MAYOR AND CITY COUNCIL:
Joe Males
Mayor (District 4)
Jaculin "Jackie" Peterson
Mayor Pro Tem (District 2)
Carole Kendrick
Council Member (District 1)
Malcolm Lilienthal
Council Member (District 3)
Linda Krupa
Council Member (District 5)
Mark Prestwich
City Manager
Steven Graham
City Attorney
John P. Maier
City Clerk
CITY COUNCIL AGENDA
CITY OF HEMET, CALIFORNIA
Tuesday, April 23, 2024
City Council Chamber
450 E. Latham Ave., Hemet, California 92543
SPECIAL AND AMENDED REGULAR MEETING AT 7:00 P.M.
Council Chamber: In-person participation is limited in the Council Chamber in order to maintain social distancing room capacity.
Live Stream: This meeting will be live-streamed on the City's website at hemetca.gov/agenda.
Public Comments: Members of the Public who wish to comment on matters before the Council, in lieu of attending in person, may submit comments on or before 2:00 p.m. the day of the meeting by using the following link: Online Comment Form. Comments will be recorded in the official meeting record.
Teleconference: ***UPDATED PROCEDURES***POTENTIAL USE OF AB 2449’S JUST CAUSE OR EMERGENCY CIRCUMSTANCES PROVISIONS In the event a City Councilmember joins the meeting virtually under AB 2449, then members of the public can utilize the number below to participate via teleconference. If all participating Councilmembers are physically present, then the call-in feature will be unavailable, but the meeting can still be viewed at the link:
https://us02web.zoom.us/j/86473156660
Webinar ID: 864 7315 6660
Passcode: 745765
Telephone: Dial (for higher quality, dial a number based on your current location):
US: +1 669 900 6833 or +1 253 215 8782
Notice Regarding Americans with Disability Act
In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting or if you need agenda documents provide in an alternate format, please contact the City Clerk’s Office at (951) 765-2307 at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made (28CFR 35.102-35.104 ADA Title II)
Page
1. REGULAR MEETING - 7:00 P.M.
2. CALL TO ORDER
3. ROLL CALL
4. INVOCATION
5. PLEDGE OF ALLEGIANCE
6. COMMUNICATIONS FROM THE PUBLIC
Welcome to a meeting of the Mayor and City Council of the City of Hemet Anyone who wishes to speak during public comment or on a particular item will be required to fill out a speaker slip and turn it in to the City Clerk. Each request will cover one speaker. There is a 3-minute-per-person time limit for all general public comments on non-public hearing items. All who wish to speak, including Council members and staff, need to be recognized by the Mayor before speaking.
Members of the public shall comply with the adopted Rules of Decorum, Resolution No. 4545. A copy of which can be requested through the City Clerk’s Office.
You may also fill out a form and submit your comments online at www.hemetca.gov and it will be read aloud.
Submittal must be done before 2:00 p.m. the day of the meeting. Please state your name and item you are commenting on before speaking.
6.A Public Comment for Items Listed on the Agenda: Consent and Discussion Items
6.B Public Comment for Items Not Listed on the Agenda, but within Jurisdictional Matter
7. PRESENTATIONS
7.A Proclamation for Asian American & Pacific Islander Month Staff Report #24-094 - Pdf
11 - 12
7.B Proclamation for The Arias Troubadours
The Arias Troubadours - Proclamation
13 7.C Proclamation for Arbor Day
Staff Report #24-075 - Pdf
15 - 16
7.D Proclamation for May is Mental Health Month
May is Mental Health Month - Proclamation
17 7.E County of Riverside Traffic Relief Plan Presentation
8. SPECIAL MEETING - 7:15 P.M. OR SHORTLY AFTER
9. CALL TO ORDER
10. ROLL CALL
11. PUBLIC COMMENT PERIOD - ITEMS ON SPECIAL MEETING AGENDA
12. PRESENTATIONS
12.A Proclamation for Honoring Anne Mayer, Riverside County Transportation Commission Executive Director
Staff Report #24-126 - Pdf
19 - 20
13. ADJOURNMENT OF SPECIAL MEETING, RETURN TO REGULAR MEETING
14. PUBLIC HEARING
The City Council’s Procedures for Public Hearing will be as follows:
o Staff will provide a report and clarification of items presented. o The public hearing will be opened for comments for those IN FAVOR of or IN OPPOSITION to the item: followed by rebuttal to any comments made. o The Public Hearing will be closed, and the City Manager may respond to any questions raised by the public (the public will not have an opportunity to respond.). o Discussion will be brought back to the City Council for direction or action.
14.A An Annual Review and Approval of the Annual Report for the Hemet Police Department's Specialized Equipment Use Policy, Per Ordinance 1998, Section 38-3
Staff Report #24-071 - Pdf
Staff Report #24-071 - Html
Recommendation:
It is respectfully recommended that the City Council:
Review and approve the Annual Report for the Hemet Police Department's Specialized Equipment Use Policy, per Ordinance 1998, Section 38-3.
21 - 106
15. RECEIVE AND FILE
15.A City of Hemet Budget Adjustments Dated February 29, 2024 Staff Report #24-082 - Pdf
Recommendation:
It is respectfully recommended that the City Council:
Receive and file the City of Hemet Budget Adjustments Dated February 29, 2024.
107 - 110
15.B Receive and file the Annual Comprehensive Financial Report and Single Audit Report Ending June 30, 2023
Staff Report #24-107 - Pdf
Recommendation:
It is respectfully recommended that the City Council:
111 - 312
Receive and file the Annual Comprehensive Financial Report and Single Audit Report for the fiscal year ended June 30, 2023.
15.C Riverside County Civil Grand Jury Recruitment
Staff Report #24-123 - Pdf
Recommendation:
It is respectfully recommended that the City Council:
Receive and file the presentation for Riverside County Civil Grand Jury Recruitment.
313 - 314
16. CONSENT CALENDAR
All Consent Calendar items will be acted upon by a single action of the City Council unless otherwise requested by an individual Council Member for separate consideration.
16.A 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 Staff Report #24-108 - Pdf
Recommendation:
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. 315 - 365
16.B Approval of the City Council Special Meeting Minutes of April 3, 2024 Staff Report #24-119 - Pdf
Recommendation:
It is respectfully recommended that the City Council:
Approve the City Council Special Meeting Minutes of April 3, 2024. 367 - 370
16.C 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 371 - 378
110-4250-2801 for Eligible Funding Expenditures
Staff Report #24-088 - Pdf
Recommendation:
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.
16.D Accept Building Forward Infrastructure Grant from the California State Library
Staff Report #24-020 - Pdf
Recommendation: It is respectfully recommended that the City Council:
Adopt a Resolution of the City Council of the City Of Hemet, California, Accepting the Building Forward Infrastructure Grant from the California State Library in the amount of $2,020,098 and authorizing the Administrative Services Director to establish appropriations of $2,020,098 in miscellaneous Grant Fund 266 and $505,025 in Library Development Impact Fee Fund 363 to add solar panels and a backup generator at the Hemet Public Library and authorize the City Manager or designee to execute all documents and contracts for this project. 379 - 429
16.E A Resolution of the City Council of the City of Hemet, California, Awarding Professional Services Agreements to the Two (2) Top Ranked Firms for On-Call, As Needed Professional Services for Hydrology, Hydraulic, and Water Quality Management Plan Preparation and Plan Checks and Authorizing the City Manager to Execute All Documents Related to the Agreements as Approved in Final Form by the City Attorney
Staff Report #24-100 - Pdf
Recommendation:
It is respectfully recommended that the City Council:
Adopt a Resolution of the City Council of the City of Hemet, California, Awarding Professional Services Agreements to the Two (2) Top Ranked Firms for On-Call, As Needed Professional Services for Hydrology, Hydraulic, and Water Quality Management Plan Preparation and Plan Checks and Authorizing the City Manager to Execute All Documents Related to the Agreements as Approved in Final Form by the City Attorney.
431 - 593
16.F A Resolution of the City Council of the City of Hemet, California, Awarding Vance Corporation the Citywide Street Rehabilitation Project, CIP 5690, in the Amount of $1,869,564, Waiving any Minor Bid Irregularities, Authorizing the City Manager to Execute all Contract Documents; Approving Additional Construction Expenditures Not to Exceed 10% of the Contract Amount or approximately $186,957; Approving Materials Testing in the Amount of $30,000; Authorizing the Administrative Services Director to Appropriate an Additional $839,913 from the Fund Balance of Fund 221 Road Maintenance and
Rehabilitation Account (RMRA) to fund the total project cost; and Authorizing the City Clerk to Record the Notice of Completion upon Acceptance of the Work by the City Engineer
Staff Report #24-087 - Pdf
Recommendation:
It is respectfully recommended that the City Council:
Adopt a Resolution of the City Council of the City of Hemet, California, Awarding Vance Corporation the Citywide Street Rehabilitation Project, CIP 5690, in the Amount of $1,869,564, Waiving any Minor Bid Irregularities, Authorizing the City Manager to Execute all Contract Documents; Approving Additional Construction Expenditures Not to Exceed 10% of the Contract Amount or approximately $186,957; Approving Materials Testing in the Amount of $30,000; Authorizing the Administrative Services Director to Appropriate an Additional $839,913 from the Fund Balance of Fund 221 Road Maintenance and
Rehabilitation Account (RMRA) to fund the total project cost; and Authorizing the City Clerk to Record the Notice of Completion upon Acceptance of the Work by the City Engineer.
595 - 839
16.G A Resolution of the City Council of the City of Hemet, California, Authorizing the City Manager to Accept the FY2425 CalRecycle Local Government Waste Tire Cleanup Grant in the Amount of $69,000 and Authorizing the Administrative Services Director to Increase Estimated Revenues by $69,000 to Appropriate Funds for Illegal Tire Dump Cleanup
Staff Report #24-122 - Pdf
Recommendation:
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 Accept the FY2425 CalRecycle Local Government Waste Tire Cleanup Grant in the approximate amount of $69,000 and Authorizing the Administrative Services Director to Increase Estimated Revenues by $69,000 to Appropriate Funds for Illegal Tire Dump Cleanup.
841 - 863
17. DISCUSSION - ACTION ITEMS
17.A A Resolution of the City Council of the City of Hemet, California, Approving the Sixth Amendment in the amount of $25,000 to the Agreement for Services between the City of Hemet and Ace Weed Abatement for a Total Contract Amount Not to Exceed $83,300 per City Fiscal Year and Authorizing the City Manager to Execute the Agreement Staff Report #24-092 - Pdf
Recommendation: It is respectfully recommended that the City Council:
Adopt a Resolution of the City Council of the City of Hemet, California, Approving the Sixth Amendment in the amount of $25,000 to the Agreement for Services between the City of Hemet and Ace Weed Abatement for a Total Contract Amount Not to Exceed $83,300 per City Fiscal Year and Authorizing the City Manager to Execute the Agreement
865 - 876
17.B A Resolution of the City Council of the City of Hemet, California, Declaring a Hazardous Condition Pursuant to Government Code Sections 39560 et seq. Relating to Weeds, Rubbish, and Refuse Upon Parkways or Private Property within the City of Hemet
Staff Report #24-089 - Pdf
Recommendation:
It is respectfully recommended that the City Council:
Adopt a Resolution of the City Council of the City of Hemet, California, declaring a hazardous condition pursuant to Government Code Section 39560 Et Seq. relating to weeds, rubbish, and refuse upon parkways or private property within the City; and Set a Public Hearing on May 28, 2024, for objections to the proposed weed abatement.
877 - 897
17.C A Resolution of the City Council of the City of Hemet, California, Approving a Recovered Organic Waste and Recycled-Content Paper Product Procurement Policy
Staff Report #24-112 - Pdf
Recommendation:
It is respectfully recommended that the City Council:
Adopt a Resolution of the City Council of the City of Hemet, California, Approving a Recovered Organic Waste and Recycled-Content Paper Product Procurement Policy.
899 - 916
17.D Consideration of Request from Western Science Center (WSC) Exempting the Construction of the Western Center Academy Multi- Purpose Building from City of Hemet Development Impact Fee for Bridges, Signals, and Thoroughfares
Staff Report #24-101 - Pdf
917 - 926
Recommendation:
It is respectfully recommended that the City Council:
Adopt a Resolution authorizing the deferral of Development Impact Fee for Bridges, Signals, and Thoroughfares for the Construction of the Western Center Academy Multi-Purpose Building from Development Impact Fee for Bridges, Signals, and Thoroughfares
18. CITY COUNCIL AND STAFF REPORTS
COUNCIL MEMBER KRUPA
1. Hemet Housing Authority
2. Investment Oversight Committee
3. Hemet Public Library Board of Trustees
4. Riverside County Airport Land Use Commission *
5. League of California Cities
6. Riverside County Transportation Commission *
7. Riverside Transit Agency
8. Western Riverside County Conservation Authority *
9. Hemet San Jacinto Water Master Board *
10. Planning Commission
COUNCIL MEMBER LILIENTHAL
1. Hemet Housing Authority
2. Skate Park Committee
3. Community Action Commission of Riverside County
4. League of California Cities
5. Riverside County Transportation Commission *
6. Riverside Transit Agency *
7. Western Riverside Council of Governments *
COUNCIL MEMBER KENDRICK
1. Investment Oversight Committee
2. Planning Commission
3. Riverside County Habitat Conservation Agency
4. Western Riverside County Conservation Authority *
5. League of California Cities
6. CAJPIA Board
MAYOR PRO TEM PETERSON
1. Investment Oversight Committee
2. Riverside County Habitat Conservation Agency
3. Ramona Bowl Board of Directors
4. Hemet San Jacinto Water Master Board *
5. League of California Cities
6. Western Riverside Council of Governments *
7. CAJPIA Board
MAYOR MALES
1. Skate Park Committee
2. League of California Cities
3. Western Riverside Council of Governments *
4. Western Community Energy
5. Planning Commission
AD-HOC COMMITTEE REPORTS
1. Council Protocols Ad-Hoc Committee (Peterson/Krupa)
2. Clean up/Graffiti Ad-Hoc Committee (Lilienthal/Males)
3. Homeless Outreach Ad-Hoc Committee (Males/Peterson)
4. Business Outreach Ad-Hoc Committee (Males/Peterson)
5. Cal Trans Liaison Ad-Hoc Committee (Peterson/Krupa)
6. CDBG Ad-Hoc Committee (Lilienthal/Kendrick)
7. Banner Program Ad-Hoc Committee (Krupa/Males)
8. Veterans Memorial Ad-Hoc Committee (Peterson/Males)
9. Strategic Plan Update Ad-Hoc Committee (Kendrick/Lilienthal)
10. Arts & Culture Ad-Hoc Committee (Krupa/Lilienthal)
CITY MANAGER MARK PRESTWICH
19. ADJOURNMENT
AFFIDAVIT OF POSTING
I, John Paul Maier, MMC, City Clerk for the City of Hemet, declare under penalty of perjury that the foregoing agenda was posted at City Hall located at 445 E. Florida Ave., the Council Chamber located at 450 E. Latham Ave., Hemet, CA, and the City Website.
Date & Time: April 22, 2024 at 6:00 p.m.
Meeting Schedule: The City Council of the City of Hemet regularly meets on the second and fourth Tuesdays of each month at 7:00 p.m., unless otherwise noted. Closed and Special Sessions will be duly noticed as needed.
Council Agendas: Agendas for Regular Meetings are available for public review on the City’s website at hemetca.gov and in the City Clerk’s Office, 445 E. Florida Ave. typically by 4:00 p.m. on the Thursday prior to the meeting, but no later than 72 hours prior to the meeting. Agendas for Closed and Special Sessions are made available at least 72 hours prior to the meeting when possible, but no later than 24 hours prior to the meeting.
Livestream: Regular City Council Meetings are available for viewing during the meeting at hemetca.gov.
Use of Equipment: Please contact the City Clerk’s Office if requesting to use the chamber equipment as part of a scheduled presentation 24 hours prior to the meeting at (951) 765-2307
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:
Proclamation for Asian American & Pacific Islander Month
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
STRATEGIC PLAN INTEGRATION:
N/A
ATTACHMENT(S):
Asian American & Pacific Islander Month - Proclamation
7.A
Joe Males, Mayor
WHEREAS, The month of May was chosen as Asian Pacific American Heritage Month to commemorate the immigration of the first Japanese citizen, Nakahama Manjiro, to the United States on May 7, 1843, but also the anniversary of the May 10, 1869, completion of the first Transcontinental Railroad, built with the back-breaking labor of nearly 20,000 Chinese immigrants; and
WHEREAS, the Asian Americans and Pacific Islanders (AAPI) includes devoted community members who serve as artists, business owners, educators, health care professionals, lawyers and judges, clergy members, first responders, and military personnel; and WHEREAS, in May, we celebrate the achievements and contributions of Asian Americans and Pacific Islanders that enrich our history, society, and culture; and WHEREAS, Asian American Pacific Islanders have distinguished themselves as leading researchers in science, medicine, and technology; innovative farmers and ranchers; distinguished lawyers, judges, and government leaders; in arts; literature, and sports; as war heroes who defended our country from fascism; and peacetime healthcare heroes; and WHEREAS, today more than 20 million Asian American Pacific Islanders live in the United States and, through their actions, make America a more vibrant, prosperous, and secure nation.
