Agenda packet — El Centro City Council, March 1, 2022 (part 1 of 2)

AGENDA

CITY OF EL CENTRO

CITY COUNCIL
TUESDAY, MARCH 1, 2022
City Hall Regular Meeting 11:30 AM

CITY HALL

COUNCIL CHAMBERS
1275 MAIN STREET
EL CENTRO, CA 92243
City of El Centro Page 1
The public may attend in person. Anyone in attendance must wear a mask and practice social distancing. The public may choose to be outside subject to the same requirements. Any member of the public attending in person and wishing to make a comment is asked to complete a speaker slip and follow the instructions below regarding “Notice to the Public”. Any member of the public is invited to submit public comments in advance of the meeting to be answered at the meeting. Please email your questions to [email protected] or call 760-337-4515 by March 1, 2022.

COUNCIL MEMBERS, STAFF AND THE PUBLIC MAY ATTEND VIA ZOOM.

To participate and make a public comment via Zoom or telephone, please raise your hand, speak up and introduce yourself.

Join Zoom Meeting:
https://us02web.zoom.us/j/94760874143?pwd=cTJGdU9OR1ZWV3hJVDdJaUdEeVVkUT09 Optional dial-in number: 1 (669) 900-6833
Meeting ID: 947 6087 4143 Passcode: 430223
Public comments via zoom are subject to the same time limits as those in person.

Mayor & Council Members may be reached at (760) 336-8989 Mayor: Tomás Oliva City Manager: Marcela Piedra
Mayor Pro-Tem: Martha Cardenas-Singh City Attorney: Elizabeth Martyn Evans Council Members: Edgard Garcia City Clerk: Norma Wyles
Sylvia Marroquin
Cheryl Viegas-Walker
11:30 A.M CLOSED SESSION - CONFERENCE ROOM "A"
ROLL CALL (Open Session)
CLOSED SESSION PUBLIC COMMENT:

Any member of the public wishing to address the City Council on any matter appearing on the closed session may do so at this time. Unless the Mayor extends the time limit, remarks shall be limited to three (3) minutes. Additional Agenda City Council of the City of El Centro March 1, 2022 City of El Centro Page 2
opportunities for Public Comments will be given during and at the end of the meeting.

CITY COUNCIL ADJOURNS INTO CLOSED SESSION

CITY COUNCIL CLOSED SESSION

LABOR NEGOTIATIONS
The City Council will recess to closed session pursuant to Government Code 54957.6 to meet with Agency Representatives Marcela Piedra, City Manager, Dulce Bedolla, Human Resources Director and Patrick Clark, consulting negotiator, for the purpose of considering employee compensation in the form of fringe benefits, or, as applicable, other matters dealing with mandatory subjects within the scope of representation pursuant to Government Code 3504; negotiating with all bargaining units within the City.

POSSIBLE LITIGATION AGAINST THE CITY
A point has been reached where, in the opinion of the City Council upon the advice of its legal counsel, and based upon existing facts and circumstances, there is a significant possibility of initiation of litigation against the City under Govt. Code Section 54956.9(d)(2) based upon two claims, both for accidents involving their vehicles and City vehicles:1) Dana Sharpe; and 2) Courtney Kastoll.

PUBLIC SAFETY
Upon the advice of legal counsel, the City Council will recess to closed session pursuant to Govt. Code Section 54957(a) regarding matters that pose a threat to essential public facilities and services and that could affect public access to such facilities or services.

NOTICE TO THE PUBLIC
This is a public meeting. If there is an item on the agenda on which you wish to be heard, you are asked to complete a blue speaker slip and submit it to the City Clerk prior to the start of the meeting. Persons wishing to address the Council are not required to identify themselves (Gov’t Code § 54953.3); however, this information assists the Mayor by ensuring that all persons wishing to address the Council are recognized and also assists the City Clerk in preparing the City Council meeting minutes. When the item is announced and your name is called by the Mayor, please step to the podium and state your name for the record. Unless the Mayor extends the time, there is a three (3) minute time limit for each public presentation. If you wish to address the Council concerning any other matter not appearing on the agenda, you may do so during the public comment portion of the agenda.
* Any information provided on the “Speaker Slip” is voluntary and will be public record.

Agenda City Council of the City of El Centro March 1, 2022 City of El Centro Page 3
RECONVENE FOR OPEN SESSION 6:00 P.M.
6:00 P.M. OPEN SESSION

ALL TIMES ARE APPROXIMATE AND MAY VARY
CALL TO ORDER:

ROLL CALL BY CITY CLERK

PLEDGE OF ALLEGIANCE

INVOCATION
6:05-6:10 CITY ATTORNEY REPORT ON CLOSED SESSION
6:10-6:30 PRESENTATIONS AND ANNOUNCEMENTS BY MAYOR

1. Retirement Recognition - Luis Hernandez, Police Officer - 27 years of service

2. Presentation by Captain Perkins - Naval Air Facility

3. Presentation by Dr. Lennor Johnson, Imperial Valley College President 6:30-6:35 PUBLIC COMMENTS
6:35-6:40 CONSENT AGENDA
Consent agenda items are approved by one motion. Council members or members of the public may pull consent items to be considered separately at a time determined by the Mayor.

4. 2nd Reading and Adoption of Ordinance No. 22-01, ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF EL CENTRO REPEALING AND
READOPTING CITY CODE CHAPTER 12 IN ITS ENTIRETY TO PROVIDE

FOR MANDATORY RECYCLING AND ORGANIC WASTE DISPOSAL
REDUCTION, waive reading and adopt by title only.

5. Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CENTRO CONFIRMING THE CONTINUATION OF THE

LOCAL STATE OF EMERGENCY AND THE STATE OF EMERGENCY
PROCLAIMED BY GOVERNOR NEWSOM ON MARCH 4, 2020 AND

AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF THE CITY
COUNCIL FOR THE PERIOD MARCH 1, 2022 THROUGH APRIL 1, 2022.

Agenda City Council of the City of El Centro March 1, 2022 City of El Centro Page 4
6:40-7:00 PUBLIC HEARING

6. Public Hearing to Increase Taxicab Rates
PRESENTATION: Richard L. Romero, Director of Finance
RECOMMENDATION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO SETTING MAXIMUM TAXICAB RATES IN THE CITY OF EL CENTRO PURSUANT TO ARTICLE III OF CHAPTER 27 OF THE EL CENTRO

CITY CODE
7:00-7:45 NEW BUSINESS

7. Presentation of the City of El Centro Annual Comprehensive Financial Report (ACFR) for Fiscal Year Ending June 30, 2021
PRESENTATION: Richard L. Romero - Director of Finance
RECOMMENDATION:

Accept the independent auditor’s report (Moss, Levy & Hartzheim) for the fiscal year end June 30, 2021 financial statements for the City of El Centro (“the City”).

8. Discussion and any necessary action regarding the acceptance of 2021 Housing Element Annual Report
PRESENTATION: Angel Hernandez, Interim Director of Community Development
RECOMMENDATION:

Staff recommends that the City Council accept the City’s Annual Housing Element Progress Report on the Implementation of the Housing Element and direct that the report be submitted to the Governor’s Office of Planning and Research and the California Department of Housing and Community Development

9. Discussion and any necessary action regarding the adoption of revised City Policy Statement 112 regarding Environmental Preferable Procurement.

PRESENTATION: Abraham Campos, PE - Public Works Director/City Engineer RECOMMENDATION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO RESCINDING PRIOR RESOLUTIONS AND ADOPTING THIS RESOLUTION AMENDING POLICY NO. 112 REGARDING

ENVIRONMENTAL PREFERABLE PROCUREMENT
Agenda City Council of the City of El Centro March 1, 2022 City of El Centro Page 5

10. Discussion and any necessary action regarding the submittal of the 2020-2021 HOME Investment Partnerships Program Grant Application
PRESENTATION: Adriana Nava, Community Services Director RECOMMENDATION:

Adopt Resolution No. 22- , A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO APPROVING THE SUBMITTAL OF AN APPLICATION

FOR FUNDING TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND

COMMUNITY DEVELOPMENT UNDER THE HOME INVESTMENT
PARTNERSHIPS PROGRAM; AND, IF SELECTED FOR SUCH FUNDING,

AUTHORIZING THE EXECUTION OF AN AGREEMENT, ANY AMENDMENTS

THERETO, AND OF ANY RELATED DOCUMENTS NECESSARY TO

PARTICIPATE IN THE HOME INVESTMENT PARTNERSHIPS PROGRAM

11. Conversion of Baseball Diamonds to Football Fields at Swarthout Park PRESENTATION: Adriana Nava, Community Services Director RECOMMENDATION:

Discussion and related action regarding the conversion of baseball/softball diamonds to football fields at Swarthout Park.

12. Sale of Surplus and Obsolete Firearms
PRESENTATION: Chief Brian Johnson, Police Department
RECOMMENDATION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO, AMENDING RESOLUTION NO. 12-116 SECTION 8 AND PROVIDING FOR THE SALE OF SURPLUS AND OBSOLETE FIREARMS.

13. Discussion and any necessary action regarding the cancellation of the March 15, 2022 City Council meeting.

PRESENTATION: Tomás Oliva, Mayor
RECOMMENDATION:

Direction from City Council regarding the cancellation of the March 15, 2022 City Council meeting.

LEGISLATIVE ACTION
Agenda City Council of the City of El Centro March 1, 2022 City of El Centro Page 6
7:45-8:00 DEPARTMENT REPORT:

14. Utility Box Art Project Update – Adriana Nava, Community Services Director

15. Direction regarding upcoming policies and ordinances for the April 5, 2022 City Council Meeting Agenda – Elizabeth Martyn, City Attorney

INFORMATIONAL ITEMS

16. Claim filed with the City of El Centro by Dana L. Sharpe on January 11, 2022.

17. Claim filed with the City of El Centro by Courtney R. Kastoll on January 5, 2022.
8:00-8:30 TASK FORCE REPORTS AND MAYOR - COUNCIL MEMBER

REPORTS
8:30-8:40 CITY MANAGER REPORT

ADJOURNMENT
Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet will be available for public inspection at the Office of the City Clerk, 1275 Main Street, El Centro, California 92243, Monday-Friday during normal business hours.

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, you should contact the office of the City Clerk at (760)337-4515. Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangement to assure accessibility to this meeting.

City Council of the City of El Centro Meeting: 03/01/22 11:30 AM 1275 Main Street Department: City Council
El Centro, CA 92243 Category: Recognition
Prepared By: Elizabeth Zarate
SCHEDULED Department Head: Tomás Oliva
PRESENTATION (ID # 5438) DOC ID: 5438
Retirement Recognition - Luis Hernandez, Police Officer - 27 years of service
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City Council of the City of El Centro Meeting: 03/01/22 11:30 AM 1275 Main Street Department: City Clerk's Office
El Centro, CA 92243 Category: Presentation
Prepared By: Norma Wyles
SCHEDULED Department Head: Norma Wyles
PRESENTATION (ID # 5364) DOC ID: 5364
Presentation by Captain Perkins - Naval Air Facility
ATTACHMENTS:
• NAF El Centro CO's Community Address 2021 Year in Review (PDF) 2 Packet Pg. 8

UNCLASSIFIED

FOR OFFICIAL USE ONLY
CAPT Bill Perkins
Commanding Officer, NAF El Centro, CA
Community update
2021: Year in Review

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Attachment: NAF El Centro CO's Community Address 2021 Year in Review (5364 : Captain

UNCLASSIFIED

UNCLASSIFIED
NAF El Centro Mission Statement
The mission of Naval Air Facility El Centro is to support the combat training and readiness of the Warfighter. This includes air operations support to operational fleet and training squadrons as well as squadrons from other services (USMC, USA, USAF).

Vision
The vision for Naval Air Facility El Centro is to be the Navy’s premier tactical training air installation - providing world class operations, world class facilities and the highest quality of life for our personnel and their families.

We are trusted partners with our local community across Imperial Valley.

Warfighting
Warfighters
Building the Future Navy
Sustain the Fleet
Enable the Warfighter
Support the Family
Mission and Vision

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Attachment: NAF El Centro CO's Community Address 2021 Year in Review (5364 : Captain

UNCLASSIFIED

UNCLASSIFIED
• Pilot Production
– CNATRA: 1042 new pilots
• Naval Aviation Enterprise support
• Homeland Defense
• NATO / Key Partner Integration
• Unmanned systems
• Critical joint drills
• Virtual Airshow
• Diamond Anniversary
Key Operational Milestones 2021

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Attachment: NAF El Centro CO's Community Address 2021 Year in Review (5364 : Captain

UNCLASSIFIED

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Attachment: NAF El Centro CO's Community Address 2021 Year in Review (5364 : Captain

UNCLASSIFIED

UNCLASSIFIED
• Fence line to protect Flat Tail Horned Lizard habitat and reduce illegal incursions into active bombing ranges (lasers in use).

Range Safety and
Environmental Stewardship

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Attachment: NAF El Centro CO's Community Address 2021 Year in Review (5364 : Captain

UNCLASSIFIED

UNCLASSIFIED
• Pilot Production
• USMC and USAF Integration
• NATO / Key Partner Integration
• Festival of Flight
• Continue joint drills
• Economic Impact Study
• Environmental Stewardship and Range Utilization
2022 Outlook

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Attachment: NAF El Centro CO's Community Address 2021 Year in Review (5364 : Captain Discussion

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Attachment: NAF El Centro CO's Community Address 2021 Year in Review (5364 : Captain City Council of the City of El Centro Meeting: 03/01/22 11:30 AM 1275 Main Street Department: City Clerk's Office
El Centro, CA 92243 Category: Presentation
Prepared By: Norma Wyles
SCHEDULED Department Head: Norma Wyles
PRESENTATION (ID # 5453) DOC ID: 5453
Presentation by Dr. Lennor Johnson, Imperial Valley College President
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City Council of the City of El Centro Meeting: 03/01/22 11:30 AM 1275 Main Street Department: City Clerk's Office
El Centro, CA 92243 Category: Ordinance
Prepared By: Norma Wyles
SCHEDULED Department Head: Norma Wyles
ACTION ITEM (ID # 5439) DOC ID: 5439
2nd Reading and Adoption of Ordinance No. 22-01,

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO REPEALING AND READOPTING CITY CODE
CHAPTER 12 IN ITS ENTIRETY TO PROVIDE FOR

MANDATORY RECYCLING AND ORGANIC WASTE DISPOSAL
REDUCTION, waive reading and adopt by title only.

CITY MANAGER’S RECOMMENDATION:
2nd Reading and Adoption of Ordinance No. 22-01, ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF EL CENTRO REPEALING AND READOPTING CITY CODE CHAPTER 12 IN ITS ENTIRETY TO PROVIDE FOR MANDATORY RECYCLING AND ORGANIC WASTE DISPOSAL REDUCTION, waive reading and adopt by title only.

ATTACHMENTS:
• ORDINANCE NO. 22-01 SB1383 (PDF)
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02/2022/A22‐0021/Ordinance/SB1382/00083636.1
ORDINANCE NO. 22-01

AN ORDINANCE OF THE CITY OF EL CENTRO REPEALING AND
READOPTING CITY CODE CHAPTER 12 IN ITS ENTIRETY TO PROVIDE

FOR MANDATORY RECYCLING AND ORGANIC WASTE DISPOSAL

REDUCTION
The City Council of the City of El Centro does ordain as follows:

Section 1: Purpose
The City finds and declares:
(a) State recycling law, Assembly Bill 939 of 1989, the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000, et seq., as amended, supplemented, superseded, and replaced from time to time), requires cities and counties to reduce, reuse, and recycle (including composting) Solid Waste generated in their cities to the maximum extent feasible before any incineration or landfill disposal of waste, to conserve water, energy, and other natural resources, and to protect the environment.
(b) State recycling law, Assembly Bill 341 of 2011 (approved by the Governor of the State of California on October 5, 2011, which amended Sections 41730, 41731, 41734, 41735, 41736, 41800, 42926, 44004, and 50001 of, and added Sections 40004, 41734.5, and 41780.01 and Chapter 12.8 (commencing with Section 42649) to Part 3 of Division 30 of, and added and repealed Section 41780.02 of, the Public Resources Code, as amended, supplemented, superseded and replaced from time to time), places requirements on businesses and Multi-Family property owners that generate a specified threshold amount of Solid Waste to arrange for recycling services and requires City to implement a Mandatory Commercial Recycling program.
(c) State organics recycling law, Assembly Bill 1826 of 2014 (approved by the Governor of the State of California on September 28, 2014, which added Chapter 12.9 (commencing with Section 42649.8) to Part 3 of Division 30 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time), requires businesses and Multi-Family property owners that generate a specified threshold amount of Solid Waste, Recycling, and Organic Waste per week to arrange for recycling services for that waste, requires City to implement a recycling program to divert Organic Waste from businesses subject to the law, and requires City to implement a Mandatory Commercial Organics Recycling program.
(d) SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, requires Cal Recycle to develop regulations to reduce organics in landfills as a source of methane. The regulations place requirements on multiple entities including Cities, residential households, Commercial Businesses and business owners, Commercial Edible Food Generators,

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 02/2022/A22‐0021/Ordinance/SB1382/00083636.1
haulers, Self-Haulers, Food Recovery Organizations, and Food Recovery Services to support achievement of Statewide Organic Waste disposal reduction targets. (e) SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, requires City to adopt and enforce an ordinance or enforceable mechanism to implement relevant provisions of SB 1383 Regulations. This ordinance will also help reduce food insecurity by requiring Commercial Edible Food Generators to arrange to have the maximum amount of their Edible Food, that would otherwise be disposed, be recovered for human consumption. (f) The City Council of the City of El Centro has determined that adoption of this Ordinance will serve the health, safety and public welfare of the community.

Section 2. Chapter 12 is repealed in its entirety and readopted to read as follows:

ARTICLE I. COLLECTION AND DISPOSAL
Sec. 12-1. Definitions.

For the purpose of this chapter, the following words and phrases are defined and shall be construed as hereinafter set forth, regardless of whether or not such terms are capitalized, unless it is apparent from the context that a different meaning was intended. If a term or word is not specifically defined herein but is defined in the California Integrated Waste Management Act of 1989 (California Public Resources Code Sections 40000 et seq.) it shall have the meaning prescribed therein. All terms shall be construed in accordance with the requirements of state law as set out in Section 1 above.

Animal waste means manure, fertilizer, or any form of solid excrement produced by any and all forms of domestic animals or commercial livestock.

Bin means a rigid container with hinged lids and wheels with a capacity of at least one (1) cubic yard and less than ten (10) cubic yards.

Black Container has the same meaning as in 14 CCR Section 18982.2(a)(28) referring to a gray container and shall be used for the purpose of storage and collection of Black Container Waste.

Black Container Waste means Solid Waste that is collected in a Gray Container that is part of a three-container Organic Waste collection service that prohibits the placement of Organic Waste in the Gray Container as specified in 14 CCR Sections 18984.1(a) and (b), or as otherwise defined in 14 CCR Section 17402(a)(6.5).

Blue Container has the same meaning as in 14 CCR Section 18982.2(a)(5) and shall be used for the purpose of storage and collection of Source Separated Recyclable Materials or Source Separated Blue Container Organic Waste
Business means any person or entity that possesses or is required to possess a business registration certificate, as stated in section 16-19.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 3 CalRecycle means the State of California's Department of Resources Recycling and Recovery, and, as this department wasstructured prior to January 1, 2010, the California Integrated Waste Management Board or CIWMB.

Cart means a wheeled container of appropriate material with a hinged lid and wheels serviced by an automated or semi-automated truck with a capacity of no less than 30- and no greater than 101-gallons.

City means the City of El Centro.

City Clerk means the City Clerk of the City of El Centro, and authorized deputies.

City Enforcement Official means the City Manager or its authorized Designee(s) who is/are partially or whole responsible for enforcing the ordinance.

City Manager means the City Manager of the City of El Centro or designee.

Collect or collection means physical possession, transport, and removal ofsolid waste from City.

Collection charge means a charge for the collection of solid waste, recyclable, and organic materials that shall be imposed on the owner or occupant of each residential premise or commercial premises to which service is made available. The amount of such charge shall be fixed and changed from time to time and shall be collected at such time and in such manner as prescribed by the City Council. The charge so fixed shall be a civil debt due and owing to the City or solid waste collector from the owner or occupant of the residential premise or commercial premises to which the service is made available. The City Council hereby specifically finds and determines that the periodic collection of solid waste recyclable and organic materials from all residential premises and commercial premises benefits all occupants and residents of the City, provides for the health, safety and welfare of all persons in the City and, therefore, all such occupants or owners are liable for the payment of collection service provided for hereunder, whether or not any such owner or occupant utilizes of such collection service.

Commercial business or premises means premises upon which business activity is conducted, including but not limited to retail sales, services, wholesale operations, manufacturing and industrial operations, but excluding residential premises upon which business activities are conducted when such activities are permitted under applicable zoning regulations and are not the primary use of the property. Notwithstanding any provision to the contrary in this ordinance or City Code, premises upon which the following uses (as defined in the City Code) are occurring shall be deemed to be commercial premises: adult residential facilities, assisted living facilities, convalescent homes, dormitories, extended stay motels, group residential facilities, group care facilities, hotels, and motels. A Multi-Family Residential Dwelling that consists of fewer than five (5) units is not a Commercial business for purposes of implementing this ordinance.

Commercial Generator means any legal entity, except a special event, that generates solid waste at a commercial or industrial facility, that may include businesses; charitable or nonprofit organizations, including hospitals, educational institutions, and civic or religious organizations;

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 4 governmental organizations, agencies, or entities; and nonresidential tenants or entities that lease or occupy space. "Commercial Generator" also includes the City and its facilities and nonresidential properties. The entity that is the commercial generator is the commercial account holder.

Commercial Edible Food Generator includes a Tier One or a Tier Two Commercial Edible Food Generator as defined in this Section 12-1 of this ordinance or as otherwise defined in 14 CCR Section 18982(a)(73) and (a)(74). For the purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators pursuant to 14 CCR Section 18982(a)(7).

Community Composting means any activity that composts green material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and Compost on-site at any one time does not exceed 100 cubic yards and 750 square feet, as specified in 14 CCR Section 17855(a)(4); or, as otherwise defined by 14 CCR Section 18982(a)(8).

Compliance Review means a review of records by City to determine compliance with this ordinance.

Compost has the same meaning as in 14 CCR Section 17896.2(a)(4), which stated, as of the effective date of this ordinance, that “Compost” means the product resulting from the controlled biological decomposition of organic Solid Wastes that are Source Separated from the municipal Solid Waste stream, or which are separated at a centralized facility.

Composting means the controlled biological decomposition of organic wastes that are source separated from the solid waste stream.

Composting center, station or facility a facility the principal function of which is to receive and to process organic waste through composting.

Construction and demolition debris and C&D and construction waste means solid waste generated at a premises that is directly related to construction or demolition activities occurring thereon.

Container means any and all types of receptacles, including carts, bins and roll-off boxes.

Contamination means (A) all materials other than those defined as recyclable and/or organic materials that were placed in a container designated for recyclable materials or were collected by a solid waste collector with recyclable materials; (B) all materials other than those defined as organic materials that were placed in a container designated for organic materials or were collected by a solid waste collector with organic materials; or (C) recyclable materials, and organic materials in the case of a food service establishment, that were placed in a container designated for refuse or were collected by a solid waste collector with refuse.

Council means the City Council of the City of El Centro.

C&D means construction and demolition debris.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 5 Days means calendar days unless otherwise provided.

Designee means a City staff member or an entity that the City contracts with or otherwise arranges to carry out any of the City’s responsibilities of this ordinance as authorized in 14 CCR Section 18981.2. A Designee may be a staff member, government entity, joint powers authority, a hauler, a private entity, or a combination of those entities.

Disposal means the ultimate disposition of solid waste collected at a landfill or otherwise in full regulatory compliance. "Disposal" does not include recycling or organic materials processing.

Edible Food means food intended for human consumption, or as otherwise defined in 14 CCR Section 18982(a)(18). For the purposes of this ordinance or as otherwise defined in 14 CCR Section 18982(a)(18), “Edible Food” is not food waste or Solid Waste if it is recovered and not discarded. Nothing in this ordinance or in 14 CCR, Division 7, Chapter 12 requires or authorizes the Recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code.

Enforcement Action means an action of the City to address non-compliance with this ordinance including, but not limited to, issuing administrative citations, fines, penalties, or using any other remedies available by law. This ordinance may be enforced by the City Manager or Designee.

Excluded Waste means hazardous substance, hazardous waste, infectious waste, designated waste, volatile, corrosive, medical waste, infectious, regulated radioactive waste, and toxic substances or material that facility operator(s), which receive materials from the City and its generators, reasonably believe(s) would, as a result of or upon acceptance, transfer, processing, or disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be disposed of in Class III landfills or accepted at the facility by permit conditions, waste that in City, or its Designee’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose City, or its Designee, to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Single-Family or Multi-Family Solid Waste after implementation of programs for the safe collection, processing, recycling, treatment, and disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code. Excluded Waste does not include used motor oil and filters, household batteries, universal wastes, and/or latex paint when such materials are defined as allowable materials for collection through the City’s collection programs and the generator or customer has properly placed the materials for collection pursuant to instructions provided by City or its Designee for collection services.

Food Distributor means a company that distributes food to entities including, but not limited to, Supermarkets and Grocery Stores, or as otherwise defined in 14 CCR Section 18982(a)(22).

Food Facility has the same meaning as in Section 113789 of the Health and Safety Code.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 6 Food Recovery means actions to collect and distribute food for human consumption that otherwise would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).

Food Recovery Organization means an entity that engages in the collection or receipt of Edible Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food Recovery either directly or through other entities or as otherwise defined in 14 CCR Section 18982(a)(25), including, but not limited to:
(1) A food bank as defined in Section 113783 of the Health and Safety Code; (2) A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code; and,
(3) A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code.

A Food Recovery Organization is not a Commercial Edible Food Generator for the purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR Section 18982(a)(7).

If the definition in 14 CCR Section 18982(a)(25) for Food Recovery Organization differs from this definition, the definition in 14 CCR Section 18982(a)(25) shall apply to this ordinance.

Food Recovery Service means a person or entity that collects and transports Edible Food from a Commercial Edible Food Generator to a Food Recovery Organization or other entities for Food Recovery, or as otherwise defined in 14 CCR Section 18982(a)(26). A Food Recovery Service is not a Commercial Edible Food Generator for the purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR Section 18982(a)(7).

Food Service Provider means an entity primarily engaged in providing food services to institutional, governmental, Commercial, or industrial locations of others based on contractual arrangements with these types of organizations, or as otherwise defined in 14 CCR Section 18982(a)(27).

Food Scraps means all food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. Food Scraps excludes fats, oils, and grease when such materials are Source Separated from other Food Scraps Food-Soiled Paper is compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, pizza boxes, and milk cartons.

Food wastes means Food Scraps, Food-Soiled Paper and Compostable Plastics.

Franchisee means any solid waste collector authorized by the City Council pursuant to the procedures established in this chapter.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 7 Green Container has the same meaning as in 14 CCR Section 18982.2(a)(29) and shall be used for the purpose of storage and collection of Source Separated Green Container Organic Waste.

Green waste means leaves, grass clippings, brush, branches, and other forms of organic materials generated from landscapes or gardens, which have been source separated from other solid waste. Green waste is a subset of organic materials and excludes hazardous materials.

Grocery Store means a store primarily engaged in the retail sale of canned food; dry goods; fresh fruits and vegetables; fresh meats, fish, and poultry; and any area that is not separately owned within the store where the food is prepared and served, including a bakery, deli, and meat and seafood departments, or as otherwise defined in 14 CCR Section 18982(a)(30).

Hazardous material includes any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government. The term "hazardous material" includes, without limitation, any material or substance which is: (i) petroleum or oil or gas or any direct or derivate product or byproduct thereof; (ii) defined as a "hazardous waste," "extremely hazardous waste" or "restricted hazardous waste" under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140, of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); (iii) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act); (iv) defined as a "hazardous material," "hazardous substance," or "hazardous waste" under Sections 25501(j) and (k) and 25501.1 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (v) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter

6.7 (Underground Storage of Hazardous Substances); (vi) "used oil" as defined under Section 25250.1 of the California Health and Safety Code; (vii) asbestos; (viii) listed under Chapter 11 of Division 4.5 of Title 22 of the California Code of Regulations, or defined as hazardous or extremely hazardous pursuant to Chapter 10 of Division 4.5 of Title 22 of the California Code of Regulations; (ix) defined as waste or a hazardous substance pursuant to the Porter-Cologne Act, Section 13050 of the California Water Code; (x) designated as a "toxic pollutant" pursuant to the Federal Water Pollution Control Act, 33 U.S.C. Section 1317; (xi) defined as " hazardous waste" pursuant to the Federal Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq. (42 U.S.C. § 6903); (xii) defined as a "hazardous substance" pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 6901); (xiii) defined as "Hazardous Material" pursuant to the Hazardous Materials Transportation Act 29 U.S.C. Section 5101, et seq.: or (xiv) defined as such or regulated by any "Superfund" or "Superlien" law, or any other federal, state or local law, statute, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning Hazardous Materials and/or oil wells and/or underground storage tanks and/or pipelines, as now, or at any time hereafter, in effect.

Hauler Route means the designated itinerary or sequence of stops for each segment of the Jurisdiction’s collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5).

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 8 Inspection means a site visit where City reviews records, containers, and an entity’s collection, handling, recycling, or landfill disposal of Organic Waste or Edible Food handling to determine if the entity is complying with requirements set forth in this ordinance, or as otherwise defined in 14 CCR Section 18982(a)(35).

Large Event means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event. If the definition in 14 CCR Section 18982(a)(38) differs from this definition, the definition in 14 CCR Section 18982(a)(38) shall apply to this ordinance.

Large Venue means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation of the venue facility. For purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12, a site under common ownership or control that includes more than one Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue. If the definition in 14 CCR Section 18982(a)(39) differs from this definition, the definition in 14 CCR Section 18982(a)(39) shall apply to this ordinance.

Local Education Agency means a school district, charter school, or county office of education that is not subject to the control of City or county regulations related to Solid Waste, or as otherwise defined in 14 CCR Section 18982(a)(40).

Mixed Waste Organic Collection Stream or Mixed Waste means Organic Waste collected in a container that is required by 14 CCR Sections 18984.1, 18984.2 or 18984.3 to be taken to a High Diversion Organic Waste Processing Facility or as otherwise defined in 14 CCR Section 17402(a)(11.5) Green Container” has the same meaning as in 14 CCR Section 18982.2(a)(29) and shall be used for the purpose of storage and collection of Source Separated Green Container Organic Waste.

Mixed waste processing means the separation and sorting of recyclables and other recoverable materials from refuse at a material recovery facility where commingled loads ofsolid waste are processed.

Multi-Family Residential Dwelling or “Multi-Family” means of, from, or pertaining to residential premises with five (5) or more dwelling units. Multi-Family premises do not include hotels, motels, or other transient occupancy facilities, which are considered Commercial Businesses. Multi-family dwelling includes apartment buildings, mobile home parks, trailer parks, and condominium buildings. A Multi-Family Residential Dwelling that consists of fewer than five (5) units is not a Commercial business for purposes of implementing this ordinance.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 9 Multi-family generator means tenants, residents, other occupants, and custodians or janitors of multi-family dwellings. Except as otherwise determined, for condominium units the owner of the multi-family generator is the customer and account holder.

Non-Compostable Paper includes but is not limited to paper that is coated in a plastic material that will not breakdown in the composting process, or as otherwise defined in 14 CCR Section 18982(a)(41).

Notice of Violation (NOV) means a notice that a violation has occurred that includes a compliance date to avoid an action to seek penalties, or as otherwise defined in 14 CCR Section 18982(a)(45) or further explained in 14 CCR Section 18995.4.

Occupant includes every owner, tenant or person in possession of, who has the care and control of or the inhabitant of, an inhabited residence.

Organic materials or waste means Solid Wastes containing material originated from living organisms and their metabolic waste products, including but not limited to food, green material, landscape and pruning waste, organic textiles and carpets, lumber, wood, Paper Products, Printing and Writing Paper, manure, biosolids, digestate, and sludges or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined by 14 CCR Section 18982(a).

Organic materials collector means any person or persons, firm, partnership, joint venture, association or corporation engaged in the collection or transportation of organic materials generated in the City.

Organic materials processing facility means a permitted facility where organic material is sorted, mulched, or separated for the purposes of recycling, reuse or composting in compliance with applicable law and regulations.

Organic Waste Generator means a person or entity that is responsible for the initial creation of Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(48).

Owner means the person holding legal title to the real property constituting the premises to which solid waste, targeted recyclable materials, and/or organic materials collection service is provided.

Paper Products include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR Section 18982(a)(51).

Permit means written authority granted by the City to any solid waste collector as evidenced by contract, franchise, certificate or other writing issued pursuant to this chapter.

Person means any individual, firm, association, organization, partnership, corporation, business trust, joint venture, the United States, the State of California, the County of Imperial, cities, and special purpose districts.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 10 Premises means any land or building where any type of materials subject to this chapter are generated or accumulated.

Printing and Writing Papers include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined in 14 CCR Section 18982(a)(54).

Prohibited Container Contaminants means the following: (i) discarded materials placed in the Blue Container that are not identified as acceptable Source Separated Recyclable Materials for the City’s Blue Container; (ii) discarded materials placed in the Green Container that are not identified as acceptable Source Separated Green Container Organic Waste for the City’s Green Container; (iii) discarded materials placed in the Black Container that are acceptable Source Separated Recyclable Materials and/or Source Separated Green Container Organic Wastes to be placed in City’s Green Container and/or Blue Container; and, (iv) Excluded Waste placed in any container.

Receptacle means a container used for the temporary collection and storage of solid waste, whose contents are periodically transferred to a larger container from which a solid waste collector directly collects the solid waste.

Recovered Organic Waste Products means products made from California, landfilldiverted recovered Organic Waste processed in a permitted or otherwise authorized facility, or as otherwise defined in 14 CCR Section 18982(a)(60).

Recovery means any activity or process described in 14 CCR Section 18983.1(b), or as otherwise defined in 14 CCR Section 18982(a)(49).

Recycled-Content Paper means Paper Products and Printing and Writing Paper that consists of at least 30 percent, by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR Section 18982(a)(61).

Recyclable material or recyclables means solid waste that is source separated, segregated, or recovered through mixed waste processing, some potential economic value, and is set aside, handled, packaged, or offered for collection in a manner different from refuse in order to allow it to be processed for recycling.

Recycle or recycling means the processing of recyclable materials for the purpose of returning them to the economy in the form of raw materials for new, reused, or reconstituted products. The collection, transportation or disposal of solid waste not intended for, or capable of, reuse is not recycling.

Recycling center, station or facility means a permitted or licensed facility whose principal function is to receive, store, convert, separate, or transfer recyclable materials for processing in compliance with applicable law and regulations.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 11 Recycling collector means any person or persons, firm, partnership, joint venture, association or corporation engaged in the collection and transportation of recyclable materials generated in the city.

Recycling operator means a person or persons, firm, partnership, joint venture, association or corporation engaged in the collection and recycling of recyclable materials.

Refuse means solid waste or debris, except sewage, construction and demolition debris, recyclables, and/or organic materials placed in source-separated containers for collection.

Renewable Gas means gas derived from Organic Waste that has been diverted from a California landfill and processed at an in-vessel digestion facility that is permitted or otherwise authorized by 14 CCR to recycle Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(62).

Residence or Residential premises means premises upon which dwelling units exist, including, without limitation, single-family and multi-family dwellings, apartments, boarding or rooming houses, condominiums, mobile homes and accessory dwelling units. Notwithstanding any provision to the contrary in this ordinance or the City Code, premises upon which the following uses are occurring shall not be deemed to be residential premises, and rather shall be deemed to be commercial premises: adult residential facilities, assisted living facilities, convalescent homes, dormitories, extended stay motels, group residential facilities, hotels, motels, and any other businesses not specifically listed that may be classified as commercial premises (as opposed to residential) as determined by City on a case by case basis.

Restaurant means an establishment primarily engaged in the retail sale of food and drinks for on-premises or immediate consumption, or as otherwise defined in 14 CCR Section 18982(a)(64).

Roll-off box means solid waste collection containers of 10-yards or larger.

Route Review means a visual Inspection of containers along a Hauler Route for the purpose of determining Container Contamination, and may include mechanical Inspection methods such as the use of cameras, or as otherwise defined in 14 CCR Section 18982(a)(65).

Rubbish includes, but is not restricted to, all non-biodegradable waste or debris such as paper, cardboard, grass, tree or shrub trimmings, rugs, straw, clothing, wood or wood products, crockery, glass, rubber, metal, plastic, construction waste and debris and other similar materials.

SB 1383 means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a Statewide effort to reduce emissions of short-lived climate pollutants as amended, supplemented, superseded, and replaced from time to time.

SB 1383 Regulations or SB 1383 Regulatory means or refers to, for the purposes of this ordinance, the Short-Lived Climate Pollutants: Organic Waste Reduction regulations developed

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 12 by CalRecycle and adopted in 2020 that created 14 CCR, Division 7, Chapter 12 and amended portions of regulations of 14 CCR and 27 CCR.

Salvage means to obtain, either for compensation or other consideration, directly from the transferor thereof, any recyclable material prior to the placement of the same in the solid waste stream or the disposal or discarding thereof whether by collecting, or causing to be collected, the same from the transferor thereof or by the transferor thereof transporting the same to the salvager.

Source Separated Blue Container Organic Waste means Source Separated Organic Wastes that can be placed in a Blue Container that is limited to the collection of those Organic Wastes and Non-Organic Recyclables as defined in Section 18982(a)(43), or as otherwise defined by Section 17402(a)(18.7).

Salvager includes any person engaged in salvaging recyclable material prior to the disposal or discarding of the same in the solid waste stream and includes the person generating the recyclable material if done by such person's own employees or any subsidiary thereof. Salvager does not include a nonprofit entity including, but not limited to, churches, schools, community organizations or groups obtaining recyclable materials for purposes such as, but not limited to, fundraising activities, rehabilitation and training programs.

Scavenging means the uncontrolled and/or unauthorized removal of solid waste, designated recyclable material or recoverable materials, and/or organic materials. Such activity is unlawful and is a misdemeanor punishable by up to six (6) months in jail and one thousand dollars ($1,000.00) in civil penalties under City Ordinance 12-34.95 and Chapter 9, Section 41950 of the California Integrated Waste Management Act of 1989.

Segregate means source separation of any of the following: the placement of recyclable materials, organic materials, and refuse each in separate and designated containers; the binding of recyclable materials separately from other waste material; the physical separation from each other of recyclable materials, organic materials, and refuse.

Self-Hauler means a person, who hauls Solid Waste, Organic Waste or recyclable material he orshe has generated to another person. Self-hauler also includes a person who back-hauls waste, or as otherwise defined in 14 CCR Section 18982(a)(66). Back-haul means generating and transporting Organic Waste to a destination owned and operated by the generator using the generator’s own employees and equipment, or as otherwise defined in 14 CCR Section 18982(a)(66)(A).

Single-Family means of, from, or pertaining to any residential premises with fewer than five (5) units.

Solid Waste has the same meaning as defined in State Public Resources Code Section 40191, which defines Solid Waste as all putrescible and nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semi-solid wastes, and other discarded solid and semisolid wastes, with the exception that Solid Waste does not include any of the following wastes:

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 13 (1) Hazardous waste, as defined in the State Public Resources Code Section 40141. (2) Radioactive waste regulated pursuant to the State Radiation Control Law (Chapter 8 (commencing with Section 114960) of Part 9 of Division 104 of the State Health and Safety Code).
(3) Medical waste regulated pursuant to the State Medical Waste Management Act (Part 14 (commencing with Section 117600) of Division 104 of the State Health and Safety Code). Untreated medical waste shall not be disposed of in a Solid Waste landfill, as defined in State Public Resources Code Section 40195.1. Medical waste that has been treated and deemed to be Solid Waste shall be regulated pursuant to Division 30 of the State Public Resources Code.

Solid Waste Collector shall mean one or more separate entities with which the City contracts for the pick-up, removal, and legal disposition of Solid Waste.

Source Separated means materials, including commingled recyclable materials, that have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or processing those materials for recycling or reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products, which meet the quality standards necessary to be used in the marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of the ordinance, Source Separated shall include separation of materials by the generator, property owner, property owner’s employee, property Manager, or property Manager’s employee into different containers for the purpose of collection such that Source Separated materials are separated from Black Container or other Solid Waste for the purposes of collection and processing.

Source Separated Green Container Organic Waste means Source Separated Organic Waste that can be placed in a Green Container that is specifically intended for the separate collection of Organic Waste by the generator, excluding Source Separated Blue Container Organic Waste, carpets, Non-Compostable Paper, and textiles.

Source Separated Recyclable Materials means Source Separated Non-Organic Recyclables and Source Separated Blue Container Organic Waste.

Special event means a community, public, commercial, recreational, or social event which may serve food or drink, and which may require a permit from the City. "Special events" may include the temporary or periodic use of a public street, publicly owned site or facility, privately owned site or facility, or public park. "Special event" includes the legal entity responsible for the special event, including but not limited to the owner, Manager, or organizer, which may be the City. “Special event” includes a Large Event.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 14 Streets means the public and private streets, ways and alleys, except interstate highways, as the same now or may hereafter exist within the City.

Supermarket means a full-line, self-service retail store with gross annual sales of two million dollars ($2,000,000), or more, and which sells a line of dry grocery, canned goods, or nonfood items and some perishable items, or as otherwise defined in 14 CCR Section 18982(a)(71).

Tier One Commercial Edible Food Generator means a Commercial Edible Food Generator that is one of the following:
(1) Supermarket.
(2) Grocery Store with a total facility size equal to or greater than 10,000 square feet. (3) Food Service Provider.
(4) Food Distributor.
(5) Wholesale Food Vendor.

If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this ordinance.

Tier Two Commercial Edible Food Generator means a Commercial Edible Food Generator that is one of the following:
(1) Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet.
(2) Hotel with an on-site Food Facility and 200 or more rooms. (3) Health facility with an on-site Food Facility and 100 or more beds. (4) Large Venue.
(5) Large Event.
(6) A State agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet.
(7) A Local Education Agency facility with an on-site Food Facility.

If the definition in 14 CCR Section 18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(74) shall apply to this ordinance.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 15 Uncontainerized Green Waste and Yard Waste Collection Service or “Uncontainerized Service” means a collection service that collects green waste and yard waste that is placed in a pile or bagged for collection on the street in front of a generator’s house or place of business for collection and transport to a facility that recovers Source Separated Organic Waste, or as otherwise defined in 14 CCR Section 189852(a)(75).

Transferor includes any person generating recyclable material who, for compensation or other consideration, donates, sells or otherwise conveys or transfers title thereto and possession thereof to a salvager and does not discard the same as solid waste. Transferor does not include a resident who conveys or transfers residential recyclable, or organic material, whether for consideration or as a donation, to a salvager or any nonprofit entity including, but not limited to, churches, schools, community organizations or groups.

Truck means any truck, trailer, semi-trailer, conveyance or vehicle used, or intended to be used, for the purpose of collecting solid waste and/or recyclable or organic material or to haul or transport solid waste and/or recyclable or organic material.

Wholesale Food Vendor means a business or establishment engaged in the merchant wholesale distribution of food, where food (including fruits and vegetables) is received, shipped, stored, prepared for distribution to a retailer, warehouse, distributor, or other destination, or as otherwise defined in 14 CCR Section 189852(a)(76).

Wood wastes means lumber and wood products but excludes painted wood, wood treated with chemicals and pressure-treated wood. Wood waste is a subset of organic materials and excludes hazardous materials.

Yard wastes means leaves, grass clippings, brush, branches, and other forms of organic materials generated from landscapes or gardens, which have been source separated from other solid waste. Yard waste is a subset of organic materials and excludes hazardous materials.

Sec. 12-2. Mandatory residential, commercial and industrial collection.

Except as otherwise provided in this chapter, all solid waste generators shall provide for solid waste collection from one (1) or more haulers with a City franchise or permit.

Sec. 12-3. Authority of City Council to issue permits or franchises for solid waste collection. (a) Pursuant to California Public Resources Code Section 40059, as the same may be amended from time to time, or any successor provision or provisions thereto, and the police power, pursuant to Article II, § 7 of the California Constitution, the City shall have, and hereby retains, the authority to issue permits, including exclusive permits or franchises, for solid waste collector services, as provided for in this chapter and may, as a condition for issuing such permits, require a bond from the solid waste collector in an amount determined by the City Council to insure the faithful performance of such collection, transportation and disposal in accordance with this chapter and the terms and conditions imposed by the City Council. In the event that any solid waste collector shall fail or refuse to conform to the conditions of the permit or this chapter or any regulations promulgated hereunder, the Council, at its option and after a hearing called upon at least ten (10) days' prior written

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 16 notice to the solid waste collector, may revoke such permit. In issuing permits for solid waste collector services, the City shall not be required to issue the same based upon the offer of lowest rates, but shall be free to issue such permits to the person deemed best suited to comply with the provisions of this chapter, and City Code Sections 12-3 through 12-7, and such other terms and conditions imposed by the City Council. (b) Excepting existing rights that the City reserves to itself, while an exclusive permit is in effect, may be granted the exclusive right to gather, collect and remove solid waste, recyclables, and organic materials from premises within the City, subject to such terms and conditions as the Council may apply to the issuance of such permit and set out in the written franchise agreement.
(c) No person shall act as a solid waste collector within the City unless such person is a solid waste collector, as defined in this chapter, or is exempt in accordance with subsection 12- 6 below. No person shall permit, allow or enter into any agreement whatsoever for the collection or transportation of solid waste, recyclable material, organic material, or hazardous material from any residential premises, multi-family dwelling, industrial or commercial premises except as otherwise provided by this chapter.

Sec. 12-4. Fees and charges.

Fees and charges for such Solid Waste Collector services shall be those the City Council may from time to time hereafter approve by resolution. The Solid Waste Collector shall pay a franchise fee as determined by agreement in lieu of any business license tax imposed generally by City.

Customers shall pay an additional fee based on the size of the container for recyclable materials and organic materials containers that are collected for refuse disposal by the franchisee if the contents of their recyclable materials and organic materials containers contain unacceptable levels of contamination as defined in this chapter.

