Hemet City Council
April 23, 2024

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

5) CHANGES IN CAPIT AL ASSETS - Continued

Depreciation expense was charged to functions/programs of the primary government as follows:

Included in the additions to capital assets above are $412,013 in Software Subscription Assets, along with $68,669 in accumulated depreciation from subscriptions entered into in prior years, in accordance with the implementation of GASB 96, Subscription-Based Information Technology Arrangements.

Depreciation expense was charged to functions/programs of the primary government as follows:

General Government 666,378$
Public Safety 1,435,929
Public Works 5,000,524
Libraries 305,976
Internal Service 101,571
7,510,378$
Beginning Ending
Busine ss-type Activitie s: Balance Additions Deletions Transfers Balance Capital Assets, Not Being Depreciated:

Land 32,975$ -$ -$ -$ 32,975$ Total Capital Assets, Not
Being Depreciated 32,975 - - - 32,975 Capital Assets Being Depreciated:

Buildings and Improvements 29,947,203 - (323,112) - 29,624,091 Machinery and Equipment 5,988,314 - (2,271,855) - 3,716,459 Total Capital Assets Being
Depreciated 35,935,517 - (2,594,967) - 33,340,550 Less Accumulated Depreciation:

Buildings and Improvements (27,053,569) (371,439) 323,112 - (27,101,896) Machinery and Equipment (5,768,899) (175,704) 2,271,855 - (3,672,748) Total Accumulated Depreciation (32,822,468) (547,143) 2,594,967 - (30,774,644) Total Capital Assets Being
Depreciated, Net 3,113,049 (547,143) - - 2,565,906 Total Capital Assets, Net 3,146,024$ (547,143)$ -$ -$ 2,598,881$ Business-type Activities
Water 547,143 $
Total Depreciation Expense 547,143$
48

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

6) LONG-TERM LIABILITIES

Changes in long-term liabilities for governmental activities and business-type activities are as follows:

Included in the additions to long-term liabilities in Governmen tal Activities is $270,596 in Software Subscription Liability from subscription agreements entered int o in prior years, in accordance with the implementation of GASB 96, Subscription-Based Information Technology Arrangements.

The compensated absences, net pens ion and OPEB liabilities in t he governmental activities are generally liquidated by the General Fund, while the net pension and OPEB liabilities in the business-type activities are liquidated by the Water Enterprise Fund.

Fiduciary Fund

Changes in long-term liabilities for Fiduciary Funds for the year ended June 30, 2023 is as follows:

Settlement Liability

In February 2012, the City entered into a settlement agreement with the Soboba Band of Luiseño Indians (the “Tribe”) over a dispute about water rights. The settlement agreement includes the City of Hemet, City of San Jacinto, Eastern Municipal Water District and Lake Hemet Municipal Water District. The City of Hemet’s total settlement obligation per the agreement was $7,252,000. The agreement does not require interest payments.

Principal is due semi-annually on January 1 and July 1 of each year. Annual payments total $268,600. The balance on the settlement liabilit y at June 30, 2 023 was $3,357 ,500. The required payments on the settlement liability are as follows:

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

Compensated Absences 3,130,314$ 978,235$ (730,596)$ 3,377,953$ 982,155$ Claims Payable 4,449,097 893,459 (942,009) 4,400,547 1,264,969 Software Subscription Liability - 738,756 (304,138) 434,618 287,821 Net OPEB Liability 46,555,914 - (3, 512,454) 43,043,460 - Net Pension Liability 69,554,304 44,368,623 - 113,922,927 - Total 123,689,629$ 46,979,073$ (5,489,197)$ 165,179,505$ 2,534,945$ Busine ss-type Activitie s:

Compensated Absences 197,414$ 87,625$ (39,404)$ 245,635$ 39,252$ Settlement Liability 3,626,100 - ( 268,600) 3,357,500 268,600 Net OPEB Liability 3,236,507 - ( 244,181) 2,992,326 - Net Pension Liability 3,196,827 2,508,607 - 5,705,434 - Total 10,256,848$ 2,596,232$ (552,185)$ 12,300,895$ 307,852$ Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Tax Allocation Bonds:

Series 2014, Refunding 7,420,000$ -$ (610,000)$ 6,810,000$ 635,000$ Premium 426,143 - (46,199) 379,944 - Total 7,846,143$ -$ (656,199)$ 7,189,944$ 635,000$ 49

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

6) LONG-TERM LIABILITIES - Continued

Software Subscription Liability

The City of Hemet has entered into subscription-based informati on technology arrangement (SBITA) with vendors for various City software systems. The systems are discounted at a rate of 3%. For the year ended June 30, 2023, the City reported a SBITA liability in the amount of $434,618. For the year ended June 30, 2023, there was a principal reduction of $304,138. As of June 30, 2023, the net SBITA right-to-use intangible asset was reported in the amount of $583,135. The future payments on the SBITA liability are as follows:

2014 Tax Allocation Refunding Bonds

In December 2014, the Riverside County Public Financing Authori ty issued $11,110,000 Riverside County Public Financing Authority 2014 Tax Allocation Revenue Bonds (Hemet Refunding Project) to 1) refund the Successor Agency Subordinate Tax Allocation Bonds, 1999 Series A and Tax Allocation Bonds, 2002 Series A, 2) to satisfy the reserve requirement and 3) to pay cost of issuance. Interest ranges from 3.00% to 5.00% is payable semiannually on March 1 and September 1 of each year , commencing March 1, 2015. Principal is due in annual installments of $580,000 to $870,000 through Sept ember 1, 2031. The outstanding balance at June 30, 2023 was $6,810,000. The debt service to maturity is as follows:

Fiscal Year Ending
June 30, Principal Interest Total
2024 268,600$ - $ 268,600$
2025 268,600 - 268,600
2026 268,600 - 268,600
2027 268,600 - 268,600
2028 268,600 - 268,600
2029 268,600 - 268,600
2030 268,600 - 268,600
2031 268,600 - 268,600
2032 268,600 - 268,600
2033 268,600 - 268,600
2034 268,600 - 268,600
2035 268,600 - 268,600
2036 134,300 - 134,300
Totals 3,357,500$ - $ 3,357,500$
Fiscal Year Ending
June 30, Principal Interest Total
2024 287,821$ 17,528$ 305,349$
2025 150,797 13,983 164,780
Totals 438,618$ 31,511$ 470,129$
50

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

6) LONG-TERM LIABILITIES - Continued

Non-Commitment Debt

CFD No. 1999-1 Special Tax Refunding Bonds, Series 2006 (Heartland Project)

In July 2006, the City of Hemet authorized and provided for the issuance of special tax bonds for the Community Facilities District No. 1999-1. Proceeds of these bon ds are held by a fiscal agent and are being used to defease and refund the 1999-1 Heartland CFD Series 2001 A and Series 2002B bonds. The original issues were used to finance off-site improvements of a 1,417 ho me community with an 18-hole golf course.

This bond issue is not a legal obligation of the City as the Ci ty is only acting as an agent for the property owners in collecting the assessments. Neither the faith and cre dit nor the taxing power of the City is pledged to the payment of the bonds. Therefore, these bonds are not rep orted as a liability in the financial statements of the City. The outstanding balance on these bonds at June 30, 2023 is $5,435,000.

7) RISK MANAGEMENT AND SELF-INSURANCE PROGRAMS

The City is exposed to various r isks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disast ers. The City participates in municipal agency risk pools for their property, workers’ compensation and excess liability coverage.

The City is a member of the California Joint Powers Insurance A uthority (Authority). The Authority is composed of 124 California public entities and is organized und er a joint powers agreement pursuant to California Government Code §6500 et seq. The Authority arranges and administers programs for the pooling of self-insured losses, purchases excess insurance and reinsura nce, and arranges for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Authority’s Board of Directors. The Board operates through a nine-member Executive Committee.

Fiscal Year Ending
June 30, Principal Interest Total
2024 635,000$ 240,969 $ 875,969 $
2025 670,000 208,344 878,344
2026 700,000 174,094 874,094
2027 735,000 145,569 880,569
2028 765,000 122,591 887,591
2029 780,000 97,962 877,962
2030 815,000 72,044 887,044
2031 840,000 44,655 884,655
2032 870,000 15,255 885,255
Totals 6,810,000$ 1,121,483 $ 7,931,483 $
51

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

7) RISK MANAGEMENT AND SELF-INSURANCE PROGRAMS - Continued

Excess Liability Program
Liability coverage includes auto liability, employment practice s liability, public officials’ errors and omissions, bodily injury, personal injury, third party property damage, advertising injury, and employee benefit administration liability. The City has a retained limit of $250,000 per occurrence. The overall coverage limit for each member, including all layers of coverage, is $50 million p er occurrence. The coverage structure is composed of a combination of pooled self-insurance, reinsurance , and excess insurance. Additional information concerning the coverage structure is available on t he Authority’s website:
https://cjpia.org/coverage/risk-sharing-pools/.

Excess Workers’ Compensation Program
The City has a retained limit of $250,000 per occurrence for wo rkers’ compensation claims. The Authority’s pooled retention is $1 million per occurrence with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

Purchased Insurance
The City also participates in the following coverage programs provided by the Authority:
(A) All-Risk Property Protection Program. This insurance protec tion is underwritten by several insurance companies. The City’s property is currently insured according t o a schedule of covered property submitted by the City to the Authority. The total insured value of scheduled City property is $88,814,509. There is a $10,000 deductible per occurrence except for non-emergency vehi cle insurance which has a $2,500 deductible.
(B) Earthquake and Flood Insurance. This coverage is part of the Property Protection Program. The City has total insured values of Non Participant scheduled for coverage under this program. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. (C) Pollution Legal Liability Insurance Program. The policy cov ers 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 $250,000 deductible. The Authority has an aggregate limit of $20 million. (D) Crime Insurance Program. Formerly called Blanket Fidelity B ond, this policy covers faithful performance, depositor’s forgery, theft of money and securities, and compute r fraud related to the transfer of money. The policy limit is $1,000,000, and the deductible is $2,500. (E) Special Event Tenant User Liability Insurance. This coverag e protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on City property. The insurance premium is paid by t he tenant user and is paid to the City according to a schedule. The City then pays the insurance broker and/or c arrier. The insurance is facilitated by the Authority.

Adequacy of Protection
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 2022-23.

The City operates a self-insurance program for dental, vision, and retiree supplemental medical insurance costs.

The retiree supplemental medical plan, for employees hired prior to July 24, 1990 and who subsequently retire from the City, is only intended to bridge decreases in health c overage benefits as measured between current coverage benefits and the highest level of such benefits as conferred during the employee’s tenure. A separate internal service fund has been established to accumulate reserves and pay expenses of the program.

52

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

7) RISK MANAGEMENT AND SELF-INSURANCE PROGRAMS - Continued

Currently, the various operating funds provide the financial support of these programs. It is, however, hoped that once adequate reserve levels are achieved, the interest ea rnings will carry the administration costs.

Estimated City costs of claims for liability, workers’ compensation, dental, vision, and the retiree supplemental medical have been accrued as Claims and Judgments Payable in the accompanying financials statements.

For the past three years, settled claims have not exceeded the amount of insurance coverage. Liabilities for claims payable including workers’ compensation are typically liquidated by the internal service funds.

8) CITY EMPLOYEES RETIREMENT PLAN

Plan Descriptions

All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent mu ltiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement Sys tem (CalPERS), which acts as a common investment and administrative agent for its participating membe r employers. Benefit provisions under the plan are established by State statute and Local Government reso lution. 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: www.calpers.ca.gov.

Benefits Provided

The Plans are agent multiple-employer defined benefit pension p lans administered by the California Public Employees’ Retirement System (CalPERS). A full description of t he pension plan regarding number of employees covered, benefit provi sions, assumptions (for funding , but not accounting purposes), and membership information are listed in the plan’s June 30, 2021 A nnual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly a vailable reports that can be obtained at CalPERS’ website.

The Plans’ provisions that are in effect at June 30, 2023, are summarized as follows:

Claim Payments
Beginning Claims and Other Ending
Balance Incurred Adjustments Balance
2020-2021 Total 1,950,563 $ 14,130,789 $ (13,289,663) $ 2,791,689 $ 2021-2022 Total 2,791,689 $ 1,657,408 $ - $ 4,449,097$ Dental - Vision 77,348 - (30,072) 47,276 Workers' Comp 442,287 - (30,089) 412,198 Liability 3,929,462 19,377 (7,766) 3,941,073 2022-2023 Total 4,449,097 $ 19,377 $ (67,927) $ 4,400,547 $ 53

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

8) CITY EMPLOYEES RETIREMENT PLAN – Continued

Employees Covered: At June 30, 2023, the following number of employees were covere d by the benefit terms for each Plan:

Contributions: Section 20814(c) of the California Public Employees’ Retiremen t Law (PERL) requires that the employer contribution rates for all public employers be det ermined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change i n the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to fi nance the costs of benefits ear ned by employees during the year, with an additional amount to finance any unfunded accrued liability. Th e employer is required to contribute the difference between the actuarially determined rate and the cont ribution rate of employees. Employer contribution rates may change if plan contracts are amended. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer-Paid Member Contributions or situations where members are paying a portion of the employer contribution.

Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.7% @ 55 2% @ 62
Benefit v esting schedule 5 years serv ice 5 years serv ice Benefit payments monthly for life monthly for life
Retirement age 50-55 52
Monthly benefits, as a % of eligible compensation (1) (1) Required employee contribution rates 8% 7.25%
Required employer contribution rates 11.42% + $2,993,429 6.75% Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 50 2.7% @ 50
Benefit v esting schedule 5 years serv ice 5 years serv ice Benefit payments monthly for life monthly for life
Retirement age 50-55 52
Monthly benefits, as a % of eligible compensation (1) (1) Required employee contribution rates 9% 14.00%
Required employer contribution rates 20.17% + $5,721,755 11.50% (1) - Depending on years of service
Miscellaneous
Safety
Miscellaneous Safety
Inactive employees or beneficiaries
currently receiv ing benfits 317 195
Inactiv e employees entitled to but not yet
receiv ing benefits 224 108
Activ e employees 144 116
54

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

8) CITY EMPLOYEES RETIREMENT PLAN - Continued

Net Pension Liability: The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension lia bility of the Plans are measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 r olled forward to June 30, 2022 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, 2021 actuarial v aluations were determined using the following actuarial assumptions:

The mortality table used was developed based on CalPERS-specifi c data. The probabilitie s of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post- retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

Long-term Expected Rate of Return - The long-term expected rate of return on pension plan investm ents 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 expens e and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expecte d pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-bloc k 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 sing le equivalent expected return that arrived at the same present value of benefits for cash flows as the one ca lculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The e xpected real rates of return by asset class are as follows:

All Plans
Valuation date June 30, 2021
Measurement date June 30, 2022
Actuarial cost method entry-age normal
Actuarial assumptions:

Discount rate 6.90%
Inflation 2.30%
Payroll growth (1)
Projected salary increase (1)
Investment rate of return 6.90%
Mortality (2)
Post Retirement (3)
(1) Depending on age, service and type of employment
(2) Derived using CalPERS’ Membership Data for all Funds. (3) The lesser contract COLA or 2.3% until Purchasing Power Protection Allowance floor on purchasing power applies,

2.3% thereafter
55

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

8) CITY EMPLOYEES RETIREMENT PLAN - Continued

Discount Rate - The discount rate used to measure the total pension liability f or PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, act uarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected fu ture benefit payments of current plan members.

Therefore, the long-term expect ed rate of return on plan invest ments was applied to all periods of projected benefit payments to determine the total pension liability.

New Strategic
Asset Class Allocation Real Return (1,2)
Global Equity - Cap Weighted 30% 4.54%
Global Equity - Non-Cap Weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021 Asset Liability Management st udy. 56

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

8) CITY EMPLOYEES RETIREMENT PLAN - Continued

Changes in Net Pension Liability

The changes in the Net Pension Liability for the Miscellaneous Plan are as follows:

The changes in the Net Pension Liability for the Safety Plan are as follows:

Pension Plan Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2021 133,167,786 $ 111,855,611 $ 21,312,175 $ Changes in the year:

Serv ice cost 1,739,825 - 1,739,825 Interest on the total pension liability 9,137,300 - 9,137,300 Differences between expected and actual experience (2,261,897 ) - (2,261,897) Changes in assumptions 4,277,964 - 4,277,964 Contributions from the employer - 3,974,114 (3,974,114) Contributions from employees - 703,332 (703,332) Net inv estment income - (8,438,624) 8,438,624 Benefit payments, including refunds (7,258,269) (7,258,269) - Administrativ e/other expense - (69,679) 69,679 Net changes 5,634,923 (11,089,126) 16,724,049 Balance at June 30, 2022 138,802,709 $ 100,766,485 $ 38,036,224 $ Increase (Decrease)
Pension Plan Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2021 206,136,328 $ 154,697,372 $ 51,438,956 $ Changes in the year:

Serv ice cost 4,303,472 - 4,303,472 Interest on the total pension liability 14,633,003 - 14,633,003 Differences between expected and actual experience 438,599 - 438,599 Changes in assumptions 8,468,220 - 8,468,220 Contributions from the employer - 7,912,960 (7,912,960) Contributions from employees - 1,712,748 (1,712,748) Net inv estment income - (11,839,228) 11,839,228 Benefit payments, including refunds (10,244,764) (10,244,764) - Administrativ e/other expense - (96,367) 96,367 Net changes 17,598,530 (12,554,651) 30,153,181 Balance at June 30, 2022 223,734,858 $ 142,142,721 $ 81,592,137 $ Increase (Decrease)
57

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

8) CITY EMPLOYEES RETIREMENT PLAN – Continued

Sensitivity of the Net Pension Liability to Changes in the Disc ount Rate: The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calc ulated using a discount rate that is 1 percentage- point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:

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

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 2023, the City recognized pension e xpense of $3,908,546 for the Miscellaneous Plan and $11,407,503 for the Safety Plan. The total pension ex pense for both plans was $15,316,049 for the year ended June 30, 2023. At June 30, 2023, the City reported deferred outflows and deferred inflows for the Miscellaneous Plan from the following sources:

$4,205,154 reported as deferred ou tflows of resources related to contributions subsequent to the measurement date will be recogni zed as a reduction of the net p ension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability 56,669,041$ 113,940,547 $
Current Discount Rate 6.90% 6.90%
Net Pension Liability 38,036,224$ 81,592,137 $
1% Increase 7.90% 7.90%
Net Pension Liability 22,774,216$ 55,373,585 $
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 4,205,154$ - $ Differences between actual and expected experience - 1,299,054 Changes in assumptions 2,333,435 -
Net differences between projected and actual
earnings on plan investments 4,974,857 -
Total 11,513,446 $ 1,299,054 $
Miscellaneous
58

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

8) CITY EMPLOYEES RETIREMENT PLAN - Continued

At June 30, 2023, the City reported deferred outflows and deferred inflows for the Safety Plan from the following sources:

$8,388,097 reported as deferred ou tflows of resources related t o contributions subsequent to the measurement date will be recogni zed as a reduction of the net p ension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:

Year Ending
June 30,
2024 1,620,755$
2025 866,791
2026 310,145
2027 3,211,547
2028 -
Thereafter -
Miscellaneous
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 8,388,097$ -$ Differences between actual and expected experience 1,008,758 128,244 Changes in assumptions 6,239,741 -
Net differences between projected and actual
earnings on plan investments 7,134,258 -
Total 22,770,854$ 128,244$
Safety
Year Ending
June 30,
2024 4,089,238$
2025 3,292,086
2026 2,377,111
2027 4,496,078
2028 -
Thereafter -
Safety
59

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

9) OTHER POSTEMPLOYMENT BENEFITS (OPEB)

Plan Description

The City of Hemet Retiree Healthcare Plan administers a single-employer defined benefit plan which provides medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements.

Retiree medical health benefits are offered to eligible retiree s through Aetna and Kaiser. Dental and vision benefits are provided by the City and administered by Group Management Services. Eligibility is based on the contract. The City's plan does not issue a publicly available financial report.

Eligibility

Employees of the city are eligible for retiree health benefits if they are between 50-55 years of age or disability retire directly from the City as of the last day of work prior to retirement and are a vested member of CalPERS. Membership in the plan consisted of the following at J uly 1, 2021, the date of the latest actuarial valuation:

Contributions

The obligation of the City to contribute to the plan is establi shed and may be amended by the City Council.

For the fiscal year ended June 30, 2023, the City’s average con tribution rate was not applicable. The initial contribution of $750,000 was made November 2016. An annual $200 ,000 contribution began in fiscal year 2018 to the OPEB Trust Account, administered by the Public Agency Retirement Systems (PARS). The City pays benefit payments outside of the trust. Employees are not required to contribute to the plan.

Net OPEB Liability

The City's net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of July 1, 2021.

Actuarial Methods and Assumptions

The total OPEB liability in the July 1, 2021 actuarial valuatio n was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified.