NOW, THEREFORE, I, Joe Males, Mayor of the City of Hemet, along with the Hemet City Council, hereby proclaim May 2024 as:
ASIAN AMERICAN & PACIFIC ISLANDER MONTH
In the City of Hemet, encourage all citizens to learn more about Asian American and Pacific Islander heritage and celebrate this month with cultural events and educational activities.
Malcolm Lilienthal, CouncilMember
Jackie Peterson, Mayor ProTem
Carole Kendrick, CouncilMember
PRESENTED APRIL 23, 2024
City of HemetCalifornia
Proclamation
Asian American & Pacific Islander Month
Linda Krupa, Council Member
7.A
Joe Males, Mayor
WHEREAS, in 1924 Jose Arias and his troubadours were invited to perform for the Ramona Pageant; and
WHEREAS, one hundred years later, that relationship continues to this day that in April 2024, his nephews, grandchildren, and now even his great-grandchildren will be the Ramona play’s orchestra, singers, and dancers; and
WHEREAS, founded in 1915 by Jose at the occasion of the Panama-California Exposition in San Diego, Ca., the Arias Troubadours have been instrumental in preserving in performance the traditions and influence of the music of early California; and WHEREAS, over the decades, the Arias Troubadours has performed for U.S. Presidents such as former President George Bush, Sr., former President Bill Clinton, and countless celebrities such as Gilbert Roland, Ricardo Montalban, John Wayne, Frank Sinatra, Bob Hope, Mel Gibson, Antonio Banderas, Melanie Griffith, and Cheech Marin; and WHEREAS, their dedication and commitment to the heritage of Ramona’s music has in no small way helped Ramona achieve one hundred years as one of the most cherished cultural events in the United States.
NOW, THEREFORE, I, Joe Males, Mayor of the City of Hemet, along with the Hemet City Council, hereby proclaim the Day of April 27, 2024 as:
The Arias Troubadours
And encourage the community to visit the Ramona Pageant to cherish the Arias Troubadours music.
Malcolm Lilienthal, CouncilMember
Jackie Peterson, Mayor ProTem
Carole Kendrick, CouncilMember
PRESENTED APRIL 23, 2024
City of HemetCalifornia
Proclamation
The Arias Troubadours
Linda Krupa, Council Member
7.B
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Apr 23 2024
Department: City Council
Submitted by: Mark Prestwich, City Manager
John Maier, City Clerk;
☐ Receive and File ☐ Consent Calendar ☐ Business Item ☐ Public Hearing
TITLE:
Proclamation for Arbor Day
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
STRATEGIC PLAN INTEGRATION:
N/A
ATTACHMENT(S):
Attachment 1: Arbor Day - Proclamation
7.C
Joe Males, Mayor
WHEREAS, In 1872, J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special day be set aside for the planting of trees; and WHEREAS, this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska; and
WHEREAS, Arbor Day is now observed throughout the nation and the world; and WHEREAS, trees can be a solution to combating climate change by reducing the erosion of our precious topsoil by wind and water, cutting heating and cooling costs, moderating the temperature, cleaning the air, producing life-giving oxygen, and providing habitat for wildlife; and
WHEREAS, trees in our city increase property values, enhance the economic vitality of business areas, and beautify our community; and
WHEREAS, trees, wherever they are planted, are a source of joy and spiritual renewal.
NOW, THEREFORE, I, Joe Males, Mayor of the City of Hemet, along with the Hemet City Council, do hereby proclaim the day of April 26, 2024 as:
Arbor Day
and I urge all citizens to celebrate Arbor Day, support efforts to protect our trees and woodlands, and urge all citizens to plant trees to gladden the heart and promote the well-being of this and future generations.
Malcolm Lilienthal, CouncilMember
Jackie Peterson, Mayor ProTem
Carole Kendrick, CouncilMember
PRESENTED APRIL 23, 2024
City of HemetCalifornia
Proclamation
Arbor Day
Linda Krupa, Council Member
7.C
Joe Males, Mayor
WHEREAS, mental illness affects individuals of all ages, backgrounds, employment statuses, education levels, and income levels and is especially prevalent among youth and seniors; and WHEREAS, Mental Health America established "May is Mental Health Month" in 1949 to raise awareness and understanding of mental health; and
WHEREAS, mental health challenges are among the most common health conditions in California, affecting one in six adults and significantly impacting both those experiencing these challenges and their loved ones; and
WHEREAS, many Californians with serious mental illness face significant difficulties in daily life and, if left untreated, have dramatically reduced life expectancies; and WHEREAS, stigma surrounding mental health often isolates those facing challenges, causing them to delay seeking help; and
WHEREAS, recovery from mental illness is possible, and all Californians should know that support is available regardless of their circumstances; and
WHEREAS, fostering a community where everyone feels empowered to seek the support they need is essential to ending the stigma around mental health; and WHEREAS, access to support and overcoming stigma are of vital importance.
NOW, THEREFORE, I, Joe Males, Mayor of the City of Hemet, along with the Hemet City Council, hereby proclaim the month of May 2024 as:
May is Mental Health Month
And encourage the community to enhance public mental health awareness and reduce the stigma surrounding mental health.
Malcolm Lilienthal, CouncilMember
Jackie Peterson, Mayor ProTem
Carole Kendrick, CouncilMember
PRESENTED APRIL 23, 2024
City of HemetCalifornia
Proclamation
May is Mental Health Month
Linda Krupa, Council Member
7.D
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:
Proclamation for Honoring Anne Mayer
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
STRATEGIC PLAN INTEGRATION:
N/A
ATTACHMENT(S):
Honoring Anne Mayer - Proclamation
12.A
Joe Males, Mayor
WHEREAS, Anne Mayer began her career as a Professional Engineer after she graduated with a civil engineering degree from Michigan State University. In May 2005, Anne joined the Riverside County Transportation Commission (RCTC) as Deputy Executive Director and was appointed Executive Director in 2007. Prior to joining RCTC, Anne served with the California Department of Transportation (Caltrans), including three years as District 8 Deputy Director for Design and four years as District 8 Director, where she was responsible for management of the state highway system in San Bernardino and Riverside counties; and WHEREAS, under Anne Mayer’s leadership, RCTC has continuously delivered on promises made to Riverside County residents through the Measure A half-cent sales tax to fund regional and local transportation improvements and habitat conservation, approved by Riverside County voters first in 1988 and again in 2002.
Throughout her time serving at RCTC, Anne Mayer has ensured that transportation projects and programs safely connect Riverside County’s diverse communities while preserving the region’s natural landscape; and WHEREAS, with over 27 years of experience in the public works field, Anne Mayer has successfully led RCTC and all 81 members of her team to oversee the completion of billions of dollars in transportation improvements to benefit the residents of Riverside County and the region’s economy. These projects include the completion of the Perris Valley Line as the first expansion of Metrolink service since 1994, the I-215 Bi-County Gap Closure Project, the I-15 Express Lanes Project, and the SR-91 Corridor Improvement Project; and WHEREAS, in 2022, Anne Mayer spearheaded the completion of five major projects, including the 91 Corridor Operations Project, the I-15 Railroad Canyon Road Interchange Project, the I-15 Interim Corridor Operations Project, the 60 Truck Lanes Project, and the I-215 Placentia Avenue Interchange; and WHEREAS, Anne Mayer has been a leading voice for transportation infrastructure improvements across inland Southern California for 40 years. Her dedicated work has earned her recognition, including the California Transportation Foundation’s Person of the Year award, the Orange County Chapter Women’s Transportation Seminar Woman of the Year award, and the Inland Empire (WTS) Woman of the Year Award. Additionally, the Greater Riverside Chambers of Commerce presented Anne with the Athena Award for demonstrated professional achievement, community service, and mentorship.
NOW, THEREFORE, I, Joe Males, Mayor of the City of Hemet, along with the Hemet City Council, hereby proclaim the Day of April 23, 2024, as:
Honoring Anne Mayer
And encourage residents to congratulate Anne’s positive impacts she has accomplished during her career.
Malcolm Lilienthal, CouncilMember
Jackie Peterson, Mayor ProTem
Carole Kendrick, CouncilMember
PRESENTED APRIL 23, 2024
City of HemetCalifornia
Proclamation
Honoring Anne Mayer
Linda Krupa, Council Member
12.A
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Apr 23 2024
Department: Police Department
Submitted by: Mark Prestwich, City Manager
Michael Arellano, Chief of Police;
☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing
TITLE:
An Annual Review and Approval of the Annual Report for the Hemet Police Department's Specialized Equipment Use Policy, Per Ordinance 1998, Section 38-3
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
Review and approve the Annual Report for the Hemet Police Department's Specialized Equipment Use Policy, per Ordinance 1998, Section 38-3.
BACKGROUND:
On September 30, 2021, California Governor Gavin Newsom signed Assembly Bill 481 (AB481), which became effective January 1, 2022. The bill required law enforcement agencies to create and adopt a Military Equipment Use Policy by May 1, 2022.
AB481 identifies certain law enforcement equipment as “military equipment” and subsequently requires oversight from a governing body for purchase and usage. The governing body for the Hemet Police Department is the elected Hemet City Council and Mayor or their appointed body.
ANALYSIS:
The purpose of this request is to seek approval and support from the Hemet City Council in adopting the Hemet Police Department’s AB481 Specialized Equipment List of specialized equipment and the Hemet Police Department’s Specialized Equipment Use Policy. The Specialized Equipment Use Policy establishes an ongoing standard and policy for safe de-escalation techniques and the use and application of “military equipment”; which is attached as required by AB481.
The AB481 Specialized Equipment List, identifies items currently deployed by law enforcement agencies in this country, as well as others throughout the State of California, and the nation. AB481
14.A
lists “military equipment” that is recognized and more appropriately identified by local, state, and federal law enforcement entities as specialized police equipment.
Specialized police equipment is used only by highly trained and experienced law enforcement professionals. The Hemet Police Department’s itemized list of specialized equipment is attached to this staff report, as required by AB 481. This itemized list of specialized equipment ranges from modernized tools, aerial drones, armored vehicles, and chemical agents, whose primary purpose is the preservation of human life during critical incidents. These critical incidents often involve the apprehension of high risk suspects, search and rescue, and immediate responses to catastrophic events. The use of this specialized equipment reduces liability to the department and the City. The use also reduces the potential for physical injury to the public and department personnel. It also allows for the application of de-escalation tactics during high-risk encounters with armed and violent suspects. The tools, equipment, and resources outlined in this specialized equipment list can function as a force-multiplier, in some cases. This helps to reduce hours worked and is ultimately a cost savings to the City.
The Association of Riverside County Chiefs of Police and Sheriff (ARCCOPS) have endorsed the list of specialized equipment which is already in use across Riverside County. For context, the Riverside County Sheriff’s Department, the Riverside County District Attorney’s Office, and the Menifee and Murrieta Police Departments, over a span of many years, have acquired similar tools with approval from their respective Board of Supervisors and City Councils. This has been accomplished during the annual Hemet The purchases. item agenda Police individual as or processes, budget board Department has obtained similar approval from the City Council to acquire and use specialized equipment.
Through the Association of Riverside County Chiefs of Police and Sheriff's (ARCCOPS) mutual aid agreement, all cities within Riverside County, including the Hemet Police Department, have agreed to accept related policy, Use Equipment Specialized/Military use each of the to agency's any enforcement action throughout Riverside County.
As part of the Hemet Police Department’s mission to provide law enforcement services to the City of Hemet, it also works in conjunction with the Menifee and Murrieta Police Departments to provide Special Weapons and Tactics services (S.W.A.T.). This is done under the guidance of an approved and consolidated Memorandum of Understanding between the three cities. This memorandum of understanding allows for the shared use of resources and specialized equipment that are identified by AB481 as “military equipment.” The Department also operates in various capacities with various incorporated cities, as well as providing county-wide mutual aid services upon request.
The Hemet Police Department, and its Riverside County law enforcement partners, are responsible for the and its of protection the community, public of standard highest the ensuring safety, apprehension of criminal offenders. To help achieve and maintain the highest standard of public safety, it is important that the Hemet Police Department receive support from its local elected officials, who are committed to funding operational needs. This includes the approval to purchase and finance necessary tools, protective gear, and specialized equipment for the purpose of helping protect and save lives and property.
With the City Council’s partnership and approval, the Hemet Police Department can operate with the most advanced technology, equipment, and resources available, and allow the Hemet Police Department to be successful in their purpose of protecting and serving the community with increased effectiveness, use continued The tactics. preparedness, proper and of lifesaving specialized equipment will allow the Hemet Police Department to operate within the same professional and
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uniformed standards as other successful law enforcement agencies across the county, state, and country.
Although some of the specialized equipment and resources, listed as “military equipment” in AB481 can be found in a military environment, the purpose for the equipment deployed by law enforcement is significantly different.
For reference, the Hemet Police Department’s Specialized Equipment Use Policy and Specialized Equipment List are attached to this document.
PREVIOUS COUNCIL ACTION:
Specialized Equipment Use Policy and Ordinance annual review by City Council in June 2023 during a regular council meeting:
Action:
The City Council voted 5-0, in approval of the latest Annual Report for the Hemet Police Department's Specialized Equipment Use Policy (Policy 705), per Ordinance 1998, Section 38-3.
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 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 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.
FISCAL IMPACT:
The approval and support from the Hemet City Council in adopting the Hemet Police Department's Specialized Equipment List and the Hemet Police Department's Specialized Equipment Use Policy is vital to the effectiveness of the Hemet Police Department in the resolution of critical incidents.
Support from the City Council will significantly decrease the fiscal impact on Hemet residents and businesses, from the use of approved specialized equipment by the Hemet Police Department. While there is no fiscal impact to the adoption of this list, a considerable fiscal impact to Hemet residents and businesses may result from civil liability, if Hemet Police Department is not properly equipped
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with the specialized equipment and tools that are required to resolve critical incidents safely and effectively.
ALTERNATIVE(S):
The City Council may choose not to review and approve the Hemet Police Department's current and future Specialized Equipment List and its Specialized Equipment Use Policy; however, the Hemet Police Department would not have the authority to establish an ongoing standard and policy safe de- escalation techniques and the use and application of "military equipment" as required by AB481.
ATTACHMENT(S):
Attachment 1_ Ordinance, Adding Section 38-3 2024 (1)
Attachment 2 HPD Policy 705 Specialized_Equipment 2024
Attachment 3 PowerPoint Ord 38-3 and AB481 2024 (3)
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City of Hemet Ordinance No. xxxx
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1 2
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7 8
CITY OF HEMET
HEMET, CALIFORNIA
ORDINANCE NO. xxxx
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, REVIEWING 38-3 OF THE
HEMET MUNICIPAL CODE AND THE SPECIALIZED
EQUIPMENT USE POLICY AND PROCEDURE FOR
THE ANNUAL REVIEW THEREOF
9 10 WHEREAS, the California Legislature enacted AB 481, adding Chapter 12.8 11 (commencing with Section 7070) to Division 7 of Title 1 of the Government Code, relating 12 to the acquisition of specialized law enforcement equipment, referred to by the California 13 Legislature as “military equipment” and its deployment by local law enforcement agencies; 14 and
15 WHEREAS, the Hemet Police Department obtain approval from the City Council of 16 Hemet Police Department policy 705, to use specialized equipment, referred to in 17 Government Code Section 7070 as military equipment; and 18 WHEREAS, the Hemet Police Department must publish on an annual basis a report 19 regarding such specialized equipment; and
20 WHEREAS, the City Council has approved the policy for the use of the specialized 21 equipment that it determined that the specialized equipment meets the specified 22 standards; and
23 WHEREAS, the City Council must annually review the ordinance and determine 24 whether to renew of the authorization; and
25 THE CITY COUNCIL OF THE CITY OF HEMET DOES HEREBY ORDAIN AS 26 FOLLOWS:
27 28
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City of Hemet Ordinance No. xxxx
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1 Section 1. The findings described above are hereby incorporated into this Ordinance 2 as though set forth in full below.
3 Section 2. Section 38-3 is hereby added to the Hemet Municipal Code to read as 4 follows:
5 “Sec. 38-3. – Adoption of Specialized Equipment Use Policy.” 6 (a) Purpose and Intent.
7 The purpose and intent of this Ordinance is to comply with the statutory 8 provisions of AB 481, codified as Chapter 12.8 (commencing with Section 9 7070) to Division 7 of Title 1 of the Government Code, relating to the 10 acquisition of specialized law enforcement equipment, referred to by the 11 California Legislature as “military equipment” and its deployment by local law 12 enforcement agencies.
13 (b) Adoption of Specialized Equipment Use Policy.
14 The City Council hereby approves the Specialized Equipment Use Policy on 15 file with the Chief of Police of the Hemet Police Department. 16 (c) Findings.
17 The City Council adopts and incorporates the findings required by 18 Government Code Section 7071(d).
19 (d) Annual Specialized Equipment Report.