Sec. 12-5. Scavenging and salvaging not allowed.
(a) It shall be unlawful for any person other than authorized City personnel or the Solid Waste Collector to remove any designated recyclable or organic materials, or salvageable commodity after placement in any designated recycling collection or storage location, or solid waste container.
(b) Notwithstanding, the generator of the designated recyclable or organic materials, for any reason, may otherwise dispose of the recyclable or organic materials or may remove the designated recyclable or organic materials after placement in the generator's container or designated recycling or organics collection or storage location. (c) It shall be unlawful for any person to disturb, modify, harm, or otherwise tamper with any container or designated recycling collection or storage location containing designated recyclable or organic materials, or the contents thereof, or to remove any such container from the location where placed by the generator thereof, or to remove the contents of any

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 17 such container, unless authorized by the generator of such designated recyclable or organic materials or duly authorized City personnel or solid waste collector.

Sec. 12-6. Exemptions.
(a) Yard waste and/or green waste removed from a premises by a gardening, landscaping or tree trimming contractor having a City business license and as an incidental part of a total service offered by that contractor rather than as a disposal service, and tree trimmings, clippings and all similar materials generated at parks and other publicly maintained premises;
(b) Demolition debris removed from a premises by a licensed contractor as an incidental part of a total service offered by that contractor rather than as a disposal service; (c) The collection of hazardous material as part of a hazardous material collection activity authorized by the Imperial County Environmental Health Department, including, without limitation, liquid and dry caustics, acids, bio-hazardous, flammable or explosive materials, insecticides and similar substances;
(d) Recyclable and organic materials which are generated at any residential premises or place of business and which are transported personally by the owner or occupant of such premises (or by his or her full-time employees) to a licensed solid waste or recycling facility in a manner consistent with this chapter and other applicable laws.

Sec. 12-7. Hazardous material collection.
(a) A Solid Waste Collector shall not be required to collect hazardous material as part of its regular collection activity. Liquid and dry caustics acids, flammable materials, explosive materials, insecticides, and similar substances shall not be deposited in collection receptacles. Any person collecting such substances shall, in addition to any requirements of state or federal law, obtain a permit therefore pursuant to the provisions of this chapter. (b) Biohazardous and/or medical waste (as defined in California Health and Safety Code Section 25117.5, as amended from time to time, or any successor provision or provisions thereto) shall not be collected by a solid waste collector as part of its regular collection activity. Anyone producing such wastes shall store, handle and dispose of such materials only in the manner approved by the county health officer or designated deputy, and in accordance with the California Health and Safety Code. Disposal of biohazardous and/or medical waste shall be conducted pursuant to a permit issued under this chapter in addition to any requirements imposed by state law.

Sec. 12-8. Collection in emergencies.

In emergencies, such as the breakdown of equipment, or other unforeseen or unpreventable circumstances, where in the judgment of the City Manager the particular situation justifies such action, the City Manager may issue limited or temporary permits to private persons or corporations to perform any of the services regulated by this chapter subject to such reasonable fees, charges and conditions as the circumstances may warrant and as the parties involved may agree upon;

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 18 provided that such fees and charges received from or paid to any private persons or corporations under this section for any period exceeding forty-five (45) days' duration shall be approved by the City Council.

Sec. 12-9. Hours of collection.

All solid waste collection from residential areas and areas immediately adjacent to residential areas shall be made between the hours of 7:00 a.m. and 8:00 p.m., and collections from commercial and industrial locations may start at 5:00 a.m.; provided, however, that the peace and quiet of residential neighborhoods is not disrupted.

The City Manager may require a solid waste collector to change hours of operation in commercial and industrial areas if, in the City Manager's sole opinion, disruption of residential neighborhoods occurs.

In the event that more than one (1) solid waste collector is permitted to operate in the City, whether by area or premises, the City Manager may, in their discretion, require that all refuse collection activities take place on the same day of the week in the specified area in order to minimize the traffic in any given area.

Sec. 12-10. Solid waste, recyclable and organic materials collection—Exception.

Solid Waste Collectors shall exercise all reasonable care and diligence in collection activities so as to prevent spilling, scattering or dropping solid waste, organic and recyclable materials, and shall immediately, at the time of occurrence, clean up any such spillage.

Sec. 12-11. Solid waste, organic and/or recyclable material containers.

It shall be the duty of every solid waste customer or designee to utilize the containers provided by the solid waste collector and, on the date and during the times designated for collection, place such containers in the area designated for collection. Except when placed for collection, such receptacles shall be kept and maintained only in storage locations prescribed by provisions of the City Code or otherwise in an inconspicuous location on the premises, as the same presently exists or as may be amended from time to time, or as specified by use permit or other entitlement for use.

The solid waste collector shall provide each solid waste customer with sufficient numbers of containers, specifically designed for the containment of various types of solid waste, organic and/or recyclable materials, each of which shall have suitable bales or handles and a tightfitting cover which shall prevent leakage or escape of odors, and which, when filled within four (4) inches of the top shall contain all solid waste, organic and/or recyclable materials which would ordinarily accumulate on such premises between collections. The exterior of such receptacles, including covers, shall be kept clean from accumulated grease or decomposing materials. The container colors must meet the applicable container color requirements and the City will have the final approval on container color specifications.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 19 Sec. 12-12. Placement of receptacles for collection. (a) Residential premises. It shall be the duty of every person having charge and control of any residential premises to set out or place receptacles for the collection of refuse, rubbish, miscellaneous debris and combined rubbish and/or other solid waste, organic and/or recyclable materials, as follows:

Receptacles shall be at the edge of the street in the curb-area in front of the dwelling, provided that the solid waste collector may designate some other location for the placement of receptacles when such placement will expedite collection, as approved by the City Manager.
(b) Commercial premises, multi-family dwelling and special event receptacles shall be placed in areas designed for such containers.

Sec. 12-13. Time and date of placement of receptacles.

No person shall place, or cause to be placed, any solid waste container in any public highway or in any place or in any manner other than that set out in this article; provided, or at any time other than the days established by the City for the collection thereof on the particular route involved, no earlier than sunset of the day preceding the day designated for collection, and all receptacles shall be removed from the place of collection prior to 10:00 p.m. of the day the receptacles have been emptied.

If the containers or receptacles are not emptied and the contents removed on the date and time scheduled by the solid waste collector, such person shall immediately notify the solid waste collector or the City, and it shall be the duty of the solid waste collector to forthwith arrange for the collection and disposal thereof.

Refuse, rubbish, organic and recyclable materials, and other solid waste which exceeds the limitations set forth may, in the discretion of the solid waste collector, be scheduled for special collection upon the application of the owner or occupant of the premises. Special collection charges may be assessed by the solid waste collector for this service.

No person, other than the owner thereof, the owner's agents or employees or an officer or employee of the City or a solid waste collector's agents or employees authorized for such purposes, shall tamper or meddle with any solid waste, organic recyclable materialsreceptacle or the contents thereof, or remove the contents thereof, or remove any receptacle.

Sec. 12-14. Solid waste removal.

Pursuant to the requirements of the California Administrative Code Section 17331(H) of Article 5 of Chapter 3 of Division 7 of Title 14, as those may be amended from time to time, all solid waste, organic and recyclable materials created, produced or accumulated in or about a residential premises (including multi-family) or commercial premises in the City shall be removed at least once each week. No person who is the occupant of any of the above-described premises shall fail or neglect to provide for the removal of such material at least as often as prescribed in this section.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 20 Sec. 12-15. Refuse disposal.

The solid waste collector shall dispose of collected wastes, at solid waste collector's sole expense, as required by this chapter, including but not limited to at a City approved landfill, transfer station (as defined in California Public Resources Code Section 40200) or other appropriate facility in a manner satisfactory to the City and in accordance with the provisions of this chapter and all federal, state and local laws and regulations.

Sec. 12-16. Special provisions regarding method of disposal.

The removal of wearing apparel, bedding or other refuse from residential premises or other places where highly infectious or contagious diseases have been present shall be performed under the supervision and direction of the county health officer and such refuse shall neither be placed in receptacles nor left for regular collection and disposal.

Highly flammable or explosive or radioactive refuse shall not be placed in receptacles for regular collection and disposal, but shall be removed as permitted by law at the expense of the owner or possessor of the material.

Food wastes and food soiled paper shall be disposed of as provided in this chapter.

Refuse or other solid waste containing water or other liquids shall be drained before being placed in a black or blue container or receptacle. Matter that is subject to decomposition and not allowed in the green container shall be wrapped in paper or other material before being placed in a black container or receptacle.

No hazardous material, battery acid, poisonous, caustic or toxic material or any other substance capable of damaging clothing or causing injury to the person shall be mixed or placed with any rubbish, solid waste or other refuse which is to be collected, removed or disposed of by a solid waste collector. Such items shall be removed at the occupant's expense only after arrangements have been made with the solid waste collectors or City for such removal.

With the exception of packaged domestic animal waste and packaged animal waste associated with permitted on premises temporary raising of livestock for programs such as 4-H Clubs, animal waste, as defined in section 12-2, shall not be placed in receptacles for regular collection and disposal, but shall be removed at the occupant's expense.

Sec. 12-17. Burning, burial or dumping.

No person shall burn, bury or dispose of solid waste or hazardous material of any kind within the City except as provided in this chapter.

Sec. 12-18. Disposition of recyclable material—Green waste.

Solid waste collectors shall sell, give, donate or otherwise transfer recyclable material as provided in this chapter.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 21 Sec. 12-19. Use of solid waste collection vehicles.

Any person who desires to operate privately owned vehicles for transportation of solid waste, hazardous waste, green waste and/or recyclable material under provisions of this chapter shall utilize vehicles which are reasonably watertight and are provided with a tight cover to the reasonable satisfaction of the City Manager. The City Manager shall require the permittee to remove from service or repair any vehicle that allows or permits offensive odors to escape and/or material to be blown, dropped or spilled therefrom. The City Council shall specify additional provisions for vehicles utilized pursuant to a solid waste franchise.

Sec. 12-20. No parking of trucks on any City street.
(a) No person, between the hours of 8:00 p.m. and 5:00 a.m., shall leave a solid waste collection vehicle utilized pursuant to section 12-19 hereof parked on any City street. (b) No person, between the hours of 5:00 a.m. and 8:00 p.m., shall leave a solid wase collection vehicle utilized pursuant to section 12-19 hereof parked on any City street for more than one hour unless the City Manager is notified that a breakdown or emergency exists.

Sec. 12-21. Vehicles —Equipment required.

Each vehicle of a solid waste collector shall at all times have in the cab thereof the registration of the truck, a copy of the permit, a certificate of insurance, and an identification card with the name of a person to telephone in case of an accident or emergency. Each truck shall also be equipped with a minimum five-pound fire extinguisher certified by the California State Fire Marshal and recharged as needed, but not less than once annually. Each vehicle shall meet the requirements of state and federal law, specifically including but not limited to those regarding air quality.

All vehicles used for solid waste collection within the City shall be required to be completely enclosed with a nonabsorbent cover while transporting solid waste, organic or recyclable materials in or through the City. "Completely enclosed with a nonabsorbent cover" means that no solid waste, refuse, or rubbish shall be visible from the street, nor shall any of the substances be permitted to leak, spill or become deposited along the public streets.

All vehicles used in the course of solid waste, organic and/or recyclable materials collection shall be painted in colors approved by the City Manager and identified by truck numerals, a company logo, and local telephone number and shall be kept clean and in good repair at all times.

Sec. 12-22. Reserved
Sec. 12-23. Vehicle inspection.
(a) All vehicles shall be maintained in safe mechanical condition. (b) Each of the solid waste collector's vehicles shall be made available for inspection at the discretion of the City Manager at any point of operation.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 22 (c) A decal may be issued by the City for each vehicle complying with provisions of this article, which shall be placed on the vehicle in a conspicuous place.

Sec. 12-24. Solid waste collector's contact information.

Each solid waste collector must maintain a local telephone number which shall be staffed for personal contact between 8:00 a.m. and 5:00 p.m. on normal working days, and at all other times with some type of mechanism for the purpose of taking messages. Each solid waste collector shall maintain and keep updated a website which provides information on solid waste collection and rules. Each solid waste collector must review and respond to messages within one working day, if not sooner.

Sec. 12-25. Solid waste collector's employees.

Each solid waste collector shall provide high quality service to industry standards and supply competent, qualified, identifiable and uniformed personnel who serve the residents and businesses of El Centro in a courteous, helpful and impartial manner. (1) The City may, at its option, require fingerprinting of the solid waste collector's employees whose services will cause them to enter onto or work in close proximity to private property.
(2) The solid waste collector shall be required to hire employees without regard to protected class or any association with a protected class, or any other non-merit factor.
(3) Any employee driving solid waste collector's trucks shall at all times have their possession a valid and appropriate vehicle operator's license issued by the State of California.
(4) Solid waste collector's employees shall be required to wear clean, identifiable uniforms when engaged in solid waste collection services within the City.

Sec. 12-26. Requirements for solid waste collector franchise. (a) Procedure and required information for solid waste collector permit. The applicant shall file a letter with the City Manager, executed under penalty of perjury of the laws of the State of California, containing the following information:
(1) Name and description of the applicant;
(2) Permanent business address and address of local office of the applicant; (3) Trade and firm name;
(4) If a corporation, joint venture or a partnership or limited partnership, the names of all officers, members partners of the firm, and the names of the officers and their percentage or participation interest and their permanent addresses;

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 23 (5) Facts indicating that the applicant has arranged for solid waste disposal in an area where the same may be legally accepted and disposed of as required by state law, this chapter and/or approved by the City;
(6) Desired collection area to be served and type of service to be provided; (7) Facts indicating that applicant is qualified to render efficient refuse collection service;
(8) Facts indicating that trucks and equipment conform to all applicable provisions of this chapter;
(9) Satisfactory evidence that applicant is in existence as a going concern and that the principals thereof possess not less than two (2) years actual operating experience in residential and/or commercial refuse collection and disposal; (10) Satisfactory evidence that applicant's experience as a going concern in residential and/or commercial refuse collection and disposal derives from operations of comparable size to that contemplated by the applicant; details shall include length of other contracts, name and size of municipality, nature of service provided, and the name of the contact person at the municipality being served; (11) Evidence that applicant is in good standing in the State of California and, in the case of a corporation organized under the laws of any other state, evidence that applicant is licensed to do business in the State of California; (12) A detailed inventory of the applicant's equipment available for use in refuse collection area;
(13) A written statement that applicant has complied, or is capable of complying, with all regulations imposed by the City, the county and the state for the collection and disposal of solid waste;
(14) Facts indicating that the applicant owns or has under his or her control, in good mechanical condition, sufficient equipment to conduct the business of refuse collection adequately if granted a permit, and that applicant owns or has access to suitable facilities for maintaining his or her equipment in a safe, clean and sanitary condition;
(15) Satisfactory evidence that the issuance of a permit is in the public interest and convenience in that there is an available market for solid waste collection which can be legally served by the applicant;
(16) Such other pertinent facts or information as the City Manager may require, including evidence of state certification, if applicable; (17) Any of the above provisions in conflict with certification requirements imposed by state law shall not be required.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 24 (b) Fees and requirements for permit.
(1) Upon consideration of the information supplied by the applicant contained in the above-mentioned letter and following a public hearing conducted by the City Council upon at least ten (10) days prior written notice to the applicant, the City Council may issue a permit.
(2) Each permit granted shall apply to solid waste collection for an area of the City specified therein or, in the case of hazardous material or bio-hazardous and/or medical waste operations, specified commercial premises, and may be exclusive. (3) A fee for processing permit applications shall be set by resolution of the City Council, with review on a regular basis.
(c) Bonding of solid waste collector. Before granting a solid waste collector permit under the provisions of this chapter, the Council shall require the solid waste collector as a condition of the permit, to post with the City clerk a cash bond or surety bond in an amount determined by the Council and furnished by a corporate surety authorized to do business in the State of California, payable to the City. The bond shall be conditioned upon the full and faithful performance by the solid waste collector of obligations under the applicable provisions of this chapter, and shall be kept in full force and effect by the solid waste collector throughout the life of the permit and all renewals thereof. (d) Indemnification by solid waste collector.
(1) Indemnification of City. Solid waste collector shall agree to protect, defend with counsel approved by the City, indemnify and hold harmless the City, its elected and appointed officials, officers, employees and agents from and against any and all losses, liabilities, fines, penalties, claims, damages, liabilities or judgments, including attorney's fees, arising out of or resulting in any way from the grant of a permit to the solid waste collector or the solid waste collector's exercise of its responsibilities under this chapter unless such claim is due to the sole negligence or willful act of the City, its officers, agents or employees, agents or contractors.

Subject to the scope of this indemnification and upon demand of the City, made by and through the City attorney, the solid waste collector shall appear in and defend the City and its officers, employees and agents in any claims or actions, whether judicial, administrative or otherwise, arising out of the exercise of this chapter. In the event that the solid waste collector provides services under this chapter through a subcontractor, this indemnification shall cover the acts or omissions of the subcontractor to the same extent as to the solid waste collector. (2) Hazardous materials indemnification. Solid waste collector shall indemnify, defend with counsel approved by the City, protect and hold harmless the City, its elected and appointed officials, officers, employees, agents, assigns and any successor or successors to the City's interest from and against all claims, actual damages (including, but not limited to special and consequential damages), natural resources damages, punitive damages, injuries, costs, response remediation and

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 25 removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties and expenses (including but not limited to attorney's and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, City or its officers, employees, agents or solid waste collector arising from or attributable to any release, repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous material at any place where solid waste collector stores or disposes of municipal solid waste pursuant to this chapter. The foregoing indemnity is intended to operate as an agreement pursuant to Section 107(e) of the Comprehensive Environmental Response, Compensation and Liability Act, "CERCLA," 42 USC § 9607(e) and California Health and Safety Code Section 25364, to insure, protect, hold harmless and indemnify from liability. (e) Liability insurance. The solid waste collector shall obtain, and keep in force during the term of the permit, public liability and bodily injury insurance in amounts determined by the City Council, workers' compensation insurance covering all employees of the solid waste collector and any other insurance required by the City on the terms and conditions specified by the City. The amounts of such insurance may be adjusted by City from time to time in its sole discretion. Certificates of insurance endorsed to evidencing such coverage shall be filed with the City Clerk prior to the commencement of activities authorized by the permit and maintained at required levels throughout the term of the permit. The City and its officers, elected officials, employees and agents shall be named as additional insureds on all such policies. All such policies shall contain at a minimum a provision requiring a thirty (30) day notice to be given to the City prior to cancellation, modification or reduction of limits.
(f) Compliance with federal, state and local laws and regulations. The solid waste collector shall perform under the terms of the permit in such a manner so as to comply with all applicable local and state laws and regulations pertaining to the collection, storage and transportation of solid waste. The solid waste collector shall also comply with all other ordinances and regulations of the City and applicable laws and regulations of the County of Imperial, State of California and the United States, and shall obtain and keep in force all required permits and business licenses throughout the life of the permit and all renewals thereof as well as with any and all other requirements specified by the City.

Sec. 12-27. Permit provisions.
(a) Fees. Any franchise issued pursuant to this chapter shall provide for the payment of franchise fees to the City, shall contain additional provisions agreed to by and between the City and solid waste collector, and shall constitute the written agreement of those parties. (b) Assignment or transfer of franchise. Except as otherwise specified in the franchise agreement, no assignment or transfer of a franchise issued pursuant to this chapter or any right accruing under such permit shall be made in whole or in part by the solid waste

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 26 collector without compliance with the assignment and transfer provisions of the franchise and the prior express written consent of the City Council. In the event any assignment or transfer is authorized hereunder, the assignee shall assume, without qualification, the liability and all other obligations of the solid waste collector. (c) Each solid waste collectorshall file with the City Clerk, on or before July 1 of each calendar year, a statement of ownership and shall verify the same as being true and correct under penalty of perjury under the laws of the State of California. (d) Revocation.
(1) A permit may be revoked at the option of the City Council in the event there is a change of ownership of any kind or nature of the operating company, unless approval therefor has been obtained hereunder. If it is determined by the City Manager that the solid waste collector has not complied with the provisions of this chapter, the permit, or any other applicable statutes, ordinances, rules and regulations, the City Manager shall notify the solid waste collector in writing of noncompliance and shall order compliance within thirty (30) days. (2) If noncompliance is not corrected within the above-prescribed thirty-day period, the City Council, following a public hearing upon at least ten (10) days' prior written notice to the solid waste collector, may terminate the permit. The City Council's decision shall be final.

Sec. 12-28. Charges for solid waste collector service.
(a) Rate adjustments. Except as otherwise provided by the franchise agreement, all revisions in charges levied must be submitted to the City Council for review and action and must be approved by resolution of the City Council following a noticed public hearing as required by Proposition 218 or otherwise by law.

Sec. 12-29. Requirements for Solid waste collectors and Facility Operators. (1) Solid waste collectors shall:
(a) Provide an original and any replacement organic materials and/or recyclable materials receptacle(s) to each solid waste customer. The color of receptacle(s) may be approved by the City Council and shall not cause health or safety hazards to solid waste customers or solid waste collector personnel. The receptacle(s) shall be provided without charge and remain the solid waste collector's property. (b) Collect recyclable and/or organic materials at least once a week, on the same day, and during the hours specified for regular solid waste collection. No alternate collection schedule is permitted unless pre-approved in writing by the City Manager. Solid waste collectors may collect containers in the same manner as regular solid waste collection.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 27 (c) Provide recyclable and/or organic materials collection services to each location within the area(s) that the solid waste collector serves for regular solid waste collection. Such service shall be provided at rates approved under Proposition 218, as required, and by the City Council.
(2) Additional requirements for Solid waste collectors providing Organic Waste collection services
(a) Solid waste collectors providing residential, Commercial, or industrial Organic Waste collection services to generators within the City’s boundaries shall meet the following requirements and standards as a condition of approval of a permit, contract, agreement, or other authorization with the City to collect Organic Waste:
(1) Through written notice to the City annually on or before March 1, identify the facilities to which they will transport Organic Waste, including facilities for Source Separated Recyclable Materials, and Source Separated Green Container Organic Waste.
(2) Transport Source Separated Recyclable Materials and Source Separated Green Container Organic Waste to a facility, operation, activity, or property that recovers Organic Waste as defined in 14 CCR, Division 7, Chapter 12, Article 2.
(3) Obtain approval from the City to haul Organic Waste, unless it is transporting Source Separated Organic Waste to a Community Composting site or lawfully transporting C&D in a manner that complies with 14 CCR Section 18989.1, and City’s C&D ordinance.
(b) Solid waste collector authorization to collect Organic Waste shall comply with education, equipment, signage, container labeling, container color, contamination monitoring, reporting, and other requirements contained within its franchise agreement entered into with City.
(c) Requirements for Facility Operators and Community Composting Operations (1) Owners of facilities, operations, and activities that recover Organic Waste, including, but not limited to, Compost facilities, in-vessel digestion facilities, and publicly-owned treatment works shall, upon City’s request, provide information regarding available and potential new or expanded capacity at their facilities, operations, and activities, including information about throughput and permitted capacity necessary for planning purposes.

Entities contacted by the City shall respond within 60 days. (2) Community Composting operators, upon City’s request, shall provide information to the City to support Organic Waste capacity planning, including, but not limited to, an estimate of the amount of Organic Waste anticipated to be handled at the Community Composting operation. Entities contacted by the City shall respond within 60 days.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 28 Sec. 12-30. Solid waste collector reports.

Upon issuance of a franchise hereunder, the solid waste collector shall submit the following, except as otherwise provided in the franchise agreement:
(1) Annual reports. The solid waste collector shall prepare and submit an annual report, using a tabular and/or graphic format, or other commonly used data base management program (e.g., Excel, etc.) as approved by the City, within sixty (60) days after the close of each calendar year. The report shall include, but is not limited to, the following information:
a. A summary of the previous year's (or, in the case of the initial report year, the initial year's) activities including, but not limited to, services begun or discontinued during the reporting year, and the number of solid waste customers for each class of services;
b. A report, in a form satisfactory to the City, on the City's progress in meeting and maintaining its ability to meet its goals under the Acts as applied to the solid waste collector's service area, along with any recommended changes; c. A revenue statement, setting forth quarterly compliance fees, and the basis for the calculation thereof, certified for accuracy, under penalty of perjury under the laws of the state by an officer of the solid waste collector. (2) Monthly reports. Solid waste collector shall prepare monthly reports, using a tabular and/or graphic format or other commonly used data base management program as approved by the City, during the term of the franchise monthly reports shall be submitted to the City on a quarterly basis, within twenty (20) days from the end of each quarter. At a minimum, the reports shall include:
a. Summaries of tonnage collected and disposed of by generator type, disposal and/or recycling facilities used, and disposal fees paid; b. Summaries of tonnage of recyclable material and organic material collected, by material, and by route;
c. Summaries of tonnages of non-recyclables and contaminants disposed; d. Summaries of tonnages, using an approved sampling methodology, of each material sold of otherwise exchanged for processing, by material type; e. Average market process for each material sold, and processing charges or acceptance fees for organic waste to other applicable materials; f. Participation rates for each route in terms of set out counts and average pounds collected per solid waste customer;

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 29 g. Description of progress in meeting the implementation schedule, including the problems encountered and how they were resolved;
h. Summaries of the number ofservice complaints by route, including the date, nature of complaint, and how it was resolved.
(3) Ad hoc reports. Solid waste collector shall provide all required reports of varying detail and format, as specifically requested by the City, to meet unforeseeable information queries of the California Integrated Waste Management Board, Imperial County Integrated Waste Management Task Force, or other public agencies or as otherwise requested by the City.
(4) Any other reports required by law or this chapter.

Sec. 12-31. Adverse information.

Solid waste collector shall provide the City two (2) copies of all reports, or other material adversely affecting the solid waste collector submitted by solid waste collector to the EPA, to CalRecycle or any other federal or state agency. Copies shall be submitted to the City simultaneously with solid waste collector's filing of such matters with said agencies. Solid waste collector's routine correspondence to such agencies need not be automatically submitted to the City, but shall be made available to the City upon written request. (1) Solid waste collector shall submit to the City copies of all pleadings, applications, notifications, communications and documents of any kind, submitted by the solid waste collector to, as well as copies of all decisions, correspondence and actions by, any federal, state and local courts, regulatory agencies and other governmental bodies relating specifically to solid waste collector's performance of services pursuant to the permit. Any confidential data exempt from public disclosure shall be retained in confidence by the City and its authorized agents and shall not be made available for public inspection.
(2) Solid waste collector shall submit to the City such other information or reports in such forms and at such times as the City may reasonably request or require. (3) All reports and records required under this or any other section shall be furnished at the sole expense of the solid waste collector.
(4) A copy of each solid waste collector's annual and other periodic public financial reports and those of its parent, subsidiary and affiliated corporations and other entities, as the City requests, shall be submitted to the City within thirty (30) days after receipt of a request.
(5) All such reports and copies shall submitted electronically to the Public Works Director or Designee with confirmation of receipt evidenced by a received receipt from City.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 30 Sec. 12-32. Failure to report.

The refusal, failure or neglect of the solid waste collector to file any of the reports required, or to provide adverse information, or the inclusion of any materially false or misleading statement or representation made knowingly by the solid waste collector in such report shall be deemed a material default under the franchise, and shall subject the solid waste collector to all remedies, legal or equitable, which are available to the City under the permit or otherwise.

Sec. 12-33. Additional requirements of solid waste collectors (a) Solid waste collectors other than the exclusive franchisee shall obtain and maintain a business license with the City.
(b) Solid waste collectors shall keep separate in separate containers those refuse, recyclable materials, and organic materials that have been source-separated by commercial generators multi-family generators, residential premises, or special events. (c) Solid waste collectors shall ensure that segregated recyclable materials are delivered to a recycling facility and that segregated organic materials are delivered to an organic materials processing facility, except that a container that contains unacceptable levels of contamination may be delivered for refuse disposal if the solid waste collector notifies the City of the occurrence; the date of the occurrence; and the account name, primary contact, phone number, billing address, and service address for the solid waste customer at which the container is located.
(d) Within five days of a written request by the City by letter or email, solid waste collector(s) shall provide progress reports providing the following information, at a minimum:
(1) Total number of solid waste customers to whom the solid waste collector currently provides refuse, recyclable materials, and organic materials collection service within the City's boundaries;
(2) For each solid waste customer, the account name, identifying number, primary contact, phone number, billing address, and service address; (3) Information on the type of collection service provided, such as refuse, recyclable materials, or organic materials services;
(4) The weekly volume and type of collection service provided, including the number, type, and size of containers serviced and the days of service for each container; (5) Name and location of the solid waste facilities where materials are delivered for processing;
(6) List of accounts not in compliance with this chapter, including whether they are waived based on the exemptions in sections 12-47 below.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 31 ARTICLE II. MANDATORY RECYCLING AND ORGANIC WASTE DISPOSAL

REDUCTION
Sec. 12-34. Purpose of this article.

Sec. 12-35. Commercial and Multi-Family Residential generators.

Each commercial customer, multi-family dwelling or entity responsible for a special event, shall be responsible for ensuring and demonstrating its compliance with the requirements of this chapter and specifically this article II. Each solid waste customer shall:
(a) Subscribe to an adequate level of service for recyclable materials and, when applicable, organic materials generated at the commercial premises, multi-family dwelling, or special event if the customer does not self-haul those recyclable materials or organic materials to a recycling or organics materials processing facility pursuant to the provisions of section 12-39 of this article. (b) Provide, directly or through the solid waste collector, appropriate and sufficient containers, placed in appropriate and accessible locations with adequate signage, to ensure maximum segregation of recyclable materials by all commercial generators, multi-family generators, and special events and to ensure maximum segregation of organic materials by food service providers.
(c) Provide, post and maintain signs containing information and instructions on the proper segregation and storage of recyclable materials and organic materials in areas where containers are located. The signs shall meet the requirements of CalRecycle when available and the hauler shall provide sample signs. (d) Ensure that all containers used for collecting and storing recyclable materials and organic materials (1) are labeled with or have adjacent to the container signs that display the appropriate information to enable users to clearly differentiate which containers are used for recyclable materials, organic materials, and refuse; (2) display the name of the solid waste collector that provides collection service of the container; and (3) ensure that users of the containers make efforts to minimize the contamination of material placed in the containers.
(e) Distribute this chapter 12 and appropriate educational materials to all commercial generators, multi-family generators, and legal entities responsible for special events at the commercial premises or multi-family dwelling at least once each year by mail or personal delivery. All new commercial generators, multi-family generators, and special events shall receive this information upon occupancy or contracting for service.
(f) Educational materials shall include (1) the requirement and procedures to ensure the accurate segregation of recyclable materials and organic materials from refuse; (2) the commercial generator's, multi-family generators, or special event's responsibilities regarding compliance with this chapter; and (3) the types and location of recyclable materials, organic materials, and refuse containers.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 32 (g) Ensure that instructions or training materials provided to commercial generators, multi-family generators, and special events are promptly made available to the City upon request.
(h) Ensure that the contents of the recyclable materials and organic materials containers are not collected for refuse disposal unless the contents of these containers include unacceptable levels of contamination.
(i) Customers shall pay an additional fee based on the size of the container for recyclable materials and organic materials containers that are collected for refuse disposal by the franchisee if the contents of their recyclable materials and organic materials containers contain unacceptable levels of contamination as defined pursuant to section 12-1.

Sec. 12-36. Commercial generators.

In addition to the requirements of section 12-35, each commercial generator shall be responsible for ensuring and demonstrating its compliance with the requirements of this chapter.

Each commercial generator shall:
(a) Ensure the segregation of recyclable materials and organic materials from refuse by placing each type of material in a separate designated receptacle or container, and ensure that employees, contractors, volunteers, customers, visitors, and other persons on site segregate recyclable materials and organic materials. (b) Provide an adequate number and type of labeled receptacles needed for segregating and storing recyclable materials and organic materials and provide adequate access to those receptacles.
(c) Post and maintain signs containing information and instructions on the proper segregation and storage of recyclable materials and organic materials in areas where receptacles are located.
(d) Ensure that all receptacles used for collecting and storing recyclable materials, organic materials, and refuse are labeled with signs or labels that display the appropriate information to enable users to clearly differentiate which receptacles are used for recyclable materials, organic materials, and refuse, to minimize the contamination of material placed in receptacles.
(e) Provide adequate instructions to employees, contractors, and volunteers of the requirements of this chapter, including (1) the requirement and procedures to ensure the segregation of recyclable materials and organic materials from refuse; (2) the employee's, contractor's, and volunteer's responsibilitiesregarding compliance with this chapter; and (3) the types and location of receptacles and containers for recyclable materials, organic materials, and refuse.
(f) Ensure that instructions or training materials provided to employees, contractors, and volunteers are promptly made available to the City upon request.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 33 (g) Ensure that the contents of receptacles are deposited in the proper container and ensure that the contents of the receptacles for recyclable materials and organic materials are not delivered to refuse containers.
(h) Commercial generators may be assessed an additional fee based on the size of the container for recyclable materials and organic materials containers that are collected for refuse disposal by the franchisee if the contents of their recyclable materials and organic materials containers contain unacceptable levels of contamination.
(i) Commercial generators that are Tier One or Tier Two Commercial Edible Food Generators also shall comply with Food Recovery requirements, pursuant to Section 12-47
Sec. 12-37. Special events.

The entity responsible for a special event shall be responsible for ensuring and demonstrating compliance with the requirements of this chapter. In addition to other requirements in this chapter and the Municipal Code, each special event shall:
(a) Segregate recyclable materials and, for special events that include food service or use food service establishments, organic materials from refuse by placing each type of material in a separate designated receptacle or container, and ensure that employees, contractors, volunteers, customers, visitors, and other persons on site segregate recyclable materials and organic materials.
(b) Ensure the special event has access to an adequate number and type of containers needed for collecting and storing recyclable materials and, when applicable, organic materials generated at and by the special event. (c) Provide or ensure the provision of adequate receptaclesthroughout the special event location to make the segregation of recyclable materials and organic materials convenient for employees, volunteers, contractors, vendors, exhibitors, presenters, visitors, attendees, customers, and other persons on site. (d) Provide or ensure the provision of an equal or greater number of receptacles for recyclable materials and, when applicable, organic materials to receptacles for refuse. Individual receptacles for recyclable materials, organic materials, and refuse shall be placed as close together as possible throughout the special event location in order to provide equally convenient access to receptacles for recyclable materials and organic materials as to receptacles for refuse.
(e) Ensure that all receptacles used for segregating and storing recyclable materials, organic materials, and refuse are affixed with signs or labels that display the appropriate information to enable users to accurately segregate solid waste and to clearly differentiate which receptacles are used for recyclable materials, organic materials, and refuse, to minimize the contamination of material placed in receptacles.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 34 (f) Require food vendors and food service establishments to have at least one separate receptacle each for recyclable materials, organic materials, and refuse for use by employees, contractors, custodians, customers, visitors, and other persons on site. (g) Distribute chapter requirements and appropriate informational materials to all vendors, exhibitors, and other commercial generators during event planning and setup.
(h) Ensure that the contents of the receptacles for recyclable materials and organic materials are not delivered to refuse containers unless they include unacceptable levels of contamination.

Sec. 12-38. Single-Family generators.

Single-Family Organic Waste Generators shall comply with the following requirements:
(a) Shall subscribe to City’s Organic Waste collection services for all Organic Waste generated as described below in 12-39(b). City shall have the right to review the number and size of a generator’s containers to evaluate adequacy of capacity provided for each type of collection service for proper separation of materials and containment of materials. Single-Family generators shall adjust its service level for its collection services as requested by the City. Generators may additionally manage their Organic Waste by preventing or reducing their Organic Waste, managing Organic Waste on site, and/or using a Community Composting site pursuant to 14 CCR Section 18984.9(c).
(b) Shall participate in the City’s Organic Waste collection service(s) by placing designated materials in designated containers as described below, and shall not place Prohibited Container Contaminants in collection containers. (1) Generator shall place Source Separated Green Container Organic Waste, including food waste in the Green Container; Source Separated Recyclable Materials in the Blue Container; and Black Container Waste in the Black Container. Generators shall not place materials designated for the Black Container into the Green Container or Blue Container.

Sec. 12-39. Self-haulers.
(a) Nothing in this chapter shall preclude any person, solid waste customer, commercial generator, multi-family generator, or special event from self-hauling recyclable materials or organic materials generated by that entity to a recycling or organics materials processing facility before placement in the solid waste stream.
(b) Self-haulers shall:
(1) Comply with the requirements in this chapter by delivering for recycling those items that can be recycled by local recycling facilities and establishments and shall

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 35 comply by delivering for organic materials processing those items that are accepted by local organic materials processing facilities.
(2) Provide proof of compliance with this chapter, upon request by the City; proof includes but is not limited to a receipt from a recycling or organic materials processing facility that clearly identifies the type and quantity of material delivered and an application for exemption from the necessity for refuse collection. (3) Source separate all recyclable materials and Organic Waste (materials that City otherwise requires generators to separate for collection in the City’s organics and recycling collection program) generated on-site from Solid Waste in a manner consistent with 14 CCR Sections 18984.1 and 18984.2, or shall haul Organic Waste to a High Diversion Organic Waste Processing Facility as specified in 14 CCR Section 18984.3.
(4) Haul their Source Separated Recyclable Materials to a facility that recovers those materials; and haul their Source Separated Green Container Organic Waste to a Solid Waste facility, operation, activity, or property that processes or recovers Source Separated Organic Waste. Alternatively, Self-Haulers may haul Organic Waste to a High Diversion Organic Waste Processing Facility. (5) Self-Haulers that are Commercial Businesses (including Multi-Family Residential Dwellings) shall keep a record of the amount of Organic Waste delivered to each Solid Waste facility, operation, activity, or property that processes or recovers Organic Waste; this record shall be subject to Inspection by the City. The records shall include the following information:
(A) Delivery receipts and weight tickets from the entity accepting the waste. (B) The amount of material in cubic yards or tons transported by the generator to each entity.
(C) If the material is transported to an entity that does not have scales on-site, or employs scales incapable of weighing the Self-Hauler’s vehicle in a manner that allows it to determine the weight of materials received, the SelfHauler is not required to record the weight of material but shall keep a record of the entities that received the Organic Waste. (c) Notwithstanding, self-haulers shall not dispose of any solid waste in any manner not permitted by this chapter. To do so is a violation of this chapter punishable as set out in section 12-43.

Sec. 12-40. City authority.

The City Enforcement Official is authorized to administer and enforce the provisions of this chapter. To the extent permitted by law, the City Enforcement Official may inspect any collection container and any solid waste collector's load for refuse, recyclable materials, or organic materials. To the extent permitted by law, the City Enforcement Official also may inspect the

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 36 premises of any residential premise, commercial premises, multi-family dwelling, or special event or self-hauler's load to determine compliance with the provisions of this chapter.

Sec. 12-41 Information and Enforcement.
(a) The City Enforcement Official shall enforce this chapter with the goal of maximizing the amount of recyclable materials and organic materials properly segregated and ensuring that recyclable materials and organic materials that have been properly segregated by the solid waste customer, commercial premise, multi-family generator, or special event are correctly collected and delivered to recycling and organics materials processing facilities. (b) The City shall require the solid waste collector to conduct the following activities to enforce this chapter:
(1) Provide details on the requirements of this chapter to affected solid waste customers, commercial premises, multi-family generators, and special events; (2) Develop and disseminate public education and promotional materials relating to the importance of recycling and organic materials processing and the availability of recycling and organic materials processing opportunities available to solid waste customers, commercial generators, multi-family generator, and special events; (3) Provide technical assistance and training to solid waste customers, commercial generator, multi-family generators, and special events to increase recycling; (4) Enforce provisions of the franchise agreement for collection of recyclable materials, organic materials, and refuse with the franchisee to stimulate demand for recyclable materials and organic materials collection service. (c) Education Period for Non-Compliance
Beginning January 1, 2022 and through December 31, 2023, City will conduct Inspections, Route Reviews or waste evaluations, and Compliance Reviews, depending upon the type of regulated entity, to determine compliance, and if City determines that Organic Waste Generator, Self-Hauler, hauler, Tier One Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance, it shall provide educational materials to the entity describing its obligations under this ordinance and a notice that compliance is required by January 1, 2022, and that violations may be subject to administrative civil penalties starting on January 1, 2024. (d) The City Enforcement Official will monitor compliance with the ordinance randomly and through Compliance Reviews, Route Reviews, investigation of complaints, and an Inspection program. Section 12-42 establishes City’s right to conduct Inspections and investigations.
(1) City may issue an official notification to notify regulated entities of its obligations under the ordinance but is not required to do so before enforcement.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 37 Sec. 12-42. Inspections and investigations by City
(a) The City Enforcement Official is authorized to conduct Inspections and investigations, at random or otherwise, of any collection container, collection vehicle loads, or transfer, processing, or disposal facility for materials collected from generators, or Source Separated materials to confirm compliance with this ordinance by Organic Waste Generators, Commercial Businesses (including Multi-Family Residential Dwellings), property owners, Commercial Edible Food Generators, haulers, Self-Haulers, Food Recovery Services, and Food Recovery Organizations, subject to applicable laws. This Section does not allow City to enter the interior of a private residential property for Inspection without an inspection warrant or consent of the occupant or property owner.
(b) All generators shall provide or arrange for access during all Inspections (with the exception of residential property interiors) and shall cooperate with the City Enforcement Official during such Inspections and investigations. Such Inspections and investigations may include confirmation of proper placement of materials in containers, Edible Food Recovery activities, records, or any other requirement of this ordinance described herein. Failure to provide or arrange for: (i) access to a generator’s premises; or (ii) access to records for any Inspection or investigation is a violation of this ordinance and may result in penalties described.
(c) Any records obtained by City during its Inspections and other reviews shall be subject to the requirements and applicable disclosure exemptions of the Public Records Act as set forth in Government Code Section 6250 et seq. which require disclosure of closed investigation records.
(d) The City Enforcement Official is authorized to conduct any Inspections, or other investigations as reasonably necessary to further the goals of this ordinance, subject to applicable laws.
(e) City shall receive written complaints from persons regarding an entity that may be potentially non-compliant with SB 1383 Regulations, including receipt of anonymous complaints.

Sec. 12-43. Penalties.
(a) Except as otherwise provided, violation of any provision of this chapter shall be an infraction to be enforced by administrative citation. The administrative citation amounts under the City Code are consistent with the highest amounts required by SB 1383.

Notwithstanding, at the discretion of the City Attorney, a violation may be determined to be a misdemeanor and enforced criminal.
(b) Any violation of this chapter also shall constitute a public nuisance subject to the code enforcement provisions of this City Code.
(c) Notwithstanding, the City Attorney with the direction of the City Council may pursue any other remedy legally available to the City.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 38 (d) Enforcement of Container Contaminant provisions:
(1) For incidences of Prohibited Container Contaminants found in containers, City through the solid waste collector shall issue a written warning, entitled “Notice of Violation” to any generator found to have Prohibited Container Contaminants in a container. Such notice will be provided via a cart tag provided by the solid waste collector or by mail other communication upon identification of the Prohibited Container Contaminants. The Notice of Violation shall require compliance with the container contamination requirements immediately upon receipt of the Notice. (2) If Prohibited Container Contaminants in a generator’s containers are reported on more than three (3) consecutive occasion(s) after receipt of Notice of Violation, the City may issue an administrative citation which shall be served in the manner required by this City Code. .
(e) Civil Penalties for Non-Compliance
(1) Beginning January 1, 2024, if the City determines that an Organic Waste Generator, Self-Hauler, hauler, Tier One or Tier Two Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance with this ordinance, it shall document the noncompliance or violation, issue a Notice of Violation, and take Enforcement Action pursuant to Section 12- 41, as needed.
(2) Beginning January 1, 2024, if the City determines that an Organic Waste Generator, Self-Hauler, hauler, Tier One or Tier Two Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance with this chapter, it shall document the noncompliance, provide a written warning, and thereafter issue an administrative citation(s) or take other action to achieve compliance.

Sec. 12-44. No effect on other powers.
(a) This chapter does not do any of the following:
(1) Otherwise affect the authority of the City or its designee to take any other action authorized by any other provisions of law or regulations. (2) Restrict the power of a City attorney, district attorney, or the attorney general to bring in the name of the people of California any criminal proceeding otherwise authorized by law.
(3) Prevent the City from cooperating with, or participating in, any proceeding. (4) Affect in any way existing contractual arrangements including franchises, permits, or licenses previously granted or entered into between the solid waste collectors and City.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 39 (b) Cumulative remedies. Any remedy provided under this chapter is cumulative to any other remedy provided in equity or at law. Nothing in this chapter shall be deemed to limit the right of the City to bring a civil action; nor shall a conviction for such violation exempt any person from a civil action brought by the City. Except for criminal proceedings, the fees and penalties imposed under this chapter shall constitute a civil debt and liability owing to the City from the persons, firms, or corporations using or chargeable for such services and shall be collectible in the manner provided by law.
(c) Liability. Nothing in this chapter shall be deemed to impose any liability upon the City or upon any of its officers, agents, contractors or employees including without limitation under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA).

Sec. 12-45. Disclaimer of liability.

The degree of protection required by this chapter is considered to be reasonable for regulatory purposes. The standards set forth in this chapter are minimal standards and do not imply that compliance will ensure safe handling of recyclable materials, organic materials, or refuse. This chapter shall not create liability on the part of the City, or any of its officers or employees, for any damages that result from reliance on this chapter or any administrative decision lawfully made in accordance with this chapter. All persons handling solid waste within the boundaries of the City should be and are advised to conduct their own inquiry as to the handling of such materials. In undertaking the implementation of this chapter, the City is assuming an undertaking only to promote the general welfare. It is not assuming, nor is it imposing on its officers and employees, an obligation for breach of which it is liable in money damages to any person who claims that such breach proximately caused injury.

Sec. 12-46. Duties discretionary.

Subject to the limitations of due process and applicable requirements of state or federal laws, and notwithstanding any other provisions of this chapter, whenever the words "shall" or "must" are used in establishing a responsibility or duty of the City, its elected or appointed officers, employees or agents, it is the legislative intent that such words establish a discretionary responsibility or duty requiring the exercise of judgment and discretion.