Retirees or spouses of retirees currently receiving benefits 232 Active employees 233
Total 465
Valuation Date July 1, 2021
Actuarial Cost Method Entry Age Normal, Lev el % of Pay Mortality CalPERS Experience Study dated November 2021
Mortality Improvement Fully generational with Scale MP-2020 Health Care Trend Rate 5.75 initial, 4.04% ultimate
Inflation Rate 2.50%
Discount Rate 5.75% at June 2023

5.75% at June 2022
Salary Increases 2.80% annually
Dental/Vision Trend 0.00% annually
60

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

9) OTHER POSTEMPLOYMENT BENEFITS (OPEB) - Continued

Discount Rate

The discount rate used to measure the total OPEB liability was 5.75 percent. The projection of cash flows used to determine the discount rat e assumed that City contribut ions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB paymen ts for current active and inactive employees. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Change in the Net OPEB Liability

Sensitivity of the Net OPEB Li ability to changes in the Discoun t Rate - The following presents the net OPEB liability of the City if it were calculated using a discou nt rate that is 1-perc entage-point lower or 1- percentage-point higher than the current discount rate:

Sensitivity of the Net OPEB Liability to changes in the Healthc are Cost Trend Rates - The following presents the net OPEB liability of the City, as well as what th e City’s Net OPEB would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point l ower or 1-percentage-point higher than the current healthcare cost trend rate:

Target Allocation Expected Real
Asset Class PARS-Balance Rate of Return
Global Equity 58% 4.37%
All Fixed Income 35% 1.10%
Real Estate 2% 3.54%
Cash 5% -0.45%
Total 100.00%
Total OPEB Plan Fiduciary Net OPEB
Liability (TOL) Net Position Liability/(Asset)
Balance at June 30, 2022 51,874,975 $ 2,082,554 $ 49,792,421 $ Changes in the year:

Service cost 101,332 - 101,332 Interest on the total OPEB liab ility 2,879,946 - 2,879,946 Employer contributions - 4,087,951 (4,087,951) Actual investment income - 216,126 (216,126) Differences between expected and actual experience (2,466,271) - (2,466,271) Administrative Expense - (32,435) 32,435 Benefit payments, including refunds (3,834,166) (3,834,166) - Net changes (3,319,159) 437,476 (3,756,635) Balance at June 30, 2023 48,555,816 $ 2,520,030 $ 46,035,786 $ Increase (Decrease)
Discount Rate Valuation Discount Rate
1% Lower Discount Rate 1% Higher
Net OPEB liability (asset) 50,972,318$ 46,035,786 $ 41,858,406 $ 61

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

9) OTHER POSTEMPLOYMENT BENEFITS (OPEB) - Continued

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

Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.

For the year ended June 30, 2023, the City recognized OPEB expe nse of $3,654,627. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Amounts reported as deferred outflows and deferred inflows of r esources related to OPEB will be recognized as an OPEB expense as follows:

Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
Net OPEB liability (asset) 41,368,325$ 46,035,786 $ 51,507,409 $ Deferred Deferred
Outflows Inflows
Changes of Assumptions 3,489,002$ -$
Differences between expected
and actual experience 202,156 3,582,375
Net differences between projected and actual
earnings on plan investments 71,467 -
Total 3,762,625$ 3,582,375$
Year Ending
June 30,
2024 525,089$
2025 279,837
2026 (113,401)
2027 (511,278)
2028 -
Thereafter -
62

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

10) FUND BALANCES

The details of the fund balances as of June 30, 2023 are presented below:

11) ENDOWMENTS

The City received an endowment in 2002 for $1,000,000. The prin cipal amount of $1,000,000 is to be held in perpetuity while interest earnings are to be used for the City's library as stated in the resolution accepting the endowment. The endowment activity is accounted for in the permanent fund of the City with the principal amount reflected in nonspendable fund balance. In the government-wide financial statements, the principal amount is included in restricted net position as non-expendable. At June 30, 2023, net appreciation on investment of the principal balance amounted to $17,738, and is reported as restr icted net position as expendable. California Senate Bill No. 1329 enacted Uniform Prudent Management of Inst itutional Funds Act (“UPMIFA’) that governing the ability to spend on the net appreciation of the endowment fund. The City also passed resolution No. 3715 to establish policy on the spending of investment income in that available funds may only be used to supplement normal budgeted City funds appropriated by the City for the operation and maintenance of the Other
General Sewer and Bridges/Streets Governmental
Fund Storm Drain ARPA Traffic Facilities Funds Total
Nonspendable:

Prepaid Items 119,235 $ - $ - $ - $ - $ 119,235$ Prepaid Items - Measure U 2,017,351 - - - - 2,017,351 Library Endowment - - - - 1,000,000 1,000,000 Restricted for:

Public Access Channel 1,222,910 - - - - 1,222,910 Public Safety - - - - 1,642,611 1,642,611 Street Work - - - 6,813,714 13,113,518 19,927,232 Lighting and Landscaping - - - - 7,228,980 7,228,980 Housing and Community Development Grants 301,462 - - - 7,733,974 8,035,436 Sewer Maintenance - 16,289,924 - - - 16,289,924 Indian Gaming Capital Projects - - - - 6,411 6,411 Development Impact Fees - - - - 16,514,187 16,514,187 Library Equipment - - - - 17,738 17,738 General Plan - - - - 436,698 436,698 Committed:

Projects - - 5,860,591 - - 5,860,591 Economic Stabilization Reserve 9,265,960 - - - - 9,265,960 Measure U - Public Safety Personnel
Police 13,052,390 - - - - 13,052,390 Fire 974,726 - - - - 974,726 Measure U - Economic Stabilization Reserve
Police 1,900,455 - - - - 1,900,455 Fire 1,438,248 - - - - 1,438,248 Assigned:

Provision for Government Services - - 2,766,030 - - 2,766,030 Equipment Replacement - - - - 5,057,500 5,057,500 Capital Replacement - - - - 8,564 8,564 Capital Projects 3,105,616 - - - - 3,105,616 Unassigned 30,214,501 - - - (716,011) 29,498,490 Total Fund Balances 63,612,854$ 16,289,924$ 8,626,621$ 6,813,714$ 52,044,170$ 147,387,283$ 63

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

11) ENDOWMENTS - Continued

library and not to substitute for such funds. Available funds may be used for a variety of library purposes that enhances the functioning of the library after specifically approved on a case by case line-item basis by the City Council in advance of the expenditure.

12) DEFICIT NET POSITIONS AND FUND BALANCES

In the government-wide financial statements, the governmental activities had a deficit unrestricted net position of $37,757,003, caused to some extent by the net pension liability of $119,628,361 and the net OPEB liability of $46,035,786.

Funds with deficit net positions and fund balances at June 30, 2023 are as follows:

The deficit net position for the Successor Agency Private Purpo se Trust Fund will be eliminated through continued repayment of debt through property tax revenue receiv ed. Local Law Enforcement Block Grant Special Revenue Fund will eliminate the deficit through a transfer from the General Fund Public Safety program.

Internal service funds deficits will be eliminated through cost recovery from the respective funds.

13) COMMITMENTS AND CONTINGENCIES

The City has been named as a defendant in certain other claims and litigation matters. In the opinion of City management, the outcome of such litigation is not expected to result in a material adverse effect to the financial condition of the City beyond that accrued in the City’s Self-funded Insurance Fund.

The City has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expendit ure disallowances under the terms of the grants, it is believed that any required reimbursements will not be material.

The estimated amount of remaining construction contract obligations at year-end is $6,027,361.

14) RESTATEMENT OF NET POSITION

The restatement of $72,748 in the Statement of Activities is th e net effect of the implementation of GASB 96, Subscription-Based Information Technology.

Fiduciary Funds
Successor Agency Priv ate Purpose Trust Fund 4,292,306 $ Other Governmental Funds:

Article 3 203,885$
Public Safety Grants 68,518
Local Law Enforcement Block Grant 90,848
Active Transportation Grant 352,760
Internal Service Fund
Liability Insurance 4,027,507 $
Medical Insurance Admin 2,476
64

15.B

City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023

15) SUBSEQUENT EVENTS

In October 2023, subsequent to year-end, the City accepted an Organized Retail Theft Grant for $2,500,065.

In November 2023, subsequent to year-end, the City accepted a $2,020,098 grant from the State of California from AB 178 and SB 101.

In December 2023, the CJPIA Executive Committee voted to increase the City’s self-insured retention limit for it’s excess liability program from $250,000 to $1,000,000 beginning in January 2024.

65

15.B

REQUIRED SUPPLEMENTARY INFORMATION
66

15.B

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 46,222,368$ 46,222,368$ 49,986,183$ 3,763,815 $ Licenses and Permits 2,154,000 2,571,757 4,433,228 1,861,471 Intergovernmental Revenue 9,014,000 10,069,398 10,265,501 196,103 Charges for Services 3,838,605 3,893,167 4,278,537 385,370 Fines and Forfeitures 184,100 184,100 276,322 92,222
Investment Income 400,000 400,000 160,933 (239,067)
Miscellaneous 36,700 179,458 220,627 41,169 Total Revenues 61,849,773 63,520,248 69,621,331 6,101,083

EXPENDITURES
Current:

General Government 3,351,900 3,625,101 2,471,005 1,154,096 Public Safety 52,390,300 52,050,972 49,181,831 2,869,141 Community Development 6,144,700 6,918,255 5,938,921 979,334 Public Works - - - - Parks 1,096,500 1,145,635 1,019,981 125,654 Libraries 1,574,800 1,584,795 1,543,543 41,252 Capital Outlay - 51,811 512,948 (461,137) Total Expenditures 64,558,200 65,376,569 60,668,229 4,708,340 Excess (Deficiency) of Revenues
over Expenditures (2,708,427) (1,856,321) 8,953,102 10,809,423

OTHER FINANCING SOURCES (USES)
Software Subscriptions - - 468,160 468,160 Transfers In 300,000 300,000 151,205 (148,795) Transfers Out (20,000) (20,000) (20,000) -
Total Other Financing Sources (Uses) 280,000 280,000 599,365 319,365 Net Change in Fund Balances (2,428,427) (1,576,321) 9,552,467 11,128,788 Fund Balance, Beginning of Year 54,060,387 54,060,387 54,060,387 Fund Balance, End of Year 51,631,960$ 52,484,066$ 63,612,854$ 11,128,788$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund
Year Ended June 30, 2023
Budgeted Amounts
67

15.B

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for Services 4,177,500 $ 4,177,500 $ 4,491,466 $ 313,966 $ Investment Income 35,000 35,000 283,322 248,322 Intergovernmental Revenues - - 16,831 16,831 Total Revenues 4,212,500 4,212,500 4,791,619 579,119

EXPENDITURES
Current:

Sanitation 3,222,900 3,254,141 2,925,049 329,092
Capital Outlay - 5,375,795 2,362,982 3,012,813 Total Expenditures 3,222,900 8,629,936 5,288,031 3,012,813 Excess (Deficiency) of Revenues
over Expenditures 989,600 (4,417,436) (496,412) 3,921,024

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 989,600 (4,417,436) (496,412) 3,921,024 Fund Balance, Beginning of Year 16,786,336 16,786,336 16,786,336 - Fund Balance, End of Year 17,775,936$ 12,368,900$ 16,289,924$ 3,921,024$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Sewer and Storm Drain Special Revenue Fund Year Ended June 30, 2023
Budgeted Amounts
68

15.B

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental - $ 14,190,524$ 14,190,524 $ - $ Total Revenues - 14,190,524 14,190,524 -

EXPENDITURES
Current:

General Government 318,700 1,746,402 1,245,965 500,437 Capital Outlay - 4,317,500 4,317,938 (438) Total Expenditures 318,700 6,063,902 5,563,903 - Excess (Deficiency) of Revenues
over Expenditures (318,700) 8,126,622 8,626,621 499,999

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (318,700) 8,126,622 8,626,621 499,999 Fund Balance, Beginning of Year - - - - Fund Balance, End of Year (318,700)$ 8,126,622$ 8,626,621$ 499,999$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - ARPA Special Revenue Fund
Year Ended June 30, 2023
Budgeted Amounts
69

15.B

City of Hemet
Required Supplementary Information
Year Ended June 30, 2023
Schedule of Changes in the Net Pension
Liability and Related Ratios
Agent Multiple-employer Plan - Miscellaneous
Total Pension Liability 2022 2021 2020
Service cost 1,739,825 $ 1,620,902 $ 1,707,524 $ Interest on total pension liability 9,137,300 9,086,211 8,871,075 Changes in assumptions 4,277,964 - - Differences between expected and actual experience (2,261,897) (391,754) (58,526) Benefit payments, including refunds (7,258,269) (7,617,503) (6,651,779) Net change in total pension liability 5,634,923 2,697,856 3,868,294 Total pension liability - beginning 133,167,786 130,469,930 126,601,636 Total pension liability - ending (a) 138,802,709 $ 133,167,786 $ 130,469,930 $ Plan Fiduciary Net Position
Contributions - employer 3,974,114 $ 3,885,574 $ 3,788,951 $ Contributions - employee 703,332 680,978 724,261 Net investment income (8,438,624) 21,096,786 4,584,933 Benefit payments (7,258,269) (7,617,503) (6,651,779) Plan to Plan Resource Movement - - - Administrative/Other Expense (69,679) (93,804) (129,114) Net change in plan fiduciary net position (11,089,126) 17,952,031 2,317,252 Plan fiduciary net position - beginning 111,855,611 93,903,580 91,586,328 Plan fiduciary net position - ending (b) 100,766,485 $ 111,855,611 $ 93,903,580 $ Net pension liability - ending (a) - (b) 38,036,224 $ 21,312,175 $ 36,566,350 $ Plan fiduciary net position as a percentage
of the total pension liability 72.60% 84.00% 71.97%
Covered payroll 8,647,240 $ 8,751,743 $ 9,960,091 $ Net pension liability as percentage of
covered payroll 439.87% 243.52% 367.13%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Measurement Period
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2019 valuation date. This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in Assumptions: In 2021, the accounting discount rate changed from 7.15 percent to 6.90 percent.

In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflected an adjustment of the discount rate from 7.5 percent (net of administrative ex
pense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. * Pension schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.
70

15.B

2019 2018 2017 2016 2015 2014
1,890,624$ 1,857,379$ 1,931,287$ 1,729,490$ 1,871,677$ 1,873,983$ 8,592,385 8,241,843 8,110,383 7,937,191 7,613,775 7,253,346 - (585,850) 6,866,966 - (1,903,393) - 827,595 (1,731,724) (1,473,269) (192,030) 353,826 - (6,218,552) (5,862,944) (5,834,147) (5,132,797) (4,856,565) (4,666,256) 5,092,052 1,918,704 9,601,220 4,341,854 3,079,320 4,461,073 121,509,584 119,590,880 109,989,660 105,647,806 102,568,486 98,107,413 126,601,636$ 121,509,584$ 119,590,880$ 109,989,660$ 105,647,806$ 102,568,486$ 3,789,256$ 3,136,888$ 2,990,210$ 2,647,176$ 2,503,520$ 2,191,066$ 772,222 745,420 743,649 743,644 780,189 871,668 5,749,884 6,966,209 8,615,176 396,714 1,739,990 11,594,247 (6,218,552) (5,862,944) (5,834,147) (5,132,797) (4,856,565) (4,666,256) - (204) (38,502) (382) (887) - (62,278) (374,702) (113,068) (47,522) (87,854) - 4,030,532 4,610,667 6,363,318 (1,393,167) 78,393 9,990,725 87,555,796 82,945,129 76,581,811 77,974,978 77,896,585 67,905,860 91,586,328$ 87,555,796$ 82,945,129$ 76,581,811$ 77,974,978$ 77,896,585$ 35,015,308$ 33,953,788$ 36,645,751$ 33,407,849$ 27,672,828$ 24,671,901$

72.34% 72.06% 69.36% 69.63% 73.81% 75.95%
9,693,519$ 9,531,865$ 9,581,222$ 9,353,143$ 9,860,790$ 9,398,580$ 361.22% 356.21% 382.47% 357.18% 280.63% 262.51%
Measurement Period
71

15.B

City of Hemet
Required Supplementary Information
Year Ended June 30, 2023
Schedule of Changes in the Net Pension
Liability and Related Ratios
Agent Multiple-employer Plan - Safety
Total Pension Liability 2022 2021 2020
Service cost 4,303,472 $ 3,968,710 $ 3,877,702 $ Interest on total pension liability 14,633,003 13,947,881 13,404,657 Changes in assumptions 8,468,220 - - Differences between expected and actual experience 438,599 (250,382) 2,343,095 Benefit payments, including refunds (10,244,764) (9,742,340) (9,217,556) Net change in total pension liability 17,598,530 7,923,869 10,407,898 Total pension liability - beginning 206,136,328 198,212,459 187,804,561 Total pension liability - ending (a) 223,734,858 $ 206,136,328 $ 198,212,459 $ Plan Fiduciary Net Position
Contributions - employer 7,912,960 $ 7,489,405 $ 6,947,064 $ Contributions - employee 1,712,748 1,689,371 1,607,715 Net investment income (11,839,228) 28,944,164 6,111,153 Benefit payments (10,244,764) (9,742,340) (9,217,556) Plan to Plan Resource Movement - - - Administrative/Other Expense (96,367) (126,309) (170,814) Net change in plan fiduciary net position (12,554,651) 28,254,291 5,277,562 Plan fiduciary net position - beginning 154,697,372 126,443,081 121,165,519 Plan fiduciary net position - ending (b) 142,142,721 $ 154,697,372 $ 126,443,081 $ Net pension liability - ending (a) - (b) 81,592,137 $ 51,438,956 $ 71,769,378 $ Plan fiduciary net position as a percentage
of the total pension liability 63.53% 75.05% 63.79%
Covered payroll 13,164,492 $ 13,119,703 $ 12,672,228 $ Net pension liability as percentage of
covered payroll 619.79% 392.07% 566.35%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Measurement Period
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in Assumptions: In 2021, the accounting discount rate changed from 7.15 percent to 6.90 percent. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflected an adjustment of the discount rate from 7.5 percent (net of administrative ex
pense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. * Pension schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.
72

15.B

2019 2018 2017 2016 2015 2014
3,746,584$ 3,255,817$ 2,874,210$ 2,471,569$ 2,394,505$ 2,495,555$ 12,696,170 11,907,636 11,326,420 10,976,376 10,402,942 9,879,182 - (582,760) 10,043,106 - (2,726,343) - 4,092,051 2,318,140 (1,131,468) 1,932,999 1,323,162 - (8,667,438) (8,277,450) (7,718,359) (7,544,599) (7,001,597) (6,313,012) 11,867,367 8,621,383 15,393,909 7,836,345 4,392,669 6,061,725 175,937,194 167,315,811 151,921,902 144,085,557 139,692,888 133,631,163 187,804,561$ 175,937,194$ 167,315,811$ 151,921,902$ 144,085,557$ 139,692,888$ 6,605,381$ 5,494,582$ 4,880,193$ 4,516,245$ 4,085,934$ 3,816,628$ 1,569,835 1,429,167 1,142,393 1,032,806 885,734 896,539 7,562,691 9,055,192 11,060,588 516,112 2,205,144 14,795,183 (8,667,438) (8,277,450) (7,718,359) (7,544,599) (7,001,597) (6,313,012) - (265) 38,502 382 887 - (81,214) (483,180) (144,246) (60,481) (111,835) - 6,989,255 7,218,046 9,259,071 (1,539,535) 64,267 13,195,338 114,176,264 106,958,218 97,699,147 99,238,682 99,174,415 85,979,077 121,165,519$ 114,176,264$ 106,958,218$ 97,699,147$ 99,238,682$ 99,174,415$ 66,639,042$ 61,760,930$ 60,357,593$ 54,222,755$ 44,846,875$ 40,518,473$

64.52% 64.90% 63.93% 64.31% 68.87% 70.99%
11,986,001$ 10,732,874$ 9,450,596$ 9,039,459$ 8,826,041$ 8,870,562$ 555.97% 575.44% 638.66% 599.85% 508.12% 456.77%
Measurement Period
73

15.B

City of Hemet
Required Supplementary Information
Year Ended June 30, 2023

Schedule of Contributions – Last 10 Years*
Agent Multiple-employer Plan – Miscellaneous Plan

Schedule of Contributions – Last 10 Years*
Agent Multiple-employer Plan – Safety Plan

Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2023 4,205,154$ (4,205,154) $ - $ 7,398,429$ 56.84% 2022 3,969,112 (3,969,112) - 8,647,240 45.90% 2021 3,887,516 (3,887,516) - 8,747,448 44.44% 2020 3,789,402 (3,789,402) - 9,960,091 38.05% 2019 3,789,256 (3,789,256) - 9,693,519 39.09% 2018 3,136,888 (3,136,888) - 9,531,865 32.91% 2017 2,990,210 (2,990,210) - 9,581,222 31.21% 2016 2,647,176 (2,647,176) - 9,353,153 28.30% 2015 2,503,520 (2,503,520) - 9,860,790 25.39% 2014 2,191,066 (2,191,066) - 9,398,580 23.31% Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2023 8,388,097$ (8,388,097) $ - $ 15,152,188$ 55.36% 2022 7,912,960 (7,912,960) - 13,164,492 60.11% 2021 7,487,463 (7,487,463) - 13,119,703 57.07% 2020 6,947,140 (6,947,140) - 12,672,228 54.82% 2019 6,605,381 (6,605,381) - 11,986,001 55.11% 2018 5,494,582 (5,494,582) - 10,732,874 51.19% 2017 4,880,193 (4,880,193) - 9,450,596 51.64% 2016 4,516,245 (4,516,245) - 9,039,459 49.96% 2015 4,085,934 (4,085,934) - 8,826,041 46.29% 2014 3,816,628 (3,816,628) - 8,870,562 43.03% 74

15.B

THIS PAGE INTENTIONALLY LEFT BLANK
75

15.B

City of Hemet
Required Supplementary Information
Year Ended June 30, 2023
2023 2022 2021
Total OPEB Liability
Service cost 101,332$ 237,000$ 184,471$ Interest on total OPEB liability 2,879,946 2,903,335 2,987,576 Changes in assumptions - 3,206,347 3,010,639 Changes in benefits - - - Differences between expected and actual experience (2,466,271) (2,653,284) 465,835 Benefit payments, including refunds (3,834,166) (4,091,232) (3,984,911) Net change in total OPEB liability (3,319,159) (397,834) 2,663,610 Total OPEB liability - beginning 51,874,975 52,272,809 49,609,199 Total OPEB liability - ending (a) 48,555,816$ 51,874,975$ 52,272,809$ Plan Fiduciary Net Position
Contributions - employer 4,087,951$ 4,386,817$ 4,253,811$ Net Investment Income 216,126 (319,692) 432,284 Benefit payments (3,834,166) (4,091,232) (3,984,911) Administrative Expense (32,435) (108,759) (73,501) Net change in plan fiduciary net position 437,476 (132,866) 627,683 Plan fiduciary net position - beginning 2,082,554 2,215,420 1,587,737 Plan fiduciary net position - ending (b) 2,520,030$ 2,082,554$ 2,215,420$ Net OPEB liability - ending (a) - (b) 46,035,786$ 49,792,421$ 50,057,389$ Plan fiduciary net position as a percentage
of the total OPEB liabilit
y 5.2% 4.0% 4.2%
Covered - employee payroll 28,788,925 20,422,785 25,724,365 Net OPEB liability as a percentage of
covered-employee payroll 159.91% 243.81% 194.59%
* OPEB schedules are intended to show information for ten years, additional years' information will be displayed as it becomes available.

