total Cash and Investments 179,492,016$
64 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 t he 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 amortized cost of that portfolio). As of June 30, 202 3, the fair value of the City’s LAIF investments was $39,642,008. The fair value was determined by multiplying the City’s LAIF balance by the fair value factor of 0.984828499 as determined by LAIF. 65 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 withdrawals. 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 reserve 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 greater 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 short term and long-term investments and by timing cash flows from maturities. Therefore, 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 table on the following page that shows the distribution of the City’s investment by maturity. 66 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 24,909,570$ 9,031,018$ 9,996,911$ 5,881,641$ -$ US Treasury Bonds 813,633 - - 813,633 - US Treasury Notes 73,034,791 20,794,401 12,612,077 39,628,313 Commercial Paper 450,000 450,000 - - - Corporate Notes 17,635,733 2,422,516 976,734 14,236,483 - Foreign Issues 1,083,472 - 1,083,472 - - Municipal Debt 160,000 160,000 - - - CAMP Cash Pool 136,315 136,315 - - - LAIF 39,642,008 39,642,008 - - - Held by Fiscal Agent:

Invesco STIT Treasury Private 1,348,324 1,348,324 - - - Total 159,213,846$ 73,984,582$ 24,669,194$ 60,560,070$ -$ 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 Ca lifornia 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 24,909,570$ N/A AA+ Aaa -$
US Treasury Bonds 813,633 N/A N/A Aaa -
US Treasury Notes 73,034,791 N/A N/A Aaa -
Commercial Paper 450,000 N/A N/A N/A 450,000
Corporate Notes 17,635,733 "A category" A-/A/A+/AA-/AA/AA+/AAA A2/A1/Aa3/Aa2/Aaa - Foreign Issues 1,083,472 AA AAA Aaa -
Municipal Debt 160,000 N/A N/A N/A 160,000
CAMP Cash Pool 136,315 N/A Not Rated Not Rated 136,315 LAIF 39,642,008 N/A Not Rated Not Rated 39,642,008
Held by Fiscal Agent:

Invesco STIT Treasury Private 1,348,324 N/A N/A N/ A 1,348,324 Total 159,213,846$
67 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 13,696,354$ Total 13,696,354$

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 credit 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 another par ty.

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, 2023, 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. 68 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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, C orporate 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 pr ices. 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, 2023:

Total Level 1 Level 2 Level 3
Investments by Fair Value Level
US Agency Securities 24,909,570$ -$ 24,909,570$ -$ US Treasury Bonds 813,633 813,633 - - US Treasury Notes 73,034,791 73,034,791
Commercial Paper 450,000 - 450,000 - Corporate Notes 17,635,733 - 17,635,733 - Foreign Issues 1,083,472 - 1,083,472 - Municipal Debt 160,000 - 160,000 - Total Investments by Fair Value Level 118,087,199 73,848,424$ 44,238,775$ -$ Investments not subject to GASB Statement No. 72
CAMP Cash Pool 136,315
Invesco STIT Treasury Private 1,348,324
LAIF 39,642,008
Total Investments not subject to GASB
Statement No. 72 41,126,647
Total Investments 159,213,846$

69 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 3. LOANS RECEIVABLE

Governmental Activities:

Low & Moderate
Income Housing
Asset (LMIHAF) HOME CDBG
Federal,State
and Local
Grants Total
First Time Homebuyer 4,035,511$ 7,415,552$ -$ 596,585$ 12,047,648$ Mobile Home Rehabilitation - 54,410 174,484 - 228,894 Single Family Rehabilitation 76,134 1,509,750 78,622 - 1,664,506 Multi-Family Projects
Chambers Senior Residences 5,923,035 - - - 5,923,035 Lexington Avenue Senior Apartment 221,982 - - - 221,982 South Sunshine Associates LP 1,496,949 1,326,740 - - 2,823,689 11,753,611$ 10,306,452$ 253,106$ 596,585$ 22,909,754$

The City and Housing Authority make various acquisition, construction, and rehabilitation loans to developers and low and moderate- income households. The loans 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, the former redevelopment a gency 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, 2023, the balance outstanding includes $4,500,000 of principal and $1,423,035 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 the 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. The new agreement includes an interest rate of 3%. As of June 30, 2023, the outstanding balance includes $206,250 of principal and $15,732 of accrued interest.

South Sunshine Associates, LP - T he 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, 2023 , the outstanding balance of the HOME loan includes total principal of $1,200,000 and $126,740 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, 2023 , the balance outstanding includes a loan disbursement of $ 1,300,000 and accrued interest of $196,949.
70 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 4. CAPITAL ASSETS

Capital asset activity for the fiscal year ended June 30, 2023 is as follows:

Beginning Ending
Balance Additions Deletions Balance
Governmental Activities
Capital Assets, Non-Depreciable:

Land 21,731,601$ -$ -$ 21,731,601$ Rights of way 31,190,652 - - 31,190,652 Construction in Progress 4,471,929 9,248,292 (544,227) 13,175,994 Total Assets, Non-Depreciable: 57,394,182 9,248,292 (544,227) 66,098,247 Capital Assets, Amortizable or Depreciable:

Use Rights 2,797,233 3,195,262 - 5,992,495 Land Improvements 9,267,741 - - 9,267,741 Buildings and Improvements 114,375,357 538,264 - 114,913,621 Equipment 7,129,102 244,321 (53,324) 7,320,099 Vehicles 13,047,051 560,195 (59,321) 13,547,925 Infrastructure 201,685,347 783,956 - 202,469,303 Total Assets, Amortizable or Depreciable 348,301,831 5,321,998 (112,645) 353,511,184 Less Accumulated Amortization or Depreciation for:

Use Rights (1,187,195) (1,056,341) - (2,243,536) Land Improvements (7,934,372) (152,498) - (8,086,870) Buildings and Improvements (39,326,429) (3,528,580) - (42,855,009) Equipment (5,528,040) (349,329) 53,324 (5,824,045) Vehicles (9,848,857) (582,371) 49,818 (10,381,410) Infrastructure (129,076,241) (4,449,555) - (133,525,796) Total Accumulated Amortization or Depreciation (192,901,134) (10,118,674) 103,142 (202,916,666) Total Capital Assets, Amortizable or Depreciable, Net 155,400,697 (4,796,676) (9,503) 150,594,518 Governmental Activity Capital Assets, Net 212,794,879$ 4,451,616$ (553,730)$ 216,692,765$ Beginning Ending
Balance Additions Deletions Balance
Business-type Activities
Capital Assets, Non-Depreciable:

Land 82,300$ -$ -$ 82,300$ Construction in Progress 3,923,540 2,953,532 (120,517) 6,756,555 Total Assets, Non-Depreciable: 4,005,840 2,953,532 (120,517) 6,838,855 Capital Assets, Depreciable
Buildings and Improvements 427,527 - - 427,527 Equipment 133,333 25,000 - 158,333 Vehicles 2,294,193 522,638 - 2,816,831 Interest in Mission Gorge Mains 8,805,762 - - 8,805,762 Infrastructure 102,401,540 - - 102,401,540 Total Assets, Depreciable 114,062,355 547,638 - 114,609,993 Less Accumulated Depreciation for:

Buildings and Improvements (297,509) (8,169) - (305,678) Equipment (102,690) (4,997) - (107,687) Vehicles (1,236,343) (161,125) - (1,397,468) Interest in Mission Gorge Mains (4,157,061) (146,763) - (4,303,824) Infrastructure (53,263,638) (1,559,605) - (54,823,243) Total Accumulated Depreciation (59,057,241) (1,880,659) - (60,937,900) Total Capital Assets, Depreciable, Net 55,005,114 (1,333,021) - 53,672,093 Business-type Activity Capital Assets, Net 59,010,954$ 1,620,511$ (120,517)$ 60,510,948$

71 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 1,367,742$
Public Safety 3,029,377
Public Works 4,688,087
Recreation 637,167
Community Development 396,301
Total Depreciation Expense - Governmental Activities 10,118,674$ Busine ss-type Activitie s:

Wastewater 1,880,659$
Total Depreciation Expense - Business-type Activities 1,880,659$

NOTE 5. LONG-TERM LIABILITIES

Summary of the changes in long-term liabilities for the fiscal year ended June 30, 2023, is as follows:

Beginning Ending Due Wi thin
Balance Additions Deletions Balance One Year
Governmental Activities:

Compensated Absences 8,430,717$ 2,461,540$ (1,974,356)$ 8,917,901$ 3,358,517$ Claims Payable (note 10) 4,275,000 2,200,004 (798,129) 5,676,875 800,000 Leases Payable 1,578,715 - (283,502) 1,295,213 290,193 Pension Obligation Bonds 136,821,800 - (5,335,200) 131,486,600 5,369,000 Subscriptions Payable - 2,363,663 (573,339) 1,790,324 533,007 Total Governmental Activities 151,106,232$ 7,025,207$ (8,964,526)$ 149,166,913$ 10,350,717$ Busine ss-type Activitie s:

Notes from Direct Borrowings
CA State Water Resources 9,119,178$ -$ (442,702)$ 8,676,476$ 451,999$ Other Long-Term Liabilities
Compensated Absences 569,994 133,322 (133,209) 570,107 230,579 Pension Obligation Bonds 5,503,200 - (214,800) 5,288,400 216,000 Total Business-type Activities 15,192,372$ 133,322$ (790,711)$ 14,534,983$ 898,578$

72 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 5. LONG-TERM LIABILITIES (continued)

Pension Obligation Bonds $ 136,775,000

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 obligation 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 Pension Obligation Bonds outstanding as of June 30, 2023 is provided below.

Year ending
June 30, Principal Interest Principal Interest Principal Interest 2024 5,369,000$ 3,400,099$ 216,000$ 136,755$ 5,585,000$ 3,536,854$ 2025 5,417,200 3,350,329 217,800 134,752 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 3,208,153 223,800 129,038 5,785,000 3,337,191 2028 5,652,600 3,113,836 227,400 125,242 5,880,000 3,239,078 2029-2033 30,089,800 13,743,577 1,210,200 552,778 31,300,000 14,296,355 2034-2038 34,089,000 9,746,447 1,371,000 392,039 35,460,000 10,138,486 2039-2043 39,828,000 4,008,312 1,602,000 161,219 41,430,000 4,169,531 Total 131,486,600$ 43,857,213$ 5,288,400$ 1,764,008$ 136,775,000$ 45,621,221$ Governmental Activities Business-type Activities Total

Leases Payable

County of San Diego $ 660,053

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 1998 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.
73 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 5. LONG-TERM LIABILITIES (continued)

Leases Payable (continued)

The lease asset, Use Right (Note 4), is amortized on a straight-line basis over 10 years. At June 30, 2023, the net book value of the asset is $665,580, which consists of $2,003,895 initial cost, less accumulated amortization of $1,388,315.

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
2024 213,992$ 18,415$ 232,407$
2025 219,962 12,445 232,407
2026 226,099 6,308 232,407
Total 660,053$ 37,168$ 697,221$

Stryker Sales, LLC $ 635,160

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 lease asset, Use Right (Note 4), is amortized on a straight-line basis over 10 years. At June 30, 2023, the net book value of the asset is $643,265 , which consists of $793,338 initial cost, less accumulated amortization of $150,073.

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
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 79,830 3,802 83,632
2029-2032 245,136 5,758 250,894
Total 635,160$ 33,894$ 669,054$

74 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 5. LONG-TERM LIABILITIES (continued)

Subscription Based Information Technology Agreements (SBITA) payable $ 1,790,324

The City has various SBITAs for non- cancellable software subscriptions. As of June 30, 2023, the Governmental-Type Activities' SBITAs payable was comprised of several right to use software components at interest rates varying from 1.71% to 2.66% with remaining non- cancellable terms ranging from 1 to 5 years.

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

Principal Interest Total
2024 533,007$ 42,751$ 575,758$
2025 480,452 29,910 510,362
2026 492,869 18,045 510,914
2027 140,545 5,873 146,418
2028 143,451 2,967 83,632
Total 1,790,324$ 99,546$ 1,827,084$
Governmental ActivitiesYear ending
June 30,

Direct Borrowing

California State Water Resources Control Board $ 8,676,476

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 the 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 agrees 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 wastewater enterprise fund, and any reserve fund, towards this obligation until the note is paid in full. 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, 2023, pledged net revenues and debt service are $16,530,473 and $592,205, respectively.
75 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 5. LONG-TERM LIABILITIES (continued)

Direct Borrowing (continued)

Reserve fund - The CSWRCB also required that the City maintains 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 23, the City has restricted cash and investments in the amount of $592,205 for this purpose.

Debt service requirement - The debt service requirement provided by CSWRCB, and presented below, is based on the $6,676,476 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
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 491,180 101,025 592,205
2029-2033 2,615,019 346,004 2,961,023
2034-2036 1,704,528 72,086 1,776,614
Total 6,676,476$ 1,022,186$ 7,698,662$

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, 2023, are as follows:

Major Governmental Fund
General Fund 8,583,405$
Nonmajor Governmental Funds
Gas Tax Special Revenue Fund 142,565
Transit Special Revenue Fund 352
Internal Service Funds 191,579
Total Governmental Activities 8,917,901$
Wastewater Enterprise Fund 570,107$
Total Business-type Activities 570,107$
Governmental Activities:

Busine ss-type Activitie s:

76 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 6. LEASES RECEIVABLE

The City is a lessor in various non-cancellable leases of land, buildings, and office space. As of June 30, 2023, the City’s leases receivable balance was $20,476,784 and the deferred inflow of resources associated with these leases that will be recognized as revenue over the term of the leases was $20,079,542. As of June 30, 2023, the City’s leases receivable balance for Governmental Activities was comprised of the following:

Governmental Activities
Land leases with rents received totaling $1,186,303 during fiscal year 2023, at interest rates ranging from 0.967% - 2.452%, with remaining lease terms ranging from 7 to 17 years. 18,982,476$ Building and office space leases with rents received totaling $490,593 during fiscal year 2023, at interest rates ranging from 0.315% - 1.170%, with remaining lease terms ranging from 2 to 9 years. 1,494,308
Total Governmental Activities 20,476,784$

The leases receivable are to be collected as follows:

Year ending
June 30, Principal Interest Total
2024 1,603,543$ 285,788$ 1,889,331$
2025 1,476,599 266,883 1,743,482
2026 1,270,188 248,630 1,518,818
2027 1,280,282 230,425 1,510,707
2028 1,268,351 212,108 1,480,459
2029 - 2033 6,008,680 786,012 6,794,692
2034 - 2038 5,757,057 354,482 6,111,539
2039 - 2040 1,812,084 21,378 1,833,462
Total 20,476,784$ 2,405,706$ 22,882,490$
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 as 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 are 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. 77 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 7. D EFINED BENEFIT PENSION PLANS (continued)

Pension Plan Description (continued)

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 plans (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.

The rate plan provisions and benefits in effect at June 30, 2023, 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% 7.250% 13.750%
Employer Contribution Rate -
Normal Cost 12.46% 21.18% 21.18% 12.46% 21.18%

PEPRA MEMBER
Membership date on or after
January 1, 2013

CLASSIC MEMBER
Membership date prior to
January 1, 2013

Employees Covered

During the fiscal year 2021-22 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 562 330 Inactive employees entitled to but not yet receiving benefits 341 127 Active employees 207 179
Total 1,110 636

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 June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

The total contributions to the Plans for the fiscal year ended June 30, 2023 is $20,106,141, which consisted of $9,598,907 and $10,507,234 for the Miscellaneous and Safety Plans, respectively. 78 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 total pension liability, less the p lan’s fiduciary net position. The total pension liability of each of the Plans is measured as of June 30, 2022 (measurement date) using an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The June 30, 2022 total pension liability was based on the following actuarial methods and assumptions:

Actuarial cost method Entry Age Normal
Actuarial Assumptions:

Discount rate 6.90%
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 20 15. 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 assumptions used in June 30 , 2021 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 pension contributions in future years. As of June 30, 202 3, the City reported the account balance of $1,848,717 as cash and investments held by fiscal agent in the City’s General Fund.

Change of Assumptions

The only change in assumption in the 2022 measurement period was the discount rate change from 7.15% to 6.90%. Further information regarding the discount rate can be found on the following page. Demographic assumptions and inflation rate used for the June 30, 2021 valuation continued to be based on the CalPERS Experience Study and Review of Actuarial Assumptions December 2017.

79 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 7. DEFINED BENEFIT PENSION PLANS (continued)

Discount Rate

The discount rate used to measure the total pension liability was 6.90 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 contribution 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 current 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.

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 benefits 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.