20 1. On an annual basis, but no later than March 31 of each year, the Chief 21 of Police, or their designee, shall prepare a Specialized Equipment 22 Report that contains the information required by Government Code 23 Section 7072(a) for the previous calendar year.
24 2. Within thirty (30) days of the preparation of the Specialized 25 Equipment Report described in subsection (a) above, the Chief of 26 Police, or their designee, shall cause to be held at least one public 27 community engagement meeting to discuss the Specialized 28 Equipment Report. The public community meeting shall be noticed by
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City of Hemet Ordinance No. xxxx
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1 the City Clerk in the same manner as required for regular meetings of 2 the City Council and shall be held in a convenient location within the 3 City of Hemet.
4 (e) Publication.
5 The Chief of Police, or their designee, shall cause the current Specialized 6 Equipment Use Policy and the Specialized Equipment Report to be made 7 available on the City of Hemet’s website for public inspection. 8 (f) Renewal and Amendments to Specialized Equipment Use Policy. 9 1. Annual Renewal.
10 Each year no later than June 30, the Chief of Police, or their designee, 11 shall submit the Specialized Equipment Report described in 12 subsection (d) above to the City Council, along with either a renewal 13 of the existing Specialized Equipment Use Policy or an amended 14 policy with proposed changes.
15 2. Amendments.
16 The Chief of Police, or their designee, shall submit any proposed 17 amendments to the Specialized Equipment Use Policy to the City 18 Council before implementation.
19 3. Renewal and Approval of Amendments.
20 The items described in subsections (a) and (b) shall be submitted as 21 a receive and file item at a regular meeting of the Hemet City Council 22 held according to the Ralph M. Brown Act (Chapter 9 (commencing 23 with Section 54950) of Part 1 of Division 2 of Title 5) where the 24 opportunity for public comment is provided, no sooner than thirty (30) 25 days after the proposed renewal or amendment has been made 26 available on the City of Hemet’s website for public inspection. If the 27 City Council takes no action on the proposed renewal or amendment, 28 then the Specialized Equipment Use Policy along with any
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City of Hemet Ordinance No. xxxx
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1 amendments, shall go into effect immediately without further action of 2 the City Council and the findings described in subsection (c) above 3 shall be conclusively presumed made by the City Council. 4 5 Section 3. If any section, subsection, sentence, clause, phrase, or portion of this 6 Ordinance is held for any reason to be invalid or unconstitutional by the decision of any 7 court of competent jurisdiction, such decision shall not affect the validity of the remaining 8 portions of this Ordinance. The City Council hereby declares that it would have adopted 9 this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, 10 irrespective of the fact that any one or more sections, subsections, sentences, clauses, 11 phrases, or portions be declared invalid or unconstitutional. 12 13
14 Section 4. The Mayor shall sign and the City Clerk shall certify to the passage and 15 adoption of this Ordinance and shall cause the same to be published and posted according 16 to the provisions of law in that regard and this Ordinance shall take effect 30 days after its 17 final passage.
18 19
INTRODUCED at the regular meeting of Hemet City Council on April 23, 2024. 20 21 .
22 23
24 Joe Males, Mayor
25 ATTEST: APPROVED AS TO FORM:
26 27
28
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26 27
28 City of Hemet Ordinance No. xxxx
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1 John Paul Maier, City Clerk Steven Graham
2 City Attorney
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11 12
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19 20
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25
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1 State of California )
County of Riverside )
2 City of Hemet )
3 4 I, John Paul Maier, City Clerk of the City of Hemet, do hereby certify that 5 the foregoing Ordinance is the actual Ordinance adopted by the City Council of the City 6 of Hemet and was passed at a regular meeting of the City Council on the 11 day of June 7 2024.
8 9
AYES: Council Members: None.
10 NOES: Council Members: None.
11 ABSTAIN: Council Members: None.
ABSENT: Council Members: None.
12 13
14 15 John Paul Maier, City Clerk
16 17
18 19
20 21
22 23
24 25
26 27
28 City of Hemet Ordinance No. xxxx
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Copyright Lexipol, LLC 2024/03/14, All Rights Reserved.
Published with permission by Hemet Police Department
Specialized Equipment - 1
Hemet Police Department
Policy Manual
Specialized Equipment
705.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of specialized equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
705.1.1 DEFINITIONS
Definitions related to this policy include:
Governing body – The elected or appointed body that oversees the Department.
Specialized equipment – Means equipment that is "militaristic in nature" and is identified in Government Code Section 7071 (c) (1-15).
705.2 POLICY
It is the policy of the Hemet Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to specialized equipment.
705.3 SPECIALIZED EQUIPMENT COORDINATOR
The Operations Division Captain or their designee will act as the specialized equipment coordinator. The responsibilities of the specialized equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as specialized equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all specialized equipment annually. (d) Collaborating with any allied agency that may use specialized equipment within the jurisdiction of Hemet Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:
1. Publicizing the details of the meeting.
2. Preparing for public questions regarding the department's funding, acquisition, and use of equipment.
(f) Preparing the annual specialized equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of specialized equipment, and how the Department will respond in a timely manner.
Policy
705
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Published with permission by Hemet Police Department
Specialized Equipment - 2
Hemet Police Department
Policy Manual
Specialized Equipment
705.4 SPECIALIZED EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department: See attachment: Hemet PD Annual AB 481 Report - 2024 signed.pdf
705.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the specialized equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed specialized equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the specialized equipment at issue (Government Code § 7071). The specialized equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting specialized equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for specialized equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring specialized equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of specialized equipment within the jurisdiction of this department. (e) Using any new or existing specialized equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of specialized equipment.
(g) Acquiring specialized equipment through any means not provided above.
705.6 COORDINATION WITH OTHER JURISDICTIONS
Specialized equipment should not be used by any other law enforcement agency or member in this jurisdiction unless the specialized equipment is approved for use in accordance with this policy.
705.7 ANNUAL REPORT
Upon approval of a specialized equipment policy, the Chief of Police or the authorized designee should submit a specialized equipment report to the governing body for each type of specialized equipment approved within one year of approval, and annually thereafter for as long as the specialized equipment is available for use (Government Code § 7072).
The Chief of Police or the authorized designee should also make each annual specialized equipment report publicly available on the department website for as long as the specialized equipment is available for use. The report shall include all information required by Government
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Published with permission by Hemet Police Department
Specialized Equipment - 3
Hemet Police Department
Policy Manual
Specialized Equipment
Code § 7072 for the preceding calendar year for each type of specialized equipment in department inventory.
705.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of specialized equipment.
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Published with permission by Hemet Police Department
Attachments - 4
Policy Manual
Attachments
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Policy Manual
Hemet PD Annual AB 481 Report - 2024 signed.pdf
Copyright Lexipol, LLC 2024/03/14, All Rights Reserved.
Published with permission by Hemet Police Department
Hemet PD Annual AB 481 Report - 2024
signed.pdf - 5
Attachment
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AB 481 Annual Report - 2024 Page 1 of 57
HEMET POLICE DEPARTMENT
Annual Specialized Equipment Report - 2024
Assembly Bill 481
(California Government Code § 7072; Hemet Ordinance No. 38.3)
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AB 481 Annual Report - 2024 Page 2 of 57
TABLE OF CONTENTS
Definitions 3
Preface 5
Executive Summary 6
Reporting Requirements 8
Summary of Military Equipment 10
Command and Control Vehicles 11
Armored Vehicles 13
Unmanned Aerial Systems (UAS) 15
Rifles 21
Bolt-Action Rifles 28
Breaching Tools 31
Projectile Launchers 34
Diversionary Devices 39
Chemical Agents 41
Appendix A - Military Equipment Deployment 47
Appendix B - Military Equipment Quantities 49
Appendix C - Fiscal Impact 51
Appendix D - Allied Agency / Mutual Aid Military Equipment 54
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AB 481 Annual Report - 2024 Page 3 of 57
DEFINITIONS
According to AB 481, the following definitions apply only to the department's current military equipment inventory and potential future military equipment acquisitions for operational needs. (For a more detailed list, refer to Government Code section 7070, for “military equipment” as defined within the Assembly Bill.) “Governing body” means the Hemet City Council and Mayor. “Military equipment” or “Specialized equipment” means the following:
1. Unmanned, remotely piloted, powered aerial or ground vehicles. This definition applies to the department’s inventory of Unmanned Aerial Systems (UAS) and robots.
2. Armored personnel carriers. However, police versions of standard consumer vehicles are specifically excluded from this definition. This definition applies to the department’s Lenco Bearcat.
3. Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. This definition applies to the department’s Mobile Command Center.
4. Battering rams, slugs, and breaching apparatuses that are explosive in nature.
However, items designed to remove a lock, such as bolt cutters, or a handheld ram designed to be operated by one person, are specifically excluded from this definition. This definition applies to the department’s inventory of breaching shotguns which are maintained by the SWAT Team and the department’s sought Kinetic Breaching Tool.
5. Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to sworn members. This definition applies to the department’s inventory of rifle/pistol-caliber carbines and sniper rifles.
6. “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls,” excluding standard, service-issued handheld pepper spray. This definition applies to the department’s inventory of flashbangs. Additionally, this definition applies to the department’s inventory of various chemical agents and chemical agent delivery systems maintained by the SWAT Team. These delivery systems are capable of dispersing chemical agents via burning, expulsion, liquid, or fog.
7. The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag”, rubber bullet, and specialty impact munition (SIM) weapons. This definition applies to all the Department’s inventory of 40 mm projectile launchers and less lethal shotguns.
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AB 481 Annual Report - 2024 Page 4 of 57
8. “Military equipment” or “Specialized equipment” does not include general equipment not designated as prohibited or controlled by the Federal Defense Logistics Agency.
“Military equipment use policy” refers to Hemet Police Department Policy 705 which requires a publicly released, written document governing the use of military equipment by the department that addresses, at a minimum, all of the following:
1. A description of each type of military equipment/specialized equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military/specialized equipment.
2. The purposes and authorized uses for which the department proposes to use each type of military/specialized equipment.
3. The fiscal impact of each type of military/specialized equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment.
4. The legal and procedural rules that govern each authorized use.
5. The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any sworn member is allowed to use each specific type of military/specialized equipment to ensure the full protection of the public’s welfare, safety, civil rights, and civil liberties and full adherence to the military/specialized equipment use policy.
6. The mechanisms to ensure compliance with the military/specialized equipment use policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy.
7. The procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military/specialized equipment, and how the department will ensure that each complaint, concern, or question receives a response in a timely manner.
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AB 481 Annual Report - 2024 Page 5 of 57
PREFACE
The Hemet Police Department retains and utilizes a wide variety of equipment that falls under the definition of AB 481. This equipment is used to assist the Hemet Police Department in its ultimate mission which is the preservation of life.
The Hemet Police Department recognizes critical incidents are unpredictable and dynamic in nature. The retention of this equipment alone does not warrant its use for every incident. The equipment listed in this report assists with the safe and swift resolution of these incidents.
Policy and procedure dictate when the equipment may be deployed in the field, how it may be used, and which officers are authorized to use it. However, not all situations can be predicted. The need for the incident commander, on-scene supervisor, or officers to deploy and utilize the equipment in a manner not outlined within policy or procedure may be necessary for the preservation of life in a rapidly evolving incident.
Further, incident commanders, supervisors, officers, and specific specialized units can authorize the use of equipment for each specific incident based on the totality of the circumstances.
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AB 481 Annual Report - 2024 Page 6 of 57
EXECUTIVE SUMMARY
On September 30, 2021, the Governor of the State of California approved AB 481 requiring law enforcement agencies to obtain approval of the applicable governing body by adoption of a military equipment use policy. The department is required to seek City Council approval of their military equipment use procedure by ordinance at a regular open meeting prior to taking certain actions relating to the funding, acquisition, or use of military equipment, as defined.
The bill allows the governing body to approve the funding, acquisition, or use of military equipment within its jurisdiction only if it determines that the military equipment meets specified standards. The ordinance is subject to an annual City Council review to determine whether, based on an annual military equipment report, the standards outlined in the approving ordinance have been met. The City Council may renew the authorizing ordinance, disapprove authorization for particular military equipment where standards have not been met, or require modifications to the military equipment use procedure to address any non-compliance with standards.
Finally, the bill requires the publication of the military/specialized equipment use procedure and the annual military/specialized equipment report on the department’s website. The military/specialized equipment use procedure must be posted on the website at least 30 days prior to the Council meeting.
Military/specialized equipment use was recorded by the Hemet Police Department for this report from January 1, 2023, to December 31, 2023, contemporaneous and in compliance with the timelines associated with the passage of AB 481 and corresponding City ordinance 38.3.
Summary of Use and Purpose of Use per Government Code § 7072(a)(1):
The military/specialized equipment listed in the table below was deployed operationally during the reporting period. On several occasions, multiple pieces of military equipment were deployed during the same incident. An example was the arrest of a barricaded suspect on November 6, 2023, that utilized five pieces of equipment: a command and control vehicle, an armored vehicle, unmanned aerial systems, diversionary devices, and chemical agents.
Military/Specialized equipment was deployed on 1314 incidents during the reporting period. During that time, the department responded to 92,207 calls for service per the department’s Records Management System. Military/Specialized equipment was deployed operationally on approximately 0.01425% of incidents the police department responded to.
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AB 481 Annual Report - 2024 Page 7 of 57
EQUIPMENT TYPE NUMBER OF DEPLOYMENTS
Command and Control Vehicles 7
Armored Vehicles 4
Unmanned Aerial Systems 1303
Diversionary Devices 3
Chemical Agents 1
Projectile Launcher 1
Summary of Complaints per Government Code § 7072(a)(2):
The department received no complaints regarding the use of military/specialized equipment during this reporting period.
Summary of Internal Audits or Policy Violations per Government Code § 7072(a)(3):
No policy violations were noted related to military/specialized equipment deployment internally or by citizen complaint.
Summary of Annual Cost of Military/Specialized Equipment per Government Code § 7072(a)(4): Refer to Appendix C
Quantity Possessed per Government Code § 7072(a)(5):
Refer to Appendix B
New Equipment Acquisition per Government Code § 7072(a)(6):
The department will seek to purchase the following during FY 2023-24:
• (02) Unmanned Aerial Systems
• (20) Diversionary Devices
• (01) Public Safety Command Center
• (01) G3 BearCat
• (02) Projectile Launchers
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AB 481 Annual Report - 2024 Page 8 of 57
REPORTING REQUIREMENTS
Government Code § 7072 states the following:
(a) A law enforcement agency that receives approval for a military/specialized equipment use policy according to Section 7071 shall submit to the governing body an annual military/specialized equipment report for each type of military equipment approved by the governing body within one year of approval, and annually thereafter for as long as the military equipment is available for use. The law enforcement agency shall also make each annual military/specialized equipment report required by this section publicly available on its internet website for as long as the military/specialized equipment is available for use.
The annual military/specialized equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:
(1) A summary of how the military/specialized equipment was used and the purpose of its use.
(2) A summary of any complaints or concerns received concerning the military/specialized equipment.
(3) The results of any internal audits, any information about violations of the military/specialized equipment use policy, and any actions taken in response.
(4) The total annual cost for each type of military/specialized equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military/ military/specialized equipment in the calendar year following submission of the annual military equipment report.
(5) The quantity possessed for each type of military/specialized equipment. (6) If the law enforcement agency intends to acquire additional military/specialized equipment in the next year, the quantity sought for each type of military equipment.
(b) Within 30 days of submitting and publicly releasing an annual military/specialized equipment report according to this section, the law enforcement agency shall hold at least one well-publicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions regarding the annual military/specialized equipment report and the law enforcement agency’s funding, acquisition, or use of military equipment.
In addition to maintaining the highest levels of public safety, the Hemet Police Department is committed to transparency, public trust, community partnerships, and compliance with the law. As such, the department has authored the following 2023
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AB 481 Annual Report - 2024 Page 9 of 57
Annual Military Equipment Report in accordance with annual reporting requirements outlined in AB 481 and Government Code 7072.
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AB 481 Annual Report - 2024 Page 10 of 57
SUMMARY OF MILITARY EQUIPMENT
The inventory of military/specialized equipment, particularly consumable material (ammunition, diversionary devices, less lethal impact munitions, etc.) fluctuates regularly. This is based on a variety of factors including, but not limited to, operational usage, operational deterioration, training, maintenance, and expiration and replenishment guidelines. The Hemet Police Department is committed to transparency in disclosing its military/specialized equipment inventory and related information to our community and elected officials in compliance with the law. The department strives to provide the most accurate military/specialized equipment inventory and information at the time of this report’s publication.
The following are the various types, descriptions, and guidelines for usage of military/specialized equipment currently employed by the Hemet Police Department:
(*NOTE: The manufacturer descriptions and source photos contained within are referenced via publicly accessible website source citations. The website source citations utilized in this report are for military equipment descriptive purposes only and are not an endorsement by the Hemet Police Department of a particular product or vendor.)
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AB 481 Annual Report - 2024 Page 11 of 57
COMMAND AND CONTROL VEHICLES
Description: Self-contained command posts designed to provide the Incident Commander with a mobile base of operation.