Measurement Period
Schedule of Changes in the Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30
Last 10 Years*
76

15.B

Measurement Period
2020 2019 2018
208,241$ 359,700 $ 349,223 $
3,035,365 2,919,091 2,936,563
- 2,845,604 -
- - -
- (191,273) -
(3,984,013) (3,858,552) (3,293,090)
(740,407) 2,074,570 (7,304)
50,349,606 48,275,036 48,282,340
49,609,199$ 50,349,606$ 48,275,036$
4,260,842$ 4,112,794$ 3,540,596$
66,550 64,025 61,075
(3,984,013) (3,858,552) (3,293,090)
(84,114) (56,932) (49,749)
259,265 261,335 258,832
1,328,472 1,067,137 808,305
1,587,737$ 1,328,472$ 1,067,137$
48,021,462$ 49,021,134$ 47,207,899$

3.2% 2.6% 2.2%
23,502,304 23,892,668 23,441,109
204.33% 205.17% 201.39%
77

15.B

City of Hemet
Required Supplementary Information
Year Ended June 30, 2023

* OPEB schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.

Contributions in
Relation to the Contributions
Actuarially Actuarially Contribution Covered as a % of
Determined Determined Deficiency/ Employee Cov ered
Fiscal Year Contributions Contributions (Excess) Payroll Employee Pa yroll 2023 4,217,306$ (4,087,951)$ 129,355$ 28,788,925$ 14.20% 2022 3,946,000 (4,386,817) (440,817) 20,422,785 21.48% 2021 3,797,000 (4,260,842) (463,842) 25,724,365 16.56% 2020 3,797,000 (4,260,842) (463,842) 23,502,304 18.13% 2019 3,744,000 (4,112,794) (368,794) 23,892,668 17.21% 2018 - (3,540,596) (3,540,596) 23,441,109 15.10% Schedule of Plan Contributions
La st 10 Ye a rs*
for the City's OPEB Plan
78

15.B

City of Hemet
Notes to Required Supplementary Information
Year Ended June 30, 2023

BUDGETS AND BUDGETARY ACCOUNTING

The City uses the following procedures in establishing the bud getary data reflected in the financial statements:

After January 1, department heads prepare estimates for required appropriations for the fiscal year commencing the following July 1. The proposed budget includes estimated ex penditures and forecasted revenues for the fiscal year. The data is presented to the City Manager for review. The City Manager submits to the City Council a proposed operating budget for the upcoming fiscal year. The operating budget includes a summary of the proposed expenditures and financial resources of the City, as well as historical data for the preceding two fiscal periods. Public hearings are conducted to obtain taxpayer comments. The City Council is normally expected to adopt the budget prior to the beginning of the next fiscal period through passage of an adopting resolution. This appropriated budget covers substantially all City expenditures. There were no significant non-budgeted financial activities. All appropriated amounts are as originally adopted or as amended by the City Council and not subject to continuing appropriation lapse at year end.

The City Manager is authorized to transfer budgeted amounts between functions, departments and expenditure accounts within funds. Transfers of appropriations between fun ds may be made only by authority of the City Council. Formal budgetary integration is employed as a management control device during the fiscal year for the General, Special Revenue, Capital Projects, and Debt Servic e funds. Formal budgetary control is not employed for Debt Service funds because effective budgetary con trol is alternatively achieved through debt indenture provisions. It is the policy of the City of Hemet to only budget capital expenditure projects from existing capital projects funds fund balances. No annual reven ues are budgeted due to their annual volatility.

Budgets for the various funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Annual appropriated budgets are legally adopted for the General, Special Revenue, Capital Projects, and Debt Service fund types.

79

15.B

SUPPLEMENTARY INFORMATION
80

15.B

City of Hemet
Measure U Operating Funds

In November 2016, the citizens of Hemet voted to approve Measure U, a general 1% sales tax measure. While this Measure is considered a General Tax, the City’s Council passed a Resolution restricting the use of Measure U revenues to the addition and retention of Public Safety Personnel. Although the funds are housed within the General Fund, by Resolution, they are required to be tracked in separate accounts from General Fund revenues and expenditures. Any Measure U funds not spent at the end of the fiscal year are required to be reserved for future use of the Measure U program. Over the last two fiscal y ears, Measure U revenues have outpaced original projections. The details of the City’s Measure U program for the year ended June 30, 2023 are as follows:

Police Fire Total
Revenues
Police 2/3, Fire 1/3 overall allocation 10,787,063$ 5,393,532$ 16,180,595$ Expenditures
Salary and Fringe Benefits 7,249,594 6,003,758 13,253,352 Operating Supplies and Services 714,560 232,280 946,840 Internal Service Charges 548,100 220,300 768,400 Capital Outlay 990,019 734,906 1,724,925 Total 9,502,273$ 7,191,244$ 16,693,517
Change in Measure U Operating Funds 1,284,790 (1,797,712) (512,922) Beginning Measure U Operating Funds (restated) 13,668,054 6,228,038 19,896,092 Prepaid Measure U Operating Funds 270,005 1,747,346 2,017,351 Committed (20% Reserv e) 1,900,455 1,438,249 3,338,704 Committed Measure U Operating Funds 12,782,384 1,244,731 14,027,115 Ending Measure U Operating Funds 14,952,844$ 4,430,326$ 19,383,170$ 81

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Charges for Services 1,326,600 $ 969,356 $ (357,244) $ Investment Income 65,000 133,290 68,290
Intergovernmental - 4,702 4,702 Total Revenues 1,391,600 1,107,348 (284,252)

EXPENDITURES
Current:

Public Works 679,231 677,419 1,812
Capital Outlay - - - Total Expenditures 679,231 677,419 1,812
Excess (Deficiency) of Revenues
over Expenditures 712,369 429,929 (282,440)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 712,369 429,929 (282,440)
Fund Balance, Beginning of Year 6,383,785 6,383,785 -
Fund Balance, End of Year 7,096,154$ 6,813,714$ (282,440)$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Bridges/Streets Traffic Facilities Capital Projects Fund Year Ended June 30, 2023
82

15.B

City of Hemet
Non-Major Governmental Funds

SPECIAL REVENUE FUNDS

Special revenue funds are used to account for revenue derived from specific taxes or other dedicated revenue sources (other than for major capital projects) that are restricted by law or administrative action for expenditures for specified purposes.

Public Safety/Towing - This fund accounts for the financial transactions involving the use of monies collected for towing service as related to public safety.

Gas Tax Fund - Accounts for transactions as prescribed by the State of Califo rnia statute on California Streets and Highways; including receipts under Streets and Highways Cod e Section 2105, 2106, 2107, 2107.5 and SB300.

Measure A - Accounts for the use of Measure A tax monies for transit purposes.

Air Pollution Reduction - Accounts for the financial transactions per Regulation 15 of th e South Coast Air Quality Management District.

Lighting/Landscape Maintenance District - Accounts for the financial transactions of City-wide lighting a nd landscaping assessment district established by City Council.

Post Proposition 218 Lighting District - Accounts for the financial transactions of lighting districts voted by the citizens of those specified areas.

Post Proposition 218 Landscape District - Accounts for financial transactions of landscape districts vot ed in by the citizens of those specified areas.

Public Works CFD - Accounts for financial transactions of lighting, landscape and maintenance of specific areas established by the City Council.

Asset Seizure - Accounts for the financial transac tions associated with assets seized in narcotics investigations to be used for law enforcement purposes.

Public Safety Grants - Accounts for the financial transactions as prescribed by variou s State and Federal Police Grants.

Public Safety CFD - Accounts for the proceeds from the Public Safety Community Faci lities District voted in by the citizens of those specific areas to be used specifically for public safety.

Citizen Option for Public Safety Programs (COPS) - Accounts for the financial transactions as prescribed by the State of California Grant under AB 3229.

Local Law Enforcement Block Grant (LLEBG) - Accounts for the financial transactions as prescribed by the U.S. Department of Justice Grant for the Local Law Enforcement Block Grant Program.

Community Development Block Grant - Accounts for the financial transactions as prescribed by the Federal Department of Housing and Urban Development for Community Development Block Grant Programs.

General Plan - Accounts for the financial transactions related to updating and maintaining the City’s general plan.

83

15.B

City of Hemet
Non-Major Governmental Funds - Continued

SPECIAL REVENUE FUNDS - Continued

HOME Program - Home Investment Partnership Program - Accounts for the financial transactions of the federally funded HOME program as administered by the State of California’s Department of Housing and Community Development.

CAL HOME Program - Accounts for the financial transactions of the State funded program to replace and rehabilitate mobile homes.

2001 - 2008 HOME Program - Accounts for the financial transactions of the Federally funded HOME program as administered by the State of California Department of Housing and Community Development.

Neighborhood Stabilization Program Grant - Accounts for the financial transactions as prescribed by the Federal Department of Housing and Urban Development for Neighborhood Stabilization Program Grants.

Housing Authority - This fund accounts for the revenue received from the City’s affordable housing programs which facilitate housing development and affordable housing opportunities.

Indian Gaming Grants - This fund accounts for the financial transactions of Indian Gaming Grants received by the City to be spent on specific programs or departments.

CAPITAL PROJECTS FUNDS

Public Meeting Facilities - Accounts for the financial transactions for the public meeti ng facilities identified in the development impact fee report and funded through developer contributions.

General Facilities - Accounts for the financial transactions for general facilities identified in the development impact fee report and funded through developer contributions.

Flood Control - Accounts for the financial transactions for flood control im provements identified in the development impact fee report and funded through developer contributions.

Law Enforcement Facilities - Accounts for the financial transactions for the purchase of equipment identified in the development impact fee report and funded through developer contributions.

Fire Facilities - Accounts for the financial trans actions for the purchase of equ ipment identified in the development impact fee report and funded through developer contributions.

Park Development - Accounts for the financial transactions for park acquisition s and development identified in the development impact fee report and funded through park dedication fees and state grants.

Valley Wide DVL Park - Accounts for the financial transactions for development iden tified in the development impact fee report and funded through developer contributions.

Library Facilities - Accounts for the financial transactions for expansion of lib rary facilities identified in the development impact fee report and funded through developer contributions.

Equipment Replacement - Accounts for accumulation of reserves for future replacement of rolling stock vehicles from other funds.
84

15.B

City of Hemet
Non-Major Governmental Funds - Continued

General Capital - Accounts for the financial transactions for the addition of new (non-replacement) equipment.

PERMANENT FUNDS

LaSalle Library Endowment - Accounts for an endowment given to the City of Hemet for the benefit of the Library. Only interest earned on the principal amount of $1,00 0,000 can be used for non-operating costs of the Library.

85

15.B

Public Air Pollution
Safety/Towing Gas Tax Measure A Article 3 Reduction
ASSETS
Cash and Investments 197,576$ 7,399,176$ 4,559,758$ -$ 1,039,143$ Receivables:

Accounts - - - - 29,898 Interest - - - - - Due from Other Governments - 549,786 730,924 203,885 - Notes - - - - - Allowance for Forgivable Notes - - - - - Due from Other Funds - - - - - Due from Fiduciary Funds - - - - - Land Held for Resale - - - - - Total Assets 197,576$ 7,948,962$ 5,290,682$ 203,885$ 1,069,041$

LIABILITIES
Accounts Payable 1,314$ 77,721$ 555,988$ 203,885$ 557,291$ Accrued Salaries and Benefits 992 3,840 327 - - Deposits - - - - - Unearned Revenue - - - - - Due to Other Funds - - - - - Total Liabilities 2,306 81,561 556,315 203,885 557,291

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants
- - - 203,885 - Total Deferred Inflows of Resources - - - 203,885 -

FUND BALANCE (DEFICITS)
Nonspendable - - - - - Restricted 195,270 7,867,401 4,734,367 - 511,750 Assigned - - - - - Unassigned - - - (203,885) - Total Fund Balances 195,270 7,867,401 4,734,367 (203,885) 511,750 Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) 197,576$ 7,948,962$ 5,290,682$ 203,885$ 1,069,041$ City of Hemet
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2023
Special Revenue
86

15.B

Lighting and Post Post
Landscaping Prop 218 Prop 218 Public Works Asset Public Public Maintenance Lighting Landscaping CFD Seizure Safety Grants Safety CFD 2,552,468$ 1,595,067$ 3,331,455$ 274,768 $ 254,420$ -$ 542,605$ - - - - - 27,774 - - - - - - - - 42,860 5,596 18,237 260 - 386,218 11,265 - - - - - - - - - - - - - - - - - - - - 66,567 - - - - - - - - - - - - - - 2,595,328$ 1,600,663$ 3,349,692$ 275,028 $ 254,420$ 413,992$ 620,437$ 75,259$ 5,593$ 56,746$ 4,777 $ 223$ 1,284$ 1,204$ 2,834 890 5,972 - - 4,173 2,724 - - 169,409 89,857 171,445 - 9,654 - - - - - 58,444 - - - - - - 103,445 - 78,093 6,483 232,127 94,634 171,668 167,346 13,582 - - - - - 315,164 - - - - - - 315,164 - - - - - - - - 2,517,235 1,594,180 3,117,565 180,394 82,752 - 606,855 - - - - - - - - - - - - (68,518) - 2,517,235 1,594,180 3,117,565 180,394 82,752 (68,518) 606,855 2,595,328$ 1,600,663$ 3,349,692$ 275,028 $ 254,420$ 413,992$ 620,437$ Continued
Special Revenue
87

15.B

Local Law Community
COPS Enforcement Development General HOME
AB 3229 Block Grant Block Grant Plan Program
ASSETS
Cash and Investments 486,492 $ - $ - $ 436,698 $ 719,006$ Receivables:

Accounts - - - - 82 Interest - - - - - Due from Other Governments - - 686,501 - - Notes - - - - 302,673 Allowance for Forgivable Notes - - - - - Due from Other Funds 90,848 - - - - Due from Fiduciary Funds - - - - - Land Held for Resale - - - - - Total Assets 577,340$ -$ 686,501 $ 436,698 $ 1,021,761$

LIABILITIES
Accounts Payable -$ -$ 20,929 $ -$ -$ Accrued Salaries and Benefits - - 1,922 - - Deposits - - - - - Unearned Revenue - - - - - Due to Other Funds - 90,848 660,441 - - Total Liabilities - 90,848 683,292 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants
- - - - - Total Deferred Inflows of Resources - - - - -

FUND BALANCE (DEFICITS)
Nonspendable - - - - - Restricted 577,340 - 3,209 436,698 1,021,761 Assigned - - - - - Unassigned - (90,848) - - - Total Fund Balances 577,340 (90,848) 3,209 436,698 1,021,761 Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) 577,340$ -$ 686,501 $ 436,698 $ 1,021,761$ Special Revenue
City of Hemet
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2023
88

15.B

Capital
Projects
Indian Active Public
CalHome 2001 - 2008 Housing Gaming Transportation Meeting Grant Home Grant NSP Program Authority Grants Grant Facilities 215,138$ 360,607 $ 40,602 $ 242,374 $ 389 $ - $ 223,473$ - - - 3,500 - - - - 600,113 - 897,353 - - - - - - - - 352,760 - 329,196 3,991,151 153,874 2,917,106 - - - - (4,200,113) - (1,573,024) - - - - 660,441 - - 6,022 - - - - - - - - - - - 593,919 1,482,500 - - - 544,334$ 1,412,199 $ 788,395 $ 3,969,809 $ 6,411 $ 352,760 $ 223,473 $ -$ - $ - $ - $ - $ 346,738$ - $ - - - - - - - - - - 5,733 - - - - - - - - - - - - - - - 6,022 - - - - 5,733 - 352,760 - - - - - - 352,760 - - - - - - 352,760 - - - - - - - - 544,334 1,412,199 788,395 3,964,076 6,411 - 223,473 - - - - - - - - - - - - (352,760) - 544,334 1,412,199 788,395 3,964,076 6,411 (352,760) 223,473 544,334$ 1,412,199$ 788,395$ 3,969,809$ 6,411$ 352,760$ 223,473$ Continued
Special Revenue
89

15.B

Law
General Flood Enforcement Fire Park
Facilities Control Facilities Facilities Development
ASSETS
Cash and Investments 1,433,055 $ 5,563,401 $ 639,570 $ 4,520,341 $ 2,652,034 $ Receivables:

Accounts - - - - - Interest - - - - - Due from Other Governments - - - - - Notes - - - - - Allowance for Forgivable Notes - - - - - Due from Other Funds - 354,137 - - - Due from Fiduciary Funds - - - - - Land Held for Resale - - - - - Total Assets 1,433,055 $ 5,917,538 $ 639,570 $ 4,520,341 $ 2,652,034 $

LIABILITIES
Accounts Payable 13,973 $ 100 $ - $ - $ 45,745$ Accrued Salaries and Benefits - - - - - Deposits - - - - - Unearned Revenue - - - - - Due to Other Funds - - - 354,137 - Total Liabilities 13,973 100 - 354,137 45,745

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants
- - - - - Total Deferred Inflows of Resources - - - - -

FUND BALANCE (DEFICITS)
Nonspendable - - - - - Restricted 1,419,082 5,917,438 639,570 4,166,204 2,606,289 Assigned - - - - - Unassigned - - - - - Total Fund Balances 1,419,082 5,917,438 639,570 4,166,204 2,606,289 Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) 1,433,055$ 5,917,538 $ 639,570 $ 4,520,341 $ 2,652,034 $ Non-major Governmental Funds - Continued
June 30, 2023
Capital Projects
City of Hemet
Combining Balance Sheet
90

15.B

Permanent
Fund
Valley LaSalle
Wide Library Equipment General Library
DVL Park Facilities Replacement Capital Endowment Totals 415,981$ 1,138,734 $ 4,555,180 $ 8,564 $ 1,009,719$ 46,407,794 $ - - - - - 61,254 - - - - 8,048 1,505,514 - - - - - 2,988,292 - - - - - 7,694,000 - - - - - (5,773,137) - - - - - 1,178,015 - - 502,320 - - 502,320 - - - - - 2,076,419 415,981$ 1,138,734 $ 5,057,500 $ 8,564 $ 1,017,767$ 56,640,471 $ -$ 12,584$ - $ - $ 29 $ 1,981,383$ - - - - - 23,674 - - - - - 446,098 - - - - - 58,444 - - - - - 1,214,893 -
12,584 - - 29 3,724,492 - - - - - 871,809 - - - - - 871,809 - - - - 1,000,000 1,000,000 415,981 1,126,150 - - 17,738 46,694,117 - - 5,057,500 8,564 - 5,066,064 - - - - - (716,011) 415,981 1,126,150 5,057,500 8,564 1,017,738 52,044,170
415,981$ 1,138,734 $ 5,057,500 $ 8,564 $ 1,017,767$ 56,640,471 $ Capital Projects
91

15.B

Public Air Pollution
Safety/Towing Gas Tax Measure A Article 3 Reduction

REVENUES
Taxes - $ - $ 2,901,824$ - $ - $ Intergovernmental Revenue - 4,271,311 - - 118,337 Charges for Services 70,087 - - - - Investment Income 2,667 104,200 90,622 - 17,330 Miscellaneous - 220 - - - Total Revenues 72,754 4,375,731 2,992,446 - 135,667

EXPENDITURES
Current:

General Government - - - - - Public Safety 50,546 - - - - Community Development - - - - - Public Works - 1,492,890 - - - Libraries - - - - - Capital Outlay - 764,453 4,685,637 203,885 681,961 Total Expenditures 50,546 2,257,343 4,685,637 203,885 681,961 Excess (Deficiency) of Revenues
Over Expenditures 22,208 2,118,388 (1,693,191) (203,885) (546,294)

OTHER FINANCING SOURCES (USES)
Transfers In - 20,000 - - - Transfers Out - - - - - Total Other Financing Sources (Uses) - 20,000 - - - Net Change in Fund Balances 22,208 2,138,388 (1,693,191) (203,885) (546,294) Fund Balances, Beginning of Year 173,062 5,729,013 6,427,558 - 1,058,044 Fund Balances, End of Year 195,270$ 7,867,401 $ 4,734,367 $ (203,885) $ 511,750 $ Special Revenue
Year Ended June 30, 2023
City of Hemet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
92

15.B

Lighting and Post Post
Landscaping Prop 218 Prop 218 Public Works Asset Public Public Maintenance Lighting Landscaping CFD Seizure Safety Grants Safety CFD -$ -$ -$ - $ -$ - $ -$ - - - - 2,480 216,449 - 1,734,289 388,550 1,957,098 263,981 - - 1,108,671 34,340 23,875 45,789 1,670 3,862 - 4,655 70,622 - - - - - - 1,839,251 412,425 2,002,887 265,651 6,342 216,449 1,113,326 - - - - - - - - - - - - 402,354 945,524 - - - - - - - 1,590,555 240,134 1,646,555 85,581 - - - - - - - - - - - - - - - - - 1,590,555 240,134 1,646,555 85,581 - 402,354 945,524 248,696 172,291 356,332 180,070 6,342 (185,905) 167,802 - - - - - - - - - - - - - - - - - - - - - 248,696 172,291 356,332 180,070 6,342 (185,905) 167,802 2,268,539 1,421,889 2,761,233 324 76,410 117,387 439,053 2,517,235$ 1,594,180$ 3,117,565$ 180,394$ 82,752$ (68,518)$ 606,855$ Continued
Special Revenue
93

15.B

Local Law Community
COPS Enforcement Development General HOME
AB 3229 Block Grant Block Grant Plan Program

REVENUES
Taxes - $ - $ - $ - $ -$ Intergovernmental Revenue 222,976 - 1,003,716 - - Charges for Services - - - 105,900 - Investment Income - - - 6,198 - Miscellaneous - - - - - Total Revenues 222,976 - 1,003,716 112,098 -

EXPENDITURES
Current:

General Government - - - - - Public Safety - - - - - Community Development - - 746,144 - - Public Works - - - - - Libraries - - - - - Capital Outlay 187,740 - 257,572 - - Total Expenditures 187,740 - 1,003,716 - - Excess (Deficiency) of Revenues
Over Expenditures 35,236 - - 112,098 -

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - Transfers Out - - - - - Total Other Financing Sources (Uses) - - - - - Net Change in Fund Balances 35,236 - - 112,098 - Fund Balances, Beginning of Year 542,104 (90,848) 3,209 324,600 1,021,761 Fund Balances, End of Year 577,340$ (90,848) $ 3,209 $ 436,698$ 1,021,761$ Year Ended June 30, 2023
Special Revenue
City of Hemet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - Continued
94

15.B

Capital
Projects
Indian Active Public
CalHome 2001 - 2008 Housing Gaming Transportation Meeting Grant Home Grant NSP Program Authority Grants Grant Facilities -$ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - - - 3,997 - - 3,708 - - - - - - - - - - 3,997 - - 3,708 - - - - - - - - - - - - - - 6,000 16,559 - - - - - - - - - - - 2,891 - - - - - - - - - - - - 352,760 - 6,000 16,559 - - - 352,760 2,891 (6,000) (16,559) - 3,997 - (352,760) 817 - - - - - - - - - - - - - - - - - - - - - (6,000) (16,559) - 3,997 - (352,760) 817 550,334 1,428,758 788,395 3,960,079 6,411 - 222,656 544,334$ 1,412,199 $ 788,395 $ 3,964,076 $ 6,411 $ (352,760)$ 223,473 $ Continued
Special Revenue
95

15.B

Law
General Flood Enforcement Fire Park
Facilities Control Facilities Facilities Development

REVENUES
Taxes - $ - $ - $ -$ -$ Intergovernmental Revenue - - - - - Charges for Services 278,877 691,043 173,062 204,998 431,962 Investment Income 22,000 84,863 8,907 72,576 41,020 Miscellaneous - - - - - Total Revenues 300,877 775,906 181,969 277,574 472,982

EXPENDITURES
Current:

General Government - - - - - Public Safety - - - - - Community Development - - - - - Public Works 123,765 - 2,891 2,891 - Libraries - - - - - Capital Outlay - 8,634 - - 219,154 Total Expenditures 123,765 8,634 2,891 2,891 219,154 Excess (Deficiency) of Revenues
Over Expenditures 177,112 767,272 179,078 274,683 253,828

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - Transfers Out - - - - - Total Other Financing Sources (Uses) - - - - - Net Change in Fund Balances
177,112 767,272 179,078 274,683 253,828
Fund Balances, Beginning of Year 1,241,970 5,150,166 460,492 3,891,521 2,352,461 Fund Balances, End of Year 1,419,082$ 5,917,438 $ 639,570 $ 4,166,204$ 2,606,289$ City of Hemet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - Continued
Year Ended June 30, 2023
Capital Projects
96

15.B

Permanent
Fund
Valley LaSalle
Wide Library Equipment General Library
DVL Park Facilities Replacement Capital Endowment Totals -$ - $ - $ - $ -$ 2,901,824$ - - - - - 5,835,269 93,390 259,455 882,300 - - 8,643,663 5,991 17,125 79,004 - 23,638 698,037 - - 58,566 - - 129,408 99,381 276,580 1,019,870 - 23,638 18,208,201 2,891 - - - - 2,891 - - - - - 1,398,424 - - - - - 768,703 - - - - - 5,188,153 - 124,291 - - 18,779 143,070 - - 204,530 - - 7,566,326 2,891 124,291 204,530 - 18,779 15,067,567 96,490 152,289 815,340 - 4,859 3,140,634 - - - - - 20,000 - - - - - - - - - - - 20,000 96,490 152,289 815,340 - 4,859 3,160,634 319,491 973,861 4,242,160 8,564 1,012,879 48,883,536
415,981$ 1,126,150$ 5,057,500$ 8,564$ 1,017,738$ 52,044,170$ Capital Projects
97

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Charges for Services 60,000 $ 70,087 $ 10,087 $ Investment Income - 2,667 2,667
Miscellaneous - - - Total Revenues 60,000 72,754 12,754

EXPENDITURES
Current:

Public Safety 52,100 50,546 1,554
Capital Outlay - - - Total Expenditures 52,100 50,546 1,554
Excess (Deficiency) of Revenues
over Expenditures 7,900 22,208 14,308

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 7,900 22,208 14,308
Fund Balance, Beginning of Year 173,062 173,062 -
Fund Balance, End of Year 180,962$ 195,270$ 14,308$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Public Safety Towing Special Revenue Fund Year Ended June 30, 2023
98

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Licenses and Permits - $ - $ - $ Intergovernmental Revenue 4,563,400 4,271,311 (292,089) Investment Income 15,000 104,200 89,200
Miscellaneous - 220 220
Total Revenues 4,578,400 4,375,731 (202,669)

EXPENDITURES
Current:

Public Works 2,162,369 1,492,890 669,479
Capital Outlay 4,307,071 764,453 3,542,618
Total Expenditures 6,469,440 2,257,343 4,212,097
Excess (Deficiency) of Revenues
over Expenditures (1,891,040) 2,118,388 4,009,428

OTHER FINANCING SOURCES (USES)
Transfers In 20,000 20,000 -
Transfers Out - - -
Total Other Financing Sources (Uses) 20,000 20,000 - Net Change in Fund Balances (1,871,040) 2,138,388 4,009,428 Fund Balances, Beginning of Year 5,729,013 5,729,013 -
Fund Balance, End of Year 3,857,973 $ 7,867,401 $ 4,009,42 8$
City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Gas Tax Special Revenue Fund
Year Ended June 30, 2023
99

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 2,531,000 $ 2,901,824 $ 370,824 $
Investment Income 30,000 90,622 60,622
Charges for Services - - - Total Revenues 2,561,000 2,992,446 431,446

EXPENDITURES
Current:

Public Works - - - Capital Outlay 8,837,111 4,685,637 4,151,474
Total Expenditures 8,837,111 4,685,637 4,151,474 Excess (Deficiency) of Revenues
Over Expenditures (6,276,111) (1,693,191) 4,582,920 Fund Balance, Beginning of Year 6,427,558 6,427,558 -
Fund Balance, End of Year 151,447 $ 4,734,367 $ 4,582,920 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Measure A Special Revenue Fund
Year Ended June 30, 2023
100

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenue 112,000 $ 118,337 $ 6,337 $ Investment Income 1,000 17,330 16,330
Charges for Services - - - Total Revenues 113,000 135,667 22,667

EXPENDITURES
Current:

Public Works - - - Capital Outlay 903,291 681,961 221,330
Total Expenditures 903,291 681,961 221,330 Excess (Deficiency) of Revenues
Over Expenditures (790,291) (546,294) 243,997

OTHER FINANCING SOURCES (USES)
Transfers In - - - Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (790,291) (546,294) 243,997 Fund Balance, Beginning of Year 1,058,044 1,058,044 -
Fund Balance, End of Year 267,753 $ 511,750 $ 243,997 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Air Pollution Reduction Special Revenue Fund Year Ended June 30, 2023
101

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ - $ - $
Charges for Services 1,731,226 1,734,289 3,063
Investment Income - 34,340 34,340 Miscellaneous 50,000 70,622 20,622
Total Revenues 1,781,226 1,839,251 58,025

EXPENDITURES
Current:

Public Works 1,733,800 1,590,555 143,245
Capital Outlay - - - Total Expenditures 1,733,800 1,590,555 143,245
Excess (Deficiency) of Revenues
over Expenditures 47,426 248,696 201,270

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 47,426 248,696 201,270
Fund Balance, Beginning of Year 2,268,539 2,268,539 -
Fund Balance, End of Year 2,315,96 5$ 2,517,235$ 201,270$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Lighting/Landscaping Maintenance Special Revenue Fund Year Ended June 30, 2023
102

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ - $ - $
Charges for Services 396,703 388,550 (8,153) Investment Income - 23,875 23,875 Miscellaneous - - - Total Revenues 396,703 412,425 15,722

EXPENDITURES
Current:

Public Works 417,266 240,134 177,132
Capital Outlay - - - Total Expenditures 417,266 240,134 177,132 Excess (Deficiency) of Revenues
over Expenditures (20,563) 172,291 192,854

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (20,563) 172,291 192,854 Fund Balance, Beginning of Year 1,421,889 1,421,889 -
Fund Balance, End of Year 1,401,326 $ 1,594,180 $ 192,854 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Post Prop 218 Lighting Special Revenue Fund Year Ended June 30, 2023
103

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ - $ - $
Charges for Services 1,991,225 1,957,098 (34,127) Investment Income - 45,789 45,789 Miscellaneous - - - Total Revenues 1,991,225 2,002,887 11,662

EXPENDITURES
Current:

Public Works 1,925,893 1,646,555 279,338
Capital Outlay - - - Total Expenditures 1,925,893 1,646,555 279,338
Excess (Deficiency) of Revenues
over Expenditures 65,332 356,332 291,000

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 65,332 356,332 291,000 Fund Balance, Beginning of Year 2,761,233 2,761,233 -
Fund Balance, End of Year 2,826,56 5$ 3,117,565$ 291,000$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Post Prop 218 Landscape Special Revenue Fund Year Ended June 30, 2023
104

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Charges for Services 45,000 $ 263,981 $ 218,981 $ Investment Income - 1,670 1,670 Total Revenues 45,000 265,651 220,651

EXPENDITURES
Current:

Public Works 22,784 85,581 (62,797)
Capital Outlay - - - Total Expenditures 22,784 85,581 (62,797) Excess (Deficiency) of Revenues
Over Expenditures 22,216 180,070 157,854 Fund Balance, Beginning of Year 324 324 - Fund Balance, End of Year 22,540 $ 180,394 $ 157,854 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Public Works CFD Special Revenue Fund Year Ended June 30, 2023
105

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ -$ - $
Intergovernmental Revenues 2,500 2,480 (20) Investment Income 1,000 3,862 2,862
Miscellaneous - - -
Total Revenues 3,500 6,342 2,842

EXPENDITURES
Current:

Public Safety 7,822 - 7,822
Capital Outlay - - -
Total Expenditures 7,822 - 7,822 Excess (Deficiency) of Revenues
over Expenditures (4,322) 6,342 10,664

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (4,322) 6,342 10,664 Fund Balance, Beginning of Year 76,410 76,410 -
Fund Balance, End of Year 72,088 $ 82,752$ 10,664 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Asset Seizure Special Revenue Fund
Year Ended June 30, 2023
106

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ -$ - $
Intergovernmental Revenues 4,059,446 216,449 (3,842,997) Investment Income - - - Total Revenues 4,059,446 216,449 (3,842,997)

EXPENDITURES
Current:

Public Safety 4,057,789 402,354 3,655,435
Capital Outlay - - -
Total Expenditures 4,057,789 402,354 3,655,435
Excess (Deficiency) of Revenues
over Expenditures 1,657 (185,905) (187,562)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 1,657 (185,905) (187,562) Fund Balance, Beginning of Year 117,387 117,387 -
Fund Balance, End of Year 119,044 $ (68,518)$ (187,562)$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Public Safety Grants Special Revenue Fund Year Ended June 30, 2023
107

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenue - $ -$ -$ Charges for Services 987,500 1,108,671 121,171
Investment Income - 4,655 4,655 Total Revenues 987,500 1,113,326 125,826

EXPENDITURES
Current:

Public Safety 987,400 945,524 (41,876)
Capital Outlay - - -
Total Expenditures 987,400 945,524 41,876
Excess (Deficiency) of Revenues
over Expenditures 100 167,802 167,702

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 100 167,802 167,702
Fund Balance, Beginning of Year 439,053 439,053 -
Fund Balance, End of Year 439,153$ 606,855$ 167,702$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Public Safety CFD Special Revenue Fund Year Ended June 30, 2023
108

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ -$ - $
Intergovernmental Revenues 218,469 222,976 4,507 Investment Income 130,000 - (130,000) Total Revenues 348,469 222,976 (125,493)

EXPENDITURES
Current:

Public Safety - - -
Capital Outlay 347,958 187,740 160,218
Total Expenditures 347,958 187,740 160,218
Excess (Deficiency) of Revenues
over Expenditures 511 35,236 34,725

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 511 35,236 34,725 Fund Balance, Beginning of Year 542,104 542,104 -
Fund Balance, End of Year 542,615$ 577,340$ 34,725 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - COPS/AB 3229 Special Revenue Fund
Year Ended June 30, 2023
109

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ -$ - $
Intergovernmental Revenues - - - Total Revenues - - -

EXPENDITURES
Current:

Public Safety - - -
Capital Outlay - - -
Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures - - -

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances - - - Fund Balance, Beginning of Year (90,848) (90,848) - Fund Balance, End of Year (90,848)$ (90,848)$ - $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Local Law Enforcement Block Grant Special Revenue Fund Year Ended June 30, 2023
110

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ - $ - $
Intergovernmental Revenues 1,394,623 1,003,716 (390,907) Total Revenues 1,394,623 1,003,716 (390,907)

EXPENDITURES
Current:

General Governmental - - - Community Development 1,136,879 746,144 390,735 Capital Outlay 1,133,351 257,572 875,779 Total Expenditures 2,270,230 1,003,716 1,266,514 Excess (Deficiency) of Revenues
over Expenditures (875,607) - 875,607

OTHER FINANCING SOURCES (USES)
Transfers In - - - Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (875,607) - 875,607 Fund Balance, Beginning of Year 3,209 3,209 - Fund Balance, End of Year (872,398 )$ 3,209$ 875,607$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Community Development Block Grant Special Revenue Fund Year Ended June 30, 2023
111

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ -$ - $
Charges for Services 135,000 105,900 (29,100) Investment Income 1,200 6,198 4,998
Total Revenues 136,200 112,098 (24,102)

EXPENDITURES
Current:

General Government 47,043 - 47,043 Capital Outlay - - -
Total Expenditures 47,043 - 47,043 Excess (Deficiency) of Revenues
over Expenditures 89,157 112,098 22,941

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 89,157 112,098 22,941 Fund Balance, Beginning of Year 324,600 324,600 -
Fund Balance, End of Year 413,757 $ 436,698$ 22,941 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Plan Special Revenue Fund
Year Ended June 30, 2023
112

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ - $ - $
Investment Income 1,000 - (1,000) Total Revenues 1,000 - (1,000)

EXPENDITURES
Current:

Community Development - - - Capital Outlay - - - Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures 1,000 - (1,000)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 1,000 - (1,000) Fund Balance, Beginning of Year 1,021,761 1,021,761 -
Fund Balance, End of Year 1,022,761 $ 1,021,761 $ (1,000) $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - HOME Program Special Revenue Fund
Year Ended June 30, 2023
113

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 1,600 $ -$ (1,600)$ Intergovernmental Revenues - - - Total Revenues 1,600 - (1,600)

EXPENDITURES
Current:

Community Development - 6,000 (6,000) Public Works - - -
Capital Outlay - - -
Total Expenditures - 6,000 (6,000) Excess (Deficiency) of Revenues
over Expenditures 1,600 (6,000) (7,600)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 1,600 (6,000) (7,600) Fund Balance, Beginning of Year 550,334 550,334 -
Fund Balance, End of Year 551,934 $ 544,334$ (7,600)$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - CalHome Grant Special Revenue Fund
Year Ended June 30, 2023
114

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ - $ - $
Intergovernmental Revenues - - - Investment Income 11,000 - (11,000) Miscellaneous - - - Total Revenues 11,000 - (11,000)

EXPENDITURES
Current:

Community Development - 16,559 (16,559) Public Works - - -
Capital Outlay - - - Total Expenditures - 16,559 (16,559) Excess (Deficiency) of Revenues
over Expenditures 11,000 (16,559) (27,559)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 11,000 (16,559) (27,559) Fund Balance, Beginning of Year 1,428,758 1,428,758 -
Fund Balance, End of Year 1,439,75 8$ 1,412,199$ (27,559)$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - 2001- 2008 Home Grant Special Revenue Fund Year Ended June 30, 2023
115

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ - $ - $
Intergovernmental Revenues - - - Investment Income - - - Miscellaneous - - - Total Revenues - - -

EXPENDITURES
Current:

Public Works - - -
Community Development - - - Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures - - -

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances - - - Fund Balance, Beginning of Year 788,395 788,395 - Fund Balance, End of Year 788,39 5$ 788,395$ -$
City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Neighborhood Stabilization Program Grant Special Revenue Fund Year Ended June 30, 2023
116

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ - $ - $
Intergovernmental Revenues - - - Investment Income 1,500 3,997 2,497 Total Revenues - 3,997 3,997

EXPENDITURES
Current:

Public Works - - -
Capital Outlay - - - Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures - 3,997 3,997

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances - 3,997 3,997 Fund Balance, Beginning of Year 3,960,079 3,960,079 -
Fund Balance, End of Year 3,960,07 9$ 3,964,076$ 3,997$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Housing Authority Special Revenue Fund Year Ended June 30, 2023
117

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ - $ - $
Intergovernmental Revenues - - - Investment Income - - - Total Revenues - - -

EXPENDITURES
Current:

Public Works - - -
Capital Outlay - - - Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures - - -

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances - - - Fund Balance, Beginning of Year 6,411 6,411 -
Fund Balance, End of Year 6,411 $ 6,411 $ - $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Indian Gaming Grant Special Revenue Fund Year Ended June 30, 2023
118

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenues - $ -$ - $ Charges for Services - - - Investment Income 3,000 3,708 708
Total Revenues 3,000 3,708 708

EXPENDITURES
Current:

Public Works 3,849 2,891 958
Libraries - - -
Capital Outlay - - -
Total Expenditures 3,849 2,891 958
Excess (Deficiency) of Revenues
over Expenditures (849) 817 1,666

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (849) 817 1,666 Fund Balance, Beginning of Year 222,656 222,656 -
Fund Balance, End of Year 221,807 $ 223,473$ 1,666 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Public Meeting Facilities Capital Projects Fund Year Ended June 30, 2023
119

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenues - $ - $ - $ Charges for Services 351,000 278,877 (72,123) Investment Income 8,000 22,000 14,000 Miscellaneous - - - Total Revenues 359,000 300,877 (58,123)

EXPENDITURES
Current:

Public Works 123,063 123,765 (702)
Capital Outlay 367,600 - 367,600 Total Expenditures 490,663 123,765 366,898
Excess (Deficiency) of Revenues
over Expenditures (131,663) 177,112 308,775

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (131,663) 177,112 308,775 Fund Balance, Beginning of Year 1,241,970 1,241,970 -
Fund Balance, End of Year 1,110,307$ 1,419,082$ 308,775$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Facilities Capital Projects Fund Year Ended June 30, 2023
120

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenues - $ - $ -$ Charges for Services 805,200 691,043 (114,157) Investment Income 45,000 84,863 39,863
Miscellaneous - - -
Total Revenues 850,200 775,906 (74,294)

EXPENDITURES
Current:

Public Works - - -
Capital Outlay 2,085,794 8,634 2,077,160
Total Expenditures 2,085,794 8,634 2,077,160 Excess (Deficiency) of Revenues
over Expenditures (1,235,594) 767,272 2,002,866

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (1,235,594) 767,272 2,002,866 Fund Balance, Beginning of Year 5,150,166 5,150,166 -
Fund Balance, End of Year 3,914,572$ 5,917,438$ 2,002,866$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Flood Control Capital Projects Fund Year Ended June 30, 2023
121

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenues - $ -$ - $ Charges for Services 212,000 173,062 (38,938) Investment Income 1,100 8,907 7,807
Total Revenues 213,100 181,969 (31,131)

EXPENDITURES
Current:

Public Works 3,849 2,891 958
Capital Outlay - - -
Total Expenditures 3,849 2,891 958
Excess (Deficiency) of Revenues
over Expenditures 209,251 179,078 (30,173)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 209,251 179,078 (30,173) Fund Balance, Beginning of Year 460,492 460,492 -
Fund Balance, End of Year 669,743 $ 639,570$ (30,173)$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Law Enforcement Facilities Capital Projects Fund Year Ended June 30, 2023
122

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenues - $ - $ - $ Charges for Services 252,000 204,998 (47,002) Investment Income 50,000 72,576 22,576 Total Revenues 302,000 277,574 (24,426)

EXPENDITURES
Current:

Public Works 3,849 2,891 958
Capital Outlay - - - Total Expenditures 3,849 2,891 958
Excess (Deficiency) of Revenues
over Expenditures 298,151 274,683 (23,468)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 298,151 274,683 (23,468) Fund Balance, Beginning of Year 3,891,521 3,891,521 -
Fund Balance, End of Year 4,189,672 $ 4,166,204 $ (23,468) $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Fire Facilities Capital Projects Fund Year Ended June 30, 2023
123

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenues - $ - $ - $ Charges for Services 653,900 431,962 (221,938) Investment Income 23,000 41,020 18,020 Total Revenues 676,900 472,982 (203,918)

EXPENDITURES
Current:

Public Works - - -
Capital Outlay 345,463 219,154 126,309
Total Expenditures 345,463 219,154 126,309 Excess (Deficiency) of Revenues
over Expenditures 331,437 253,828 (77,609)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 331,437 253,828 (77,609) Fund Balance, Beginning of Year 2,352,461 2,352,461 -
Fund Balance, End of Year 2,683,89 8$ 2,606,289$ (77,609)$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Park Development Capital Projects Fund Year Ended June 30, 2023
124

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenues - $ -$ - $ Charges for Services 127,400 93,390 (34,010) Investment Income 1,500 5,991 4,491
Total Revenues 128,900 99,381 (29,519)

EXPENDITURES
Current:

General Government 3,849 2,891 958
Capital Outlay - - -
Total Expenditures 3,849 2,891 958
Excess (Deficiency) of Revenues
over Expenditures 125,051 96,490 (28,561)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 125,051 96,490 (28,561) Fund Balance, Beginning of Year 319,491 319,491 -
Fund Balance, End of Year 444,542 $ 415,981$ (28,561)$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Valley Wide DVL Park Capital Projects Fund Year Ended June 30, 2023
125

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenues - $ - $ - $ Charges for Services 330,800 259,455 (71,345) Investment Income 8,500 17,125 8,625 Miscellaneous - - - Total Revenues 339,300 276,580 (62,720)

EXPENDITURES
Current:

Libraries 190,985 124,291 66,694
Capital Outlay - - - Total Expenditures 190,985 124,291 66,694
Excess (Deficiency) of Revenues
over Expenditures 148,315 152,289 3,974

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 148,315 152,289 3,974 Fund Balance, Beginning of Year 973,861 973,861 -
Fund Balance, End of Year 1,122,176 $ 1,126,150 $ 3,974 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Library Facilities Capital Projects Fund Year Ended June 30, 2023
126

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenues - $ - $ - $ Charges for Services 885,300 882,300 (3,000) Investment Income - 79,004 79,004 Miscellaneous - 58,566 58,566
Total Revenues 885,300 1,019,870 134,570

EXPENDITURES
Current:

Public Works - - -
Capital Outlay 770,393 204,530 565,863
Total Expenditures 770,393 204,530 565,863 Excess (Deficiency) of Revenues
over Expenditures 114,907 815,340 700,433

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 114,907 815,340 700,433 Fund Balance, Beginning of Year 4,242,160 4,242,160 -
Fund Balance, End of Year 4,357,067 $ 5,057,500 $ 700,433 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Equipment Replacement Capital Projects Fund Year Ended June 30, 2023
127

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenues - $ -$ - $ Charges for Services - - - Investment Income - - - Total Revenues - - -

EXPENDITURES
Current:

General Governmental - - - Public Works - - -
Capital Outlay - - -
Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures - - -

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances - - - Fund Balance, Beginning of Year 8,564 8,564 -
Fund Balance, End of Year 8,564 $ 8,564$ - $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Capital Capital Projects Fund Year Ended June 30, 2023
128

15.B

Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental Revenues - $ - $ - $ Charges for Services - - - Investment Income - 23,638 23,638 Total Revenues - 23,638 23,638

EXPENDITURES
Current:

General Governmental - - - Libraries 19,200 18,779 421
Capital Outlay - - - Total Expenditures 19,200 18,779 421
Excess (Deficiency) of Revenues
over Expenditures (19,200) 4,859 24,059

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (19,200) 4,859 24,059 Fund Balance, Beginning of Year 1,012,879 1,012,879 -
Fund Balance, End of Year 993,679 $ 1,017,73 8$ 24,059$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - LaSalle Library Endowment Permanent Fund Year Ended June 30, 2023
129

15.B

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130

15.B

City of Hemet
Internal Service Funds

INTERNAL SERVICE FUNDS

Administrative Services - Accounts for the central administrative services funded by i nterdepartmental allocation.