Sec. 12-47. Waivers for Generators
(a) De Minimis Waivers. The City may waive a Commercial Generators’ obligation (including Multi-Family Residential Generators) to comply with some or all of the Organic Waste requirements of this ordinance only if the Commercial Business provides documentation that the business generates below a certain amount of Organic Waste material as described in Section 12-47(a)(2) below. Commercial Businesses requesting a de minimis waiver shall:
(1) Submit an application specifying the services that which the waiver is requested and provide documentation as noted in Section 12-47(a)(2) below. (2) Provide documentation that either:

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 40 (A) The Commercial Generators’ total Solid Waste collection service is two cubic yards or more per week and Organic Waste subject to collection in a Blue Container or Green Container comprises less than 20 gallons per week per applicable container of the business’ total waste; or, (B) The Commercial Generators’ total Solid Waste collection service is less than two cubic yards per week and Organic Waste subject to collection in a Blue Container or Green Container comprises less than 10 gallons per week per applicable container of the business’ total waste.
(3) Notify City in writing within fifteen days if circumstances change such that Commercial Business’s Organic Waste exceeds threshold required for waiver, in which case waiver will be rescinded.
(4) Provide written verification of eligibility for de minimis waiver every 5 years upon the date of initially approval, if City has approved de minimis waiver and there has been no change of circumstances.
(b) Physical Space Waivers. City may waive a Commercial Generators’ or property owner’s obligations (including Multi-Family Residential Generators) to comply with some or all of the recyclable materials and/or Organic Waste collection service requirements if the City has written evidence from its own staff, a hauler, licensed architect, or licensed engineer demonstrating that the premises lacks adequate space for the collection containers required for compliance with the Organic Waste collection requirements of Section 12-35 through Section 12-38.

A Commercial Generator or property owner may request a physical space waiver through the following process:
(1) Submit an application form specifying the type(s) of collection services for which they are requesting a compliance waiver.
(2) Provide documentation that the premises lacks adequate space for Blue Containers and/or Green Containers and cannot be modified to provide such space, including documentation from its hauler, licensed architect, or licensed engineer. (3) Provide written verification to City that it is still eligible for physical space waiver every five years on the anniversary date of the waiver, if City has approved application for a physical space waiver.
(4) Notify the City in writing within fifteen days if there is a change in the premises which would allow adequate space for such Containers, at which time the waiver will be revoked.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 41 Sec. 12-48. Requirements for Commercial Edible Food Generators (a) Tier One Commercial Edible Food Generators must comply with the requirements of this Section commencing January 1, 2022, and Tier Two Commercial Edible Food Generators must comply commencing January 1, 2024, pursuant to 14 CCR Section 18991.3. (b) Large Venue or Large Special Event operators not providing food services, but allowing for food to be provided by others, shall require Food Facilities operating at the Large Venue or Large Event to comply with the requirements of this Section, commencing January 1, 2024.
(c) Commercial Edible Food Generators shall comply with the following requirements:
(1) Arrange to recover the maximum amount of Edible Food that would otherwise be disposed.
(2) Contract with, or enter into a written agreement with Food Recovery Organizations or Food Recovery Servicesfor: (i) the collection of Edible Food for Food Recovery; or, (ii) acceptance of the Edible Food that the Commercial Edible Food Generator self-hauls to the Food Recovery Organization for Food Recovery. (3) Shall not intentionally spoil Edible Food that is capable of being recovered by a Food Recovery Organization or a Food Recovery Service.
(4) Allow City’s Enforcement Official or Designee to access and inspect the premises and review records pursuant to 14 CCR Section 18991.4.
(5) Keep records that include the following information, or as otherwise specified in 14 CCR Section 18991.4:
(A) A list of each Food Recovery Service or organization that collects or receives its Edible Food pursuant to a contract or written agreement established under 14 CCR Section 18991.3(b).
(B) A copy of all contracts or written agreements established under 14 CCR Section 18991.3(b).
(C) A record of the following information for each of those Food Recovery Services or Food Recovery Organizations:
(i) The name, address and contact information of the Food Recovery Service or Food Recovery Organization.
(ii) The types of food that will be collected by or self-hauled to the Food Recovery Service or Food Recovery Organization.
(iii) The established frequency that food will be collected or self-hauled.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 42 (iv) The quantity of food, measured in pounds recovered per month, collected or self-hauled to a Food Recovery Service or Food Recovery Organization for Food Recovery.
(d) Nothing in this ordinance shall be construed to limit or conflict with the protections provided by the California Good Samaritan Food Donation Act of 2017, the Federal Good Samaritan Act, or share table and school food donation guidance pursuant to Senate Bill 557 of 2017 (approved by the Governor of the State of California on September 25, 2017, which added Article 13 [commencing with Section 49580] to Chapter 9 of Part 27 of Division 4 of Title 2 of the Education Code, and to amend Section 114079 of the Health and Safety Code, relating to food safety, as amended, supplemented, superseded and replaced from time to time).

Sec. 12-49. Requirements for Food Recovery Organizations and Services (a) Food Recovery Services collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(1):
(1) The name, address, and contact information for each Commercial Edible Food Generator from which the service collects Edible Food.
(2) The quantity in pounds of Edible Food collected from each Commercial Edible Food Generator per month.
(3) The quantity in pounds of Edible Food transported to each Food Recovery Organization per month.
(4) The name, address, and contact information for each Food Recovery Organization that the Food Recovery Service transports Edible Food to for FoodRecovery. (b) Food Recovery Organizations collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(2):
(1) The name, address, and contact information for each Commercial Edible Food Generator from which the organization receives Edible Food. (2) The quantity in pounds of Edible Food received from each Commercial Edible Food Generator per month.
(3) The name, address, and contact information for each Food Recovery Service that the organization receives Edible Food from for Food Recovery. (c) Food Recovery Organizations and Food Recovery Services that have their primary address physically located in the City and contract with or have written agreements with one or

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 43 more Commercial Edible Food Generators pursuant to 14 CCR Section 18991.3(b) shall report to the City it is located in the total pounds of Edible Food recovered in the previous calendar year from the Tier One and Tier Two Commercial Edible Food Generators they have established a contract or written agreement with pursuant to 14 CCR Section 18991.3(b) no later than March 1. Said date may be amended by City to align with regional goals with 30 day notice to Food Recovery Organizations and Food Recovery Services in the City.
(d) Food Recovery Capacity Planning
(1) Food Recovery Services and Food Recovery Organizations. In order to support Edible Food Recovery capacity planning assessments or other studies conducted by the County, City, hauler, or its designated entity, Food Recovery Services and Food Recovery Organizations operating in the City shall provide information and consultation to the City, upon request, regarding existing, or proposed new or expanded, Food Recovery capacity that could be accessed by the City and its Commercial Edible Food Generators. A Food Recovery Service or Food Recovery Organization contacted by the City shall respond to such request for information within 60 days, unless a shorter timeframe is otherwise specified by the City.

Sec. 12-50. Compliance with CalGreen Recycling Requirements (a) Persons applying for a permit from the City for new construction and building additions and alternations where the project is covered by the scope of CAL Green shall comply with the requirements of all required components of the California Green Building Standards Code, 24 CCR, Part 11, known as CALGreen, as amended and adopted by City Ordinance Section 7-77. Project applicants shall refer to City Ordinance Section 7-77 for complete CALGreen requirements. It is the responsibility of such applicants to determine the applicability of City Ordinance Section 7-77. Failure to identify a project included within the CALGreen requirements is grounds for immediate denial of the project and retention of all fees paid.

Secs. 12-51—12-75. Reserved.

Section 3. Severability.

If any section, sentence, clause, or phrase of this chapter is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Chapter. The City hereby declares that it would have passed the ordinance codified in this chapter and adopted this chapter and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

Section 4: This Ordinance shall take effect thirty (30) days from and after its adoption.

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 44 Section 5: Within fifteen (15) days after adoption, a summary of this Ordinance shall be published once in a newspaper, published and circulated within City of El Centro, California, and there shall be posted in the Office of the City Clerk a certified copy of the full text of this Ordinance INTRODUCED at a regular meeting of the CityCouncil of the City of El Centro California, held on the 15th day of February 2022.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of El Centro, California, held on the day of 2022.

CITY OF EL CENTRO
By:

Tomas Oliva, Mayor
ATTEST:

By:

Norma Wyles, City Clerk
APPROVED AS TO FORM:

Office of the City Attorney
By:

Elizabeth L. Martyn, City Attorney

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste 45 STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) ss

CITY OF EL CENTRO )
I, Norma Wyles, City Clerk of the City of El Centro, California, do hereby certify that the foregoing Ordinance No. 22-01 had its first reading on February 15, 2022, and had its second reading on , and was passed by the following vote:

AYES: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin NOES: None
ABSENT: None
ABSTAINED: None
AYES:

NOES:

ABSENT:

ABSTAINED:

By:

Norma Wyles, City Clerk

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Attachment: ORDINANCE NO. 22-01 SB1383 (5439 : 2nd Reading & Adoption of Ordinance No. 22-01 - Mandatory Recycling & Organic Waste City Council of the City of El Centro Meeting: 03/01/22 11:30 AM 1275 Main Street Department: City Clerk's Office
El Centro, CA 92243 Category: Resolution
Prepared By: Norma Wyles
SCHEDULED Department Head: Norma Wyles
ACTION ITEM (ID # 5440) DOC ID: 5440
Resolution Authorizing Remote Teleconference Meetings
CITY MANAGER’S RECOMMENDATION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF EL CENTRO CONFIRMING THE CONTINUATION OF THE LOCAL STATE OF

EMERGENCY AND THE STATE OF EMERGENCY PROCLAIMED BY GOVERNOR NEWSOM ON MARCH 4, 2020 AND AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF THE CITY COUNCIL FOR THE PERIOD MARCH 1, 2022 THROUGH APRIL 1, 2022.

FISCAL IMPACT:

None
STRATEGIC PLANNING PROGRAM 2013-2018 RELATION:

N/A
DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

None
DISCUSSION:

If the City wishes to continue with virtual meetings, then the Council should consider and adopt this Resolution. It will apply to all Brown Act covered bodies within the City.

The previous teleconferencing provisions continue to apply but only for Council members on a trip or vacation do not change.

The bases for determining to continue virtual meeting participation are either the inability effectively to socially distance at public meetings (a health and safety issue) or a determination that a public meeting would present imminent danger to the participants. The inability to socially distance is set out in this Resolution.

In addition, AB 361 states requirements for virtual meetings (many of which were part of various Governor’s orders): requirements for clear noticing, allowing time for public comment during meetings, and observance of all statutory and constitutional rights of participants. The public may not be required to provide written comments in advance of the meeting. The legislation also provides that if the internet connection is lost, the meeting must stop until it is reacquired. Action taken without an internet connection is subject to challenge.

The ability to hold a virtual meeting lasts only as long as the Governor’s declaration of a statewide emergency. The Council may terminate virtual meetings at any time before that.

CONCLUSION:
5 Packet Pg. 63
Action Item (ID # 5440) Meeting of March 1, 2022
Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF EL CENTRO CONFIRMING THE CONTINUATION OF THE LOCAL STATE OF

ATTACHMENTS:
• Teleconference Resolution for March 1st Meeting (DOCX) 5 Packet Pg. 64
01/2022/liz/A22-0005/Reso
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RESOLUTION NO. 22-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO CONFIRMING

THE CONTINUATION OF THE LOCAL STATE OF EMERGENCY AND THE STATE OF EMERGENCY PROCLAIMED BY GOVERNOR NEWSOM ON MARCH 4, 2020 AND

AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF THE CITY COUNCIL FOR THE PERIOD MARCH 1, 2022 THROUGH APRIL 1, 2022
WHEREAS, the City is committed to preserving and encouraging public access and participation in City Council meetings; and
WHEREAS, all meetings of the City’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; and
WHEREAS, Government Code section 54953(e) added to the Brown Act effective October 1, 2021, makes provisions for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and WHEREAS, a required condition is that a state of emergency is declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code section 8558; and WHEREAS, a proclamation is made when there is an actual incident, threat of disaster, or extreme peril to the safety of persons and property within the jurisdictions that are within the City’s boundaries, caused by natural, technological, or human-caused disasters; and WHEREAS, it is further required that state or local officials have imposed or recommended measures to promote social distancing, or have determined that meeting in person would present imminent risks to the health and safety of attendees; and WHEREAS, such conditions now exist in the City, specifically, as the state of emergency declared by the City on March 17, 2020 and by Governor Newsom on March 4, 2020 each continues; and
WHEREAS, social distancing orders are in place at the state and County level for indoor public meetings and, given the size of the Council Chambers imposing such social distancing measures could present an imminent risk to the health and safety of attendees and enforcement of such rules could deter participation in a Board meeting; and WHEREAS, the City Council does hereby find that the combination of the emergency order and the requirement for social distancing has caused, and will continue to cause, conditions of peril to the safety of persons within the City that are likely to be beyond the control of services, personnel, equipment, and facilities of the City, and desires to rely upon

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Attachment: Teleconference Resolution for March 1st Meeting (5440 : Resolution Authorizing Remote Teleconference Meetings) 01/2022/liz/A22-0005/Reso
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those orders to allow remote attendance at meetings subject to the requirements of the Brown Act; and
WHEREAS, City Council does hereby find that, commencing with the October 5, 2021 meeting, it is justified in conducting its meetings without compliance with paragraph (3) of subdivision (b) of Government Code section 54953, as authorized by subdivision (e) of section 54953, and that such the City shall comply with the requirements to provide the public with access to the meetings as prescribed in paragraph (2) of subdivision (e) of section 54953; and WHEREAS, the City has and will continue to comply with all other applicable health and safety orders.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

Section 2. Confirmation of Emergency. The City Council hereby proclaims that the state of emergency continues throughout the City, and meeting in person would be difficult due to the size of the Board room and therefore present imminent risk to those in attendance.

Section 3. Remote Teleconference Meetings. The City Manager, City Clerk and staff are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including, conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.

Section 5. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption and supersedes Resolution No. 21-98. This Resolution shall be effective until the earlier of (i) 30 days from the date of its adoption, or April 1, 2022; (ii) or such time the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which all City bodies subject to the Brown Act may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of El Centro held on the 1
st day of March 2022.

CITY OF EL CENTRO
By ___________________________
Tomas Oliva, Mayor

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Attachment: Teleconference Resolution for March 1st Meeting (5440 : Resolution Authorizing Remote Teleconference Meetings) 01/2022/liz/A22-0005/Reso
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ATTEST:

By _________________________
Norma Wyles, City Clerk
APPROVED TO FORM:

Office of the City Clerk
By__________________________
Elizabeth Martyn, City Attorney

STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) ss

CITY OF EL CENTRO )
I, Norma Wyles, City Clerk of the City of El Centro, California, do hereby certify that the foregoing Resolution No. 22- was duly and regularly adopted at a regular meeting of the City Council of the City of El Centro, California held on the 1 st day of March., 2022, by the
following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By ___________________________
Norma Wyles, City Clerk

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Attachment: Teleconference Resolution for March 1st Meeting (5440 : Resolution Authorizing Remote Teleconference Meetings) City Council of the City of El Centro Meeting: 03/01/22 11:30 AM 1275 Main Street Department: Finance
El Centro, CA 92243 Category: Public Hearing
Prepared By: Richard Romero
SCHEDULED Department Head: Richard Romero
ACTION ITEM (ID # 5419) DOC ID: 5419
Public Hearing to Increase Taxicab Rates
CITY MANAGER’S RECOMMENDATION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF EL CENTRO SETTING MAXIMUM TAXICAB RATES IN THE CITY OF EL CENTRO PURSUANT TO ARTICLE III OF CHAPTER 27 OF THE EL CENTRO CITY CODE
FISCAL IMPACT:

No direct fiscal impact on the City.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

N/A
DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

Yes
BACKGROUND:

Blue Cab One, Yellow Cab, American Taxi Care and City Cab taxicab companies are requesting for the City to revise the current taxicab rates Resolution No. 18-72 adopted on September 1, 2018 due to the rise of gasoline prices and minimum wage in the past 3 (3) years. Their request is to raise the following, Trip Charge $8.00 and Waiting Time Charge for every hour kept waiting of $30.00
Legal Authorization for Council Action:

City Code Section 27-82 Section C:
"An owner may file a written application with the City Clerk requesting an increase in the maximum tariff or rates. The application shall contain the applicants reasons and justification for the increase."
Current Rate:

The current taxicab rates were established 3 years ago by Resolution 18-72 and adopted at a regular City Council meeting held on September 1, 2018.

The fares are as follows:

A. Trip Charge $6.00
B. Additional Fare for
one or more passengers $0
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Action Item (ID # 5419) Meeting of March 1, 2022
C. Waiting Charge $.50 per minute after the initial 5 minutes not to exceed $20.00 per hour
D. Senior Citizen Charge $4.50
E. No charge shall be made for bags or other personal belongings accepted for transportation.

Taxi Rate Survey:

CITY RATE

SCHEDULE

AVERAGE
TRIP

AVERAGE
CHARGE

ADDITIONAL

PASSENGER
WAIT
TIME
SENIOR

CITIZEN
CHARGE
El Centro $6.00 2 miles $6.00 No Charge After 5
min $.50
per
minute
not to
exceed
$20.00 per
hour
$4.50
Calexico $6.50 2 miles $6.50 No Charge No Charge $5.50
Brawley $7.00 2 miles $7.00 No Charge No Charge $6.00
Imperial $5.00 2 miles $5.00 No Charge $1.00 per
minute
$6.00
Coachella $4.00 2 miles $9.24 N/A $24 per
hour in
traffic
N/A
$0.50
Sunline
Regulatory
Administration
Charge
$4.00 per mile
Palm
Springs
$4.00 2 miles $9.24 N/A $24 per
hour in
traffic
N/A
$4.00 per mile
Comparison of current rates to proposed rates:

Description of
rate
Current Proposed $ Increase % Increase
Trip Charge $6.00 $8.00 $2.00 33%
6 Packet Pg. 69
Action Item (ID # 5419) Meeting of March 1, 2022
Waiting Charge $0.50 $0.50 $0.00 0%
Per minute Per minute Per minute 25%
($20 max per
hour )
($25 max per
hour)
($5 max)
Senior $4.50 Same
No Change
$0.00 0%
DISCUSSION:

1. The California gasoline price adjusted for inflation (per the California Energy Commission) was $3.69 in 2018 and $4.60 in 2021. This is an increase of $.91 or 25%.

2. The federal minimum wage was $11.00 in 2018 and $14.00 in 2022. This is an increase of $3.00 or 27%.

3. Taxicab rates have not increased in the past three (3) years and there is no cost for additional passengers.

CONCLUSION:

Blue Cab One. Yellow Cab, American Taxi Care and City Cab taxicab companies are requesting the City to revise the current taxicab rates due to the rise of gasoline prices and minimum wage in the past three (3) years. We recommend the increase of the taxi fare to $8.00 with $25.00 maximum waiting time per hour.

ATTACHMENTS:
• Taxi Cab Letter Requesting Increase 10-25-2021 (PDF)
• California Minimum Wage History (PDF)
• California Retail Gasoline Prices (PDF)
• Taxi Cab Rate Survey FY 2022 (PDF)
• Resolution No. 22- Setting New Maximum Taxicab Rates (PDF) 6 Packet Pg. 70

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Attachment: Taxi Cab Letter Requesting Increase 10-25-2021 (5419 : Increase in Taxicab Rates)

6.b
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Attachment: California Minimum Wage History (5419 : Increase in Taxicab Rates)

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Attachment: California Retail Gasoline Prices (5419 : Increase in Taxicab Rates)

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Attachment: California Retail Gasoline Prices (5419 : Increase in Taxicab Rates)

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Attachment: Taxi Cab Rate Survey FY 2022 (5419 : Increase in Taxicab Rates)

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Attachment: Taxi Cab Rate Survey FY 2022 (5419 : Increase in Taxicab Rates)

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Attachment: Resolution No. 22- Setting New Maximum Taxicab Rates (5419 : Increase in Taxicab Rates)

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Attachment: Resolution No. 22- Setting New Maximum Taxicab Rates (5419 : Increase in Taxicab Rates) City Council of the City of El Centro Meeting: 03/01/22 11:30 AM 1275 Main Street Department: Finance
El Centro, CA 92243 Category: Informational
Prepared By: Richard Romero
SCHEDULED Department Head: Richard Romero
ACTION ITEM (ID # 5427) DOC ID: 5427
Presentation of the City of El Centro Annual Comprehensive Financial Report (ACFR) for Fiscal Year Ending June 30, 2021 CITY MANAGER’S RECOMMENDATION:

Accept the independent auditor’s report (Moss, Levy & Hartzheim) for the fiscal year end June 30, 2021 financial statements for the City of El Centro (“the City”).

FISCAL IMPACT:

Informational purposes only.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

N/A
DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

BACKGROUND:

The Annual Comprehensive Financial Report (ACFR) is prepared on an annual basis for the fiscal year ending June 30th.

DISCUSSION:

The opinion given on our ACFR was unmodified, the highest opinion that auditors can give on the financial statements. The City received the Governmental Financial Officers Association (GFOA) award for excellence in financial reporting for Fiscal Year 2020 and has submitted for the award again for Fiscal Year 2021.

The ACFR is presented in three sections: introductory, financial, and statistical. The introductory section includes the transmittal letter, the City’s organization chart and a list of City officials. The financial section includes the independent auditor’s report, the basic financial statements, notes to the financial statements, and the combining and individual fund financial statements. The statistical section, which is unaudited, contains selected financial and demographic information, generally presented on a multi-year basis.

The ending fund balance in the General Fund increased by $9,132,879 or 35.55% from $25,690,036 to $34,822,915. The ending fund balance in the Non-major Governmental funds increased by $27,997,183 or 70.16% from $39,902,845 to $67,900,028.

The ending net position in the Enterprise Funds, made up of the Water, Wastewater, Hospital and the Solid Waste Fund increased by $6,200,440 or 5.88% from 7 Packet Pg. 79
Action Item (ID # 5427) Meeting of March 1, 2022
$105,439,312 to $111,639,752.

The Management’s Discussion and Analysis pages (13-23) is an over view of the financial statements. The Notes to the Financial Statements (pages 37-98) are an integral part of understanding the financial statements.

CONCLUSION:

Accept the independent auditor’s report by Moss, Levy & Hartzheim LLP for the fiscal year end June 30, 2021 for the City of El Centro.

ATTACHMENTS:
• El Centro FS 21 Final reduced (005) - Revised (PDF)
7 Packet Pg. 80
Annual Comprehensive Financial Report
Year Ended June 30, 2021
1 2 7 5 W. M a i n S t r e e t ▪ E l C e n t r o , C A 9 2 2 4 3

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

City of El Centro, California

Annual Comprehensive
Financial Report
Year Ended June 30, 2021
Prepared by the Finance Department

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2021

TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letter of Transmittal ....................................................................................................................... 1 Certificate of Achievement for Excellence in Financial Reporting ................................................ 7 Organization Chart .......................................................................................................................... 8 Principal Officials ........................................................................................................................... 9 II. FINANCIAL SECTION
A. Independent Auditor’s Report .............................................................................................. 10 B. Management’s Discussion and Analysis .............................................................................. 13 C. Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ............................................................................................. 25 Statement of Activities ................................................................................................. 26 Fund Financial Statements:

Governmental Funds:

Balance Sheet ......................................................................................................... 27 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......................................................................... 28 Statement of Revenues, Expenditures, and Changes in Fund Balances................. 29 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ......................................................................................................... 30 Proprietary Funds:

Statement of Net Position ...................................................................................... 31 Statement of Revenues, Expenses, and Changes in Net Position .......................... 32 Statement of Cash Flows ...................................................................................... 33 Fiduciary Funds:

Statement of Fiduciary Net Position ...................................................................... 34 Statement of Changes in Net Position ................................................................... 35 Notes to Basic Financial Statements ................................................................................. 37 D. Required Supplementary Information:

Schedule of Changes in Net Pension Liability and Related Ratios – City Miscellaneous Plan ............................................................................................. 101 Schedule of Pension Contributions – City Miscellaneous Plan ............................. 102 Schedule of Proportionate Share of Net Pension Liability – City Safety Plan ...... 103 Schedule of Pension Contributions – City Safety Plan ......................................... 104 Schedule of Changes in Net OPEB Liability and Related Ratios .......................... 105 Schedule of OPEB Employer Contributions ......................................................... 106 Schedule of Changes in Net Pension Liability and Related Ratios – Hospital Plan....................................................................................................... 107 Schedule of Pension Contributions – Hospital Plan .............................................. 108 Note to Required Supplementary Information ...................................................... 109 General Fund – Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual ................................................................... 110

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2021

TABLE OF CONTENTS
II. FINANCIAL SECTION (Continued)
E. Other Supplemental Information
Nonmajor Governmental Funds ........................................................................................... 111 Combining Balance Sheet .......................................................................................... 116 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................................................................................... 124 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Gas Tax Special Revenue Fund ........................................................................... 131 Transportation Article 8A Special Revenue Fund ............................................... 132 Bus Shelter Special Revenue Fund ...................................................................... 133 Transportation Article 3 Special Revenue Fund .................................................. 134 Home Program Special Revenue Fund ................................................................ 135 Rental Rehab-HUD Special Revenue Fund ......................................................... 136 Traffic Congestion Relief Special Revenue Fund ................................................ 137 Home Program Income Admin Special Revenue Fund ........................................ 138 Recreation Projects Special Revenue Fund .......................................................... 139 Wake Ave Extension Special Revenue Fund ....................................................... 140 Special Events Special Revenue Fund ................................................................. 141 Asset Forfeiture Special Revenue Fund ............................................................... 142 Local Transportation Authority Special Revenue Fund ....................................... 143 Home Grants Special Revenue Fund ................................................................... 144 OTS Grant Special Revenue Fund ....................................................................... 145 State COPS SLESF Special Revenue Fund ......................................................... 146 Annexation Fees Special Revenue Fund .............................................................. 147 HUD Entitlement Special Revenue Fund ............................................................ 148 CDBG Program Income Special Revenue Fund .................................................. 149 Housing Enabled by Local Partnership Special Revenue Fund ........................... 150 CALHOME Program Special Revenue Fund ...................................................... 151 Development Impact Fee Special Revenue Fund ................................................ 152 FHWA Grants Special Revenue Fund ................................................................. 153 Town Center Lighting and Landscaping Special Revenue Fund ......................... 154 I-8 Imperial Ave Overpass Special Revenue Fund .............................................. 155 EDA Revolving Special Revenue Fund ............................................................... 156 Police & Fire Operational Special Revenue Fund ............................................... 157 Legacy Ranch Lighting and Landscaping District Special Revenue Fund .......... 158 IV Commons Special Revenue Fund ................................................................... 159 Fire Mitigation Special Revenue Fund ................................................................ 160 COVID-19 Special Revenue Fund ....................................................................... 161 IID Project Special Revenue Fund ....................................................................... 162

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2021

TABLE OF CONTENTS
II. FINANCIAL SECTION (Continued)
E. Other Supplemental Information (Continued)
Nonmajor Governmental Funds (Continued)
Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Continued):

Police Grant Special Revenue Fund..................................................................... 163 Successor Agency Housing Special Revenue Fund ............................................. 164 Cooperative Agreement Special Revenue Fund .................................................. 165 Orange Ave Regional Lift Capital Projects Fund ................................................ 166 Park Development Capital Projects Fund ............................................................ 167 Drainage Facility Capital Projects Fund .............................................................. 168 Lotus Parallel Capital Projects Fund .................................................................... 169 IID Facility Crossing Capital Projects Fund ........................................................ 170 8th Street Overpass Bridge Capital Projects Fund ................................................ 171 Bridge/Road Improvement Capital Projects Fund ............................................... 172 Federal Highway Administration Capital Projects Fund ..................................... 173 La Brucherie Green Belt Capital Projects Fund ................................................... 174 Colonia-El Dorado Special Revenue Fund .......................................................... 175 LTA Lease Revenue Bonds Capital Projects Fund .............................................. 176 Buena Vista Landscaping and Lighting District Capital Projects Fund .............. 177 Road Improvement Capital Projects Fund ........................................................... 178 2011C Bonds City Capital Projects Fund ............................................................ 179 2011A & B Projects Capital Projects Fund ......................................................... 180 LTA Lease Revenue Bonds Debt Service Fund .................................................. 181 Financing Authority Debt Service Fund .............................................................. 182 Nonmajor Proprietary Fund ................................................................................................. 183 Statement of Net Position ........................................................................................... 184 Statement of Revenues, Expenses, and Changes in Net Position ............................... 185 Statement of Cash Flows ............................................................................................ 186 Internal Service Funds .......................................................................................................... 187 Combining Statement of Net Position ........................................................................ 188 Combining Statement of Revenues, Expenses, and Changes in Net Position ............ 189 Combining Statement of Cash Flows ......................................................................... 190

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2021

TABLE OF CONTENTS
II. FINANCIAL SECTION (Continued)
E. Other Supplemental Information (Continued)
Fiduciary Funds .................................................................................................................... 191 Private-Purpose Trust Funds
Combining Statement of Net Position ........................................................................ 192 Combining Statement of Changes in Net Position ..................................................... 193 III. STATISTICAL SECTION

Statistical Section ................................................................................................................... 195 Financial Trends Information
Net Position by Component – 10 Years ............................................................................... 196 Changes in Net Position – 10 Years ..................................................................................... 197 Fund Balances of Governmental Funds – 10 Years ............................................................. 199 Changes in Fund Balances of Governmental Funds – 10 Years .......................................... 200 Revenue Capacity Information
Property Ad Valorem Tax Assessed Values – 10 Years ...................................................... 201 Debt Capacity Information
Direct and Overlapping Property Tax Rates – 10 Years ...................................................... 202 Principal Property Taxpayers ............................................................................................... 203 Property Tax Levies and Collections – 10 Years ................................................................. 204 Ratios of Outstanding Debt by Type – 10 Years .................................................................. 205 Ratios of General Bonded Debt Outstanding – 10 Years ..................................................... 206 Statement of Direct and Overlapping Debt – Current Year ................................................. 207 Computation of Legal Debt Margin – 10 Years ................................................................... 208 Pledged-Revenue Coverage – 10 Years ............................................................................... 209

Demographic and Economic Information
Demographic and Economic Statistics – 10 Years .............................................................. 210 Principal Employers ............................................................................................................. 211 Employees by Function (Full Time Equivalents) – 10 Years .............................................. 212 Construction Activity and Bank Deposits ............................................................................ 213

Operating Information
Capital Assets Statistics by Function – 10 Years ................................................................. 214 Demands for City Services – 10 Years ................................................................................ 215

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 1 7.a
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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 2 only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of El Centro’s separately issued Single Audit Report.

U.S - 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 of El Centro’s MD&A can be found immediately following the report of the independent auditors.

Profile of the Government
The City of El Centro is located in the southern part of the State, which is considered to be one of the fastest growing areas in the State. The City currently occupies a land area of approximately 11 square miles and serves a population of approximately 44,997. The City of El Centro is empowered by the State to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the governing Council.

The City was incorporated under the Laws of the State of California in 1908. However on November 3, 2009 voters approved measure G adopting a City Charter. Under the provisions of the charter, the City of El Centro has full authority over its own municipal affairs including; bidding and contracting procedures; regulation of parks; libraries; and other facilities; certain fees; imposition of taxes; municipal zoning; municipal utilities and municipal election procedures.

The City of El Centro operates under a Council-Manager form of Government. The City Council consists of five members elected by the residents of the City. Council terms are four years, elected in November of even-numbered years. Each November, the City Council selects the Mayor from among its members for a one-year term. The Council is elected on an at large non-partisan basis.

The Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager, City Attorney, and the City Clerk. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments.

The City of El Centro provides a full range of services, including police and fire protection; the construction and maintenance of streets and other infrastructure; recreational activities; and water and sewer services. Solid Waste collection and disposal is contracted out. The City of El Centro also is financially accountable for the El Centro Regional Medical Center (Hospital), which is reported within the Proprietary Funds of the City’s financial statements. Additional information on the Hospital can be found in Note 1 and other various notes (Note 3, Note 4, Note 6, Note 7, Note 8, Note 9, Note 11, Note 12, Note 16 and Note 19 in the Notes to the Financial Statements and page 107 in the Required Supplementary Information section of the financial statements.

The Annual Budget serves as the foundation for the City of El Centro Financial Planning and Control. Prior to June 30 of each year the Finance Director submits to the City Council a proposed operating budget for the Fiscal Year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted and prior to June 30, the budget is adopted by motion of the City Council. The appropriated budget is prepared by Fund, Function (e.g. Public Safety) and Department (e.g. Police). Department Heads may request transfers of appropriations within their departmental budgets. Transfers of appropriations between departments, however require the authorization of the City Manager. Any

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 3 revision that increases the total appropriations of any fund by more than fifty thousand dollars ($50,000) must be approved by the City Council. The City maintains an encumbrance accounting system of purchase orders and contracts as a means of accomplishing budgetary control. Purchase orders are reviewed to ensure that funds are available and that requests are properly authorized prior to being released to vendors.

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, this comparison is presented on Page 110 as part of the basic financial statements for the governmental funds.

Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of El Centro operates.

Local Economy
The County of Imperial consists of seven cities and an unincorporated area with a countywide population of approximately 186,034. The City of El Centro is the largest City in the County, with a population of approximately 44,997 (per Department of Finance). Among the many attributes that makes Imperial County attractive to both commercial and residential development is the abundance of inexpensive water, energy, and land. Additionally, the County serves as the Gateway to the United States for the City of Mexicali, Mexico, the capital of Baja California. Mexicali has a population in excess of 1,140,000 and a significant number of maquiladoras (A maquiladora is an assembly plant in Mexico, especially one along the border between the United States and Mexico, to which foreign materials and parts are shipped and from which the finished product is returned to the original market). These factors and others resulted in a discernible trend toward significant growth in both residential and commercial development.

In 2004, the City of El Centro experienced tremendous economic growth with the construction of a 766,333 square foot mall and nearby strip malls. The opening of the mall brought a substantial increase in retail opportunities to the City as well as an increase in sales and sales tax revenue. By the year 2008, however, the economy had started slowing down, then severely contracted in 2010 due to the recession that was affecting the nation as a whole. During this time, sales tax revenue substantially declined for the City of El Centro.

The local economy has significantly improved since then and has remained stable causing the City of El Centro to experience a notable and steady growth in sales tax revenue. The local mall continues to attract residents from the surrounding cities as well as those from other areas such as, Yuma, Arizona and Mexicali, Mexico. Some of the major retailers located in the area include Macy’s, Dillard’s, JCPenney, Best Buy, Ross, Burlington Coat Factory, Marshall’s, Michael’s, Kohl’s, Kirkland, Ulta, Bev Mo, and others. In addition, the following restaurants surround the mall area: Olive Garden, Chili’s, Famous Dave’s, Denny’s, Johnny Carino’s, Buffalo Wild Wings, Starbucks and others.

The General Fund revenues for fiscal year 2021 totaled $38 million. This is an increase of 3.8 million from fiscal year 2020. The robust revenue increase of 11.39% over FY 2020 was mainly related to increases in sales tax revenue.

Some of the challenges the City continues to face are the increase in pension and personnel costs.

Based on the last CalPERS valuation it is estimated that pension costs will increase an additional $1.3 million by fiscal year 2027. Personnel costs are expected to increase approximately $3.6

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 4 million during the same time period. Given the increase in pension and personnel cost the city will continue to seek cost cutting measures in order to produce a balanced budget.

In November 2016, the City proposed and citizens approved Measure P which increased the retail sales tax by half of one percent (1/2%). The projected revenue from this tax is approximately $6.1 million per year. This additional tax became effective April 1, 2017 and is to be used to address major capital needs. Some of the capital improvements that were considered included a new police station, a new library building, additional parks, and others. Working groups have been established and they determined that bonds would be issued for the construction of a new Library and Police station. In FY 2021 bonds were issued for the construction of the Library and the project is scheduled to be completed in August 2022. In FY 2023 the construction of a new Police Station should begin with date of completion set for FY 2024. The bonds issued will be secured by the Measure P sales tax revenue stream.

The following are some of the economic factors that help contribute to the outlook for financial improvement and stability:
 More diverse economy with per capita sales at 100% of national averages  The regional mall and the continued interest for increased commercial development surrounding the mall and in other areas of the City. In addition to the new businesses that have opened within the last four fiscal years (second Ross store and specialty grocery store Aldi, Ashley Home Store, Planet Fitness, Buffalo Wild Wings, Starbucks #6, Habit Burger, Panera Bread, specialty grocery store Grocery Outlet and Boot Barn).  Proximity to the economy of Mexicali, Mexico and the continued inflow of consumers from this country.

Long-Term Financial Planning
The fund balance in the general fund as of June 30, 2021 is $34.8 million. Of this amount approximately $1.9 million has been assigned to fund the post-employment benefit liability (OPEB). The unassigned portion of fund balance is $32.8 million or 110% of operating expenditures. Approximately $14.3 million of this fund balance is from Measure P funds. The level of fund balance falls within the policy guidelines set by the City for budgetary and planning purposes. In addition to fund balance the City has funded 138% of the $7.4 million actuarial accrued liability for OPEB. This is set up in an irrevocable trust, CalPERS. The OPEB liability was calculated through an actuarial analysis. This liability is reflected on the Government Wide Financial Statements.

The City’s financial condition is monitored on a regular basis. Reports detailing the financial performance of all major funds are presented to the City Council on a periodic basis. Revenue and expenditure trends are closely tracked and analyzed.

Other revenue sources approved by the City include Landscape/Lighting Districts and Community Facilities Districts. The City has updated various fees, such as development impact fees, to aid in financing the additional services that the City is required to provide. In order to continue to provide a high level of water and wastewater services to existing residents, businesses, and new residences the City will be reviewing its water and wastewater rates in fiscal year 2023. In 2006, the City obtained necessary debt financing for updating and expanding facilities, delivery and collection systems by issuing $65 million in water and wastewater revenue bonds. The City refunded these bonds in fiscal year 2015 to reduce debt service expenses. The estimated net present value savings were approximately $4.7 million.

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 5 GASB 75 - OPEB – Other Post Employment Benefit Liability Governments have pension obligations to their current and retired employees and these are calculated and accounted for. The City of El Centro provides post-retirement health and dental care benefits, as required by the various collective bargaining agreements for retirees that meet certain criteria. The City of El Centro had previously implemented GASB 45 requirements with the financial statement for fiscal year ended June 30, 2009 and recognized a net OPEB liability related to these benefits. With the implementation of GASB 75, accounting standards were adopted regarding these OPEB liabilities. An independent actuarial valuation in conformance with these new standards determined the total OPEB liability, total fiduciary net position and net OPEB liability with regards to these benefits. The results of this actuarial valuation can be found in note 14 to the financial statements in this report. The total OPEB liability totals $7.4 million and the City already has $10.2 of fiduciary net position, which consists of prior contributions and interest earned, to address that liability. In addition, the City has assigned amounts previously mentioned as well to fund any unforeseen outcomes.

GASB 54
This is the eighth year the City is required to produce its financial statements in conformity with GASB 54. This GASB requirement concerns mainly the categories and terminology used to describe the components that compose fund balance. In addition, Statement 54 clarifies how rainyday amounts can be reported by treating stabilization arrangements as a specified purpose.

Consequently, amounts constrained to stabilization are to be reported as restricted or committed fund balance in the General Fund if they meet the other criteria for those classifications. As a result the ACFR can no longer list the Reserve for Economic Unknowns separately. The City has a policy that requires a reserve for economic uncertainties equal to at least 10% of annual operating expenditures. The General Fund balance of $34.8 million includes an unassigned balance of $32.8 million. Of this unassigned amount $2.9 million is for economic uncertainties per the City’s policy.

GASB 68
This is the sixth year that the City is required to produce its financial statement in conformity with GASB 68. This GASB requirement concerns mainly the reporting of net pension obligations. The City’s net pension liability for each plan is measured as the total pension liability, less the pension plan’s fiduciary net position as of June 30, 2021, using an annual actuarial valuation prepared by CalPERS for the miscellaneous plan and Bartell & Associates for the safety plan. The net pension liability is $18.7 million for the miscellaneous plan and $33.6 million for the safety plan.

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 of El Centro for its annual comprehensive financial report (ACFR) for the fiscal year ended June 30, 2020. This was the fourteenth consecutive year the City of El Centro has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only.

We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to GFOA to determine its eligibility for another Certificate of Achievement.

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of El Centro
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO 7

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) City of El Centro
Organizational Chart

BOARDS &

COMMISSIONS

ADRIANA NAVA

DIRECTOR OF

COMMUNITY

SERVICES

ABRAHAM CAMPOS

DIRECTOR OF

PUBLIC WORKS/

ENGINEERING

BRIAN JOHNSON
POLICE
CHIEF

KEN HERBERT
FIRE
CHIEF

RICHARD ROMERO

DIRECTOR OF

FINANCE

NORMA VILLICANA

DIRECTOR OF

COMMUNITY

DEVELOPMENT

DULCE BEDOLLA

INTERIM DIRECTOR OF
HUMAN

RESOURCES

CITY MANAGER

MARCELA PIEDRA

CITY ATTORNEY
ELIZABETH L. MARTYN

CITY COUNCIL CITY CLERK

NORMA WYLES

CITIZENS
OF

EL CENTRO
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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

9 Karla Chaparro
Finance Manager
Sylvia Marroquin
Council Member
Tomas Oliva
Council Member

Edgard Garcia
Council Member
Martha Cardenas-Singh
Council Member
Cheryl V. Walker
Mayor
Elizabeth Martyn
City Attorney
Norma Wyles
City Clerk
Dulce Bedolla
Abraham Campos
Kenneth Herbert
Brian Johnson
Adriana Nava
Norma Villicana
Interim Director of Human Resources
Director of Public Works/City Engineer
Fire Chief
Police Chief
Director of Community Services
Director of Community Development
Prepared By:

Richard Romero
Director of Finance

CITY OF EL CENTRO
Marcela Piedra
City Manager

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

THIS PAGE INTENTIONALLY LEFT BLANK

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 10 OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA
MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS

PARTNERS COMMERCIAL ACCOUNTING & TAX SERVICES GOVERNMENTAL AUDIT SERVICES RONALD A LEVY, CPA 433 N. CAMDEN DRIVE, SUITE 730 5800 HANNUM, SUITE E CRAIG A HARTZHEIM, CPA BEVERLY HILLS, CA 90210 CULVER CITY, CA 90230 HADLEY Y HUI, CPA TEL: 310.273.2745 TEL: 310.670.2745
ALEXANDER C HOM, CPA FAX: 310.670.1689 FAX: 310.670.1689 ADAM V GUISE, CPA www.mlhcpas.com www.mlhcpas.com

TRAVIS J HOLE, CPA
Independent Auditor’s Report
The Members of the City Council of the
City of El Centro
El Centro, California
Report on the Financial Statements
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 the City of El Centro, California (City), as of and for the fiscal year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Hospital Fund, which represents 68.1%, 87.7%, and 43.2%, respectively, of the assets, revenues, and net position of Business-type activities. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Hospital Fund, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 11 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of El Centro, California, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof, for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter
As discussed in Note 23 to the financial statements, in January 2020, the World Health Organization has declared COVID-19 to constitute a “Public Health Emergency of International Concern.” Given the uncertainty of the situation, the duration of any financial impact cannot be reasonably estimated at this time. Our opinion is not modified with respect to this matter.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 13 through 23, the Schedule of Revenues Expenditures, and Changes in Fund Balance – Budget to Actual – General Fund, the Note to Required Supplementary Information, the Schedule of Changes in Net OPEB Liability and Related Ratios, the Schedule of OPEB Employer Contributions, the Schedule of Changes in Net Pension Liability and Related Ratios – City Miscellaneous Plan, the Schedule of Pension Contributions – City Miscellaneous Plan, the Schedule of Proportionate Share of Net Pension Liability – City Safety Plan, the Schedule of Pension Contributions – City Safety Plan, the Schedule of Proportionate Share of Net Pension Liability – Hospital Plan, the Schedule of Pension Contributions – Hospital Plan on pages 101 through 110 be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the 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.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s financial statements as a whole. The introductory section, combining nonmajor governmental fund financial statements, nonmajor governmental funds budgetary comparison schedules, combining nonmajor proprietary fund financial statements, combining internal service fund financial statements, the combining private purpose trust and agency fund financial statements, and the statistical section are presented for purposes of additional analysis and are not required parts of the financial

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Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 12 statements. The combining nonmajor governmental fund financial statements, nonmajor governmental funds budgetary comparison schedules, combining nonmajor proprietary fund financial statements, combining internal service fund financial statements, and combining private purpose trust and agency fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 28, 2022, 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 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 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
Moss, Levy & Hartzheim, LLP
Culver City, California
January 28, 2022

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Packet Pg. 100 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 13 Management’s Discussion and Analysis
As management of the City of El Centro, we offer readers of the City of El Centro’s financial statements this narrative overview and analysis of the financial activities of the City of El Centro for the fiscal year ended June 30, 2021. 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 on pages 1-6 of this report. All amounts, unless otherwise indicated, are expressed in thousands of dollars.

Financial Highlights
I. Statement of Net Position and Statement of Activities  The assets of the City of El Centro exceeded its liabilities at the close of the most recent fiscal year by $245,286. Of this amount, $51,701 may be used to meet the government’s ongoing obligations to citizens and creditors. The deferred outflow of resources are $19,914 and the deferred inflow of resources are $4,373.
 The government’s total net position increased by $25,189. Through current fiscal year’s transaction, the governmental activities increased the City’s net position by $18,989 and the business-type activities increased by $6,200.

II. Balance Sheet-Governmental Funds
 As of the close of the current fiscal year, the City of El Centro’s governmental funds reported combined ending fund balances of $102,723. Approximately 32% or $32,883 is available for spending (Unassigned Fund Balance). See additional discussion in the Financial Analysis of the City’s Funds on Pages 27 to 35.
 At the end of the current fiscal year, unassigned fund balance for the general fund was $32,883 or approximately 94 percent of total general fund expenditures.

Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of El Centro’s basic financial statements. The City of El Centro’s basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of El Centro’s finances, in a manner similar to a private-sector business.

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

The statement of activities presents information showing how the government’s net position changed during 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 (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City of El Centro that are principally supported by taxes and intergovernmental revenues (governmental activities), from other functions that are intended to recover all or a significant portion of their costs through user fees

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Packet Pg. 101 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 14 and charges (business-type activities). The governmental activities of the City of El Centro include general government, public safety, community development, public works, economic development, blight elimination, parks, recreation and library. The business-type activities of the City of El Centro include water, sewer (wastewater), solid waste, and a community hospital.

The government-wide financial statements can be found on pages 25-26 of this report.

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 of El Centro, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of El Centro can be divided into three categories; governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-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 that are available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

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

The City of El Centro maintains 59 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund which is considered to be a major fund. Data from the other 58 governmental funds are combined into a single, aggregated presentation.

Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.

The City of El Centro adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget.