Capability: As a mobile base of operation, these vehicles contain specialized command, control, and communications equipment to assist with a variety of missions.
Usage: Command and control vehicles are to be utilized as an Incident Command Post for planned or unplanned events, natural disasters, and critical incidents, and for SWAT/CNT.
Training Requirements: The CNT team and designated Command Post personnel are trained quarterly in vehicle operation, equipment use, and driving. Operators will possess at a minimum, a basic class C driver’s license.
Fiscal Impact: See Appendix C
Lifespan: 20-year lifespan on chassis and vehicle structure. Upgrades are needed every 5-7 years to maintain IT systems.
The following page(s) detail the command and control vehicle(s) currently owned by the department.
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AB 481 Annual Report - 2024 Page 12 of 57
2000 Eagle Trailer
Manufacturer: Eagle Trailer
Manufacturer Description: No description available. (Custom build)
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AB 481 Annual Report - 2024 Page 13 of 57
ARMORED VEHICLES
Description: A 4x4, wheeled, armored personnel carrier capable of providing high ballistic protection, cover, limited breaching capability, and transport of officers and/or civilians at critical incidents and high-risk tactical operations.
Capability: Armored vehicles can support first responders in any hazardous, high-risk, or critical incident which would benefit from having a vehicle that provides a high level of ballistic protection.
Usage: To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization and assist in resolving critical incidents.
Training Requirements: The use of the armored vehicle is authorized for officers during critical incidents, based on the circumstances of each individual incident. All sworn officers have access to the armored vehicle. Armored vehicles shall be used only by officers trained in their deployment and in a manner consistent with department policy and training. It is the policy of the Hemet Police Department to utilize armored vehicles only for law enforcement purposes, and pursuant to state and federal law.
Fiscal Impact: See Appendix C
Lifespan: Approximately 25 years, depending on operational usage and wear.
The following page(s) detail the armored vehicle(s) currently owned by the department.
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2008 Lenco BearCat
Manufacturer: Lenco
Manufacturer Description: The BearCat provides Lenco’s proven armor system in a ruggedized off-road platform. The BearCat comes standard with a heavy-duty upgraded suspension and off-road tires, rims & run flats to provide enhanced off-road performance. The increased ground clearance and robust suspension allow for emergency response in rural regions and natural disaster scenarios where standard armored SWAT vehicles would experience challenges. The BearCat vehicle has attachable metal booms that can be used for breaching structures, fences, or ramming objects during high-risk incidents, including active shooter incidents on school grounds or buildings.
(Description source: https://www.lencoarmor.com)
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UNMANNED AERIAL SYSTEMS (UAS)
Description: An unmanned aircraft of any type that is capable of sustaining directed flight, whether pre-programmed or remotely controlled, and all the supporting or attached systems are designed for gathering information through imaging, recording, or by any other means.
Capability: UAS can support first responders in any hazardous incident which would benefit from an aerial perspective. These uses could include, daily calls for service, search and rescue, barricaded suspects or high-risk tactical operations, disaster response, and video and photographic documentation of crime scenes.
Usage: The guidelines for the use of UAS are outlined in Hemet Police Department Policy 607, FAA Certificate of Wavier or Authorization 2023-WSA-12237-COA, and FAA Regulation 14 CFR Part 107. It is the policy of the Hemet Police Department to utilize UAS only for law enforcement purposes, and in a manner that respects the privacy of our community according to state and federal law.
Training Requirements: All department UAV operators are licensed by the Federal Aviation Administration for UAS operation. In addition, each operator attends ongoing monthly department training and advanced training in UAS operations.
Fiscal Impact: See Appendix C
Lifespan: Approximately five (5) years.
The following page(s) detail the unmanned aerial system(s) currently owned by the department.
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DJI Phantom
Manufacturer: DJI
Manufacturer Description: Phantom has revolutionized the drone market with 3-axis- stabilized cameras, high-wind resistance, fingertip-accessible speed, and reliability. The Phantom 4 has evolved into myriad roles today, including mapmaking for engineers and developers, and gathering agricultural data for smart farming.
(Description and photo source: https://www.dji.com)
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DJI Matrice 300 RTK
Manufacturer: DJI
Manufacturer Description: The Matrice 300 RTK sets a new standard for industrial drones by combining intelligence with high performance and unrivaled.
(Description and photo source: https://www.dji.com)
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DJI Matrice 350 RTK
Manufacturer: DJI
Manufacturer Description: An upgraded flagship drone platform, the Matrice 350 RTK sets a new benchmark for the industry. This next-generation drone platform features an all-new video transmission system and control experience, a more efficient battery system, and more comprehensive safety features, as well as robust payload and expansion capabilities. It is fully powered to inject innovative strength into any aerial operation.
(Description and photo source: https://www.dji.com)
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AUTEL EVO II
Manufacturer: Autel
Manufacturer Description: Autel EVO 2 Dual 640T thermal drone is an industry-first drone combining an infrared imaging camera with an 8K video camera. With thermal resolution up to 640x512 and an 8k sensor EVO 2 becomes a workhorse. First responders, contractors, and business owners finally have a compact and portable tool that gives them the data they have been asking for.
(Description and photo source: https://www.autelpilot.com)
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LOKI MK2
Manufacturer: SKY-HERO
Manufacturer Description: Designed and built in conjunction with several of the world’s top counter-terrorism teams, LOKI Mk2 solves all problems associated with the tactical use of commercial UAS. Purpose-built for close-quarter indoor tactical scouting missions, LOKI Mk2 features a highly sensitive Day-Night + IR sensor camera giving it the ability to fly and see in complete darkness.
(Description and photo source: https://loki.aardvarktactical.com/)
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RIFLES
Description: A semi-automatic shoulder-fired rifle that fires a rifle or pistol caliber cartridges. The department-approved patrol rifle is designed to fire.223/5.56, .308, or 9mm caliber projectiles.
Capability: The rifle caliber carbine provides officers the ability to engage hostile suspects at distances generally greater than the effective distance of their handguns.
Additionally, patrol rifles offer advantages over handguns, such as increased accuracy and the ability to defeat soft body armor but are not appropriate for every situation.
Usage: The usage guidelines for patrol rifles are outlined in Hemet Police Department Policy 304. Only officers who have completed a POST-certified course, mandated department training, and have qualified are authorized to use a rifle.
Training Requirements: Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle. Additionally, all officers who operate any rifle are required to pass a range qualification once a year. It is the policy of the Hemet Police Department to utilize rifles only for law enforcement purposes, and according to state and federal law regarding the use of force.
Fiscal Impact: See Appendix C
Lifespan: Barrel life rated to approximately 15,000 rounds (5-10 years).
The following page(s) detail the rifles currently owned by the department.
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Colt AR-15 A3 Tactical Carbine
Manufacturer: Colt Manufacturing LLC
Manufacturer Description: The Colt AR-15 Tactical Carbine comes equipped with a Magpul MBUS backup sight and is used as a patrol rifle with tactical accuracy by federal, state, and local agencies. The AR-15 Tactical Carbine has a 16” heavy barrel with a 1/9 twist which allows for flexibility in ammunition selection.
(Description and source photo: https://www.colt.com)
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Colt M4 Commando
Manufacturer: Colt Manufacturing LLC
Manufacturer Description: Rapid response, maneuverability, and enhanced firepower play a major part in joint and coalition operations in modern warfare. Colt's M4 Commando® was designed to exploit firepower capability in confined spaces where lightweight mobility, speed, and violence of action rule. The Commando can be comfortably carried with its 11.5" barrel, yet be instantly available to provide the type of firepower required to overmatch combatants. Because it provides the full 5.56mm power and accuracy in a very compact sub-machine gun size weapon, the Commando is often chosen over smaller, less powerful sub-machine guns. Regardless of the application, the Colt M4 Commando provides superior qualities enabling operators to accomplish an increasingly wide range of combat missions.
(Description and source photo: https://www.colt.com)
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Colt M16A1
Manufacturer: Colt Manufacturing LLC
Manufacturer Description: The classic M16A1 was the iconic rifle of the Vietnam War.
It was issued to the vast majority of U.S. soldiers during the conflict, and its general success in combat led to its continued service in the U.S. armed forces in varied forms over the years. A virtual match to the classic design, featuring the same unique triangular handguard, 20-inch pencil-profile chrome-lined barrel with a 1:12-inch twist, and recognizable carrying handle.
(Description and source photo: https://www.colt.com)
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LAR-15M
Manufacturer: Rock River Arms
Manufacturer Description: Lightweight, shoulder-fired, gas-operated, semi-automatic rifle.
(Description and source photo: https://rockriverarms.com/)
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HK MP5
Manufacturer: HK
Manufacturer Description: Developed by Heckler & Koch in the mid-1960s, the 9 mm MP5 submachine gun uses the same delayed blowback operating system found on the famous HK G3 automatic rifle. Reliability, accuracy, ease of handling, simple maintenance, and safety — all the elements of HK excellence are highlighted on the MP5. Firing from the closed-bolt position in all modes of fire make MP5 submachine guns extremely accurate and controllable.
(Description and source photo: https://hk-usa.com)
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HK G3A3
Manufacturer: HK
Manufacturer Description: Developed by Heckler & Koch in the mid-1950s, G3 is a
7.62×51mm NATO, select-fire battle rifle
(Description and source photo: https://hk-usa.com)
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BOLT-ACTION RIFLES
Description: A rifle that is operated by directly manipulating the bolt via a bolt handle.
Capability: The bolt-action rifle provides SWAT Snipers the ability to engage hostile suspects at great distances with accuracy.
Usage: Bolt-action rifles are to be used exclusively by officers assigned to the SWAT Sniper Team. These rifles are typically deployed with the SWAT Sniper Team during high-risk SWAT operations and special events or instances wherein sniper overwatch teams are needed.
Training Requirements: SWAT Snipers must successfully complete a POST-certified SWAT school. Hemet Police Department Snipers must also complete a POST-certified sniper school and regularly train and qualify with various weapons systems, including the bolt-action rifle, to maintain proficiency.
Fiscal Impact: See Appendix C
Lifespan: No lifespan indicated by the manufacturer. Lifespan varies on operational usage and wear. Barrel life is rated to be approximately 5-10 years.
The following page(s) detail the bolt-action rifles currently owned by the department.
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Accuracy International .308 Bolt-Action Rifle
Manufacturer: Accuracy International
Manufacturer Description: A bolt-action, high accuracy, long-range, scoped rifle that fires a .308 caliber round with precision used by SWAT snipers. Fixed Stock, 24” barrel, standard adjustable cheekpiece, fixed butt pad with spacers, pistol grip, flush cup sling attachment points, double chamber stand muzzle break, and 10-round magazines.
Manufacturer Description: The short-action AX308 (.308 Winchester) is a worthy successor to the battle-hardened AW308, boasting a raft of new features including the patented Quickloc system which allows the barrel to be changed or removed for transit in minutes using the hex key stored in the cheek piece.
(Photo and description source: https://www.accuracyinternational.com)
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Remington Model 700 .308 Bolt-Action Rifle
Manufacturer: Remington
Manufacturer Description: It's the number one bolt-action of all time, proudly made in the U.S.A. Since 1962, more Model 700s have been sold than any other bolt-action rifle before or since. The legendary strength of its 3-rings-of-steel receiver is now paired with a 5R barrel on every 700. Bearing the most popular bolt-action rifle in history.
The top choice of military and law enforcement officers, the Model 700 is unequaled in precision. Whether defending freedom or pursuing big game, its out-of-the-box accuracy is unmatched.
(Photo and description source: https://www.remarms.com)
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BREACHING TOOLS
Description: During crisis situations, it may become necessary for a SWAT team to facilitate an entry into a target location. It is critical the point of entry is breached quickly and as safely as possible. A quick and effective breach is one key to a successful tactical mission. In some instances, a breach initiated by a breaching shotgun loaded with specialized breaching rounds may be required to provide an added degree of safety and tactical advantage to accomplish a mission. Specialized breaching rounds are frangible and are designed to break into a powder form upon impact with a solid object (i.e., deadbolt lock, door frame, etc.).
Capability: Shotgun breaching, the use of a breaching shotgun to affect a breach, can be an effective option in SWAT Team tactics. An effective breach is a design where the least amount of breaching shotgun rounds are used and still accomplishes its goal. An effective shotgun breach can defeat fortified doors and locks. Effective breaching techniques allow tactical officers immediate entry with minimal risk to victims, officers, and suspects.
Usage: Breaching shotguns are to be exclusively used by the SWAT Team. Breaching shotguns are used to breach doors expeditiously and can be used in response to barricaded suspects, hostage rescue incidents, and active shooters.
Training Requirements: SWAT Officers that are trained in the use of breaching shotguns must successfully complete a POST-certified SWAT school. Furthermore, SWAT Officers must undergo regular classroom and live fire proficiency training in its application.
Fiscal Impact: See Appendix C
Lifespan: Lifespan varies on operational usage and wear.
The following page(s) detail the breaching shotgun(s) currently owned by the department.
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Royal Remington 870 Express Breaching Shotgun
Manufacturer: Royal Arms International
Manufacturer Description: Royal Arms Breaching Shotgun starts with the Remington 870 Express Synthetic 12 Ga Shotgun as its base. We then completely modify it with our custom CNC machined parts to be the ultimate Breaching Shotgun. Royal Arms invented the Breachers and Breaching shotguns. The Remington Express Synthetic model is a great option for those who don’t need the upgraded performance of the Police model.
(Description and photo source: https://www.royalarms.com)
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KBT Breaching Tool
Manufacturer: KBT
Manufacturer Description: The KBT was purpose-built from the ground up to solve a specific problem for tactical units: filling the gap between manual forced entry and explosive breaching. This breaching tool employs the best of physics in the form of a self- contained impact ram with powder-actuated cartridges that go directly into a door or entryway. The KBT captures the force of the ram within the tool, ensuring that no projectile or explosive energy leaves the device.
The KBT also increases operator safety by allowing operators to breach from behind a shield or to the side of the door. This is a ready-to-use device that can completely replace explosive and hydraulic breaching, battering rams, and other manual forced entry techniques that drain valuable time and energy from your tactical unit.
(Description and photo source: https://www.aardvarktactical.com)
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PROJECTILE LAUNCHERS
Description: A single-shot or multi-shot less lethal impact weapon launcher capable of firing a variety of rounds.
Capability: Projectile launchers can fire a variety of munitions with a maximum effective range of one hundred twenty (120) feet. 40mm launchers can deliver 40mm munitions in the form of chemical agents, sponge rounds, or combined-use sponge OC chemical agent rounds. Less lethal shotguns can deliver beanbag rounds to transfer kinetic energy to the target from a distance.
Usage: Projectile launchers may be deployed to impact subjects demonstrating assaultive behavior or life-threatening behavior, as defined in department policy and procedures regarding the use of force. They may also be used to control an actively resistive subject reasonably believed to possess or have immediate access to a deadly weapon, within the use of force guidelines. The main objectives that officers attempt to achieve in using a less lethal impact weapon on a subject exhibiting any of the aforementioned criteria are to effect investigative detention or arrest; control a subject who is in lawful custody; prevent an escape; or protect the officer, the subject, or another person from injury or death. Projectile launchers are authorized to be used by any officer that has been trained in its use and maintains current qualifications.
Training Requirements: Officers that have been trained in the use of projectile launchers undergo thorough classroom and live fire training in its use from POST- certified instructors. Officers are required to regularly train and qualify with projectile launcher platforms to maintain proficiency.
Fiscal Impact: See Appendix C
Lifespan: Lifespan varies on operational usage and wear.
The following page(s) details the projectile launcher(s) currently owned by the department.
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40MM LMT Tactical Single Launcher
Manufacturer: Defense Technology
Manufacturer Description: Manufactured exclusively for Defense Technology®, the 40LMTS is a tactical single-shot launcher that features an expandable ROGERS Super Stoc and an adjustable Integrated Front Grip (IFG) with light rail. The ambidextrous Lateral Sling Mount (LSM) and QD mounting systems allow both a single and two-point sling attachment. The 40LMTS will fire standard 40mm less lethal ammunition, up to
4.8 inches in cartridge length. The Picatinny Rail Mounting System will accept a wide array of enhanced optics/sighting systems.
(Photo and description source: https://www.defense-technology.com/)
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37MM SL6 Launcher
Manufacturer: SAGE
Manufacturer Description: The SL6 37mm multi-role six (6) shot projectile launcher fulfills current police requirements for a launcher capable of firing either Sage Control Ordnance, Inc. or ARWEN 37® munitions. Having an accurate multiple-shot system available to deliver blunt trauma-inducing batons, pyrotechnic chemical agents, and non-pyrotechnic barricade penetrating projectiles has become a necessity for the successful completion of many police operations. Exceptional accuracy by the SL6 is achieved by using a rifled barrel, calibrated sighting system, and a family of ammunition manufactured to standards that maximize performance.