Workers' Compensation - Accounts for the financial transactions of a self-insured wo rkers' compensation program

Medical Insurance - Accounts for the financial transactions of a self-insured em ployer active employee medical, dental and vision insurance program.

Liability Insurance - Accounts for the financial transactions of an external liability program.

OPEB - Accounts for financial transactions of a self-insured employer retiree medical, dental and vision insurance program.

131

15.B

Workers' Medical
Admin. Compensation Insurance
Services Admin Admin
ASSETS
Current:

Cash and Investments 5,364,567 $ 2,411,904 $ 43,148 $ Accounts Receivable 454 - - Due from Other Funds 134,366 - - Due from Other Governments - - - Prepaid Assets 522,661 - - Inventory 169,110 - -
Total Current Assets 6,191,158 2,411,904 43,148
Noncurrent Assets:

Construction in Progress - - - Capital Assets 4,637,175 - - Less Accumulated Depreciation (3,626,852) - - Total Noncurrent Assets 1,010,323 - - Total Assets 7,201,481 2,411,904 43,148

LIABILITIES
Current Liabilities:

Accounts Payable 333,121 37,169 9,937 Accrued Salaries and Benefits 13,529 1,458 - Due to Other Funds - - - Current Portion of Long-term Liabilities:

Claims Payable - 206,099 17,843 Total Current Liabilities 346,650 244,726 27,780
Noncurrent Liabilities:

Claims Payable - 206,099 17,844 Total Noncurrent Liabilities - 206,099 17,844 Total Liabilities 346,650 450,825 45,624

NET POSITION
Net Investment in Capital Assets 1,010,323 - - Unrestricted 5,844,508 1,961,079 (2,476)
Total Net Position 6,854,831$ 1,961,079$ (2,476)$
City of Hemet
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
132

15.B

Liability
Insurance OPEB Total
100,000$ 1,871,878$ 9,791,497$
- - 454
- - 134,366
- - -
- 20,048 542,709
- - 169,110
100,000 1,891,926 10,638,136
- - -
- - 4,637,175 - - (3,626,852) - - 1,010,323 100,000 1,891,926 11,648,459
51,428 9,934 441,589
640 335 15,962
134,366 - 134,366
1,029,438 11,589 1,264,969
1,215,872 21,858 1,856,886
2,911,635 - 3,135,578
2,911,635 - 3,135,578
4,127,507 21,858 4,992,464
- - 1,010,323 (4,027,507) 1,870,068 5,645,672
(4,027,507)$ 1,870,068$ 6,655,995$
133

15.B

Workers' Medical
Admin. Compensation Insurance
Services Admin Admin

OPERATING REVENUE
Charges for Services 5,692,839 $ 1,450,999 $ 318,024 $ Miscellaneous 88,748 - -
Total Operating Revenue 5,781,587 1,450,999 318,024

OPERATING EXPENSES
Personnel Services 1,830,522 162,580 -
Parts and Supplies 584,844 - -
Maintenance 1,430,815 - -
Utilities 945,770 - -
Contracts, Rents and Leases 481,158 55,236 7,767 Insurance 134,700 1,362,365 -
Claims and Judgments 639,250 - 302,759 General Office - - - Depreciation 101,571 - -
Total Operating Expenses 6,148,630 1,580,181 310,526 Operating Income (Loss) (367,043) (129,182) 7,498 Net Position, Beginning 7,221,874 2,090,261 (9,974)
Net Position, Ending 6,854,831 $ 1,961,079 $ (2,476) $ City of Hemet
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
Year Ended June 30, 2023
134

15.B

Liability
Insurance OPEB Total
1,853,300$ 4,969,590 $ 14,284,752 $
666 - 89,414
1,853,966 4,969,590 14,374,166
118,105 37,386 2,148,593
- - 584,844
- - 1,430,815 - - 945,770
44,260 - 588,421
2,026,506 4,073,279 7,596,850
- - 942,009
- - -
- - 101,571
2,188,871 4,110,665 14,338,873
(334,905) 858,925 35,293
(3,692,602) 1,011,143 6,620,702
(4,027,507)$ 1,870,068 $ 6,655,995 $
135

15.B

Workers' Medical
Admin. Compensation Insurance
Services Admin Admin

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from User Departments 5,781,539$ 1,450,999$ 318,024$ Cash Paid to Suppliers for Goods and Services (4,295,385) (1,385,737) 2,170 Cash Paid to Employees for Services (1,846,238) (165,119) - Cash Payments for Insurance and Claims (639,250) (30,089) (316,523) Net Cash From Operating Activities (999,334) (129,946) 3,671

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES
Cash Paid (to) From Other Funds (134,366) - - Net Cash From Noncapital and Related
Financing Activities (134,366) - -

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (438,893) - - Net Cash From Capital and Related
Financing Activities (438,893) - -
Net Increase (Decrease) in Cash and Cash Equivalents (1,572,593) (129,946) 3,671 Cash and Cash Equivalents, Beginning of the Year 6,937,160 2,541,850 39,477 Cash and Cash Equivalents, End of the Year 5,364,567$ 2,411,904$ 43,148$ Reconciliation of Operating Income (Loss) to
Net Cash from Operating Activities:

Operating Income (Loss) (367,043)$ (129,182)$ 7,498$ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation 101,571 - -
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (48) - - (Increase) Decrease in Prepaid Assets (522,661) - - (Increase) Decrease in Inventory 10,117 - - Increase (Decrease) in Accounts Payable (205,554) 31,864 9,937 Increase (Decrease) in Accrued Salaries and Benefits (15,716) (2,539) - Increase (Decrease) in Claims Payable - (30,089) (13,764) Net Cash from Operating Activities (999,334)$ (129,946) $ 3,671 $ City of Hemet
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2023
136

15.B

Liability
Insurance OPEB Total
1,869,425$ 4,969,590 $ 14,389,577 $
(2,027,729) (4,290,790) (11,997,471)
(119,803) (37,972) (2,169,132)
11,611 (16,308) (990,559)
(266,496) 624,520 (767,585)
134,366 - -
134,366 - -
- - (438,893) - - (438,893) (132,130) 624,520 (1,206,478)
232,130 1,247,358 10,997,975
100,000$ 1,871,878 $ 9,791,497 $
(334,905)$ 858,925 $ 35,293 $
- - 101,571
15,459 - 15,411
- (20,048) (542,709)
- - 10,117
43,037 (197,463) (318,179)
(1,698) (586) (20,539)
11,611 (16,308) (48,550)
(266,496)$ 624,520 $ (767,585) $
137

15.B

City of Hemet
Custodial Funds

CUSTODIAL FUNDS

McSweeny - Accounts for the McSweeny dev elopment projects administered by the City on behalf of the McSweeny developers.

Pass Thru Fees - Accounts for the developer fees collected by the City on beh alf of the County of Riverside.

Those fees are remitted periodically to the County.

Heartland 1999 - 1 CFD 2006 Refunding Series - Accounts for the financial transacting of a special tax bond issue which is financing the off-site improvements of a housing community and a golf course.

138

15.B

Total
Pass Thru Heartland Custodial
McSweeny Fees CFD 2006 Funds
ASSETS
Cash and Investments 461,171 $ 99,605 $ - $ 560,776$ Accounts Receivables - - 9,230 9,230 Due from Other Funds - - - - Cash and Investments with Fiscal Agent - - 1,080,732 1,080,732 Total Assets 461,171 99,605 1,089,962 1,650,738

LIABILITIES
Accounts Payable 251,596 1 - 251,597 Due to City of Hemet - - 420,963 420,963 Deposits - - - - Total Liabilities 251,596 1 420,963 672,560

NET POSITION
Held for the Benefit of Other Organiztions 209,575 99,604 668,999 978,178 Total Net Position 209,575 $ 99,604 $ 668,999 $ 978,178 $ City of Hemet
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
June 30, 2023
139

15.B

Total
Pass Thru Heartland Custodial
McSweeny Fees CFD 2006 Funds

ADDITIONS
Contributions:

Taxes and assessments collected for others - $ 679,605$ 763,890 $ 1,443,495 $ Developer Contributions 1,001,125 - - 1,001,125 Investment Earnings:

Interest Income 5,270 - 25,681 30,951 Total Additions 1,006,395 679,605 789,571 2,475,571

DEDUCTIONS
Payments on behalf of Others 918,712 - - 918,712 Payments to Other Agencies
for Service Charges Collected - 582,995 752,873 1,335,868 Total Deductions 918,712 582,995 752,873 2,254,580 Net Increase (decrease) in fiduciary net position 87,683 96,610 36,698 220,991 Net Position, beginning of the year 121,892 2,994 632,301 757,187 Net Position, end of the year 209,575$ 99,604$ 668,999$ 978,178$ City of Hemet
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
Year Ended June 30, 2023
140

15.B

STATISTICAL SECTION
141

15.B

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142

15.B

City of Hemet (unaudited)
Description of Statistical Section Contents
June 30, 2023

This part of the City of Hemet's Annual Comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.

Contents: Pa ges

Financial Trends theses schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time

144

Revenue Capacity these schedules contain information to help the reader assess the City's most significant local revenue source, the property tax

154

Debt Capacity these schedules present information to help the r eader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future

159

Demographic and Economic Information these schedules offer demo graphic and economic indicators to help the reader understand the envir onment within which the City's financial activities take place

164

Operating Information these schedules contain service and infra structure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs

166

143

15.B

City of Hemet
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2014 2015 2016 2017 2018
Governmental activities
Net Investment in Capital Assets 325,096 $ 324,343 $ 321,098 $ 315,946 $ 312,748 $ Restricted 36,986 39,006 43,671 48,220 55,279 Unrestricted 20,224 (53,711) (45,551) (58,471) (95,864) Total governmental activities net position 382,307 $ 309,638 $ 319,218 $ 305,695 $ 272,163 $ Business-type activities
Net Investment in Capital Assets 4,171 $ 3,740 $ 3,522 $ 3,898 $ 4,174 $ Restricted - - - - - Unrestricted 7,828 3,606 6,550 7,068 (845) Total business-type activities net position 12,000 $ 7,346$ 10,072$ 10,966 $ 3,329$ Primary government
Net Investment in Capital Assets 329,267 $ 328,083 $ 324,620 $ 319,844 $ 316,922 $ Restricted 36,986 39,006 43,671 48,220 55,279 Unrestricted 28,053 (50,105) (39,001) (51,403) (96,709) Total primary government net position 394,307 $ 316,984 $ 329,290 $ 316,661 $ 275,492 $ Source: City of Hemet
Fiscal Year
Statistical Table 1
144

15.B

City of Hemet
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Governmental activities
Net Investment in Capital Assets
Restricted
Unrestricted
Total governmental activities net position
Business-type activities
Net Investment in Capital Assets
Restricted
Unrestricted
Total business-type activities net position
Primary government
Net Investment in Capital Assets
Restricted
Unrestricted
Total primary government net position
Source: City of Hemet
2019 2020 2021 2022 2023
309,342 $ 308,639 $ 303,775 $ 302,783 $ 308,207 $
64,207 67,601 53,804$ 60,649 $ 62,663$
(99,715) (105,649) (78,520) $ (54,833) $ (37,757) $ 273,834 $ 270,591 $ 279,059 $ 308,599 $ 333,113 $
3,893$ 4,532 $ 3,973 $ 3,146 $ 2,599 $ - - - $ - $ - $ 1,868 14,760 19,623$ 20,282 $ 24,877$
5,761$ 19,292 $ 23,596$ 23,428 $ 27,476$
313,235 $ 313,171 $ 307,748 $ 305,929 $ 310,806 $
64,207 67,601 53,804 60,649 62,663 (97,847) (90,889) (58,897) (34,551) (12,880) 279,595 $ 289,883 $ 302,655 $ 332,027 $ 360,589 $
Fiscal Year
Statistical Table 1
145

15.B

City of Hemet
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2014 2015 2016 2017 2018
Expenses
Governmental activities:

General government 3,082 $ 3,053 $ 1,142 $ 2,777 $ 3,511 $ Public Safety 28,308 28,947 21,566 34,746 43,067 Community development 6,627 5,325 3,952 4,874 5,729 Public Works 11,804 12,139 11,652 11,696 13,766 Sanitation 1,921 2,201 2,070 2,048 2,248 Parks 906 843 1,015 1,176 1,407 Libraries 1,751 1,855 1,788 2,085 2,125 Interest and related charges on long-term debt - - - - Total governmental activities expenses 54,397 54,363 43,186 59,402 71,853 Business-type activities:

Refuse - - - - - Water 7,478 7,919 7,643 9,966 12,052 Total business-type activities expenses 7,478 7,919 7,643 9,966 12,052 Total primary government expenses 61,875$ 62,282 $ 50,829 $ 69,368 $ 83,905$ Program Revenues
Governmental activities:

Charges for services:

General government 1,606$ 600 $ 586 $ 602 $ 759 $ Public safety 1,069 681 760 1,207 1,289 Community development 718 3,197 2,674 2,261 2,824 Public Works 4,810 2,577 2,724 3,542 3,912
Sanitation 2,883 2,876 3,412 3,918 4,003 Other activities 35 44 2,764 58 159 Operating grants and contributions 2,454 2,742 3,349 2,559 2,719 Capital grants and contributions 5,850 7,211 7,658 6,220 6,503 Total government activities program revenues 19,425 19,928 23,928 20,367 22,168 Business-type activities
Charges for services:

Refuse - - - - - Water 7,371 7,090 10,306 11,460 10,602 Operating grants and contributions - - - - - Capital grants and contributions - - - - - Total business-type activities program revenues 7,371 7,090 10,306 11,460 10,602 Total primary government program revenues 26,796$ 27,018 $ 34,234 $ 31,827 $ 32,770$ Fiscal Year
Statistical Table 2
146

15.B

City of Hemet
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Expenses
Governmental activities:

General government
Public Safety
Community development
Public Works
Sanitation
Parks
Libraries
Interest and related charges on long-term debt
Total governmental activities expenses
Business-type activities:

Refuse
Water
Total business-type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:

Charges for services:

General government
Public safety
Community development
Public Works
Sanitation
Other activities
Operating grants and contributions
Capital grants and contributions
Total government activities program revenues
Business-type activities
Charges for services:

Refuse
Water
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues
Total primary government program revenues
2019
2020 2021 2022 2023
6,181$ 4,142 $ 1,964 $ 2,343 $ 3,633 $
40,916 48,122 46,711 42,656 55,036
5,535 5,056 5,420 6,065 6,708 11,962 12,526 10,728 9,011 13,442
2,167 1,838 2,437 2,846 2,925 1,205 1,433 1,052 1,513 1,020 2,026 1,884 1,892 1,487 1,993 - - - - - 69,992 75,001 70,204 65,921 84,756
- - - - - 9,261 9,845 10,222 9,687 10,395 9,261 9,845 10,222 9,687 10,395 79,253 $ 84,846 $ 80,426 $ 75,608 $ 95,151$
793$ 510 $ 2,589 $ 2,539 $ 3,157 $ 1,049 1,134 1,892 4,876 17,039 2,824 2,482 251 244 288 3,944 4,531 6,926 10,159 10,047 3,
969 4,372 4,339 4,131 5,069
141 28 2 12 16 2,455 2,005 4,039 3,136 2,821 7,962 7,890 7,758 12,105 11,567 23,137 22,952 27,796 37,202 50,004
- - - - - 11,445 11,993 12,114 14,073 14,017
- 10,416 - - - - - - - - 11,445 22,409 12,114 14,073 14,017
34,582 $ 45,361 $ 39,910 $ 51,275 $ 64,021$
Fiscal Year
Statistical Table 2
147

15.B

City of Hemet
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2014 2015 2016 2017 2018
Net (expense)/revenue
Governmental activities (34,972) $ (34,972) $ (30,431) $ (39,034) $ (49,685) $ Business-type activities (107) (107) 2,410 1,495 (1,450) Total primary government net expense (35,079)$ (35,079) $ (28,021) $ (37,539) $ (51,135) $ General Revenues and Other Changes in
Net Positon
Governmental activities:

Taxes
Property taxes 6,207 6,207 6,208 6,485 7,123 Transient occupancy taxes 643 643 854 963 1,026 Sales taxes* 11,043 11,043 12,275 14,175 23,446 Motor vehicle in lieu taxes 4,996 4,996 5,715 6,061 6,393 Franchise and other taxes 4,875 4,875 5,053 4,964 5,048 Investment income 565 565 1,415 194 403 Miscellaneous 184 184 765 439 649 Transfers (187) (187) 205 350 138 Total governmental activities 28,327 28,327 32,490 33,631 44,226 Business-type activities
Investment income 71 71 166 (25) 21 Gain (loss) on sale/disposal of assets - - - - - Miscellaneous 176 176 84 45 81 Transfers 187 187 (205) (350) (138)
Total business-type activities 434 434 45 (330) (36) Total primary government 28,760$ 28,760 $ 32,535 $ 33,301 $ 44,190$ Change in Net Position
Governmental activities (6,646)$ (6,646) $ 2,059$ (5,403) $ (5,459)$ Business-type activities 327 327 2,455 1,165 (1,487) Total primary government (6,319)$ (6,319) $ 4,514$ (4,238) $ (6,946)$ *Sales taxes are one of the highest revenue generating items for the City. This includes, Sales and Use Tax (including M e
Source: City of Hemet
Fiscal Year
Statistical Table 2
148

15.B

City of Hemet
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Net (expense)/revenue
Governmental activities
Business-type activities
Total primary government net expense
General Revenues and Other Changes in
Net Positon
Governmental activities:

Taxes
Property taxes
Transient occupancy taxes
Sales taxes*
Motor vehicle in lieu taxes
Franchise and other taxes
Investment income
Miscellaneous
Transfers
Total governmental activities
Business-type activities
Investment income
Gain (loss) on sale/disposal of assets
Miscellaneous
Transfers
Total business-type activities
Total primary government
Change in Net Position
Governmental activities
Business-type activities
Total primary government
*Sales taxes are one of the highest revenue genera
t
Source: City of Hemet
2019 2020 2021 2022 2023
(46,855) $ (51,151) $ (42,408) $ (28,719) $ (34,762) $ 2,185 12,563 1,892 4,386 3,622 (44,670) $ (38,588) $ (40,516) $ (24,333) $ (31,140) $ 7,718 7,919 8,028 8,676 9,389 975 770 891 1,039 942 24,986 25,352 32,268 35,066 34,056
6,786 7,073 7,394 7,758 8,547 5,117 5,173 5,491 5,848 5,599 2,425 957 303 (441) 271 357 223 42 254 279 163 243 248 27 151 48,527 47,710 54,665 58,227 59,234
350 226 (2) (494) 578 - - - - - 60 16 - - - (163) (243) (248) (27) (151) 247 (1) (250) (521) 427 48,774 $ 47,709 $ 54,415 $ 57,706 $ 59,661$
1,672$ (3,441) $ 12,259 $ 29,508 $ 24,473$
2,432 12,562 1,641 3,864 4,048 4,104$ 9,121 $ 13,900$ 33,372 $ 28,521$
easure U) and Measure A.