The governmental fund financial statements can be found on pages 27-30 of this report.

Proprietary Funds. The City of El Centro maintains two different types of proprietary funds.

Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of El Centro uses enterprise funds to account for its water, wastewater, and solid waste operations as well as the community hospital, El Centro Regional Medical Center. Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City of El Centro on a cost reimbursement basis. The City of El Centro uses internal service funds to account for its fleet of vehicles, workers compensation program, group health insurance, and post-employment benefits.

Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities, in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, wastewater, and hospital operations, all of which are considered to be Major Funds of the City

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Packet Pg. 102 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 15 of El Centro. Conversely, Internal service funds are combined into a single aggregated presentation, in proprietary fund financial statements.

Individual fund data for the internal service and non-major enterprise funds is provided in the form of combining statements elsewhere in this report.

The proprietary fund financial statements can be found on pages 31-33 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 reflected in the government-wide financial statements because the resources of those funds are not available to support the City of El Centro’s own programs.

The accounting used for fiduciary funds is much like that used for proprietary funds.

The fiduciary fund financial statements can be found on page 34-35 of this report.

Notes to the Financial Statements. The notes provide additional information that is essential to the full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 37-98 of this report.

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of El Centro’s Schedules of Changes in Net Pension Liability and Related Ratios, Schedules of Pension Contributions, Schedule of Funding Progress for Other Post-employment Benefits, Hospital Fund’s Schedule of Changes in Net Pension Liability and Related Ratios, Hospital Fund’s Schedule of Pension Contributions, notes to Required Supplementary Information and Schedule of Revenues, Expenditures, and Changes in Fund Balance (Final Budget, Original Budget, and Actual Amount) for the General Fund. Required supplementary information can be found on pages 101-110 of this report.

The combining statements referred to earlier in connection with non-major governmental funds, proprietary funds, and fiduciary funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 111-193 of this report.

Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of El Centro, assets exceeded liabilities by $245,286 (see table 1, below) at the close of the most recent fiscal year.

The City of El Centro’s net position in the amount of $126,976 (approximately 52 percent) reflects its investment in capital assets (e.g., land, infrastructure, buildings, machinery, and equipment), net of accumulated depreciation, less any related debt used to acquire those assets that is still outstanding.

Of this amount $39,272 is related to business type activities with approximately $25,920 in the hospital fund and $13,352 in the water and wastewater funds. The City of El Centro uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

Although the City of El Centro’s investment in its capital assets is reported net of related debt, it should be noted that the resources to repay this debt must be provided from other sources, since the capital assets themselves normally are not used to liquidate these liabilities.

An additional portion of the City of El Centro’s net position in the amount of $66,610 (approximately 27 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $51,701, may be used to meet the government’s ongoing obligations to citizens and creditors. The unrestricted net position for Governmental activities increased from negative $13.3 million in fiscal year 2020 to negative $6.7 million in fiscal year 2021.

The increase was due to cost cutting measures as well as funding provided for COVID relief.

At the end of the current fiscal year, the City of El Centro is able to report positive balances in all three categories of net position, for the government as a whole, as well as for its separate business-type activities.

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Packet Pg. 103 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 16 Table 1 – City of El Centro Net Position
June 30, 2021 (Thousands)
Note: Throughout this MD&A, dollar amounts may be expressed in multiples of one thousand or one million dollars using standard rounding conventions and percentages may be rounded to the nearest tenth or the whole number, creating differences between the details and total.

As shown in Table 2 (below), the City of El Centro’s total Net Position increased by $25,189, with Governmental Activities Net Position increasing by $18,989. 2021 2020 2021 2020 2021 2020
Current Assets and Other Assets 87,542 125,483 180,271 194,749 282,291 305,754 Capital Assets 101,354 101,698 186,879 194,356 288,233 296,054 Total Assets 188,896 227,181 381,628 374,627 570,524 601,808 Deferred Loss on Refunding - - 3,297 3,529 3,529 3,297 OPEB/Pension Related 8,833 9,848 8,880 6,769 17,713 16,617 Total Deferred Outflow of Resources 8,833 9,848 12,409 10,066 21,242 19,914 Current and Other Liabilities 10,233 12,909 31,837 47,571 42,070 60,480 Long-term Liabilities 68,658 87,067 224,516 255,870 324,528 311,583 Total Liabilities 78,891 99,976 272,087 287,707 366,598 372,063 OPEB/Pension Related 4,181 3,407 890 966 4,373 5,071 Total Deferred Inflow of Resources 4,181 3,407 890 966 4,373 5,071 Net Position:

Net investment in Capital Assets 87,033 87,703 36,516 39,272 126,975 123,549 Restricted 40,937 52,654 17,365 13,956 58,302 66,610 Unrestricted (13,312) (6,711) 51,558 58,412 38,246 51,701 Total Net Position 114,658 133,646 105,439 111,640 220,097 245,286 Governmental
Activities
Business-type
Activities Total

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Packet Pg. 104 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 17 Table 2 – City of El Centro Changes in Net Position
For the Fiscal Year Ended June 30, 2021 (Thousands)
Note: Throughout this MD&A, dollar amounts may be expressed in multiples of one thousand or one million dollars using standard rounding conventions and percentages may be rounded to the nearest tenth or the whole number, creating differences between the details and total.

Governmental Activities
The change in Net Position for Governmental Activities was a increase of $18,988 for the fiscal year ended June 30, 2021. The following were the key elements in the change in net position:
 Total revenues increased by 19,177 or 44 percent to $62,696. Expenses remained largely the same at $43,708.
 Total revenues and transfers increased from previous year due to the following decreases and increases:
2021 2020 2021 2020 2021 2020
Revenues:

Program Revenues:

Charges for Services 1,617 1,852 189,527 175,701 191,379 177,318 Operating Grants & Contributions 5,016 19,990 21,830 16,475 41,820 21,491 Capital Grants & Contributions 7,057 7,412 1,130 8,542 31 7,088 General Revenues:

Property Tax 4,001 4,130 - - 4,130 4,001
Sales Tax 18,065 20,854 - - 20,854 18,065
Motor Vehicle in Lieu of Taxes 4,552 4,753 - - 4,753 4,552 Investment Earnings 474 569 6,025 3,809 6,594 4,283
Other 2,737 3,136 - - 3,136 2,737
Total Revenues 43,519 62,696 218,512 196,016 281,208 239,535 Expenses:

General Government 5,773 5,677 - - 5,677 5,773
Public Protection 20,754 19,532 - - 19,532 20,754
Community Development 4,769 5,013 - - 5,013 4,769
Public Works 5,850 6,331 - - 6,331 5,850
Parks and Recreation 5,557 5,813 - - 5,813 5,557
Interest on Long-Term Liabilities 999 1,342 - - 1,342 999 Water - - 9,746 9,661 9,746 9,661
Wastewater - - 8,750 8,317 8,750 8,317
Hospital - - 191,749 173,627 191,749 173,627
Other - - 2,066 2,021 2,066 2,021
Total Expenses 43,702 43,708 212,311 193,626 256,019 237,328 Excess (Deficiency) before transfers (183) 18,988 6,201 2,390 25,189 2,207 Increase (Decrease) in Net Position (183) 18,988 6,201 2,390 25,189 2,207 Net Position - Beginning of Fiscal Year 116,160 114,658 105,439 103,401 220,097 219,561 Prior Period Adjustments (1,319) (352) (1,671) - Net Position - Beginning of Fiscal Year (restated) 114,658 114,841 105,439 103,049 220,097 217,890 Net Position - End of Fiscal Year 114,658 133,646 111,640 105,439 245,286 220,097 Governmental Business-Type
Activities Activities Total

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Packet Pg. 105 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 18 o The increases in revenues from the previous year were primarily due to the following reasons;

1. Grant funding in the following funds; COVID-19, $11,344

2. Debt proceeds in the Library Project Fund, $17,405.
 Total Expenses were largely the same as in the previous fiscal year.

Business-type activities
The Net Position for business-type activities increased by $6,200. In fiscal year 2021, revenues increased by $22,496 or 11 percent. Expenses increased by $18,685 or 9.7 percent.  Total revenues increased from previous year due to the following changes:

1. Increase - Charges for services $13,794

2. Increase - Capital grants & contributions $155

3. Increase - Operating grants & contributions $6,642

4. Increase - Investment earnings $2,216

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Packet Pg. 106 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 19  Total expenses increased from previous year due to the following changes:

1. Increase in Hospital enterprise fund expenditures of $38,040.

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Packet Pg. 107 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 20 There are three major proprietary funds. The major funds are the following; water fund, wastewater fund, and the hospital fund. The net position for each of these funds changed as follows: the water fund from $26,927 to $28,668 for an increase of 6.5%. The wastewater fund increased from $32,273 to $34,678 or 7.4%. The Hospital’s net position decreased from $46,133 to $48,190 or 4.5%.

Financial Analysis of the Government’s Funds
As noted earlier, the City of El Centro uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds. The focus of the City of El Centro’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 of El Centro’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.

As of the end of the current fiscal year, the City of El Centro’s governmental funds reported combined ending fund balances of $102,723, a decrease of $37,130 in comparison with the prior fiscal year.

Approximately 32% of the total ending fund balance in the amount or $32,883 constitutes unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is restricted, non-spendable, committed, or assigned.

The general fund is the chief operating fund of the City of El Centro. At the end of the current fiscal year, unassigned fund balance in the general fund was $32.8 million and the amount of assigned fund balance for other post-employment benefit liability is $1.9 million (GASB 75 requires the recording of the net OPEB liability on the government wide financial statements). Total fund balance as of June 30, 2021 was $34.8 million. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 110 percent of total general fund expenditures, while total fund balance represents 117 percent of the total general fund expenditures.

Significant factors related to the revenue and expenditures of the general fund for the current fiscal year are as follows:
 Revenues for the general fund totaled $37,908, which was a increase of $3,876 or approximately 11 percent from the prior fiscal year.
 Taxes increased by $3,300 or 13% from last year. The increase in sales tax revenues from Measure P was $894 and sales tax from non-Measure P was $1,895, for a combined increase in sales tax of $2,789. Other tax revenue changes are as follows: increase in property taxes for $111, increase in business license tax for $57, increase in transient occupancy tax for $343.  Intergovernmental revenues increased by $128 due to the following: increase in motor vehicle license fees of $201, decrease in revenue from other agencies of $139, decrease in POST reimbursement of $47, increases in federal and state grants of $126, increases in Housing Authority $4 and decreases in Dispatch Services $17.
 Charges for services increased by $219 due to the following increases and decreases: increases in Planning Fees of $15, decrease in police and fire department fees of $38, increase in engineering fees of $181, decrease in streets & sidewalk fees of $4, increase in recreation fees of $88, decreases in other fees $23.
 Interest revenue increased by $158.
 Other revenue increased by $57
 Expenditures for the general fund totaled $29,804. This is a decrease of $3,803 or approximately 11 percent from the prior fiscal year. General government increased by $110, Public Safety increased by $3,301, Public Works increased by $29, Parks & Recreation decreased by $3,272, Community Development increased by $285, and capital purchases decreased by $4,256.

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Packet Pg. 108 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 21 Proprietary Funds
The City of El Centro’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Net position of the proprietary (enterprise) funds at the end of the fiscal year amounted to $111,639.

This amounts to an increase in net position for all enterprise funds in the amount of $6,200. Other factors concerning the finances of these funds have already been addressed in the discussion of the City of El Centro’s business-type activities.

General Fund Budgetary Highlights
Actual expenditures for the fiscal year in the amount of $29,804 were $5,127 (14%) below the final budgeted amounts. Expenditures were lower than the final budgeted amount primarily for the following reasons: lower capital expenses for Parks ($921), General Government ($148), Public Safety ($1,377) and Capital Outlay ($2,381).

Capital Asset and Debt Administration
As of June 30, 2021, the City’s investment in capital assets for its governmental and business-type activities amounted to $126,976 (net of accumulated depreciation). The investments in capital assets are comprised of land, building and improvements, infrastructure, vehicles, furniture and equipment, and construction in progress. The City, according to GASB 34 guidelines has elected, retroactively, to include all infrastructure assets dating back to 1980.

Major changes in capital asset during the current fiscal year included the following:
 Park improvements $18,424 (Aquatic Park, First Responders Park, and Carlos Aguilar Park)
 Cruickshank Landfill Clean-up - $7,740
 Street improvements-La Brucherie Widening - $4,984
 Office machines and software $394
 Homekey Tiny Home Project - $3,049
 Water and Wastewater system vehicles $272, improvements $13,795, and equipment $350
Table 3 – City of El Centro’s Capital Assets
(Net of Accumulated Depreciation)
June 30, 2021 (Thousands)
Additional information on the City of El Centro’s capital assets can be found in Note 6 on pages 56- 57 of this report.

Governmental Business-Type
Activities Activities Total
Land 2,346 3,272 926 Building & Improvements 67,918 103,902 171,820 Infrastructure 16,428 16,428 - Vehicles 1,135 1,702 567 Furniture & Equipment 2,254 32,319 34,573 Construction in Progress 11,617 56,642 68,259
- Total 101,698 194,356 296,054

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Packet Pg. 109 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 22 Long-Term Debt
At the end of the current fiscal year, the City had total long-term debt outstanding of $237,612. The composition of long-term debt is outlined in Table-4 below.

Table 4 – The City’s Outstanding Debt
June 30, 2021 (Thousands)
The majority of the long-term debt is comprised as follows:
 Hospital Revenue Bonds in the amount of $115,800, net of unamortized discount.

El Centro Regional Medical Center issued $125,000 in Hospital Revenue Refunding Bonds in 2018. The proceeds are being used to finance the construction and equipping of the Medical Center’s expansion project and refinance the bond series 2015.
 Installment loan with CIEDB in the amount of $639. The City of El Centro obtained an installment loan from CIEDB in 2003 for water and wastewater improvements in the amount of $5.6 million.
 Advance from successor agency in the amount of $9,916, including unamortized premiums, due to issuance of the 2011 successor bonds series C  Governmental activities Lease Revenue Bonds in the amount of $27,238, net of unamortized premiums and discount. The City of El Centro issued $16,700 during the fiscal year ended June 30, 2021 for the Library Project.  Governmental activities Revenue Bonds in the amount of $3,499, net of unamortized discount. The El Centro Financing Authority issued the Revenue Bonds Series 2011 in the amount of $11,095. The bonds were issued to finance the acquisition of the Redevelopment Agency of the City of El Centro, El Centro Redevelopment Project Tax Allocation Bonds Series 2011C.  Business-type activities Sewer Revenue Refunding Bonds in the amount of $4,038, net of unamortized discount. The City of El Centro issued $7.8 million in revenue bonds in 2012 to refund the 1997 wastewater revenue bonds.  Business-type activities Revenue Bonds in the amount of $46,408 million, including unamortized premiums. The City of El Centro issued $52.5 million in revenue bonds in 2014 to refund all the outstanding portion of the 2006 Series A water/wastewater revenue bonds. The original bonds were issued for the construction of a new water treatment plant and wastewater plant improvements.  Net OPEB asset for the Governmental Activities of $2,813.  Hospital - Financed Purchases $100, Leases Payable $8,303 and Refundable Advances $21,069
Governmental Business-Type
Outstanding Debt Activities Activities Totals
Advances from Successor Agency 9,916 9,916 - Revenue Bonds and Installment Sales, Net 30,737 166,885 197,622 Other Post-Employment Benefits (2,813) (2,813) - Compensated Absences 2,745 670 3,415 Financed Purchases - 100 100
Leases Payable - 8,303 8,303
Refundable Advances - 21,069 21,069
Total 40,586 197,026 237,612

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Packet Pg. 110 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 23 Additional information on the City of El Centro’s long-term debt can be found in Note 8, on pages 58- 67 of this report. Additional information on the City’s Net OPEB Asset can be found in Note 14 and RSI on pages 105-106.

Economic Factors
During fiscal years 2004 to 2007 the City of El Centro experienced unprecedented growth in both commercial and residential development. It was during this time that a regional mall with 766,333 square feet of shopping opportunities and a strip mall were built in the City. These two projects helped diversify the City’s economy and attracted residents of surrounding cities as well as from Mexicali, Mexico. Mexicali, Mexico is the capital of Baja California and has a population in excess of 1 million and a significant number of maquiladoras. A maquiladora is an assembly plant in Mexico, especially one along the border between the United States and Mexico, to which foreign materials and parts are shipped and from which the finished product is returned to the original market.

The commercial development substantially increased the retail opportunities in the City and increased sales and sales tax revenue during these years. The economy slowed down during fiscal year 2008 and severely contracted during fiscal year 2010. General Fund revenues declined from $27.1 million in 2007 to $22.9 in fiscal year 2010. The City developed various cost cutting measures which, combined with a strong fund balance, allowed the City to sail the recession without the need for layoffs or furloughs.

The economy improved subsequent to the start of the COVID-19 crisis and allowed the City’s revenues to increase. The vaccine rollout and fiscal relief provided by the American Rescue Plan Act as well as other Federal, State and local grant and program revenue have accelerated the recovery in FY 2021.

The recovery should continue into the upcoming fiscal year.

Factors which positively contribute to the local economy include the following: Continued interest in commercial development throughout the City, plans for new residential development and multi-family units with construction beginning in 2022, more diverse economy with per capita sales at 100% of national averages, the regional mall, proximity to the economy of Mexicali, Mexico and the continued inflow of consumers from that country.

The City will continue to position its finances in a manner that will allow it to meet the City’s strategic goals and objectives and to accomplish this within the parameters allowed by the economy. The City will continue to fund reserves and enforce revenue enhancement and cost containment measures.

Requests for Information
This financial report is designed to provide a general overview of the City of El Centro’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Director of Finance, 1275 W Main Street, City of El Centro, California, 92243.

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Packet Pg. 111 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 24 THIS PAGE INTENTIONALLY LEFT BLANK

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Packet Pg. 112 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO
Statement of Net Position
June 30, 2021
Governmental Business-Type
Activities Activities Total
Assets:

Cash and Investments $ 64,998,484 $ 110,288,795 $ 175,287,279 Restricted Assets:

Cash and Investments 1,850,641 30,456,118 32,306,759
Cash and Investments with Fiscal Agent 22,730,402 3,975,304 26,705,706 Receivables (net of allowances for uncollectibles)
Accounts 115 24,651,306 24,651,421
Taxes 4,321,962 4,321,962
Interest 3,654,061 34,203 3,688,264
Grants 2,118,841 2,118,841
Notes 20,983,841 403,172 21,387,013
Other 1,867,133 278,622 2,145,755
Internal Balances 85,830 (85,830)
Due from Third-Party Payors 959,883 959,883
Inventories 3,053,368 3,053,368
Net OPEB Asset 2,812,915 2,812,915
Prepaid Items 2,622,089 2,622,089
Investment in Joint Venture 262,595 262,595
Land Held for Resale 59,089 59,089
Capital Assets Not Being Depreciated 13,963,482 57,568,317 71,531,799 Capital Assets, Net of Accumulated Depreciation 87,734,423 136,787,517 224,521,940 Goodwill 3,370,409 3,370,409
Total Assets 227,181,219 374,625,868 601,807,087

Deferred Outflows of Resources:

Deferred Loss on Debt Refunding 3,297,239 3,297,239
OPEB related 280,525 280,525
Pension related 9,567,610 6,769,098 16,336,708
Total Deferred Outflows of Resources 9,848,135 10,066,337 19,914,472 Liabilities:

Accounts Payable 3,201,497 16,781,011 19,982,508
Salaries/Benefits Payable 190,646 7,885,915 8,076,561
Interest Payable 231,716 507,941 739,657
Unearned Revenue 67,701 67,701
Deposits 6,638,619 92,789 6,731,408
Non-Current Liabilities:

Net Pension Liability 46,314,819 49,725,464 96,040,283
Due Within One Year 2,646,554 22,235,448 24,882,002
Due in More Than One Year 40,751,915 174,790,590 215,542,505 Total Liabilities 99,975,766 272,086,859 372,062,625
Deferred Inflows of Resources:

OPEB related 1,101,181 1,101,181
Pension related 2,305,853 965,594 3,271,447
Total Deferred Inflows of Resources 3,407,034 965,594 4,372,628 Net Position:

Net Investment in Capital Assets 87,703,425 39,272,371 126,975,796 Restricted for:

Housing 5,255,767 5,255,767
Special Projects 845,508 845,508
Debt Service 5,569,668 13,955,202 19,524,870
Community Development 29,076,413 29,076,413
Asset Forfeiture 431,033 431,033
Public Safety 1,380,086 1,380,086
Street and Roads 8,070,146 8,070,146
Pension Plan 1,850,641 1,850,641
Landscaping 175,173 175,173
Unrestricted (6,711,306) 58,412,179 51,700,873
Total Net Position $ 133,646,554 $ 111,639,752 $ 245,286,306 The notes to the financial statements are an integral part of this statement 25 7.a
Packet Pg. 113 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Net (Expenses) Revenues and Changes in Net Position
Operating Capital BusinessCharges for Grants and Grants and Governmental Type Expenses Services Contributions Contributions Activities Activities Total Primary Government:

Governmental Activities:

General Government $ 5,676,593 $ 614,831 $ 7,048,903 $ - $ 1,987,141 $ - $ 1,987,141 Public Protection 19,531,877 242,640 728,188 22,909 (18,538,140) (18,538,140) Community Development 5,013,282 780,884 9,472,558 46,422 5,286,582 5,286,582 Public Works 6,331,378 16,680 2,740,696 6,822,065 3,248,063 3,248,063 Parks and Recreation 5,812,664 197,300 37 520,399 (5,094,928) (5,094,928) Interest on Long-Term Liabilities 1,342,134 (1,342,134) (1,342,134) Total Governmental Activities 43,707,928 1,852,335 19,990,382 7,411,795 (14,453,416) (14,453,416)

Business-Type Activities:

Water 9,745,814 10,225,238 1,130,499 1,609,923 1,609,923 Wastewater 8,750,262 11,032,844 2,282,582 2,282,582
Hospital 191,749,110 166,205,189 21,830,832 (3,713,089) (3,713,089) Solid Waste 2,067,167 2,063,322 (3,845) (3,845)
Total Business-Type Activities 212,312,353 189,526,593 21,830,832 1,130,499 175,571 175,571 Total Primary Government $ 256,020,281 $ 191,378,928 $ 41,821,214 $ 8,542,294 (14,453,416) 175,571 (14,277,845) Taxes:

Property Taxes 4,130,329 4,130,329
Sales Taxes 20,854,390 20,854,390
Transient Occupancy Taxes 2,151,327 2,151,327
Franchise Taxes 322,490 322,490
Other Taxes 532,924 532,924
Motor Vehicle in Lieu, unrestricted 4,753,060 4,753,060 Investment Earnings 568,874 6,024,869 6,593,743
Miscellaneous Revenue 128,788 128,788
Total General Revenues 33,442,182 6,024,869 39,467,051
Change in Net Position 18,988,766 6,200,440 25,189,206
Net Position - Beginning of Fiscal Year 114,657,788 105,439,312 220,097,100 Net Position - End of Fiscal Year $ 133,646,554 $ 111,639,752 $ 245,286,306 Functions
General Revenues:

Program Revenues
Statement of Activities

CITY OF EL CENTRO
For the Fiscal Year Ended June 30, 2021
The notes to the financial statements are an integral part of this statement 26 7.a
Packet Pg. 114 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Nonmajor Total
Governmental Governmental
General Funds Funds
Assets:

Cash and Investments $ 26,831,056 $ 30,582,176 $ 57,413,232 Receivables (Net of Allowances for Uncollectible):

Accounts 115 115
Taxes 4,321,737 225 4,321,962
Interest 19,417 600,224 619,641
Grants 68,902 2,049,939 2,118,841
Notes 382,600 20,601,241 20,983,841
Other 1,310,776 552,151 1,862,927
Due from Other Funds 2,509,767 2,509,767
Restricted Assets:

Cash and Investments 1,850,641 1,850,641
Cash and Investments with Fiscal Agent 141,225 22,589,177 22,730,402 Other Assets:

Land Held for Resale 59,089 59,089
Total Assets $ 37,436,236 $ 77,034,222 $ 114,470,458
Liabilities and Fund Balances:

Liabilities:

Accounts Payable $ 1,376,106 $ 1,119,820 $ 2,495,926
Salaries/Benefits Payable 188,968 65 189,033
Deposits 1,048,247 5,590,372 6,638,619
Due to Other Funds 2,423,937 2,423,937
Total Liabilities 2,613,321 9,134,194 11,747,515
Fund Balances:

Restricted 1,850,641 66,232,783 68,083,424
Committed 1,667,464 1,667,464
Assigned 88,954 88,954
Unassigned 32,883,320 (219) 32,883,101
Total Fund Balances 34,822,915 67,900,028 102,722,943
Total Liabilities and Fund Balances $ 37,436,236 $ 77,034,222 $ 114,470,458

CITY OF EL CENTRO
Balance Sheet
Governmental Funds
June 30, 2021
The notes to the financial statements are an integral part of this statement 27 7.a
Packet Pg. 115 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2021
Total fund balances - governmental funds $ 102,722,943
In governmental funds, only current assets are reported. In the statement of net position, all assets are reported, including capital assets and accumulated depreciation.

Capital assets at historical cost $ 257,888,796
Accumulated depreciation (156,190,891) 101,697,905
In governmental funds, certain accrued interest receivables on notes receivable are not available to pay for current period expenditures and, therefore, are not reported in the governmental funds. 3,024,372 In governmental funds, only current liabilities are reported. In the statement of net position, all liabilities, including long-term liabilities, are reported. Long-term liabilities relating to governmental activities consist of:

Advances from Successor Agency (including premium) $ (9,916,402) Revenue bonds (net of original issue discount) (3,498,755) Lease revenue bonds (net of original issue discount) (27,237,985) Net pension liability (45,931,269)
Other post-employment benefits 2,812,915
Compensated absences payable (2,745,327) (86,516,823)
9,504,835
(2,299,516)
280,525
(1,101,181)
Accrued interest payable from the current portion of interest due on long-term debt has not been reported in the governmental funds. (231,716)
Internal service funds are used by management to charge the costs of certain activities, such as self-insurance, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net position. 6,565,210 Total net position - governmental activities $ 133,646,554 Deferred inflow - OPEB related
Deferred outflows and inflows of resources relating to pensions and OPEB: In governmental funds, deferred outflows and inflows of resources relating to pensions are not reported because they are applicable to future periods. In the statement of net position, deferred outflows and inflows of resources relating to pensions and OPEB are reported.

Deferred inflow - pension related
Deferred outflow - pension related
Deferred outflow - OPEB related
The notes to the financial statements are an integral part of this statement 28 7.a
Packet Pg. 116 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Nonmajor Total
Governmental Governmental
General Funds Funds
Revenues
Taxes $ 27,950,120 $ 41,339 $ 27,991,459
Licenses and Permits 324,355 324,355
Intergovernmental 6,866,079 23,739,786 30,605,865
Charges for Services 933,924 541,623 1,475,547
Fines and Forfeitures 37,300 10,062 47,362
Interest 498,236 202,836 701,072
Other 1,298,040 11,941 1,309,981
Total Revenues 37,908,054 24,547,587 62,455,641
Expenditures
Current
General Government 3,538,826 3,538,826
Public Safety 16,363,141 461,349 16,824,490
Public Works 1,418,547 207,006 1,625,553
Parks and Recreation 3,582,223 37 3,582,260
Community Development 2,259,860 514,915 2,774,775
Capital Outlay 2,641,078 9,276,368 11,917,446
Debt Service
Principal 1,390,000 1,390,000
Interest and Fiscal Charges 1,454,064 1,454,064
Total Expenditures 29,803,675 13,303,739 43,107,414
Excess (Deficiency) of Revenues over
(under) Expenditures 8,104,379 11,243,848 19,348,227
Other Financing Sources (Uses):

Proceeds from debt issuance 17,781,835 17,781,835
Transfers In 1,028,500 1,362,625 2,391,125
Transfers Out (2,391,125) (2,391,125)
Total Other Financing Sources (Uses) 1,028,500 16,753,335 17,781,835 Net Changes in Fund Balances 9,132,879 27,997,183 37,130,062 Fund Balances - Beginning of Fiscal Year 25,690,036 39,902,845 65,592,881 Fund Balances - End of Fiscal Year $ 34,822,915 $ 67,900,028 $ 102,722,943

CITY OF EL CENTRO
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2021
The notes to the financial statements are an integral part of this statement 29 7.a
Packet Pg. 117 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30, 2021
Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balance-total governmental funds $ 37,130,062 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those capital assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period.

Capital outlay $ 11,282,757
Depreciation expense (10,939,372) 343,385
Certain accrued interest revenue of notes receivable reported in the statement of activities are not available to pay for current period expenditures, and therefore, are not reported as revenues in a governmental fund. This is the net change in interest receivable for the current period. 216,838 The issuance of long-term debt provides current financial resources to governmental funds, while repayment of the principal of long-term debt consumes the current financial resources of the governmental funds. Issuance of bond principal is an other financing source and repayment of bond principal is an expenditure in governmental funds, but the issuance increases long-term liabilities and the repayment reduces long-term liabilities in the statement of net position.

Current year amortization of premium for
advances from Successor Agency $ 115,989
Revenue bonds (net of original issue discount) 828,182
Lease revenue bonds (net of original issue discount) 538,384 Issuance of debt (17,781,835) (16,299,280)
Compensated absence expenditures reported in the statement of activities do not require the use of current financial resources and therefore, are not reported as expenditures in a governmental fund. This is the net change in compensated absences for the current period. (330,026)
(2,344,651)
Accrued interest is interest due on long-term debt payable. This is the net change in accrued interest for the current period. 19,375
Internal service funds are used by management to charge the costs of certain activities, such as self-insurance, to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities. 253,063 Change in net position of governmental activities $ 18,988,766 In governmental funds, pension and OPEB costs are recognized when employer contributions are made. In the statement of activities, pension and OPEB costs are recognized on the accrual basis. This is the difference between accrual-basis pension and OPEB costs and actual employer contributions.

The notes to the financial statements are an integral part of this statement 30 7.a
Packet Pg. 118 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Governmental
Activities
Nonmajor Internal
Water Wastewater Hospital Enterprise Service
Fund Fund Fund Fund Total Funds
Assets and Deferred Outflows of Resources
Current Assets:

Cash and Investments $ 25,295,490 $ 23,348,958 $ 61,506,358 $ 137,989 $ 110,288,795 $ 7,585,252 Cash and Investments with Fiscal Agent 2,354,358 1,620,946 3,975,304 Receivables (Net of Allowances for Uncollectibles):

Accounts 1,871,076 1,471,223 21,002,188 306,819 24,651,306 24,112 Notes 222,673 180,499 403,172
Other 337 8,463 269,822 278,622 4,206
Interest 13,045 20,813 345 34,203 10,048
Due from Third-Party Payors 959,883 959,883
Inventories 3,053,368 3,053,368
Prepaid Expenses 2,622,089 2,622,089
Total Current Assets 29,756,979 26,650,902 89,413,708 445,153 146,266,742 7,623,618 Noncurrent Assets:

Investment in Joint Venture 262,595 262,595
Restricted Assets:

Cash and Investments 30,456,118 30,456,118
Capital Assets:

Land 181,547 78,560 665,935 926,042
Buildings 920,335 835,015 114,019,925 115,775,275
Improvements other than Buildings 74,252,296 74,309,570 148,561,866 Machinery and Equipment 3,837,529 1,922,439 74,984,062 80,744,030 Furniture and Fixtures 33,740 28,515 62,255
Vehicles 1,042,674 1,064,843 2,107,517
Construction in Progress 3,257,134 4,890,305 48,494,836 56,642,275 Less:

Accumulated Depreciation (54,667,803) (49,170,046) (106,625,577) (210,463,426) Goodwill 3,370,409 3,370,409
Total Noncurrent Assets 28,857,452 33,959,201 165,628,303 228,444,956 Total Assets 58,614,431 60,610,103 255,042,011 445,153 374,711,698 7,623,618 Deferred Outflows of Resources:

Deferred loss on debt refunding 1,663,361 1,633,878 3,297,239 Pension related 447,545 552,853 5,768,700 6,769,098 62,775 Total Deferred Outflows of Resources 2,110,906 2,186,731 5,768,700 10,066,337 62,775 Liabilities and Deferred Inflows of Resources
Current Liabilities:

Accounts Payable 562,304 942,688 15,020,505 255,514 16,781,011 705,571 Salaries/Benefits Payable 16,689 17,388 7,851,838 7,885,915 1,613 Interest Payable 272,003 235,938 507,941
Customer Deposits 92,789 92,789
Due to Other Funds 85,830 85,830
Unearned Revenue 67,378 323 67,701 24,112
Current Portion of Compensated Absences 93,147 105,487 198,634 Current Portion of Long-term Obligations 1,351,140 1,524,792 19,160,882 22,036,814 Total Current Liabilities 2,455,450 2,826,616 42,033,225 341,344 47,656,635 731,296 Noncurrent Liabilities:

Compensated Absences 223,740 247,371 471,111
Net Pension Liability 2,734,471 3,377,893 43,613,100 49,725,464 383,550 Long-term Debt 26,598,077 21,611,233 126,110,169 174,319,479 Total Noncurrent Liabilities 29,556,288 25,236,497 169,723,269 224,516,054 383,550 Total Liabilities 32,011,738 28,063,113 211,756,494 341,344 272,172,689 1,114,846 Deferred Inflows of Resources:

Pension related 45,181 55,813 864,600 965,594 6,337
Total Deferred Inflows of Resources 45,181 55,813 864,600 965,594 6,337 Net Position
Net Investment in Capital Assets 908,235 12,444,122 25,920,014 39,272,371 Restricted For :

Debt Service 2,082,355 11,872,847 13,955,202
Unrestricted 25,677,828 22,233,786 10,396,756 103,809 58,412,179 6,565,210 Total Net Position $ 28,668,418 $ 34,677,908 $ 48,189,617 $ 103,809 $ 111,639,752 $ 6,565,210

CITY OF EL CENTRO
Business-type Activities-Enterprise Funds
June 30, 2021
Proprietary Funds
Statement of Net Position
The notes to the financial statements are an integral part of this statement 31 7.a
Packet Pg. 119 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Governmental
Activities
Nonmajor Internal
Water Wastewater Hospital Enterprise Service
Fund Fund Fund Fund Total Funds
Operating Revenues:

Charges for Services $ 9,014,941 $ 11,032,731 $ 157,536,888 $ 2,063,322 $ 179,647,882 $ 6,166,759 Other Revenues 1,210,297 113 8,668,301 9,878,711 634,443 Total Operating Revenues 10,225,238 11,032,844 166,205,189 2,063,322 189,526,593 6,801,202

Operating Expenses:

Personnel Services 2,517,413 2,597,204 74,952,679 80,067,296 642,862 Supplies and Services 2,624,794 1,937,058 102,718,006 1,861,076 109,140,934 5,929,492 General and Administrative 1,018,731 908,206 206,091 2,133,028 Depreciation 2,490,601 2,349,535 9,421,267 14,261,403
Total Operating Expenses 8,651,539 7,792,003 187,091,952 2,067,167 205,602,661 6,572,354 Operating Income (Loss) 1,573,699 3,240,841 (20,886,763) (3,845) (16,076,068) 228,848 Non-Operating Revenues (Expenses):

Interest Revenue 131,547 122,146 5,769,935 1,241 6,024,869 24,215 Interest Expense (1,094,275) (958,259) (4,657,158) (6,709,692) Grant Revenue 1,130,499 21,815,438 22,945,937
Other Non-Operating Revenue (Expense) 15,394 15,394
Total Non-Operating Revenue (Expenses) 167,771 (836,113) 22,943,609 1,241 22,276,508 24,215 Change in Net Position 1,741,470 2,404,728 2,056,846 (2,604) 6,200,440 253,063 Net Position - Beginning of Fiscal Year 26,926,948 32,273,180 46,132,771 106,413 105,439,312 6,312,147 Net Position - End of Fiscal Year $ 28,668,418 $ 34,677,908 $ 48,189,617 $ 103,809 $ 111,639,752 $ 6,565,210

CITY OF EL CENTRO
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2021
Business-type Activities - Enterprise funds
The notes to the financial statements are an integral part of this statement 32 7.a
Packet Pg. 120 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Governmental
Nonmajor Activities
Enterprise Internal Service
Water Wastewater Hospital Fund Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash Received from Patients and Third Parties on Behalf of Patients $ - $ 157,090,905 - $ $ 157,090,905 - $ $ - Cash Received from Operations, other than Patient Services 8,714,694 8,714,694 Cash Received from Users 11,010,024 10,984,331 2,064,830 24,059,185 6,826,561 Cash Payments to Suppliers and Contractors (2,561,924) (1,784,365) (76,542,566) (1,862,380) (82,751,235) (6,000,333) Cash Payments for General and Administrative Expenses (1,018,731) (908,206) (206,091) (2,133,028) Cash Payments for Employees and Benefit Programs (2,333,114) (2,380,467) (102,468,950) (107,182,531) (644,833) Net Cash Provided (Used) By Operating Activities 5,096,255 5,911,293 (13,205,917) (3,641) (2,202,010) 181,395 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Intergovernmental 1,130,499 15,586,445 16,716,944
Notes Receivable Issued (150,056) (172,252) (322,308)
Other Receivable (161) (8,463) 15,394 6,770
Net Cash Provided (Used) by Noncapital Financing Activities 980,282 (180,715) 15,601,839 16,401,406 CASH FLOWS FROM INVESTING ACTIVITIES:

Interest Received 131,547 122,146 1,526,768 1,241 1,781,702 24,215 Proceeds from Sales and Maturities of Investments 60,908,718 60,908,718 Purchases of Investments (33,018,006) (33,018,006)
Net Cash Provided (Used) by Investing Activities 131,547 122,146 29,417,480 1,241 29,672,414 24,215

CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:

Principal Payments on Debt Borrowings (1,172,327) (1,377,750) (2,796,573) (5,346,650) Interest and Fiscal Fees Paid (1,114,433) (955,427) (7,198,203) (9,268,063) Acquisition of Property, Plant, and Equipment (2,744,657) (5,735,081) (13,284,602) (21,764,340) Net Cash Provided (Used) by Capital and Related
Financing Activities (5,031,417) (8,068,258) (23,279,378) (36,379,053)

NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 1,176,667 (2,215,534) 8,534,024 (2,400) 7,492,757 205,610 CASH AND CASH EQUIVALENTS, BEGINNING OF FISCAL YEAR 26,473,181 27,185,438 6,790,383 140,389 60,589,391 7,379,642 CASH AND CASH EQUIVALENTS, END OF FISCAL YEAR $ 27,649,848 $ 24,969,904 $ 15,324,407 $ 137,989 $ 68,082,148 $ 7,585,252 Noncash Transactions:

Amortization $ (9,166) $ 11,184 $ - $ - $ 2,018 $ -
Reconciliation to Statement of Net Position:

Cash and Investments $ 25,295,490 $ 23,348,958 $ 61,506,358 $ 137,989 $ 110,288,795 $ 7,585,252 Restricted Cash and Investments with Fiscal Agents 2,354,358 1,620,946 30,456,118 34,431,422 Less investments not meeting definition of cash equivalents (76,638,069) (76,638,069) $ 27,649,848 $ 24,969,904 $ 15,324,407 $ 137,989 $ 68,082,148 $ 7,585,252

CASH FLOWS FROM OPERATING ACTIVITIES:

Operating Income (Loss) $ 1,573,699 $ 3,240,841 $ (20,886,763) $ (3,845) $ (16,076,068) $ 228,848 Adjustment to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by Operating
Activities:

Depreciation and Amortization 2,490,601 2,349,535 9,421,267 14,261,403 Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable 783,731 (48,513) (585,807) 1,508 150,919 (Increase) Decrease in Inventories, Prepaid Expenses,
Other Receivables, and Other Assets (191,882) (191,882) 25,359 (Increase) Decrease in Estimated Third Party Payor Settlements 186,217 186,217 Increase (Decrease) in Accounts Payable and Accrued Liabilities 62,870 152,693 440,938 (1,304) 655,197 (92,269) Increase (Decrease) in Salary/Benefits Payable 16,689 17,388 (560,910) (594,987) Increase (Decrease) in Deposit Payable 457 457
Increase (Decrease) in Unearned Revenue 598 598
Increase (Decrease) in Net Pension Liability 138,714 171,354 (994,900) (684,832) 19,457 Increase (Decrease) in Compensated Absences 28,896 27,995 56,891 Total Adjustments 3,522,556 2,670,452 7,680,846 204 13,874,058 (47,453) Net Cash Provided (Used) By Operating Activities $ 5,096,255 $ 5,911,293 $ (13,205,917) $ (3,641) $ (2,202,010) $ 181,395

Business-type Activities - Enterprise Funds

CITY OF EL CENTRO

PROPRIETARY FUNDS
For the Fiscal Year Ended June 30, 2021

STATEMENT OF CASH FLOWS
The notes to the financial statements are an integral part of this statement 33 7.a
Packet Pg. 121 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Private-Purpose
Trust
Funds
Assets:

Cash and Investments $ 1,736,075
Cash and Investments with Fiscal Agent 4,120,452
Interest Receivable 363
Notes Receivable 159,356
Other Receivable 1,334
Advances to City of El Centro 9,413,455
Discount for advances to City of El Centro 502,947
Capital Assets, Not Being Depreciated 7,458,729
Capital Assets, Net of Accumulated Depreciation 11,265,271 Total Assets 34,657,982
Deferred outflows of resources:

Deferred loss on refunding 508,941
Total Deferred outflows of resources 508,941
Liabilities:

Accounts Payable 24,991
Salaries/Benefits Payable 1,379
Interest Payable 207,699
Noncurrent Liabilities:

Due within One Year 1,906,924
Due in More than One Year 23,224,834
Total Liabilities 25,365,827
Net Position:

Unrestricted 9,801,096
Total Net Position $ 9,801,096

CITY OF EL CENTRO
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
The notes to the financial statements are an integral part of this statement 34 7.a
Packet Pg. 122 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Private-Purpose
Trust
Funds
Additions:

Investment Revenue $ 18,660
Intergovernmental 100,000
Property Taxes 2,379,842
Other Revenue 112,928
Total Additions 2,611,430

Deductions:

Community Development 260,008
Depreciation 485,720
Interest Expense 1,262,553
Total Deductions 2,008,281
Excess (Deficiency) of Revenues Over
(Under) Expenditures 603,149
Change in Net Position 603,149
Net Position, Beginning of Fiscal Year 9,197,947
Net Position, End of Fiscal Year $ 9,801,096

CITY OF EL CENTRO
For the Fiscal Year Ended June 30, 2021

STATEMENT OF CHANGES IN NET POSITION

FIDUCIARY FUNDS
The notes to the financial statements are an integral part of this statement 35 7.a
Packet Pg. 123 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 36 THIS PAGE INTENTIONALLY LEFT BLANK

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Packet Pg. 124 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

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Packet Pg. 125 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

37 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of El Centro was incorporated under the laws of the State of California in 1908 and is governed by an elected five-member council. As required by accounting principles generally accepted in the United States of America, these financial statements present the City and its component unit, an entity for which the City is considered to be financially accountable. The El Centro Regional Medical Center (Hospital) is an operating department of the City and is reported within the proprietary fund type.

Blended component units, although legally separate entities are, in substance, part of the City's operations, and so data from these units are combined with data of the City. There are no component units included in this report.

B. Basis of Presentation
Government-wide Financial Statements
The statement of net position and statement of activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. These statements distinguish between the governmental and business-type activities of the City and between the City and its blended component unit. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent on fees charged to external parties.

The statement of activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. When both restricted and unrestricted resources are available, unrestricted resources are used only after the restricted resources are depleted.

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Packet Pg. 126 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

38 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Fund Financial Statements
The fund financial statements provide information about the City’s funds, including fiduciary funds. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds; each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds.

Proprietary funds distinguish operating revenues, such as charges for services, and result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

The City reports one major governmental fund:
 The General Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes activities such as public protection, public works and facilities, parks and recreation, and community development.

The City reports the following major enterprise funds:
 The Hospital Fund accounts for the operations of the El Centro Regional Medical Center, which provides health care services to the community and surrounding area.  The Water Fund accounts for revenues and expenses associated with the treatment and distribution of potable water.
 The Wastewater Fund accounts for revenues and expenses associated with the collection and treatment of wastewater.

The City reports the following additional fund types:

Internal Service Funds account for operations that provide services to other departments or agencies of the City, or to other governments, on a cost-reimbursement basis, such as motor vehicle maintenance, worker’s compensation, post-employment benefits, and group health insurance.

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Packet Pg. 127 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

39 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other government units, and/or other funds. Trust funds, such as Successor Agency to the Redevelopment Agency, use the flow of economic resources measurement focus and the accrual basis of accounting.

C. Basis of Accounting and Measurement Focus
The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and along with the fiduciary fund use the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time the liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place.

Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues available if they are collected within 60 days after fiscal year-end except reimbursement grants which are consider available if they are collected within one year. Expenditures are recorded when the related fund liability is incurred, except for debt service expenditures, which are recognized when due, and certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Capital asset acquisitions are reported as expenditures in governmental funds.

Proceeds of long-term debt and capital leases are reported as other financing sources.

Property taxes, transient occupancy taxes, and interest are susceptible to accrual. Sales taxes collected and held by the state at fiscal year-end on behalf of the City are also recognized as revenue. Other receipts and taxes become measurable and available when cash is received by the City and are recognized as revenue at that time.

Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.

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Packet Pg. 128 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

40 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Equity

1. Deposits and Investments
In order to maximize the flexibility of its investment program and to aid in cash budgeting, the City pools the cash of all funds, except for monies deposited with fiscal agents in accordance with related bond indentures. The cash and investments balance in each fund represents that fund’s equity share of the City’s cash and investment pool. As the City places no restrictions on the deposit or withdrawal of a particular fund’s equity in the pool, the pool operates like a demand deposit account for the participating funds.

Interest income earned on pooled cash and investments is allocated monthly to the various funds based on month-end balances and is adjusted at fiscal year-end. Interest income on restricted cash and investments with fiscal agents is credited directly to the related fund.

In accordance with the State of California Government Code, the City adopts an investment policy annually that, among other things, authorizes types and concentrations of investments and maximum investment terms.

The City’s investments are carried at fair value. The fair value of equity and debt securities is determined based on sales prices or bid-and-asked quotations from SEC-registered securities exchanges or NASDAQ dealers. LAIF determines the fair value of its portfolio quarterly and reports a factor to the City; the City applies that factor to convert its share of LAIF from amortized cost to fair value. Changes in fair value are allocated to each participating fund.