(Photo and description source: http://www.sageinternationalltd.com/)
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37MM Single Launcher
Manufacturer: Schermuly
Manufacturer Description: Manufactured by the British company Webley & Scott, the Schermuly Multi-Purpose Gun is a single shot break action riot gun based on a World War II era signal pistol. The gun has a removable buttstock, can be fitted with several different barrel lengths, and can have an adapter to fire shotgun cartridges fitted making it a versatile weapon. The gun is made from high-grade aluminum castings with a wooden stock and was of high manufacturing quality making for a reliable weapon.
(Photo and description source: https://www.imfdb.org/wiki/Schermuly_Multi-Purpose_Gun)
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Remington Model 870 Less Lethal Shotgun
Manufacturer: Remington
Manufacturer Description: The Remington Model 870 Pump Shotgun is a reliable 12- gauge with double-action bars for smooth pump operation. A steel-lined/grooved fore- end provides a stronger grip, while the Flexitab feeding system provides positive and easier cycling. A less-lethal application shotgun is available with the addition of a blaze orange synthetic SpeedFeed stock and fore-end for the instant recognition required.
(Photo and description source: https://www.officer.com)
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DIVERSIONARY DEVICES
Description: Devices that emit a loud noise and bright light.
Capability: Diversionary devices can release large amounts of stored energy in the form of heat, light, pressure, and noise. They are intended to temporarily distract, confuse, and disorient subjects. They can also be used as “attention-getting” devices. A diversionary device is ideal for distracting dangerous suspects during assaults, hostage rescue, room entry, or other high-risk arrest situations producing atmospheric over- pressure and brilliant white light, and as a result, can cause short-term (6-8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.
Usage: Diversionary devices shall only be used by officers who have been trained in their proper use and during conditions such as hostage and barricaded situations, high- risk warrant (search/arrest) service where there may be extreme hazards to officers, during high-risk situations where use would enhance officer safety, and during training exercises.
Training Requirements: Before use, officers must attend in-house diversionary device training conducted by certified instructors.
Fiscal Impact: See Appendix C
Lifespan: Five (5) year shelf life.
The following page(s) detail the diversionary device(s) currently owned by the department.
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Low Roll Reloadable Distraction Device
Manufacturer: Defense Technology
Manufacturer Description: The 11-Gram Non-Reloadable Distraction Device® incorporates an M201A1 type fuze with hex design gun steel body. This compact version of the 8933 Low Roll® Distraction Device body is the newest version of the first reusable non-bursting canisters that limits movement and rolling once deployed.
Flash Bangs are used by special tactical units during hostage rescue and high-risk warrants. It is an ATF-controlled Class-C explosive device that emits a bright light and thunderous noise to distract potentially dangerous individuals.
(Photo and description source: https://www.defense-technology.com/)
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CHEMICAL AGENTS
Description: Canisters that contain chemical agents that are released when deployed.
Chemical agents can include irritants such as Chlorobenzalmalononitrile (CS) or an inflammatory agents such as Oleoresin Capsicum (OC) or Pava (synthetic OC).
Chemical agents can be liquid, powder, or gaseous. Delivery systems can be pyrotechnic, blast dispersion, OC Fogger, or aerosol.
Capability: Depending on the delivery method, chemical agents are capable of being introduced in close proximity or from a distance. Depending on the type of delivery system and/or quantity, chemical agents can be used to saturate individual suspects, violent crowds, or areas of varied size to also include structures.
Usage: Situations for the use of chemical agents may include but are not limited to; self- destructive, dangerous, and or combative individuals, riot/crowd control and civil unrest incidents, circumstances where a tactical advantage can be obtained, potentially vicious animals, training exercises or approved demonstrations.
Chemical agents can also be used to prevent an armed suspect from accurately firing at citizens and/or officers. They can also be used in limited instances during civil unrest when objectively reasonable to defend against a threat to life or serious bodily injury to any individual, including the officer, or to bring an objectively dangerous and unlawful situation safely and effectively under control. See Penal Code 13652.
The use of chemical agents is governed under Hemet Police Department Policy 308. It is the policy of the Murrieta Police Department to utilize chemical agents only for official law enforcement purposes, and according to state and federal law, including those regarding the use of force.
Training Requirements: Chemical agents are to be used exclusively by the SWAT Team. SWAT Officers that are trained in the use of chemical agents must successfully complete a POST-certified SWAT school. Furthermore, SWAT Officers must undergo regular classroom and proficiency training in their application.
Fiscal Impact: See Appendix C
Lifespan: Five (5) year shelf life.
The following page(s) detail the chemical agent(s) currently owned by the department.
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Riot Control Continuous Discharge Grenade CS
Manufacturer: Defense Technology
Manufacturer Description: The Riot Control CS Grenade is designed specifically for outdoor use in crowd control situations with a high volume continuous burn that expels its payload in approximately 20-40 seconds through four gas ports located on the top of the canister. This grenade can be used to conceal tactical movement or to route a crowd. The volume of smoke and agent is vast and obtrusive. This launchable grenade is 6.0 in. by 2.35 in. and holds approximately 2.7 oz. of active agent.
(Photo and description source: https://www.defense-technology.com/
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SPEDE-HEAT Continuous Discharge Chemical Grenade CS
Manufacturer: Defense Technology
Manufacturer Description: The Spede-Heat™ CS Grenade is a high-volume, continuous burn it expels its payload in approximately 20-40 seconds. The payload is discharged through four gas ports on top of the canister, three on the side and one on the bottom. This launchable grenade is 6.12 in. by 2.62 in. and holds approximately 2.9 oz. of active agent.
(Photo and description source: https://www.defense-technology.com/)
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Flameless Tri-Chamber CS Grenade
Manufacturer: Defense Technology
Manufacturer Description: The design of the Tri-Chamber Flameless CS Grenade allows the contents to burn within an internal can and disperse the agent safely with reduced risk of fire. The grenade is designed primarily for indoor tactical situations to detect and/or dislodge a barricaded subject. This grenade will deliver approximately .70 oz. of agent during its 20-25 seconds burn time. The Tri-Chamber Flameless Grenade can be used in crowd control as well as tactical deployment situations by Law Enforcement and Corrections but was designed with the barricade situation in mind. Its applications in tactical situations are primarily to detect and/or dislodge barricaded subjects. The purpose of the Tri-Chamber Flameless Grenade is to minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects. The Tri-Chamber Flameless Grenade provides the option of delivering a pyrotechnic chemical device indoors, maximizing the chemicals' effectiveness via heat and vaporization, while minimizing or negating the chance of fire to the structure.
(Photo and description source: https://www.defense-technology.com/)
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Ferret 40MM Powder Barricade Penetrator Round, CS
Manufacturer: Defense Technology
Manufacturer Description: The Ferret® 40 mm Barricade Penetrating Round is filled with a CS powder chemical agent. It is a frangible projectile that is spin-stabilized utilizing barrel rifling. It is non-burning and designed to penetrate barriers. Primarily used to dislodge barricaded subjects, it can also be used for area denial. Primarily used by tactical teams, it is designed to penetrate barriers, such as windows, hollow core doors, wallboard, and thin plywood. Upon impact, the nose ruptures and instantaneously delivers the agent payload inside a structure or vehicle.
(Photo and description source: https://www.defense-technology.com/)
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Ferret 40MM Liquid Barricade Penetrator Round, CS
Manufacturer: Defense Technology
Manufacturer Description: The Ferret® 40mm Round is non-burning and suitable for indoor use. Used primarily by tactical teams, it is designed to penetrate barriers, such as windows, hollow core doors, wallboard, and thin plywood. Upon impacting the barrier, the nose cone ruptures and instantaneously delivers a small chemical payload inside of a structure or vehicle.
In a tactical deployment situation, the 40mm Ferret is primarily used to dislodge barricaded subjects from confined areas. Its purpose is to minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects.
(Photo and description source: https://www.defense-technology.com/)
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APPENDIX A
Military/Specialized Equipment Deployments from January 1, 2023, through December 31, 2023
Command and Control Vehicles:
02/22/23 – Homicide/Shooting
04/01/23 – Homicide/Shooting
09/18/23 – Homicide/Shooting
10/29/23 – Homicide/Shooting
11/06/23 – Barricaded Suspect
11/07/23 – Homicide/Shooting
11/17/23 – Homicide/Shooting
Armored Vehicles:
04/19/23 – Assist Patrol
08/15/23 – Assist Patrol
11/06/23 – Barricaded Suspect
11/11/23 – Assist Patrol
Unmanned Aerial Systems:
The Hemet Police Department deployed an Unmanned Aerial System on 1303 calls for service in 2023.
Diversionary Devices:
11/06/23 - Barricaded Suspect
Chemical Agents:
11/06/23 - Barricaded Suspect
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Projectile Launchers:
05/10/23– Armed 5150 with a Knife
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APPENDIX B
Military Equipment Quantities
Command and Control Vehicles
Equipment Quantity
2000 Eagle Trailer 1
Armored Vehicles
Equipment Quantity
2008 Lenco BearCat 1
Unmanned Aerial Systems
Equipment Quantity
DJI Phantom 2
DJI Matrice 300 RTK 1
Autel EVO II 4
Sky-Hero Loki Mk2 2
DJI Matrice 350 RTK 1
Rifles
Equipment Quantity
Colt AR-15 A2 Tactical Carbine 4
Colt M4 Commando 16
Colt M16A1 12
Rock River Arms LAR-15 2
HK MP5 9
HK G3A3 1
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Bolt-Action Rifles
Equipment Quantity
Accuracy International .308 Bolt-Action Rifle 2
Remington Model 700 .308 Bolt-Action Rifle 3
Breaching Tools
Equipment Quantity
Royal Remington 870 Express Breaching Shotgun 3
KBT Breaching Tool 2
Projectile Launchers
Equipment Quantity
Def Tech 40MM LMT Tactical Single Launcher 13
Sage 37MM SL6 Launcher 1
Schermuly 37MM Single Launcher 1
Remington Model 870 Less Lethal Shotgun 17
Diversionary Devices
Equipment Quantity
Defense Technology Low Roll Distraction Device 28
Chemical Agents
Equipment Quantity
Defense Technology 1082 Riot Control Continuous
Discharge Grenade CS
51 Defense Technology 1072 Spede-Heat Continuous
Discharge Chemical Grenade CS 25
Defense Technology 1032 Flameless Tri-Chamber CS
Grenade 48
Defense Technology 2292 Ferret 40MM Powder Barricade
Penetrator Round, CS 5
Defense Technology 2262 Ferret 40MM Liquid Barricade
Penetrator Round, CS 30
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APPENDIX C
Military Equipment Fiscal Impact and Estimated Projected Costs
Command and Control Vehicles
Equipment Initial Cost Approx Annual Cost
2000 Eagle Trailer (1) $35,000 $1,000
Armored Vehicles
Equipment Initial Cost Approx Annual Cost
2008 Lenco BearCat Grant Paid $1,500
Unmanned Aerial Systems
Equipment Initial Cost Approx Annual Cost
DJI Phantom (2) $2,000 $200
DJI Matrice 300 RTK (1) $34,000 $8,448
Autel EVO II (4) $44,000 $5,374
Sky-Hero Loki Mk2 (2) $13,600 $300
DJI Matrice 350 RTK (1) $31,470 $9,768
Rifles
Equipment Initial Cost Approx Annual Cost
Colt AR-15 A2 Tactical Carbine (4) $4,800 $1,000
Colt M4 Commando (16) $20,800 $1,000
Colt M16A1 (12) 1099
Program
$0
Rock River Arms LAR-15 (2) $3,000 $100
HK MP5 (9) $18,000 $100
HK G3A3 (1) $2,000 $100
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Bolt-Action Rifles
Equipment Initial Cost Approx Annual Cost
Accuracy International .308 Bolt-Action Rifle (2) $8,000 $200 Remington Model 700 .308 Bolt-Action Rifle (3) $5,000 $500
Breaching Tools
Equipment Initial Cost Approx Annual
Cost
Royal Remington 870 Express Breaching
Shotgun (3) $3,000 $100
KBT Breaching Tool (2) $21,400.00 $500
Projectile Launchers
Equipment Initial Cost Approx Annual Cost
Def Tech 40MM LMT Tactical Single Launcher
(13)
$13,000 $200
Sage 37MM SL6 Launcher $3,000 $0
Schermuly 37MM Single Launcher $500 $0
Remington Model 870 Less Lethal Shotgun (17) $13,600 $500
Diversionary Devices
Equipment Initial Cost Approx Annual Cost
Defense Technology Low Roll Distraction
Device (28) $2,300 $0
Chemical Agents
Equipment Initial Cost Approx Annual Cost
Defense Technology 1082 Riot Control
Continuous Discharge Grenade CS (51) $2,550 $0
Defense Technology 1072 Spede-Heat
Continuous Discharge Chemical Grenade CS
(25)
$1,250 $0
Defense Technology 1032 Flameless Tri-
Chamber CS Grenade (48) $2,400 $0
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AB 481 Annual Report - 2024 Page 53 of 57
Defense Technology 2292 Ferret 40MM Powder
Barricade Penetrator Round, CS (5) $250 $0
Defense Technology 2262 Ferret 40MM Liquid
Barricade Penetrator Round, CS (30) $1,500 $0
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AB 481 Annual Report - 2024 Page 54 of 57
APPENDIX D
Specialized equipment inventory known to be owned and/or utilized by law enforcement agencies with which the Hemet Police Department collaborates with and/or may require assistance from in a mutual -aid situation for law enforcement services.
MRAP Vehicle
Description: The MRAP is a large ballistic armored rescue vehicle deployed during search warrant services and primarily in open desert areas requiring extreme off-road capability. The MRAP is also used for large parcels of outdoor illegal marijuana grow enforcement. Operation requires a Class "B" driver's license. Capable of transporting personnel and equipment while providing them with armored protection from gunfire.
Usage: The MRAP can be deployed any time tactical operators determine that there is a need to move personnel and/or resources into areas in which they have reason to expect potential armed resistance requiring its protection.
Training Requirements: None. Equipment owned, maintained, and operated by another agency.
Fiscal Impact: None. Equipment owned, maintained, and operated by another agency.
Long Range Acoustic Device (LRAD)
Description: LRAD is an acoustic hailing device used for emitting amplified public announcements during search warrant services, barricaded suspects, or tactical operations. The loud audible technology ensures broadcasted announcements are loud and clear while offering advantages over less amplified patrol car PA systems. The larger LRAD 1000 system is portable and can be used for criminal unrest and rioting to provide clear dispersal orders for unlawful assembly. LRAD can also be used for any public announcements or safety advisements during natural disasters or evacuations.
Usage: LRADs can only be deployed in accordance with all applicable State, Federal, and Local laws governing police use of force, crowd control, etc.
Training Requirements: None. Equipment owned, maintained, and operated by another agency.
Fiscal Impact: None. Equipment owned, maintained, and operated by another agency.
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AB 481 Annual Report - 2024 Page 55 of 57
Flashbang Grenades and Explosive Breaching Tools
Description: Diversionary devices can release large amounts of stored energy in the form of heat, light, pressure, and noise. They are intended to temporarily distract, confuse, and disorient subjects. They can also be used as “attention-getting” devices. A diversionary device is ideal for distracting dangerous suspects during assaults, hostage rescue, room entry, or other high-risk arrest situations producing atmospheric over- pressure and brilliant white light, and as a result, can cause short-term (6-8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.
Explosive breaching tools are used to breach fortified structures to establish a point of entry. Explosive charges are fashioned to produce little to no fragmentation at the time of detonation. Explosive breaching effectively reduces the time spent overcoming a fortified door or structure. The reduction in time mitigating a hardened structure increases officer safety and the element of surprise. Blast injuries are reduced by using low-yield explosives that mechanically overcome door frames and locking mechanisms.
Explosive breaching mandates extensive schooling and certification processes.
Usage: Diversionary devices and explosive breaching tools are only for official law enforcement purposes and according to State and Federal law regarding the use of force.
Training Requirements: None. Equipment owned, maintained and operated by another agency.
Fiscal Impact: None. Equipment owned, maintained and operated by another agency.
Non-Handheld Battering Rams, Slugs, and Breaching Equipment Apparatuses that are Explosive in Nature
Description: Explosive breaching tools are used to breach fortified structures to establish a point of entry. Explosive charges are fashioned to produce little to no fragmentation at the time of detonation. Explosive breaching effectively reduces the time spent overcoming a fortified door or structure. The reduction in time mitigating a hardened structure increases officer safety and the element of surprise. Blast injuries are reduced by using low-yield explosives that mechanically overcome door frames and locking mechanisms. Explosive breaching mandates extensive schooling and certification processes.
Usage: Diversionary devices and explosive breaching tools are only for official law enforcement purposes and are according to State and Federal law regarding the use of force.
Training Requirements: None. Equipment owned, maintained, and operated by another agency.
Fiscal Impact: None. Equipment owned, maintained, and operated by another agency.
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AB 481 Annual Report - 2024 Page 56 of 57
Armored Vehicles with Breaching or Entry Apparatus or Water Cannon Description: Inventory includes four LENCO Ballistic Engineered Armored Response Counter-Attack Trucks (BearCat).