Fiscal Year
Statistical Table 2
149

15.B

City of Hemet
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2014 2015 2016 2017 2018
General Fund
Nonspendable 12 13 7 7 4 Restricted 873 1,075 1,253 2,469 1,253 Committed 7,270 7,288 7,727 8,295 9,303 Assigned 6,362 314 215 215 215 Unassigned 4,397 8,226 6,084 1,882 5,920 Total general fund 18,913$ 16,916 $ 15,287 $ 12,868 $ 16,695$ All other governmental funds
Nonspendable 1,354 1,000 1,000 1,000 1,000 Restricted 33,741 36,931 41,418 43,536 46,330 Committed - - - - - Assigned 4,554 4,759 6,586 6,350 4,081 Unassigned, reported in:

Special revenue funds (174) (276) (297) (81) (180) Capital projects funds - - - - - Total all other governmental funds 39,476$ 42,414 $ 48,707 $ 50,805 $ 51,231$ Source: City of Hemet
Fiscal Year
Statistical Table 3
150

15.B

City of Hemet
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds
Nonspendable
Restricted
Committed
Assigned
Unassigned, reported in:

Special revenue funds
Capital projects funds
Total all other governmental funds
Source: City of Hemet
2019 2020 2021 2022 2023
8 660 665 2,114 2,137 12,805 1,316 1,499 1,926 1,524
8,214 20,921 23,776 26,387 26,632
134 890 1,945 1,749 3,106 1,086 2,926 11,710 21,884 30,214
22,247 $ 26,713 $ 39,595 $ 54,060 $ 63,613$
1,000 1,000 1,000 1,000 1,000
50,374 51,884 57,161 66,894 69,796
- - - - 5,861 4,056 3,776 3,906 4,250 7,833
(191) (264) (102) (91) (716) - - - -
55,239 $ 56,396 $ 61,965 $ 72,053 $ 83,774$
Fiscal Year
Statistical Table 3
151

15.B

City of Hemet
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2014 2015 2016 2017 2018
Revenues
Taxes 24,275 $ 30,083 $ 31,725 $ 34,284 $ 44,799$ Licenses and permits 1,996 2,119 1,974 1,679 1,784 Intergovernmental revenues 10,033 6,638 6,712 5,677 5,792 Charges for services 10,107 8,966 9,988 10,393 11,307 Fines and forfeitures 400 379 412 443 491 Investment income 565 558 1,430 197 402 Other contributions - - - - - Miscellaneous 184 646 3,823 679 1,261 Total revenues 47,561 49,389 56,064 53,352 65,836 Expenditures
General government 2,412 2,812 2,307 2,103 2,195 Public safety 26,915 28,017 30,339 32,497 38,450 Community development 6,627 5,248 4,793 4,844 4,856 Public works 5,692 5,562 5,738 5,488 8,804 Sanitation 1,921 2,162 2,035 1,999 2,193 Parks 906 850 1,120 1,205 1,248 Libraries 1,399 1,419 1,506 1,642 1,600 Capital outlay 2,422 4,776 3,772 2,457 2,193
Debt service
Principal - - - - - Interest - - - - - SERAF Obligation - - - - - Fiscal-administrative charges - - - - - Total expenditures 48,294 50,846 51,611 52,235 61,539 Excess (deficiency) of
revenues over expenditures (733) (1,457) 4,453 1,117 4,297 Other financing sources (uses)
Software Subscriptions - - - - - Transfers in 1,985 1,231 713 325 467 Transfers out (2,313) (1,231) (490) (1,086) (513) Issuance of debt - 8 11 - - Total other financing sources (328) 8 234 (761) (46) (uses)
Net change in fund balances (1,061)$ (1,449)$ 4,687$ 356$ 4,251$ Debt service as a percentage of
noncapital expenditures 0.00% 0.00% 0.00% 0.00% 0.00%
Source: City of Hemet
Fiscal Year
Statistical Table 4
152

15.B

City of Hemet
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Revenues
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Investment income
Other contributions
Miscellaneous
Total revenues
Expenditures
General government
Public safety
Community development
Public works
Sanitation
Parks
Libraries
Capital outlay
Debt service
Principal
Interest
SERAF Obligation
Fiscal-administrative charges
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources (uses)
Software Subscriptions
Transfers in
Transfers out
Issuance of debt
Total other financing sources
(uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
Source: City of Hemet
2019 2020 2021 2022 2023
47,526$ 48,194 $ 46,678 $ 53,402 $ 52,888$ 1,968 5,371 2,104 4,287 4,433 5,854 5,495 10,157 17,994 30,313 11,152 7,248 3,234 19,740 18,383 446 336 234 199 276 2,425 1,815 299 (1,335) 1,276 - - - - - 2,204 1,960 8 1,150 350 71,575 70,419 62,714 95,437 107,919 5,148 2,235 2,390 5,150 3,720 35,908 40,448 42,039 44,467 50,580 5,057 4,593 5,420 6,065 6,708 6,076 5,795 5,125 5,167 5,866 2,104 1,879 2,437 2,846 2,925 1,153 1,295 1,052 1,513 1,020 1,486 1,540 1,587 1,181 1,687 4,002 7,508 4,127 4,977 14,760 -
- - - - - - - - - - - - - - - - - - - 60,934 65,293 64,177 71,366 87,266 10,641 5,126 (1,463) 24,071 20,654 - - - - 468 183 1,876 27 538 171 (1,264) (1,379) (2) (55) (20) - -
(1,081) 497 25 483 619 9,560$ 5,623 $ (1,438)$ 24,554 $ 21,273$

0.00% 0.00% 0.00% 0.00% 0.00%
Fiscal Year
Statistical Table 4
153

15.B

City of Hemet
Own Source Revenue
Governmental Activities Property Tax Revenue
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Property
Year Tax
2014 5,946
2015 5,381
2016 5,916
2017 6,136
2018 6,804
2019 7,392
2020 7,592
2021 7,650
2022 7,943
2023 8,579
Statistical Table 5
154

15.B

City of Hemet
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Taxable Taxable Highest
Fiscal Less Assessed Less Assessed Direct Tax
Year Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate 2014 4,330,049,882 165,792,295 (133,510,154) 4,362,332,023 1,311,683,769 72,346,441 N/A** N/A** 0.24552 2015 4,706,629,409 160,264,993 (145,097,337) 4,721,797,065 1,402,028,714 66,989,353 N/A** N/A** 0.24552 2016 4,989,091,509 157,483,240 (153,462,996) 4,993,111,753 1,472,420,756 64,336,968 N/A** N/A** 0.24552 2017 5,294,563,351 166,151,715 (159,158,493) 5,301,556,573 1,554,120,090 66,302,157 N/A** N/A** 0.24552 2018 5,738,442,456 173,750,554 (152,501,372) 5,759,691,638 1,632,333,531 67,103,391 N/A** N/A** 0.24552 2019 5,891,505,336 190,128,633 (164,926,297) 5,916,707,672 1,709,804,561 78,020,649 N/A** N/A** 0.24552 2020 6,150,877,556 190,147,395 (169,524,075) 6,171,500,876 1,794,064,122 76,990,710 N/A** N/A** 0.24552 2021 6,451,235,055 187,135,933 (178,728,139) 6,459,668,559 1,856,098,890 77,009,200 N/A** N/A** 0.24552 2022 6,748,837,124 185,630,583 (185,385,214) 6,748,412,303 1,924,292,110 78,939,139 N/A** N/A** 0.24552 2023 7,460,126,502 185,696,825 (196,544,968) 7,448,557,204 2,080,173,341 77,763,054 N/A** N/A** 0.24552 NOTE:

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. **The State of California dissolved all Redevelopment Agencies effective 02/01/2012. All activity for the wind down of the Agencies was moved to a Successor Agency.

Source: Riverside County Auditor-Controller
City Redevelopment
Statistical Table 6
155

15.B

City of Hemet
Property Tax Rates
Direct and Overlapping Governments
Per $100 of Assessed Value
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Direct Rates:

City of Hemet Basic Area 0.24552 0.24552 0.24552 0.24552 0.24552 0.24552 0.24552 0.24552 0.24552 0.24547 Overlapping Rates:

Hemet Unified School 0.30653 0.30653 0.30653 0.30653 0.30653 0.30653 0.30653 0.30653 0.30653 0.30650 County General 0.25433 0.25433 0.25433 0.25433 0.25433 0.25433 0.25433 0.25433 0.25433 0.25437 Eastern Municipal Water District 0.04435 0.04435 0.04435 0.04435 0.04435 0.04435 0.04435 0.04435 0.04435 0.04440 Flood control Zone 4 0.03923 0.03923 0.03923 0.03923 0.03923 0.03923 0.03923 0.03923 0.03923 0.03920 Riv. Co. Office of Education 0.03641 0.03641 0.03641 0.03641 0.03641 0.03641 0.03641 0.03641 0.03641 0.03640 Mt. San Jacinto Junior College 0.03527 0.03527 0.03527 0.03527 0.03527 0.03527 0.03527 0.03527 0.03527 0.03530 Eastern Municipal Water Improvement Dist 17 0.01665 0.01665 0.01665 0.01665 0.01665 0.01665 0.01665 0.01665 0.01665 0.01665 Valley Wide Recreation & Park District 0.01455 0.01455 0.01455 0.01455 0.01455 0.01455 0.01455 0.01455 0.01455 0.01455 San Jacinto Valley Cemetery 0.00458 0.00458 0.00458 0.00458 0.00458 0.00458 0.00458 0.00458 0.00458 0.00458 Flood Control Administration 0.00238 0.00238 0.00238 0.00238 0.00238 0.00238 0.00238 0.00238 0.00238 0.00238 San Jacinto Basin Resource Conservation 0.00020 0.00020 0.00020 0.00020 0.00020 0.00020 0.00020 0.00020 0.00020 0.00020 Proposition 13 Rate 1.00000 1.00000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Bond issues:

Hemet Unified School District Debt Sv 0.12502 0.11991 0.13729 0.12409 0.11019 0.10173 0.11571 0.11876 0.12323 0.12000 Metropolitan Water District Debt Sv 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.00350 Total Rate 1.12852 1.12341 1.14079 1.12759 1.11369 1.10523 1.11921 1.12226 1.12673 1.12350 NOTE:

In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount.

This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of Hemet Unified School District Debt Service and Metropolitan Water District Debt Service.

Ratios for tax rate area 006-001, excluding Redevelopment factors the average tax rate in City of Hemet Basic Area is approximately .17 prior to the ERAF shifts Source: HDL, Coren & Cone
Riverside County Auditor-Controller
Statistical Table 7
156

15.B

City of Hemet
Principal Property Taxpayers
Current Fiscal Year and Nine Years Ago
Percent of Percent of
Total City Total City
Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
TIG Devonshire LLC 54,768,571 $ 1 0.74% - - Physicians for Healthy Hospitals Inc 51,157,048 2 0.69% - - Freedom Properties Hemet 47,426,872 3 0.64% - - Granite Village West LP 47,424,137 4 0.64% - - Walmart Real Estate Business Trust 42,835,638 5 0.58% - - FFLP CC 34,250,459 6 0.46% - - 551 N Santa Fe St LLC 30,917,014 7 0.42% - - Providence Hemet Apts 29,905,087 8 0.40% - - CBYW Hemet ILF PROPCO LP 28,401,955 9 0.38% - - Spectrum Pacific West 27,445,667 10 0.37% - - PHH Real Estate - - 43,143,302 1 0.99% Freedom Properties Hemet - - 40,393,658 2 0.93% Grainte Village West LP - - 40,143,096 3 0.92% MCS Hemet Valley Center - - 33,291,017 4 0.76% FFLP CC - - 29,511,962 5 0.68% James J. Femino - - 28,723,400 6 0.66% Emeritus Corporation - - 25,742,429 7 0.59% Time Warner NY Cable LLC - - 25,655,600 8 0.59% Walmart Real Estate Business Trust - - 25,406,937 9 0.58% Essex JMS Acquisition - - 18,064,357 10 0.41% 394,532,448$ 5.30% 310,075,758 $ 7.11%
Source: HDL, Coren & Cone
20142023
Statistical Table 8
157

15.B

City of Hemet
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal City Redevelopment Successor Agency City Redevelopment Perce ntage Collection of Percentage Year Tax Levy Tax Increment Tax Increment Amount Amount * of Levy Deli nquent taxes Amount of Levy 2014 4,384 - 10,840 4,333 - 98.84% 455 4,788 109.21% 2015 4,722 - 10,589 4,709 - 99.71% 240 4,949 104.79% 2016 4,965 - 10,714 4,960 - 99.89% 280 5,240 105.53% 2017 5,240 - 10,652 5,285 - 100.86% 214 5,499 104.95% 2018 5,514 - 10,683 5,552 - 100.68% 255 5,806 105.30% 2019 5,809 - 10,667 5,896 - 101.50% 193 6,088 104.81% 2020 6,146 - 10,675 6,083 - 98.98% 164 6,247 101.65% 2021 6,373 - 10,671 6,430 - 100.89% 169 6,599 103.54% 2022 6,648 - 10,673 6,734 - 101.29% 224 6,957 104.65% 2023 7,239 - 10,672 7,228 - 99.85% 71 7,299 100.83% NOTE:

The amounts presented include City property taxes and Redevelopment Agency tax increments. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed-through to other agencies. * The Redevelopment amount is Gross Tax Increment received which includes pass through amounts to other agencies. approximately 43% of the Redevelopment amount collected is available for the Redevelopment Agency **The State of California dissolved all Redevelopment Agencies effective 02/01/2012. All activity for the wind down of the Agencies was moved to a Successor Agency.

Since Successor Agency increment is only enough to cover annual costs of the wind down process, these amounts are excluded from the collection data.

Source: Riverside County Auditor Controller
HDL, Coren & Cone
Including Deliquencies
Collected within the
Fiscal Year of the Levy
Total Collections to Date
Statistical Table 9
158

15.B

City of Hemet
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) Water Total Percentage
Fiscal Certificates 1999 2002 Notes Revenue Capital Certificates Primary of Personal Per Year of Participation TAB TAB Payable Bonds Leases of Participation Government Income Capita 2014 - * * - - - - - 0.00% - 2015 - * * - - - - - 0.00% - 2016 - * * - - - - - 0.00% - 2017 - * * - - - - - 0.00% - 2018 - * * - - - - - 0.00% - 2019 - * * - - - - - 0.00% - 2020 - * * - - - - - 0.00% - 2021 - * * - - - - - 0.00% - 2022 - * * - - - - - 0.00% - 2023 - * * - - - - - 0.00% - NOTE:
* 1999 and 2002 Tax Allocation Bonds are no longer reported as part of the primary government.

Sources: City of Hemet Financial Statements
State of California Franchise Tax Board
State Department of Finance
Governmental Activities Business-Type Activities
Statistical Table 10
159

15.B

City of Hemet
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) General Tax
Fiscal Obligation Allocation Percentage of Per
Year Population Bonds Bonds Total Assessed Value * Capita 2014 81,537 - ** - 0.00% - 2015 82,253 - ** - 0.00% - 2016 80,070 - ** - 0.00% - 2017 81,868 - ** - 0.00% - 2018 83,166 - ** - 0.00% - 2019 84,754 - ** - 0.00% - 2020 85,175 - ** - 0.00% - 2021 84,525 - ** - 0.00% - 2022 89,646 - ** - 0.00% - 2023 89,918 - ** - 0.00% - General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). * Assessed value has been used bec ause the actual value of taxable property is not readily available in the State of California.
** 1999 and 2002 Tax Allocation Bonds are no longer reported as part of the primary government.

Statistical Table 11
160

15.B

City of Hemet
Direct and Overlapping Governmental Activities Debt
as of June 30, 2021
2022-2023 Assessed Valuation: 7,449,917,200 $
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 % Applicable (1) De bt 6/30/22 Metropolitan Water District $19,215,000 0.21% 39,391$
Eastern Municipal Water District, I.D. No. 24 55,000 52.235% 28,729$ Eastern Municipal Water District, I.D. No. U12 185,000 1.94% 3,583$ Eastern Municipal Water District, I.D. No. U18 200,000 100.000% 200,000$ Eastern Municipal Water District, I.D. No. U21 85,000 13.09% 11,129$ Mt. San Jacinto Community College District 247,850,000 6.25% 15,498,061$ Hemet Unified School District 252,580,000 50.30% 127,055,317$ San Jacinto Unified School District 75,310,000 6.56% 4,940,336$ Hemet Unified School District Community Facilities District No. 2004-1 2,445,000 100.000% 2,445,000$ Hemet Unified School District Community Facilities District No. 2005-2, 3 & 4 16,425,000 100.000% 16,425,000$ Hemet Unified School District Community Facilities District No. 2020-3 3,065,000 100.000% 3,065,000$ Hemet Unified School District Community Facilities District No. 2020-4 3,390,000 100.000% 3,390,000$ Hemet Unified School District Community Facilities District No. 2021-1 5,715,000 100.000% 5,715,000$ San Jacinto Unified School District Community Facilities District No. 2005-4 6,855,000 29.185% 2,000,632$ Eastern Municipal Water District Community Facilities District No. 2001-02 2,635,000 100.000% 2,635,000$ Eastern Municipal Water District Community Facilities District No. 2004-27 5,295,000 100.000% 5,295,000$ Eastern Municipal Water District Community Facilities District No. 2005-38 1,910,000 100.000% 1,910,000$ Eastern Municipal Water District Community Facilities District No. 2006-56 3,430,000 100.000% 3,430,000$ Eastern Municipal Water District Community Facilities District No. 2003-20 637,818 100.000% 637,818$ C
ity of Hemet Community Facilities District No. 1999-1 5,345,000 100.000% 5,345,000$ California Statewide Communities Development Authority -$ Community Facilities District No 2018-2 I.A. No. 1 16,415,000 100.000% 16,415,000$ TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 216,484,996$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Riverside County General Fund Obligations $686,776,829 2.057% 14,126,999$ Riverside County Pension Obligations 748,540,000 2.057% 15,397,468 Riverside County Flood Control District, Zone No. 4 5,380,000 10.403% 559,681 Hemet Unified School District Certificates of Participation 35,945,000 50.303% 18,081,413 San Jacinto Unified School District Certificates of Participation 39,175,000 6.560% 2,569,880 City of Hemet 0 100.000% 0
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 50,735,442$ Less: Riverside County Administrative Center Authority (100% self-supporting from tax increment revenues) -
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 50,735,442$ OVERLAPPING TAX INCREMENT DEBT (Successor Agency):

Hemet Redevelopment Agency Tax Allocation Bonds 6,810,000 100.000% 6,810,000 Riverside County Project Areas Tax Allocation Bonds 321,602,321 0.405-4.76% 2,732,036 TOTAL OVERLAPPING TAX INCREMENT DEBT 9,542,036
TOTAL DIRECT DEBT $0
TOTAL GROSS OVERLAPPING DEBT 276,762,474
TOTAL NET OVERLAPPING DEBT 276,762,474
GROSS COMBINED TOTAL DEBT 276,762,474$ (2)
NET COMBINED TOTAL DEBT 276,762,474$
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2022-23 Assessed Valuations
:

Total Overlapping Tax and Assessment Debt 2.91%
Total Direct Debt 0.00%
Gross Combined Total Debt 3.71%
Net Combined Total Debt 3.84%
Ratios to Redevelopment Successor Agencies Incremental Valuatio n ($1,908,246,281):

Total Overlapping Tax Increment Debt 0.50%
Source: California Municipal Statistics, Inc.

Statistical Table 12
161

15.B

City of Hemet
Legal Debt Margin Information
Last Ten Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Debt Limit 163,587,451 $ 171,057,453 $ 181,336,069 $ 192,577,682 $ 203,270,441 $ 214,746,714 $ 224,300,756 $ 235,219,009 $ 246,129,447 $ 272,384,308 $ Total net debt applicable to limit - - - - - - - - - - Legal debt margin 163,587,451 $ 171,057,453 $ 181,336,069 $ 192,577,682 $ 203,270,441 $ 214,746,714 $ 224,300,756 $ 235,219,009 $ 246,129,447 $ 272,384,308 $ Total net debt applicable to the limit
as a percentage of debt limit - - - - - - Legal Debt Margin Calculation for Fiscal Year 2023:

Assessed Value 7,263,581,534 $
Debt limit (3.75% of assessed value) 272,384,308$
Debt applicable to limit:

General obligation bonds
Legal debt margin 272,384,308 $
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

However, this provision was enacted when assessed valuation was based upon 25% of market value.

Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). Although the statutory debt limit has not been amended by the State since this change, the percentage presented in the above computations have been proportionately modified to 3.75% (25% of 15%) for the purpose of this calculation in order to be consistent with the computational effect of the debt limit at the time of the state's establishment of the limit.

Source: Riverside County Assessor's Office
Statistical Table 13
162

15.B

City of Hemet
Pledged-Revenue Coverage
Last Ten Fiscal Years
(in thousands)
Fiscal Year Less Net
Ended Net Tax Water Operating Available
June 30 Increment Principal Interest Coverage Revenue Expenses Revenue Principal Interest Coverage 2013 1,033 420 658 0.96 - - - - - - 2014 723 445 639 0.67 - - - - - - 2015 992 465 619 0.92 - - - - - - 2016 956 580 359 1.02 - - - - - - 2017 1,693 470 411 1.92 - - - - - - 2018 935 485 394 1.06 - - - - - - 2019 905 505 375 1.03 - - - - - - 2020 899 530 365 1.00 - - - - - - 2021 962 545 330 1.10 - - - - - - 2022 829 575 302 0.95 Water Revenue Bond paid off in Fiscal year ending 6/30/2009 2023 2 610 272 0.00
* 1999 and 2002 Tax Allocation Bonds are no longer reported as part of the primary government.

Source: City of Hemet Financial Statements
Debt Service Debt Service
Tax Allocation Bonds* Water Revenue Bonds
Statistical Table 14
163

15.B

City of Hemet
Demographic and Economic Statistics
Last Ten Years
Personal Per Capita
Income (2) Personal Unemployment
Calendar Population (in thousands) Income Rate
Year (1) Local Area Zip Codes Local Area Zip Codes (3)
2013 80,877 1, 475,417 (4) 18,243 12.80% 2014 81,537 1, 535,426 (4) 18,831 10.70% 2015 82,253 1, 484,696 (4) 18,050 9.70% 2016 80,070 1, 777,480 (4) 22,199 8.70% (3) 2017 81,868 1, 855,529 (4) 22,665 7.80% (3) 2018 83,166 2, 022,498 (4) 24,319 5.60% (3) 2019 84,754 2, 125,464 (4) 25,078 5.10% (3) 2020 85,175 2, 211,416 (4) 25,963 13.60% (3) 2021 84,525 - * - * 10.40% (3) 2022 89,646 - * - * 5.70% (3) 2023 89,918 - * - * 6.70% (3)

*2021, 2022 & 2023 Personal Income Data is not yet available as of August 31, 2023.