ASSUMED

ASSET RE A L
ASSET CLASS ALLOCATION RETURN (1)
Global Equity 42.00 % 8.38 %
Pr
ivate Equity 13.00 % 7.28 %
Treasury 5.00 % 0.27 %
M ortgage-Backed Securities 5.00 % 0.50 %
Investment Grade Corporates 10.00 % 1.56 %
High Yield 5.00 % 2.27 %
Debt 10.00 % 6.05 %
Real Assets 15.00 % 3.21 %
Leverage (5.00)% (0.06)%
(1) An expected inflation of 2.30% used for this period

80 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 7. DEFINED BENEFIT PENSION PLANS (continued)

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 06/30/2021 (valuation date) 246,915,007$ 247,424,429$ (509,422)$ Changes recognized for the measurement period:

Service cost 2,960,910 - 2,960,910 Interest on total pension liability 17,071,693 - 17,071,693 Changes of assumptions 6,741,180 - 6,741,180 Differences between expected and
actual experience 89,978 - 89,978 Contributions from the employer - 5,997,256 (5,997,256) Contributions from the employees - 1,152,574 (1,152,574) Net investment income - (18,498,165) 18,498,165 Benefit payments, including refunds
of employee contributions (15,621,507) (15,621,507) - Administrative expense - (154,131) 154,131 Net changes during 2021-22 11,242,254 (27,123,973) 38,366,227 Balance at 06/30/2022 (measurement date) 258,157,261$ 220,300,456$ 37,856,805$ SAFETY
Balance at 06/30/2021 (valuation date) 362,223,844$ 367,576,162$ (5,352,318)$ Changes recognized for the measurement period:

Service cost 5,962,234 - 5,962,234 Interest on total pension liability 25,559,013 - 25,559,013 Changes of assumptions 13,665,959 - 13,665,959 Differences between expected and
actual experience 1,541,551 - 1,541,551 Contributions from the employer - 6,568,743 (6,568,743) Contributions from the employees - 2,023,562 (2,023,562) Net investment income - (27,519,079) 27,519,079 Benefit payments, including refunds
of employee contributions (19,983,961) (19,983,961) - Administrative expense - (228,978) 228,978 Net changes during 2021-22 26,744,796 (39,139,713) 65,884,509 Balance at 06/30/2022 (measurement date) 388,968,640$ 328,436,449$ 60,532,191$

81 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 7. DEFINED BENEFIT PENSION PLANS (continued)

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, 2022:

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

5.90% 68,766,644$ 30,909, 839$

6.90% 37,856,805 -

7.90% 12,089,803 (25,767,002)
Safety
Discount Rate
Net Pension
Liability (Asset)
Impact on
Liability (Asset)

5.90% 113,519,464$ 52,987, 273$

6.90% 60,532,191 -

7.90% 17,182,456 (43,349,735)

Pension Plan’s Fiduciary Net Position

Detailed information about the 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, 2022 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.

82 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 7. DEFINED BENEFIT PENSION PLANS (continued)

Pension Expense (Income)

For the measurement period ending June 30, 2022, the total pension expense recognized is $7,912,527 for the Miscellaneous plan and $14,158,586 for the Safety 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 (income) 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 3.7 years
Changes in assumptions 2.0 year s 3.7 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 measurement period ending June 30, 202 2, the EARSL used for the Plans is as follows:

MISCELLANEOUS SAFETY
Total future service years(1) 2,171 2,291 Total number of participants (active, inactive and retired) 1,073 624 EA
RSL for the 2021-22 measurement period 2.0 years 3.7 years

(1) 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.

83 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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, 2022.

Deferred Outflows of Resources

MISCELLANEOUS SAFETY
Pension contributions subsequent to the measurement date 9,598,907$ 10,507,234$ Differences between expected and actual experience 44,989 4,773,727 Changes in assumptions 3,370,590 9,972,457
Net difference between projected and actual earnings on plan investments 12,620,074 20,154,753 Total Deferred Outflows of Resources - Pension 25,634,560$ 45,408,171$ Deferred Inflows of Resources

MISCELLANEOUS SAFETY
Differences between expected and actual experience -$ (108,349)$ Total Deferred Inflows of Resources - Pension -$ (108,349)$

The $20,106,141 reported as deferred outflows of resources related to contributions subsequent the June 30, 2022 measurement date will be recognized as a reduction of the net pension liability during the fiscal year ending June 30, 2024.

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
2023 5,585,972$ 9,926,567$
2024 2,024,245 8,921,435
2025 1,372,970 5,449,026
2026 7,052,466 10,495,560
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.

84 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 8. DEFINED CONTRIBUTION PENSION PLAN (continued)

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 1,000 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.

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 June 30, 2023, the City’s total payroll and covered payroll was $823,669. The City made employer contributions of $61,820. The assets held in trust by the plan administrator had a fair value of $722,940 at June 30, 2023.

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.

85 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 9. OTHER POST-EMPLOYMENT BENEFITS (continued)

Employees Covered

As of the June 30, 202 2 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:

Active employees 378
Inact
ive employees or beneficiaries currently receiving benefits 200 Inactive employees entitled to, but not yet receiving benefits - Total 578

Contributions

The annual contribution is comprised of the pay-as-you go amount. For the fiscal year ended June 30, 2023, the City’s cash contributions were $354,908 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, 2022 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, 2022 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, 2022 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, including updates to salary increases, mortality and retirement rates.

86 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 the 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 30, 2022 are summarized in the following table:

CERBT Asset
Class Target Allocation
Long-term Expected
Real Rate of Return
Global Equity 59.0% 7.545 %
Global Debt Securities 25.0% 4.250 %
REITs 8.0% 7.250 %
Inflation Assets 5.0% 3.000 %
Commodities 3.0% 7.545 %
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 the 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 employees 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

There were no changes in assumptions between the 2021 and the 2022 valuation year. 87 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 9. OTHER POST-EMPLOYMENT BENEFITS (continued)

Schedule of Changes in Net OPEB Liability
Increase (Decrease)
Total OPEB in P l an Fiduciary Net OPEB
Liability Net Position Liability (Asset)
(a) (b) (c) = (a) - (b)
Balance at 06/30/2021 (measurement date) 12,523,114$ 7,550,687$ 4,972,427$ Changes recognized for the measurement period:

Service cost 298,035 - 298,035 Interest 822,813 - 822,813 Contributions - employer - 964,629 (964,629) Net investment income/(loss) - (1,010,661) 1,010,661 Benefit payments, including refunds of
member contributions (964,629) (964, 629) - Administrative expense - (1, 913) 1,913 Net changes 156,219 (1,012,574) 1,168,793 Balance at 06/30/2022 (measurement date) 12,679,333$ 6,538,113$ 6,141,220$

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 measurement period ended June 30, 2022:

Discount Rate Net OPEB Liability Impact on Liability

5.75% 7,429,598$ 1,288,378$

6.75% 6,141,220 -

7.75% 5,047,415 (1,093,805)
88 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 (4%), for measurement period ended June 30, 2022:

Healthcare Cost
Trend R
ates Net OPEB Liability Impact on Liability
1% Decrease 4,745,792$ (1,395,428)$
Current Rate 6,141,220 -
1% Increase 7,828,035 1,686,815

OPEB Plan Fiduciary Net Position

CalPERS issues a publicly available CERBT financial report on 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 loss 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.

Source of Gains and Losses Recognition Period
Net difference between projected and actual
earnings on OPEB Plan Investments 5 years
All other amounts 9 years

89 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 3, the City recognized OPEB expense of $ 715,624. 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 354,908$ -$ Differences between expected and actuarial experience 738,644 (440,156) Changes of assumptions 638,298 -
Differences between projected and actual earnings 612,176 - Total 2,344,026$ (440,156)$

The $354,908 reported as deferred outflows of resources related to contributions 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 $1,548,962 of deferred outflow s 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
2023 102,008$
2024 161,792
2025 253,732
2026 485,899
2027 181,847
Thereafter 363,684

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, 2023 , 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. 90 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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, 2021 1,307,000$ 2,149,000$ 3,456,000$ 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 Current Fiscal Year Claims 100,000 1,002,765 1,102,765 Claims Payments (134,157) (663,972) (798,129) Changes to Estimates 106,032 991,207 1,097,239 Liability - June 30, 2023 1,522,875$ 4,154,000$ 5,676,875$

The City’s accrued liability at year -end of $5,676,875 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 Insurance 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, vehicles, furniture and fixtures. The deductible varies depending on the type of loss.

91 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 grant. 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
G
overnmental Funds:

Non Major Capital Project Fund Luke Lane Drainage Improvements 439,400$ Non Major Capital Project Fund Madison Avenue Safety Improvements 1,940,103 Non Major Capital Project Fund El Cajon Boulevard Streetscape 5,985,121 Total 8,364,624$
92 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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, 2023 is as follows:

Due To Due From Amount
Non-Major Special
Revenue Fund
Total 317,397$
317,397$ General Fund

The amounts due to the General Fund from the CDBG non-major 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, 2023 are as follows:

Transfers Out
General
Fund
Special
Revenue
Debt
S ervic e
Capital
Projects Total
Major Funds
General Fund -$ 455,143$ 8,293,863$ 500,000$ 9,249,006$ Wasterwater Fund - - 475,018 - 475,018 Non-Major Funds
Internal Service - - 204,981 - 204,981 Special Revenue 161,316 - 149,012 - 310,328 Total 161,316$ 455,143$ 9,122,874$ 500,000$ 10,239,333$ Tra nsfe rs In
Non-Major FundsMajor Funds

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

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

The transfers from the general fund to the special revenue and non-major capital projects funds were funding for a fire truck and capital projects.

93 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

NOTE 13. FUND BALANCES AND DEFICITS

Fund balances for the fiscal year ended June 30, 2023 are as follows:

General
Low and
Moderate Income
Housing Asset
Federal,
State, and
Local Grants Non-Major
Total
Governmental
Funds
Nonspendable
Prepaid Items 3,807$ -$ -$ -$ 3,807$ Restricted
Animal Shelter Operations - - - 41,549 41,549 Animal Shelter Project - - - 266,637 266,637 Community Development - 6,968,396 88,055 2,834,508 9,890,959 Debt Service - - - 2 2 Loans Receivable (note 3) - 10,117,895 596,585 10,306,625 21,021,105 Public Safety - - 386,176 384,567 770,743 Public Works Projects - - 52,277 575,030 627,307 RTCIP Impact Fee - - - 734,258 734,258 RMRA - - - 4,274,454 4,274,454 Transportation Projects - - - 3,108,844 3,108,844 PARS Trust for UAL 1,848,717 - - - 1,848,717 Committed - - - 1,181,443 1,181,443 Assigned -
Capital Projects - - - 12,599,278 12,599,278 Designated for Economic
Uncertainty 16,161,701 - - - 16,161,701 Unfunded Retirement
Obligations 11,151,283 - - - 11,151,283 Unassigned 17,930,056 - - - 17,930,056 Operating Reserve (unassigned) 16,161,701 - - - 16,161,701 Total Fund Balance 63,257,265$ 17,086,291$ 1,123,093$ 36,307,195$ 117,773,844$ Special Revenue

The General Fund’s Operating Reserve Unassigned fund balance of $16,161,701 is established 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.

94 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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, 2023.

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 $74,349 that was utilized by the City of El Cajon to fund the capital improvement project. The City also provides clerical and accounting services for HFTA. Charges for services were $35,000 for the fiscal year ending June 30, 2023.

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 27.06% for the fiscal year ending June 30, 2023.

HCFA leases a portion of the property located at 100 E. Lexington Avenue from the City. Lease payments totaled $58,052 for the fiscal year ending June 30, 2023. The City also provides clerical and accounting services for HCFA. Charges for services were $58,812 for the fiscal year ending June 30, 2023.

Annual financial statements may be obtained from HCFA, c/o City of El Cajon, Finance Department, 200 Civic Center Way, El Cajon, CA 92020.

95 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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 dealership (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:

Fis cal Year Operating Years Percentage of Net
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 fiscal year 2023, the total amount rebated to Sunroad under this agreement was $252.488.

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:

Fis cal Year Operating Years Percentage of TOT
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 fiscal year 2023, the total amount rebated to the Hotel under this agreement was $667,039.

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 will invest approximately $2.3 million into the acquisition and redevelopment of this dealership. 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 excess of $342,000 per year) not to exceed $2.3 million as follows:

Fis cal Year Operating Years Percentage of Net
Sales Taxes
FY2017-18 through FY2022-23 Years 1 through 6 65%
FY2023-24 through FY2028-29 Years 7 through 12 50%

In fiscal year 2023, the total amount rebated to the Hotel under this agreement was $411,316. 96 CITY OF EL CAJON

NOTES TO THE BASIC FINANCIAL STATEMENTS
For the fiscal year ended June 30, 2023

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:

Fis cal Year Operating Years Perc entage of Net
Sales Taxes
FY2018-19 through FY2022-23 Years 1 through 5 75%
FY2023-24 through FY2027-28 Years 6 through 10 60%

In fiscal year 2023, the total amount rebated to Mercedes-Benz under this agreement was $410,803.

NOTE 16. PRIOR PERIOD ADJUSTMENTS

During the previous fiscal year, the City paid implementation costs for the set-up of Tyler Enterprise Resource Planning (ERP) system. With the implementation of GASB 96 in fiscal year 2023, this amount was capitalized as part of the Tyler ERP Subscription Based Information Technology Asset (Intangible Asset).

The City has entered a prior period adjustment to increase the amount of Net Position in Capital Assets in the City’s Information Technology (Internal Service) fund to correct the overstatement of Operating E xpenses recorded the prior year.

Information
Technology
Fund
Beginning Net Investment in Capital Assets,
July 1, 2022, as reported 350,440$
Recognition of Intangible Asset in lieu of
Operating Expense 831,600
Beginning Net Investment in Capital Assets,
July 1, 2022, as restated 1,182,040$
Beginning Unrestricted Net Position, July 1,
2022, as reported
2,184,448$
Recognition of Intangible Asset in lieu of
Operating Expense -
Beginning Unrestricted Net Position, July 1,
2022, as restated 2,184,448$
Total Net Position 3,366,488$

97 98
The Valley of Opportunity

REQUIRED SUPPLEMENTARY INFORMATION
99 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 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 - Adm
inistrative 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 105. 2 Covered payroll represents the payroll on which contributions to the pension plan are based. 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 Changes in the Net Pension Liability and Related Ratios - Miscellaneous Plan for the Measurement Periods ending June 30
Last Nine Years 1
100
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
2,765,699$ 2,812,784$ 2,825,180$ 2,977,187$ 2,777,695$ 2,960,910$ 15,080,991 15,414,119 16,060,380 16,469,083 16,884,141 17,071,693 (1,052,850) (217,246) 3,530,348 294,443 937,913 89,978 11,547,296 (1,094,357) - - - 6,741,180 (11,469,789) (12,329,214) (13 ,120,445) (13,959,312) (14,999,589) (15,621,507) 16,871,347 4,586,086 9,295,463 5,781,401 5,600,160 11,242,254 204,780,550 221,651,897 226,237,983 235,533,446 241,314,847 246,915,007 221,651,897$ 226,237,983$ 235,533,446$ 241,314,847$ 246,915,007$ 258,157,261$ 5,729,154$ 5,952,503$ 7,126,866$ 7,760,121$ 55,499,867$ 5,997,256$ 1,179,611 1,148,838 1,240,802 1,221,300 1,101,687 1,152,574 15,602,402 12,639,219 10,236,329 8,085,826 41,616,905 (18,498,165) (11,469,789) (12,329,214) (13,120,445) (13,959,312) (14,999,589) (15,621,507) - (364) 2,323 - - - (204,547) (232,773) (111,407) (2 27,661) (164,195) (154,131) - (442,040) 364 - - - 10,836,831 6,736,169 5,374,832 2,880,274 83,054,675 (27,123,973) 138,541,648 149,378,479 156,114,648 161,489,480 164,369,754 247,424,429 149,378,479$ 156,114,648$ 161,489,480$ 164,369,754$ 247,424,429$ 220,300,456$ 72,273,418$ 70,123,335$ 74,043,966$ 76,945,093$ (509,422)$ 37,856,805$

67.39% 69.00% 68.56% 68.11% 100.21% 85.34%
13,975,942$ 14,120,404$ 14,671,685$ 15,802,477$ 14,846,044$ 14,535,639$ 517.13% 496.61% 504.67% 486.92% -3.43% 260.44%
101
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 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 105. 2 Covered payroll represents the payroll on which contributions to the pension plan are based. 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 Changes in the Net Pension Liability and Related Ratios - Safety Plan for the Measurement Periods ending June 30
Last Nine Years 1
102
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
4,627,095$ 4,665,299$ 4,417,341$ 4,723,268$ 5,236,365$ 5,962,234$ 21,187,689 21,939,641 22,690,389 23,341,882 24,631,101 25,559,013 (4,240,228) 2,153,863 791,993 (650,086) 8,209,825 1,541,551 17,772,474 (1,270,346) - - - 13,665,959 (15,884,588) (16,516,560) (17,029,399) (17,968,239) (19,032,740) (19,983,961) 23,462,442 10,971,897 10,870,324 9,446,825 19,044,551 26,744,796 288,427,805 311,890,247 322,862,144 333,732,468 343,179,293 362,223,844 311,890,247$ 322,862,144$ 333,732,468$ 343,179,293$ 362,223,844$ 388,968,640$ 7,963,467$ 8,172,881$ 9,762,519$ 11,019,557$ 111,393,591$ 6,568,743$ 1,501,090 1,391,912 1,663,961 1,756,898 1,882,796 2,023,562 20,358,562 16,375,994 13,272,580 10,470,492 58,360,338 (27,519,079) (15,884,588) (16,516,560) (17,029,399) (17,968,239) (19,032,740) (19,983,961) - (474) - - - - (266,438) (302,512) (144,636) (296,337) (214,959) (228,978) - (574,475) 474 - - - 13,672,093 8,546,766 7,525,499 4,982,371 152,389,026 (39,139,713) 180,460,407 194,132,500 202,679,266 210,204,765 215,187,136 367,576,162 194,132,500$ 202,679,266$ 210,204,765$ 215,187,136$ 367,576,162$ 328,436,449$ 117,757,747$ 120,182,878$ 123,527,703$ 127,992,157$ (5,352,318)$ 60,532,191$

62.24% 62.78% 62.99% 62.70% 101.48% 84.44%
15,120,732$ 15,449,544$ 14,818,817$ 16,153,448$ 18,068,893$ 18,855,896$ 778.78% 777.91% 833.59% 792.35% -29.62% 321.03%
103
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% 2020-212
8,272,207 (55,499,867) (47, 227,660) 14,846, 044 373.84% 2021-22 5,997,256 (5,997,256) - 14,535,639 41.26% 2022-23 6,406,913 (9,598,907) (3,191,994) 15,716,543 61.08% 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% 2020-212
12,051,806 (111,393,591) (99, 341,785) 18,068, 893 616.49% 2021-22 6,568,743 (6,568,743) - 18,855,896 34.84% 2022-23 7,811,027 (10,507,234) (2,696,207) 19,234,503 54.63% See Note 2 of the Notes to Required Supplementary Information - Net Pension Liability on page 105.