Usage: The BearCats are primarily used during high-risk tactical enforcement operations, officer rescues, and vehicle-borne interventions. Additional deployments are used during criminal unrest and riots. Rescue vehicles provide ballistic safety during the containment and apprehension of armed violent suspects. • Rescue vehicle for on-campus active shooter incidents to rescue injured victims
• 4X4 capability to transport or evacuate victims in a natural disaster • BOMB-CAT bullet-resistant rescue vehicle provisioned with a front mounted Water Cannon. BOMB-CAT use is for tactical operations and explosive ordinance mitigation and fire suppression
• Rescue vehicles provide numerous safety capabilities for law enforcement, victim rescues, and overall community safety • TAC-CAT vehicle- A tracked bullet-resistant caterpillar tractor driven and deployed during high-risk and tactical operations, with various hydraulic boom attachments including claw, chemical agent dispersal box, and ram extension
Training Requirements: None. Equipment owned, maintained and operated by another agency.
Fiscal Impact: None. Equipment owned, maintained and operated by another agency.
This report was prepared and approved by:
Lieutenant Michael Mouat on Thursday, March 13, 2024
R e co ve ra b le S ig n a tu re
X M ich a el M o u a t
S ig n e d b y: 2 f f b 1 5 ca -5 1 6 9 -4 c 9 4 -9 f 1 e -c 5 d 4 d 5 a b 5 d f 7
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AB 481 Annual Report - 2024 Page 57 of 57
According to California Government Code § 7070(d)(7), members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment in this report by contacting the Military/Specialized Equipment Use Coordinator through any of the following means:
• In person at the Hemet Police Department:
450 East Latham Avenue, Hemet, CA 92543
• Via telephone call to:
(951) 765-2400
The Hemet Police Department is committed to responding to complaints, concerns, and/or questions received through any of the above methods in a timely manner.
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Hemet City Police
Department
Ordinance No. 38-3, Annual Review, Renewal, and Public Hearing April 23, 2024
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Housing Element Update
Background:
• On September 30, 2021, California Gov. Gavin Newsom signed Assembly Bill 481, which became effective January 1, 2022.
• AB 481 identifies certain specialized law enforcement equipment as “military equipment” and requires oversight from the Municipal City Council for the purchase and use of what the bill has deemed “military equipment.”
• The law requires a Municipal Police Department and other law enforcement agencies to create a Use Policy that has been adopted by the City Council after holding a public meeting to seek the public’s input.
• The law requires the governing body to annually review the ordinance and to either approve or disapprove a renewal of the authorization of “military equipment” or amend the military equipment use policy City Council wishes to do so, based on an annual military equipment report prepared by the law enforcement agency.
• (As directed by the Hemet City Council, an amendment has been completed within the Ordinance and Policy, changing “Military Equipment” to “Specialized Equipment”)
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Housing Element Update
Purpose of Ordinance
• Seek approval and support from the City Council for the acquisition and deployment of current and future specialized police equipment.
• Consider the public’s concerns about safety, civil rights and the public’s welfare. • Review and renew the current Use Policies which establish on-going standards for safe de-escalation techniques and police equipment use and application consistent with AB481.
• On an annual basis, Ordinance Section 38-3, and its Use Policies will be submitted to City Council for review and approval.
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Housing Element Update
Purpose of Police Equipment
“Specialized Equipment”
• The preservation of human life
• Search and Rescue Operations
• Evacuating victims
• Fast responses to catastrophic events
• Reduce liability of physical injury to public and department personnel • High-risk apprehensions
• Allow for safe and effective de-escalation tactics
• Less-lethal use of force option
• Specialized Police Equipment will act as a resource multiplier in some cases to reduce manpower hours, which ultimately saves the city money
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Housing Element Update
City Impact
No impact due to Specialized Police Equipment is already in use by our department.
• No Impact on mutual aid requests and current MOUs we currently have with other cities
• No impact on any of our County-wide task forces that we supervise or assign an officer.
• No fiscal impact related to the adoption of the ordinance and use policy. A considerable fiscal impact to Hemet residents and businesses may result from civil liability if the Hemet Police Department is not properly equipped with the specialized equipment necessary to resolve critical incidents safely and effectively
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Housing Element Update
Public Hearing Findings
A Public Hearing is conducted for the following findings:
• Determine if the Specialized Equipment is necessary and a reasonable alternative to solving a critical incident safely and effectively • Determine if the Use Policy will safeguard the public’s welfare, safety, civil rights, and civil liberties
• If purchasing, determine whether the equipment is reasonably cost-effective compared to available alternatives that can achieve the same objective of officer or civilian safety.
• Determine whether existing police equipment complies with the Use Policy; if not, remedy non-conforming issues and ensure future compliance (no known non-compliance issues)
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Housing Element Update
Post Public Hearing
• Renew Ordinance No. 38-3 for the current deployment and future acquisition of specialized law enforcement equipment
• On an annual basis, a Specialized Equipment report shall be prepared, a community engagement meeting shall be held, and a report shall be provided to City Council with existing equipment or an amended policy with proposed changes.
• Direct the Police Chief to send a copy of the Use Policy and Specialized Equipment list to the Governor’s Office
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Questions?
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City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Apr 23 2024
Department: Police Department
Submitted by: Mark Prestwich, City Manager
Michael Arellano, Chief of Police;
☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:
An Annual Review and Approval of the Annual Report for the Hemet Police Department's Specialized Equipment Use Policy, Per Ordinance 1998, Section 38-3
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
Review and approve the Annual Report for the Hemet Police Department's Specialized Equipment Use Policy, per Ordinance 1998, Section 38-3.
BACKGROUND:
On September 30, 2021, California Governor Gavin Newsom signed Assembly Bill 481 (AB481), which became effective January 1, 2022. The bill required law enforcement agencies to create and adopt a Military Equipment Use Policy by May 1, 2022.
AB481 identifies certain law enforcement equipment as “military equipment” and subsequently requires oversight from a governing body for purchase and usage. The governing body for the Hemet Police Department is the elected Hemet City Council and Mayor or their appointed body.
ANALYSIS:
The purpose of this request is to seek approval and support from the Hemet City Council in adopting the Hemet Police Department’s AB481 Specialized Equipment List of specialized equipment and the Hemet Police Department’s Specialized Equipment Use Policy. The Specialized Equipment Use Policy establishes an ongoing standard and policy for safe de-escalation techniques and the use and application of “military equipment”; which is attached as required by AB481.
The AB481 Specialized Equipment List, identifies items currently deployed by law enforcement agencies in this country, as well as others throughout the State of California, and the nation. AB481
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lists “military equipment” that is recognized and more appropriately identified by local, state, and federal law enforcement entities as specialized police equipment.
Specialized police equipment is used only by highly trained and experienced law enforcement professionals. The Hemet Police Department’s itemized list of specialized equipment is attached to this staff report, as required by AB 481. This itemized list of specialized equipment ranges from modernized tools, aerial drones, armored vehicles, and chemical agents, whose primary purpose is the preservation of human life during critical incidents. These critical incidents often involve the apprehension of high risk suspects, search and rescue, and immediate responses to catastrophic events. The use of this specialized equipment reduces liability to the department and the City. The use also reduces the potential for physical injury to the public and department personnel. It also allows for the application of de-escalation tactics during high-risk encounters with armed and violent suspects. The tools, equipment, and resources outlined in this specialized equipment list can function as a force-multiplier, in some cases. This helps to reduce hours worked and is ultimately a cost savings to the City.
The Association of Riverside County Chiefs of Police and Sheriff (ARCCOPS) have endorsed the list of specialized equipment which is already in use across Riverside County. For context, the Riverside County Sheriff’s Department, the Riverside County District Attorney’s Office, and the Menifee and Murrieta Police Departments, over a span of many years, have acquired similar tools with approval from their respective Board of Supervisors and City Councils. This has been accomplished during the annual budget processes, or as individual board agenda item purchases. The Hemet Police Department has obtained similar approval from the City Council to acquire and use specialized equipment.
Through the Association of Riverside County Chiefs of Police and Sheriff's (ARCCOPS) mutual aid agreement, all cities within Riverside County, including the Hemet Police Department, have agreed to accept the use of each agency's Specialized/Military Equipment Use policy, related to any enforcement action throughout Riverside County.
As part of the Hemet Police Department’s mission to provide law enforcement services to the City of Hemet, it also works in conjunction with the Menifee and Murrieta Police Departments to provide Special Weapons and Tactics services (S.W.A.T.). This is done under the guidance of an approved and consolidated Memorandum of Understanding between the three cities. This memorandum of understanding allows for the shared use of resources and specialized equipment that are identified by AB481 as “military equipment.” The Department also operates in various capacities with various incorporated cities, as well as providing county-wide mutual aid services upon request.
The Hemet Police Department, and its Riverside County law enforcement partners, are responsible for ensuring the highest standard of public safety, the protection of its community, and the apprehension of criminal offenders. To help achieve and maintain the highest standard of public safety, it is important that the Hemet Police Department receive support from its local elected officials, who are committed to funding operational needs. This includes the approval to purchase and finance necessary tools, protective gear, and specialized equipment for the purpose of helping protect and save lives and property.
With the City Council’s partnership and approval, the Hemet Police Department can operate with the most advanced technology, equipment, and resources available, and allow the Hemet Police Department to be successful in their purpose of protecting and serving the community with increased effectiveness, preparedness, and proper lifesaving tactics. The continued use of specialized equipment will allow the Hemet Police Department to operate within the same professional and
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uniformed standards as other successful law enforcement agencies across the county, state, and country.
Although some of the specialized equipment and resources, listed as “military equipment” in AB481 can be found in a military environment, the purpose for the equipment deployed by law enforcement is significantly different.
For reference, the Hemet Police Department’s Specialized Equipment Use Policy and Specialized Equipment List are attached to this document.
PREVIOUS COUNCIL ACTION:
Specialized Equipment Use Policy and Ordinance annual review by City Council in June 2023 during a regular council meeting:
Action:
The City Council voted 5-0, in approval of the latest Annual Report for the Hemet Police Department's Specialized Equipment Use Policy (Policy 705), per Ordinance 1998, Section 38-3.
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 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 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.
FISCAL IMPACT:
The approval and support from the Hemet City Council in adopting the Hemet Police Department's Specialized Equipment List and the Hemet Police Department's Specialized Equipment Use Policy is vital to the effectiveness of the Hemet Police Department in the resolution of critical incidents.
Support from the City Council will significantly decrease the fiscal impact on Hemet residents and businesses, from the use of approved specialized equipment by the Hemet Police Department. While there is no fiscal impact to the adoption of this list, a considerable fiscal impact to Hemet residents and businesses may result from civil liability, if Hemet Police Department is not properly equipped
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with the specialized equipment and tools that are required to resolve critical incidents safely and effectively.
ALTERNATIVE(S):
The City Council may choose not to review and approve the Hemet Police Department's current and future Specialized Equipment List and its Specialized Equipment Use Policy; however, the Hemet Police Department would not have the authority to establish an ongoing standard and policy safe de- escalation techniques and the use and application of "military equipment" as required by AB481.
ATTACHMENT(S):
Attachment 1_ Ordinance, Adding Section 38-3 2024
Attachment 2 HPD Policy 705 Specialized_Equipment 2024
Attachment 3 PowerPoint Ord 38-3 and AB481 2024 (3)
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City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Apr 23 2024
Department: City Council
Submitted by: Mark Prestwich, City Manager
Tiffany Barnett, Acting Administrative Services Director;
☒ Receive and File ☐ Consent Calendar ☐ Business Item ☐ Public Hearing
TITLE:
City of Hemet Budget Adjustments Dated February 29, 2024
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
Receive and file the City of Hemet Budget Adjustments Dated February 29, 2024.
BACKGROUND:
As stated in Section 2 of the City of Hemet Resolution 2023-115, the City Manager is authorized to transfer budgeted amounts between Divisions and accounts with the same Department and Fund over the course of the fiscal year covered by the Budget so long as such transfer is reported to the City Council within forty-five (45) days.
ANALYSIS:
In general, budget adjustments are not posted to the July reporting period. For financial reporting purposes, it is necessary that the month of July not be modified, as this is the month that reflects the "Original Budget" and is the basis for all comparative analytics used during the fiscal year.
Quantitatively significant adjustments are typically those that require Council approval.
The February adjustments posted into the City's financial software are listed in Attachment 1.
STRATEGIC PLAN INTEGRATION:
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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.
ATTACHMENT(S):
Attachment 1: February Budget Adjustments
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ATTACHMENT 1
City of Hemet Budget Adjustments FY 2023/2024
February 2024
BUDGET REQUESTS APPROVED BY CITY COUNCIL:
From City Council Meeting on February 13, 2024, Staff Report 22.C:
Establish revenue and appropriations for the Encampment Resolution Funding Program Account # Amount Explanation
266-0584 682,752.50 Establish revenue
266-1205-1100 237,250.00
266-1205-1400 15,000.00 Appropriations for Salaries & Benefits for the 266-1205-1405 189,000.00 Community Solutions Coordinator 266-1205-1410 15,000.00
266-1205-1420 15,000.00
266-1205-2250 59,013.54 Appropriations for office supplies 266-1205-2270 3,500.00 Appropriations for computer hardware 266-1205-2550 7,500.00 Appropriations for conferences 266-1205-2560 9,000.00 Appropriations for training & education 266-1205-2700 2,500.00 Appropriations for uniforms & safety equipment 266-1205-2710 100,000.00 Appropriations for professional services 266-1205-2860 29,988.96 Appropriations for indirect grant costs From City Council Meeting on February 27, 2024, Staff Report 16.A:
2023-24 Mid-Year Budget Update - adjustments for revenue projections and requested appropriations Account # Amount Explanation
110-0120 (1,578,200.00) Sales and Use Tax is projected to decrease from $17,438,000 to $15,859,800 110-0521 70,000.00 Mutual Aid Reimbursements are projected to increase from $610,000 to $680,000 110-0530 127,000.00 AB109 PACT Program revenue is projected to increase from $270,000 to $397,000 110-0652 51,000.00 Fire State Mandated Fee revenue is projected to increase from $6,200 to $57,200 110-0746 25,000.00 HUSD Contribution for SROs is projected to increase from $1,080,000 to $1,105,000 115-0126 (1,524,100.00) Measure U Sales Tax is projected to decrease from $16,840,000 to $15,315,900 120-0221 2,125,600.00 Building Permit Fee revenue is projected to increase from $1,574,400 to $3,700,000 120-0630 211,500.00 Building Plan Check Fee revenue is projected to increase from $524,400 to $735,900 120-0664 40,000.00 Vehicle Abatement revenue is projected to increase from $22,000 to $62,000 100-1100-2550 15,000.00 Appropriations for 5 Councilmembers to attend ICSC 100-1100-2550 6,700.00 Appropriations for 3 Councilmembers to attend League of CA Cities 100-1200-2710 5,800.00 Appropriations for League of CA Cities dues 100-1200-2710 2,700.00 Appropriations for SCAG dues 110-3225-1300 5,000.00 Appropriations for Fire Prevention Overtime 110-3225-1300 25,000.00 Appropriations for Fire Prevention Weed Abatement 120-3350-1300 10,000.00 Appropriations for Code Compliance Overtime 120-3350-1300 5,500.00 Appropriations for Code Compliance Stand-by Overtime 120-3350-1100 8,200.00
120-3350-1400 3,600.00 Appropriations for Salaries and Benefits for Additional Code Enforcement Officer II 120-3350-1405 7,600.00
120-3300-2610 661,600.00 Appropriations for Building's Professional Services contract with Willdan 110-3006-1300 25,000.00 Appropriations for Police Overtime (Reimbursable HUSD Security Services) 110-3003-1300 70,000.00 Appropriations for Police Overtime (Reimbursable Indio PD Security Services)
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ATTACHMENT 1
City of Hemet Budget Adjustments FY 2023/2024
February 2024
DEPARTMENT BUDGET TRANSER REQUESTS APPROVED BY CITY MANAGER:
Fire & Life Safety Request for Budget Transfer:
Reallocate the FY22 State Homeland Security Grant
Account # Amount Explanation
232-3209-1300 (3,040.00) Transfer appropriations from Overtime for training to Maintenance & Operations/ 232-3209-2450 3,040.00 Parts & Supplies for radios Community Development Department Request for Budget Transfer:
Transfer salary savings to establish the maintenance and operations budget for the Economic Development Program Account # Amount Explanation
120-1702-1100 (15,300.00) Salary savings for months that Economic Development Manager was vacant 120-1702-2200 500.00 Appropriations for cell phone 120-1702-2250 1,900.00 Appropriations for office supplies 120-1702-2260 200.00 Appropriations for software purchases 120-1702-2270 1,500.00 Appropriations for computer hardware 120-1702-2400 500.00 Appropriations for contracts 120-1702-2560 10,200.00 Appropriations for training & education 120-1702-2714 500.00 Appropriations for printing services
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City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Apr 23 2024
Department: Finance
Submitted by: Mark Prestwich, City Manager
Tiffany Barnett, Acting Administrative Services Director;
☒ Receive and File ☐ Consent Calendar ☐ Business Item ☐ Public Hearing
TITLE:
Receive and File the Annual Comprehensive Financial Report and Single Audit Report Ending June 30, 2023
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
Receive and file the Annual Comprehensive Financial Report and Single Audit Report for the fiscal year ended June 30, 2023.