Sources: 1 State Department of Finance (data shown is for City o f Hemet) 2 Franchise Tax Board Adjusted Gross Income for zip codes 92543, 92544, 92545 3 California Labor Market Info, State and Local Info (data shown is for City of Hemet) 4 Franchise Tax Board Information is based upon calendar year. This statistical information became available beginning in 2005.

Statistical Table 15
164

15.B

City of Hemet
Principal Employers
2021
Number of Percent of
Employer Employees Total Employment
Hemet Unified School District 3,750 13.30% Physicians For Healthy Hospitals 1,077 3.82% County of Riverside (Various service centers) 725 2.57% Walmart Supercenter 400 1.42%
Gosch Ford, Toyota, Hyundai & Inland Chevrolet 316 1.12% City of Hemet 306 1.09%
Stater Bros 246 0.87%
Village Healthcare Retirement 227 0.80% Home Depot 195 * 0.69%
Forest River, Inc. 180 0.64%
Manorcare Health Services 188 0.67%
Winco Foods 173 0.61%
McCrometer, Inc. 160 0.57%
Lowe's 142 0.50%
Target 140 * 0.50%
In-n-Out 112 0.40%
* Number of Employees for Employers are estimates from prior years Current year data not available.

Source: City of Hemet Telephone Survey
California Labor Market Info, Data Library
Numbers are approximate per their Human Resources Department Statistical Table 16
165

15.B

City of Hemet
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Government 29 31 33 30 30 24 30 34 33 38
Community Development 35 28 27 28 30 22 20 21 19 16
(Building, Planning, Engineering)
L i b r a r y 1 21 21 21 31 21 2 9 9 9 1 0
Police
Sworn 61 70 63 75 90 70 70 71 68 78
N o n - s w o r n 2 82 92 93 54 13 53 33 13 33 9
Fire
Firefighters and Officers 44 39 39 42 58 49 49 47 54 55 C i v i l i a n s 3223332224
Public Works
Water 18 18 21 20 19 14 15 15 16 18
Sewer/Storm Drain/Street Sweeping 444896 1 0 1 6 1 4 1 8 R e f u s e 1000000000
S t r e e t s , P a r k s , L L M D 3 33 13 13 12 92 81 61 51 51 4 Facility & Equipment Maintenance 11 11 10 11 12 10 9 7 9 10 Clean City Youth 4000000000
A d m i n i s t r a t i o n 8554664555
TOTAL 291 280 276 300 339 279 267 273 277 305
Source: City of Hemet Payroll Process
Report - Active Employees
Statistical Table 17
166

15.B

City of Hemet
Operating Indicators
by Function
Last Ten Fiscal Years
Function: 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Police
Calls for Service (1) 70,599 25,000 52,346 * 79,101 * 81,566 82,298 82,027 78,286 75,202 71,602 Arrests (1) 3,222 2,109 3,433 * 2,593 * 3,339 4,357 2,637 3,077 2,944 2,733 Sworn Officer's per 1000 population 0.86 0.85 0.87 * 0.86 * 0.84 0.83 0.82 0.83 0.80 0.85 Fire
Calls for Service (1) 13,613 15,693 12,672 * 17,946 * 16,918 17,976 17,656 17,666 18,251 18,850 Fire/Explosion (included in total above) 254 286 255 * 761 * 333 557 596 517 516 528 Medical Aid (included in total above) 11,383 15,407 10,816 * 13,867 * 13,958 14,659 14,317 14,159 15,501 16,877 Community Development
Permits: New Single Family + Mobile set up 127 120 80 2 62 55 97 246 641 368 Conditional Use Permits applied/approved 9/2 9/11 13/6 * 6/6 * 6/5 13/11 8/4 14/7 11/12 8/1 Site Development Reviews applied/approved 5/4 5/4 7/4 * 3/3 * 7/10 6/3 11/6 23/11 22/4 12/9 Library
Number of items checked out 360,792 451,956 430,614 * 680,326 * 447,775 532,834 481,709 99,018 84,020 99,320 Num
ber of Cardholders 133,366 138,244 110,629 * 149,965 * 152,164 153,527 145,736 116,189 107,579 110,737 Total items in collection 104,977 94,434 98,114 * 101,451 * 90,082 105,498 519,774 790,591 678,238 701,856 Simpson Senior Center
Citizens served through:

Simpson Center N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Lunch Program N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Prime of Life N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Public Works
Trees trimmed 1,300 ** 1,000 1,800 1,750 1,750 * 1,600 1,595 1,649 1,358 1,818 Poured Sidewalk (sq ft) 70,190 100,000 12,000 38,050 55,000 * 26,283 72,150 17,000 17,400 26,526 Asphalt remove and replace (sq ft) 1,358,833 1,000,000 158,000 N/A N/A 80,882 * 1, 265,000 695,246 421,075 740,800 Striping painted (linear ft) 1,000,000 ** N/A 850,000 N/A N/A - - 558,876 202,000 550,000 Equipment CHP 90 day inspections/maint 116 112 124 124 128 112 124 281 242 254 E
quipment light duty preventative maint 858 864 766 811 897 774 714 918 1,389 1,432 Buildings maintained (sq ft) 285,907 285,907 285,907 285,907 285,907 285,907 285,907 285,907 285,907 285,907 Miscellaneous service requests 1,500 ** 2,789 3,893 * 1,290 * 1,318 1,459 1,600 1,536 1,500 1,553 Refuse collected:

Commercial tons - - - - - - - - - - Residential tons - - - - - - - - - - Roll-off tons - - - - - - - - - - Green Waste tons - - - - - - - - - - Commingled Recyclable tons - - - - - - - - - - Cardboard tons - -
- - - - - - - - Water
Number of active accounts 9,075 7,761 9,304 9,317 9,226 9,171 9,171 9,815 9,760 9,362 Water introduced into the System (acre ft) 4,597 5,262 3,539 3,784 3,847 3,512 3,195 *** 3,374 *** 3,030 *** 2,744 *** 1 acre foot=325.851 gallons
* These numbers are estimated from historical data. Data was not available. ** These numbers are estimated. The estimates for FY13/14 are due to a change in software used to track Service Orders in various Public Works departments.

In Fiscal Year 09/10, the City contracted with YMCA and most currently Valley Wide Recreation to run the Simpson Center and all services associated with it. ***Water introduced into the System for calendar year is through October 2020.

N/A is data that was not available
Source: Various departments within City of Hemet
Statistical Table 18
167

15.B

City of Hemet
Capital Asset Statistics
by Function
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Police Stations 1 1 1 1 1 1 1 1 1 1 Fire Stations 4 5 5 5 5 5 5 5 5 5 Recreation and Culture:

Number of parks 10 12 12 12 12 12 12 12 12 12 Number of libraries 1 1 1 1 1 1 1 1 1 1 Number of volumes 104,977 111,149 88,756 80,115 80,115 80,115 85,438 92,037 97,396 100,439 Public Works:

Area of City (square miles) 26 28 28 28 28 28 28 29 29 29 Miles of Streets 360 360 360 360 360 360 360 360 360 360 Number of Street lights 3,600 3,600 3,600 5,479 5,479 5,479 4,249 4,249 4,249 4,311 Number of water accounts 9,075 7,760 9,304 9,317 9,226 9,171 9,171 9,815 9,760 9,362 M
iles of water mains 120 120 120 130 130 130 132 132 132 132 Number of vehicles (city wide) 227 314 320 314 337 351 354 347 338 326 N/A = not available
Source: Various City Departments
Statistical Table 19
168

15.B

City of Hemet
Water, Refuse and Sewer Rates
Last Ten Years
Effective 7/1/2014 7/1/2015 7/1/2016 7/1/2017 7/1/2018 7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 Bimonthly Bimonthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Water
Low Water Usage Rates
0-1000 CF 56.00 $ 56.00 $ N/A N/A N/A N/A N/A N/A N/A N/A Normal Water Usage Rates
Base Water Rates
5/8" Meter 42.28 42.28 24.95 26.25 27.55 30.15 30.15 30.15 30.15 30.15 3/4" Meter 45.58 45.58 27.26 28.87 30.49 33.81 33.81 33.81 33.81 33.81 1" Meter 54.58 54.58 32.83 34.86 36.93 41.16 41.16 41.16 41.16 41.16 2" Meter 141.50 141.50 81.02 85.25 89.47 97.91 97.91 97.91 97.91 97.91 Consumption Water Rates per 100 CF
0-600 CF 2.30 2.30 6.25 4.41 4.54 4.79 4.79 4.79 4.79 4.79 '601-1200 CF 2.50 2.50 6.25 4.41 4.54 4.79 4.79 4.79 4.79 4.79 '1201-over CF 2.88 2.88 6.25 4.41 4.54 4.79 4.79 4.79 4.79 4.79 Refuse
Standard cart (60 gallon) - - - - - - - - - - Large cart (90 gallon) - - - - - - - - - -
Sewer
City sewer and storm drain 15.04 15.04 10.30 10.80 11.30 11.30 11.30 11.30 11.30 11.30 The City of Hemet has a Franchise Agreement in place with CR&R for Refuse services. The City stopped providing Refuse services on 11/30/2011.

Source: City of Hemet Water Department
Statistical Table 20
169

15.B

City of Hemet
Water Sold by Type of Customer
Last Ten Years
(in 100 Cubid Feet)
2014 2015 2016 2017 2018 2019 2020* 2021* 2022* 2023*
Type of Customer
Single Family Residential 636,811 639,159 734,462 619,717 631,454 617,295 566,067 587,959 541,157 505,783 Multi-Family Residential 491,472 436,877 428,529 458,262 467,488 450,826 404,052 419,053 408,380 389,479 Commercial/Institutional 454,675 351,109 375,643 529,217 397,603 342,816 303,233 339,598 332,316 287,904 Landscape Irrigation 131,711 114,399 109,508 82,723 116,710 118,988 118,251 123,084 127,815 93,497 Total 1,714,669 1,541,545 1,648,142 1,689,919 1,613,256 1,529,926 1,391,602 1,469,694 1,409,668 1,276,663 Source: City of Hemet Water Department
*data provided is through October
Calendar Year
Statistical Table 21
170

15.B

CITY OF HEMET

Single Audit Report on
Federal Award Programs

June 30, 2023

15.B

CITY OF HEMET

SINGLE AUDIT REPORT ON FEDERAL AWARD PROGRAMS
Year Ended June 30, 2023

TABLE OF CONTENTS

Page
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial St atements Performed in Accordance with Government Auditing Standards 1

Independent Auditor’s Report on Compliance for Each Major Program; Report on Internal Control Over Compliance; and Report on the Schedule o f Expenditures of Federal Awards Required by Uniform Guidance 3

Schedule of Expenditures of Federal Awards 6

Notes to the Schedule of Expenditures of Federal Awards 8

Schedule of Findings and Questioned Costs 10

Summary Schedule of Prior Audit Findings 14

15.B

Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

City Council
City of Hemet
Hemet, California

We have audited, in accordance with the auditing standards gene rally accepted in the United States of America and the standards applicable to financial audits contai ned in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information of the City of Hemet (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 29, 2024.

Report on Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for desi gning audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allo w management or employees, in the normal course of performing the ir assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that the re is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important eno ugh to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the preceding paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies

1

15.B

in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and responses as item 2023-001 that we consider to be a significant deficiency.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Cit y’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, pro viding an opinion on compliance with those provisions was not an objective of our audit, and accordi ngly, we do not express such an opinion.

The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City of Hemet’s Responses to Findings

Government Auditing Standards requires the auditor to perform limited procedures on the City’ s responses to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the responses.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organization’s internal control and complia nce.

Accordingly, this communication is not suitable for any other purpose.

March 29, 2024

2

15.B

Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by Uniform Guidance

City Council
City of Hemet
Hemet, California

Report on Compliance for Each Major Federal Program

Opinion on Each Major Federal Program

We have audited the City of Hemet’s compliance with the types o f compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Ci ty’s major federal programs for the year ended June 30, 2023. The Ci ty’s major federal programs are identified in the summary of auditor’s results section of the a ccompanying schedule of findings and questioned costs.

In our opinion, the City of Hemet, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and mat erial effect on each of its major federal programs for the year ended June 30, 2023.

Basis for Opinion on Each Major Federal Program

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City of Hemet and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal dete rmination of the City’s compliance with the requirements referred to above.

3

15.B

Responsibilities of Management for Compliance

Management is responsible for compliance with requirements refe rred to above and for the design, implementation, and maintenance of effective internal control o ver compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk o f not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of i nternal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:

 Exercise professional judgment and maintain professional skept icism throughout the audit.  Identify and assess the risks of material noncompliance, wheth er due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding City’s compliance with the com pliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of City’s internal control over compli ance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of City’s interna l control over compliance.

Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant d eficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance i s a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal 4

15.B

program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant d eficiencies may exist that were not identified.

Our audit was not designed for the purpose of expressing an opi nion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that tes ting based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

We have audited the financial statements of the governmental ac tivities, business-type activities, each major fund, and the aggregate remaining fund information, of th e City of Hemet, as of and for the year ended June 30, 2023, and the related notes to the financial sta tements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated March 29, 2024 which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively compri se the basic financial statements. The accompanying schedule of expenditures of federal awards is pres ented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The 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 basic financia l 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

March 29, 2024
5

15.B

CITY OF HEMET

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2023
Federal Program Program Provided
Federal Grantor/Pass-Through ALN Identification Expend- to Sub- Grantor/Program or Cluster Title Number Number itures Recipients U.S Department of Housing and Urban Development
Direct Assistance:

CDBG - Entitlement Grants Cluster
Community Development Block Grant 14.218 B-20-MC-06-0579 127,854 $ -$ COVID-19 - Community Development Block Grant 14.218 B-20-MW-06-0579 257,572 - Community Development Block Grant 14.218 B-21-MC-06-0579 618,289 150,109 Total CDBG - Entitlement Grants Cluster 1,003,715 150,109 Total Department of Housing and Urban Development 1,003,715 150,109 U.S. Department of Jus tice
Direct Assistance:

Public Safety Partnership and Community Policing Grants 16.710 15JCOPS-22-GG-04819 13,866 - Total Department of Justice 13,866 -
U.S. Department of Transportation
Passed through the California Department of Transportation Office of Traffic Safety:

Highway Safety Cluster
Selective Traffic Enforcement Program 20.600 PT23041 11,960 - Total Highway Safety Cluster 11,960 -
Passed through the California Department of Transportation Office of Traffic Safety:

Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 PT23041 49,795 - Total Minimum Penalties for Repeat Offenders for Driving While Intoxicated 49,795 - Total Department of Transportation 61,755 -
U.S Department of Treasury
Direct Assistance:

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21. 027 N/A 4,192,262 * - Total Department of Treasury 4,192,262 -
U.S Department of Homeland Security
Passed through the San Bernardino County Fire Protection District Office of Emergency Services:

Homeland Security Grant Program 97.067 2021-0081 45,585 - Direct Assistance:

Staffing for Adequate Fire and Emergency Response 97.083 EMW-2021-FF-01195 178,782 - Total Department of Homeland Security 224,367 -
Total Expenditures of Federal Awards 5,495,965$ 150,109$ * = Major Program
6

15.B

CITY OF HEMET

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2023

1) Reporting Entity

The financial reporting entity, as defined by the Governmental Accounting Standards Board (“GASB”) Codification, consists of the primary government, which is the City of Hemet, California (the “City”), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with th e primary government are such that exclusion would cause the City’s financial statements to be misleading or incomplete.

2) Summary of Significant Accounting Policies

Basis of Accounting

Funds received under the various grant programs have been recorded within the special revenue funds of the City. The City utilizes the modified accrual basis of accounting for the special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of City’s basic financial statements.

Schedule of Expenditures of Federal Awards

The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through the State of California Office of Tra ffic Safety and the San Bernardino County Fire Protection District, are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City.

3) Major Programs

The City had one major program for the year ended June 30, 2023 , consisting of the Coronavirus State and Local Fiscal Recovery Funds which had total disbursements of $4,192,262. This amount calculates to 76.2% of the total disbursements from federal awards.

4) Subrecipient Expenditures

During the fiscal year ended June 30, 2023, the City made paym ents to subrecipients which consisted of the following:

7

15.B

CITY OF HEMET

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2023

4) Subrecipient Expenditures - Continued

5) Indirect Cost Rate

The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.

My City Youth Food Program 27,593$
Exceed - Div ision of Valley Resource Center 14,000
Community Pantry 14,000
Voices for Children 10,000
Care A Van Transit 14,000
Fair Housing Council 41,865
Valley Restart Shelter 23,002
Valley Wide Recreation and Park District 5,649
Total Subrecipients 150,109$
8

15.B

CITY OF HEMET

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2023

SECTION I – SUMMARY OF AUDITOR’S RESULTS

Financial Statements

Type of Auditor’s Report Issued: U n m o d i f i e d

Internal Control Over Financial Reporting:

Material Weakness(es) Identified? N o

Significant Deficiencies Identified not Considered
t o b e M a t e r i a l W e a k n e s s e s ? Y e s

Noncompliance Material to Financial Statements Noted? N o

Federal Awards

Internal Control Over Major Programs:

Material Weakness(es) Identified? N o

Significant Deficiencies Identified not Considered
t o b e M a t e r i a l W e a k n e s s e s ? N one reported

Type of Auditor’s Report Issued on Compliance for Major Programs: Unmodified

Any Audit Findings Disclosed that are Required to be Reported i n A c c o r d a n c e W i t h U n i f o r m G u i d a n c e ? N o

Identification of Major Programs:

CFDA Numbers Name of Federal Program or Cluste r

21.027 Coronavirus State and Local Fiscal Recovery Funds

Dollar Threshold used to Distinguish Between Type A
And Type B Programs: $ 750,000

Auditee Qualified as Low-Risk Auditee? Yes

9

15.B

CITY OF HEMET

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2023

SECTION II – FINANCIAL STATEMENT FINDINGS

2023-001 Audit Adjustments

Condition:

While performing audit procedures, we identified and proposed several material adjusting entries to the City’s accounting records. Furthermore, Statements on Auditing Standards No. 115, ”Communicating Internal Control Related Matters Identified in an Audit” states that “indicators of material weaknesses in internal control include: identification by the auditor of a material misstatement of the financial statements under audit in circumstances that indicate the misstatement would not have been detected by the entity’s internal control.”

Criteria:

The City’s management is responsible for establishing and maintaining effective internal controls over financial reporting to help ensure that appropriate goals and objectives are met. This responsibility includes the selection and application of accounting principles, ensurin g that financial information is reliable and properly recorded, and evaluating and monitoring ongoing activities.

Cause of Condition:

Adjustments identified through the audit process.

Potential Effect of Condition:

Internal controls not established to identify material misstatements to the financial statements and ultimately could result in material misstatement to the financial statements.

Recommendation:

Therefore, in order to maintain the integrity of the accounting and financial reporting system, and to ensure timely reporting, we recommend that all balance sheet accounts and other selected accounts be analyzed on a monthly, quarterly or other periodic basis as appropriate. We suggest a schedule of accounting functions to be performed monthly, quarterly, etc., be prepared with the provision for signing off by date and initials when the procedure is complete.

Views of Responsible Officials:

The City concurs. Refer to separate Corrective Action Plan for management’s response. 10

15.B

CITY OF HEMET

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2023

SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

There were no findings to be reported in accordance with the Uniform Guidance. 11

15.B

CITY OF HEMET

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2023

SECTION II – FINANCIAL STATEMENT FINDINGS

2022-001: Audit Adjustments

Current Status: This finding has not been corrected. See Finding 2023-001 and corrective action plan.

SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

There were no auditor’s findings reported in accordance with the Uniform Guidance. 12

15.B

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Apr 23 2024
Department: Administration
Submitted by: Mark Prestwich, City Manager
Elodie Klug, Deputy City Clerk;

☒ Receive and File ☐ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

Riverside County Civil Grand Jury Recruitment

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Receive and file the presentation for Riverside County Civil Grand Jury Recruitment.

ANALYSIS:

https://www.youtube.com/watch?v=w8c7JbFT5xM

STRATEGIC PLAN INTEGRATION:

GOAL FOUR: PARTNERSHIP & COLLABORATION
To pursue partnerships that will increase the opportunities available to the community, including our businesses, unemployed, and youth populations.

Objective 1: Develop concepts and programs to increase opportunities for youth recreation.

Objective 2: Develop concepts and programs to enhance the quality of life services.

Objective 3: Develop programs to offer support to the community's businesses

ATTACHMENT(S):

Recruitment Flyer 2024-2025 (2)

15.C

ffiI !F
MAKE A DIFFERENCE!

PROMOTE RESPONSIBLE GOVERNMENT
Sente on the 202+2025
Riverside County Civil Grand Jury
of the Civil Grand Jury include:
o To act as the public's watchdog.
. lmprove local government wlth your recommendations.
. Respond to Citizen's complalnts.
o lnvestigate and report upon county and local goyernments and officials. . AEsure that our tax dollars are spent wisely.

The role of a Civil Grand Juty differs substantlallyr from that of a Crtminal Grand jury. . lt is a fulltime assignment serving for one year.
. Typically meets four days a week in downtown Riverside. . Grand Jury proceedings are closed to the public.
. Daily stipend of $6O.OO plus mileage and parking
lnformation:

Application deadllne Ertended to: (4l30l2024l
Qualifications:
1 yr. Resident of Riverside Coun$r . U. S. Citizdn . 78 or older Knowledge of English . 9ou nd j udg ment a nd c ha racte r
www. riverside.cou rts.ca. gov or 951 -777-3633
o8C,
/I
.
\r I r
,t"

15.C

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Apr 23 2024
Department: Police Department
Submitted by: Mark Prestwich, City Manager
Glen Brock, Police Captain;

☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

A Resolution of the City Council of the City of Hemet, California, Authorizing the City Manager to Execute an Agreement for the Purchase of Office Furniture and Installation Services Between the City of Hemet and G/M Business Interiors in an Amount Not to Exceed $64,360.69 for the Hemet Police Department Community Services and Volunteer Sub-Station at 3570 West Florida Avenue in the City of Hemet

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, Authorizing the City Manager to Execute an Agreement for the Purchase of Office Furniture and Installation Services Between the City of Hemet and G/M Business Interiors in an Amount Not to Exceed $64,360.69 for the Hemet Police Department Community Services and Volunteer Sub-Station at 3570 West Florida Avenue in the City of Hemet.