For purposes of the statement of cash flows, the City has defined cash and cash equivalents to be change and petty cash funds, equity in the City’s cash and investment pool, and restricted nonpooled investments with initial maturities of three months or less.

Investments are stated at fair value in accordance with GASB 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Short-term investments are reported at cost, which approximates fair value. The fair values are based on quoted market prices, if available, or estimated using quoted market prices for similar securities. Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates. Interest, dividends, and realized and unrealized gains and losses, based on the specific identification method, are included in interest revenue when earned.

The City has established the PARS Post-Employment Benefits Trust as a tax-exempt trust within the meaning of Section 115 of the IRS Code to accumulate resources to “stabilize” the amount of its General fund resources that it will need to meet future contribution requirements to CalPERS.

The balances and activities of the Trust are irrevocably dedicated to funding future obligations to CalPERS. The assets will benefit the City through reduced future cash flow demands on the City’s General fund resources and continue to be assets of the City. These amounts are reflected as restricted cash and investments in the General fund.

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Packet Pg. 129 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

41 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Equity (Continued)

2. Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”. Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

Receivables, including those for the Hospital, are shown net of an allowance for uncollectible accounts. See Note 1-D-12 and Note 1-D-13 for Hospital receivables.

For each fiscal year beginning July 1, taxes are levied on taxable real (secured) and personal (unsecured) property located within the City as of the preceding January 1. Secured property taxes are payable in two installments on November 1, and February 1 of each fiscal year, and become delinquent after December 10 and April 10, respectively. Taxes on unsecured property become delinquent if not paid by August 31. A 10 percent penalty attaches to delinquent taxes, which have been levied on property on the secured roll. Such property may thereafter be redeemed by payment of the delinquent taxes and the delinquency penalty, plus a redemption penalty of 1 ½ percent per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is deeded to the State and is subject to sale by the County Tax Collector.

The only concentrated group of credit risk is Hospital receivables from government agencies.

Hospital management does not believe that there is a significant credit risk associated with these government agencies. Management continuously monitors and adjusts reserves and allowances associated with these receivables.

3. Inventories and Prepaid Items
Inventories in Proprietary funds are valued at cost using the first-in/first-out (FIFO) method. The cost of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items.

4. Restricted Assets
Restricted funds are the portion of a fund balance that reflects constraints placed on the use of resources that are either (a) externally imposed by creditors (such as through debt covenants, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. See below for descriptions of some restricted funds of the City. For additional information regarding Restricted Funds, see Note 18.

Certain assets of special revenue/capital project grant funds are classified as restricted assets because their use is restricted by grant agreements.

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Packet Pg. 130 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

42 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Equity (Continued)

4. Restricted Assets (Continued)
Certain resources of the LTA Lease Revenue Bonds Capital Projects Fund and 2011C Bonds City Capital Projects Fund are set aside for the capital projects and are classified as restricted assets because their use is restricted by applicable bond covenants.

Certain resources of the LTA Lease Revenue Bonds Debt Service Fund, Financing Authority Debt Service Fund, and the Water and Wastewater funds are set aside for the repayment of bonds and certificates of participation and are classified as restricted assets on the balance sheet/statement of net position because their use is limited by applicable bond covenants.

Certain resources of the Group Health Insurance internal service fund are classified as restricted because its use is limited by the provisions of plan documents.

Certain resources of the Hospital set aside for the repayment of bonds are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants.

Certain Hospital assets limited as to use primarily include assets held by trustees under indenture agreements and designated assets set aside by the Hospital Board of Trustees for future capital improvements over which the Board retains control and may, at its discretion, subsequently use for other purposes.

Certain restricted resources consist of funds limited as to use by donors. Restricted gifts, bequests, and grants are reported as restricted funds until expenditures are made for the donor's intended purpose.

The government-wide statement of net position reports $66,609,637 of restricted net position.

5. Capital Assets
Capital assets, including infrastructure, are recorded at historical cost or at estimated historical cost if actual historical cost is not available. Contributed capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are report at acquisition value rather than fair value. Capital assets include public domain (infrastructure) general capital assets which consist of certain improvements including roads, bridges, pavements in progress, and right of way. The City defines capital assets as assets with initial, individual costs of more than $5,000 and an estimated useful life in excess of one year. The Hospital defines capital assets as assets with initial, individual costs of more than $500 and an estimated useful life of at least three years.

Capital assets used in operations are depreciated or amortized (assets under capital leases) using the straight-line method over the lesser of the capital lease period or their estimated useful lives in the government-wide statements and proprietary funds.

Maintenance and repairs are charged to operations when incurred. Betterments and major improvements, which significantly increase values, change capacities, or extend useful lives, are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

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Packet Pg. 131 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

43 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Equity (Continued)

5. Capital Assets (Continued)
Property, plant, and equipment of the City and Hospital are recorded at cost. Property, plant, and equipment donated are recorded at their acquisition value at the date of donation.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Net interest cost during construction is capitalized when the effects of capitalization materially impact the financial statements.

Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives:

Assets Years
City Hospital
Buildings 5-70 5-40
Building Improvements 5-30 5-40
Equipment 3-20 3-15
Office Furniture 5 3-15
Vehicles 3-15 3-15
Infrastructure 20-50 Not Applicable

6. Intangible Assets
The Hospital classifies intangible assets as definite-lived or indefinite lived intangible assets.

These assets are stated at cost. Definite-lived intangibles include non-complete covenants. These assets are amortized on a straight-line basis over the lives of the related agreement over four years. The Hospital periodically reviews the appropriateness of the amortization periods related to its definite-lived assets. Indefinite-lived intangibles consist of goodwill arising from the Hospital’s purchase of an Oncology Center. In accordance with GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, indefinite lived assets are not amortized, but instead are evaluated annually for impairment. To date, the Hospital has not recorded any impairment.

7. Goodwill
Goodwill for the Hospital represents the excess of purchase price of acquired businesses over the net tangible and identifiable intangible assets acquired and liabilities assumed in connection with the acquisition of an oncology practice in fiscal year 2011. At June 30, 2021, goodwill associated with this transaction was $3,370,409. The Hospital evaluates goodwill for impairment at least annually or whenever events or changes in circumstances require an interim impairment assessment. The Hospital compares the fair value of each reporting unit to its carrying amount to determine if there is potential goodwill impairment. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill within the reporting unit is less than the carrying value of its goodwill. The Hospital performs its annual test for goodwill and intangible assets as of December 31st using a present value technique (discounted cash flow). The Hospital’s management determined that there was no impairment of goodwill as of June 30, 2021.

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Packet Pg. 132 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

44 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Equity (Continued)

8. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Vacation and sick pay is accrued when incurred in proprietary funds and reported as a fund liability. The City accrues for compensated absences in the government-wide and proprietary fund financial statements for which they are liable to make a payment directly.

Vacation, sick, and/or annual leave is dependent on the respective employee’s bargaining group agreement. Leave provided is to be utilized as sick leave, to attend medical appointments, vacation, etc. Sick leave payoff is available for accumulated sick leave hours over 288 hours.

Hospital employees are not paid for accumulated sick leave if they leave before retirement.

Compensated absences have been liquidated in the past fiscal year in the general fund and enterprise funds.

9. Deferred outflows/inflows of resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has deferred outflows from deferred gain/loss on debt refundings, net pension liability and net OPEB asset.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City recognizes deferred inflow and outflows of resources pursuant to GASB Statements 68, 71, and 75 regarding Pension and Other Post-Employment Benefits. The City also recognizes unavailable revenue, which is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from sources such as: property taxes, grant revenue, and long-term loan receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

10. Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt, and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position.

Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method or the straight-line method. Bonds payable are reported net of the applicable bond discount in the Hospital Fund.

In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

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Packet Pg. 133 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

45 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Equity (Continued)

11. Net Position and Fund Equity
GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. In the Government-wide financial statements, proprietary fund financial statements, and fiduciary financial statements, net position is classified as either net investment in capital assets, restricted, or unrestricted. See note 17 for additional information regarding governmental net position.

In the fund financial statements with the implementation of GASB Statement No. 54, governmental funds report fund balance is either non-spendable fund balance, restricted fund balance, committed fund balance, assigned fund balance, or unassigned fund balance. See Note 18 for additional information regarding the governmental fund balances.

12. Net Patient Service Revenue
Hospital net patient service revenue is reported at estimated net realizable amounts from patients, governmental programs, health maintenance, and preferred provider organizations and insurance contracts under applicable laws, regulations, and program instructions. In some cases, reimbursement is based on formulas, which cannot be determined until after cost reports are filed and audited or otherwise settled by the various programs. Estimation differences between final settlements and amounts accrued in previous years are reflected in net patient service revenue.

13. Allowance for Contractual Adjustments and Doubtful Accounts (Hospital) Hospital’s patient accounts receivable are reduced by allowances for contractual adjustments and doubtful accounts. In evaluating the collectability of patient accounts receivable, the Hospital management analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowances for both contractual adjustments and doubtful accounts. Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of these allowances. For receivables associated with services provided to patients who have third‐party coverage, the Hospital management analyzes contractually due amounts and provides an allowance for doubtful accounts, if necessary. For receivables associated with self‐pay patients (which includes both patients without insurance and patients with deductible and copayment balances due for which third‐party coverage exists for part of the bill), the Hospital records a provision for bad debts in the period of service on the basis of its past experience, which indicates that many patients are unable or unwilling to pay the portion of their bill for which they are financially responsible. The difference between the standard rates (or the discounted rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts.

14. Land held for resale or exchange
Cost of project land and improvements held for resale or exchange are recorded in the Successor Agency Special Revenue Fund as inventory at the lower of acquisition cost or net realizable value. The fund balance is restricted in an amount equal to the carrying value of land held for resale or exchange.

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Packet Pg. 134 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

46 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Equity (Continued)
E. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

F. Future Accounting Pronouncements
Statement No. 87 "Leases" The provisions of this statement are effective for fiscal years beginning
after June 15, 2021.

Statement No. 89 "Accounting for Interest Cost The provisions of this statement are incurred before the End of a effective for fiscal years beginning Construction Period" after December 15, 2020.

Statement No. 91 "Conduit Debt Obligations" The provisions of this statement are effective for fiscal years beginning
after December 15, 2021.

Statement No. 92 "Omnibus 2020" The provisions of this statement are effective for fiscal years beginning
after June 15, 2021.

Statement No. 93 "Replacement of Interbank Offered The provisions of this statement are Rates" effective for fiscal years beginning
after December 31, 2021.

Statement No. 94 "Public-Private and Public-Public The provisions of this statement are Partnerships and Availability effective for fiscal years beginning Payment Arrangements" after June 15, 2022.

Statement No. 96 "Subscription-Based Information The provisions of this statement are Technology Arrangements" effective for fiscal years beginning after June 15, 2022.

Statement No. 97 "Certain Component Unit Criteria, The provisions of this statement are and Accounting and Financial Reporting effective for fiscal years beginning for Internal Revenue Code Section 457 after June 15, 2021.

Deferred Compensation Plans"

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Packet Pg. 135 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

47 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds. Budgets are adopted annually, and all annual appropriations lapse at the fiscal year end.

The City utilizes the following procedures when establishing the budgetary data reflected in the financial statements:

Prior to June 30 of each fiscal year, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.

Public hearings are conducted at City Hall to obtain citizen input. Prior to July 1, the budget is adopted by motion of the City Council.

The City Manager is authorized to transfer budgeted amounts between departments within any fund. However, any revision that increases the total appropriations of any fund must be approved by the City Council. The appropriated budget is prepared by fund, function, and department.

Formal budgetary integration is employed as a management control device during the year for all funds.

See Note to Required Supplementary Information for more details.

B. Budget/GAAP Reconciliation
No funds adopted project-length or budgetary basis budgets and, therefore, no schedule reconciling the amounts on the Statement of Revenues, Expenditures, and Changes in Fund Balance-Budget to Actual to the amounts on the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances has been prepared.

C. Excess of Expenditures over Appropriations
For the fiscal year ended June 30, 2021, expenditures exceeded appropriations in the following funds:

Final
Fund Appropriation Expenditures Excess
Nonmajor Funds:

COVID-19 Special Revenue Fund $ 40,000 $ 3,473,612 $ 3,433,612 Asset Forfeiture Special Revenue Fund 25,000 89,226 64,226 Home Grants Special Revenue Fund 35,500 35,500
HUD Entitlement Special Revenue Fund 566,707 634,322 67,615 CALHOME Program Special Revenue Fund 51,250 75,134 23,884 LTA Lease Revenue Bonds Capital Projects Fund 7,600 398,477 390,877

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Packet Pg. 136 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

48 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued) D. Deficit Fund Equity
At June 30, 2021, the following fund had an accumulated deficit:

This fund balance deficit is primarily due to the City incurring costs in excess of revenues. The City will alleviate is deficit as revenue is received.

NOTE 3 – CASH AND INVESTMENTS
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:

Cash and investments as of June 30, 2020 consist of the following:

Fund Amount
Nonmajor Special Revenue Funds:

Integrated Waste Management Fund $ 219
Statement of net position:

Cash and investments $ 175,287,279
Restricted Cash and investments 32,306,759
Restricted Cash and investments with fiscal agents 26,705,706 Fiduciary funds:

Cash and investments 1,736,075
Cash and investments with fiscal agents 4,120,452
Total cash and investments $ 240,156,271
Cash on hand $ 7,395
Deposits with financial institutions 47,134,529
Investments 193,014,347
Total cash and investments $ 240,156,271

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Packet Pg. 137 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

49 NOTE 3 – CASH AND INVESTMENTS (Continued)
A. Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City of El Centro (City) by the California Government Code (or the City’s investment policy, where more restrictive).

The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by 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.

The investment policy allows for the above investments, which have equal safety and liquidity as all other allowed investments. Maturity depends on the cash needs of the City.

The Hospital does not conform with this investment policy. Please contact the management of the Hospital for more information.

B. Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the Investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Local Agency Bonds 10 years None None
U.S. Treasury Obligations 10 years None None
U.S. Government Agency Issues 10 years None None
Bankers Acceptances 180 days 40% None
Commercial Paper 270 days 25% None
Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year None None
Medium-Term Notes 5 years 30% None
Mutual Funds N/A None None
Money Market Mutual Funds N/A None None
Time Deposits 5 years None None
Cal-Trust JPA N/A None None
Local Agency Investment Fund (LAIF) N/A None $75 million

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Packet Pg. 138 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

50 NOTE 3 – CASH AND INVESTMENTS (Continued)
B. Investments Authorized by Debt Agreements (Continued) C. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Local Agency Bonds N/A None None
U.S. Treasury Obligations N/A None None
State Obligations N/A None None
U.S. Government Agency Issues N/A None None
Money Market Deposits N/A None None
Bankers Acceptances N/A None None
Commercial Paper 270 days None None
Certificates of Deposit N/A None None
Repurchase Agreements N/A None None
Investment Agreements N/A None None
Local Agency Investment Fund (LAIF) N/A None None
Remaining maturity (in Months)
12 Months 13 to 24 25-60 More Than 60
Investment Type Totals or Less Months Months Months
State Investment Pool (LAIF) 65,000,000 $ $ 65,000,000 $ - $ - $ - Equities ETF 26,829,909 20,775,146 3,005,280 3,049,483 U.S. Treasury Notes 364,928 8,498,351 8,133,423 Federal Agency Securities 14,250,000 3,750,000 10,500,000 Money Market Funds 33,502,303 33,378,322 123,981
Medium Term Notes 1,220,086 602,728 617,358
Certificates of Deposit 2,942,599 981,692 1,714,880 246,027 Guaranteed Investment Contracts 8,094,300 8,094,300 PARS Trust:

Money Market Funds 1,850,641 1,850,641
Held by Bond Trustees:

Money Market Deposits 26,166,658 26,166,658
Local Agency Bonds 3,550,000 860,000 675,000 2,015,000
Repurchase Agreements 1,109,500 1,109,500
Totals $ 193,014,347 $ 157,709,487 $ 10,127,446 $ 13,870,527 $ 11,306,887

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Packet Pg. 139 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

51 NOTE 3 – CASH AND INVESTMENTS (Continued)
D. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City has no investments (including investments held by bond trustees) that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).

E. Disclosures Relating to 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 on the previous page is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type. * Covered by FDIC Insurance up to $250,000 per institution.

F. Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer. 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:

Rating as of Fiscal Year End
Minimum Exempt
Legal From Not
Investment Type Amount Rating Disclosure AAA AA A Rated State Investment Pool (LAIF) 65,000,000 $ N/A $ - $ - $ - $ 65,000,000 - $ Equities ETF 26,829,909 N/A 26,829,909
U.S. Treasury Notes 8,498,351 N/A 8,498,351 Federal Agency Securities 14,250,000 N/A 14,250,000 Money Market Funds 33,502,303 N/A 33,502,303
Medium Term Notes 1,220,086 A 1,220,086
Certificates of Deposit * 2,942,599 N/A 2,942,599
Guaranteed Investment Contracts 8,094,300 N/A 8,094,300 PARS Trust:

Money Market Funds 1,850,641 N/A 1,850,641
Held by Bond Trustee:

Money Market Deposits 26,166,658 Aam 26,166,658 Local Agency Bonds 3,550,000 N/A 3,550,000 Repurchase Agreements 1,109,500 N/A 1,109,500
Total $ 193,014,347 $ 8,498,351 $ 40,416,658 $ 1,220,086 - $ $ 142,879,252 Investment Reported
Issuer Type Amount
City of El Centro RDA Tax Allocation Bonds 3,550,000 $

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Packet Pg. 140 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

52 NOTE 3 – CASH AND INVESTMENTS (Continued)
G. 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 the failure of the counterparty (e.g. brokerdealer) 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 party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the government unit). The fair 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 City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2021, $5,747,514 of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in collateralized accounts. As of June 30, 2021, City investments in the following investment types were held by the same broker-dealer (counterparty) that was used by the City to buy the securities:

G. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. 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). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Reported
Investment Type Amount
Equities ETF $ 26,829,909
U.S. Treasury Notes 8,498,351
Federal Agency Securities 14,250,000
Medium Term Notes 1,220,086
Certificates of Deposit 2,942,599
Money Market Funds 61,519,602
Repurchase Agreements 1,109,500
Guaranteed Investment Contracts 8,094,300

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Packet Pg. 141 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

53 NOTE 3 – CASH AND INVESTMENTS (Continued)
H. Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. These principles recognize a three tiered fair value hierarchy as follows: Level 1 – Investments reflect prices quoted in active markets; Level 2 – Investments reflect prices that are based on similar observable asset either directly or indirectly, which may include inputs in markets that are not considered active; and Level 3 – Investments reflect prices based upon unobservable sources.

NOTE 4 – RECEIVABLES
A. Receivables
Accounts, taxes, interest, grants, and other receivable balances of the General, Special Revenue, Capital Projects, Debt Service, Proprietary, and Fiduciary Funds are stated net of allowances for uncollectible accounts. The following is a schedule of receivables at June 30, 2021:

Total Assets at Exempt from
Investment Type Fair Value Level 1 Level 2 Level 3 Disclosure State Investment Pool (LAIF) 65,000,000 $ $ - $ - $ 65,000,000 - $ Equities ETF 26,829,909 26,829,909 U.S. Treasury Notes 8,498,351 5,018,234 3,480,117 Federal Agency Securities 14,250,000 14,250,000 Money Market Funds 33,502,303 33,502,303
Medium Term Notes 1,220,086 1,220,086
Certificates of Deposit 2,942,599 2,942,599
Guaranteed Investment Contracts 8,094,300 8,094,300
PARS Trust:

Money Market Funds 1,850,641 1,850,641
Held by Bond Trustees:

Money Market Deposits 26,166,658 26,166,658
Local Agency Bonds 3,550,000 3,550,000
Repurchase Agreements 1,109,500 1,109,500
Totals $ 193,014,347 $ 108,727,245 $ 16,344,503 $ 67,942,599 - $ Receivable Allowance Net
Governmental Activities
Accounts $ 115 $ - $ 115
Taxes 4,321,962 4,321,962
Interest 3,654,061 3,654,061
Grants 2,118,841 2,118,841
Others 1,867,133 1,867,133
Total Governmental Activities 11,962,112 $ $ 11,962,112 - $

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Packet Pg. 142 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

54 NOTE 4 – RECEIVABLES (Continued)
A. Receivables (Continued)
The following is a schedule of receivables at June 30, 2021 (Continued) B. Notes Receivable
The City administers a residential rehabilitation program, a commercial micro-enterprise program, and a First Time Home Buyer Program. A committee approves the loans, and the funds are disbursed to the contractor awarded the bid upon review of the building inspector, the administrating City, the homeowner and the City. The programs are designed to encourage construction or improvement in low-to-moderate income housing or other projects. Under these programs, loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City’s terms. As of February 1, 2012, notes receivable reported under the former redevelopment agency low and moderate income housing fund were transferred to the City successor agency housing fund. The balance of the City’s loans receivable arising from these programs at June 30, 2021 is $20,601,241. The remainder of the City’s loas is composed of a loan issue by the General Fund totaling $382,600.

The Water and Wastewater Fund notes receivable consists of amounts due from homeowners for the installation of water and sewer lines and from new developers for the capacity fees. The balance of the notes receivable at June 30, 2021 for the Water Fund is $222,673 and $180,499 for the Wastewater Fund.

NOTE 5 – INTERFUND TRANSACTIONS
A. Interfund Receivables and Payables
During the course of normal operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as “due to and from other funds”. The following presents a summary of current interfund balances at June 30, 2021:

Receivable Allowance Net
Business-type Activities
Accounts $ 27,820,253 $ 3,168,947 $ 24,651,306
Interest 34,203 34,203
Others 278,622 278,622
Total Business-type Activities 28,133,078 $ $ 3,168,947 $ 24,964,131 Fiduciary Funds
Interest $ 363 $ - $ 363
Others 1,334 1,334
Total Fiduciary Funds $ 1,697 $ - $ 1,697
Amount Payable Fund Amount
Major Fund: Nonmajor Funds:

General $ 2,509,767 Recreation Projects $ 206,767
Total $ 2,509,767 CDBG COVID-19 11,924
Special Events 250
Home Grants 565,104
Development Impact Fees 78,453
Police Grants 21,076
FHWA 897,493
Prop 1B 642,870
Nonmajor Proprietary Fund:

Solid Waste 85,830
Totals $ 2,509,767
Receivable Fund

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Packet Pg. 143 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

55 NOTE 5 – INTERFUND TRANSACTIONS (CONTINUED)
B. Long-term Interfund Advances
Advances from Successor Agency
The former Redevelopment Agency of the City of El Centro (former RDA) issued the Tax Allocation Bonds Series 2011C totaling $11,095,000 which were acquired by the El Centro Financing Authority prior to the dissolution of the former RDA on February 1, 2012. The Financing Authority acquired the bonds at an approximate 85% discount of the par value totaling $9,413,455. However, instead of providing the bond proceeds to the former Redevelopment Agency immediately, the City set up an advance payable in the amount of the proceeds ($9,413,455) and premium of $1,681,545 due to the former RDA. As the former RDA incurs projects costs, the City will make the payments to all vendors on behalf of the former RDA and reduce the advance payable to the former RDA by that amount. The premium on advances will be amortized over approximately 14.5 years. As of June 30, 2021, the outstanding balance for the premium on advances was $502,947. The advances from the Successor Agency have been reclassified as long-term debt. See Note 21 for additional information in regards to the advances.

C. Transfers between Funds
Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various City operations, re-allocations of special revenues, debt service transfers to pay principal and interest payments on bonds, and other post employment benefits. All interfund transfers between individual government funds have been eliminated on the government-wide statements.

The following schedule briefly summarizes the City’s transfer activity for the fiscal year ended June 30, 2021:

Fund Transfers-in Transfers-out
Major Fund:

General $ 1,028,500 $ - Nonmajor Governmental Funds:

Gas Tax 992,950
Local Transportation Authority 1,385,625
Town Center Lighting and Landscape 5,550
Legacy Ranch Light and Landscaping 3,500
Buena Vista Landscaping 3,500
LTA Lease Revenue Bonds Debt Service 1,362,625
Totals $ 2,391,125 $ 2,391,125

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Packet Pg. 144 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

56 NOTE 6 – CAPITAL ASSETS
Capital Asset activity for the fiscal year ended June 30, 2021 was as follows:

Balance at Balance at
July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital assets, not being depreciated:

Land $ 2,346,222 $ - $ - $ 2,346,222 - $
Construction in progress 35,116,057 7,458,757 (30,957,554) 11,617,260 Total capital assets, not being depreciated 37,462,279 7,458,757 (30,957,554) 13,963,482 Capital assets, being depreciated:

Infrastructure 79,530,204 79,530,204
Structures and improvements 105,338,801 3,386,593 30,957,554 139,682,948 Vehicles 8,904,425 (217,128) 8,687,297
Furniture, equipment, and books 15,827,571 (240,113) 437,407 16,024,865 Total capital assets being depreciated 209,601,001 3,824,000 (457,241) 30,957,554 243,925,314 Less accumulated depreciation for:

Infrastructure (61,443,495) (1,658,324) (63,101,819)
Structures and improvements (63,541,403) (8,223,872) (71,765,275) Vehicles (7,387,517) (381,638) 217,128 (7,552,027)
Furniture, equipment, and books (13,336,345) (675,538) 240,113 (13,771,770) Total accumulated depreciation (145,708,760) (10,939,372) (156,190,891) 457,241 Total capital assets, being depreciated net 63,892,241 (7,115,372) 30,957,554 87,734,423 Governmental activities capital assets, net $ 101,354,520 $ 343,385 $ - $ 101,697,905 - $ Governmental activities:

Balance at Balance at
Business-type activities (including Hospital Fund): July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital assets, not being depreciated:

Land and land improvements $ 926,042 $ - $ - $ - $ 926,042 Construction in progress 51,859,860 22,543,057 (17,760,642) 56,642,275 Total capital assets, not being depreciated 52,785,902 22,543,057 (17,760,642) 57,568,317 Capital assets, being depreciated:

Structures and improvements 251,704,141 246,599 12,386,401 264,337,141 Vehicles 2,014,238 241,905 (148,626) 2,107,517
Equipment 76,104,316 1,940,513 2,761,456 80,806,285
Total capital assets, being depreciated 329,822,695 2,429,017 (148,626) 15,147,857 347,250,943 Less accumulated depreciation for:

Structures and improvements (149,626,609) (10,808,969) (160,435,578) Vehicles (1,595,338) (93,375) 148,626 (1,540,087)
Equipment (47,877,505) (3,359,059) 136,018 2,612,785 (48,487,761) Total accumulated depreciation (199,099,452) (14,261,403) 284,644 2,612,785 (210,463,426) Total capital assets, being depreciated net 130,723,243 (11,832,386) 136,018 17,760,642 136,787,517 Business-type activities capital assets, net $ 183,509,145 $ 10,710,671 $ 136,018 $ 194,355,834 - $

7.a
Packet Pg. 145 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

57 NOTE 6 – CAPITAL ASSETS (Continued)
Depreciation
Depreciation expense was charged to governmental functions as follows:

Depreciation expense was charged to business-type functions as follows:

NOTE 7 – COMMITMENTS
A. Operating Leases
In June 2017, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 87, Leases. The statement enhances the relevance and consistency of reporting for the Hospital Enterprise Fund’s leasing activities by establishing requirements for lease accounting based on the principle that leases are financings of underlying right-to-use assets. A lessee is required to recognize a lease liability and intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and deferred inflow of resources. The Hospital Enterprise Fund adopted this guidance retroactively for the fiscal year ended June 30, 2020.

B. Construction Commitments
At June 30, 2021, the Medical Center has projects in progress to construct and improve various routine, ancillary, and support services. Projects in progress include major repair and expansion projects on the Medical Center's premises. Total expenditures for the fiscal years ended June 30, 2021 and 2020, related to construction in progress were $14,79,875 and $14,086,427, respectively. At June 30, 2021, the remaining commitments of the Medical Center for future payments on these projects are estimated at approximately $25,058,976.

At June 30, 2021, the city has no significant encumbrances with relation to any commitments other than noted above.

General Government $ 1,823,229
Public Safety 1,823,229
Public Works 3,646,458
Community Development 1,823,228
Parks and Recreation 1,823,228
Total depreciation expense - governmental activities $ 10,939,372 Water $ 2,490,601
Wastewater 2,349,535
Hospital 9,421,267
Total depreciation expense - business-type activities 14,261,403 $

7.a
Packet Pg. 146 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

58 NOTE 8 – LONG-TERM LIABILITIES
The following is a schedule of long-term liabilities for Governmental Activities and Businesstype Activities for the fiscal year ended June 30, 2021:
*Balance is presented as "Net OPEB Asset" in the Statement of Net Position Balance at Balance at Due Within
July 1, 2020 Additions Reductions June 30, 2021 One Year Governmental Activities:

Compensated absences $ 2,415,301 $ 1,212,149 $ (882,123) $ 2,745,327 $ 928,931 Advances from Successor Agency (see note 5) 9,413,455 9,413,455 Unamortized premiums (see note 5) 618,936 (115,989) 502,947 115,989 Net Other post-employment benefits (see note 14) (2,540,203) (272,712) * (2,812,915) Lease revenue bonds 10,125,000 16,700,000 (550,000) 26,275,000 725,000 Unamortized discount (130,466) 11,616 (118,850) (11,616) Unamortized premium 1,081,835 1,081,835 40,068
Revenue bonds 4,390,000 (840,000) 3,550,000 860,000
Unamortized discount (63,063) 11,818 (51,245) (11,818)
Total $ 24,228,960 $ 18,993,984 $ (2,637,390) $ 40,585,554 $ 2,646,554 Balance at Balance at Due Within
July 1, 2020 Additions Reductions June 30, 2021 One Year Business-type Activities:

Water Fund:

Compensated absences $ 287,991 $ 122,043 $ (93,147) $ 316,887 $ 93,147 Revenue bonds 27,130,000 (1,075,000) 26,055,000 1,125,000 Unamortized premium 1,919,863 (125,893) 1,793,970 125,893 Installment sale 197,574 (97,327) 100,247 100,247
Sewer Fund: Compensated absences 324,863 133,482 (105,487) 352,858 105,487 Revenue bonds 17,695,000 (610,000) 17,085,000 635,000
Unamortized premium 1,577,983 (103,474) 1,474,509 103,474 Revenue refunding bonds (2012A) 4,575,000 (510,000) 4,065,000 525,000 Unamortized discount (31,577) 4,164 (27,413) (4,164)
Installment sale 796,679 (257,750) 538,929 265,482
Hospital Fund: Financed purchases 126,968 (26,967) 100,001 30,285 Leases payable 10,175,733 896,945 (2,769,606) 8,303,072 2,656,702 Refundable advances 22,948,343 (1,879,730) 21,068,613 15,298,895 Hospital revenue bonds 125,000,000 125,000,000 1,175,000 Unamortized discount (9,450,426) 249,791 (9,200,635)
Total $ 203,273,994 $ 1,152,470 $ (7,400,426) $ 197,026,038 $ 22,235,448

7.a
Packet Pg. 147 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

59 NOTE 8 – LONG-TERM LIABILITIES (Continued)
A. Governmental Activities – Lease Revenue Bonds Payable Lease Revenue Bonds. On December 16, 2009, the City issued its $4,615,000 Lease Revenue Bonds 2009 Series A and $10,125,000 Lease Revenue Bonds 2009 Series B. The bond funds are to be used for the acquisition, construction, and installation of certain transportation-related improvements within the City. The Series A bonds has been paid of as of June 30, 2021. The Series B bonds have a stated interest rate of 8.250% and mature in the fiscal year ending 2032. The original issue discount on these bonds is being amortized over the life of the bonds and is included with long-term debt on the balance sheet. The principal balance outstanding at June 30, 2021 is $ 9,456,150, which is net of the $118,850 of unamortized original bond discount. In the event of a default, the full outstanding balance of the Bonds immediately becomes due and payable.

On June 1, 2021, the City issued its $16,700,000 Lease Revenue Bonds 2021 Series A. The bond funds are to be used for the finance the acquisition, construction and improvement of a new library facility in the City of El Centro (the “Library Project”). The Series A bonds have a stated interest rate of 4% and are payable over a period of twenty-seven years maturing in fiscal year ending 2047. The original issue premium on these bonds is being amortized over the life of the bonds and is included with long-term debt on the balance sheet. The principal balance outstanding at June 30, 2021 is $ 17,781,835, which is including of the $ 1,081,835 of unamortized original bond premium. In the event of a default, the full outstanding balance of the bonds immediately becomes due and payable.

B. Governmental Activities – Revenue Bonds Payable
On May 3, 2011, the El Centro Financing Authority issued the Revenue Bonds Series 2011. The Bonds are being issued to (i) finance the acquisition of the Redevelopment Agency of the City of the City of El Centro, El Centro Redevelopment Project, Tax Allocation Bonds Series 2011C, (ii) fund the Reserve Fund, and (iii) pay costs of issuing the Bonds and the Local Obligations. The Bonds have a stated interest rate from 6.000% to 6.625% and have a maturity date of November 1, 2025. The original issue discount on these bonds is being amortized over the life of the bonds and is included with long-term debt on the balance sheet. The principal balance outstanding at June 30, 2021 is $ 3,498,755, which is net of the $51,245 of unamortized original bond discount. See Note 22 for additional information in regards to the Bonds. In the event of a default, the full outstanding balance of the bonds immediately becomes due and payable.

C. Governmental Activities - Long-Term Debt Amortization The annual requirements to amortize long-term debt outstanding at June 30, 2021 (other than compensated absences, advances from successor agency, and other post-employment benefits) are as follows:

Fiscal Year 2009 Series B Lease Revenue Bonds
Ended June 30, Principal Interest Total
2022 $ 605,000 $ 764,982 $ 1,369,982
2023 650,000 713,213 1,363,213
2024 695,000 657,731 1,352,731
2025 745,000 598,331 1,343,331
2026 800,000 534,600 1,334,600
2027-2031 4,895,000 1,550,793 6,445,793
2032 1,185,000 48,881 1,233,881
9,575,000 4,868,531 14,443,531
Less bond discount (118,850) (118,850)
$ 9,456,150 $ 4,868,531 $ 14,324,681

7.a
Packet Pg. 148 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

60 NOTE 8 – LONG-TERM LIABILITIES (Continued)
C. Governmental Activities - Long-Term Debt Amortization (Continued) Fiscal Year 2021 Series A Lease Revenue Bonds
Ended June 30, Principal Interest Total
2022 $ 120,000 $ 414,729 $ 534,729
2023 400,000 501,469 901,469
2024 415,000 485,169 900,169
2025 430,000 468,269 898,269
2026 445,000 450,769 895,769
2027-2031 2,525,000 1,964,844 4,489,844
2032-2036 3,055,000 1,420,644 4,475,644
2037-2041 3,555,000 931,938 4,486,938
2042-2046 4,005,000 473,334 4,478,334
2047-2048 1,750,000 44,000 1,794,000
16,700,000 7,155,165 23,855,165
Plus bond premium 1,081,835 1,081,835
$ 17,781,835 $ 7,155,165 $ 24,937,000
Fiscal Year Series 2011 Revenue Bonds
Ended June 30, Principal Interest Total
2022 $ 860,000 $ 204,012 $ 1,064,012
2023 675,000 155,853 830,853
2024 675,000 111,135 786,135
2025 670,000 66,582 736,582
2026 670,000 22,194 692,194
3,550,000 559,776 4,109,776
Less bond discount (51,245) (51,245)
$ 3,498,755 $ 559,776 $ 4,058,531
Fiscal Year Total Governmental Activities
Ended June 30, Principal Interest Total
2022 $ 1,585,000 $ 1,383,723 $ 2,968,723
2023 1,725,000 1,370,535 3,095,535
2024 1,785,000 1,254,035 3,039,035
2025 1,845,000 1,133,182 2,978,182
2026 1,915,000 1,007,563 2,922,563
2027-2031 7,420,000 3,515,637 10,935,637
2032-2036 4,240,000 1,469,525 5,709,525
2037-2041 3,555,000 931,938 4,486,938
2042-2046 4,005,000 473,334 4,478,334
2047-2048 1,750,000 44,000 1,794,000
29,825,000 12,583,472 42,408,472
Less bond discount (170,095) (170,095) Plus bond premium 1,081,835 1,081,835 $ 30,736,740 $ 12,583,472 $ 43,320,212

7.a
Packet Pg. 149 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

61 NOTE 8 – LONG-TERM LIABILITIES (Continued)
D. Business -type Activities – Revenue Bonds
2012 Wastewater Revenue Refunding Bonds Series A. On February 16, 2012 the City issued its $7,835,000 Wastewater Revenue Refunding Bonds (par value).

The proceeds of the sale of the Wastewater Refunding Bonds were used to refund all of the outstanding portion of the 1997 Series A Water and Wastewater Revenue Bonds, fund a reserve account for the bonds, and pay costs of issuance.

The City advance refunded the 1997 Series A Water and Wastewater Revenue Bonds to reduce its total debt service over the next sixteen years by $964,302 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $719,153.

The City has covenanted and agreed to fix, prescribe, and collect rates, fees and charges for the Water Service and the Wastewater Service so that net revenues are at least 1.15 times the installment purchase payments of the 2012 bonds and all parity of obligations due and payable in the fiscal year following the date of such calculation.

The bonds have a stated interest from 2.00% to 3.625% and are payable over a period of 16 years maturing in 2028. Total pledged revenues for the Wastewater Fund were $11,032,731 while principal and interest payments for the fiscal year totaled $510,000 and $158,030 respectively.

The principal balance outstanding at June 30, 2021 is $4,037,587, which is net of the $27,413 of unamortized original bond discount. In the event of a default, the full outstanding balance of the bonds immediately becomes due and payable.
2014 Series A Water and Wastewater Revenue Bonds. On June 21, 2014, the City issued its $31,980,000 (par value) Water Revenue Bonds, 2014 Series A and $20,450,000 (par value) Wastewater Revenue Bonds, 2014 Series A.

The proceeds of the sale of the Water and Wastewater Revenue Bonds were used to refund all of the outstanding portion of the 2006 Series A Water and Wastewater Revenue Bonds, fund a reserve account for the bonds, and pay costs of issuance.

The City has covenanted and agreed to fix, prescribe, and collect rates and charges for the Water Service and the Wastewater Service so that net revenues are at least 1.15 times the installment purchase payments of the 2014 bonds and all parity of obligations due and payable in the Certificate Year following the date of such calculation.

The bonds have a stated interest from 2.00% to 5.00% and are payable over a period of 20 years maturing in 2036. Total pledged revenues for the Water and Wastewater Funds were $9,014,941 and $11,032,731 respectively while principal and interest payments for the fiscal year totaled $1,685,000 and $1,927,981 respectively. The principal balance outstanding at June 30, 2021 is $46,408,479, which includes $3,268,479 of unamortized original bond premium. In the event of a default, the full outstanding balance of the bonds immediately becomes due and payable.

7.a
Packet Pg. 150 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

62 NOTE 8 – LONG-TERM LIABILITIES (Continued)
F. Business-type Activities – Installment Sale Payable
2003 Enterprise Fund Installment Sale. On December 17, 2002, the City entered into an agreement with the California Infrastructure and Economic Development Bank to sell water and wastewater bonds, the bonds were issued on March 18, 2004.

The proceeds from the issuance of these bonds, $5,880,100, were used to fund the Alder water/sewer project.

The City has covenanted and agreed to fix, prescribe, and collect rates, fees and charges for the Water Service and the Wastewater Service so that net revenues are at least 1.10 times the installment purchase payments of the 2003 bonds and all debt service obligations due and payable in the fiscal year.

The bonds have a stated interest rate of 3.00% and are payable over a period of twenty years maturing in 2023. The 2003 Enterprise bonds maturing on or after October 1, 2014, are subject to redemption prior to maturity. The principal balance outstanding at June 30, 2021 is $639,176. In the event of a default, the full outstanding balance of the bonds immediately becomes due and payable.

G. Business-type Activities – Hospital Long Term Debt
El Centro Financing Authority Insured Hospital Revenue Refunding Bonds, Series 2018.

On April 4, 2018, the Hospital issued the El Centro Financing Authority Hospital Revenue Refunding Bonds, Series 2018, in the principal amount of $125,000,000 and an original discount of $9,991,639. Proceeds of the bonds were used to pay in full the Series 2015 A and B Bonds, fund a bond reserve account, fund capitalized interested on the Series 2018 bonds, and pay issuance costs of the Series 2018 bonds. Proceeds will also be used to finance capital improvements to the Medical Center. Principal payments are due annually on July 1, beginning in 2022 and through 2058, in amounts ranging from $1,175,000 to $7,650,000. Interest payments are due semiannually on July 1 and January 1, beginning in 2018 and through 2058, at 4.50% to

5.75%. The current refunding resulted in an economic loss of $7,437,518 and an increase in cash flows to service debt related to the refunding of $82,676,039.

The Hospital has pledged future revenues to secure payment of the principal of, redemption price of, and interest on the Series 2018 bonds in accordance with their agreed-on terms and provisions.

Revenues are defined in the agreement as all revenues, income, receipts, and money received in any period by the Hospital (other than casualty insurance, donor-restricted gifts, grants, bequests, donations, contributions, and tax revenues, if any). Principal and interest amounts deposited for debt service on the bonds are expected to require approximately 5% of revenues annually. There were no principal or interest deposits required during the fiscal year ended June 30, 2021, and total revenues as defined in the agreement were $171,990,518. In the event of a default, the full outstanding balance of the bonds immediately becomes due and payable.

Financed Purchases Payable. The Medical Center has entered into two financed purchase agreements for equipment. The agreements mature in August 2023 and March 2025, and have interest rates of 3.50% and 3.00%.

7.a
Packet Pg. 151 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

63 NOTE 8 – LONG-TERM LIABILITIES (Continued)
H. Business-type Activities – Leases Payable
The terms and expiration dates of the Medical Center's leases payable at June 30, 2021, follow:

Intuitive Surgical - Lease agreement dated August 2018 in the original principal amount of $1,804,000, due in monthly installments of $29,075, including imputed interest at 3.00%, through March 2024, collateralized by leased equipment.

GE Lease B - Lease agreement dated September 2018 in the original principal amount of $3,000,000, due in monthly installments of $56,986, including imputed interest at 4.41%, through August 2023, collateralized by leased equipment.

Stryker Beds - Lease agreement dated April 2020 in the original principal amount of $1,766,998, due in monthly installments of $22,560, including imputed interest at 2.00%, through March 2027, collateralized by leased equipment.

MedOne Pumps - Lease agreement dated June 2020 in the original principal amount of $1,487,456, due in monthly installments of $18,991, including imputed interest at 2.00%, through June 2027, collateralized by leased equipment.

Interventional Radiology – Lease agreement dated December 2020 in the original principal amount of $532,635, due in monthly installments of $6,501, including interest at 4.00%, through January 2026, collateralized by leased equipment.

Calexico clinic - Lease agreement dated July 2017 in the original principal amount of $1,200,933, due in monthly installments of $22,117, including imputed interest at 4.00%, through June 2022, for building space.

The Medical Center has entered into various other lease agreements due in monthly installments from $409 to $25,675, including interest from 1.74% to 4.95%, expiring from June 2020 to June 2025, collateralized by various leased assets.

The Medical Center has also entered into rental agreements that do not meet the criteria for capitalization, with related rentals charged to operations as incurred. Rental expense for these agreements amounted to $1,159,750 and $721,367 for the fiscal years ended June 30, 2021 and 2020, respectively. In the event of a default, the full outstanding balance of the leases immediately becomes due and payable.

Lease commitments on these leases, including interest, are as follows:

Fiscal Year Leases Payable
Ended June 30, Principal Interest Total
2022 $ 2,656,702 $ 202,267 $ 2,858,969
2023 2,206,839 121,320 2,328,159
2024 1,376,923 62,092 1,439,015
2025 957,706 34,885 992,591
2026 580,859 16,518 597,377
2027-2030 524,043 6,670 530,713
$ 8,303,072 $ 443,752 $ 8,746,824

7.a
Packet Pg. 152 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

64 NOTE 8 – LONG-TERM LIABILITIES (Continued)
I. Business-type Activities - Long-Term Debt Amortization The annual requirements to amortize long-term debt outstanding at June 30, 2021 (other than compensated absences and net pension liability) are as follows:

Fiscal Year 2014 Series A Water Revenue Bonds
Ended June 30, Principal Interest Total
2022 $ 1,125,000 $ 1,064,506 $ 2,189,506
2023 1,305,000 1,009,381 2,314,381
2024 1,375,000 942,381 2,317,381
2025 1,450,000 871,756 2,321,756
2026 1,510,000 810,969 2,320,969
2027-2031 8,685,000 2,904,660 11,589,660
2032-2036 10,605,000 979,051 11,584,051
26,055,000 8,582,704 34,637,704
Plus bond premium 1,793,970 1,793,970
$ 27,848,970 $ 8,582,704 $ 36,431,674
Fiscal Year 2014 Series A Wastewater Revenue Bonds
Ended June 30, Principal Interest Total
2022 $ 635,000 $ 767,400 $ 1,402,400
2023 665,000 738,075 1,403,075
2024 900,000 698,950 1,598,950
2025 940,000 652,950 1,592,950
2026 990,000 604,700 1,594,700
2027-2031 5,715,000 2,214,125 7,929,125
2032-2036 7,240,000 695,125
7,935,125-
17,085,000 6,371,325 23,456,325
Plus bond premium 1,474,509 1,474,509
$ 18,559,509 $ 6,371,325 $ 24,930,834

7.a
Packet Pg. 153 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

65 NOTE 8 – LONG-TERM LIABILITIES (Continued)
I. Business-type Activities - Long-Term Debt Amortization (Continued) The annual requirements to amortize long-term debt outstanding at June 30, 2021 (other than compensated absences and net pension liability) are as follows (Continued):

Fiscal Year 2012 Series A Wastewater Refunding Bonds
Ended June 30, Principal Interest Total
2022 $ 525,000 $ 128,843 $ 653,843
2023 540,000 112,328 652,328
2024 555,000 94,669 649,669
2025 580,000 75,863 655,863
2026 605,000 55,488 660,488
2027-2028 1,260,000 45,650 1,305,650
4,065,000 512,841 4,577,841
Less bond discount (27,413) (27,413)
$ 4,037,587 $ 512,841 $ 4,550,428
Fiscal Year 2003 Installment Sale - Water
Ended June 30, Principal Interest Total
2022 $ 100,247 $ 3,008 $ 103,255
$ 100,247 $ 3,008 $ 103,255
Fiscal Year 2003 Installment Sale - Wastewater
Ended June 30, Principal Interest Total
2022 $ 265,482 $ 12,186 $ 277,668
2023 273,447 4,102 277,549
$ 538,929 $ 16,288 $ 555,217

7.a
Packet Pg. 154 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

66 NOTE 8 – LONG-TERM LIABILITIES (Continued)
I. Business-type Activities - Long-Term Debt Amortization (Continued) The annual requirements to amortize long-term debt outstanding at June 30, 2021 (other than compensated absences and net pension liability) are as follows (Continued):

Fiscal Year Hospital Bonds and Financed Purchases Payable Ended June 30, Principal Interest Total
2022 $ 1,205,285 $ 6,918,045 $ 8,123,330
2023 1,260,790 6,864,179 8,124,969
2024 1,305,884 6,807,910 8,113,794
2025 1,363,042 6,749,464 8,112,506
2026 1,405,000 6,688,737 8,093,737
2027-2031 8,035,000 32,421,185 40,456,185
2032-2036 10,390,000 30,065,835 40,455,835
2037-2041 13,580,000 26,876,385 40,456,385
2042-2046 17,750,000 22,707,935 40,457,935
2047-2051 23,235,000 17,223,723 40,458,723
2052-2056 30,685,000 9,769,536 40,454,536
2057-2058 14,885,000 1,295,762 16,180,762
125,100,001 174,388,696 299,488,697
Less bond discount (9,200,635) (9,200,635)
$ 115,899,366 $ 174,388,696 $ 290,288,062

7.a
Packet Pg. 155 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

67 NOTE 8 – LONG-TERM LIABILITIES (Continued)
I. Business-type Activities - Long-Term Debt Amortization (Continued) The annual requirements to amortize long-term debt outstanding at June 30, 2021 (other than compensated absences and net pension liability) are as follows (Continued):

NOTE 9 – RISK MANAGEMENT
The City is exposed to various risks of loss related to workers' compensation claims, torts, the theft of, damage to, and destruction of assets, errors and omission, natural disasters, and group health insurance claims. To deal with these risks, the City has adopted a formal risk management program. As part of this program, various risk control techniques, including employee accident prevention training, are being implemented to minimize accident-related losses. An integral part of the program, however, continues to be insuring arrangements.