CITY OF EL CAJON
1Covered payroll represents the payroll on which the contributions to the pension plan are based. 2In fiscal year 2020-21, the City issued Pension Obligation Bonds to pay down a portion of its unfunded CalPERS liability.

Required Supplementary Information
Schedule of Plan Contributions - Pension
Last Ten Fiscal Years
104

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.

Notes to Required Supplementary Information

CITY OF EL CAJON
Net Pension Liability - Miscellaneous and Safety Plans June 30, 2023
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 2.80 percent payroll growth for June 30, 2022, 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21, and 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

The following actuarial methods and assumptions from the June 30, 2019 funding valuation report, were used to set the actuarially determined contributions for measurement period 2021-22:

The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2021 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2021 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

In 2022, the discount rate was reduced from 7.00 percent to 6.90 percent. 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. 105
2016-17 2017-18
Total OPEB Liability
Service cost 78,533$ 78,533$
Interest on total OPEB liability 391,440 397,219 Differences between expected and actual experience - 54,005 Changes in assumptions - 718,115 Changes in benefit terms - 4,588,311 Benefit payments (293,421) (308,359)
Net change in total OPEB liability 176,552 5,527,824 Total OPEB liability - beginning 5,355,403 5,531,955 Total OPEB liability - ending (a) 5,531,955$ 11,059,779$ Plan fiduciary net position
Contributions - employer 949,193$ 958,359$ Net investment income 321,424 276,640
Benefit payments (293,421) (308,359)
Administrative expense (1,685) (6,613) Net change in plan fiduciary net position 975,511 920,027 Plan fiduciary net position - beginning 2,534,777 3,510,288 Plan fiduciary net position - ending (b) 3,510,288$ 4,430,315$ Net OPEB liability - ending (a)-(b) 2,021,667$ 6,629,464$ Plan fiduciary net position as a percentage
of the total OPEB liability (b)/(a) 63.45% 40.06%
Covered-employee payroll 2
24,275,515$ 24,988,882$
Net OPEB liability as percentage of covered-employee payroll 8.33% 26.53% See Notes to Required Supplementary Information - Other Postemployment Benefits on page 109. 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 Six Years 1
106
2018-19 2019-20 2020-21 2021-2022
233,261$ 240,400$ 247,011$ 298,035$ 795,418 792,235 770,296 822,813 (868,788) (666,003) 949,686 - 520,123 - 686,927 - - - - (733,949) (740,805) (762,477) (964,629) (53,935) (374,173) 1,891,443 156,219 11,059,779 11,005,844 10,631,671 12,523,114 11,005,844$ 10,631,671$ 12,523,114$ 12,679,333$ 1,383,949$ 940,805$ 962,477$ 964,629$ 296,391 192,108 1,587,754 (1,010,661) (733,949) (740,805) (762,477) (964,629) (1,063) (2,631) (2,187) (1,913) 945,328 389,477 1,785,567 (1,012,574) 4,430,315 5,375,643 5,765,120 7,550,687 5,375,643$ 5,765,120$ 7,550,687$ 6,538, 113$ 5,630,201$ 4,866,551$ 4,972,427$ 6,141, 220$

48.84% 54.23% 60.29% 51.57%
27,922,328$ 28,690,192$ 26,762,410$ 28,768,398$

20.16% 16.96% 18.58% 21.35%

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
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% 2022-23 737,990 (354,908) 383,082 32,712,586 1.08% 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 109.

CITY OF EL CAJON
2 Contributions to OPEB are not based on measure of pay.

Required Supplementary Information
Schedule of Plan Contributions - OPEB
Last Seven Fiscal Years 1
108
Actuarial cost method Entry Age Normal
Actuarial valuation date June 30, 2022
Measurement date June 30, 2022
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

CITY OF EL CAJON
There were no changes in assumptions between June 30, 2021 and June 30, 2022 valuations.

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.

Notes to Required SupplementaryInformation
Other Post Employment Benefits (OPEB)
June 30, 2023
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.
109
Actual Variance with
Original Final Amounts1 Final Budget

REVENUES
Taxes
Sales and Use 45,238,567$ 45,238,567$ 46,555,665$ 1,317,098$ Property 23,547,433 23,547,433 24,533,077 985,644 Franchise 6,583,983 6,583,983 7,114,259 530,276 Transient Lodging 2,700,000 2,700,000 3,026,644 326,644 Business Licenses 833,000 833,000 849,581 16,581 Property Transfer 500,000 500,000 401,799 (98,201) Total Taxes 79,402,983 79,402,983 82,481,025 3,078,042 Intergovernmental:

Motor Vehicle License Fees 76,500 76,500 108,828 32,328 Reimbursements 1,018,200 1,061,200 1,396,221 335,021 Total Intergovernmental 1,094,700 1,137,700 1,505,049 367,349 Licenses and Permits 1,599,000 1,599,000 2,458,242 859,242 Fines and Forfeitures 698,500 698,500 509,475 (189,025) Special Assessments 360,000 360,000 367,380 7,380 Charges for Services:

Planning and Engineering 1,298,500 1,298,500 1,641,886 343,386 Public Safety 686,500 686,500 758,115 71,615 All Others 1,357,946 1,357,946 1,562,803 204,857 Total Charges for Services 3,342,946 3,342,946 3,962,804 619,858 Use of Money and Property 3,105,000 3,105,000 3,220,892 115,892 Other:

Miscellaneous 259,000 259,000 195,855 (63,145) Total Other 259,000 259,000 195,855 (63,145) Total Revenues 89,862,129 89,905,129 94,700,722 4,795,593 (Continued)
basis combine an additional fund pursuant to GASB Statement No.54.

See Notes to Required Supplementary Information on page 115.

CITY OF EL CAJON
1 Includes only the General Fund as defined by the City's budget. Financial statements prepared on a GAAP Budgeted Amounts
Budget and Actual (Budgetary Basis)
General Fund
For the fiscal year ended June 30, 2023
Schedule of Revenues, Expenditures and Changes in Fund Balance Required Supplementary Information
110
Actual Variance with
Original Final Amounts1 Final Budget

EXPENDITURES
General Government:

City Council 558,142$ 581,355$ 545,284$ 36,071$ Council Contingency 45,000 45,000 12,000 33,000 City Manager 2,790,333 3,585,082 3,493,757 91,325 City Attorney 785,261 831,041 719,554 111,487 City Clerk and Elections 724,287 791,251 782,100 9,151 Human Resources 1,184,793 1,283,278 1,094,850 188,428 Finance 2,406,299 2,614,354 2,440,640 173,714 Other Financing Uses 250,000 250,000 250,000 - Total General Government 8,744,115 9,981,361 9,338,185 643,176 Public Safety:

Police:

Administration 3,300,040 3,452,396 3,452,396 - Inspection and Training 2,383,895 2,883,316 2,883,316 - Records 1,372,841 1,487,309 1,093,994 393,315 Communications 3,117,631 3,390,332 3,151,275 239,057 Patrol 17,569,071 17,920,459 17,463,446 457,013 Special Operations Unit 2,919,843 3,409,055 3,409,055 - Traffic Enforcement 2,044,542 2,175,590 2,008,404 167,186 Investigation 5,865,325 6,307,400 6,307,400 - Laboratory 1,158,936 1,301,861 1,080,278 221,583 Auxillary 160,464 160,464 141,116 19,348 Animal Control 1,059,600 1,150,150 1,150,150 - Total Police 40,952,188 43,638,332 42,140,830 1,497,502 Fire:

Administration 1,963,811 2,026,731 1,952,792 73,939 Emergency Medical Services 321,850 321,850 290,572 31,278 Suppression 12,220,010 13,002,144 13,002,144 - Fire Prevention 342,612 366,099 274,550 91,549 Heartland Fire and Rescue 2,476,166 2,290,489 2,290,489 - Total
Fire 17,324,449 18,007,313 17,810,547 196,766 Total Public Safety 58,276,637 61,645,645 59,951,377 1,694,268 (Continued)
basis combine an additional fund pursuant to GASB Statement No.54 See Notes to Required Supplementary Information on page 115.

General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance For the fiscal year ended June 30, 2023
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

CITY OF EL CAJON
111
Actual Variance with
Original Final Amounts1 Final Budget
Public Works:

Administration 521,717$ 543,025$ 518,331$ 24,694$ Facilities Maintenance 2,678,094 2,830,960 2,310,064 520,896 Engineering 1,146,937 1,291,590 903,572 388,018 Traffic Engineering and Maintenance 1,870,097 2,587,118 1,691,204 895,914 Parks 1,593,176 1,666,705 1,575,293 91,412 Street Maintenance 889,989 970,532 645,189 325,343 Total Public Works 8,700,010 9,889,930 7,643,653 2,246,277 Parks & Recreation:

Recreation 4,251,913 4,478,885 4,120,078 358,807 Community Services and Events 278,300 278,300 265,421 12,879 Total Parks & Recreation 4,530,213 4,757,185 4,385,499 371,686 Community Development:

Housing 439,110 538,285 538,285 - Planning 1,329,979 1,411,507 1,286,962 124,545 Building and Fire Safety 1,343,058 1,440,370 1,166,728 273,642 Total Community Development 3,112,147 3,390,162 2,991,975 398,187 Total Expenditures 83,363,122 89,664,283 84,310,689 5,353,594 Excess (deficiency) of Revenues Over
(under) Expenditures 6,499,007 240,846 10,390,033 10,149,187

OTHER FINANCING SOURCES (USES)
Transfers In 209,107 209,107 161,316 47,791 Transfers Out (8,785,825) (9,240,968) (9,240,968) - Total Other Financing Sources (uses) (8,576,718) (9,031,861) (9,079,652) 47,791 Net Change in Fund Balance (2,077,711) (8,791,015) 1,310,381 10,196,978 Fund Balance, Beginning 61,713,394 61,713,394 61,713,394 -

Fund Balance, Ending 59,635,683$ 52,922,379$ 63,023,775$ 10,196, 978$ (Concluded)
basis combine an additional fund pursuant to GASB Statement No.54 See Notes to Required Supplementary Information on page 115. 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, 2023
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
112
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Charges for Services -$ -$ 17,340$ 17,340$ Use of Money and Property - - 106,381 106,381 Other 200,420 200,420 85,178 (115,242) Total Revenues 200,420 200,420 208,899 8,479

EXPENDITURES
Community Development 3,276,500 3,276,500 632,516 2,643,984 Total Expenditures 3,276,500 3,276,500 632,516 2,643,984 Excess (deficiency) of Revenues Over
(under) Expenditures (3,076,080) (3,076,080) (423,617) 2,652,463

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 (2,773,080) (2,773,080) (423,617) 2,349,463 Fund Balance, Beginning 17,594,541 17,594,541 17,594,541 -

Fund Balance, Ending 14,821,461$ 14,821,461$ 17,170,924$ 2,349, 463$ See Notes to Required Supplementary Information on page 115.

CITY OF EL CAJON
Budgeted Amounts
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, 2023
Required Supplementary Information
113
Low and
Moderate
Income
General Housing Asset
Actual revenues from budgetary basis schedules 94,700,722$ 208,899$ Differences - Budget to GAAP:

GAAP reporting entity differences:

Recreation Special Programs is not budgeted in General Fund 544,180 - Magnolia Performing Arts is not budgeted in General Fund 4,307,252 - Long-term lease interest and revenue recognition as required by GASB Statement No. 87 246,138 -
Total revenues as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds (page 42) 99,798,292 208,899 Actual expenditures from budgetary basis schedules 84,310,689 632,516 Differences - Budget to GAAP
GAAP reporting entity differences:

Recreation Special Programs is not budgeted in General Fund 605,898 - Magnolia Performing Arts is not budgeted in General Fund 4,584,824 - Total expenditures as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds (page 42) 89,501,411 632,516 Actual other financing sources (uses) from budgetary basis schedules (9,079,652) - Differences - Budget to GAAP
GAAP reporting entity differences:

Recreation Special Programs is not budgeted in General Fund (8,038) - Total other financing sources (uses) as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds (page 42) (9,087,690) - Net change in fund balances as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds (page 42) 1,209,191 (423,617) Fund balances, beginning of year (GAAP Basis) (page 42) 62,048,074 17,594,541 Fund balances, restated beginning of year (GAAP Basis) (page 42) 62,048,074 17,594,541 Fund balances, end of year (GAAP Basis) (page 42) 63,257,265$ 17,170,924$

CITY OF EL CAJON
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 Reconciliation of Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budgetary to GAAP Basis
For the fiscal year ended June 30, 2023
Major Governmental Funds
Required Supplementary Information
114

CITY OF EL CAJON
Notes to the Required Supplementary Information
Budgetary Information
For the fiscal year ended June 30, 2023

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 114.

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 110-112 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 114. 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 117-120.

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.
115

SUPPLEMENTARY INFORMATION
116
Recreation Magnolia
General Special Performing
Fund Programs Arts Total1
ASSETS
Cash and Investments 52,929,860$ 119,388$ 1,286, 649$ 54,335, 897$ Cash and Investments with Fiscal Agent 1,848,717 - - 1,848,717 Receivables:

Accounts 1,557,160 64,892 3,697 1,625, 749 Interest 513,500 482 - 513,982 Intergovernmental 308,973 - - 308,973 Leases 20,000,757 - - 20,000,757 Taxes 8,973,392 - - 8,973,392 Prepaid Items 3,807 - - 3,807 Due from Other Funds 317,397 - - 317,397 Total Assets 86,453,563$ 184,762$ 1,290, 346$ 87,928, 671$

LIABILITIES
Accounts Payable 1,705,172$ 3,541$ 130,263$ 1,838, 976$ Accrued Liabilities 1,510,867 13,577 - 1,524,444 Deposits Payable 1,323,896 8,609 - 1,332,505 Unearned Revenue - 251,615 - 251,615 Total Liabilities 4,539,935 277,342 130,263 4,947, 540

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 115,674 - - 115,674 Related to Leases 19,608,192 - - 19,608,192 Total Deferred Inflows of Resources 19,723,866 - - 19,723,866

FUND BALANCE
Nonspendable:

Prepaid Items 3,807 - - 3,807 Restricted 1,848,717 - - 1,848,717 Assigned:

Economic Uncertainty 16,161,701 - - 16,161,701 Unfunded Retirement Obligations 11,151,283 - - 11,151,283 Unassigned 33,024,254 (92,580) 1,160, 083 34,091, 757 Total Fund Balance 62,189,762 (92,580) 1,160, 083 63,257, 265 Total Liabilities, Deferred Inflows of
Resources and Fund Balance 86,453,563$ 184,762$ 1,290,346$ 87,928,671$

CITY OF EL CAJON
Balance Sheet
General Fund (GAAP Basis)
June 30, 2023
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).
117
Recreation Magnolia
General Special Performing
Fund Programs Arts Total1

REVENUES
Taxes 82,481,025$ -$ -$ 82,481,025$ Intergovernmental 1,505,048 - - 1,505,048 Licenses and Permits 2,458,242 - - 2,458,242 Fines and Forfeitures 509,475 - - 509,475 Special Assessments 367,380 - - 367,380 Charges for Services 3,962,804 489,592 - 4,452,396 Use of Money and Property 3,467,031 545 4,155, 672 7,623, 248 Other 195,855 54,043 151,580 401,478 Total Revenues 94,946,860 544,180 4,307, 252 99,798, 292

EXPENDITURES
Current:

General Government 9,338,185 - - 9,338,185 Public Safety 59,943,064 - - 59,943,064 Public Works 7,643,653 - - 7,643,653 Recreation 4,385,499 605,898 4,584, 824 9,576, 221 Community Development 2,991,975 - - 2,991,975 Debt Service
Interest 8,313 - - 8,313 Total Expenditures 84,310,689 605,898 4,584, 824 89,501, 411 Excess (deficiency) of Revenues
Over (under) Expenditures 10,636,171 (61,718) (277,572) 10,296,881

OTHER FINANCING SOURCES (USES)
Transfers In 161,316 - - 161,316 Transfers Out (9,240,968) (8,038) - (9,249,006) Total Other Financing Sources (uses) (9,079,652) (8,038) - (9,087,690) Net Change in Fund Balances 1,556,519 (69,756) (277, 572) 1,209, 191 Fund Balance, Beginning 60,633,243 (22,824) 1,437, 655 62,048, 074 Fund Balance, Ending 62,189,762$ (92,580)$ 1,160, 083$ 63,257, 265$ 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, 2023

CITY OF EL CAJON
Schedule of Revenues, Expenditures and Changes in Fund Balances General Fund (GAAP Basis)
118
Actual Amounts Variance with
Original Final Budgetary Basis Final Budget

REVENUES
Intergovernmental 49,000$ 49,000$ -$ (49,000)$ Charges for Services 620,210 620,210 489,592 (130, 618) Use of Money and Property - - 545 545 Other 45,000 45,000 54,043 9,043 Total Revenues 714,210 714,210 544,180 (170, 030)

EXPENDITURES
Recreation 686,673 695,401 605,898 89,503 Total Expenditures 686,673 695,401 605,898 89,503 Excess (deficiency) of Revenues Over
(under) Expenditures 27,537 18,809 (61,718) (80,527)

OTHER FINANCING SOURCES (USES)
Transfers Out (8,038) (8,038) (8, 038) - Total Other Financing Sources (8,038) (8,038) (8, 038) - Net Change in Fund Balance 19,499 10,771 (69, 756) (80, 527) Fund Balance, Beginning (22,824) (22,824) (22, 824) - Fund Balance, Ending (3,325)$ (12,053)$ (92, 580)$ (80, 527)$ 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 114.