BACKGROUND:

The Hemet Police Department developed a Volunteer Program in 1994 as a cost-effective way to increase public safety-related services to residents. Since that time, dedicated Hemet Police Department Volunteers have donated thousands of hours (a value of tens of thousands of dollars) to supplement existing public safety-related services and complete tasks not offered by full-time paid employees. In 2023 alone, the 8,657 volunteer hours would have cost more than $314,000 if completed by an equivalent full-time paid employee.

In past years, the Hemet Police Volunteers have worked out of the main police building and three sub-stations. However, the Police Department lost one of the sub-stations when the property owner decided to lease the space to another business and a second sub-station to an interior flood which resulted in some health hazards. The only remaining volunteer sub-station is located at the Hemet Mall. The loss of these sub-stations has resulted in a decrease in available work for the volunteer staff which has in turn led to a decrease in total Police volunteers over the past year.

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In order to re-establish volunteer services to the community, Police Department staff has entered into a lease for a new volunteer sub-station at 3570 W. Florida Avenue. The property owner has completed all tenant improvements, and the space is now ready to occupy. The Police Department included funding to furnish this space in the 23/24 Fiscal Year Budget.

ANALYSIS:

The furnishing requested includes a private office to be utilized by the Community Services Sergeant, multiple workstations to accommodate Police Volunteers, Police Officers, and the Community Behavioral Health Assessment Teams (CBHAT), along with a counter-height transaction wall to work with visitors from the community. This is commercial-grade furniture built to last and stand up to heavy use by Police employees.

DISCUSSION:

Volunteer sub-stations are typically staffed by volunteers without any paid Police Department employees present. Volunteers use these spaces to take minor Police reports, register community members into special needs registries, set up vacation patrol requests, provide a public safety presence in the business area, handle various public inquiries, sign off citations, and other services as needed. The Hemet Police Volunteer sub-stations make obtaining Police services easier for our residents and direct calls for service away from our sworn officers who can then use that extra time to respond to emergency calls. They save staff time and resident's time by not requiring either to make lengthy drives to the furthest portions of our city.

This sub-station will be a new concept in that it will not only house volunteer staff, but it will also serve as the permanent office for the Hemet Police Department Community Services Sergeant and the Community Behavioral Health Assessment Teams. The addition of sworn staff will make this sub- station more versatile and allow the Police Department to offer more services at this location. By housing the CBHAT, it will help to further reduce the trauma exposure to those experiencing mental health issues by providing a space to take them other than the Police Department. Relocating these department employees will have the added benefit of freeing up space within the main Police building on Latham Avenue which is already experiencing difficulty housing staff. Workstations at 3570 W.

Florida Avenue are being configured to allow Police officers to write reports using existing equipment.

This will save more staff time by reducing the number of times an officer needs to drive out of their assigned geographical beat to write reports or conduct other Police business that requires an office setting.

This purpose-built office space will provide better customer service to our residents, visitors, and business partners. It will increase public safety visibility, expand programs and services, and improve operational effectiveness. The office furniture requested here is essential to completing these goals.

Staff anticipates opening this new substation by the end of this fiscal year.

PREVIOUS COUNCIL ACTION:

Hemet City Council approved the funding for equipment to support this volunteer sub-station in the 23/24 FY budget.

STRATEGIC PLAN INTEGRATION:

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GOAL ONE: QUALITY OF LIFE:

To ensure that Hemet is safe, clean, attractive and comfortable for all who live, work, and visit.

Objective 1: Enhance the visual appearance of the community to make it attractive and reduce blight.

Objective 2: Explore and implement homelessness solutions for the City of Hemet.

Objective 3: Increase Public Safety visibility and response.

GOAL THREE: COMMUNITY ENGAGEMENT
To connect and participate in a constant dialogue between members of the community, City staff, and elected officials to promote togetherness and positivity.

Objective 1: Deliver messaging to the Community that connects, is consistent, and relevant.

Objective 2: Increase transparency for the public.

Objective 3: Increase the community's pride within the City.

GOAL FOUR: PARTNERSHIP & COLLABORATION
To pursue partnerships that will increase the opportunities available to the community, including our businesses, unemployed, and youth populations.

Objective 1: Develop concepts and programs to increase opportunities for youth recreation.

Objective 2: Develop concepts and programs to enhance the quality of life services.

Objective 3: Develop programs to offer support to the community's businesses

GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.

Objective 1: Operate in a financially sustainable manner.

Objective 2: Evaluate existing practices to ensure continuity with industry best practices.

Objective 3: Provide Council with policies that are consistent while lessening liabilities.

Objective 4: Increase employee retention by training and creating a positive workplace.

Objective 5: Streamline fire prevention coordination efforts.

FISCAL IMPACT:

Police Department staff has consulted with City procurement on this purchase. This purchase is being made under the County of Riverside Contract #PSA-0004702.

Funding for this purchase will from:

115-3013-5400 - $61,805.42
115-3002-5400 - $2,555.27

Total: $64,360.69

The City Council approved $70,000 in the FY 23-24 budget for this project. The purchase of this furniture along with the storefront sign will deplete all appropriated funding. Staff will utilize funds from existing grants to purchase any other equipment required to open the substation.

ATTACHMENT(S):

Attachment 1: GM Business Interiors Resolution
Attachment 2: GM Business Interiors Proposal

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CITY OF HEMET RESOLUTION NO. 2024-XXX 1

CITY OF HEMET

HEMET, CALIFORNIA
RESOLUTION NO. 2024-xxx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HEMET, CALIFORNIA, AUTHORIZING THE CITY

MANAGER TO EXECUTE AN AGREEMENT FOR THE

PURCHASE OF OFFICE FURNITURE AND

INSTALLATION SERVICES BETWEEN THE CITY OF
HEMET AND G/M BUSINESS INTERIORS. IN AN
AMOUNT NOT TO EXCEED $64,360.69 FOR THE HEMET

POLICE DEPARTMENT COMMUNITY SERVICES AND
VOLUNTEER SUB-STATION AT 3570 WEST FLORIDA

AVENUE, IN THE CITY OF HEMET
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:

WHEREAS, The Hemet Police Department developed a Volunteer Program in 1994 as a cost-effective way to increase public safety-related services to city residents; and
WHEREAS, The Hemet Police Department Volunteers have donated thousands of hours to supplement existing public safety-related services and complete tasks not offered by full-time paid employees; and
WHEREAS, in 2023 alone, the 8,657 volunteer hours would have cost more than $314,000 if completed by an equivalent full-time paid employee; and WHEREAS, the City of Hemet has entered into a lease for a new volunteer sub- station at 3570 W. Florida Ave. in the City of Hemet and the Property owner has completed all tenant improvements to make this space ready to occupy; and

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CITY OF HEMET RESOLUTION NO. 2024-XXX 1
WHEREAS, Hemet Police Volunteers will use this space to take minor police reports, register community members into special needs registries, set up vacation patrol requests, provide a public safety presence in the business area, handle various public inquires, sign off citations, and other services as needed; and WHEREAS, this sub-station will not only house volunteer staff, but also serve as the permeant office for the Hemet Police Department Community Services Sergeant and the Community Behavioral Health Assessment Teams; and WHEREAS, work stations at this location will be configured to allow police officers to write reports using existing equipment saving staff time by reducing the number of times an officer needs to drive out of their assigned geographical beat to write reports or conduct other police business that requires an office setting; and WHEREAS, this purpose-built office space will provide better customer service to our residents, visitors, and business partners while increasing public safety visibility, expand programs and services, and improve operational effectiveness. The office furniture requested here is essential to completing these goals; and WHEREAS, Hemet City Council approved the funding for equipment to support this volunteer sub-station in the 23/24 FY budget.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS:

SECTION 1.FINDINGS - The recitals set forth above are hereby adopted as findings in support of this Resolution
SECTION 2.DETERMINES – Approves the purchase and service agreement between the City of Hemet and G/M Business Interiors.

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CITY OF HEMET RESOLUTION NO. 2024-XXX 1
SECTION 3.ORDERS – Authorizes the City Manager to execute all documents related to the purchase and services agreement SECTION 4.RESOLVES - This Resolution shall become effective upon it’s adoption.

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CITY OF HEMET RESOLUTION NO. 2024-XXX 1
PASSED, APPROVED AND ADOPTED 23rd day of April, 2024.
____________________________
Joe Males, Mayor
ATTEST:
_____________________________
John Paul Maier, City Clerk

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CITY OF HEMET RESOLUTION NO. 2024-XXX 1
State of California )
County of Riverside )
City of Hemet )
I, John Paul Maier, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 23 rd day of April 2024, and was passed by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:
_____________________________
John Paul Maier, City Clerk

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City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Apr 23 2024
Department: Administration
Submitted by: Mark Prestwich, City Manager
John Maier, City Clerk;

☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

Approval of the City Council Special Meeting Minutes of April 3, 2024

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Approve the City Council Special Meeting Minutes of April 3, 2024.

STRATEGIC PLAN INTEGRATION:

GOAL THREE: COMMUNITY ENGAGEMENT
To connect and participate in a constant dialogue between members of the community, City staff, and elected officials to promote togetherness and positivity.

Objective 1: Deliver messaging to the Community that connects, is consistent, and relevant.

Objective 2: Increase transparency for the public.

ATTACHMENT(S):

Attachment 1: City Council Special Meeting (Strategic Planning Workshop) - Apr 03 2024 - Minutes

16.B

MINUTES
City Council Special Meeting
City of Hemet
Hemet Public Library, Second Floor
Wednesday, April 3, 2024

1. SPECIAL MEETING - STRATEGIC PLANNING WORKSHOP 9:00 A.M.

2. CALL TO ORDER
The City Council of the City of Hemet met this date in a Special Meeting at 9:00 a.m. on the second floor of the Hemet Public Library at, 300 E. Latham Avenue, Hemet, California with Mayor Males presiding.

3. ROLL CALL
City Clerk Maier provided the Roll Call as follows:

Present: Mayor Males
Mayor Pro Tem Peterson
Council Members Kendrick, Krupa, Lilienthal
Staff Present:

City Manager:

City Attorney:

City Clerk:

Mark Prestwich
Steven Graham
John Paul Maier

4. INVOCATION
Invocation was given by Dale Dieleman.

5. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Kendrick.

6. COMMUNICATIONS FROM THE PUBLIC
Mayor Males asked for Public Comments; no one spoke.*

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City Council Meeting
April 3, 2024
*Mayor Males received a public comment after Discussion Item 7.C by Dana Benjamin.

6.A Public Comment for Items Listed on the Agenda: Discussion Items

7. DISCUSSION ITEMS

7.A Review of City of Hemet Vision and Mission Statement

7.B Review of 2023-24 Strategic Plan Action Items and Status*

7.C Discussion of Fiscal Year 2024-25 Strategic Plan Action Items *City Manager Prestwich presented discussion item 7.B before item 7.A.

City Manager Prestwich presented a PowerPoint presentation, highlighting the goals of the strategic planning workshop and led a workshop exercise, elaborating on the accomplishments of the organization from the Fiscal Year 2023-24 Strategic Action Plans, including the building of the skatepark and pickleball courts at Gibbell Park, the reduction in crime due to public safety initiatives, community outreach and transparency through city updates and council highlights, various commercial projects to enhance the business community, and city-wide street cleanup projects.

City Manager Prestwich presented the current City of Hemet's Vision and Mission Statement for review. Council Member Krupa suggested adding “to promote inclusivity” to the current Mission Statement, and Mayor Pro Tem Peterson suggested a grammatical edit to read “capitalizing on opportunity.” Council Member Lilienthal suggested adding a “welcoming community” to the current Vision Statement.

Council Member Kendrick left the dais at 10:12 a.m.

Mayor Males recessed the meeting at 10:15 a.m.

Mayor Males called the meeting to order at 10:36 a.m.

City Manager Prestwich led a workshop exercise in which council members consolidated 28 additional recommendations to the Fiscal Year 2024-25 Strategic Plan Action Items. Mr. Prestwich then used the air, water, and chocolate dot voting system to indicate the priorities from greatest importance to non-critical priorities.

By consensus, the City Council collaborated and voted on 40 items to be prioritized in the Fiscal Year 2024-25 Strategic Plan, including an emphasis on proactive code enforcement, community engagement projects and event opportunities, improved street lighting, enhanced audio in the council chambers, and creating a customer service policy.

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City Council Meeting
April 3, 2024
City Manager Prestwich noted that the items voted upon will be discussed with staff to create a draft workshop summary that will be presented for review at a future council meeting.

8. ADJOURNMENT
There being no further business, Mayor Males adjourned the meeting at 12:25 p.m. The next Regular City Council Meeting will be at 7:00 p.m. on April 9, 2024.

APPROVAL: ATTEST:

_______________________________
Joe Males

_____________________________
John P. Maier, MBA, MMC
Mayor City Clerk

16.B

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Apr 23 2024
Department: Public Works
Submitted by: Mark Prestwich, City Manager
Daniel Cortese, Environmental Compliance Coordinator;

☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

A Resolution of the City Council of the City of Hemet, California, Accepting the Funding Award in the Amount of $240,915 from the State of California, Department of Recycling Resources and Recovery, Through the SB 1383 Local Assistance Grant Program (OWR4) and Authorizing the Administrative Services Director to Record Revenues to Account 110-0454 in the Amount of $240,915, and to Record a Supplemental Appropriation of $240,915 in the Public Works Park Fund 110-4250-2801 for Eligible Funding Expenditures

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, Accepting the Funding Award in the Amount of $240,915 from the State of California, Department of Recycling Resources and Recovery, Through the SB 1383 Local Assistance Grant Program (OWR4) and Authorizing the Administrative Services Director to Record Revenues to Account 110-0454 in the Amount of $240,915, and to Record a Supplemental Appropriation of $240,915 in the Public Works Park Fund 110-4250-2801 for Eligible Funding Expenditures.

BACKGROUND:

The Department of Resources Recycling and Recovery (CalRecycle) is administering a grant program meant to provide aid in the implementation of regulations adopted by CalRecycle pursuant to Chapter 395, Statutes of 2016, and SB170 Budget Act of 2021. This non-competitive grant program provides funding to local jurisdictions to assist with the implementation of regulation requirements associated with SB 1383, including but not limited to:

1. Capacity Planning

2. Collection

3. Edible Food Recovery

4. Education and outreach (includes organic waste & edible food recovery)

5. Enforcement and Inspection

6. Program Evaluation/Gap Analysis

16.C

7. Procurement Requirements

8. Record Keeping

ANALYSIS:

The City of Hemet intends to utilize the grant funds to perform a variety of major efforts. First, the City intends to utilize the funds to supplement the education and outreach efforts of the City's franchise hauler by expanding outreach to the Hemet Unified School District (HUSD). The City intends to continue an outreach program that targets elementary school students. The City would also like to purchase small household food waste pails to distribute to residents.

Secondly, the City intends to procure and apply recovered/recycled organic products (e.g. mulch) throughout the City of Hemet’s Landscape Maintenance Districts (LMD), City facilities, and City parks.

Finally, the City intends to explore additional capacity program outreach, looking for opportunities to align this grant with the City's homeless mitigation efforts to ensure that the maximum amount of edible food can be redirected into food banks and similar programs.

DISCUSSION:

The SB 1383 regulations require that jurisdictions conduct education and outreach on organic recycling to all residents, businesses (including those that generate edible food that can be donated), haulers, solid waste facilities, local food banks, and other food recovery organizations.

CalRecycle notified City staff that additional funds became available and that the amount that can be allocated to Hemet increased from $166,510 to $290,915 and was then decreased to $240,915 due to a clerical error from CalRecycle. This item replaces the item approved on March 12, 2024 that had the amount of $290,510.

PREVIOUS COUNCIL ACTION:

 December 12, 2023 - The City Council approved the application for the SB1383 Local Assistance Grant Application for $166,510 to supplement the education and outreach efforts of the City's franchise hauler by expanding outreach to the HUSD, to procure and apply recovered/recycled organic products (e.g. mulch) throughout the City of Hemet’s Landscape Maintenance Districts (LMD), and to explore additional capacity program outreach to align this grant with the City's homeless outreach to ensure that the maximum amount of edible food can be redirected into food banks and homeless mitigation efforts.  March 12, 2024 - The City Council accepted the funding award in the amount of $290,915 as provided by CalRecycle.

STRATEGIC PLAN INTEGRATION:

GOAL ONE: QUALITY OF LIFE:

To ensure that Hemet is safe, clean, attractive and comfortable for all who live, work, and visit.

Objective 1: Enhance the visual appearance of the community to make it attractive and reduce blight.

Objective 2: Explore and implement homelessness solutions for the City of Hemet.

16.C

GOAL THREE: COMMUNITY ENGAGEMENT
To connect and participate in a constant dialogue between members of the community, City staff, and elected officials to promote togetherness and positivity.

Objective 1: Deliver messaging to the Community that connects, is consistent, and relevant.

Objective 3: Increase the community's pride within the City.

GOAL FOUR: PARTNERSHIP & COLLABORATION
To pursue partnerships that will increase the opportunities available to the community, including our businesses, unemployed, and youth populations.

Objective 2: Develop concepts and programs to enhance the quality of life services.

GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.

Objective 1: Operate in a financially sustainable manner.

Objective 2: Evaluate existing practices to ensure continuity with industry best practices.

Objective 3: Provide Council with policies that are consistent while lessening liabilities.

Objective 4: Increase employee retention by training and creating a positive workplace.

Objective 5: Streamline fire prevention coordination efforts.

FISCAL IMPACT:

There is a request to increase revenue appropriations in account 110-0454 in the amount of $240,915, and record a supplemental appropriation of $240,915 in the Public Works Park Fund 110- 4250-2801 for Eligible Funding Expenditures. This action replaces the action authorized on March 12, 2024, in the amount of $290,915 as erroneously provided by CalRecycle.

ALTERNATIVE(S):

The Council may choose not to accept the grant award and provide alternate direction to the City Manager.

ATTACHMENT(S):

Attachment 1_Resolution for SB1383 Local Assistance Grant_April 23

16.C

CITY OF HEMET RESOLUTION NO. 2024-XXX 1
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CITY OF HEMET

HEMET, CALIFORNIA
RESOLUTION NO. 2024-xxx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HEMET, CALIFORNIA, ACCEPTING THE FUNDING
AWARD IN THE AMOUNT OF $240,915 FROM THE

STATE OF CALIFORNIA, DEPARTMENT OF RECYCLING
RESOURCES AND RECOVERY, THROUGH THE SB 1383
LOCAL ASSISTANCE GRANT PROGRAM (OWR4); AND

AUTHORIZE THE ADMINISTRATIVE SERVICES
DIRECTOR TO RECORD REVENUES TO ACCOUNT 110-
0454 IN THE AMOUNT OF $240,915, AND TO RECORD A
SUPPLEMENTAL APPROPRIATION OF $240,915 IN THE
PUBLIC WORKS PARK FUND 110-4250-2801 FOR
ELIGIBLE FUNDING EXPENDITURES.

The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:

WHEREAS, the City of Hemet, approved Ordinance 1986 amending Chapter 62 of the Hemet Municipal Code to incorporate the State mandated requirements of Senate Bill 1383 on November 9, 2021, held a second reading on December 14, 2021 and that said Ordinance became effective on or about January 14, 2022; and WHEREAS, the Department of Resources Recycling and Recovery (CalRecycle) offers the SB 1383 Local Assistance Grant Program pursuant to Chapter 395, Statutes of 2016; and
WHEREAS, this non-competitive grant program will provide one-time funding to local jurisdictions to assist with the implementation of regulation requirements associated with SB 1383; and

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CITY OF HEMET RESOLUTION NO. 2024-XXX 2
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WHEREAS, the City is eligible for the receipt of grant funds in the amount of $240,915.00 which may be used to supplement the education and outreach efforts of the City's franchise hauler, by expanding outreach to the Hemet Unified School District; and
WHEREAS, continuing an outreach program that targets elementary school students; and purchasing small household food waste pails to distribute to residents; and
WHEREAS, procure and apply recovered/recycled organic products (i.e. Mulch) throughout the City of Hemet’s Landscape Maintenance District’s (LMD); and WHEREAS, explore additional capacity program outreach, looking for opportunities to align this grant with the City's Homeless outreach to ensure that the maximum amount of edible food can be redirected into food banks and homeless program.

WHEREAS, The City Council approved the SB1383 Local Assistance Grant Application for $166,510 on December 12, 2023, subject to adoption of a resolution of the City authorizing and accepting said grant. On March 12, 2024, the City Council approved to accept an increase amount of $290,915. but due to a clerical error by CalRecycle, our grant award was decreased to $240,915; and WHEREAS, upon submittal of the resolution accepting the amount of $290,915, CalRecycle informed that they made a clerical error and the amount should be $240,915 and that they would need a new resolution in that amount; and

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CITY OF HEMET RESOLUTION NO. 2024-XXX 3
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS:

SECTION 1.The above recitals are all true and correct
SECTION 2.Approves the filing of application for SB 1383 Local Assistance Grant Program in the Amount of $240,915;
SECTION 3.Authorizes the Finance Director to Record Revenues to Account 110-0454 in the amount of $240,915, and to Record a Supplemental Appropriation of $240,915 in the Public Works Park Fund 110-4250-2801 for Eligible Funding Expenditures replacing the previous authorization from March 12, 2024 in the amount of $290,915.

SECTION 4.. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines.

SECTION 5. This Resolution shall take effect upon its adoption.