A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 119 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased insurance for property and other lines of coverage. The Authority began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

Audited financial statements for the Authority are available from Finance Director, at California Joint Powers Insurance Authority, 8081 Moody Street, La Palma, California 90623.

Fiscal Year
Ended June 30, Principal Interest Total
2022 $ 6,512,716 $ 9,096,255 $ 15,608,971
2023 6,251,076 8,849,385 15,100,461
2024 5,512,807 8,606,002 14,118,809
2025 5,290,748 8,384,918 13,675,666
2026 5,090,859 8,176,412 13,267,271
2027-2031 24,219,043 37,592,290 61,811,333
2032-2036 28,235,000 31,740,011 59,975,011
2037-2041 13,580,000 26,876,385 40,456,385
2042-2046 17,750,000 22,707,935 40,457,935
2047-2051 23,235,000 17,223,723 40,458,723
2052-2056 30,685,000 9,769,536 40,454,536
2057-2058 14,885,000 1,295,762 16,180,762
181,247,249 190,318,614 371,565,863
Plus bond premium 3,268,479 3,268,479
Less bond discount (9,228,048) (9,228,048)
$ 175,287,680 $ 190,318,614 $ 365,606,294
Total Business-type Activities

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Packet Pg. 156 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

68 NOTE 9 – RISK MANAGEMENT (Continued)
B. Self-Insurance Programs of the Authority
Each member pays an annual contribution to cover estimated losses for the coverage period. This initial funding is paid at the beginning of the coverage period. After the close of the coverage period, outstanding claims are valued. A retrospective deposit computation is then conducted annually thereafter until all claims incurred during the coverage period are closed on a pool-wide basis. This subsequent cost re-allocation among members based on actual claim development can result in adjustments of either refunds or additional deposits required.

The total funding requirement for self-insurance programs is estimated using actuarial models and pre-funded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk-sharing pool.

Additional information regarding the cost allocation methodology is provided below.

Liability
In the liability program claims are pooled separately between police and non-police exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs in excess of $750,000 up to the reinsurance attachment point of $5 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $5 million to $10 million are paid under a reinsurance contract subject to a $2.5 million annual aggregate deductible. The $2.5 million annual aggregate deductible is fully covered under a separate policy; as such no portion of it is retained by the Authority. Costs of covered claims from $10 million to $15 million are paid under two reinsurance contracts subject to a combined $3 million annual aggregate deductible. The $3.0 million annual aggregate deductible is fully retained by the Authority. (6) Costs of covered claims from $15 million to $20 million are paid under reinsurance agreements. (7) Costs of covered claims from $20 million to $50 million are paid under excess insurance policies.

The overall coverage limit for each member including all layers of coverage is $50 million per occurrence.

Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a pooled sub-limit of $30 million per occurrence. This $30 million subsidence sub-limit is composed of (a) $5 million retained within the pool's SIR, (b) $15 million in reinsurance, subject to the same annual aggregate deductibles previously stated, and (c) $10 million in excess insurance. The excess insurance layer has a $10 million annual aggregate limit.

Payments to the Authority for property and casualty coverage are recorded as expenditures in the General Fund.

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Packet Pg. 157 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

69 NOTE 9 – RISK MANAGEMENT (Continued)
B. Insurance Programs of the Authority (Continued)
Workers Compensation
In the workers' compensation program claims are pooled separately between public safety (police and fire) and non-public safety exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of $2 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a reinsurance policy.

Protection is provided per statutory liability under California Workers' Compensation Law.

Employer's Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer's Liability losses from $5 million to $10 million are pooled among members.

The City is responsible for workers' compensation claims incurred before July 1, 1997, under its self-insured program. Estimated unpaid claims reflect the maximum probable outcome of all claims without regard to the City's self-insured retention level. Reserves are assessed for indemnity, medical, and expense categories. Indemnity claims are estimated on the basis of computations, which will develop the probable total future cost of compensation and medical benefits due or potentially due. Medical-only claims are estimated on the basis of computations, which will develop the total future cost of medical benefits due or potentially due. Liability estimates are not reduced for third party recoveries, subrogation recoveries, or aggregate excess insurance coverage.

Payments for workers’ compensation coverage are recorded as an expense to Workers’ Compensation Internal Service Fund. Changes in workers’ compensation liability for the current and past two fiscal years are as follows:

Balance at Current Year Balance at
Beginning of Claims and End of
Fiscal Year Changes in Claim Fiscal Year
Fiscal Years Liability Estimates Payments Liability
2018-19 $ 92,520 $ 1,109,939 $ (1,097,087) $ 92,520
2019-20 105,372 1,193,760 (1,112,712) 186,420
2020-21 186,420 1,087,447 (1,194,163) 79,704

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Packet Pg. 158 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

70 NOTE 9 – RISK MANAGEMENT (Continued)
B. Insurance Programs of the Authority (Continued)

Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program (formerly called environmental insurance) which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City.

Coverage is on a claims-made basis. There is a $50,000 deductible. The Authority has a limit of $50 million for the 3-year period from July 1, 2019 through July 1, 2022. Each member of the Authority has a $10 million sub-limit during the 3-year term of the policy.

Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of El Centro property is currently insured according to a schedule of covered property submitted by the City of El Centro to the Authority. City of El Centro property currently has all-risk property insurance protection in the amount of $45,057,283. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retrospective adjustments.

Crime Insurance
The City purchases crime insurance coverage in the amount of $3,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retrospective adjustments.

Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays for the insurance. The insurance is arranged by the Authority.

The City did not purchase Earthquake and Flood Insurance.

During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2020-2021.

C. Additional Insurance Programs
Group Health Insurance
The "Risks of Loss" to the City under the City sponsored group health insurance plans include major medical, dental, and vision claims. Prior to August 1, 1999, the City contracted with Pacific Mutual Insurance Company for a fully insured plan for medical and dental coverage.

On August 1, 1999, the City implemented a self-funded plan providing for the same benefits as the Pacific Mutual plan. The City’s liability is limited to $100,000 per employee with an overall cap of 125% of projected medical claims and 100% of dental and vision claims.

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Packet Pg. 159 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

71 NOTE 9 – RISK MANAGEMENT (Continued)
C. Additional Insurance Programs (Continued)

Group Health Insurance (Continued)
The Hospital self-insures against medical costs for its employees and dependents. The Hospital has purchased supplemental coverage for losses in excess of $175,000 per incident and $2,000,000 in aggregate. The related liability is reported in accounts payable and accrued expenses on the statement of net position
The Hospital’s accrued health insurance losses also include an estimate of possible losses attributable to incidents that may have occurred but not been identified under the incident reporting system. Historically, the actual liabilities incurred have not been materially different than the recorded estimates.

Workers’ Compensation Self-Insurance
The Hospital self-insures against workers’ compensation losses. The related liability is reported in accounts payable and accrued expenses on the statement of net position. Losses from asserted and unasserted claims identified under the Hospital’s incident reporting system are accrued based on estimates that incorporate the Hospital’s past experience, as well as other consideration including the nature of each claim or incident and relevant trend factors. Historically, the actual losses incurred have not been materially different than the recorded estimates. The amount of liability recorded for Workers’ Compensation in 2020-21 was $1,818,981 and the amount recorded as liability in 2019-20 was $2,707,728 which resulted in a net decrease in accrued liabilities between the fiscal year ended June 30, 2021 and the fiscal year ended June 30, 2020 of $888,747.

Medical Malpractice Insurance Coverage
The Hospital maintains medical malpractice insurance on a claims-made basis. The policy provides for a per claim deductible of $5,000 with per occurrence coverage of $20 million and aggregate annual coverage limits of $30 million. In management’s opinion, the Hospital has sufficiently accrued an estimated liability for claims incurred prior to June 30, 2021 that are expected to be subsequently reported to the insurance company. The related liability is reported in accounts payable and accrued expenses on the statement of net position.

NOTE 10 – PROPRIETARY FUNDS INFORMATION
The City maintains four enterprise funds. The Water and Wastewater funds account for the provision of basic utility services to all citizens. The Solid Waste fund accounts for trash collection throughout the City. The Hospital is an acute care facility providing health care to the community and surrounding area.

NOTE 11 – CONTINGENT LIABILITIES
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government and the State of California. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds.

The amount, if any, of expenditures which may be disallowed by grantors cannot be determined at this time although the City expects such amounts, if any, to be immaterial.

There are pending lawsuits involving complaints and cross complaints with the City involving performance of action and for damages incurred but a decision/settlement has not been reached.

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Packet Pg. 160 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

72 NOTE 11 – CONTINGENT LIABILITIES (Continued)
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of management, that the ultimate disposition of these lawsuits and proceedings will not have a material adverse effect on the financial condition of the City.

Malpractice, workers’ compensation, and medical benefits claims have been asserted against the Hospital by various claimants. The claims are in various stages of processing and some may ultimately be brought to trial. There are also known incidents that have occurred through June 30, 2021, that may result in the assertion of additional claims. The Hospital management has accrued their best estimate of these contingent losses.

With changes now made to the pilot and permanent RAC (Recovery Audit Contractor) program, it is expected that RAC program review activities will resume by early next year. It is possible the Hospital has a contingent repayment liability for claims not previously reviewed. However, the Hospital has not received any notice from either the pilot RAC or the new permanent RAC regarding any intent to resume a RAC audit.

The health care industry is subject to numerous laws and regulations of federal, state, and local governments. Compliance with these laws and regulations can be subject to government review and interpretation, as well as regulatory actions unknown and unasserted at this time. Over the last several years, government activity has increased with respect to investigations and allegations concerning possible violations of regulations by health care providers which could result in the imposition of significant fines and penalties as well as significant repayment of previously billed and collected revenue for patient services. Other than the issue discussed above, Hospital’s management believes that the Hospital is in substantial compliance with current laws and regulations and that any potential liability arising from compliance issues have been properly reflected in the financial statements or are not considered to be material to the Hospital’s financial position and results of operations as of and for the fiscal year ended June 30, 2021.

The Medicare and Medi-Cal government reimbursement programs account for a substantial amount of the Hospital’s net patient service revenue. Expenditure reduction efforts and budget concerns within the United States and California legislature continue to create uncertainty over the volume of future health care funding. It is at least reasonably possible that future reimbursements for patient services under these programs could be negatively impacted.

NOTE 12 – NET PATIENT REVENUE
The Hospital has arrangements with third‐party payors that provide payments to the Hospital at amounts different from its established rates. A summary of the basis of reimbursement with major third‐party payor categories follows:

Medicare ‐ Inpatient acute‐care services rendered to Medicare program beneficiaries are paid at prospectively determined rates per discharge. These rates vary according to a patient classification system that is based on clinical, diagnostic, and other factors. Medicare reimburses the Company for covered outpatient services rendered to Medicare beneficiaries by way of an outpatient prospective payment system based on ambulatory payment classifications.

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Packet Pg. 161 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

73 NOTE 12 – NET PATIENT REVENUE (Continued)
Medicare (Continued)
Inpatient non‐acute services, certain outpatient services, and defined capital costs related to Medicare beneficiaries are paid based, in part, on a cost reimbursement methodology. The Company is reimbursed for cost reimbursable items at a tentative rate with final settlement determined after submission of annual cost reports and audits thereof by the Medicare fiscal intermediary. The estimated amounts due to or from the program are reviewed and adjusted annually based on the status of such audits and any subsequent appeals. Differences between final settlements and amounts accrued in previous years are reported as adjustments to net patient service revenue in the year examination is substantially completed. Effective January 1, 2014, inpatient services rendered to Medi‐Cal program beneficiaries under a diagnostic related group (DRG) methodology. Under this methodology, similar to Medicare, services are paid at prospectively determined rates per discharge according to a patient classification system that is based on clinical, diagnostic, and other factors.

Medi-Cal ‐ Inpatient services rendered to Medi‐Cal program beneficiaries are reimbursed under noncontracted payment arrangements. The Hospital is reimbursed using a cost reimbursement methodology. Interim payments are based on a cost to charge ratio with final settlement determined after submission of annual cost reports and audits thereof by the Department of Health Care Services (“DHCS”). The estimated amounts due to or from DHCS are reviewed and adjusted annually based on the status of such audits and any subsequent appeals. Differences between final settlements and amounts accrued in previous years are reported as adjustments to net patient service revenue in the year examination is substantially complete.

Net Medicare and Medi-Cal program patient service revenue amounted to $124,052,462 and $106,592,655 for the fiscal years ended June 30, 2021 and 2020, respectively. For the fiscal years ended June 30, 2021 and 2020, the Medical Center recognized in the statements of revenue, expenses, and changes in net position, an increase of approximately $1,557,000 and an increase of approximately $1,908,000, respectively, in net patient service revenue pertaining to the settlement of prior years' cost reports and other third party settlements.

Commercial Insurance, Health Maintenance Organizations, and Preferred Provider Organizations ‐ The Company has also entered into agreements with certain commercial insurance carriers, health maintenance organizations, and preferred provider organizations. The basis for payment to the Company under these agreements includes prospectively determined rates per discharge, discounts from established charges and prospectively determined daily rates.

Other ‐ The Company also provides its services to patients enrolled in programs of commercial insurance carriers, health maintenance organizations and preferred provider organizations under which the Company does not have agreements. The Company recognizes revenue for these patients based on its usual customary rates for these services adjusted for historical trends in the Company’s reimbursement for similar services.

Laws and regulations governing the third party payor arrangements are extremely complex and subject to interpretation. As a result, there is at least a reasonable possibility that recorded estimates will change by a material amount in the near term.

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Packet Pg. 162 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

74 NOTE 12 – NET PATIENT REVENUE (Continued)
Significant concentrations of gross patient accounts receivable at June 30 were as follows:

Revenue from the Medicare and Medi-Cal programs accounted for approximately 45% and 34%, respectively, of net patient service revenue for the fiscal year ended June 30, 2021, and 43% and 31%, respectively, of net patient service revenue for the fiscal year ended June 30, 2020.

At June 30, 2021 and 2020, the Medical Center provided allowances for losses on accounts receivable directly from patients totaling $124,052,462 and $106,592,655, respectively. Amounts written off to bad debt expense included in net patient service revenue totaled approximately $11,356,768 and $6,789,271 for the fiscal years ended June 30, 2021 and 2020, respectively.

Allowances for contractual adjustments included in net patient service revenue totaled approximately $584,476,348 and $577,565,851 for the fiscal years ended June 30, 2021 and 2020, respectively.

NOTE 13 – DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation program created in accordance with Internal Revenue Code Section 457. The program, available to all full-time City employees at their option, permits participants to defer a portion of their salary until future years. The deferred compensation is not available to participants until termination, retirement, death, or unforeseeable emergency.

All amounts of compensation deferred under the program, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are held for the exclusive benefit of the participants.
2021 2020
Medicare $ 50,771,391 $ 48,073,637
Medi-Cal 38,715,420 39,279,878
Commercial and other 25,618,630 30,884,060
Self pay 3,196,700 4,778,250
Gross patient accounts receivable 118,302,141 123,015,825 Less: Allowances for contractual and bad
debt adjustments (97,299,953) (100,766,107)
Net patient accounts receivable $ 21,002,188 $ 22,249,718

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Packet Pg. 163 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

75 NOTE 14 – OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description
The postemployment benefit plan is a single-employer defined healthcare plan administered by the City. The City provides postretirement health, dental, vision, and life insurance benefits, as provided for in various collective bargaining agreements for retirees that meet certain criteria.

The City pays 100 percent of the employee’s premium for benefit coverage for qualifying management employees and elected & contract employees until age 65 and a portion of the employee’s premium for qualifying non-management employees. These costs are typically liquidated in the General Fund. Retirees may not convert the benefit into an in-lieu payment to secure coverage under independent plans.

Eligibility
The table below presents a summary of the basic participant information for the active and retired participants covered under the terms of the Plan.

Annual OPEB Cost and Net OPEB Obligation
For the fiscal year ended June 30, 2021, the total contribution made was $282,984. 52 retired employees received OPEB benefits during the fiscal year.

Net OPEB Liability
The District’s net OPEB liability was measured as of July 1, 2020, and the total OPEB liability used to calculate the OPEB liability was determined by an actuarial valuation as of July 1, 2019.

Actuarial Method and Assumptions
The total OPEB liability in the July 1, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

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Packet Pg. 164 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

76 NOTE 14 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) Net OPEB Liability (Continued)
Actuarial Method and Assumptions (Continued)

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Packet Pg. 165 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

77 NOTE 14 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) Change in Net OPEB Liability
There is sensitivity of the net OPEB liability due to changes in the discount rate and healthcare cost trend rates. The following presents the net OPEB liability of the District, as well as what the District’s net OPEB liability would be if it were calculated using the discount and trend rate that were 1 percentage point lower or 1 percentage point higher than the current discount and trend rates.

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Packet Pg. 166 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

78 NOTE 14 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $282,984. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
$280,525 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the fiscal year ended June 30, 2022. Amounts reported as deferred outflows of resources related to OPEB will be recognized as OPEB expense as follows:

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Packet Pg. 167 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

79 NOTE 15 – PENSION PLAN
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Pension liabilities are typically liquidated in the General Fund for governmental activities or in the respective enterprise fund.

A. General Information about the Pension Plan
Plan Descriptions - All qualified employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans, cost-sharing and agent multipleemployer defined benefit pension plans, respectively, administered by the California Public Employees' Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

Hire date Prior to July 1, 2013
On or after July 1,
2013 Prior to July 1, 2013
On or after July 1,
2013
Benefit formula 2.5% @ 55 2% @ 62 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 50-55 52 - 67 50 50-57
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 1.0% to 2.5% 3% 2.0% to 2.7% Required employee contribution rates 7.00% 7.00% 9.00% 12.25% Required employer contribution rates 10.283% 10.283% 58.458% 12.25% City Miscellaneous Plan City Safety Plan

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Packet Pg. 168 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

80 NOTE 15 – PENSION PLAN (Continued)
A. General Information about the Pension Plan (Continued) Employees Covered – At June 30, 2021, the following employees were covered by the benefit terms for each Plan:

Contributions - Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July l following notice of a change in the rate. Funding contributions for both Plans 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 fiscal 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.

B. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plans are measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions - The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2016 valuation were based on the results of a January 2014 actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can found on the CalPERS website.

Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 155 137 Inactive employees entitled to but not yet receiving benefits 186 82 Active employees 117 123
Total 458 342
Miscellaneous Safety
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.75% 2.75%
Payroll Growth 3.00% 3.00%
Projected Salary Increase 3.30%-14.20% (1) 3.30%-14.20% (1) Investment Rate of Return 7.375% (2) 7.375% (2)
Mortality
Entry-Age Normal Cost Method
Derived using CalPERS' Membership Data for
all Funds

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Packet Pg. 169 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

81 NOTE 15 – PENSION PLAN (Continued)
B. Net Pension Liability (Continued)
Discount Rate - The discount rate used to measure the total pension liability was 7.15% for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary.

The long term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

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

In determining the long-term expected rate of return, CalPERS took into account both shortterm 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 and adjusted to account for assumed administrative expenses. rate The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Assumed Asset Real Return Real Return
Asset Class Allocation Year 1-10(a) Year 11+(b)
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
a) An expected inflation of 2% used for this period
b) An expected inflation of 2.92% used for this period

7.a
Packet Pg. 170 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

82 NOTE 15 – PENSION PLAN (Continued)
C. Changes in the Net Pension Liability
The change in the Net Pension Liability for each Plan follows:

Miscellaneous Plan:

Safety plan:

As of June 30, 2021, the City Safety Plan reported net pension liabilities for its proportionate share of the net position liability of the Plan as follows:

Proportionate
Share of Net
Pension Liability
$ 33,638,387

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Packet Pg. 171 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

83 NOTE 15 – PENSION PLAN (Continued)
C. Changes in the Net Pension Liability (Continued)
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2020 and 2021 was as follows:

Sensitivity of the Net Pension Liability to Changes in the Discount Rate -The following presents the net pension liability of the Local Government for each Plan, calculated using the discount rate for each Plan, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:

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

Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability $ 30,207,097 $ 49,661,792
Current Discount Rate 7.15% 7.15%
Net Pension Liability $ 18,788,796 $ 33,638,387
1% Increase 8.15% 8.15%
Net Pension Liability $ 9,346,206 $ 20,489,667

7.a
Packet Pg. 172 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

84 NOTE 15 – PENSION PLAN (Continued)
D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the fiscal year ended June 30, 2021, the City recognized pension expense of $3,179,824 and $10,368,625 in total across all plans. At June 30, 2021, the Local Government reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for each plan:

Safety Plan:
$3,446,636 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2022. Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows:

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Packet Pg. 173 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

85 NOTE 15 – PENSION PLAN (Continued)
D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Miscellaneous Plan:
$2,151,942 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2022. Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows:

NOTE 16 – EL CENTRO REGIONAL MEDICAL CENTER PENSION PLAN General Information about the Retirement Plan
Plan description – The Retirement Plan is a single-employer defined benefit pension plan sponsored and administered by the Medical Center. The Retirement Plan covers all employees of the Medical Center hired before January 1, 2010. Employees first hired after December 31, 2009 are not eligible to participate in the Retirement Plan. The Retirement Plan provides retirement and death benefits to participants and its beneficiaries. The Retirement Plan is administered by a retirement plan committee appointed by the Board of Trustees of the Medical Center.

Benefits provided – The Retirement Plan provides retirement and death benefits. Retirement benefits for employees are calculated as the average of the highest consecutive three years of earnings. Employees are eligible to participate on their date of hire. Employees’ retirement benefits vest 100% at sixty years of age and after twenty-five years of completed service. Normal retirement is the later of age 65 and the 5th anniversary of hire. Early retirement is available at age 55 based on credited service to the date of retirement, with a benefit that is actuarially reduced for commencement prior to the normal retirement date. Death benefits are paid as a lump sum equal to the greater of the present value of the participant’s accrued benefit or the participant’s accumulated employee contributions.

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 2,151,942 $ - Change of assumptions (72,282) Net difference between actual vs project experiences 395,559 (238,163) Net differences between projected and actual earnings on plan investments 527,623 Total $ 3,075,124 $ (310,445)

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Packet Pg. 174 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

86 NOTE 16 – EL CENTRO REGIONAL MEDICAL CENTER PENSION PLAN (Continued) General Information about the Retirement Plan (Continued) Employees covered by benefit terms – At June 30, 2021, the following employees were covered by the benefit terms:

As of January 1, 2010 the Retirement Plan was closed to new entrants.

Contributions – The Retirement Plan’s funding policy provides for annual employer contributions at actuarially determined rates that, expressed as a percentage of annual covered payroll, are sufficient to accumulate assets to pay benefits when due. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the fiscal year, with an additional amount to finance any unfunded accrued liability. The Medical Center is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the fiscal year ended June 30, 2020, participants contributed 5.75% of their annual pay and the Medical Center’s average contribution rate was 24354% of annual payroll. The contribution requirements of participants and the Medical Center are established and may be amended by the Medical Center’s Board of Trustees.

Please contact the El Centro Regional Medical Center at 1415 Ross Avenue, El Centro CA, 92243 or (760) 339-7100 for more information regarding this plan.

Net Pension Liability
The Medical Center’s net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.

Actuarial assumptions – The total pension liability in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Mortality rates were based on the Society of Actuaries RP 2014 Table with the current MP 2018 adjustment for males or females, as appropriate.

The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period January 1, 2008 through December 31, 2013.

Inactive employees or beneficiaries currently receiving benefits 336 Inactive employees entitled to but not yet receiving benefits 1,002 Active employees 296
Total 1,634

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Packet Pg. 175 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

87 NOTE 16 – EL CENTRO REGIONAL MEDICAL CENTER PENSION PLAN (Continued) Net Pension Liability (Continued)
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. 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 and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Discount rate – The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows used to determine the discount rate assumed that participant contributions will be made at

6.00% of pay from July 1, 2020 through June 30, 2021. Based on those assumptions, the Retirement Plan’s 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 pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Changes in Net Pension Liability
Asset Class Target Allocation
Long-Term
Expected Rate
of Return
Domestic equities 20.00% 8.00%
International equities 10.00% 0.00%
Convertible bonds 10.00% 0.00%
Fixed income 25.00% 3.50%
Alternative investments 35.00% 7.00%
Cash 0.00% -1.00%
Total 100.00%
Increase (Decrease)
Total Pension Liability
Plan Fiduciary
Net Position
Net Pension
Liability (Asset)
Balance at June 30, 2020 $ 112,210,300 $ 65,028,100 $ 47,182,200 Changes during the fiscal year:

Services Cost 882,300 882,300
Interest on the Total Pension Liability 7,988,000 7,988,000 Actuarial liability loss (gain) 1,729,400 1,729,400
Changes in assumptions (318,900) (318,900)
Contribution from the Employer 5,400,000 (5,400,000)
Contribution from the Employees 1,326,000 (1,326,000)
Net investment income 7,177,200 (7,177,200)
Benefit Payments (5,452,000) (5,452,000)
Admin expense (53,300) 53,300
Net Changes 4,828,800 8,397,900 (3,569,100)
Balance at June 30, 2021 $ 117,039,100 $ 73,426,000 $ 43,613,100

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Packet Pg. 176 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

88 NOTE 16 – EL CENTRO REGIONAL MEDICAL CENTER PENSION PLAN (Continued) Net Pension Liability (Continued)
The mortality assumption was changed from the 2016 Annuitant and Nonannuitant table for males and females to the 2016 Annuitant and Nonannuitant table for males and females published by the Internal Revenue Service in Notice 2015-53.

Sensitivity of the net pension liability to changes in the discount rate – The following presents the net pension liability of the Medical Center, calculated using the discount rate of 7.25%, as well as what the Medical Center’s net pension liability would be if it were calculated using a discount rate that is 1- percentage-point lower (6.25%) or 1-percentage-point higher (8.25%) than the current rate:
1% Decrease 6.25%
Net Pension Liability $ 56,861,900
Current Discount Rate 7.25%
Net Pension Liability $ 43,613,100
1% Increase 8.25%
Net Pension Liability $ 32,783,000

7.a
Packet Pg. 177 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

89 NOTE 16 – EL CENTRO REGIONAL MEDICAL CENTER PENSION PLAN (Continued) Net Pension Liability (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the fiscal year ended June 30, 2021, the Medical Center recognized pension expense of $4,376,700.

At June 30, 2021, the Medical Center reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Contributions made after the measurement date ($5,400,000) reported as deferred outflows of resources will be recognized as reductions of the net pension liability in the following year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions as of June 30, 2021, will be recognized as pension expense as follows:

Defined Contribution Plan
Employees hired after January 1, 2010 are enrolled in a Defined Contribution Plan, 401(a). The DCP is administered by the Hospital.

Benefit terms, including contribution requirements, for the DCP are established by the Hospital. The Hospital is required to match employee contribution percentages. Employees enrolled in this plan contributed 6% of their gross payroll in fiscal year 2021 and the Hospital matched 6%. Employees are immediately vested upon entering the DCP.

The Medical Center's contributions to this plan were $1,494,727 and $1,449,981 for the fiscal years ended June 30, 2021 and 2020, respectively.

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 5,400,000 $ - Change of assumptions (68,000) Net difference between actual vs project experiences 368,700 Net differences between projected and actual earnings on plan investments (796,600) Total $ 5,768,700 $ (864,600)
Fiscal Year Ended
June 30
2022 $ 572,200
2023 (203,400)
2024 (383,300)
2025 (481,400)

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Packet Pg. 178 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

90 NOTE 17 – NET POSITION
GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. Net position is divided into three captions under GASB Statement No. 63. These captions apply only to net position as determined at the government-wide level and are described below:

Net Investment in Capital Assets describes the portion of net position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of net position that has external constraints placed on it by creditors, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislation. These principally include debt service requirements, and redevelopment funds restricted to low and moderate income housing purposes.

Unrestricted describes the portion of net position that does not meet the definition of invested in capital assets or restricted net position.

The government-wide statement of net position reports $52,654,435 of restricted net position for governmental activities and $ 13,955,202 for business-type activities.

None of the restricted net position in the government-wide statement of net position is restricted by enabling legislation.

NOTE 18 – FUND BALANCES
GASB Statement No. 54 requires governmental funds to report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific Purposes for which amounts in the funds can be spent. As of June 30, 2021, fund balances for governmental funds are made up of the following:

Nonspendable – amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact.

Restricted – amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments.

Committed – amounts that can be used only for specific purposes determined by a formal action of the governing board in the highest level of decision-making authority for the City. Commitments may be established, modified, or rescinded only through resolutions approved by the governing board.

Assigned – amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Under the City’s adopted policy, only the City Manager may assign amounts for specific purposes.

Unassigned – all other spendable amounts.

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Packet Pg. 179 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

91 NOTE 18 – FUND BALANCES
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the governing board (or City Manager for assignments) has provided otherwise in its commitment or assignment actions.

The governing board adopted a minimum fund balance policy for the General Fund in order to establish, dedicate, and maintain reserves annually to meet known and estimated future obligations. The General Fund policy is to have not less than 10% of total expenditures in the unassigned fund balance for economic uncertainties. The General Fund is the only fund that reports a positive unassigned fund balance. Other governmental funds may report unassigned fund balance only when liabilities exceed assets resulting in a negative unassigned fund balance.

A detailed schedule of fund balances as of June 30, 2021 is presented below.

Other Total
Governmental Governmental
General Funds Funds
Restricted for:

Housing $ - $ 5,255,767 $ 5,255,767
Special projects 845,508 845,508
Debt service 5,801,384 5,801,384
Community development 26,052,041 26,052,041
Asset forfeiture 431,033 431,033
Public safety 1,380,086 1,380,086
Streets and roads 8,070,146 8,070,146
Landscaping & community facilities district 175,173 175,173 Pension plan 1,850,641 1,850,641
Capital projects 18,221,645 18,221,645
Total restricted fund balances 1,850,641 66,232,783 68,083,424 Committed to:

Parks and recreation 128,437 128,437
Streets and roads 467,929 467,929
Capital projects 1,071,098 1,071,098
Total committed fund balances 1,667,464 1,667,464
Assigned to:

Other post employment benefits 88,954 88,954
Total assigned fund balances 88,954 88,954
Unassigned 32,883,320 (219) 32,883,101
Total unassigned fund balances 32,883,320 (219) 32,883,101 Total fund balances $ 34,822,915 $ 67,900,028 $ 102,722,943

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Packet Pg. 180 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

92 NOTE 19 – MEDICARE ADVANCE PAYMENT
As a result of the COVID-19 pandemic, CMS offered an accelerated and advance payment program which gave healthcare providers the opportunity to receive an advance on future Medicare payments. The Hospital received a Medicare Advance Payment of $22,948,343 in April 2020. Repayment of the Medicare Advance Payment is expected to begin 12 months after receipt of the advance, with a portion of Medicare payments being withheld until the advance is paid-infull. Medicare will withhold 25% of net Medicare payments during the 12th through 23rd months after the original advance, and 50% of net Medicare payments during the 24th through 29th month after the original advance. Interest will be charged on any remaining balance after the 29th month at an annual rate of 4.0%. The Medical Center reported a Medicare Advance Payment liability totaling $21,068,613 at June 30, 2021, which is reported as a refundable advance in the accompanying statements of net position. The current portion of the refundable advance is management's estimate of the amount to be repaid within the next fiscal year.

NOTE 20 – COVID-19 RELIEF FUNDS AND GRANT REVENUE
During 2020, the Medical Center received $20,048,320 and $13,256,528 in grant funding from the HHS Provider Relief Fund, which was established as a result of the CARES Act for the fiscal year ended June 30, 2020 and 2021. Based on the terms and conditions of the grant, the Medical Center earns the grant by incurring healthcare-related expenses attributable to COVID-19 that another source has not reimbursed and is not obligated to reimburse, or by incurring lost revenues, defined as a negative change in year-over-year net patient care operating income, net of healthcare-related expenses attributable to COVID-19. During 2021 and 2020, the Medical Center recognized $14 million and $19 million, respectively, in grant revenue related to this program, which reflects management's estimate of the amount of the grant earned, including consideration for uncertainties related to reporting guidance still developing as of the date the financial statements were available to be issued. During 2021 and 2020, the Medical Center received other grants from federal and state agencies totaling $0 and $310,578, respectively, as a result of COVID-19. As of June 30, 2021 and 2020, the Medical Center recorded unearned revenue of $0 and $6,228,993, respectively, for the amount of grants received but not earned.

NOTE 21 – RELATED PARTY TRANSACTIONS
On February 23, 2011, the City entered into a Reimbursement Agreement with the former Redevelopment Agency (RDA). The former RDA desired to provide funds to finance the cost of the acquisition, installation, construction and/or reimbursement of public infrastructure improvements within or outside the Project Area owned by the City and located in the City. The former RDA entered into a Reimbursement Agreement in which the former RDA agreed to reimburse the City for all costs of the Project Improvements that have been or will be paid or provided for initially by the City either directly or through reimbursement in an amount not to exceed $4.2 million (amended to $162 million in an amendment to the agreement). The reimbursement agreement stated that the reimbursement obligation shall constitute an indebtedness of the former RDA to the City which would be payable out of taxes levied in the Project Area and out of any other available funds. The former RDA pledged and granted the City a security interest in and lien on the Tax Revenues, except such pledge is subordinate to any existing bonds, notes, or other forms of indebtedness incurred by the former RDA or as otherwise agreed between the City and the former RDA.

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Packet Pg. 181 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

93 NOTE 21 – RELATED PARTY TRANSACTIONS (Continued)
On March 8, 2011, the former RDA issued the El Centro Redevelopment Project Tax Allocation Bonds Series 2011A to the City in the amount of $5,110,000 to partially satisfy the Reimbursement Agreement between the City and RDA.

On April 7, 2011, the former RDA issued the El Centro Redevelopment Project Tax Allocation Bonds Series 2011B in the amount of $20,000,000 and the El Centro Redevelopment Project Tax Allocation Bonds Series 2011C in the amount of $11,095,000 to the City to partially satisfy the Reimbursement Agreement between the City and RDA.

The Tax Allocation Bonds Series 2011A are junior and subordinate to the payment of the Tax Allocation Bonds 2007A&B and the Tax Allocation Bonds Series 2011C.

The Tax Allocation Bonds Series 2011B are secured on a basis subordinate to the Tax Allocation Bonds 2007A&B, the Tax Allocation Bonds Series 2011A, and the Tax Allocation Bonds Series 2011C. Under the Indenture of Trust, there will be no event of default if the former RDA does not pay principal or interest on the Tax Allocation Bonds Series 2011B while the City is the sole holder of the bonds unless the City declares such event of default in a written notice to the Trustee.

The Tax Allocation Bonds Series 2011C are subordinate to the Tax Allocation Bonds 2007 A&B.

The City entered into a commitment agreement and purchase contract with the El Centro Financing Authority (Authority) for the purchase and sale of the Tax Allocation Bonds Series 2011C to the Authority. For the purpose of acquiring the bonds, the Authority issued the El Centro Financing Authority Revenue Bonds Series 2011. A portion of the proceeds of the Authority Bonds were used by the Authority to purchase the Tax Allocation Bonds Series 2011C in the amount of $11,095,000 from the City. The El Centro Financing Authority issued the Revenue Bonds Series 2011 on May 3, 2011. The remaining proceeds were used to fund the Reserve Fund, and pay costs of issuing the Bonds and the Local Obligations.

The former RDA delivered the Tax Allocation Bonds Series 2011C to the City and the City transferred the Tax Allocation Bonds Series 2011C to the Authority. The Tax Allocation Bonds Series 2011A and 2011B were shown as investments in the City’s capital projects fund and the Tax Allocation Bonds Series 2011C is shown as an investment in the Financing Authority fund.

As no money was transferred between the former RDA and City for the Tax Allocation Bonds (2011A, 2011B, and 2011C), advances receivable and payable have been set up in the financial statements for the amounts of the Tax Allocation Bonds.

However, in accordance with the Department of Finance letter dated April 1, 2014, the Tax Allocation Bonds Series 2011A and 2011B were disallowed as enforceable obligations since they were created between the City and former RDA and not with an outside entity. Due to this reason, prior period adjustments were made to eliminate the bonds which had been recorded as assets totaling $25,110,000 in the City’s capital projects fund, an advance totaling $25,110,000 between the City and Successor Agency, and as long term debt totaling $25,055,000 in the Successor Agency private purpose trust fund.

7.a
Packet Pg. 182 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

94 NOTE 22 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of El Centro that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or other unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of the City resolution number 12.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence as the date of the dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the state Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

Prior to that date, the final seven months of activity of the redevelopment agency continued to be reported in the governmental funds of the City. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

7.a
Packet Pg. 183 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

95 NOTE 22 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private-purpose trust fund as an extraordinary gain (or loss).

Because of the different measurement focus of the governmental funds (current financial resources measurement focus) and the measurement focus of the trust funds (economic resources measurement focus), the extraordinary loss (gain) recognized in the governmental funds was not the same amount as the extraordinary gain (loss) that was recognized in the fiduciary fund financial statements.

Capital asset activities for the fiscal year ended June 30, 2021 was as follows:

The following is a schedule of long-term liabilities for the fiscal year ended June 30, 2021:

Fiduciary Activities: Balance at Balance at
Capital assets, not being depreciated: July 1, 2020 Additions Deletions June 30, 2021 Land and land improvements $ 5,763,861 $ - $ - $ 5,763,861 Construction in progress 1,694,868 1,694,868
Total capital assets, not being depreciated 7,458,729 7,458,729 Capital assets, being depreciated:

Structures and improvements 21,720,364 21,720,364
Vehicles 79,772 79,772
Equipment 425,128 425,128
Total capital assets, being depreciated 22,225,264 22,225,264 Less accumulated depreciation for:

Structures and improvements (10,035,398) (480,830) (10,516,228) Vehicles (79,772) (79,772)
Equipment (359,103) (4,890) (363,993)
Total accumulated depreciation (10,474,273) (485,720) (10,959,993) Total capital assets, being depreciated net 11,750,991 (485,720) 11,265,271 Fiduciary activities capital assets, net $ 19,209,720 $ (485,720) $ 18,724,000 - $ Balance at Balance at Due Within
July 1, 2020 Additions Reductions June 30, 2021 One Year Tax allocation bonds payable (2007B) 4,380,000 $ $ (170,000) - $ $ 4,210,000 $ 190,000 Unamortized discount (23,914) 1,464 (22,450) (1,464)
Tax allocation bonds payable (2011) 4,390,000 (840,000) 3,550,000 860,000 Tax allocation refunding bonds payable (2018) 16,270,000 (690,000) 15,580,000 745,000 Unamortized premium 1,927,596 (113,388) 1,814,208 113,388 Total $ 26,943,682 $ (1,811,924) - $ $ 25,131,758 $ 1,906,924

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Packet Pg. 184 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

96 NOTE 22 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
Tax Allocation Bonds Payable
Tax Allocation Bonds (2007). On May 16, 2007, the former Redevelopment Agency of the City of El Centro issued its $25,790,000 Tax Allocation Bonds, Series 2007A and $5,405,000 Tax Allocation Bonds, Series 2007B. A portion of these Series 2007A and Series B Bonds was used to redeem all of the $7,810,000 1996 bonds outstanding at June 30, 2007. The balance of the bond funds were used to finance public improvements, which constitute redevelopment activity within the Project Area, and finance low and moderate income housing projects of the Agency within the Project Area. The bonds have a stated interest rate from 4.00% to 5.75% and are payable over a period of thirty years maturing in 2036. The Series 2007A bonds were refunded by the 2018 Tax Allocation Refunding Bonds. The principal balance outstanding of the Series 2007B Bonds at June 30, 2021 is $ 4,187,550, which is net of the $22,450 of unamortized original bond discount. In the event of a default, the full outstanding balance of the bonds immediately becomes due and payable.

Tax Allocation Bonds (2011). During the fiscal year 2010/2011, the former Redevelopment Agency of the City of El Centro (RDA) issued three tax allocation bonds: El Centro Redevelopment Project Tax Allocation Bonds Series 2011A in the amount of $5,110,000 on March 8, 2011, the El Centro Redevelopment Project Tax Allocation Bonds Series 2011B in the amount of $20,000,000 on April 7, 2011, and the El Centro Redevelopment Project Tax Allocation Bonds Series 2011C in the amount of $11,095,000 on April 7, 2011. Each of the three tax allocation bonds was issued to partially satisfy a Reimbursement Agreement between the City and the former RDA. The Reimbursement Agreement was entered into by the City and RDA to provide funds to the City from the former RDA to finance the cost of the acquisition, installation, construction and/or reimbursement of public infrastructure improvements within or outside of the Project Area owned by the City and located within the City. The Reimbursement Agreement originally stated an amount not to exceed $4,200,000, but was amended to $162,000,000 subsequent to the original Reimbursement Agreement.

The Series 2011C Tax Allocation Bonds are subordinate to the 2007 A/B Tax Allocation Bonds.

The Series 2011C Tax Allocation Bonds have a stated interest rate from 6.000% to 6.625% and have a maturity date of November 1, 2025. The principal balance outstanding at June 30, 2021 is $3,550,000 In the event of a default, the full outstanding balance of the leases immediately becomes due and payable.

Tax Allocation Refunding Bonds (2018). On August 1, 2018, the Successor Agency to the former Redevelopment Agency of the City of El Centro issued its $17,695,000 Tax Allocation Refunding Bonds, Series 2018. The proceeds and additional funds provided by the Successor Agency were used to redeem all of the $20,940,000 2007A bonds outstanding at time of issuance and resulted in a deferred loss of $572,559. The outstanding balance of the defeased bond is $20,185,000 as of June 30, 2020. The bonds have a stated interest rate from 3.00% to 5.00% and are payable over a period of nineteen years maturing in 2036. The principal balance outstanding of the Series 2018 Refunding Bonds at June 30, 2021 is $17,394,208, which includes the $1,814,208 of unamortized original bond premium. In the event of a default, the full outstanding balance of the leases immediately becomes due and payable.

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Packet Pg. 185 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

97 NOTE 22 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
Tax Allocation Bonds Payable (Continued)
The annual requirements to amortize long-term debt outstanding at June 30, 2021 are as follows:

Fiscal Year 2007 Series B Tax Allocation Bonds
Ended June 30, Principal Interest Total
2022 $ 190,000 $ 236,162 $ 426,162
2023 205,000 225,102 430,102
2024 275,000 211,456 486,456
2025 305,000 194,781 499,781
2026 335,000 176,381 511,381
2027-2031 1,795,000 553,869 2,348,869
2032-2036 885,000 198,230 1,083,230
2037 220,000 6,325 226,325
4,210,000 1,802,306 6,012,306
Less bond discount (22,450) (22,450)
$ 4,187,550 $ 1,802,306 $ 5,989,856
Fiscal Year Series 2011C Tax Allocation Bonds
Ended June 30, Principal Interest Total
2022 $ 860,000 $ 204,012 $ 1,064,012
2023 675,000 155,853 830,853
2024 675,000 111,135 786,135
2025 670,000 66,582 736,582
2026 670,000 22,194 692,194
$ 3,550,000 $ 559,776 $ 4,109,776
Fiscal Year 2018 Tax Allocation Refunding Bonds
Ended June 30, Principal Interest Total
2022 $ 745,000 $ 689,550 $ 1,434,550
2023 815,000 650,550 1,465,550
2024 1,070,000 603,425 1,673,425
2025 1,160,000 547,675 1,707,675
2026 1,260,000 487,175 1,747,175
2027-2031 6,640,000 1,376,625 8,016,625
2032-2036 3,155,000 387,341 3,542,341
2037 735,000 12,403 747,403
15,580,000 4,754,744 20,334,744
Plus bond premium 1,814,208 1,814,208
$ 17,394,208 $ 4,754,744 $ 22,148,952

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Packet Pg. 186 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

98 NOTE 22 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
Tax Allocation Bonds Payable (Continued)
The annual requirements to amortize long-term debt outstanding at June 30, 2021 are as follows:
(Continued)
NOTE 23 – SUBSEQUENT EVENTS
Subsequent to fisal year-end, the City may be negatively impacted by the effects of the worldwide coronavirus pandemic. The City is closely monitoring its operations, liquidity, and reserves and is actively working to minimize the current and future impact of this unprecedented situation. As of the date of issuance of these financial statements, the full impact to the City’s financial position is not known.