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, 2023
119
Actual Amounts Variance with
Original Final Budgetary Basis Final Budget

REVENUES
Use of Money and Property 500,000$ 500,000$ 297,634$ (202, 366)$ Other 100,000 100,000 151,580 51,580 Total Revenues 600,000 600,000 449,214 (150, 786)

EXPENDITURES
Recreation 1,138,900 1,138,900 726,786 412,114 Capital Outlay - - - - Total Expenditures 1,138,900 1,138,900 726,786 412,114 Excess (deficiency) of Revenues Over
(under) Expenditures (538,900) (538,900) (277,572) 261,328 Net Change in Fund Balance (538,900) (538,900) (277, 572) 261,328 Fund Balance, Beginning 1,437,655 1,437,655 1,437, 655 - Fund Balance, Ending 898,755$ 898,755$ 1,160, 083$ 261,328$ 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, 2023
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 118.
120
Special Debt Capital
Revenue Service Projects
Funds Fund Funds Total
ASSETS
Cash and Investments 6,928,779$ 1,181,443$ 17, 655,484$ 25, 765,706$ Cash and Investments,
with Fiscal Agent - 2 - 2 Receivables:

Interest 32,978 - 40, 903 73, 881 Intergovernmental 538,738 - 2, 259,981 2, 798,719 Leases - - 476 ,027 476 ,027 Taxes 45,580 - - 45, 580 Loans 10,559,558 - - 10, 559,558 Total Assets 18,105,633$ 1,181,445$ 20, 432,395$ 39, 719,473$

LIABILITIES
Accounts Payable 119,573$ -$ 2 ,337,258$ 2, 456,831$ Accrued Liabilities 24,163 - - 24, 163 Due to Other Funds 317,397 - - 317 ,397 Total Liabilities 461,133 - 2, 337,258 2, 798,391

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 126,740 - 15, 797 142 ,537 Related to Leases - - 471 ,350 471 ,350 Total Deferred Inflows of Resources 126,740 - 487 ,147 613 ,887

FUND BALANCE (DEFICIT)
Restricted:

Animal Shelter Operations 41,549 - - 41, 549 Animal Shelter Project 266,637 - - 266 ,637 Community Development 2,834,508 - - 2, 834,508 Debt Service - 2 - 2 Loans Receivable 10,306,625 - - 10, 306,625 Public Safety 384,567 - - 384 ,567 Public Works Projects 575,030 - - 575 ,030 RTCIP Impact Fee - - 734 ,258 734 ,258 RMRA - - 4, 274,454 4, 274,454 Transportation Projects 3,108,844 - - 3, 108,844 Committed - 1,181,443 - 1, 181,443 Assigned:

Capital Projects - - 12, 599,278 12, 599,278 Total Fund Balance 17,517,760 1,181,445 17, 607,990 36, 307,195 Total Liabilities, Deferred Inflows of
Resources and Fund Balance 18,105,633$ 1,181,445$ 20,432,395$ 39,719,473$

CITY OF EL CAJON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
121
Special Debt Capital
Revenue Service Projects
Funds Fund Funds Total

REVENUES
Taxes -$ -$ 807,355$ 807,355$ Intergovernmental 5,813,851 - 3,905, 789 9,719, 640 Fines and Forfeitures 78,256 - - 78,256 Charges for Services 274,760 - 37,530 312,290 Use of Money and Property 354,534 1 154,518 509,053 Other 271 - 100,000 100,271 Total Revenues 6,521,672 1 5,005, 192 11,526, 865

EXPENDITURES
General Government - 2,850 - 2,850 Public Safety 72,867 - - 72,867 Public Works 2,837,500 - 462,877 3,300, 377 Community Development 906,480 - - 906,480 Capital Outlay 2,068,534 - 5,970, 685 8,039, 219 Debt Service
Interest 24,224 3,342,625 - 3,366, 849 Principal 208,183 5,192,000 - 5,400, 183 Total Expenditures 6,117,788 8,537,475 6,433, 562 21,088, 825 Excess (deficiency) of Revenues
Over (under) Expenditures 403,884 (8,537,474) (1,428,370) (9,561,960)

OTHER FINANCING SOURCES (USES)
Transfers In - 9,122,874 500,000 9,622, 874 Transfers Out (310,328) - - (310, 328) Total Other Financing Sources (uses) (310,328) 9,122,874 500,000 9,312, 546 Net Change in Fund Balance 93,556 585,400 (928, 370) (249, 414) Fund Balances, Beginning 17,424,204 596,045 18,536, 360 36,556, 609 Fund Balances, Ending 17,517,760$ 1,181,445$ 17,607, 990$ 36,307, 195$

CITY OF EL CAJON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the fiscal year ended June 30, 2023
122

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 expended for construction and maintenance of City streets and street infrastructure.

Transit
This fund accounts for Transportation Development Act (TDA) Article 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 revenue (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 utilized 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.
123
Federal/
County Local
Asset Public
Gas Tax Transit Forfeiture Safety
ASSETS
Cash and Investments 2,959,810$ 496,264$ 175,373$ 166,014$ Receivables:

Interest 15,416 2,510 788 1,246 Intergovernmental 236,923 83,551 - - Taxes - - - 45,580 Loans - - - - Total Assets 3,212,149$ 582,325$ 176,161$ 212,840$

LIABILITIES
Accounts Payable 84,050$ 7,212$ 4,434$ -$ Accrued Liabilities 19,255 83 - - Due to Other Funds - - - - Total Liabilities 103,305 7,295 4,434 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - - Total Deferred Inflows of Resources - - - -

FUND BALANCE
Restricted:

Animal Shelter Operations - - - - Animal Shelter Project - - - - Community Development - - - - Loans Receivable - - - - Public Safety - - 171,727 212,840 Public Works Projects - 575,030 - - Transportation Projects 3,108,844 - - - Total Fund Balance 3,108,844 575,030 171,727 212,840 Total Liabilities, Deferred Inflows of
Resources and Fund Balance 3,212,149$ 582,325$ 176,161$ 212,840$

CITY OF EL CAJON
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2023
Budgeted
124
Unbudgeted
Community
Housing Development Total Nonmajor
In-Lieu State Block Various Special Revenue
Fees CASP Grant HOME Donations Funds
553,473$ 137,375$ -$ 2,129,035$ 311,435$ 6,928,779$ 2,708 - - 10,310 - 32,978 - - 213,264 5,000 - 538,738 - - - - - 45,580 - - 253,106 10,306,452 - 10,559,558 556,181$ 137,375$ 466,370$ 12,450, 797$ 311,435$ 18,105, 633$ -$ 243$ 18,634$ 5,000$ -$ 119,573$ - - 3,427 1,398 - 24,163 - - 317,397 - - 317,397 - 243 339,458 6,398 - 461,133 - - - 126,740 - 126,740 - - - 126,740 - 126,740 - - - - 41,549 41,549 - - - - 266,637 266,637 556,181 137,132 - 2,137,946 3,249 2,834,508 - - 126,912 10,179,713 - 10,306,625 - - - - - 384,567 - - - - - 575,030 - - - - - 3,108,844 556,181 137,132 126,912 12,317, 659 311,435 17,517,760 556,181$ 137,375$ 466,370$ 12,450,797$ 311,435$ 18,105,633$ Budgeted

125
Federal/
County Local
Asset Public
Gas Tax Transit Forfeiture Safety

REVENUES
Intergovernmental 2,702,916$ 83,552$ -$ 594,332$ Fines and Forfeitures - - 78,256 - Charges for Services - - - - Use of Money and Property 33,875 5,506 1,625 2,623 Other - - - - Total Revenues 2,736,791 89,058 79,881 596,955

EXPENDITURES
Current:

Public Safety - - 53,674 19,193 Public Works 2,735,961 101,539 - - Community Development - - - - Capital Outlay 54,831 - - 276,560 Debt Service
Interest - - - 24,224 Principal - - - 208,183 Total Expenditures 2,790,792 101,539 53,674 528,160 Excess (deficiency) of Revenues Over
(under) Expenditures (54,001) (12,481) 26,207 68,795

OTHER FINANCING SOURCES (USES)
Transfers Out (129,538) (354) - (160,000) Total Other Financing Sources (uses) (129,538) (354) - (160,000) Net Change in Fund Balance (183,539) (12,835) 26,207 (91,205) Fund Balance, Beginning 3,292,383 587,865 145,520 304,045 Fund Balance, Ending 3,108,844$ 575,030$ 171,727$ 212,840$

CITY OF EL CAJON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds
For the fiscal year ended June 30,2023
Budgeted
126
Unbudgeted
Community
Housing Development Total Nonmajor
In-Lieu State Block Various Special Revenue
Fees CASP Grant HOME Donations Funds
-$ -$ 2,366,550$ 66,501$ -$ 5,813,851$ - - - - - 78,256 245,520 29,240 - - - 274,760 4,248 - - 306,657 - 354,534 - - 90 181 - 271 249,768 29,240 2,366,640 373,339 - 6,521,672 - - - - - 72,867 - - - - - 2,837,500 - 2,901 753,588 149,991 - 906,480 - - 1,737,143 - - 2,068,534 - - - - - 24,224 - - - - - 208,183 - 2,901 2,490,731 149,991 - 6,117,788 249,768 26,339 (124,091) 223,348 - 403,884 - (1,316) (17,105) (2,015) - (310,328) - (1,316) (17,105) (2,015) - (310,328) 249,768 25,023 (141,196) 221,333 - 93,556 306,413 112,109 268,108 12,096,326 311,435 17,424,204 556,181$ 137,132$ 126,912$ 12,317, 659$ 311,435$ 17,517, 760$ Budgeted
127
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 2,861,662$ 2,861,662$ 2,702,916$ (158,746)$ Use of Money and Property - - 33,875 33,875 Total Revenues 2,861,662 2,861,662 2,736,791 (124,871)

EXPENDITURES
Public Works 3,462,736 3,538,403 2,735,961 802,442 Capital Outlay - 65,000 54,831 10,169 Total Expenditures 3,462,736 3,603,403 2,790,792 812,611 Excess (deficiency) of Revenues Over
(under) Expenditures (601,074) (741,741) (54,001) 687,740 OTHER FINANCING SOURCES (USES):

Transfers Out (129,538) (129,538) (129,538) - Total Other Financing Sources (uses) (129,538) (129,538) (129,538) - Net Change in Fund Balance (730,612) (871,279) (183,539) 687,740 Fund Balance, Beginning 3,292,383 3,292,383 3,292,383 - Fund Balance, Ending 2,561,771$ 2,421,104$ 3,108, 844$ 687,740$ 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, 2023
128
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 85,000$ 85,000$ 83,552$ (1,448)$ Use of Money and Property - - 5,506 5,506 Total Revenues 85,000 85,000 89,058 4,058

EXPENDITURES
Public Works 117,152 117,537 101,539 15,998 Total Expenditures 117,152 117,537 101,539 15,998 Excess (deficiency) of Revenues Over
(under) Expenditures (32,152) (32,537) (12,481) 20,056

OTHER FINANCING SOURCES (USES)
Transfers Out (354) (354) (354) - Total Other Financing Sources (uses) (354) (354) (354) - Net Change in Fund Balance (32,506) (32,891) (12,835) 20,056 Fund Balance, Beginning 587,865 587,865 587,865 - Fund Balance, Ending 555,359$ 554,974$ 575,030$ 20,056$ 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, 2023
129
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Fines and Forfeitures 9,000$ 9,000$ 78,256$ 69,256$ Use of Money and Property 2,000 2,000 1,625 (375) Total Revenues 11,000 11,000 79,881 68,881

EXPENDITURES
Public Safety 67,872 67,872 53,674 14,198 Total Expenditures 67,872 67,872 53,674 14,198 Excess (deficiency) of Revenues Over
(under) Expenditures (56,872) (56,872) 26,207 83,079 Net Change in Fund Balance (56,872) (56,872) 26,207 83,079 Fund Balance, Beginning 145,520 145,520 145,520 - Fund Balance, Ending 88,648$ 88,648$ 171,727$ 83,079$ 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, 2023
130
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 518,000$ 518,000$ 594,332$ 76,332$ Use of Money and Property 7,000 7,000 2,623 (4,377) Total Revenues 525,000 525,000 596,955 71,955

EXPENDITURES
Public Safety 40,000 40,000 19,193 20,807 Capital Outlay 375,750 394,982 276,560 118,422 Capital Lease:

Interest 24,223 24,223 24,224 (1) Principal 208,183 208,183 208,183 - Total Expenditures 648,156 667,388 528,160 139,228 Excess (deficiency) of Revenues Over
(under) Expenditures (123,156) (142,388) 68,795 211,183

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 (283,156) (302,388) (91,205) 211,183 Fund Balance, Beginning 304,045 304,045 304,045 - Fund Balance, Ending 20,889$ 1,657$ 212,840$ 211,183$ 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, 2023
131
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Charges for Services -$ -$ 245,520$ 245,520$ Use of Money and Property - - 4,248 4,248 Total Revenues - - 249,768 249,768 Excess (deficiency) of Revenues Over
(under) Expenditures - - 249,768 249,768

OTHER FINANCING SOURCES (USES)
Transfers Out (303,000) (303,000) - 303,000 Total Other Financing Sources (uses) (303,000) (303,000) - 303,000 Net Change in Fund Balance (303,000) (303,000) 249,768 552,768 Fund Balance, Beginning 306,413 306,413 306,413 - Fund Balance, Ending 3,413$ 3,413$ 556,181$ 552,768$ 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, 2023
132
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Charges for Services 28,000$ 28,000$ 29,240$ 1,240$ Total Revenues 28,000 28,000 29,240 1,240

EXPENDITURES
Community Development 7,200 5,884 2,901 2,983 Total Expenditures 7,200 5,884 2,901 2,983 Excess (deficiency) of Revenues Over
(under) Expenditures 20,800 22,116 26,339 4,223

OTHER FINANCING SOURCES (USES)
Transfers Out - (1,316) (1,316) - Total Other Financing Sources (uses) - (1,316) (1,316) - Net Change in Fund Balance 20,800 20,800 25,023 4,223 Fund Balance, Beginning 112,109 112,109 112,109 - Fund Balance, Ending 132,909$ 132,909$ 137,132$ 4,223$ 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, 2023
133
Actual Amounts Variance with
Original Final Budgetary Basis Final Budget

REVENUES
Intergovernmental 1,219,861$ 1,219,861$ 2,366,550$ 1,146,689$ Other - - 15,090 15,090 Total Revenues 1,219,861 1,219,861 2,381,640 1,161,779

EXPENDITURES
Community Development 1,838,926 1,427,854 753,588 674,266 Capital Outlay 792,910 3,324,544 1,737,143 1,587,401 Total Expenditures 2,631,836 4,752,398 2,490,731 2,261,667 Excess (deficiency) of Revenues Over
(under) Expenditures (1,411,975) (3,532,537) (109,091) 3,423,446

OTHER FINANCING SOURCES
Transfers Out (66,212) (54,191) (17,105) 37,086 Total Other Financing Sources (66,212) (54,191) (17,105) 37,086 Net Change in Fund Balance (1,478,187) (3,586,728) (126,196) 3,460,532 Fund Balance, Beginning 268,108 268,108 268,108 - Fund Balance, Ending (1,210,079)$ (3,318,620)$ 141,912$ 3,460, 532$ 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 126 and 127.