BACKGROUND:
The City is required to issue independent audited financial statements on an annual basis. Following the close of each fiscal year, the City's external auditors conduct an audit of the City's financial records and assist in the compilation of the Annual Comprehensive Financial Report (ACFR). The objective of general-purpose external financial reporting is accountability. The goal of a financial statement audit is to provide users with reasonable assurance from an independent source that the information presented in the statements is reliable.
Additionally, a Single Audit is a comprehensive examination of an organization’s financial statements and its utilization of federal assistance, commonly referred to as federal funds, federal grants, or federal awards. The purpose of a single audit is to ensure accountability and transparency in the use of federal funds by organizations. Any organization that expends $750,000 or more of federal assistance are required to undergo a single audit. The audit encompasses both financial statements and compliance with federal award requirements for major programs.
ANALYSIS:
The City’s financial statements have been audited by the City's outside auditors Van Lant and Fankhanel, LLP (VLF) a firm of certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year that ended
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June 30, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City’s financial statements for the fiscal year ended June 30, 2023, were fairly presented in conformity with Generally Accepted Accounting Principals (GAAP). The independent auditor’s report is presented as the first component of the financial section of this report.
The report presents historical and comparative information that can be useful to City staff, Elected Officials, and external users, such as debt rating agencies, businesses, other public agencies, and the City's residents.
The City of Hemet's ACFR includes the following major sections and information:
Introductory Section
Letter of Transmittal - prepared by management and used to communicate information on areas that may have an impact on the City's finances now and in the future. This includes economic factors as well as budget and management factors.
Financial Section (the main body of the annual report for current year information) Independent Auditor’s Report – the City’s report card on the content of the annual report Management’s Discussion and Analysis (MD&A) – provides an analytical overview of the City’s financial status
Basic Financial Statements – show finances at a point in time (assets - liabilities) and throughout the year (revenues - expenditures), budget to actual revenues and expenditures, and cash flows
City-wide Statements – overview of financial information Fund Financial Statements – a detailed look at funds, showing Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balance
Notes to the Financial Statements (Notes) – a narrative explanation that accompanies the Basic Financial Statements
Required Supplementary and Supplementary Information Sections Budget to Actual Comparisons – for the General Fund and other select major funds Pension Information – 7 years of pension funding information OPEB Information – 4 years of OPEB funding information A breakout of individual funds – for funds that were presented in a cumulative manner in the Financial Section
Statistical Section (current and historical information – up to 10 years) Financial Trends
Revenue Capacity Information
Debt Capacity Information
Demographic and Economic Information
Operating Information
DISCUSSION:
General Fund Balance
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The most notable measure of a City's financial health is the General Fund Balance. As presented in the Basic Financial Statements, the City's General Fund has a balance of $63.6 million as of June 30, 2023. This balance is comprised of a number of categories, as follows:
$30,292,737 non-spendable, restricted, or committed resources. These include:
o $119,235 - prepaid items
o $2,017,351 - Measure U Prepaid Fire Engines and Communications Services o $1,222,910 - PEG Fees
o $301,462 - Housing and Community Development Grants
o $9,265,960 - 20% Economic Stabilization Reserve
o $17,365,819 - Measure U fund balance
$3,105,616 in assigned funds for continuing appropriations $30,214,501 in unassigned fund balance
The unassigned fund balance (excluding Measure U) increased $8,330,464 over FY21-22. The committed fund balance for Measure U decreased by $465,899 (excluding the prepaid items). With the financial stewardship of the Hemet City Council that prioritized sound fiscal policies, the City of Hemet finished the year strong with higher-than-expected revenues and held expenditures within budget despite substantial salary savings from vacant positions that have been a challenge to recruit and retain.
Audit Findings:
During the audit process, VLF also issues a Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.
VLF identified one Finding as described below:
Condition:
While performing audit procedures, we identified and proposed several material adjusting entries to the 115, No. Auditing on Standards Furthermore, records. accounting City’s Statements ”Communicating Internal Control Related Matters Identified in an Audit” states that “indicators of material material a of auditor the by include: control internal in weaknesses identification 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, ensuring that financial information is reliable and properly recorded, and evaluating and monitoring ongoing activities.
Potential Effect of Condition:
Internal controls are not established to identify material misstatements to the financial statements and ultimately could result in material misstatements 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., and be prepared with the provision for signing off by date and initials when the procedure is complete.
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Views of Responsible Officials:
The City understands the critical importance of internal controls. Within the Finance Policies, there are several internal controls in place to minimize errors and oversights. Due to unforeseeable staffing challenges that were presented to the Finance Department during this fiscal year, appropriate personnel were unavailable for key review processes prior to the formal audit process.
The Administrative Services Director, Accounting Manager, and Principal Accountant are among the professional staff who are able to prepare and review the year-end financial transactions and financial statement notes. It is the procedure to have the Principal Accountant monitor, maintain and record Capital Assets and Infrastructure while the Accounting Manager reviews them for content and accuracy. The Accounting Manager prepares the majority of the year-end entries and has the Principal Accountant review them for content and accuracy prior to posting and submission to the Administrative Services Director for final review. In the event that the Accounting Manager or Principal Accountant is not present, the Accountant will assist in the review process.
Through this year’s audit process and for future years to come, staff continues to create several schedules and tracking mechanisms that will assist in ensuring the capture and accurate recording of financial transactions.
STRATEGIC PLAN INTEGRATION:
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 no fiscal impact to report. The cost of preparing the annual report and the independent audit was included as part of the annual budget.
ATTACHMENT(S):
Hemet ACFR FY 2023 FINAL
Hemet Single Audit Report FY 2023 FINAL
15.B
ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year Ending
June 30, 2023
CITY OF HEMET
CALIFORNIA
Joe Males – Mayor
Malcolm Lilienthal – Mayor Pro-Tem
Carole Kendrick – Councilmember
Jackie Peterson – Councilmember
Linda Krupa – Councilmember
PREPARED BY: CITY OF HEMET FINANCE DEPARTMENT
15.B
CITY OF HEMET, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2023
15.B
City of Hemet
Annual Comprehensive Financial Report
Year Ended June 30, 2023
TABLE OF CONTENTS
PAGE
I. INTRODUCTORY SECTION
Letter of transmittal i
O r ganizational Chart v
List of Principal Officials vi
GFOA ACFR Certificate of Achievemen t vii
II. FINANCIAL SECTION
Independent Audito r’s Report 1
Mana
gement’s Discussion & Analysis 4
Basic Financial Statements:
G o v e r n m e nt-wide Financial Statements:
Statement of Net Position 17
Statement of Activities 18
Fund Financial Statements:
Balance Sheet - Governmental Funds 20
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 23 Statement of Revenues, Expenditures, and Chan
ges in Fund Balances - Governmental Funds 24
Reconciliation of the Statem ent of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to t he Statement of Activities
26 Proprietar y Funds:
Statement of Net Position 27
Statement of Revenues, Expenses, and Chan ges in Net Position 28 Statement of Cash Flows 29
Fiduciar
y Funds:
Statement of Net Position 30
Statement of Chan
ges in Net Position 31
Notes to Financial Statements 32
Required Supplementar
y Information:
Schedule of Revenues, Expenditures, and Chan ges in Fund Balance - Budget and Actual:
General Fund 67
Sewer and Storm Drain 68
ARPA 63
69 Schedule of Chan ges in the Net Pension Liability – Miscellaneous Plan 70 Schedule of Chan ges in the Net Pension Liability – Safety Plan 72 Schedule of Contributions – Agent-Multiple Employer Pension Plans 74 Schedule of Chan ges in the Net OPEB Liability 76
Schedule of OPEB Plan Contributions 78
Notes to Required Supplementar y Information 79
Supplementary Information:
Schedule of Revenues, Expenditures, and Chan
ges in Fund Balances - Budget and Actual:
Measure U Operatin g Fund Activity 81
B r i d ges/Streets/Traffic Signals Capital Projects Fund 82 Non-Ma jor Governmental Funds: 83
Combinin g Balance Sheet 8 6
Combinin g Statement of Revenues, Expenditures, and Changes in Fund Balances 92
15.B
City of Hemet
Annual Comprehensive Financial Report
Year Ended June 30, 2023
TABLE OF CONTENTS - Continued
PAGE
Supplementary Information - Continued:
Schedule of Revenues, Expenditures, and Chan ges in Fund Balances - Budget and Actual:
Public Safet y Towing 98
G a s T a x 99
Measure A 100
Air Pollution Reduction 101
L i ghting/Landscaping Maintenance 102
Post Prop 218 Li ghting 103
Post Prop 218 Landscape 104
Public Works CFD 105
Asset Seizure 106
Public Safet y Grants 107
Public Safet y CFD 108
COPS/AB 3229 109
Local Law Enforcement Block Gran t 110
Communit y Development Block Grant 111
General Plan 112
H O M E P r ogram 113
CalHome Gran t 114
2001 - 2008 HOME Pro gram 115
N e i ghborhood Stabilization Program Grant 116
Housin g Authority 117
Indian Gamin g Grants 118
Public Meetin g Facilities 119
General Facilities 120
Flood Control 121
Law Enforcement Facilities 122
Fire Facilities 123
Park Developmen
t 124
V a l l e y Wide DVL Park 125
L i b r a r y Facilities 126
Equipment Replacemen t 127
General Capital 128
LaSalle Librar y Endowment Permanent Fund 129
Internal Service Funds: 131
Combinin g Statement of Net Position 132
Combinin g Statement of Revenues, Expenses, and Changes in Net Position 134 Combinin g Statement of Cash Flows 136
Custodial Funds: 138
Combinin g Statement of Fiduciary Net Position 139
Combinin g Statement of Changes in Fiduciary Net Position 140
III. STATISTICAL SECTION 143
Net Position b
y Component 144
Chan ge in Net Position 146
Fund Balance of Governmental Funds 150
Chan ges in Fund Balances of Governmental Funds 152
Own Source Revenues 154
Assessed Value and Estimated Actual Value of Taxable Property 155 Propert y Tax Rates – Direct and Overlapping Governments 156 Principal Propert y Taxpayers 157
Propert y Tax Levies and Collections 158
Ratios of Outstandin g Debt by Type 159
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City of Hemet
Annual Comprehensive Financial Report
Year Ended June 30, 2023
TABLE OF CONTENTS - Continued
PAGE
III. STATISTICAL SECTION - Continued
Ratios of General Bonded Debt Outstandin g 160
Direct and Overlappin g Governmental Activities Debt 161 L e gal Debt Margin Information 162
P l e d ged Revenue Coverage 163
D e m o graphic and Economic Statistics 164
Principal Emplo yers 165
Full-time and Par t-time City Employees 166
Operatin g Indicators 167
Capital Asset Statistics 168
Water, Refuse, and Sewer Rates 169
Water Sold b y Type of Customer 170
15.B
INTRODUCTORY SECTION
15.B
O
FFICE OF THE CITY MANAGER
March 29, 2024
To
the Members of the City Council and Citizens of the City of Hemet, It
is the policy of the City of Hemet to annually publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of certified public accountants. Pursuant to that requirement, we hereby issue the Annual Comprehensive Financial Report (ACFR) of the City of Hemet for the fiscal year ended June 30, 2023.
Thi
s report consists of management’s representations concerning the finances of the City.
Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City’s assets for loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable assurance rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The C
ity’s financial statements have been audited by VLF, LLP., a firm of certified public accountants.
The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended June 30, 202 3, was fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.
The i
ndependent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited City’s internal controls and legal requirement involving the administration of federal awards. These reports are available in the City’s separately issued Single Audit Report.
GA
AP requires that management provide a narrative intr oduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors in the financial section of the ACFR.
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15.B
Profile of the City of Hemet, California
The City of Hemet, incorporated in 1910, is nestled in the gorgeous San Jacinto Valley, with 340 days of sunshine annually. Hemet is centrally located in beautiful Southern California, between San Diego, Palms Springs and Orange County. The City currently occupies a land area of approximately 30 square miles and serves an estimated population of 89,833 residents.
Hemet is the gateway to breathtaking natural outdoor resources and activities including Diamond Valley Lake and Lake Hemet which offer various camping, boating, kayaking and fishing activities. The City operates 12 parks which fulfill community recreational needs and serve to enrich the quality of life for the local community with more than 30 miles of hiking and biking trails. The City continues to offer residents and visitors the appeal of rural living while providing opportunity for growth and a strong sense of community.
The Hemet community is a growing full-service community that is a proud and supportive of its Fire and Police Departments. It serves as pioneer community, being the first Southern California City with a Wetzels Pretzels Drive Thru; the first Law Enforcement agency in Riverside County to fully deploy Body Worn Cameras to all its officers, and Drone as a First Responder Program.
The City is empowered to levy a property tax on both real and personal properties located within its boundaries. It also is em powered by state statute to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the City Council.
The City of Hemet has operated under the council -manager form of government since 1984 . Policy making and legislative authority are vested in a City Council consisting of the Mayor and four council members elected at-large. Beginning with the election in November 2016, council members are now elected by council districts. The City Council is responsible for, among many things, passing ordinances, adopting the annual budget, appointing committees, and hiring the City Manager. The City Manager is responsible for carrying out the policies and ordinances of the City Council, overseeing the day-to-day operations of the City, and for appointing the heads of various departments. Council members are elected on a non-partisan basis and serve four-year staggered terms, with two or three council members elected every two years. The Mayor is selected in December by the City Council to serve a one-year term.
The City of Hemet provides a full range of services which include general government , public safety (police and fire protection), community and economic development, library services, water service, and the construction and maintenance of highways, streets, and other infrastructure. In addition to general City activities, the Council is financially accountable for the Hemet Housing Authority (additional information on this legally separate agency can be found on Note 1 in the notes to the financial statements) and the Successor Agency to the former Hemet Redevelopment Agency (RDA).
The annual budget serves as the foundation for the City’s financial planning and control. The Finance Division, under the direct ion of the Administrative Services Director, is responsible for compiling the estimated revenues and appropriations for the City Manager. Prior to the beginning of the new fiscal year, the City Council adopts the annual operating budget at a public budget workshop.
The development of the City of Hemet’s annual operating budget begins towards the end of January once the prior year ACFR has been completed. Typically, the department’s appropriations and additional requests are submitted to the Finance Division in March. These requests are the starting point for developing a proposed budget. The City Manager reviews the budget requests with the departments and the Finance Division to compile recommendations. Through the budget process, the City Council is provided with workshops to keep the members informed and up to date with the overall progress. When the budget has been reviewed and balanced, t he City M anager then presents the budget document recommendations in the form of a proposed budget to the City Council for review prior to the final City Council meeting in June. The Council is required to hold public meetings on the proposed budget and to adopt a final budget no later than June 30, the close of the City’s fiscal year.
The appropriated budget is prepared by fund, function (e.g., public safety), and department (e.g., police). The City Manager may approve transfers of appropriations within a fund. Transfers of appropriations between funds, however, require the approval of the City Council. ii
15.B
Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund and major special revenue funds, this comparison is presented as part of the required supplementary information in the accompanying financial statements. For governmental funds that have appropriated annual budgets, other than the general fund and major special revenue funds, this comparison is presented in the supplementary section of the accompanying financial statements.
Economic Condition and Outlook
The City of Hemet is located in the Inland Empire (Metropolitan Statistical Area – “MSA”), which consists of Riverside and San Bernardino Counties. There have been modest improvements in the real estate and home building sectors as well as Sales Tax. The Inland Empire MSA is projected to grow in future years as land values continue to remain well below those in Los Angeles, Orange and San Diego Counties.
Fiscal Year 2022-2023, the City has continued to see growth in both assessed valuation and population.
With the financial health the City has been fortunate to realize the past few years, there remains a high degree of economic uncertainty as external factors such as interest rates, high inflation and continued supply-chain disruptions weigh on consumer sentiment. With these challenges in mind, the City remains committed to the community and adopted an increase in the General Fund reserve from 20% to 40% to set more funds aside for a “rainy day”. This conservative approach will help shield the City from future economic uncertainty.
Overall, the City’s Net Position of governmental activities increased by 7.9% in 2023. The City has continued to maintain a healthy grasp on revenues, surpassing fiscal year estimates in several categories, including property and sales taxes and an ongoing growth in building permits.
The General Fund , which is the chief operating fund of the City, ended the fiscal year with a fund balance was $63.6 million. The fund balance increased $9.5 million from the prior year. The increase was mainly due to the increase in the City’s cash and investments along with increased interest. Part of the General Fund houses the City’s Measure U sales tax. The Measure U collection decreased by approximately $500,000 for 2023 and the account balance decreased from $19.9 million in 2022 to $19.4 million. Of the $19.4 million fund balance this year, there is $2.0 million reserved for ongoing projects and purchases; as well as its portion of the 20% compliance of the reserve requirement which calculates out to approximately $3.3 million.
Collectively, the City, the community and its local economy pushed forward and ended the fiscal year on a positive note. This was a combination of higher-than-expected revenues and expenditure savings generated by actions taken to reduce costs.
In November 2016, the citizens of Hemet voted to approve Measure U, a general 1% sales tax measure.