Fiscal Year Total Tax Allocation Bonds
Ended June 30, Principal Interest Total
2022 $ 1,795,000 $ 1,129,724 $ 2,924,724
2023 1,695,000 1,031,505 2,726,505
2024 2,020,000 926,016 2,946,016
2025 2,135,000 809,038 2,944,038
2026 2,265,000 685,750 2,950,750
2027-2031 8,435,000 1,930,494 10,365,494
2032-2036 4,040,000 585,571 4,625,571
2037 955,000 18,728 973,728
23,340,000 7,116,826 30,456,826
Less bond discount 1,791,758 1,791,758
$ 25,131,758 $ 7,116,826 $ 32,248,584

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CITY OF EL CENTRO
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Packet Pg. 189 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 101

CITY OF EL CENTRO

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Agent Multiple-Employer Defined Benefit Pension Plan – City Miscellaneous Plan Last 10 Fiscal Years*
Schedule of Changes in the Net Pension Liability and Related Ratios Misc Plan Misc Plan Misc Plan Misc Plan Misc Plan Misc Plan Misc Plan 2021 2020 2019 2018 2017 2016 2015
Measurement Period 2019-201
2018-1912017-1812016-1712015-1612014-1512013-141 Total Pension Liability Service Costs $ 1,436,208 $ 1,357,783 $ 1,424,876 $ 1,525,901 $ 1,241,911 $ 1,188,226 $ 1,215,299 Interest on the Total Pension Liability 5,890,131 5,618,863 5,409,618 5,218,413 4,987,901 4,768,690 4,607,233 Changes of Assumptions (313,227) 4,405,259 (1,177,330)
Differences between Expected and Actual Exp. 542,062 (337,697) (359,679) 91,457 (178,197) (856,424) Benefit Payments (3,974,418) (3,553,479) (3,520,063) (3,173,320) (2,996,761) (2,883,347) (2,855,061) Net Change in Total Pension Liability 3,893,983 3,085,470 2,641,525 8,067,710 3,054,854 1,039,815 2,967,471 Total Pension Liability - Beginning 83,106,498 80,021,028 77,379,503 69,311,793 66,256,939 65,217,124 62,249,653 Total Pension Liability - Ending (a) $ 87,000,481 $ 83,106,498 $ 80,021,028 $ 77,379,503 $ 69,311,793 $ 66,256,939 $ 65,217,124 Plan Fiduciary Net Position
Contribution from the Employer $ 1,832,444 $ 1,560,664 $ 1,226,664 $ 1,167,841 $ 1,099,805 $ 831,705 $ 746,065 Contribution from the Employees 648,106 626,203 560,129 662,744 658,851 590,048 604,985 Net investment income2
3,335,322 4,136,928 4,775,232 6,119,412 228,565 1,181,242 8,605,215 Benefit Payments (4,068,116) (3,599,075) (3,520,063) (3,173,320) (2,996,761) (2,883,347) (2,855,061) Net Change in Plan Fiduciary Net Position 1,747,756 2,724,720 3,041,962 4,776,677 (1,009,540) (280,352) 7,101,204 Plan Fiduciary Net Position - Beginning 66,463,929 63,739,209 60,697,247 55,920,570 56,930,110 57,210,462 50,109,258 Plan Fiduciary Net Position - Ending (b) $ 68,211,685 $ 66,463,929 $ 63,739,209 $ 60,697,247 $ 55,920,570 $ 56,930,110 $ 57,210,462 Net Pension Liability - Ending (a)-(b) $ 18,788,796 $ 16,642,569 $ 16,281,819 $ 16,682,256 $ 13,391,223 $ 9,326,829 $ 8,006,662 Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability 78.40% 79.97% 79.65% 78.44% 80.68% 85.92% 87.72% Covered Payroll $ 9,247,959 $ 8,573,488 $ 8,904,921 $ 9,460,021 $ 8,516,739 $ 8,079,870 $ 7,902,333 Net Pension Liability as Percentage of Covered
Payroll 203.17% 194.12% 182.84% 176.34% 157.23% 115.43% 101.32% 1 Historical information is required only for measurement periods for which GASB 68 is applicable. 2 Net of administrative expenses.

Note to Schedule:

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2014. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. * Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

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Packet Pg. 190 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 102

CITY OF EL CENTRO

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Agent Multiple-Employer Defined Benefit Pension Plan – City Miscellaneous Plan Last 10 Fiscal Years*
Schedule of Pension Contributions1
Misc. Plan Misc. Plan Misc. Plan Misc. Plan Misc. Plan Misc. Plan Misc. Plan 2021 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution2
2,151,942$ 1,560,664$ 1,226,812$ 1,167,841$ 1,099,805$ 831,705$ 746,065$ Contributions in Relation to the
Actuarially Determined Contribution2
(2,151,942) (1,560,664) (1,226,812) (1,167,841) (1,099,805) (831,705) (746,065) Contribution Deficiency (Excess) -$ -$ -$ -$ -$ -$ -$
Covered Payroll3,4 9,855,721$ 8,573,488$ 9,172,069$ 8,904,921$ 9,460,021$ 8,516,739$ 8,079,870$ Contributions as a Percentage
of Covered Payroll3

21.83% 18.20% 13.38% 13.11% 11.63% 9.77% 9.23%
1 Historical information is required only for measurement periods for which GASB 68 is applicable. 2Employers are assumed to make contributions equal to the actuarially determined contributions.

However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered payroll as the total payroll of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings are different than total earnings for covered employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios. 4
Includes one year's payroll growth using 3.00 percent payroll growth assumption.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2016-17 were from the June 30, 2014 public agency valuations.

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For detail, see June 30, 2014 Funding Valuation Report Assets Valuation Method Actuarial Value of Assets. For details, see June 30, 2014 Funding Valuation Report.

Inflation 2.75%
Salary Increases Varies by Entry Age and Service
Payroll Growth 3.00%
Investment Rate of Return 7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

Retirement Age The probabilities of Retirement are based on the 2014 CalPERS Experience Study for the period from 1997 to 2011.

Mortality The probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2011. Preretirement and Post-retirement mortality rates included 20 years of projected mortality improvement using Scale AA published by the Society of Actuaries.
* Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

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Packet Pg. 191 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 103

CITY OF EL CENTRO

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Cost Sharing Defined Benefit Pension Plan – City Safety Plan As of June 30, 2021
Schedule of the City’s Safety Plan Proportionate Share of the Net Pension Liability – Last 10 Years*
Notes to Schedule
Change in Benefit Terms: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2014 as they have minimal cost impact. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a Golden Handshakes).

Change in Assumptions: In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent.
*Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of net pension liability 0.309164% 0.299215% 0.311235% 0.314642% 0.330739% 0.352026% 0.598620% Proportionate share of NPL $ 33,638,387 $ 30,660,642 $ 29,991,463 $ 31,203,847 $ 28,619,175 $ 24,162,776 $ 22,454,033 Covered payroll $ 6,735,124 $ 6,096,472 $ 5,766,060 $ 6,144,821 $ 6,054,526 $ 5,399,857 $ 5,399,857 Proportionate share of NPL
as a percentage of covered payroll 499.45% 502.92% 520.14% 507.81% 472.69% 447.47% 415.83% Plan's fiduciary net position $ 84,351,064 $ 83,043,721 $ 80,720,327 $ 76,695,958 $ 68,739,383 $ 67,893,569 $ 67,281,195 Plan's total pension liability $ 117,989,451 $ 113,704,363 $ 110,711,790 $ 107,899,805 $ 97,358,558 $ 92,056,345 $ 89,735,228 Plan fiduciary net position as percentage of
total pension liability 71.49% 73.03% 72.91% 71.08% 70.60% 73.75% 74.98%

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Packet Pg. 192 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 104

CITY OF EL CENTRO

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Cost Sharing Defined Benefit Pension Plan – City Safety Plan As of June 30, 2021
Schedule of Pension Contributions – Last 10 Years*
Notes to Schedule
(1)The mortality table was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report.
*Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractual required contribution (actuarially
determined) 3,446,636$ $ 3,179,824 2,655,234$ 3,930,416$ $ 3,702,904 3,444,430$ 2,825,594$ Contributions in relation to the actuarially
determined contributions (3,446,636) (3,179,824) (2,655,234) (3,930,416) (3,702,904) (3,444,430) (2,825,594) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$
Covered payroll 6,261,838$ $ 6,735,124 5,939,042$ 5,766,060$ $ 6,144,821 6,054,526$ 5,399,857$ Contributions as a percentage of covered
payroll 55.04% 47.21% 44.71% 68.16% 60.26% 56.89% 52.33% Valuation Date: June 30, 2019
Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry-Age Normal Cost Method
Amortization Method Level Percent of Payroll
Asset Valuation Method Market Value
Inflation 2.75%
Salary Increases 3.30% to 14.20% depending on age,
service, and type of employment
Investment Rate of Return

7.50%, net of pension plan investment
and administrative Expenses; includes
Inflation
Mortality Rate Table (1) Derived using CalPERS' Membership Data for all Funds

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CITY OF EL CENTRO

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Schedule of Changes in Net OPEB Liability and Related Ratios - Last 10 Years* *Fiscal year 2018 was the 1st year of implementation, therefore only four years are shown. 2021 2020 2019 2018
Measurement Period 2019-20 2018-19 2017-18 2016-17
Changes in Total OPEB Liability
Service Costs $ 317,618 $ 301,952 $ 293,157 $ 284,618
Interest 399,043 416,686 394,384 374,437
Changes of benefit terms 295,354
Changes of Assumptions (102,413) (31,405)
Differences between Expected and Actual Exp. (1,039,812) Benefit Payments (282,984) (275,478) (306,183) (303,682) Net Change in Total OPEB Liability 331,264 (332,703) 381,358 355,373 Total OPEB Liability - Beginning 7,079,199 7,411,902 7,030,544 6,675,171 Total OPEB Liability - Ending (a) $ 7,410,463 $ 7,079,199 $ 7,411,902 $ 7,030,544 Plan Fiduciary Net Position
Contribution from the Employer $ 282,984 $ 275,478 $ 306,183 $ 303,682 Net investment income1
608,748 645,689 387,498 527,213
Benefit Payments (287,756) (277,411) (306,183) (303,682) Net Change in Plan Fiduciary Net Position 603,976 643,756 387,498 527,213 Plan Fiduciary Net Position - Beginning 9,619,402 8,975,646 8,588,148 8,060,935 Plan Fiduciary Net Position - Ending (b) $ 10,223,378 $ 9,619,402 $ 8,975,646 $ 8,588,148 Net OPEB Liability (Asset) - Ending (a)-(b) (2,812,915) $ $ (2,540,203) $ (1,563,744) $ (1,557,604) Plan Fiduciary Net Position as a Percentage of
the Total OPEB Liability 137.96% 135.88% 121.10% 122.15% Covered Payroll $ 15,951,110 $ 15,670,114 $ 14,211,290 $ 14,913,485 Net OPEB Liability as Percentage of Covered
Payroll -17.63% -16.21% -11.00% -10.44%
1 Net of administrative expenses.

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Packet Pg. 194 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 106

CITY OF EL CENTRO

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Schedule of OPEB Employer Contributions - Last 10 Years* *Fiscal year 2018 was the 1st year of implementation, therefore only four years are shown. 2021 2020 2019 2018
Actuarially Determined Contributions (ADC) 201,000 $ $ 234,000 $ 227,000 $ 154,000 Contributions in relation to ADC 280,525 282,984 275,478 306,183 Contribution deficiency/(excess) (79,525) (48,984) (48,478) (152,183) Covered payroll 16,855,123 15,951,110 15,670,114 14,211,290 Contributions as a percentage of covered
payroll 1.7% 1.8% 1.8% 2.2%

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Packet Pg. 195 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 107

CITY OF EL CENTRO

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Agent Multiple-Employer Defined Benefit Pension Plan – Hospital Plan Last 10 Fiscal Years*
Schedule of Changes in the Net Pension Liability and Related Ratios Change in assumptions: The mortality assumptions was changed from the Society of Actuaries’ RP2014 Table with MP2018 for males or females to the Society of Actuaries’ RP 2014 Table with MP2019 for males or females.
*Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown. 2021 2020 2019 2018 2017 2016 2015
Measurement Period 2019-201
2018-1912017-1812016-1712015-1612014-1512013-141 Total Pension Liability Service Costs $ 882,300 $ 958,700 $ 1,012,200 $ 1,179,700 $ 1,241,300 $ 1,460,700 $ 1,586,900 Interest on the Total Pension Liability 7,988,000 7,872,800 7,327,500 6,889,400 6,525,700 6,129,100 5,589,400 Actuarial Liability Loss 1,729,400 (1,946,200) 4,954,000 4,980,600 1,576,800 1,346,000 3,839,500 Changes of Assumptions (318,900) (274,900) (483,000) 577,200 115,800 109,000 (295,300) Benefit Payments (5,452,000) (4,616,200) (5,263,000) (4,264,400) (4,219,900) (3,646,300) (3,308,000) Net Change in Total Pension Liability 4,828,800 1,994,200 7,547,700 9,362,500 5,239,700 5,398,500 7,412,500 Total Pension Liability - Beginning 112,210,300 110,216,100 102,668,400 93,305,900 88,066,200 82,667,700 75,255,200 Total Pension Liability - Ending (a) $ 117,039,100 $ 112,210,300 $ 110,216,100 $ 102,668,400 $ 93,305,900 $ 88,066,200 $ 82,667,700 Plan Fiduciary Net Position
Contribution from the Employer $ 5,400,000 $ 4,780,300 $ 4,064,100 $ 3,347,900 $ 3,239,400 $ 3,716,700 $ 3,323,900 Contribution from the Employees 1,326,000 1,303,200 1,288,400 1,371,800 1,356,200 1,333,700 1,330,700 Net investment income2
7,177,200 3,902,200 3,198,800 1,676,400 66,800 2,334,200 4,166,900 Benefit Payments (5,505,300) (4,658,500) (5,303,300) (4,302,900) (4,256,500) (3,679,000) (3,337,300) Net Change in Plan Fiduciary Net Position 8,397,900 5,327,200 3,248,000 2,093,200 405,900 3,705,600 5,484,200 Plan Fiduciary Net Position - Beginning 65,028,100 59,700,900 56,452,900 54,359,700 53,953,800 50,248,200 44,764,000 Plan Fiduciary Net Position - Ending (b) $ 73,426,000 $ 65,028,100 $ 59,700,900 $ 56,452,900 $ 54,359,700 $ 53,953,800 $ 50,248,200 Net Pension Liability - Ending (a)-(b) $ 43,613,100 $ 47,182,200 $ 50,515,200 $ 46,215,500 $ 38,946,200 $ 34,112,400 $ 32,419,500 Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability 62.74% 57.95% 54.17% 54.99% 58.26% 61.27% 60.78% Covered Payroll $ 23,156,600 $ 23,655,000 $ 25,425,100 $ 26,162,900 $ 27,097,600 $ 27,657,600 $ 29,865,900 Net Pension Liability as Percentage of Covered
Payroll 188.34% 199.46% 198.68% 176.65% 143.73% 123.34% 108.55%

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Packet Pg. 196 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial 108

CITY OF EL CENTRO

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Agent Multiple-Employer Defined Benefit Pension Plan – Hospital Plan Last 10 Fiscal Years*
Schedule of Pension Contributions
*Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

Misc. Plan Misc. Plan Misc. Plan Misc. Plan Misc. Plan Misc. Plan Misc. Plan 2021 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution 5,400,000$ $ 5,400,000 4,780,300$ $ 4,064,100 $ 3,347,900 $ 3,239,400 $ 3,323,900 Contributions in Relation to the
Actuarially Determined Contribution (5,400,000) (5,400,000) (4,780,300) (4,064,100) (3,347,900) (3,239,400) (3,323,900) Contribution Deficiency (Excess) -$ -$ -$ -$ -$ -$ -$
Covered Payroll3,4 Not Available 23,156,600 $ 23,655,000$ $ 25,425,100 $ 26,162,900 $ 27,097,600 $ 27,657,600 Contributions as a Percentage
of Covered Payroll Not Available 23.32% 20.21% 15.98% 12.80% 11.95% 12.02% Notes to Schedule:

Actuarially determined contribution rates are calculated as of the July 1st prior to the end of the fiscal year in which the contributions are reported Actuarial Cost Method Entry age
Amortization Method/Period Level percentage of payroll, closed Remaining amortization period 12.5 years
Asset valuation method 5 year smoothed market
Inflation 2.00%
Salary Increases 2
Payroll Growth 3.00%
Investment Rate of Return 7.25%
Discount Rate 7.25%
Retirement Age 65 years
Mortality Mortality rates were based on the Society of Actuaries RP 2014 Table with the MP 2019 for males or females, as appropriate.

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Packet Pg. 197 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial 109

CITY OF EL CENTRO

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Budgetary Data
Through the budget, the City Council sets the direction of the City, allocates its resources and establishes its priorities. The Annual Budget assures the efficient and effective uses of the City’s economic resources, as well as establishing that the highest priority objectives are accomplished.

The Annual Budget serves from July 1 to June 30, and is a vehicle that accurately and openly communicates these priorities to the community, businesses, vendors, employees and other public agencies. Additionally, it establishes the foundation of effective financial planning by providing resource planning, performance measures and controls that permit the evaluation and adjustment of the City’s performance.

The City collects and records revenue and expenditures within the following categories:
• Governmental Activities
• Business-Type Activities
The Governmental Funds include the General Fund, Special Revenue, Debt Service and Capital Projects funds. All funding sources are kept separate for both reporting and the use of money. The General Fund is where most City services are funded that are not required to be segregated.

Budgets and Budgetary Accounting
The City uses the following procedures in establishing the budgetary data reflected in the financial statements:

1. Prior to June 30 of each fiscal year, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted at the City Hall to obtain citizen input.

3. Prior to July 1, the budget is adopted through passage of a resolution and is not included herein but is published separately.

4. The City Manager is authorized to transfer budgeted amounts between departments within any fund. However, any revision that increases the total appropriations of any fund must be approved by the City Council. The appropriated budget is prepared by fund, function, and department.

5. Formal budgetary integration is employed as a management control device during the year for all funds.

6. Budgets for General, Special Revenue, Debt Service, and Capital Projects Funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

There were no budgets prepared for the CDBG Special Revenue Fund, Integrated Waste Management Special Revenue Fund, 7th and State Bus Terminal Special Revenue Fund, CDBG COVID-19 Special Revenue Fund, Library Project Special Revenue Fund and EDA Grant Capital Projects Fund.

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Packet Pg. 198 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $ 28,077,000 $ 28,077,000 $ 27,950,120 $ (126,880) Licenses and Permits 346,600 346,600 324,355 (22,245)
Intergovernmental 1,280,000 1,280,000 6,866,079 5,586,079 Charges for Services 918,200 918,200 933,924 15,724
Fines and Forfeitures 68,000 68,000 37,300 (30,700)
Interest 145,000 145,000 498,236 353,236
Other 1,211,000 1,211,000 1,298,040 87,040
Total Revenues 32,045,800 32,045,800 37,908,054 5,862,254 Expenditures
Current
General Government 3,686,501 3,686,501 3,538,826 147,675 Public Safety 17,740,793 17,740,793 16,363,141 1,377,652 Public Works 1,950,204 1,950,204 1,418,547 531,657
Parks and Recreation 4,503,087 4,503,087 3,582,223 920,864 Community Development 2,028,088 2,028,088 2,259,860 (231,772) Capital Outlay 5,022,192 5,022,192 2,641,078 2,381,114
Total Expenditures 34,930,865 34,930,865 29,803,675 5,127,190 Excess (Deficiency) of Revenues Over
(Under) Expenditures (2,885,065) (2,885,065) 8,104,379 10,989,444 Other Financing Sources (Uses):

Transfers In 1,178,924 1,178,924 1,028,500 (150,424)
Total Other Financing Sources (Uses) 1,178,924 1,178,924 1,028,500 (150,424) Net Change in Fund Balance (1,706,141) (1,706,141) 9,132,879 10,839,020 Fund Balance - July 1, 2020 25,690,036 25,690,036 25,690,036 Fund Balance - June 30, 2021 $ 23,983,895 $ 23,983,895 $ 34,822,915 $ 10,839,020 Budgeted Amounts

CITY OF EL CENTRO
General Fund
For the Fiscal Year Ended June 30, 2021
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual See Note to Required Supplementary Information
110

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Packet Pg. 199 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

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Packet Pg. 200 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 111

COMBINING STATEMENTS

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.

Gas Tax - This fund is used to account for the City's share of California State gas tax revenue expended for street improvements and maintenance.

Community Development Block Grant (CDBG) - This fund is used to account for revenues and expenditures under the State of California CDBG program.

Transportation Article 8A - This fund is used to account for State of California Transportation Development Act Funds.

Bus Shelter - This fund is used to account for revenues and expenditures that will be utilized in the maintenance of the Bus Shelters within the City.

Transportation Article 3 - This fund is used to account for State of California Transportation Development Act Funds expended for bicycle and pedestrian projects.

Home Program - This fund is used to account for the expenditure of grant funds received under the California Department of Housing and Community Development Investment Partnership Program.

Rental Rehab HUD - This fund is used to account for revenues and expenditures associated with the California Department of Housing and Urban Development rental rehabilitation program.

Traffic Congestion Relief - This fund is used to account for TCRF funds Home Program Income Admin - This fund is used to account for the administrative expenditures of the HOME program.

Recreation Projects - This fund is used to account for grants and contributions received by the City and used for recreational projects.

Wake Ave Extension - This fund is used for the collection and disbursement of mitigation fees for the construction of Wake Ave.

Special Events - This fund is used to account for activity (revenues and expenditures) related to events held by the City.

Asset Forfeiture - This fund is used to account for revenues distributed by the Department of Justice from drug related seizures.

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Packet Pg. 201 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 112
Local Transportation Authority - This fund is used to account for the revenues and expenditures of funds generated by a one-half cent voter approved sales tax earmarked for street improvements.

Home Grants - This fund is used to account for revenues and expenditures associated with the Home program.

OTS Grant - This fund is used to account for the expenditures of grant funds received from the State of California, Office of Traffic Safety.

State COPS SLESF - This fund is used to account for the revenue and expenditure of funds from the Supplemental Law Enforcement Services Fund (SLESF) pursuant to Section 30061 of the California Government Code (AB 3229).

Annexation Fees - This fund is used to account for the collection and expenditures of annexation fees earmarked for public improvements.

HUD Entitlement Program- This fund is used to account for all revenues and expenditures authorized using the Entitlement guidelines.

CDBG Program Income - This fund is used to account for the collection of Community Development Block Grant loans made from program income.

CDBG COVID-19 - This fund is used to account for the collection of Community Development Block Grant loans related to the COVID-19 pandemic.

Housing Enabled by Local Partnership – This program was set up to provide for a source of funds from which to make mortgage loans to first time home buyers.

CALHOME Program - This program provides mortgage assistance loans to first time home-buyers.

Development Impact Fees - This fund is used to account for the collection and expenditure of development impact fees earmarked for public infrastructure improvements made necessary because of growth.

FHWA Grants - This fund is used to account for the expenditures of grant funds from the FHWA received through the California Department of Transportation.

Integrated Waste Management – This fund was set up for the purpose of solid waste management and source reduction recycling.

Town Center Lighting and Landscaping District - This fund is used to account for the Town Center Lighting and Landscaping District.

I-8 Imperial Ave. Overpass - This fund is used to account for fees charged on new developments for the overpass project.

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Packet Pg. 202 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 113
EDA Revolving - This fund is used to hold excess EDA Loan funds collected and is not currently used for loans.

Police and Fire Mitigation - This fund was set up to collect fees to mitigate impact to police and fire services from new developments.
7 th and State Bus Terminal - This fund is used to account for the activity of the development of the new bus terminal.

Legacy Ranch L&LD - This fund is used to account for the activity related to the landscape & lighting district.

IV Commons - This fund is used to account for the activity related to the deposits received for the IV Commons.

Fire Mitigation - This fund is used to account for funds used for fire mitigation.

COVID-19 – This fund is used to account for various activity related to the COVID-19 pandemic and American Rescue Plan Act funding.

IID Project – This fund is account for grant from IID to help business affected by following and assist them in getting into the business incubator.

Police Grant – This fund is used to account for various police grants from Imperial County.

Successor Agency Housing – This fund set up to account for administrator of the Low Mod program previously administered by the Redevelopment Agency Low Mod fund.

Cooperative Agreement - This fund is used to account for the revenues generated from the coop-agreement related to the construction of Fire Station No. 3.

CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds.

Orange Ave Regional Lift Station - This fund is used to account for revenues and expenditures charged for the development of the lift station.

Park Development - This fund is used to account for fees charged on new development for the development and maintenance of parks.

Drainage Facility - This fund is used to account for the fees charged on new development for drainage facilities.

EDA Grant - This grant will be used to help construct infrastructure improvements to serve the commercial development of the El Centro Town Center II, the El Centro Town Village industrial site, and the 8th Street industrial site.

Lotus Parallel - This fund is used to account for revenues and expenditures incurred in the development of the future water and sewer trunk from water and wastewater plants to I-8.

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Packet Pg. 203 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 114
IID Facility Crossing - This fund is used to collect monies from developers for the installation of siphon pipes to allow for the Orange and Hamilton Avenue crossing. 8 th Street Overpass Bridge - This fund is used to collect monies from developers for the lighting of the bridge.

Bridge/Road Improvements - This fund is used to collect monies from developers for the bridge and road improvements on Dogwood Rd and related areas.

Federal Highway Administration - This fund is used to account for expenditures of grant funds from the FHWA received through the California Department of Transportation used on miscellaneous projects.

Library Project – This fund is used to track the activity related to the 2021 El Centro Library project.

La Brucherie Green Belt - This fund is used to account for the construction of a nonmotorized pathway along La Brucherie Road.

Colonia-El Dorado Street - This fund is used to account for grant funds received under the State Community Development grant program for street improvements in the El Dorado Colonia.

LTA Lease Revenue Bonds – This fund is used to account for the funds received from the bond issuance and use of the funds which will be used for the acquisition, construction, and installation of certain transportation-related improvements within the City.

Buena Vista Landscaping & Lighting District - This fund is used to account for the activity related to the new district.

Road Improvement – This fund is used to collect monies from developers for the improvement of various roads through-out the City.

The 2011C Bonds City – This fund is used to account for capital projects based on the debt issuances of the 2011C Tax Allocation Bonds.

The 2011 A & B Projects – This fund is used to account for revenues and expenditures related to the redevelopment capital projects based on the debt issuances of the former Redevelopment Agency and the agreements between the City and the former Redevelopment Agency that occurred in the 2010/2011 fiscal year.

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Packet Pg. 204 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 115

DEBT SERVICE FUNDS
Debt service funds are used to account for the accumulation of resources and repayment of debt from governmental resources.

Financing Authority – This fund is used to account for the debt service related activity which includes the issuance of the Revenue Bonds Series 2011 and purchase of the Tax Allocation Bonds Series 2011C.

LTA Lease Revenue Bonds - This fund is used to account for debt service payments for the outstanding lease revenue bonds.

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Packet Pg. 205 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2021
Special Revenue Funds
Home
Transportation Bus Transportation Home Rental Traffic Program Gas Tax CDBG Article 8A Shelter Article 3 Program Rehab-HUD Congestion Relief Income Admin Assets
Cash and investments $ - $ - $ 763,000 $ 179,027 $ 198,911 $ 80,463 $ 322,419 $ - $ 15,261 Receivables:

Taxes
Interest 520 244 298 100 357 10
Grants
Notes 1,394,853 4,031,941
Other 82,508 88,645 23,000 59
Restricted cash and investments
with fiscal agent
Land held for resale
Total Assets $ 1,394,853 520 $ $ 845,508 $ 267,916 $ 222,209 $ 4,112,563 $ 322,776 $ - $ 15,271 Liabilities and Fund Balances
Liabilities:

Accounts payable $ - $ - $ - $ 6,670 $ - $ 312 $ - $ - $ - Deposits
Due to other funds
Total Liabilities 6,670 312
Fund Balances
Restricted 1,394,853 520 845,508 261,246 222,209 4,112,251 322,776 15,271 Committed
Unassigned
Total Fund Balances (Deficits) 1,394,853 520 845,508 261,246 222,209 4,112,251 322,776 15,271 Total Liabilities and Fund Balances $ 1,394,853 520 $ $ 845,508 $ 267,916 $ 222,209 $ 4,112,563 $ 322,776 $ - $ 15,271 (Continued)
116

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Packet Pg. 206 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

CITY OF EL CENTRO

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2021
(Continued)
Assets
Cash and investments
Receivables:

Taxes
Interest
Grants
Notes
Other
Restricted cash and investments
with fiscal agent
Land held for resale
Total Assets
Liabilities and Fund Balances
Liabilities:

Accounts payable
Deposits
Due to other funds
Total Liabilities
Fund Balances
Restricted
Committed
Unassigned
Total Fund Balances (Deficits)
Total Liabilities and Fund Balances
Special Revenue Funds
Local
Recreation Wake Ave Special Asset Transportation Home OTS State COPS Annexation Projects Extension Events Forfeiture Authority Grants Grant SLESF Fees $ 326,074 - $ $ 280 $ 429,746 $ 3,507,439 $ 128 $ 61,046 $ 552,813 $ 113,585 362 1,287 7,835 76 17 124 126
220,945 635,806
8,768,440
263,228

$ 220,945 $ 326,436 $ 280 $ 431,033 $ 3,778,502 $ 9,404,450 $ 61,063 $ 552,937 $ 113,711 $ 734 $ - $ 25 $ - $ 236,749 $ 4,000 $ - $ 44,671 $ -
230
206,767 250 565,104
207,731 236,749 275 569,104 44,671
13,214 431,033 5 3,541,753 8,835,346 61,063 508,266
326,436 113,711

13,214 326,436 431,033 5 3,541,753 8,835,346 61,063 508,266 113,711 $ 220,945 $ 326,436 $ 280 $ 431,033 $ 3,778,502 $ 9,404,450 $ 61,063 $ 552,937 $ 113,711 (Continued)
117

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Packet Pg. 207 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

CITY OF EL CENTRO

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2021
(Continued)
Assets
Cash and investments
Receivables:

Taxes
Interest
Grants
Notes
Other
Restricted cash and investments
with fiscal agent
Land held for resale
Total Assets
Liabilities and Fund Balances
Liabilities:

Accounts payable
Deposits
Due to other funds
Total Liabilities
Fund Balances
Restricted
Committed
Unassigned
Total Fund Balances (Deficits)
Total Liabilities and Fund Balances
HUD Housing Enabled Integrated
Entitlement CDBG CDBG By Local CALHOME Development FHWA Waste Program Program Income COVID-19 Partnership Program Impact Fee Grants Management $ 752,545 $ 37,440 $ - $ 508,808 $ 154,218 $ 4,152,651 $ 65,290 $ - 727 573 565 63 3,725 73
68,354 72,437
703,556 589,276 5,801 673,382
800 1,444

$ 1,525,982 $ 628,733 $ 72,437 $ 515,174 $ 827,663 $ 4,156,376 $ 65,363 $ - $ 14,296 $ - $ 30,749 $ - $ - $ 247,610 $ - $ 219
11,924 78,453
14,361 42,673 326,063 219
1,511,621 628,733 29,764 515,174 827,663 3,830,313 65,363 (219)
1,511,621 628,733 29,764 515,174 827,663 3,830,313 65,363 (219) $ 1,525,982 $ 628,733 $ 72,437 $ 515,174 $ 827,663 $ 4,156,376 $ 65,363 $ - (Continued)
Special Revenue Funds
118

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Packet Pg. 208 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

CITY OF EL CENTRO

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2021
(Continued)
Assets
Cash and investments
Receivables:

Taxes
Interest
Grants
Notes
Other
Restricted cash and investments
with fiscal agent
Land held for resale
Total Assets
Liabilities and Fund Balances
Liabilities:

Accounts payable
Deposits
Due to other funds
Total Liabilities
Fund Balances
Restricted
Committed
Unassigned
Total Fund Balances (Deficits)
Total Liabilities and Fund Balances
Town Center I-8 Imperial Legacy Ranch
Lighting and Ave EDA Police & Fire 7th and State Lighting and Landscape District Overpass Revolving Mitigation Bus Terminal Landscape District IV Commons $ 29,903 $ 627,564 $ 21,735 $ 469,492 $ - $ 34,452 $ 72,530 200
7 696 158 521 1 229 81

$ 29,910 $ 628,260 $ 21,893 $ 470,013 $ 1 $ 34,881 $ 72,611 $ 249 $ - $ - $ - $ - $ 4,390 $ -
275 487,200 61,840

524 487,200 4,390 61,840
29,386 21,893 470,013 1 30,491 10,771
141,060

29,386 141,060 21,893 470,013 1 30,491 10,771
$ 29,910 $ 628,260 $ 21,893 $ 470,013 $ 1 $ 34,881 $ 72,611 (Continued)
Special Revenue Funds
119

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Packet Pg. 209 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

CITY OF EL CENTRO

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2021
(Continued)
Assets
Cash and investments
Receivables:

Taxes
Interest
Grants
Notes
Other
Restricted cash and investments
with fiscal agent
Land held for resale
Total Assets
Liabilities and Fund Balances
Liabilities:

Accounts payable
Deposits
Due to other funds
Total Liabilities
Fund Balances
Restricted
Committed
Unassigned
Total Fund Balances (Deficits)
Total Liabilities and Fund Balances
Special Revenue Funds Capital Projects Funds
Successor
Fire IID Police Agency Cooperative Orange Ave. Park Drainage Mitigation COVID-19 Projects Grant Housing Agreement Regional Lift Development Facility $ 221,253 $ 7,209,042 $ 6,900 $ - $ 762,597 $ - $ 247,725 $ 127,995 $ 272,650 245 564,005 65 1 275 442 403
48,424
4,433,992
92,443 24
59,089
$ 221,498 $ 7,773,047 $ 6,900 $ 140,867 $ 5,255,767 $ 1 $ 248,000 $ 128,437 $ 273,053 $ - $ 137,056 $ 26 $ 545 $ - $ - $ - $ - $ -
21,076
137,056 26 21,621
221,498 7,635,991 6,874 119,246 5,255,767 1
248,000 128,437 273,053

221,498 7,635,991 6,874 119,246 5,255,767 1 248,000 128,437 273,053 $ 221,498 $ 7,773,047 $ 6,900 $ 140,867 $ 5,255,767 $ 1 $ 248,000 $ 128,437 $ 273,053 (Continued)
120

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Packet Pg. 210 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

CITY OF EL CENTRO

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2021
(Continued)
Assets
Cash and investments
Receivables:

Taxes
Interest
Grants
Notes
Other
Restricted cash and investments
with fiscal agent
Land held for resale
Total Assets
Liabilities and Fund Balances
Liabilities:

Accounts payable
Deposits
Due to other funds
Total Liabilities
Fund Balances
Restricted
Committed
Unassigned
Total Fund Balances (Deficits)
Total Liabilities and Fund Balances
Capital Projects Funds
8th St. Federal
EDA Lotus IID Facility Overpass Bridge/Road Highway Library La Brucherie Colonia-El Grant Parallel Crossing Bridge Improvement Administration Project Green Belt Dorado Street $ 180,411 $ 390,813 $ 168,835 $ 19,572 $ 4,660,579 $ - $ - $ 9,227 $ 20,631 200 423 187 22 4,755 9 23
1,003,973

17,405,398

$ 180,611 $ 391,236 $ 169,022 $ 19,594 $ 4,665,334 $ 1,003,973 $ 17,405,398 $ 9,236 $ 20,654 $ - $ - $ - $ - $ - $ 17,015 $ 20,268 $ - $ -
317,400 132,960 15,000 4,343,059
897,493 642,870
317,400 132,960 15,000 4,343,059 914,508 663,138
180,611 16,742,260 89,465 9,236 20,654
73,836 36,062 4,594 322,275

180,611 73,836 36,062 4,594 322,275 16,742,260 89,465 9,236 20,654 $ 180,611 $ 391,236 $ 169,022 $ 19,594 $ 4,665,334 $ 1,003,973 $ 17,405,398 $ 9,236 $ 20,654 (Continued)
121

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Packet Pg. 211 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

CITY OF EL CENTRO

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2021
(Continued)
Assets
Cash and investments
Receivables:

Taxes
Interest
Grants
Notes
Other
Restricted cash and investments
with fiscal agent
Land held for resale
Total Assets
Liabilities and Fund Balances
Liabilities:

Accounts payable
Deposits
Due to other funds
Total Liabilities
Fund Balances
Restricted
Committed
Unassigned
Total Fund Balances (Deficits)
Total Liabilities and Fund Balances
Total
LTA Lease Nonmajor
Revenue Buena Vista Road 2011C Bonds 2011 A & B Financing LTA Lease Governmental Bonds Landscaping Improvement City Projects Authority Revenue Bonds Funds $ 1,148,124 $ 141,874 $ 289,092 $ - $ 610,457 $ - $ 617,579 $ 30,582,176 25 225
1,877 336 1,000 1 7,154 26 600,224
2,049,939
20,601,241
552,151

4,172,550 1,011,229 22,589,177
59,089
$ 1,150,001 $ 142,235 $ 290,092 $ 1 $ 617,611 $ 4,172,550 $ 1,628,834 $ 77,034,222 $ 344,327 $ 8,324 $ - $ - $ 1,585 $ - $ - $ 1,119,820
232,408 5,590,372
2,423,937
344,327 8,324 232,408 1,585 9,134,194
805,674 133,911 57,684 1 616,026 4,172,550 1,628,834 66,232,783 1,667,464
(219)
805,674 133,911 57,684 1 616,026 4,172,550 1,628,834 67,900,028 $ 1,150,001 $ 142,235 $ 290,092 $ 1 $ 617,611 $ 4,172,550 $ 1,628,834 $ 77,034,222 Capital Projects Funds Debt Service Funds
122

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THIS PAGE INTENTIONALLY LEFT BLANK

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Packet Pg. 213 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2021
Transportation Bus Transportation Home Rental Traffic Home Program Gas Tax CDBG Article 8A Shelter Article 3 Program Rehab-HUD Congestion Relief Income Admin Revenues:

Taxes $ - $ - $ - $ - $ - $ - $ - $ - $ -
Intergovernmental 995,713 839,327 111,436 23,000
Charges for services
Fines and forfeitures
Interest 238 7,628 1,491 1,250 878 2,102 (4) 94
Other 6,468
Total Revenues 995,951 846,955 112,927 24,250 7,346 2,102 (4) 94 Expenditures:

Current:

Public safety
Public works 3,000 73,358
Parks and recreation
Community development 18,683 244
Capital outlay 852,000 55,515
Debt Service:

Principal
Interest and fiscal charges
Total Expenditures 3,000 18,683 852,000 128,873 244
Excess (Deficiency) of Revenues
over (Under) Expenditures 992,951 (18,683) (5,045) (15,946) 24,250 7,346 2,102 (4) (150) Other Financing Sources (Uses):

Proceeds from debt issuance
Transfers In
Transfers Out (992,950)
Total Other Financing
Sources (Uses) (992,950)
Net Change in Fund Balances 1 (18,683) (5,045) (15,946) 24,250 7,346 2,102 (4) (150) Fund Balances (Deficits) - July 1, 2020 519 1,413,536 850,553 277,192 197,959 4,104,905 320,674 4 15,421 Fund Balances (Deficits) - June 30, 2021 $ 520 $ 1,394,853 $ 845,508 $ 261,246 $ 222,209 $ 4,112,251 $ 322,776 $ - $ 15,271 (Continued)
Special Revenue Funds
124

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Packet Pg. 214 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

CITY OF EL CENTRO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2021
(Continued)
Revenues:

Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Interest
Other
Total Revenues
Expenditures:

Current:

Public safety
Public works
Parks and recreation
Community development
Capital outlay
Debt Service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
over (Under) Expenditures
Other Financing Sources (Uses):

Proceeds from debt issuance
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficits) - July 1, 2020
Fund Balances (Deficits) - June 30, 2021
Recreation Wake Ave Special Asset Local Transportation Home OTS State COPS Annexation Projects Extension Events Forfeiture Authority Grants Grant SLESF Fees $ - $ - $ - $ - $ - $ - $ - $ - $ -
258,360 3,169,283 4,527,700 4,762 327,517

10,062
2,127 2,943 23,916 333 398 2,932 742
36 258,360 2,127 36 13,005 3,193,199 4,528,033 5,160 330,449 742 59,435 4,762 104,919
110,145
37 35,500
248,377 29,791 1,909,649

248,377 37 89,226 2,019,794 35,500 4,762 104,919
9,983 2,127 (1) (76,221) 1,173,405 4,492,533 398 225,530 742

(1,385,625)
(1,385,625)
9,983 2,127 (1) (76,221) (212,220) 4,492,533 398 225,530 742 3,231 324,309 6 507,254 3,753,973 4,342,813 60,665 282,736 112,969 $ 13,214 $ 326,436 $ 5 $ 431,033 $ 3,541,753 $ 8,835,346 $ 61,063 $ 508,266 $ 113,711 (Continued)
Special Revenue Funds
125

7.a
Packet Pg. 215 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

CITY OF EL CENTRO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2021
(Continued)
Revenues:

Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Interest
Other
Total Revenues
Expenditures:

Current:

Public safety
Public works
Parks and recreation
Community development
Capital outlay
Debt Service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
over (Under) Expenditures
Other Financing Sources (Uses):

Proceeds from debt issuance
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficits) - July 1, 2020
Fund Balances (Deficits) - June 30, 2021
Integrated
HUD Entitlement CDBG CDBG Housing Enabled CALHOME Development FHWA Waste Program Program Income COVID-19 by Local Partnership Program Impact Fee Grants Management $ - $ - $ - $ - $ - $ - $ - $ -
504,716 52,818
535,418
3,980 278 2,158 956 26,643 425
(44,865) 13,457 8,678
463,831 13,735 52,818 2,158 9,634 562,061 425

256,694 14,764 23,054 75,134
377,628 198,568

634,322 14,764 23,054 75,134 198,568
(170,491) (1,029) 29,764 2,158 (65,500) 363,493 425

(170,491) (1,029) 29,764 2,158 (65,500) 363,493 425
1,682,112 629,762 513,016 893,163 3,466,820 64,938 (219) $ 1,511,621 $ 628,733 $ 29,764 $ 515,174 $ 827,663 $ 3,830,313 $ 65,363 $ (219) (Continued)
Special Revenue Funds
126

7.a
Packet Pg. 216 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

CITY OF EL CENTRO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2021
(Continued)
Revenues:

Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Interest
Other
Total Revenues
Expenditures:

Current:

Public safety
Public works
Parks and recreation
Community development
Capital outlay
Debt Service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
over (Under) Expenditures
Other Financing Sources (Uses):

Proceeds from debt issuance
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficits) - July 1, 2020
Fund Balances (Deficits) - June 30, 2021
Town Center Police & 7th and Legacy Ranch
Lighting and I-8 Imperial EDA Fire State Bus Lighting and Landscape District Ave Overpass Revolving Mitigation Terminal Landscape District IV Commons $ 12,001 $ - $ - $ - $ - $ 24,703 $ -

213 4,092 141 3,060 229 473

12,214 4,092 141 3,060 24,932 473

14,783

35,049

14,783 35,049
(2,569) 4,092 141 3,060 (10,117) 473

(5,550) (3,500)
(5,550) (3,500)
(8,119) 4,092 141 3,060 (13,617) 473
37,505 136,968 21,752 466,953 1 44,108 10,298
$ 29,386 $ 141,060 $ 21,893 $ 470,013 $ 1 $ 30,491 $ 10,771 (Continued)
Special Revenue Funds
127

7.a
Packet Pg. 217 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

CITY OF EL CENTRO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2021
(Continued)
Revenues:

Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Interest
Other
Total Revenues
Expenditures:

Current:

Public safety
Public works
Parks and recreation
Community development
Capital outlay
Debt Service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
over (Under) Expenditures
Other Financing Sources (Uses):

Proceeds from debt issuance
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficits) - July 1, 2020
Fund Balances (Deficits) - June 30, 2021
Special Revenue Funds
Successor
Fire IID Police Agency Cooperative Orange Ave. Park Drainage Mitigation COVID-19 Project Grant Housing Agreement Regional Lift Development Facility $ - $ - $ - $ - $ - $ - $ - $ - $ -
11,343,714 115,352
6,205
1,444 1,737 43 27 63 1,616 836 1,738
65 11,345,451 1,444 43 115,379 128 1,616 836 7,943
214,797 77,436

3,258,815 16,293
3,473,612 93,729
1,444 7,871,839 43 21,650 128 1,616 836 7,943

1,444 7,871,839 43 21,650 128 1,616 836 7,943
220,054 (235,848) 6,831 97,596 5,255,639 1 246,384 127,601 265,110 $ 221,498 $ 7,635,991 $ 6,874 $ 119,246 $ 5,255,767 $ 1 $ 248,000 $ 128,437 $ 273,053 (Continued)
Capital Project Funds
128

7.a
Packet Pg. 218 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

CITY OF EL CENTRO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2021
(Continued)
Revenues:

Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Interest
Other
Total Revenues
Expenditures:

Current:

Public safety
Public works
Parks and recreation
Community development
Capital outlay
Debt Service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
over (Under) Expenditures
Other Financing Sources (Uses):

Proceeds from debt issuance
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficits) - July 1, 2020
Fund Balances (Deficits) - June 30, 2021
EDA Lotus IID Facility 8th St. Overpass Bridge/Road Federal Highway Library La Brucherie Colonia-El Grant Parallel Crossing Bridge Improvement Administration Project Green Belt Dorado Street $ - $ - $ - $ - $ - $ - $ - $ - $ -
1,196,792
1,176 2,549 1,099 128 29,821 61 134

1,176 2,549 1,099 128 29,821 1,196,792 61 134

1,199,002 663,137
376,438
1,199,002 1,039,575
1,176 2,549 1,099 128 29,821 (2,210) (1,039,575) 61 134 17,781,835

17,781,835
1,176 2,549 1,099 128 29,821 (2,210) 16,742,260 61 134
179,435 71,287 34,963 4,466 292,454 91,675 9,175 20,520 $ 180,611 $ 73,836 $ 36,062 $ 4,594 $ 322,275 $ 89,465 $ 16,742,260 $ 9,236 $ 20,654 (Continued)
Capital Project Funds
129

7.a
Packet Pg. 219 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

CITY OF EL CENTRO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2021
(Continued)
Revenues:

Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Interest
Other
Total Revenues
Expenditures:

Current:

Public safety
Public works
Parks and recreation
Community development
Capital outlay
Debt Service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
over (Under) Expenditures
Other Financing Sources (Uses):

Proceeds from debt issuance
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficits) - July 1, 2020
Fund Balances (Deficits) - June 30, 2021
Total
Nonmajor
LTA Lease Buena Vista Road 2011C Bonds 2011 A & B Financing LTA Lease Governmental Revenue Bonds Landscaping Improvement City Projects Authority Revenue Bonds Funds $ - $ 4,635 $ - $ - $ - $ - $ - $ 41,339
269,296 23,739,786
541,623
10,062
6,834 1,051 2,015 4,414 12,209 44,125 202,836
28,102 11,941
276,130 5,686 2,015 32,516 12,209 44,125 24,547,587
461,349
5,720 207,006
37 55,639 154 514,915
392,757 74,836 9,276,368
840,000 550,000 1,390,000
265,001 812,625 1,454,064
398,477 55,639 154 74,836 1,105,001 1,362,625 13,303,739 (122,347) (49,953) 2,015 (154) (42,320) (1,092,792) (1,318,500) 11,243,848 17,781,835
1,362,625 1,362,625
(3,500) (2,391,125)
(3,500) 1,362,625 16,753,335
(122,347) (53,453) 2,015 (154) (42,320) (1,092,792) 44,125 27,997,183 928,021 187,364 55,669 155 658,346 5,265,342 1,584,709 39,902,845 $ 805,674 $ 133,911 $ 57,684 $ 1 $ 616,026 $ 4,172,550 $ 1,628,834 $ 67,900,028 Capital Project Funds Debt Service Funds
130

7.a
Packet Pg. 220 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial

Schedules of Revenues, Expenditures and
Changes in Fund Balances – Budget and
Actual for the Fiscal Year June 30, 2021

CITY OF EL CENTRO

7.a
Packet Pg. 221 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 1,139,858 $ 995,713 $ (144,145)
Interest 500 238 (262)
Total Revenues 1,140,358 995,951 (144,407)
Expenditures:

Current:

Public Works 3,000 3,000
Total Expenditures 3,000 3,000
Excess (Deficiency) of
Revenues Over (Under)
Expenditures 1,137,358 992,951 (144,407)
Other Financing Sources (Uses)
Transfers Out (1,143,374) (992,950) 150,424
Total Other
Financing Sources (Uses) (1,143,374) (992,950) 150,424
Net Change in Fund Balance (6,016) 1 6,017
Fund Balance - July 1 519 519
Fund Balance - June 30 $ (5,497) $ 520 $ 6,017
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

GAS TAX SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
131

7.a
Packet Pg. 222 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 750,000 $ 839,327 $ 89,327
Interest 1,000 7,628 6,628
Total Revenue 751,000 846,955 95,955
Expenditures:

Capital Outlay 1,602,000 852,000 750,000
Total Expenditures 1,602,000 852,000 750,000
Net Change in Fund Balance (851,000) (5,045) 845,955
Fund Balance - July 1 850,553 850,553
Fund Balance - June 30 $ (447) $ 845,508 $ 845,955
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO
TRANSPORTATION ARTICLE 8A SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
132

7.a
Packet Pg. 223 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 88,750 $ 111,436 $ 22,686
Interest 1,500 1,491 (9)
Total Revenues 90,250 112,927 22,677
Expenditures:

Current:

Public Works 117,900 73,358 44,542
Capital Outlay 37,000 55,515 (18,515)
Total Expenditures 154,900 128,873 26,027
Net Change in Fund Balance (64,650) (15,946) 48,704
Fund Balance - July 1 277,192 277,192
Fund Balance - June 30 $ 212,542 $ 261,246 $ 48,704
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

BUS SHELTER SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
133

7.a
Packet Pg. 224 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 37,000 $ 23,000 $ (14,000)
Interest 500 1,250 750
Total Revenues 37,500 24,250 (13,250)
Net Change in Fund Balance 37,500 24,250 (13,250)
Fund Balance - July 1 197,959 197,959
Fund Balance - June 30 $ 235,459 $ 222,209 $ (13,250)
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO
TRANSPORTATION ARTICLE 3 SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
134

7.a
Packet Pg. 225 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 400 $ 878 $ 478
Other 3,000 6,468 3,468
Total Revenues 3,400 7,346 3,946
Expenditures:

Current:

Community Development 130,000 130,000
Total Expenditures 130,000 130,000
Net Change in Fund Balance (126,600) 7,346 133,946
Fund Balance - July 1 4,104,905 4,104,905
Fund Balance - June 30 $ 3,978,305 $ 4,112,251 $ 133,946 For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

HOME PROGRAM SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
135

7.a
Packet Pg. 226 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 1,850 $ 2,102 $ 252
Total Revenues 1,850 2,102 252
Expenditures:

Current: .