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, 2023
134
Actual Amounts Variance with
Original Final Budgetary Basis Final Budget

REVENUES
Intergovernmental 665,010$ 665,010$ 66,501$ (598,509)$ Use of Money and Property - - 306,656 306,656 Other - - 450,401 450,401 Total Revenues 665,010 665,010 823,558 158,548

EXPENDITURES
Community Development 1,243,175 6,292,395 87,991 6,204,404 Total Expenditures 1,243,175 6,292,395 87,991 6,204,404 Excess (deficiency) of Revenues Over
(under) Expenditures (578,165) (5,627,385) 735,567 6,362,952

OTHER FINANCING SOURCES
Transfers Out (2,015) (2,015) (2,015) - Total Other Financing Sources (2,015) (2,015) (2,015) - Net Change in Fund Balance (580,180) (5,629,400) 733,552 6,362,952 Fund Balance, Beginning 12,096,326 12,096,326 12,096,326 - Fund Balance, Ending 11,516,146$ 6,466,926$ 12,829, 878$ 6,362, 952$ 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 126 and 127.

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, 2023
Budgeted Amounts
135

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 the 2021 Taxable Pension Obligation Bonds that financed a portion of the City’s obligations with the California Public Employee’s Retirement System.
136
Pension
Obligation
Bonds
ASSETS
Cash and Investments 1,181,443$
Cash and Investments,
with Fiscal Agent 2
Total Assets 1,181,445$

FUND BALANCE
Restricted:

Debt Service 2$
Committed 1,181,443
Total Fund Balance 1,181,445
Total Liabilities and Fund Balance 1,181,445$
June 30, 2023
Pension Obligation Bonds Debt Service Fund

CITY OF EL CAJON
Balance Sheet
137
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Use of Money and Property -$ -$ 1$ 1$ Total Revenues - - 1 1

EXPENDITURES
General Government - 5,000 2,850 2,150 Debt Service:

Interest - - 3,342,625 (3,342,625) Principal 9,122,874 9,122,874 5,192,000 3,930,874 Total Expenditures 9,122,874 9,127,874 8,537,475 590,399 Deficiency of Revenues (under)
expenditures (9,122,874) (9,127,874) (8,537,474) 590,400 OTHER FINANCING SOURCES (USES):

Transfers In 9,122,874 9,122,874 9,122,874 - Total Other Financing Sources (uses) 9,122,874 9,122,874 9,122,874 - Net Change in Fund Balance - (5,000) 585,400 590,400 Fund Balance, Beginning 596,045 596,045 596,045 - Fund Balance, Ending 596,045$ 591,045$ 1,181, 445$ 1,181, 445$ 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, 2023
138

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 major 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 and budget remain in effect until the project is completed or cancelled. Since annual budgets are not adopted for the capital project funds, budgetary comparison schedules are not presented because comparison of the budgetary amounts to actual revenues and 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. This fund has been combined with a prior year deficit donation fund that was used to fund CIP.

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, improvement, maintenance, and operation of public streets, highways, and their related public facilities for traffic funded with TransNet (half -percent special sales tax ), Specific Street Obligations, 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
City Capital Parks
Improvement Impact
Program Fees
ASSETS
Cash and Investments 10,683,642$ 145,904$
Receivables:

Interest - 718
Intergovernmental - -
Leases 476,027 -
Total Assets 11,159,669$ 146,622$

LIABILITIES
Accounts Payable 6,604$ -$
Total Liabilities 6,604 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - -
Related to Leases 471,350 -
Total Deferred Inflows of Resources 471,350 -

FUND BALANCE
Restricted:

RTCIP Impact Fee - -

RMRA - -
Assigned:

Capital Projects 10,681,715 146,622
Total Fund Balance 10,681,715 146,622
Total Liabilities, Deferred Inflows of
Resources and Fund Balance 11,159,669$ 146,622$ June 30, 2023

CITY OF EL CAJON
Combining Balance Sheet
Nonmajor Capital Projects Funds
140
Total
Public Works Public Safety Nonmajor
Transportation Facilities Capital Projects
Projects Projects Funds
3,486,706$ 3,339,232$ 17,655,484$ 23,553 16,632 40,903 2,259,981 - 2,259,981 - - 476,027 5,770,240$ 3,355,864$ 20,432,395$ 2,330,204$ 450$ 2,337,258$ 2,330,204 450 2,337,258 15,797 - 15,797 - - 471,350 15,797 - 487,147 734,258 - 734,258 4,274,454 - 4,274,454 (1,584,473) 3,355,414 12,599,278 3,424,239 3,355,414 17,607,990 5,770,240$ 3,355,864$ 20,432,395$ 141
City Capital Parks
Improvement Impact
Program Fees

REVENUES
Taxes -$ 6,237$
Intergovernmental - -
Charges for Services - -
Use of Money and Property 76,610 1,446 Other - -
Total Revenues 76,610 7,683

EXPENDITURES
Public Works - -
Capital Outlay 320,184 -
Total Expenditures 320,184 -
Excess (deficiency) of Revenues Over
(under) Expenditures (243,574) 7,683

OTHER FINANCING SOURCES (USES)
Transfers In 500,000 -
Total Other Financing Sources (uses) 500,000 - Net Change in Fund Balance 256,426 7,683 Fund Balance, Beginning 10,425,289 138,939 Fund Balance, Ending 10,681,715$ 146,622$
Nonmajor Capital Projects Funds
For the fiscal year ended June 30, 2023

CITY OF EL CAJON
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances (Deficit)
142
Total
Nonmajor
Public Works Public Safety Capital
Transportation Facilities Projects
Projects Projects Funds
801,118$ -$ 807,355$ 3,905,789 - 3,905,789 37,530 - 37,530 41,768 34,694 154,518 100,000 - 100,000 4,886,205 34,694 5,005,192 460,007 2,870 462,877 5,312,318 338,183 5,970,685 5,772,325 341,053 6,433,562 (886,120) (306,359) (1,428,370) - - 500,000 - - 500,000 (886,120) (306,359) (928,370) 4,310,359 3,661,773 18,536,360 3,424,239$ 3,355,414$ 17,607,990$ 143

144
The Valley of Opportunity

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 the City's automotive and equipment fleets.

Vehicle and Equipment Replacement
This fund accounts for the replacement of the City's automotive and equipment fleets.

Self Insurance
This fund accounts for liability insurance premiums, payment of claims, and to establish reserves against future claims.

Information Technology Services
This fund accounts for the City's information technology services and replacement of equipment.

Other Post-Employment Benefits
This fund accounts for post-employment benefits of the City including annual required healthcare contributions and terminal conversions of vacation and sick time.
145
Vehicle and
Vehicle Equipment Self
Maintenance Replacement Insurance
ASSETS
Current Assets:

Cash and Investments 1,203,294$ 3,253,175$ 8,020,922$ Cash and Investments, Restricted - - 71,050 Total Current Assets 1,203,294 3,253,175 8,091,972 Noncurrent Assets:

Net Pension Asset - - - Capital Assets, Non-depreciable:

Construction in Progress - 714,945 - Capital Assets, Depreciable, Net:

Intangible Right-to-Use Assets - - - Machinery and Equipment - - - Vehicles 9,438 2,404,354 - Total Noncurrent Assets 9,438 3,119,299 - Total Assets 1,212,732 6,372,474 8,091,972

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources related to Pensions 617,793 - 197,387 Deferred Outflows of Resources related to OPEB 25,603 - 6,517 Total Deferred Outflows of Resources 643,396 - 203,904 Total Assets and Deferred Outflows of Resources 1,856,128 6,372,474 8,295,876

LIABILITIES
Current Liabilities:

Accounts Payable 52,616 9,540 14,471 Accrued Interest Payable 8,407 - 2,802 Accrued Liabilities 12,119 - 3,993 Claims Payable - Due within One Year - - 8,876 Deposits Payable - - 800,000 Compensated Absences - Due within One Year 26,865 - - Subscriptions Payable - Due within One Year - - - Bonds Payable - Due within One Year 54,000 - 18,000 Total Current Liabilities 154,007 9,540 848,142 Noncurrent Liabilities:

Claims Payable - - 4,876,875 Compensated Absences 52,526 - - Subscriptions Payable - - - Bonds Payable 1,268,100 - 422,700 Net Pension Liability 908,453 - 141,904 Net OPEB Liability 102,154 - 22,136 Total Noncurrent Liabilities 2,331,233 - 5,463,615 Total Liabilities 2,485,240 9,540 6,311,757

NET POSITION
Net Investment in Capital Assets 9,438 3,119,299 - Restricted for Pension Asset - - - Restricted for Other - - 71,050 Unrestricted (deficit) (638,550) 3,243,635 1,913,069 Total Net Position (629,112)$ 6,362,934$ 1,984, 119$

CITY OF EL CAJON
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
146
Information Other Post
Technology Employment
Services Benefits Total
2,284,984$ 983,548$ 15,745,923$
- - 71,050 2,284,984 983,548 15,816,973
825,514 - 825,514 - - 714,945 2,440,115 - 2,440,115 236,282 - 236,282 - - 2,413,792 3,501,911 - 6,630,648 5,786,895 983,548 22,447,621
1,053,580 - 1,868,760 32,585 - 64,705 1,086,165 - 1,933,465 6,873,060 983,548 24,381,086
92,458 - 169,085 52,454 - 63,663 14,464 - 30,576 - - 8,876 - - 800,000 58,136 - 85,001 533,007 - 533,007 72,000 - 144,000 822,519 - 1,834,208 - - 4,876,875 54,052 - 106,578 1,257,317 - 1,257,317 1,690,800 - 3,381,600 - -
1,050,357
95,490 - 219,780 3,097,659 - 10,892,507 3,920,178 - 12,726,715 886,073 - 4,014,810 825,514 - 825,514 - - 71,050 1,241,295 983,548 6,742,997
2,952,882$ 983,548$ 11,654,371$
147
Vehicle and
Vehicle Equipment Self
Maintenance Replacement Insurance
Operating Revenues:

Charges for Services 2,200,000$ 250,000$ 4,029,000$ Total Operating Revenues 2,200,000 250,000 4,029,000 Operating Expenses:

Salaries and Benefits 721,051 - 250,528 Materials, Services, and Supplies 1,305,796 139,645 1,022,825 Insurance Claims/Premiums - - 3,980,573 Depreciation 6,843 493,332 - Total Operating Expenses 2,033,690 632,977 5,253,926 Operating Income (Loss) 166,310 (382,977) (1,224,926) Nonoperating Revenues (Expenses):

Gain on Disposal of Assets - 360 - Other Revenues 683 - 76,648 Interest Expense and Fiscal Charges (34,452) - (11,484) Total Nonoperating Revenues (Expenses) (33,769) 360 65,164 Income (Loss) before Operating Transfers 132,541 (382,617) (1,159,762) Operating Transfers:

Transfers Out (65,676) - (23,777) Total Operating Transfers (65,676) - (23,777) Change in Net Position 66,865 (382,617) (1,183,539) Net Position (deficit), Beginning (695,977) 6,745,551 3,167,658 Prior period adjustment (note 16) - - - Net position (deficit), beginning as restated (695,977) 6,745,551 3,167,658 Net Position (deficit), Ending (629,112)$ 6,362,934$ 1,984, 119$

CITY OF EL CAJON
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the fiscal year ended June 30, 2023
148
Information Other Post
Technology Employment
Services Benefits Total
3,725,491$ 1,200,000$ 11,404,491$
3,725,491 1,200,000 11,404,491
910,952 948,041 2,830,572
2,154,213 2,520 4,624,999
- - 3,980,573 869,305 - 1,369,480 3,934,470 950,561 12,805,624
(208,979) 249,439 (1,401,133) - - 360 - - 77,331 (89,099) - (135,035) (89,099) - (57,344) (298,078) 249,439 (1,458,477) (115,528) - (204,981) (115,528) - (204,981) (413,606) 249,439 (1,663,458) 2,534,888 734,109 12,486,229
831,600 - 831,600 3,366,488 734,109 13,317,829
2,952,882$ 983,548$ 11,654,371$
149
Vehicle and
Vehicle Equipment Self
Maintenance Replacement Insurance

CASH FLOW FROM OPERATING ACTIVITIES
Receipts from Interfund Charges 2,200,000$ 250,000$ 4,029,000$ Payments to Suppliers (1,365,908) (148,687) (5,007,876) Payments to Employees (758,629) - 1,132,749 Net Cash provided by (used for) Operating Activities 75,463 101,313 153,873

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Other Revenue 683 - 76,648 Transfers to Other Funds (65,676) - (23,777) Repayment of Long-term Borrowing (Principal) (53,700) - (17,900) Repayment of Long-term Borrowing (Interest) (34,537) - (11,512) Net Cash provided by (used for) Noncapital Financing Activities (153,230) - 23,459

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Payment of SBITA Borrowing (Principal) - - - Payment of SBITA Borrowing (Interest) - - - Proceeds from Sale of Vehicles and Equipment - 360 - Acquisition of Vehicles and Equipment - (502,581) - Net Cash (used for) Capital and Related Financing Activities - (502,221) - Net Increase (decrease) in Cash and Cash Equivalents (77,767) (400,908) 177,332 Cash and Cash Equivalents, Beginning 1,281,061 3,654,083 7,914,640 Cash and Cash Equivalents, Ending 1,203,294$ 3,253,175$ 8,091, 972$ Reconciliation of cash and cash equivalents at end of year to the Statement of Net Position:

Cash and Investments 1,203,294$ 3,253,175$ 8,020,922$ Cash and Investments, Restricted - - 71,050 Total Cash and Cash Equivalents at Year-end 1,203,294$ 3,253,175$ 8,091, 972$ Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

Operating Income (Loss) 166,310$ (382,977)$ (1,224,926)$ Adjustments to reconcile Operating Income (loss) to Net Cash provided by Operating Activities:

Depreciation Expense 6,843 493,332 - Pension Related Adjustments (40,705) - (13,006) OPEB Related Adjustments (3,462) - (880) Changes in assets and liabilities:

Decrease in Prepaid Expenses - 36,171 - (Decrease) in Accounts Payable (60,113) (45,213) (13,132) (Decrease) in Accrued Liabilities (4,154) - (4,712) Increase in Deposits Payable - - 8,654 Increase in Claims Payable - - 1,401,875 Increase in Compensated Absences Payable 10,744 - - Increase in Capital Assets (Prior Period Adjustment) - - - Total Adjustments (90,847) 484,290 1,378,799 Net Cash provided by (used for) Operating Activities 75,463$ 101,313$ 153,873$

CITY OF EL CAJON
Combining Statement of Cash Flows
Internal Service Funds
For the fiscal year ended June 30, 2023
150
Information Other Post
Technology Employment
Services Benefits Total
3,725,491$ 1,200,000$ 11,404,491$
(1,285,757) (2,520) (7,810,748) (976,465) (948,041) (1,550,386) 1,463,269 249,439 2,043,357
- - 77,331 (115,528) - (204,981) (71,600) - (143,200) (46,050) - (92,099) (233,178) - (362,949) (573,338) - (573,338) (1,919) - (1,919) - - 360 (831,600) - (1,334,181) (1,406,857) - (1,909,078) (176,766) 249,439 (228,670) 2,461,750 734,109 16,045,643 2,284,984$ 983,548$ 15,816,973$
2,284,984$ 983,548$ 15,745,923$
- - 71,050 2,284,984$ 983,548$ 15,816,973$
(208,979)$ 249,439$ (1,401,133)$ 869,305 - 1,369,480 (69,418) - (123,129) (4,404) - (8,746) 4,000 - 40,171 32,855 - (85,603) (17,764) - (26,630) - - 8,654 - - 1,401,875 26,074 - 36,818 831,600 - 831,600 1,672,248 - 3,444,490 1,463,269$ 249,439$ 2,043,357$
151

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 refuse service fees liened, assessed, and collected for Waste Management.

Heartland Communications Facility Authority
This fund accounts for activities to provide emergency call receiving and dispatching services to participating agencies.

Heartland Fire Training Authority
This fund accounts for activities of the fire-fighting training facility and training courses for personnel of the member agencies.
152

153
The Valley of Opportunity
Heartland Heartland
Special Communications Fire Training
Assessments Facility Authority Authority Total
ASSETS
Cash and Investments 45,818$ 4,898,727$ 1,148,717$ 6,093,262$ Receivables:

Accounts 5,349 79,657 43,106 128,112 Intergovernmental - 278,633 - 278,633 Interest - 25,340 5,802 31,142 Prepaid Items - - - - Total Assets 51,167 5,282,357 1,197,625 6,531,149

LIABILITIES
Accounts Payable and Other Liabilities - 64,633 17,592 82,225 Due to Other Agencies 5,784 - - 5,784 Total Liabilities 5,784 64,633 17,592 88,009

NET POSITION
Restricted for:

Organizations and Other Agencies 45,383 5,217,724 1,180,033 6,443,140 Total Net Position 45,383$ 5,217,724$ 1,180,033$ 6,443,140$

CITY OF EL CAJON
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2023
154
Heartland Heartland
Special Communications Fire Training
Assessments Facility Authority Authority Total

ADDITIONS
Contributions
Other Agencies -$ 3,661,535$ 345,243$ 4,006,778$ Participants - - 151,266 151,266 Investment Earnings - 50,721 11,903 62,624 Assessment Collections for Other Agencies 473,198 - - 473,198 Miscellaneous - 63,967 974 64,941 Total Additions 473,198 3,776,223 509,386 4,758,807

DEDUCTIONS
Payments of Assessments to Other Agencies 486,327 - - 486,327 Program/Project Expenses - 3,553,745 506,805 4,060,550 Total Deductions 486,327 3,553,745 506,805 4,546,877 Net Change in Fiduciary Net Position (13,129) 222,478 2,581 211,930 Net Position, Beginning 58,512 4,995,246 1,177,452 6,231,210 Net Position, Ending 45,383$ 5,217,724$ 1,180,033$ 6,443,140$

CITY OF EL CAJON
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the fiscal year ended June 30, 2023
155

STATISTICAL SECTION
156
1be Valley of Opportunity

STATISTICAL SECTION
The Statistical Section presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the City's overall financial health.

Financial Trends (Pages 158-167)
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Revenue Capacity (Pages 168-174)
These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax .

Debt Capacity (Pages 176-183)
These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

Demographic and Economic Information (Pages 184-185)
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.

Operating Information (Pages 186-190)
These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial statements relates to the services the City provides and the activities it performs.
157
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2014 2015 (1) 2016 2017
Governmental Activities
Net investment in capital assets 210,077,278$ 214,159,409$ 218,963,053$ 217,482,744$ Restricted 61,853,603 65,833,008 58,121,515 57,960,163 Unrestricted 30,515,904 (104,296,561) (94,443,051) (91,791,772) Total Governmental Activities Net Position 302,446,785$ 175,695,856$ 182,641,517$ 183,651,135$ Business-type Activities
Net Investment in Capital Assets 46,121,178$ 38,577,875$ 36,498,175$ 38,505,588$ Restricted - 261,645 231,764 264,273 Unrestricted 6,881,080 14,669,740 21,239,228 19,898,344 Total Business-type Activities Net Position 53,002,258$ 53,509,260$ 57,969,167$ 58,668,205$ Primary Government
Net Investment in Capital Assets 256,198,456$ 252,737,284$ 255,461,228$ 255,988,332$ Restricted 61,853,603 66,094,653 58,353,279 58,224,436 Unrestricted 37,396,984 (89,626,821) (73,203,823) (71,893,428) Total Primary Government Net Position 355,449,043$ 229,205,116$ 240,610,684$ 242,319,340$ Source: City of El Cajon - Finance Department
Notes: (1) 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
158
2018 2019 2020 2021 2022 2023
224,144,319$ 229,501,003$ 225,818,278$ 216,346,514$ 211,216,164$ 211,269,970$ 50,168,314 50,726,336 37,057,587 42,836,002 42,459,738 46,074,372 (97,584,297) (110,074,824) (107,090,485) (107,845,573) (86,013,407) (85,355,430) 176,728,336$ 170,152,515$ 155,785,380$ 151,336,943$ 167,662,495$ 171,988,912$ 43,106,240$ 41,234,527$ 48,223,010$ 47,925,951$ 49,891,775$ 51,782,706$ 357,552 592,205 592,205 592,205 592,205 592,205 18,826,347 22,430,175 17,932,192 20,059,488 24,702,769 34,037,556 62,290,139$ 64,256,907$ 66,747,407$ 68,577,644$ 75,186,749$ 86,412,467$ 267,250,559$ 270,735,530$ 274,041,288$ 264,272,465$ 261,107,939$ 263,052,676$ 50,525,866 51,318,541 37,649,792 43,428,207 43,051,943 46,666,577 (78,757,950) (87,644,649) (89,158,293) (87,786,085) (61,310,638) (51,317,874) 239,018,475$ 234,409,422$ 222,532,787$ 219,914,587$ 242,849,244$ 258,401,379$ Fiscal Year
159
2014 2015 (1) 2016 2017
Expenses
Governmental activities:

General Government 11,388,403$ 9,344,953$ 8,606,868$ 9,205,742$ Public Safety 42,919,265 45,235,084 47,292,321 52,741,903 Public Works 10,796,564 10,806,104 10,984,725 13,175,937 Recreation 4,958,144 5,526,542 5,526,453 3,242,986 Community Development 2,665,013 2,906,824 3,501,648 3,089,380 Interest on Long-Term Debt 792,604 483,777 174,542 55,909 Total Governmental Activities Expenses 73,519,993 74,303,284 76,086,557 81,511,857 Business-type Activities:

Wastewater 17,378,120 15,867,424 16,700,356 19,429,363 Total Business-type Activities Expenses 17,378,120 15,867,424 16,700,356 19,429,363 Total Primary Government Expenses 90,898,113$ 90,170,708$ 92,786,913$ 100,941,220$ Program Revenues
Governmental Activities:

Charges for Services:

General Government 2,416,175$ 1,523,652$ 1,824,092$ 1,653,820$ Public Safety 4,956,285 4,580,713 3,829,943 1,714,929 Public Works 1,270,454 1,067,571 1,198,740 1,145,382 Recreation 1,153,051 992,221 843,635 823,711 Community Development 332,193 1,540,318 1,962,232 1,417,215 Operating Grants and Contributions 6,717,307 6,970,968 6,049,885 6,478,047 Capital Grants and Contributions 23,453,340 14,847,109 7,468,431 5,625,620 To
tal Governmental Activities Revenues 40,298,805 31,522,552 23,176,958 18,858,724 Business-type Activities:

Wastewater
Charges for Services 15,363,078 20,341,567 19,577,156 19,903,017 Total Business-type Activities Revenues 15,363,078 20,341,567 19,577,156 19,903,017 Total Primary Government Revenues 55,661,883$ 51,864,119$ 42,754,114$ 38,761,741$ Net (Expense)/Revenue
Governmental Activities (33,221,188)$ (42,780,732)$ (52,909,599)$ (62,653,133)$ Business-type Activities (2,015,042) 4,474,143 2,876,800 473,654 Total Primary Government Net Expense (35,236,230)$ (38,306,589)$ (50,032,799)$ (62,179,479)$

CITY OF EL CAJON
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
160
2018 2019 2020 2021 2022 2023
8,375,482$ 8,118,423$ 8,360,591$ 8,411,073$ 10,112,686$ 10,220,044$ 58,123,097 64,202,864 66,478,760 63,835,598 50,104,115 67,705,101 14,984,088 17,520,996 18,208,412 18,905,842 15,717,977 16,211,324 4,916,098 4,602,764 7,294,395 4,900,145 7,957,462 10,153,741 4,223,953 4,337,787 4,761,873 9,329,987 3,892,396 4,657,913 50,652 43,072 37,833 1,499,559 3,352,189 3,362,480 90,673,370 98,825,906 105,141,864 106,882,204 91,136,825 112,310,603 17,389,328 20,017,217 23,790,188 21,948,424 21,208,600 23,010,007 17,389,328 20,017,217 23,790,188 21,948,424 21,208,600 23,010,007 108,062,698$ 118,843,123$ 128,932,052$ 128,830,628$ 112,345,425$ 135,320,610$ 2,319,957$ 2,474,624$ 2,889,061$ 3,222,477$ 3,469,892$ 3,081,707$ 2,018,135 2,203,829 2,591,701 2,181,275 2,331,565 2,674,312 1,728,558 1,541,113 1,411,722 1,473,685 1,393,173 1,366,719 679,813
667,450 2,683,986 265,879 4,127,303 4,938,215 1,864,899 3,339,544 2,237,967 8,122,977 2,693,437 3,614,626 7,581,512 6,878,948 6,353,384 8,890,194 7,429,896 7,565,225 3,819,611 6,755,129 3,966,957 4,650,549 4,486,931 4,813,145 20,012,485 23,860,637 22,134,778 28,807,036 25,932,197 28,053,949 20,395,530 21,060,708 21,351,388 24,087,595 28,970,040 32,119,960 20,395,530 21,060,708 21,351,388 24,087,595 28,970,040 32,119,960 40,408,015$ 44,921,345$ 43,486,166$ 52,894,631$ 54,902,237$ 60,173,909$ (70,660,885)$ (74,965,269)$ (83,007,
086)$ (78,075,168)$ (65,204,628)$ (84,256,654)$ 3,006,202 1,043,491 (2,438,800) 2,139,171 7,761,440 9,109,953 (67,654,683)$ (73,921,778)$ (85,445,886)$ (75,935,997)$ (57,443,188)$ (75,146,701)$ (Continued)
Fiscal Year
161
2014 2015 (1) 2016 2017
General Revenues and Changes in Net Position
Governmental Activities:

Taxes
Property Taxes 21,692,259$ 21,360,064$ 21,396,116$ 17,575,902$ Sales Taxes 25,367,434 26,056,239 29,493,906 37,559,282 Franchise Taxes 4,791,459 5,044,461 5,196,514 5,148,007 Transient Lodging Taxes 1,138,761 1,330,117 1,378,472 1,408,750 Business License Taxes 766,515 788,397 775,603 833,371 Intergovernmental, Unrestricted 87,385 828,833 40,931 45,845 Investment Earnings 39,032 54,446 599,306 241,282 Other 801,775 676,603 703,000 821,817 Special Item - Payment to Affected Taxing Entities - (1,234,000) - - Transfer In(out) 145,863 54,944 271,412 28,495 Total Governmental Activities 54,830,483 54,960,104 59,855,260 63,662,751 Business-type Activities:

Investment Earnings 42,103 69,455 187,377 146,614 Other 4,014 5,413,909 1,667,142 107,265 Special Item - Net Loss on Sale of Properties - - - - Transfer In(out) (145,863) (54,944) (271,412) (28,495) Total Business-type Activities (99,746) 5,428,420 1,583,107 225,384 Total Primary Government 54,730,737$ 60,388,524$ 61,438,367$ 63,888,135$ Changes in Net Position
Gover
nmental Activities 21,609,295$ 12,179,372$ 6,945,661$ 1,009,618$ Business-type Activities (2,114,788) 9,902,563 4,459,907 699,038 Total Primary Government 19,494,507$ 22,081,935$ 11,405,568$ 1,708,656$ Source: City of El Cajon - Finance Department
Notes:(1) The City implemented GASB Statement 68 in fiscal year 2015, which had a significant effect on the unrestricted fund balance.

CITY OF EL CAJON
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
162
2018 2019 2020 2021 2022 2023
18,709,738$ 20,147,423$ 20,964,049$ 22,102,541$ 23,485,978$ 24,934,876$ 37,163,462 37,055,679 35,936,128 42,005,039 45,502,199 46,555,665 5,311,723 5,511,422 5,947,736 6,388,777 6,772,687 7,114,259 1,613,926 2,116,816 1,794,920 2,126,234 2,797,308 3,026,644 837,895 843,422 818,288 832,383 735,274 849,581 54,999 50,668 83,545 76,565 4,540,708 3,309,155 402,994 2,645,785 3,159,443 92,406 (2,793,477) 1,306,325 (356,651) 18,233 (64,158) 2,786 18,985 179,948 - - - - - - - - - - 484,433 475,018 63,738,086 68,389,448 68,639,951 73,626,731 81,544,095 87,751,471 144,106 879,492 1,093,630 (70,097) (804,769) 361,060 471,626 43,785 3,835,670 (238,837) 136,867 2,229,723 -
- - - - - - - - (484,433) (475,018) 615,732 923,277 4,929,300 (308,934) (1,152,335) 2,115,765 64,353,818$ 69,312,725$ 73,569,251$ 73,317,797$ 80,391,760$ 89,867,236$ (6,922,799)$ (6,575,821)$ (14,367,135)$ (4,448,437)$ 16,339,467$ 3,494,817$ 3,621,934 1,966,768 2,490,500 1,830,237 6,609,105 11,225,718 (3,300,865)$ (4,609,053)$ (11,876,635)$ (2,618,200)$ 22,948,572$ 14,720,535$ Fiscal Year
163
2014 2015 2016 2017
General Fund
Nonspendable 2,616$ 1,769$ 8,379$ 15,598$ Restricted - - - - Committed 11,415,896 12,101,021 13,052,990 13,052,990 Assigned 3,520,000 6,020,000 6,020,000 14,500,000 Unassigned 12,987,788 12,430,127 16,573,355 14,613,935 Total General Fund 27,926,300$ 30,552,917$ 35,654,724$ 42,182,523$ All Other Governmental Funds
Nonspendable 3,117$ 1,234,000$ -$ 568,839$ Restricted 31,521,762 33,798,874 31,368,390 31,236,465 Committed - - - - Assigned 29,729,317 29,851,850 26,613,467 26,043,452 Unassigned (42,390) - (2,250) (13,157) Total All Other Governmental Funds 61,211,806$ 64,884,724$ 57,979,607$ 57,835,599$ Total Fund Balance 89,138,106$ 95,437,641$ 93,634,331$ 100,018,122$ Source: City of El Cajon - Finance Department

CITY OF EL CAJON
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
164
2018 2019 2020 2021 2022 2023
7,071$ 2,507$ -$ 4,330$ -$ 3,807$ - - - 2,038,034 1,810,152 1,848,717 13,052,990 15,939,481 15,619,455 15,531,197 15,883,202 - 14,500,000 14,500,000 13,612,686 12,461,966 27,073,050 27,312,984 21,239,581 18,617,202 20,120,759 23,642,249 17,281,670 34,091,757 48,799,642$ 49,059,190$ 49,352,900$ 53,677,776$ 62,048,074$ 63,257,265$ -$ -$ -$ -$ -$ -$ 34,195,345 35,871,669 35,927,192 40,848,340 39,851,295 40,735,858 - - - - 596,043 1,181,443 15,847,758 13,360,745 12,595,367 15,322,832 14,942,382 12,599,278 (8,343) (6,348) (38,210) (6,348) (83,806) - 50,034,760$ 49,226,066$ 48,484,349$ 56,164,824$ 55,305,914$ 54,516,579$ 98,834,402$ 98,285,256$ 97,837,249$ 109,842,600$ 117,353,988$ 117,773,844$ Fiscal Year
165
2014 2015 2016 2017
Revenues
Taxes 64,226,217$ 64,639,654$ 60,540,666$ 64,994,212$ Intergovernmental 7,353,362 7,588,943 6,950,884 7,554,839 Licenses and Permits 1,043,011 1,376,417 1,810,129 1,190,944 Fines and Forfeitures 730,257 707,147 614,923 634,882 Special Assessments 385,163 379,048 377,388 368,315 Charges for Services 6,165,821 5,876,605 5,165,405 3,387,982 Use of Money and Property 897,274 1,700,784 1,515,971 1,336,554 Other 3,481,182 6,053,602 6,166,811 3,393,023 Total Revenues 84,282,287 88,322,200 83,142,177 82,860,751 Expenditures
General Government 11,158,991 8,490,159 8,720,888 7,483,195 Public Safety 41,758,874 44,909,375 45,379,458 45,326,731 Public Works 5,196,417 5,161,698 5,695,177 9,930,389 Recreation 4,634,936 5,084,634 5,113,117 3,222,345 Community Development 2,970,194 2,958,140 3,236,546 3,327,458 Capital Outlay 6,443,922 6,269,915 8,907,171 6,982,930 Debt Service: Principal 7,187,000 7,472,000 7,990,000 176,498 Debt Service: Interest & Fiscal Charges 792,604 483,777 174,542 55,909 To
tal Expenditures 80,142,938 80,829,698 85,216,899 76,505,455 Excess (deficiency) of Revenues
Over (under) Expenditures 4,139,349 7,492,502 (2,074,722) 6,355,296 Other Financing Sources (uses)
Sale of Capital Assets - - - - Proceeds from Issuance of Debt - - - - Transfers In 16,101,370 15,070,867 12,427,065 5,454,368 Transfers Out (15,967,585) (15,029,834) (12,155,653) (5,425,873) Total Other Financing Sources (uses) 133,785 41,033 271,412 28,495 Special Item - Payment to Affected Taxing
Entities - (1,234,000) - - Net Change in Fund Balances 4,273,134$ 7,533,535$ (1,803,310)$ 6,383,791$ Debt Service as Percentage of
Noncapital Expenditures 10.83% 10.67% 10.70% 0.33%
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)
166
2018 2019 2020 2021 2022 2023
65,198,527$ 67,830,438$ 66,979,234$ 75,192,420$ 81,225,850$ 83,288,380$ 8,604,212 10,421,364 9,047,131 12,140,641 14,957,123 15,331,941 1,387,579 1,984,864 1,720,324 1,701,436 1,939,791 2,458,242 685,061 573,407 543,091 370,272 504,020 587,731 367,458 366,589 366,681 367,954 369,284 367,380 4,561,823 4,559,913 4,811,503 4,645,205 4,697,880 4,782,026 1,309,683 3,758,860 6,849,675 2,252,063 2,811,221 8,243,257 2,776,383 2,481,587 1,030,115 573,336 701,703 499,641 84,890,726 91,977,022 91,347,754 97,243,327 107,206,872 115,558,598 5,945,279 6,699,620 7,135,491 14,368,326 9,933,170 9,475,876 48,075,169 52,026,698 54,868,132 167,079,011 53,157,288 60,408,599 11,193,499 12,358,617 12,407,958 22,518,337 10,032,091 11,000,825 3,469,092 3,733,382 6,540,475 7,858,891 7,978,063 9,717,316 3,578,
642 3,926,542 4,459,817 13,029,325 4,035,187 4,595,092 13,555,195 13,551,753 6,173,793 3,684,679 7,193,341 11,845,688 181,423 186,484 191,687 197,035 4,855,391 3,375,162 76,147 43,072 18,408 35,372 3,991,685 5,400,183 86,074,446 92,526,168 91,795,761 228,770,976 101,176,216 115,818,741 (1,183,720) (549,146) (448,007) (131,527,649) 6,030,656 (260,143) - - - 5,810,000 - - - - 137,723,000 793,338 - 3,539,200 10,629,962 5,284,107 3,873,700 10,592,013 10,239,333
(3,539,200) (10,629,962) (5,284,107) (3,873,700) (9,890,704) (9,559,334) - - - 143,533,000 1,494,647 679,999 - - - - - - (1,183,720)$ (549,146)$ (448,007)$ 12,005,351$ 7,525,303$ 419,856$

0.36% 0.29% 0.25% 0.10% 9.41% 8.44%
Fiscal Year
167
Fiscal Year Property
Sales and Use
(1) (2) Franchise
Transient
Occupancy
Business
License
Property
Transfer Other Total
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 2023 24,641,905 47,149,997 7,114,259 3,026,644 849,581 401,799 807,355 83,991,540 Source: City of El Cajon - Finance Department
Notes: (1)
(2)
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.