Community Development 280,000 280,000
Total Expenditures 280,000 280,000
Net Change in Fund Balance (278,150) 2,102 280,252
Fund Balance - July 1 320,674 320,674
Fund Balance - June 30 $ 42,524 $ 322,776 $ 280,252
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

RENTAL REHAB - HUD SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
136

7.a
Packet Pg. 227 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 100 $ (4) $ (104)
Total Revenues 100 (4) (104)
Net Change in Fund Balance 100 (4) (104)
Fund Balance - July 1 4 4
Fund Balance - June 30 $ 104 $ - $ (104)
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

TRAFFIC CONGESTION RELIEF SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
137

7.a
Packet Pg. 228 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 900 $ - $ (900)
Interest 70 94 24
Total Revenues 970 94 (876)
Expenditures:

Current:

Community Development 12,000 244 11,756
Total Expenditures 12,000 244 11,756
Net Change in Fund Balance (11,030) (150) 10,880
Fund Balance - July 1 15,421 15,421
Fund Balance - June 30 $ 4,391 $ 15,271 $ 10,880

CITY OF EL CENTRO

HOME PROGRAM INCOME ADMIN SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
138

7.a
Packet Pg. 229 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 1,024,760 $ 258,360 $ (766,400)
Total Revenues 1,024,760 258,360 (766,400)
Expenditures:

Capital outlay 1,024,760 248,377 776,383
Total Expenditures 1,024,760 248,377 776,383
Net Change in Fund Balance 9,983 9,983
Fund Balance - July 1 3,231 3,231
Fund Balance - June 30 $ 3,231 $ 13,214 $ 9,983

CITY OF EL CENTRO

RECREATION PROJECTS SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
139

7.a
Packet Pg. 230 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 1,900 $ 2,127 $ 227
Total Revenues 1,900 2,127 227
Net Change in Fund Balance 1,900 2,127 227
Fund Balance - July 1 324,309 324,309
Fund Balance - June 30 $ 326,209 $ 326,436 $ 227
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

WAKE AVE EXTENSION SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
140

7.a
Packet Pg. 231 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Other $ 10,000 $ 36 $ (9,964)
Total Revenues 10,000 36 (9,964)
Expenditures:

Current:

Parks and Recreation 10,000 37 9,963
Total Expenditures 10,000 37 9,963
Net Change in Fund Balance (1) (1)
Fund Balance - July 1 6 6
Fund Balance - June 30 $ 6 $ 5 $ (1)
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

SPECIAL EVENTS SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
141

7.a
Packet Pg. 232 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Fines and Forfeitures $ - $ 10,062 $ 10,062
Interest 20 2,943 2,923
Total Revenues 20 13,005 12,985
Expenditures:

Current:

Public Safety 25,000 59,435 (34,435)
Capital Outlay 29,791 (29,791)
Total Expenditures 25,000 89,226 (64,226)
Net Change in Fund Balance (24,980) (76,221) (51,241)
Fund Balance - July 1 507,254 507,254
Fund Balance - June 30 $ 482,274 $ 431,033 $ (51,241)
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

ASSET FORFEITURE SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
142

7.a
Packet Pg. 233 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 2,900,000 $ 3,169,283 $ 269,283
Interest 15,000 23,916 8,916
Total Revenues 2,915,000 3,193,199 278,199
Expenditures:

Current:

Public Works 60,000 110,145 (50,145)
Capital Outlay 5,265,000 1,909,649 3,355,351
Total Expenditures 5,325,000 2,019,794 3,305,206
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,410,000) 1,173,405 3,583,405 Other Financing Sources (Uses):

Transfers Out (1,386,605) (1,385,625) 980
Total Other Financing
Sources (Uses) (1,386,605) (1,385,625) 980
Net Change in Fund Balance (3,796,605) (212,220) 3,584,385 Fund Balance - July 1 3,753,973 3,753,973
Fund Balance - June 30 $ (42,632) $ 3,541,753 $ 3,584,385 For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

LOCAL TRANSPORTATION AUTHORITY SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
143

7.a
Packet Pg. 234 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 4,527,700 - $ $ 4,527,700
Interest 300 333 33
Total Revenues 300 4,528,033 4,527,733
Expenditures:

Current:

Community Development 35,500 (35,500)
Total Expenditures 35,500 (35,500)
Net Change in Fund Balance 300 4,492,533 4,492,233
Fund Balance - July 1 4,342,813 4,342,813
Fund Balance - June 30 $ 4,343,113 $ 8,835,346 $ 4,492,233 For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

HOME GRANTS SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
144

7.a
Packet Pg. 235 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 12,499 $ 4,762 $ (7,737)
Interest 398 398
Total Revenues 12,499 5,160 (7,339)
Expenditures:

Current:

Public Safety 12,499 4,762 7,737
Total Expenditures 12,499 4,762 7,737
Net Change in Fund Balance 398 398
Fund Balance - July 1 60,665 60,665
Fund Balance - June 30 $ 60,665 $ 61,063 $ 398
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

OTS GRANT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
145

7.a
Packet Pg. 236 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 100,000 $ 327,517 $ 227,517
Interest 2,000 2,932 932
Total Revenues 102,000 330,449 228,449
Expenditures:

Current:

Public Safety 180,096 104,919 75,177
Total Expenditures 180,096 104,919 75,177
Net Change in Fund Balance (78,096) 225,530 303,626
Fund Balance - July 1 282,736 282,736
Fund Balance - June 30 $ 204,640 $ 508,266 $ 303,626
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

STATE COPS SLESF SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
146

7.a
Packet Pg. 237 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 550 $ 742 $ 192
Total Revenues 550 742 192
Net Change in Fund Balance 550 742 192
Fund Balance - July 1 112,969 112,969
Fund Balance - June 30 $ 113,519 $ 113,711 $ 192
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

ANNEXATION FEES SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
147

7.a
Packet Pg. 238 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 564,207 $ 504,716 $ (59,491)
Interest 2,500 3,980 1,480
Other (44,865) (44,865)
Total Revenues 566,707 463,831 (102,876)
Expenditures:

Current:

Community Development 436,528 256,694 179,834
Capital Outlay 130,179 377,628 (247,449)
Total Expenditures 566,707 634,322 (67,615)
Net Change in Fund Balance (170,491) (170,491)
Fund Balance - July 1 1,682,112 1,682,112
Fund Balance - June 30 $ 1,682,112 $ 1,511,621 $ (170,491) For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

HUD ENTITLEMENT PROGRAM SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
148

7.a
Packet Pg. 239 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 800 $ 278 $ (522)
Other 14,000 13,457 (543)
Total Revenues 14,800 13,735 (1,065)
Expenditures:

Current:

Community Development 14,559 14,764 (205)
Capital Outlay 19,500 19,500
Total Expenditures 34,059 14,764 19,295
Net Change in Fund Balance (19,259) (1,029) 18,230
Fund Balance - July 1 629,762 629,762
Fund Balance - June 30 $ 610,503 $ 628,733 $ 18,230
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

CDBG PROGRAM INCOME SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
149

7.a
Packet Pg. 240 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 2,400 $ 2,158 $ (242)
Total Revenues 2,400 2,158 (242)
Expenditures:

Current:

Community Development 100,000 100,000
Total Expenditures 100,000 100,000
Net Change in Fund Balance (97,600) 2,158 99,758
Fund Balance - July 1 513,016 513,016
Fund Balance - June 30 $ 415,416 $ 515,174 $ 99,758
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

HOUSING ENABLED BY LOCAL PARTNERSHIP SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
150

7.a
Packet Pg. 241 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 400 $ 956 $ 556
Other 8,678 8,678
Total Revenues 400 9,634 9,234
Expenditures:

Current:

Community Development 51,250 75,134 (23,884)
Total Expenditures 51,250 75,134 (23,884)
Net Change in Fund Balance (50,850) (65,500) (14,650)
Fund Balance - July 1 893,163 893,163
Fund Balance - June 30 $ 842,313 $ 827,663 $ (14,650)
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

CALHOME PROGRAM SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
151

7.a
Packet Pg. 242 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Charges for services $ 671,000 $ 535,418 $ (135,582)
Interest 21,830 26,643 4,813
Total Revenues 692,830 562,061 (130,769)
Expenditures:

Capital Outlay 1,875,000 198,568 1,676,432
Total Expenditures 1,875,000 198,568 1,676,432
Net Change in Fund Balance (1,182,170) 363,493 1,545,663 Fund Balance - July 1 3,466,820 3,466,820
Fund Balance - June 30 $ 2,284,650 $ 3,830,313 $ 1,545,663 For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

DEVELOPMENT IMPACT FEE SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
152

7.a
Packet Pg. 243 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 350 $ 425 $ 75
Total Revenues 350 425 75
Net Change in Fund Balance 350 425 75
Fund Balance - July 1 64,938 64,938
Fund Balance - June 30 $ 65,288 $ 65,363 $ 75
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

FHWA GRANTS SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
153

7.a
Packet Pg. 244 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Taxes $ 12,000 $ 12,001 $ 1
Interest 100 213 113
Total Revenues 12,100 12,214 114
Expenditures:

Current:

Public Works 23,250 14,783 8,467
Total Expenditures 23,250 14,783 8,467
Excess (Deficiency) of
Revenues Over (Under)
Expenditures (11,150) (2,569) 8,581
Other Financing Sources (Uses)
Transfers Out (5,550) (5,550)
Total Other
Financing Sources (Uses) (5,550) (5,550)
Net Change in Fund Balance (16,700) (8,119) 8,581
Fund Balance - July 1 37,505 37,505
Fund Balance - June 30 $ 20,805 $ 29,386 $ 8,581

CITY OF EL CENTRO

TOWN CENTER LIGHTING AND LANDSCAPE DISTRICT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
154

7.a
Packet Pg. 245 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 3,000 $ 4,092 $ 1,092
Total Revenues 3,000 4,092 1,092
Net Change in Fund Balance 3,000 4,092 1,092
Fund Balance - July 1 136,968 136,968
Fund Balance - June 30 $ 139,968 $ 141,060 $ 1,092

CITY OF EL CENTRO
I-8 IMPERIAL AVE OVERPASS SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
155

7.a
Packet Pg. 246 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 700 $ 141 $ (559)
Total Revenues 700 141 (559)
Expenditures:

Current:

Community Development 85,400 85,400
Total Expenditures 85,400 85,400
Net Change in Fund Balance (84,700) 141 84,841
Fund Balance - July 1 21,752 21,752
Fund Balance - June 30 $ (62,948) $ 21,893 $ 84,841
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

EDA REVOLVING SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
156

7.a
Packet Pg. 247 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 2,500 $ 3,060 $ 560
Total Revenues 2,500 3,060 560
Net Change in Fund Balance 2,500 3,060 560
Fund Balance - July 1 466,953 466,953
Fund Balance - June 30 $ 469,453 $ 470,013 $ 560
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

POLICE & FIRE MITIGATION SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
157

7.a
Packet Pg. 248 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Taxes $ 24,776 $ 24,703 $ (73)
Interest 1,000 229 (771)
Total Revenues 25,776 24,932 (844)
Expenditures:

Current:

Community Development 46,080 35,049 11,031
Total Expenditures 46,080 35,049 11,031
Excess (Deficiency) of
Revenues Over (Under) Expenditures (20,304) (10,117) 10,187 Other Financing Sources (Uses)
Transfers Out (3,500) (3,500)
Total Other
Financing Sources (Uses) (3,500) (3,500)
Net Change in Fund Balance (23,804) (13,617) 10,187
Fund Balance - July 1 44,108 44,108
Fund Balance - June 30 $ 20,304 $ 30,491 $ 10,187
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

LEGACY RANCH LIGHTING AND LANDSCAPING DISTRICT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
158

7.a
Packet Pg. 249 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 200 $ 473 $ 273
Total Revenues 200 473 273
Expenditures:

Current:

Community Development 1,000 1,000
Total Expenditures 1,000 1,000
Net Change in Fund Balance (800) 473 1,273
Fund Balance - July 1 10,298 10,298
Fund Balance - June 30 $ 9,498 $ 10,771 $ 1,273
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

IV COMMONS SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
159

7.a
Packet Pg. 250 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 1,500 $ 1,444 $ (56)
Total Revenues 1,500 1,444 (56)
Net Change in Fund Balance 1,500 1,444 (56)
Fund Balance - July 1 220,054 220,054
Fund Balance - June 30 $ 221,554 $ 221,498 $ (56)
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

FIRE MITIGATION SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
160

7.a
Packet Pg. 251 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 11,343,714 - $ $ 11,343,714
Interest 1,737 1,737
Total Revenue 11,345,451 11,345,451
Expenditures:

Current:

Community development 40,000 214,797 (174,797)
Capital Outlay 3,258,815 (3,258,815)
Total Expenditures 40,000 3,473,612 (3,433,612)
Net Change in Fund Balance (40,000) 7,871,839 7,911,839 Fund Balance (Deficit) - July 1 (235,848) (235,848)
Fund Balance (Deficit) - June 30 $ (275,848) $ 7,635,991 $ 7,911,839

CITY OF EL CENTRO
COVID-19 SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
161

7.a
Packet Pg. 252 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 10 $ 43 $ 33
Other 1,500 (1,500)
Total Revenues 1,510 43 (1,467)
Net Changes in Fund Balance 1,510 43 (1,467)
Fund Balance - July 1 6,831 6,831
Fund Balance - June 30 $ 8,341 $ 6,874 $ (1,467)

CITY OF EL CENTRO

IID PROJECT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
162

7.a
Packet Pg. 253 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 106,500 $ 115,352 $ 8,852
Interest 50 27 (23)
Total Revenues 106,550 115,379 8,829
Current:

Public Safety 59,500 77,436 (17,936)
Capital Outlay 129,500 16,293 113,207
Total Expenditures 189,000 93,729 95,271
Net Changes in Fund Balance (82,450) 21,650 104,100
Fund Balance - July 1 97,596 97,596
Fund Balance - June 30 $ 15,146 $ 119,246 $ 104,100

CITY OF EL CENTRO

POLICE GRANT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
Expenditures:
163

7.a
Packet Pg. 254 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 2,000 $ 63 $ (1,937)
Other 3,570 65 (3,505)
Total Revenues 5,570 128 (5,442)
Net Changes in Fund Balance 5,570 128 (5,442)
Fund Balance - July 1 5,255,639 5,255,639
Fund Balance - June 30 $ 5,261,209 $ 5,255,767 $ (5,442)

CITY OF EL CENTRO

SUCCESSOR AGENCY HOUSING SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
164

7.a
Packet Pg. 255 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 5 $ - $ (5)
Total Revenues 5 (5)
Net Changes in Fund Balance 5 (5)
Fund Balance - July 1 1 1
Fund Balance - June 30 $ 6 $ 1 $ (5)

CITY OF EL CENTRO

COOPERATIVE AGREEMENT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
165

7.a
Packet Pg. 256 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 1,000 $ 1,616 $ 616
Total Revenues 1,000 1,616 616
Net Change in Fund Balance 1,000 1,616 616
Fund Balance - July 1 246,384 246,384
Fund Balance - June 30 $ 247,384 $ 248,000 $ 616
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

ORANGE AVE REGIONAL LIFT CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
166

7.a
Packet Pg. 257 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 650 $ 836 $ 186
Total Revenues 650 836 186
Net Change in Fund Balance 650 836 186
Fund Balance - July 1 127,601 127,601
Fund Balance - June 30 $ 128,251 $ 128,437 $ 186
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

PARK DEVELOPMENT CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
167

7.a
Packet Pg. 258 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Charges for Services $ - $ 6,205 $ 6,205
Interest 15,000 1,738 (13,262)
Total Revenues 15,000 7,943 (7,057)
Net Change in Fund Balance 15,000 7,943 (7,057)
Fund Balance - July 1 265,110 265,110
Fund Balance - June 30 $ 280,110 $ 273,053 $ (7,057)
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

DRAINAGE FACILITY CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
168

7.a
Packet Pg. 259 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 2,000 $ 2,549 $ 549
Total Revenues 2,000 2,549 549
Net Change in Fund Balance 2,000 2,549 549
Fund Balance - July 1 71,287 71,287
Fund Balance - June 30 $ 73,287 $ 73,836 $ 549
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

LOTUS PARALLEL CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
169

7.a
Packet Pg. 260 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 900 $ 1,099 $ 199
Total Revenues 900 1,099 199
Net Change in Fund Balance 900 1,099 199
Fund Balance - July 1 34,963 34,963
Fund Balance - June 30 $ 35,863 $ 36,062 $ 199
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

IID FACILITY CROSSING CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
170

7.a
Packet Pg. 261 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 90 $ 128 $ 38
Total Revenues 90 128 38
Net Change in Fund Balance 90 128 38
Fund Balance - July 1 4,466 4,466
Fund Balance - June 30 $ 4,556 $ 4,594 $ 38
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO
8TH STREET OVERPASS BRIDGE CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
171

7.a
Packet Pg. 262 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 26,000 $ 29,821 $ 3,821
Total Revenues 26,000 29,821 3,821
Net Change in Fund Balance 26,000 29,821 3,821
Fund Balance - July 1 292,454 292,454
Fund Balance - June 30 $ 318,454 $ 322,275 $ 3,821
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

BRIDGE/ROAD IMPROVEMENT CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
172

7.a
Packet Pg. 263 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 2,624,000 $ 1,196,792 $ (1,427,208) Total Revenues 2,624,000 1,196,792 (1,427,208)
Expenditures:

Capital Outlay 2,624,000 1,199,002 1,424,998
Total Expenditures 2,624,000 1,199,002 1,424,998
Net Change in Fund Balance (2,210) (2,210)
Fund Balance - July 1 91,675 91,675
Fund Balance - June 30 $ 91,675 $ 89,465 $ (2,210)
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

FEDERAL HIGHWAY ADMINISTRATION CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
173

7.a
Packet Pg. 264 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 40 $ 61 $ 21
Total Revenues 40 61 21
Net Change in Fund Balance 40 61 21
Fund Balance - July 1 9,175 9,175
Fund Balance - June 30 $ 9,215 $ 9,236 $ 21
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

LA BRUCHERIE GREEN BELT CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
174

7.a
Packet Pg. 265 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 90 $ 134 $ 44
Total Revenues 90 134 44
Net Change in Fund Balance 90 134 44
Fund Balance - July 1 20,520 20,520
Fund Balance - June 30 $ 20,610 $ 20,654 $ 44
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

COLONIA EL DORADO STREET CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
175

7.a
Packet Pg. 266 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Intergovernmental $ 272,200 $ 269,296 $ (2,904)
Interest 5,000 6,834 1,834
Total Revenues 277,200 276,130 (1,070)
Expenditures:

Current:

Public Works 7,600 5,720 1,880
Capital Outlay 392,757 (392,757)
Total Expenditures 7,600 398,477 (390,877)
Net Change in Fund Balance 269,600 (122,347) (391,947)
Fund Balance - July 1 928,021 928,021
Fund Balance - June 30 $ 1,197,621 $ 805,674 $ (391,947)

CITY OF EL CENTRO

LTA LEASE REVENUE BONDS CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
176

7.a
Packet Pg. 267 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Taxes $ 4,650 $ 4,635 $ (15)
Interest 1,000 1,051 51
Total Revenues 5,650 5,686 36
Expenditures:

Current:

Community Development 83,200 55,639 27,561
Total Expenditures 83,200 55,639 27,561
Excess (Deficiency) of
Revenues Over (Under)
Expenditures (77,550) (49,953) 27,597
Other Financing Sources (Uses)
Transfers Out (3,500) (3,500)
Total Other
Financing Sources (Uses) (3,500) (3,500)
Net Change in Fund Balance (81,050) (53,453) 27,597
Fund Balance - July 1 187,364 187,364
Fund Balance - June 30 $ 106,314 $ 133,911 $ 27,597
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO

BUENA VISTA LANDSCAPING AND LIGHTING DISTRICT CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
177

7.a
Packet Pg. 268 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 1,900 $ 2,015 $ 115
Total Revenues 1,900 2,015 115
Net Change in Fund Balance 1,900 2,015 115
Fund Balance - July 1 55,669 55,669
Fund Balance - June 30 $ 57,569 $ 57,684 $ 115

CITY OF EL CENTRO

ROAD IMPROVEMENT CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
178

7.a
Packet Pg. 269 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Expenditures:

Current:

Community Development $ 154 $ 154 $ -
Total Expenditures 154 154
Net Change in Fund Balance (154) (154)
Fund Balance - July 1 155 155
Fund Balance - June 30 $ 1 $ 1 $ -

CITY OF EL CENTRO
2011C BONDS CITY CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
179

7.a
Packet Pg. 270 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Positive
Budget Actual (Negative)
Revenues:

Interest $ 10,000 $ 4,414 $ (5,586)
Other 28,102 28,102
Total Revenues 10,000 32,516 22,516
Expenditures:

Capital outlay 75,000 74,836 164
Total Expenditures 75,000 74,836 164
Net Change in Fund Balance (65,000) (42,320) 22,680
Fund Balance - July 1 658,346 658,346
Fund Balance - June 30 $ 593,346 $ 616,026 $ 22,680

CITY OF EL CENTRO

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
2011 A & B PROJECTS CAPITAL PROJECTS FUND
For the Fiscal Year Ended June 30, 2021
180

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Packet Pg. 271 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 14,000 $ 44,125 $ 30,125
Total Revenues 14,000 44,125 30,125
Expenditures:

Debt Service:

Principal 550,000 550,000
Interest and Fiscal Charges 813,605 812,625 980
Total Expenditures 1,363,605 1,362,625 980
Excess (Deficiency) of
Revenues Over (Under)
Expenditures (1,349,605) (1,318,500) 31,105
Other Financing Sources (Uses)
Transfers In 1,363,605 1,362,625 (980)
Total Other
Financing Sources (Uses) 1,363,605 1,362,625 (980)
Net Change in Fund Balance 14,000 44,125 30,125
Fund Balance - July 1 1,584,709 1,584,709
Fund Balance - June 30 $ 1,598,709 $ 1,628,834 $ 30,125

CITY OF EL CENTRO

LTA LEASE REVENUE BONDS DEBT SERVICE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
181

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Packet Pg. 272 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Variance
Final Actual Positive
Budget Amount (Negative)
Revenues:

Interest $ 15,000 $ 12,209 $ (2,791)
Total Revenues 15,000 12,209 (2,791)
Expenditures:

Debt Service:

Principal 840,000 840,000
Interest and Fiscal Charges 267,511 265,001 2,510
Total Expenditures 1,107,511 1,105,001 2,510
Net Change in Fund Balance (1,092,511) (1,092,792) (281) Fund Balance - July 1 5,265,342 5,265,342
Fund Balance - June 30 $ 4,172,831 $ 4,172,550 $ (281)

CITY OF EL CENTRO

FINANCING AUTHORITY DEBT SERVICE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
182

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Packet Pg. 273 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

183

COMBINING STATEMENTS

NONMAJOR PROPRIETARY FUND

PROPRIETARY FUNDS
Proprietary funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - for these funds, it is the intent of the City Council that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.

Solid Waste - This fund is used to account for revenue and expenditures associated with the collection and disposal of solid waste.

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Packet Pg. 274 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NONMAJOR PROPRIETARY FUND

STATEMENT OF NET POSITION
June 30, 2021
Solid
Waste
Assets:

Current Assets:

Cash and Investments $ 137,989
Receivables
Accounts Receivable (Net of
Allowance for Uncollectibles) 306,819
Interest Receivable 345
Total Current Assets 445,153
Total Assets 445,153
Liabilities:

Current Liabilities:

Accounts Payable 255,514
Due to Other Funds 85,830
Total Current Liabilities 341,344
Total Liabilities 341,344
Net Position:

Unrestricted 103,809
Net Position $ 103,809

184

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Packet Pg. 275 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NONMAJOR PROPRIETARY FUND

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2021
Solid
Waste
Operating Revenues
Charges for Services $ 2,063,322
Total Operating Revenues 2,063,322
Operating Expenses
Supplies and Services 1,861,076
General and Administrative 206,091
Total Operating Expenses 2,067,167
Operating Income (Loss) (3,845)
Non-Operating Revenues (Expenses)
Interest Revenue 1,241
Total Non-Operating Revenues (Expenses) 1,241
Change in Net Position (2,604)
Net Position - Beginning of Fiscal Year 106,413
Net Position - End of Fiscal Year $ 103,809
185

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Packet Pg. 276 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

NONMAJOR PROPRIETARY FUND

STATEMENT OF CASH FLOWS
For the Fiscal Year Ended June 30, 2021
Solid
Waste
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash Received from Users $ 2,064,830
Cash Payments to Suppliers and Contractors (1,862,380)
Cash Payments for General and Administrative Expenses (206,091) Net Cash Provided (Used) By Operating Activities (3,641) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest Received 1,241
Net Cash Provided (Used) by Investing Activities 1,241

NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (2,400)
CASH AND CASH EQUIVALENTS, BEGINNING OF FISCAL YEAR 140,389 CASH AND CASH EQUIVALENTS, END OF FISCAL YEAR $ 137,989

Reconciliation to Statement of Net Position:

Cash and Cash Equivalents $ 137,989
CASH FLOWS FROM OPERATING ACTIVITIES:

Operating Income (Loss) $ (3,845)
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable 1,508
Increase (Decrease) in Accounts Payable and Accrued Liabilities (1,304) Total Adjustments 204
Net Cash Provided (Used) By Operating Activities $ (3,641) 186

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Packet Pg. 277 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

187

INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost reimbursement basis.

Workers' Compensation - This fund is used to account for the revenue and expenses associated with providing Workers' Compensation benefits.

Post Employment Benefits - This fund is used to account for the revenue and expenses associated with providing unemployment benefits.

Group Health Insurance - This fund is used to account for the revenue and expenses associated with providing group health benefits.

Motor Vehicle - This fund is used to account for costs of operating and maintaining automotive equipment used by City departments.

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Packet Pg. 278 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Post
Workers' Employment Group Health
Compensation Benefits Insurance Motor Vehicle
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES:

Assets:

Cash and Investments $ 2,645,349 $ 533,748 $ 3,996,266 $ 409,889 $ 7,585,252 Account Receivable 24,112 24,112
Other Receivable 3,255 951 4,206
Interest Receivable 5,027 1,848 2,765 408 10,048
Total Assets 2,653,631 535,596 4,024,094 410,297 7,623,618 Deferred outflows of resources:

Pension related 62,775 62,775
Total Deferred Outflows of Resources 62,775 62,775
LIABILITIES AND DEFERRED INFLOWS OF RESOURCES:

Liabilities:

Accounts Payable 585,011 79,704 40,856 705,571
Unearned revenue 24,112 24,112
Net Pension Liability 383,550 383,550
Total Liabilities 609,123 79,704 426,019 1,114,846
Deferred inflows of resources:

Pension related 6,337 6,337
Total Deferred Inflow of Resources 6,337 6,337

NET POSITION
Unrestricted 2,573,927 535,596 3,414,971 40,716 6,565,210 Total Net Position $ 2,573,927 $ 535,596 $ 3,414,971 $ 40,716 $ 6,565,210

CITY OF EL CENTRO

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2021
Totals
188

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Packet Pg. 279 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Post
Workers' Employment Group Health
Compensation Benefits Insurance Motor Vehicle
Operating Revenues:

Charges for Services $ 1,692,883 $ 344,958 $ 3,654,418 $ 474,500 $ 6,166,759 Other 144,848 489,595 634,443
Total Operating Revenues 1,837,731 344,958 4,144,013 474,500 6,801,202 Operating Expenses:

Personnel Services 411,280 231,582 642,862
Supplies and Services 1,596,557 133,640 3,941,868 257,427 5,929,492 Total Operating Expenses 1,596,557 544,920 3,941,868 489,009 6,572,354 Operating Income (Loss) 241,174 (199,962) 202,145 (14,509) 228,848 Non-Operating Revenues:

Interest Revenue 6,599 3,872 11,236 2,508 24,215
Total Non-Operating Revenues 6,599 3,872 11,236 2,508 24,215 Change in Net Position 247,773 (196,090) 213,381 (12,001) 253,063 Net Position - Beginning of Fiscal Year 2,326,154 731,686 3,201,590 52,717 6,312,147 Net Position - End of Fiscal Year $ 2,573,927 $ 535,596 $ 3,414,971 $ 40,716 $ 6,565,210

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES

IN NET POSITION
Totals
For the Fiscal Year Ended June 30, 2021

CITY OF EL CENTRO
189

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Packet Pg. 280 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Workers' Post Employment Group Health Motor
Compensation Benefits Insurance Vehicle
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash Received from Users $ 1,843,004 $ 344,958 $ 4,164,099 $ 474,500 $ 6,826,561 Cash Payments to Suppliers and Contractors (1,703,273) (133,640) (3,946,849) (216,571) (6,000,333) Cash Payments for Employees and Benefit Programs (411,280) (233,553) (644,833) Net Cash Provided (Used) By Operating Activities 139,731 (199,962) 217,250 24,376 181,395 CASH FLOWS FROM INVESTING ACTIVITIES:

Interest Received 6,599 3,872 11,236 2,508 24,215
Net Cash Provided (Used) In Investing Activities 6,599 3,872 11,236 2,508 24,215

NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 146,330 (196,090) 228,486 26,884 205,610

CASH AND CASH EQUIVALENTS,
BEGINNING OF FISCAL YEAR 2,499,019 729,838 3,767,780 383,005 7,379,642

CASH AND CASH EQUIVALENTS,
END OF FISCAL YEAR $ 2,645,349 $ 533,748 $ 3,996,266 $ 409,889 $ 7,585,252 Reconciliation with Statement of Net Position
Cash and Investments $ 2,645,349 $ 533,748 $ 3,996,266 $ 409,889 $ 7,585,252 CASH AND CASH EQUIVALENTS $ 2,645,349 $ 533,748 $ 3,996,266 $ 409,889 $ 7,585,252

Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities
Operating Income (Loss) $ 241,174 $ (199,962) $ 202,145 $ (14,509) $ 228,848 Changes in Assets and Liabilities:

Increase (Decrease) Accounts Payable and
Accrued Liabilities (4,981) (106,716) 19,428 (92,269)
Increase (decrease) in net pension liability 19,457 19,457 Total Adjustments 15,105 (101,443) 38,885 (47,453)
Net Cash Provided (Used) By Operating Activities $ 139,731 $ (199,962) $ 217,250 $ 24,376 $ 181,395

Totals

CITY OF EL CENTRO

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the Fiscal Year Ended June 30, 2021
190

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Packet Pg. 281 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

191

FIDUCIARY FUNDS
Fiduciary funds are used to account for the receipt and disbursement of various taxes, deposits, deductions, and property collected by the City, acting in the capacity of an agent for distribution to other governmental units or other organizations.

Trust Funds
Successor Agency Administration – This fund set up to account for revenue and expenses incurred in the dissolution of the Redevelopment Agency.

Successor Agency Capital Project – This fund set up to administer the completion of projects previously administered by the Redevelopment Agency Capital Project Fund.

Successor Agency Debt Service – This fund set up to account for debt service payment previously paid the Redevelopment Agency Debt Service Fund.

Successor Agency Revolving Loan – This fund set up to account for revolving business loans previously administered by the Redevelopment Agency.

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Packet Pg. 282 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

PRIVATE-PURPOSE TRUST FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2021
Successor Successor Successor
Successor Agency Agency Agency
Agency Capital Debt Revolving
Administration Project Service Loan Totals
Assets:

Cash and Investments $ 370,646 $ - $ 1,350,339 $ 15,090 $ 1,736,075 Cash and Investments with Fiscal Agent, Restricted 2,428,205 1,692,247 4,120,452 Interest Receivable 87 231 45 363
Notes Receivable 159,356 159,356
Other Receivable 1,334 1,334
Advances to City of El Centro 9,413,455 9,413,455
Discount for advances to City of El Centro 502,947 502,947 Capital Assets, Not Being Depreciated 7,458,729 7,458,729 Capital Assets, Net of Accumulated Depreciation 11,265,271 11,265,271 Total Assets 370,733 31,068,607 3,042,817 175,825 34,657,982 Deferred outflows of resources:

Deferred loss on refunding 508,941 508,941
Total Deferred outflows of resources 508,941 508,941
Liabilities:

Accounts Payable 24,991 24,991
Interest Payable 207,699 207,699
Noncurrent Liabilties:

Due within One Year 1,906,924 1,906,924
Due in More than One Year 23,224,834 23,224,834
Total Liabilities 25,339,457 26,370 25,365,827
Net Position:

Unrestricted 344,363 31,068,607 (21,787,699) 175,825 9,801,096 Total Net Position (Deficit) $ 344,363 $ 31,068,607 $ (21,787,699) $ 175,825 $ 9,801,096

192

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Packet Pg. 283 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO

PRIVATE-PURPOSE TRUST FUNDS

COMBINING STATEMENT OF CHANGES IN NET POSITION
For the Fiscal Year Ended June 30, 2021
Successor Successor Successor
Successor Agency Agency Agency
Agency Capital Debt Revolving
Administration Project Service Loan Totals
Additions:

Investment Revenue $ 3,008 $ 124 $ 15,476 $ 52 $ 18,660 Intergovernmental 100,000 100,000
Property Taxes 2,379,842 2,379,842
Other Revenue 112,928 112,928
Total Additions 103,008 124 2,395,318 112,980 2,611,430

Deductions:

Community Development 260,008 260,008
Depreciation 485,720 485,720
Interest Expense 115,989 1,146,564 1,262,553
Total Deductions 260,008 601,709 1,146,564 2,008,281
Change in Net Position (157,000) (601,585) 1,248,754 112,980 603,149 Net Position (Deficit), July 1 501,363 31,670,192 (23,036,453) 62,845 9,197,947 Net Position (Deficit), June 30 $ 344,363 $ 31,068,607 $ (21,787,699) $ 175,825 $ 9,801,096 193

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Packet Pg. 284 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021)

CITY OF EL CENTRO
194

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Packet Pg. 285 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) Statistical Section
This part of the City of El Centro's Annual Comprehensive Financial Report presents detailed information in a context for understanding what the information in the financial statements, note disclosures, and supplemental information says about the City's overall financial health.

Contents
Financial Trends
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
These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes.

Debt Capacity
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
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparison over time and with other governments.

Operating Information
These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activites it performs.

Sources:

Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial report for the relevant year. The City implemented GASB Statement No. 34 as of June 30, 2004; schedules presenting government-wide information, include information beginning in that year.
195

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Packet Pg. 286 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial Report Year Ended June 30, 2021) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental Activities
Net Investment in Capital Assets $75,589,062 $79,208,418 $80,842,072 $78,942,143 $78,819,026 $75,890,314 $74,090,179 $81,953,440 $87,033,203 $87,703,425 Restricted 47,900,194 46,249,862 45,804,312 44,253,527 41,186,047 39,979,160 39,608,650 40,567,511 40,936,807 52,654,435 Unrestricted 17,675,436 15,377,332 19,252,947 (5,132,864) (2,041,415) 1,089,034 (787,605) (6,361,074) (13,312,223) (6,711,306) Total Governmental Activities Net Position 141,164,692 140,835,612 145,899,331 118,062,806 117,963,658 116,958,508 112,911,224 116,159,877 114,657,787 133,646,554 Business-Type Activities
Net Investment in Capital Assets 42,634,667 37,066,118 39,558,204 44,193,034 26,493,221 51,055,961 46,138,956 43,162,871 36,515,592 39,272,371 Restricted 6,582,559 6,674,927 6,730,642 6,851,721 6,930,565 6,384,134 10,235,872 10,287,056 17,365,590 13,955,202 Unrestricted 61,899,630 71,903,606 73,181,202 50,350,649 73,625,255 41,274,763 45,832,239 50,023,357 51,558,130 58,412,179 Total Business-Type Activities Net Position 111,116,856 115,644,651 119,470,048 101,395,404 107,049,041 98,714,858 102,207,067 103,473,284 105,439,312 111,639,752 Primary Government
Net Investment in Capital Assets 118,223,729 116,274,536 120,400,276 123,135,177 105,312,247 126,946,275 120,229,135 125,116,311 123,548,795 126,975,796 Restricted 54,482,753 52,924,789 52,534,954 51,105,248 48,116,612 46,363,294 49,844,522 50,854,567 58,302,397 66,609,637 Unrestricted 79,575,066 87,280,938 92,434,149 45,217,785 71,583,840 42,363,797 45,044,634 43,662,283 38,245,907 51,700,873 Total Primary Government Net Position $252,281,548 $256,480,263 $265,369,379 $219,458,210 $225,012,699 $215,673,366 $215,118,291 $219,633,161 $220,097,099 $245,286,306 Source: City of El Centro Finance Department
Fiscal Year

CITY OF EL CENTRO

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(Accrual Basis of Accounting)
196

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Packet Pg. 287 Attachment: El Centro FS 21 Final reduced (005) - Revised (5427 : Annual Comprehensive Financial 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental Activities
General Government $3,784,511 $2,697,357 $2,754,215 $2,814,460 $3,189,318 $3,260,008 $4,907,578 $5,082,615 $5,772,893 $5,676,593 Public Protection 14,771,179 13,500,334 13,702,504 14,821,027 15,991,970 16,549,335 19,407,063 20,140,393 20,753,554 19,531,877 Community Development 6,138,138 7,740,525 5,368,816 5,914,348 4,904,923 5,045,345 5,961,507 5,927,402 4,768,729 5,013,282 Public Works 5,296,310 5,845,493 5,552,867 4,107,228 4,166,861 4,374,882 5,858,267 5,009,012 5,850,108 6,331,378 Parks and Recreation 3,071,913 2,941,013 3,377,770 4,214,952 4,294,769 4,353,867 4,417,407 4,775,412 5,557,488 5,812,664 Interest on Long-Term Debt 3,256,048 1,653,023 1,155,173 1,372,677 1,311,227 1,035,446 995,159 952,081 999,577 1,342,134 Total Governmental Activities Expenses 36,318,099 34,377,745 31,911,345 33,244,692 33,859,068 34,618,883 41,546,981 41,886,915 43,702,349 43,707,928 Business-Type Activities
Water 8,264,815 8,270,456 7,889,026 7,703,001 7,835,221 8,085,191 8,663,249 9,246,697 9,661,057 9,745,814 Wastewater 7,845,792 7,485,992 7,784,150 7,963,730 7,416,154 7,744,111 8,146,616 8,402,600 8,316,641 8,750,262 Hospital 123,010,972 123,087,439 123,534,326 123,935,509 130,184,797 143,495,890 159,294,906 170,543,566 173,626,585 191,749,110 Transit 211,598 356,984 391,240 428,536 441,838 - 273,540 - - - Solid Waste 1,831,381 1,741,891 1,782,315 1,824,911 1,816,363 1,855,107 1,886,245 1,947,110 2,021,566 2,067,167 Total Business-Type Activities Expenses 141,164,558 140,942,762 141,381,057 141,855,687 147,694,373 161,180,299 178,264,556 190,139,973 193,625,849 212,312,353 Total Primary Government Net Expenses $177,482,657 $175,320,507 $173,292,402 $175,100,379 $181,553,441 $195,799,182 $219,811,537 $232,026,888 $237,328,198 $256,020,281 Program Revenues
Governmental Activities
Charges for Services
General Government $538,072 $501,117 $546,723 $671,937 $550,744 $539,224 $630,324 $573,594 $583,638 $614,831 Public Protection 489,902 436,624 394,565 388,716 395,876 409,253 429,794 475,524 315,055 242,640 Community Development 582,900 443,626 548,054 549,694 533,237 511,977 776,338 465,207 586,354 780,884 Public Works 46,475 40,420 14,665 24,738 18,582 18,855 15,205 50,280 14,665 16,680 Parks and Recreation 108,676 106,267 133,327 148,347 397,040 186,582 169,678 208,480 116,824 197,300 Operating Contributions and Grants 4,729,860 6,330,950 5,053,349 3,770,930 4,307,685 3,075,687 5,039,069 5,585,214 5,015,988 19,990,382 Capital Contributions and Grants 8,945,384 14,465,302 10,655,687 6,632,032 6,290,390 5,962,819 4,953,068 6,353,495 7,057,057 7,411,795 Total Governmental Activities Program Revenues 15,441,269 22,324,306 17,346,370 12,186,394 12,493,554 10,704,397 12,013,476 13,711,794 13,689,581 29,254,512 Business-Type Activities
Charges for Services
Water 8,345,593 8,432,311 8,597,177 8,382,237 8,040,037 8,725,663 8,969,212 8,840,576 9,520,271 10,225,238 Wastewater 7,622,341 7,879,037 8,487,848 8,830,413 9,093,132 9,775,034 9,764,887 9,678,021 10,433,981 11,032,844 Hospital 133,547,434 126,098,919 128,111,189 133,830,561 133,442,763 131,014,558 156,801,391 163,792,187 153,709,185 166,205,189 Transit 252,665 428,249 431,237 420,029 406,248 - - - - - Solid Waste 1,782,171 1,769,658 1,811,429 1,854,003 1,852,773 1,862,447 1,862,502 2,012,265 2,037,599 2,063,322 Operating Contributions and Grants 876,773 428,979 472,116 405,654 358,660 283,995 476,362 945,662 16,474,592 21,830,832 Capital Contributions and Grants 1,118,733 327,314 397,620 1,120,428 385,790 - 2,339,194 3,461,366 31,274 1,130,499 Total Business-Type Activities Program Revenues 153,545,710 145,364,467 148,308,616 154,843,325 153,579,403 151,661,697 180,213,548 188,730,077 192,206,902 212,487,924 Total Primary Government Program Revenues $168,986,979 $167,688,773 $165,654,986 $167,029,719 $166,072,957 $162,366,094 $192,227,024 $202,441,871 $205,896,483 $241,742,436

Page 1 of 2 ends

El Centro City CouncilMarch 1, 2022

El Centro City Council
March 1, 2022