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)
168
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 Ferguson Enterprises Plumbing/Electrical Supplies Ferguson Enterprises Plumbing/Electrical Supplies G&M Oil Plumbing/Electrical Supplies G&M Oil Service Stations HD Supply Service Stations Home Depot Building Materials Home Depot Medical/Biotech Lexus New Motor Vehicle Dealers Hyundai of El Cajon Building Materials Macys Department Stores J & B Materials New Motor Vehicle Dealers Mossy Nissan New Motor Vehicle Dealers Lexus New Motor Vehicle Dealers Mossy Volkswagen New Motor Vehicle Dealers Mercedes Benz Building Materials Motoworld New Motor Vehicle Dealers Mossy Nissan New Motor Vehicle Dealers Sears Department Stores Motoworld New Motor Vehicle Dealers Soco Group Service Stations Sigler Wholesale Distribution Contractors Subaru of El Cajon New Motor Vehicle Dealers Speedway Service Stations Target Discount Department Stores Subaru of El Cajon New Motor Vehicle Dealers Team Kia of El Cajon New Motor Vehicle Dealers Target Discount Department Stores Toyota of El Cajon New Motor Vehicle Dealers Team Kia of El Cajon New Motor Vehicle Dealers Tripton Honda New Motor Vehicle Dealers Team Mazda of El Cajon New Motor Vehicle Dealers United Oil Service Stations Toyota of El Cajon New Motor Vehicle Dealers USA Gas Service Stations Tripton Honda New Motor Vehicle Dealers WW Grainger Electrical Equipment Walmart Discount Department Stores Walmart Discount Department Stores Percent of Fiscal Year Total Paid By Top 25 Accounts = 46.11% 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 2023 Fiscal Year 2014
169
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Apparel Stores 83,364$ 82,324$ 84,241$ 86,123$ 85,294$ 87,675$ 86,541$ 58,955$ 95,714$ 93,908$ General Merchandise 147,430 151,929 155,714 154,451 147,400 134,383 119,974 107,241 113,740 107,667 Food Stores 47,891 47,291 45,809 45,374 47,041 47,961 46,271 51,726 50,827 52,383 Eating and Drinking Places 137,793 143,339 150,819 159,558 164,357 173,666 186,546 169,593 216,080 229,653 Building Materials 209,128 230,531 247,753 261,868 272,995 280,374 323,993 296,446 328,972 363,820 Auto Dealers and Supplies 569,150 610,892 696,517 752,207 780,013 751,463 742,782 727,653 914,137 978,286 Service Stations 353,581 339,384 275,627 243,765 267,201 287,686 212,079 140,676 200,459 234,075 Other Retail Stores 264,852 267,323 280,789 286,048 280,452 291,415 295,436 280,236 347,815 345,122 All Other Outlets 431,732 451,971 479,017 508,471 612,843 626,266 667,280 831,376 900,227 918,328 Total 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$ 3,323,242$ 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)
Fiscal Year
170
Fiscal
Year
Residential
Property
Commercial
Property
Industrial
Property
Other
Property
Unsecured
Property
Taxable
Assessed
Value (1)
Change
from Prior
Year
Direct Tax
Rate (2)
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 2023 8,490,153 1,826,222 663,494 456,258 503,419 11,939,546 8.36% 0.10999 Sources: San Diego County Assessor 2013/14 - 2022/23 Combined Tax Rolls HdL, Coren & Cone
Notes: (1) Exempt values are not included in the Taxable Assessed Value (2) 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)
171
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Basic City and County Levy (1) 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 0.08634 0.08294 0.08145 0.07801 0.08761 0.08477 0.07882 0.07637 0.07310 0.07047 Grossmont Healthcare District Bond 0.02005 0.02005 0.02352 0.02352 0.02352 0.02352 0.02490 0.02490 0.02459 0.02459 Grossmont Union High Bond 0.06167 0.06118 0.06053 0.05717 0.06613 0.06482 0.06704 0.06326 0.06448 0.06180 Grossmont-Cuyamaca Community College 0.04752 0.04650 0.04539 0.04005 0.04671 0.04225 0.04038 0.03797 0.04115 0.03936 La Mesa Spring Valley - General Bond 0.02532 0.02446 0.02363 0.02289 0.02247 0.02194 0.02155 0.02144 0.04779 0.04338 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 0.03405 0.03321 0.03277 0.03964 0.03705 0.03473 0.03411 0.05992 0.05854 0.05533 Total Direct & Overlapping Tax Rates (2) 1.27845 1.27184 1.27079 1.26478 1.28699 1.27553 1.27030 1.28736 1.31315 1.29843 City's Share of 1% Levy per Proposition 13(3) 0.11174 0.11174 0.11174 0.11174 0.11174 0.11174 0.11174 0.11174 0.11174 0.11174 San Diego County Assessor 2013/14 - 2023/24 Tax Rate Table HdL, Coren & Cone
(1)
(2)
(3)
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.

CITY OF EL CAJON
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
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.

Fiscal Year
172
Fiscal Year
Taxes Levied
for the Fiscal
Year Amount
Percentage
of Levy Amount
Percentage
of Levy
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 20,981 9,932,670 96.30 2023 11,318,255 10,981,276 97.02 - 10,981,276 97.02 Source: San Diego County Auditor/Controller, Property Tax Apportionment Report 2022-23 Note: (1) 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 (1)
173
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 258,859,349$ 1 2.10% 258,686,610$ 1 3.44% G K N Aerospace Chem-Tronics Inc 114,414,975 2 0.93% 58,210,912 3 0.77% MF Panda NR Owner California LP 104,296,978 3 0.85% BMF V California Forest Park Fletcher 89,320,219 4 0.73% Bridge WF II California Parkway Club 86,650,000 5 0.70% Kaiser 49,980,803 6 0.41% 49,129,686 4 0.65% Lysinger 1999 Trust 49,296,549 7 0.40%
Broadway 1 Preservation LP 44,206,829 8 0.36% 1041-89 Lexington (California) LP 40,275,577 9 0.33% General Atomics 38,848,200 10 0.32%
Conrad Prebys Trust 115,596,235 2 1.54%
San Diego Forest Park LLC 45,390,000 5 0.60% El Cajon Energy Center LLC 36,011,394 6 0.48% Pacific Gillespie Partners 29,017,143 7 0.39% Helf Properties Inc 26,829,684 8 0.36%
Sears Roebuck And Company 26,609,080 9 0.35% Cox Communications California 25,006,382 10 0.33% Total Top 10 Taxpayers 876,149,479$ 7.12% 670,487,126$ 8.58% City Total Taxable Value (a) 12,300,655,966$ 100.00% 7,514,134,081$ 100% SourceSan Diego County Assessor 2012/13 and 2021/22 Combined Tax Rolls and SBE Non Unitary Tax Roll HdL, Coren & Cone
Fiscal Year 2023 Fiscal Year 2014

CITY OF EL CAJON
Principal Property Tax Payers
Current Fiscal Year and Nine Years Ago
174

175
The Valley of Opportunity
Fiscal Year
Sales Tax
Revenue
Bonds
Capital
Leases Notes Payable
Pension
Obligation
Bonds
Subscriptions
Payable
2014 15,125,000$ -$ 337,000$ -$ -$ 2015 7,710,000 - 280,000 - - 2016 - - - - - 2017 - 1,827,397 - - - 2018 - 1,645,974 - - - 2019 - 1,459,490 - - - 2020 - 1,267,803 - - - 2021 - 1,070,768 - 141,517,800 - 2022 - 1,578,715 - 136,821,800 - 2023 - 1,295,213 - 131,486,600 1,790,324 Source: City of El Cajon - Finance Department
(1) See Demographic and Economic Statistics on page 184 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 72-76.

CITY OF EL CAJON
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
176
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
(1)
9,858,817$ -$ -$ 25,320,817$ 1.23% 9,858,817 1,308,225 - 19,157,042 0.96% 9,858,817 3,768,749 - 13,627,566 0.66% 9,858,817 3,871,418 - 15,557,632 0.73% 9,858,817 7,313,590 - 18,818,381 0.85% 9,858,817 10,393,396 - 21,711,703 0.95% - 9,977,452 - 11,245,255 0.46% - 9,552,774 5,692,200 157,833,542 6.09% - 9,119,178 5,503,200 153,022,893 5.71% - 8,676,476 5,288,400 146,746,689 5.06%

Business-Type Activities
177
Fiscal Year
Pension
Obligation
Bonds Total
Assessed Value
(in thousands)
Percent of
Assessed
Value Per Capita
2014 -$ -$ 7,328,675$ - -$ 2015 - - 7,669,083 - - 2016 - - 8,080,807 - - 2017 - - 8,508,731 - - 2018 - - 8,989,842 - - 2019 - - 9,519,035 - - 2020 - - 10,046,923 - - 2021 147,210,000 147,210,000 10,626,170 1.39% 1,426 2022 142,325,000 142,325,000 11,018,186 1.29% 1,347 2023 136,775,000 136,775,000 11,939,546 1.15% 1,360 Source: City of El Cajon - Finance Department
San Diego County Assessor 2013/14 - 2022/23 Combined Tax Rolls HdL, Coren & Cone
Notes: (1) Details of the City's outstanding debt can be found in note 5 of the financial statements.

CITY OF EL CAJON
Ratios of General Bonded Debt Outstanding(1)
Last Ten Fiscal Years
178
Percent Applicable City’s Share of
Total Debt to City of El Cajon (1) Debt
OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District 19,215,000$ 0.325% 62,449$ Grossmont-Cuyamaca Community College District 363,535,377 18.484% 67,195,879 Grossmont Union High School District 637,181,318 18.982% 120,949,758 Cajon Valley Union School District 173,206,112 47.328% 81,974,989 La Mesa-Spring Valley School District 52,956,610 8.471% 4,485,954 Santee School District 56,142,308 3.163% 1,775,781 Grossmont Healthcare District 236,992,076 17.433% 41,314,829 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 317,759,639$
(2)
TOTAL OVERLAPPING GENERAL FUND DEBT:

San Diego County General Fund Obligations 229,680,000$ 1.801% 4,136,537$ San Diego County Pension Obligation Bonds 277,990,000 1.801% 5,006,600 San Diego County Superintendent of Schools Certificates of Participation 6,935,000 1.801% 124,899 Grossmont Union High School District General Fund Obligations 31,765,000 18.982% 6,029,632 Cajon Valley Union School District Certificates of Participation 14,382,000 47.328% 6,806,713 Santee School District Certificates of Participation 21,639,849 3.163% 684,468 TOTAL OVERLAPPING GENERAL FUND DEBT 22,788,849$ (2) OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): 50,990,000$ 88.368-100% 45,825,974$ (2) TOTAL DIRECT DEBT - City of El Cajon
Pension Obligation Bonds 131,486,600$ 100.000% 131,486,600$ Capital Lease Obligations 1,295,213 100.000% 1,295,213 TOTAL DIRECT DEBT - City of El Cajon 132,781,813$
COMBINED TOTAL DEBT 519,156,275$
Ratios to 2022-23 Assessed Valuation (in thousands of dollars): 11,939,546$ Total Overlapping Tax and Assessment Debt 2.66%
Total Overlapping General Fund Debt 0.19%
Overlapping Tax Increment Debt (Successor Agencies) 0.38% Total Direct Debt 1.11%
Combined Total Debt 4.34%
Source: San Diego County Assessor Data. MuniServices, LLC / an Avenu Insights & Analytics Company Notes: (1)
(2) 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, 2023
179
2014 2015 2016
Net Assessed Valuation 7,328,675$ 7,669,083$ 8,080,807$ State legal debt limit (1) 1,099,301 1,150,362 1,212,121 Less amount of debt applicable to the limit (2):

Sales Tax Revenue Bonds 15,125 7,710 - Notes Payable 337 2,890 -
Capital Lease Obligations - - - Pension Obligation Bonds
Total net debt applicable to limit 15,462 10,600 - Legal debt margin 1,083,839$ 1,139,762$ 1,212,121$ Total net debt applicable to the limit as a
percentage of debt limit 1.41% 0.92% 0.00%
Sources: San Diego County 2013/14 - 2022/23 Tax Rolls
HdL, Coren & Cone
City of El Cajon Finance Department
Notes:
(1)
State law limits indebtedness for California cities to
15% of the assessed valuation of property within the
City.
(2) Details regarding the City's outstanding debt can be found in Note 5 of the Notes to the Basic Financial
Statements on pages 72-76.

Fiscal Year

CITY OF EL CAJON
Legal Debt Margin Information
Last Ten Fiscal Years
(in thousands of dollars)
180
2017 2018 2019 2020 2021 2022 2023
8,508,731$ 8,989,842$ 9,519,035$ 10,046,923$ 10,626,170$ 11,018,185$ 11,939,546$ 1,276,310 1,348,476 1,427,855 1,507,038 1,593,926 1,652,728 1,790,932 - - - - - - - - - - - - - - 1,827 1,646 1,459 1,268 1,071 1,579 1,295 141,518 136,822 131,487
1,827 1,646 1,459 1,268 142,589 138,401 132,782 1,274,483$ 1,346,830$ 1,426,396$ 1,505,770$ 1,451,337$ 1,514,327$ 1,658,150$

0.14% 0.12% 0.10% 0.08% 8.95% 8.37% 7.41%

Fiscal Year

181
2014 2015 2016 2017

NOTE PAYABLE - STATE WATER

RESOURCES CONTROL BOARD
Wastewater Revenues -$ -$ 21,431,675$ 19,985,038$ Less: Operations and Maintenance - - (12,260,836) (14,563,908) Net revenues - - 9,170,839 5,421,130 Debt Service
Principal - - - 184,664 Interest - - - 64,545 Coverage - - - 21.75 REVENUE BONDS (1)
Sales Tax Revenues 8,447,073$ 7,528,077$ 126,155$ -$ Debt Service
Principal 7,130,000 7,415,000 - - Interest 772,600 466,700 - - Coverage 1.07 0.96 - - TAX ALLOCATION BONDS (2)
Property Tax Incremental Revenues -$ -$ -$ -$ Debt Service
Principal - - - - Interest - - - - Pass-through payments - - - - Coverage - - - - Source: City of El Cajon - Finance Department
Notes: (1) The Sales Tax Revenue Bonds (Proposition O - Public Safety Building Bonds) were paid in full in fiscal year 2016.
(2) 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
182
2018 2019 2020 2021 2022 2023
20,910,132$ 21,848,143$ 22,350,809$ 24,087,595$ 28,845,517$ 34,570,827$ (13,833,983) (14,128,459) (20,830,199) (21,948,424) (21,208,600) (18,040,354) 7,076,149 7,719,684 1,520,610 2,139,171 7,636,917 16,530,473 270,557 467,098 415,943 424,678 433,596 442,702 86,995 125,107 176,261 167,527 158,608 149,053

19.79 13.04 2.57 3.61 12.90 27.93 29,487$ 7,420$ 27,459$ 5,858$ -$ - - - - - - - - - - - - - - - -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - .

Fiscal Year
183
Calendar
Year
Population
(1)
Personal Income
(in thousands) (2)
Per Capita
Personal Income
(2)
Unemployment
Rate
(3)
Median Age
(2)
% of Population
25+ with High
School Degree
(2)
% of Population
25+ with
Bachelor's
Degree (2)
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%
2022 104,619 2,897,623 27,696 4.1% 34.8 85.8% 23.5%
Source: HdL, Coren & Cone
Notes: (1) Population: California State Department of Finance. (2) Income, Age, and Education Data: US Census Bureau, most recent American Community Survey. (3) Unemployment Data: California Employment Develoment Department.

CITY OF EL CAJON
Demographic and Economic Statistics
Last Ten Calendar Years
184
Number of
Employees Rank
Percent of
Total
Employment
Number of
Employees Rank
Percent of
Total
Employment
Cajon Valley Union School District (1) 2,025 1 4.51% 1,412 1 2.63% Grossmont-Cuyamaca Community College District (2) 1,011 2 2.25% 712 3 1.33% GKN Aerospace Chem-Tronics Inc 967 3 2.15% 859 2 1.60%
Grossmont UHSD 749 4 1.67% 431 5 0.80%
Taylor Guitars 478 5 1.06% 400 6 0.75%
Avocado Post Acute (Formerly El Dorado Care Center) 435 6 0.97% City of El Cajon 421 7 0.94% 450 4 0.84%
University Mechanical & Engineering 417 8 0.93% 352 8 0.66% Wal-Mart Stores (2 locations) 396 9 0.88% 260 10 0.49%
Country Hills Health Care 332 10 0.74% 357 7 0.67%
The Home Depot 0.00% 339 9 0.63%
Total Top 10 Employers 7,231 16.10% 5,572 10.40%
Total City Labor Force 44,900 53,600
Source: MuniServices, LLC /an Avenu Insights & Analytics Company (Results based on direct correspondence with City's local businesses) 2013-14 previously published City of El Cajon Annual Comprehensive Financial Report City Labor Force: California Employment Development Department Labor Force Data.

Notes: (1) Includes full-time classified and certificated employees in El Cajon only and the district office. (2) 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 2014Fiscal Year 2023
185
Function/Program 2014 2015 2016 2017 2018 (1) 2019 (2) 2020 2021 2022 2023 General Government
City Manager 9.35 14.20 14.75 3.05 3.85 6.35 6.75 5.50 6.00 6.00 City Clerk 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 4.00 City Attorney 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Finance 14.00 11.30 11.50 12.40 13.00 15.50 15.09 13.55 14.00 16.00 Human Resources (2) 0.00 0.00 0.00 0.00 0.00 5.50 5.00 4.00 4.00 5.00 Information Technology (2) 0.00 0.00 0.00 0.00 0.00 9.00 8.00 7.00 7.00 7.00 Administrative Services (2) 4.00 4.00 3.80 16.50 17.00 0.00 0.00 0.00 0.00 0.00 Police
Officers 122.00 122.00 122.00 122.00 124.00 126.00 126.00 126.00 126.00 136.00 Civilians 69.20 70.20 66.20 66.20 65.20 63.20 64.00 63.00 62.00 63.00 Animal Control 5.00 5.00 5.00 5.00 7.00 7.00 6.00 7.00 0.00 0.00 Fire
Firefighters and Officers 72.00 72.00 73.00 59.00 56.00 57.00 57.00 58.00 60.00 60.00 Civilians 2.20 2.20 2.20 2.20 2.70 2.70 3.00 3.00 2.00 2.00 Public Works
Administration and Engineering 14.10 13.80 14.70 14.30 14.40 14.00 13.40 10.70 12.30 12.40 Traffic and Streets Maintenance 24.85 25.05 26.90 22.90 27.95 27.20 26.65 23.45 21.50 15.20 Parks, Facilities, and Vehicle Maintenance 43.10 42.65 40.40 26.65 25.80 25.05 26.20 24.65 25.00 22.80 Wastewater 29.75 30.30 29.70 33.05 33.35 28.25 28.25 30.65 23.70 35.10 Recreation 15.00 16.00 16.00 16.00 41.55 41.55 43.50 43.50 15.50 16.00 Community Development 20.5 18.8 18.9 18.9 21.50 22.00 23.00 19.00 20.00 18.00 Total 450.05 452.50 450.05 423.15 458.30 455.30 456.84 444.00 404.00 420.50 Source: City of El Cajon - Finance Department
Note: (1)
(2)

Beginning in fiscal year 2018, part-time and seasonal employees were included in total full-time equivalent employee count.

Beginning in fiscal year 2019, Administrative Services was split into Human Resources and Information Technology.

CITY OF EL CAJON
Full-time Equivalent City Government Employees
By Function/Program
Last Ten Fiscal Years
186

187
The Valley of Opportunity
Function/Program 2014 2015 2016 2017
Community Development
Building permits issued 1,534 1,971 2,016 2,063
Building inspections conducted 2,522 9,529 9,608 5,631
Police
Physical arrests 5,088 6,589 5,121 4,861
Traffic violations 3,653 3,100 2,953 2,434
Parking violations 2,764 3,191 2,498 2,411
Animal Control (2)
Licenses issued 2,025 1,985 1,978 1,819
Adoptions 951 971 816 1,071
Fire
Emergency responses 12,087 12,833 13,616 14,462
Fires extinguished (1) 368 348 409 279
Fires investigated (1) 368 96 165 38
Inspections 535 813 632 1,827
Abatement compliance 418 2,770 88 146
Public works
Street resurfacing (miles) 6 5 9 4
Recreation
Facility rentals 367 334 348 362
Classes and other bookings 1,704 1,596 1,134 1,218
Attendance 88,875 113,924 92,871 96,455
Wastewater
Average daily sewage transportation
(thousands of gallons) 7,941 7,728 6,980 7,421
Source: City of El Cajon Departments
Notes: (1) Data presented are for fires within El Cajon city limits. (2) As of October 2020, San Diego Humane Society was
contracted to provide animal shelter care and services at the El Cajon Animal Shelter.

Fiscal Year

CITY OF EL CAJON
Operating Indicators by Function/Program
Last Ten Fiscal Years
188
2018 2019 2020 2021 2022 2023
2,208 2,501 2,520 1,976 2,064 2,401
6,919 11,142 9,580 4,500 3,687 6,122
4,754 6,385 6,432 4,208 4,462 5,720
2,244 2,003 1,907 1,593 1,186 1,905
2,443 2,797 2,266 1,955 2,026 2,157
1,679 1,340 1,471 510 0 0
1,064 1,054 1,530 491 0 0
15,562 15,802 14,993 15,753 16,840 17,334
157 125 360 496 407 443
10 125 360 2 6 5
1,849 609 106 864 670 270
73 230 228 49 47 89
5 8 27 19 17 10
378 386 182 8 397 390
1,281 1,433 811 3,487 1,255 1,480
100,677 105,226 113,552 117,600 106,887 111,298
6,458 7,321 7,630 6,420 6,486 7,779
Fiscal Year
189
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 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 59 59 59 59 59 53 58
Undercover vehicles 30 34 34 31 31 31 31 31 46 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 9 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 4 1 1 1 0 0 1 1
Public works
Streets (miles) 194 194 194 194 194 194 194 194 194 196 Streetlights 2,356 2,360 2,360 2,688 2,732 2,732 2,732 2,732 3,267 3,350 Traffic signals 112 112 112 112 113 113 113 113 113 113 Parks and recreation
Acreage 120 120 120 120 120 120 120 120 120 120
Community/recreation centers 6 6 6 7 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 7 7 7 7 8 8 8
Outdoor gym 0 0 0 2 2 2 2 2 2 3
Tennis courts 1 1 1 1 1 1 1 1 2 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 4 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 2 2 2 2 2 2 2
Outdoor multi-use sports area 0 0 0 0 0 0 0 1 2 2
Dog park 1 1 1 3 3 3 3 4 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 82 82 82 82 82 82 82
Source City of El Cajon Departments
Notes:(1) Three (3) ambulances were sold in fiscal year 2017.

CITY OF EL CAJON
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
190

CITY OF EL CAJON

ACKNOWLEDGEMENTS
Finance Department
Lilia Calip
Joseph Edwards
Luca Gonzales
Beth Heath
Lee Ann Jones-Santos
Jason Kang
Martha Lopez
Jonathan Mendoza
Amy Pinion, CPA
Alma Ramirez
Autumn Reberger
Martin Reid
Mara Romano
Clay Schoen, CPA
April Solis
Heidi Steppler

CITY OF EL CAJON
200 Civic Center Way
El Cajon, California 92020
www.elcajon.gov
The Valley of Opportunity
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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

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, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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 statem ents in accordance with accounting principles generally accepted in the Un ited 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. 735 E. Ca rn egie Dr . Suite I 00
San Bern ard ino. CA 92408
909 889 087 I T
909 889 536 1 F
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ROGERS , ANDERSON , MALOD Y & SC OTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
STA BILITY . ACCURACY . TRUST .

14 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 audi t conducted in accordance with GAAS and Government Auditing Standards 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 likelih ood 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 and Government Auditing Standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstat ement 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 condi tions 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.

Required Supplementary Information

Accounting principles generally accepted in the Un ited States of America r equire 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.

15 Supplementary Information

Our audit was conducted for the purpose of forming opi nions 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 bu dgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The supplementary information is the responsib ility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedur es 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 themse lves, and other additional procedur es 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 inclu de 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 th e other information and consider whether a material inconsistency exists between the other information a nd the financial statements, or the other information otherwise appears to be materially misstated. If, ba sed on the work perform ed, we conclude that an uncorrected material misstatement of the other information exists, we ar e 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 29, 2024 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, cont racts, 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 29, 2024

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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, 2023. 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 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. Ca rn egie Dr . Suite I 00
San Bern ard ino. CA 92408
909 889 087 I T
909 889 536 1 F
ramscpa. net

ROGERS , ANDERSON , MALOD Y & SC OTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
STA BILITY . ACCURACY . TRUST .

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3. We agreed the current year information pr esented in the accompanying Appropriations Limit 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 Worksheet for the year ended June 30, 2023.

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 29, 2024

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CITY OF EL CAJON

APPROPRIATIONS LIMIT WORKSHEET
2022 - 2023

Per Capita Personal Income change 7.55%
Population change:

City population growth -0.76%
CPI change converted to a ratio 1.0755
Population change converted to a ratio 0.9924
Calculation of growth factor 1.0673
2021-2022 Appropriations Limit 182,952,820 $
2022-2023 Appropriations Limit
($182,952,820 X 1.0673)* 195,270,338 $
* = allow for rounding

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March 29, 2024

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, 2023, and have issued our report thereon dated March 29, 2024. 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 9, 2023, 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 fr ee 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 in ternal 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. Ca rn egie Dr . Suite I 00
San Bern ard ino. CA 92408
909 889 087 I T
909 889 536 1 F
ramscpa. net

ROGERS , ANDERSON , MALOD Y & SC OTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
STA BILITY . ACCURACY . TRUST .

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Significant Risks Identified

We have identified the possibility of the following significant risks:

Management's override of internal c ontrols 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. 96, Subscription Based Information Technology Arrangements, during 2023. 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 signif icant unusual transactions and (2) the effect of significant accounting policies in controversial or emer ging 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 assump tions about future events. Certain accounting estimates are particularly sensitive because of thei r significance to the financ ial 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 investm ents 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 t he key factors and assumptions used to develop the estimated useful lives in determining that it is reas onable in relation to the financial statements taken as a whole.

Management's estimate of the net OPEB liability, related deferred inflow s 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 lease and subscription liabilities, right-to-use assets, and asset amortization is based on present value calculations using certai n terms and assumptions in the lease/subscription agreements and estimated useful lives of assets in accordance with genera lly accepted accounting principles. We evaluated the key factors and assumptions used to develop the lease and subscription related estimates in determining that it is reasonabl e 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 assump tions. 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/subscription amortization, leases/subscription 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 wi th 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 aud it, other than those that we belie ve are trivial, and communicate them to the appropriate level of management. Furthe r, professional standards require us to also communicate the effect of uncorrect ed 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 29, 2024.

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 principl es 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 responsibilit y 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 i ndividual nonmajor fund financial statements, the budgetary comparison schedules, which accompany t he 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 prepar e 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 audi t or perform other procedures on this other information and we do not express an opinion or provide any assurance on it.

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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 wi th the information, or m anner 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.

San Bernardino, California

The Valley of Opporttmity
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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, 2023 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. GAAP).

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 29, 2024:

Financial Statements
• We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated May 9, 2023, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP.
• 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.
• All related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP.

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 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.AII 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.
• We have evaluated all of our lease agreements and have given you our assessment as to whether each agreement is subject to GASB Statement No. 87, Leases and GASB Statement No. 96, Subscription Based Information Technology Arrangements • 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 .

City of El Cajon • 200 Civic Center Way • El Cajon, CA 92020 (619) 441-1721 • Fax (619) 588 -1190
www.cityofelcajon.us
The Valley of Opportunity Finance
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o There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements.

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 concentrat ions known to managemen t that are required to be disclosed in accordance with GASB Statement No. 62 (GASB- 62), Codification of Account ing and Financial Reporting Guidance Contained in Pre-November 30, City ofE I Cajon • 200 Civic Center Way • El Cajon, CA 92020 (619) 441 -1721 • Fax (619) 588-1190
www.cityofelcajon.u s
The Valley of Oppo,.ttmity Finance
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Porat .fesg 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. • 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 responsib ility 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.

City of El Cajon • 200 Civic Center Way• El Cajon, CA 92020 (619) 441 -1721 • Fax (619) 588 -1190
www.cityofelcajon.us
The Valley of Oppm·ttmity Finance
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• 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.

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 ;:md 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 oft e specialists.

City of El Cajon • 200 Civic Center Way • El Cajon, CA 92020 (619) 441 -1721 • Fax (619) 588-1190
www.cityofelcajon .us
City Council
Agenda Report
Agenda Item 13.

DATE: April 23, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Graham Mitchell, City Manager
SUBJECT: Lease Agreements with the Chaldean Community Council to Operate a Social Service Operation and a Small Business Incubator Program at 405 E. Lexington Avenue
RECOMMENDATION:

That the City Council adopts the next Resolution, in order, approving two lease agreements:

Lease Agreement with the Chaldean Community Council for 4,155 square feet at 405 E.

Lexington Avenue to provide social services; and

1. Lease Agreement with the Chaldean Community Council for 3,000 square feet at 405 E.

Lexington Avenue to operate a small business incubation program.

2. BACKGROUND:

On January 31, 2024, the City purchased 405 E. Lexington Avenue in order to lease it to the Chaldean Community Council for the purposes of providing social services to El Cajon residents and operating a small business incubator program. The building was purchased with approximately $2.5 million in American Rescue Plan Act (ARPA) funds.

While the City was negotiating the terms of the building’s purchase, the City issued a Request for Proposals (RFP) to operate a small business incubation program and negotiated with the building’s existing tenant—the Chaldean Community Council (CCC)—for a lease agreement.

Staff presents two lease agreements with the CCC for City Council consideration. The following sections describe the major provisions of each proposed agreement.

Lease Agreement – Social Services
For the past seven years, the CCC has been providing assistance to the community with basic social services. Their primary customers are recent immigrants to the United States. Relying on direction provided by the City Council during closed session agenda discussions, staff prepared a proposed lease agreement.

The agreement leases 4,155 square feet of 405 E. Lexington Avenue to the CCC to provide social services to El Cajon residents and to support the CCC’s operations, including a radio show. In the five-year agreement, the City will charge $1 per year. The agreement also has an early termination clause allowing either party to terminate the lease with six months' written notice.
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The CCC, per the lease, agrees to the following major provisions:

Maintain a $25,000 security deposit with the City,
Responsible for basic repairs and maintenance of the building and exterior of the property, not including the structural and mechanical systems (foundation, exterior walls, roof, heating, air conditioning, electrical, and plumbing), which will be maintained by the City, Maintain the property as a smoke-free premises,
Pay up to 60% of the utilities and maintain those utilities in the CCC’s name, Provide various insurance policies, and
Assume any possessory interest tax liability.

Lease Agreement – Small Business Incubator
On October 2023, the City issued a RFP for a small business incubator program. Only the CCC responded to the RFP. The City Council reviewed the RFP response on December 12, 2023 and directed staff to develop an agreement with the CCC to operate the program. A copy of the RFP’s scope of work and the CCC’s response is incorporated into the proposed lease agreement.

The lease agreement for the small business incubator program is similar to the social services lease. However, under this lease, there is no annual lease payment and no utility payment requirement. Also, the proposed agreement obligates the CCC reporting requirements. These requirements include quarterly written reports and an annual report before the City Council with the following information:

Businesses applied to participate in the incubator program (name, type, ownership, location, etc.),
Businesses accepted to participate in the incubator program (name, type, ownership, location, etc.),
Detail of services provided to each business,
Businesses “graduating” from the incubator program (name, type, ownership, location, etc.),
Track business success post-graduation for three years, and Outreach activities aimed at promoting diversity, equity, and inclusion of businesses participating in the incubator program.

Further, the agreement requires that a minimum of 75 percent of the participating businesses in the incubator program be El Cajon-based businesses, there are no conflicts of interest in terms of ownership by CCC board members and that there is an effort made in ensuring the program is marketed to a diverse population of residents in El Cajon.

Because the primary intent of the second floor lease is to support the incubator program, it is separate from the first floor lease. In the event that the second floor lease is terminated for any reason, the incubator program will no longer be operated by CCC.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The leasing of an existing publicly-owned building for social services and business incubator program is exempted from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15301.
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FISCAL IMPACT:

The lease agreements shift many of the costs associated with the management of the property to the CCC. However, there remains a minimum of $250,000 in building repairs that the City will innate and fund. Further, the lease requires that the City contribute 40 percent of the utility costs, which is estimated to be approximately $10,000 per year. Also, regular inspections, management of the property, and management of the lease will require an allocation of staff hours, which are undetermined at this time.

Prepared By: Graham Mitchell, City Manager
Reviewed By:

Approved By: Graham Mitchell, City Manager
Attachments
Resolution
Lease - Social Services
Lease - Business Incubator

El Cajon City CouncilApril 23, 2024

El Cajon City Council
April 23, 2024