In November 2022, the citizens of Hemet voted to approve Measure H which eliminated the sunset on Measure U. While this Measure is considered a General Tax, the City’s Council passed an implementing Resolution dedicating the use of Measure U revenues to personnel, services, and equipment. 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 committed for future use for public safety. Over the last four fiscal years, Measure U revenues have outpaced projections with the current fiscal year collecting the highest revenues yet.
Long-term Financial Planning
Due to fast-paced increases to OPEB and pension liabilities, most cities are challenged with methods to address financial sustainability. This along with the uncertainty of interest rates and a look forward into potential revenue slow down, the City Council voted on increasing the Gener al Fund reserve to 40%. This will provide the City with a healthier reserve to assist in future needs.
Additionally, the City continues to contribute to an OPEB Trust and a Section 115 Pension Trust. The OPEB Trust is designed to mitigate retiree benefit liability and the Section 115 Pension Trust, which iii
15.B
was adopted by City Council in February 2022, is designed to mitigate future pension liability at reduced investment risk. In August 2022, the City adopted a resolution with options to contribute to the Section 115 Pension Trust either in the amount of 15% or 30% of a given year’s surplus. The current balances are:
• OPEB Trust - $2,520,030.44
• Pension Trust - $525,815.19
Awards and Acknowledgements
The City of Hemet is regularly recognized for excellence in financial reporting. The Government Finance Officers Association of the United States and Canada (GFOA) awards a Certificate of Achievement for Excellence in Financial Reporting to agencies for its Comprehensive Annual Financial Report. In order to receive this prestigious award, a governmental unit must publish an easily readable and efficiently organized ACFR, the contents of which conform to program standards. Such reports must also satisfy both generally accepted accounting principles and applicable legal requirements. The Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year. We believe our current ACFR conforms to the GFOA Certificate of Achiev ement Program and will be submitted for review and consideration.
The preparation of the City’s ACFR is an undertaking of the Finance Division of the Administrative Services Department. The report was made possible by the dedicated service of the entire staff and the City’s independent auditor.
Credit also must be given to the Mayor and City Council for their steadfast support for maintaining the highest standards of professionalism in the management of the City of Hemet’s finances.
Respectfully Submitted,
Mark T. Prestwich
City Manager
iv
15.B
CITIZENS
2022-2023
CITY COUNCIL
JOE MALES-MAYOR
MALCOLM LILIENTHAL-MAYOR PRO-TEM
CAROLE KENDRICK-COUNCILMEMBER
JACKIE PETERSON-COUNCILMEMBER
LINDA KRUPA-COUNCILMEMBER
CITY MANAGER
MARK PRESTWICH
CITY CLERK
JOHN PAUL MAIER
ADMINISTRATIVE SERVICES DIRECTOR
VACANT
PW DIRECTOR/CITY ENGINEER
NOAH RAU
CHIEF OF POLICE
EDDIE PUST
FIRE CHIEF
EDDIE SELL
SENIOR LIBRARIAN
KATHERINE CAINES
INTERIM COMMUNITY SVCS. DIRECTOR
SAL LOPEZ
CITY ATTORNEY
STEVEN GRAHAM
2022-2023
CITY TREASURER
DALE DIELEMAN
v
15.B
PRINCIPAL OFFICIALS OF THE CITY OF HEMET, CALIFORNIA
June 30, 2023
Elected and Administrative Officials
City Council
J o e M a l e s M a y o r
M a l c o l m L i l i e n t h a l M a y o r P r o - T e m C a r o l e K e n d r i c k Councilmember
J a c k i e P e t e r s o n Councilmember
L i n d a K r u p a C ouncilmember
Other Elected Officials
D a l e D i e l e m a n C i t y T r e a s u r e r
Administrative Officials
M a r k P r e s t w i c h C i t y M a n a g e r
S t e v e n G r a h a m C i t y A t t o r n e y
Vacant A d m i n i s t r a t i v e S e r v i c e s D i r e c t o r S a l L o p e z I n t e r i m C o m m u n i t y S v c s . D i r e c t o r Eddie Pust Police Chief
E d d i e S e l l F i r e C h i e f
N o a h R a u P W D i r e c t o r / C i t y E n g i n e e r K a t h e r i n e C a i n e s S e n i o r L i b r a r i a n
vi
15.B
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Hemet
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
vii
15.B
FINANCIAL SECTION
15.B
Independent Auditors' Report
The Honorable City Council
City of Hemet, California
Report on the Financial Statements
Opinions
We have audited the accompanying 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 as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, business-type activities each major fund, and the aggregate remaining fund information of the City of Hemet, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cashflows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further describ ed in the Auditor’s Responsibilities for t he Audit of the Financial State ments section of our report. We are required to be independent of the City and to meet our other ethical responsib ilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presenta tion of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
1
15.B
intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted au diting standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the au dit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of ex pressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and t he reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or eve nts, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other required supplementary information, as l isted in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limite d procedures to the required supplementary information in accordance with auditing standards generally acc epted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining statements and budget schedules, as listed in the table of contents, are presented for purposes of additional analysis and are 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 basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to th e 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 combining statements, as listed in the table of contents, are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and st atistical sections but does no t include the basic financial statements and our 2
15.B
auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between th e other information and the basic financial statements, or the ot her information otherwise appears to be ma terially misstated. If, based on the work performed, we conclude that an unc orrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated March 29, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
March 29, 2024
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15.B
City of Hemet
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
The following discussion and analysis of the financial performa nce of the City of Hemet provides an overview of the City’s financial activities for the fiscal year ended June 30, 2023. Readers are encouraged to consider the information presented here in conjunction with the transmittal letter and financial statements identified in the accompanying table of contents.
OVERVIEW OF THE FINANCIAL STATEMENTS
The annual report consists of five parts – 1) management’s discussion and analysis (this section), 2) the basic financial statements, 3) required supplementary information, 4) a supplementary section that presents combining statements for non-major governmental funds and internal service funds, a nd 5) a statistical section. The basic financial statements include two kinds of statemen ts that present different views of the City; the government-wide financial statements and the fund financial statements.
Government-wide Financial Statements
The governmental fund statements provide readers with a broad overview of the City’s finances.
The Statement of Net Position presents financial information on all of the City’s assets/def erred outflows of resources and liabilities/deferred inflows, with the differe nce reported as net position (Exhibit 2). Over time, increases or decreases in net position can serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information regarding changes to the City’s net posit ion during the most recent fiscal year (Exhibit 3). All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods.
In the Statement of Net Position and the Statement of Activities, the City is divided into two kinds of activities:
Governmental activities – Most of the City’s basic services are reported here. Sales taxes, property taxes, state subventions, and other revenues finance most of th ese activities. The governmental activities of the City include general government, police, fire , public works, community development, housing, parks and library.
Business-type activities – The City charges a fee to customers to help it cover all or most of the cost of the services accounted for in these funds. The business-type activities of the City include water.
Fund Financial Statements
A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
The fund financial statements provide detailed information abou t the City’s most significant funds – not the City as a whole. Some funds are required to be established by State law or by bond covenants. However, the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting administrative responsibilities f or using certain taxes, grants, or other money.
All of the funds of the City can be divided into three categori es: Governmental Funds, Proprietary Funds, and Fiduciary Funds.
Governmental Funds:
Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other current financial assets that can readily be converted to cash. The governmental fund statements provide a 4
15.B
City of Hemet
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
detailed short-term view of the City’s general government operations and the basic serv ices it provides.
Governmental fund information helps determine whether there are more or less financial resources that can be spent in the near future to f inance the City’s programs. The relationship or differences between governmental activities (reported in the Statement of Ne t Position and the Statement o f Activities) and governmental funds is described in a reconciliation at the bottom of the fund financial statements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of reven ues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City adopts an annual appropriation budget for its governmental funds. A budgetary comparison statement is provided for general and special revenue major funds to demonstrate compliance with budgets.
Proprietary Funds:
When the City charges customers for the services it provides – whether to outside customers or to other units of the City – these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Stateme nt of Net Position and the Statement of Activities.
Proprietary funds can be classified into two subcategories: enterprise funds and internal service funds.
Enterprise fund is reported as business-type activities in the government-wide financial statements.
In fact, the City’s enterprise fund is the same as the business -type activities reported in the government-wide statements but provide more detail and additional information, such as cash flows, for proprietary funds.
Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The internal service funds account for the management of the City’s liability insurance and for medical and dental coverage for its employees; as well as, unemployment and other postempl oyment benefits, administrative services, vehicle and facility maintenance, and city attorney. Internal service funds are combined into a single, aggregated presentation in the proprietary f und financial statements. Beca use these services benefit governmental functions, they have been included within governmental activities in the government- wide financial statements.
Fiduciary Funds:
Fiduciary funds are used to account for resources held for the benefit of parties outside the City. The City is an agent for certain assets held for, and under the control of, other organizations and individuals. All of the City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position. These activities are excluded from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.
Notes to the Financial Statements
The notes to financial statements provide additional information that is essential for a full understanding of the information provided in the government-wide and fund financial statements.
Exhibit 1 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain . The remainder of this overview section of manageme
nt’s discussion and analysis explains the structure and contents of each of the statements. 5
15.B
City of Hemet
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
Exhibit 1
Major Features of the City’s Government-wide and Fund Financial Statements
Fund Statements
Government-wide
Statements
Governmental Funds
Proprietary Funds
Fiduciary Funds
Scope Entire City
government (except
fiduciary funds) and
the City’s component
units
The activities of the City
that are not proprietary
or fiduciary
Activities the City
operates similar to
private businesses
Instances in which the
City is the trustee or
agent for someone
else’s resources
Required financial
statements
Statement of
net position
Statement of
activities
Balance sheet
Statement of
revenues,
expenditures and
changes in fund
balances
Statement of net
position
Statement of
revenues,
expenses and
changes in net
position
Statement of
cash flows
Statement of
fiduciary net
position
Statement of
changes in
fiduciary net
position
Accounting basis and
measurement focus
Accrual accounting
and economic
resources focus
Modified accrual
accounting and current
financial resources
focus
Accrual accounting
and economic
resources focus
Accrual accounting
and economic
resources focus
Type of asset/liability
information
All assets and
liabilities, both
financial and
capital, and short-
term and long-term
Only assets expected to
be used up and liabilities
that come due during the
year or soon thereafter;
no capital assets or long-
term debt included
All assets and
liabilities, both
financial and capital,
and short-term and
long-term
All assets and
liabilities, both short-
term and long-term;
the City’s fiduciary
funds do not currently
contain capital assets
althou
gh they can
Type of
inflow/outflow
information
All revenues and
expenses during
year, regardless of
when cash is
received or paid
Revenues for which
cash is received during
or soon after the end of
the year; expenditures
when goods or services
have been received and
payment is due during
the year or soon
thereafte
r
All revenues and
expenses during the
year, regardless of
when cash is
received or paid
All revenues and
expenses during year,
regardless of when
cash is received or
paid
6
15.B
City of Hemet
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
GOVERNMENT-WIDE FINANCIAL STATEMENTS
A summary of the government-wide statement of net position follows:
Exhibit 2
Net Position
(in Millions)
2023 2022 2023 2022 2023 2022
Current and other assets 172.7$ 163.2 $ 37.7 $ 33.3 $ 210.4$ 196.5 $ Noncurrent assets 4.5$ 4.2 $ - $ - $ 4.5 $ 4.2 $ Capital assets 308.2$ 302.8 $ 2.6 $ 3.1 $ 310.8$ 305.9 $ Total assets 485.4$ 470.2 $ 40.3 $ 36.4 $ 525.7$ 506.6 $ Deferred outflows of resources:
OPEB DOR 3.5$ 5.3 $ 0.2 $ 0.4 $ 3.8 $ 5.7 $ Pension DOR 32.6$ 13.6 $ 1.7 $ 0.6 $ 34.3 $ 14.2 $ Total deferred
outflows of resources 36.1 $ 18.9 $ 2.0 $ 1.0 $ 38.0 $ 19.9 $ Long-term debt outstanding 165.2$ 123.7 $ 10.3 $ 10.3 $ 175.4$ 133.9 $ Other liabilities 18.7$ 30.8 $ 2.0 $ 1.9 $ 20.7 $ 32.7 $ Total liabilities 183.8$ 154.5 $ 12.3 $ 12.2 $ 196.1$ 166.7 $ Deferred inflows of resources:
OPEB DIR 3.3$ 2.0 $ 0.2 $ 0.1 $ 3.6 $ 2.1 $ Pension DIR 1.2$ 23.9 $ 0.2 $ 1.6 $ 1.4 $ 25.5 $ Total deferred
inflows of resources 4.6 $ 25.9 $ 0.4 $ 1.7 $ 5.0 $ 27.6 $ Net Position:
Net Investment in Capital Assets 308.2$ 302.8 $ 2.6 $ 3.1 $ 310.8$ 305.9 $
Restricted 62.7$ 60.6 $ - $ - $ 62.7 $ 60.6 $ Unrestricted (37.8)$ (54.8) $ 24.9 $ 20.3 $ (12.9) $ (34.6) $ Total net position 333.1$ 308.6 $ 27.5 $ 23.4 $ 360.6$ 332.0 $ GovernmentActivities Activities
Governmental Total PrimaryBusiness-type
7
15.B
City of Hemet
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
A summary of the government-wide statement of activities follows:
Exhibit 3
Changes in Net Position
(in Millions)
2023 2022 2023 2022 2023 2022
Revenues
Program revenues:
Charges for services 35.6 $ 22.0 $ 14.0 $ 14.1 $ 49.6 $ 36.1 $ Operating grants/contributions 2.8 3.1 - - 2.8 3.1 Capital grants/contributions 11.6 12.1 - - 11.6 12.1 General revenues:
Property taxes 9.4 8.7 - - 9.4 8.7 Transient occupancy taxes 0.9 1.0 - - 0.9 1.0 Sales taxes 17.9 18.5 - - 17.9 18.5 Measure U sales tax 16.2 16.6 - - 16.2 16.6 Motor vehicle in-lieu taxes 8.5 7.8 - - 8.5 7.8 Franchise and other taxes 5.6 5.8 - - 5.6 5.8 Investment income and misc. 0.6 (0.2) 0.6 (0.5) 1.2 (0.7) Total revenues 109.1$ 95.4 $ 14.6 $ 13.6 $ 123.7$ 109.0$ Program expenses
General government 3.6$ 2.3 $ - $ - $ 3.6 $ 2.3 $ Public safety 38.3 29.5 - - 38.3 29.5 Public Safety Measure U 16.7 13.2 - - 16.7 13.2 Community development 6.7 6.1 - - 6.7 6.1 Public works 13.4 9.0 - - 13.4 9.0 Sanitation 2.9 2.8 - - 2.9 2.8 Parks and library 3.0 3.0 - - 3.0 3.0 Water and refuse - - 10.4 9.7 10.4 9.7 Total expenses 84.8$ 66.0 $ 10.4 $ 9.7 $ 95.2 $ 75.7 $ Excess (deficiency) 24.3$ 29.5 $ 4.2 $ 3.9 $ 28.5 $ 33.4 $ Transfers 0.2$ - $ (0.2) $ - $ - $ - $ Beginning Net Position 308.6$ 279.1 $ 23.4 $ 23.6 $ 332.0$ 302.7$ Prior Period Adjustment -$ - $ - $ (4.0) $ - $ (4.0) $ Ending Net Position 333.1$ 308.6 $ 27.5 $ 23.4 $ 360.6$ 332.0$ GovernmentActivities Activities
Governmental Business-type Total Primary
8
15.B
City of Hemet
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
The increase or decrease in net position can provide an indication as to whether the overall financial position of the City improved or deteriorated during the year. The Net Position of the City’s governmental activities increased by 7.9% (from $308.6 million to $333.1 million) in 2023. The City has continued to maintain a healthy grasp on revenues, surpassing fiscal year estimates in several categories, including property and sales taxes and an ongoing growth in building permits. The unrestricted net position – t h e p a r t o f n e t position that can be used to finance daily operations without c onstraints established by debt covenants, enabling legislation, or other legal requirements – shrunk from a deficit of $54.8 million in 2022 to a deficit of $37.8 million in 2023. This decrease is largely due to a ch ange in the pension deferred inflow or resources and reductions in long-term debt.
Total Net Position – Governmental Activities
Exhibit 4
The Net Position of the City’s business-type activities increas ed by 17.5% (from $23.4 million to $27.5 million) in 2023. The decrease was due in part to an increase of the Water Fund’s cash and investments.
The net position (financial position) of the City changed as a result of the revenue and expense fluctuations described below for the governmental and business-type activities of the City.
Governmental Activities
Revenues for the City’s govern mental activities increased 14.4% (from $95.4 million in 2022 to $109.1 million) in 2023. This $13.7 million increase can be attributed to the consistent increase in Charges for Services, which alone grew $13.6 million. Much of this is due t o increases in the development charges for permits and fees.
9
15.B
City of Hemet
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
Revenues by Source – Governmental Activities
Expenses by Function – Governmental Activities
10
15.B
City of Hemet
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
Business-Type Activities
Revenues for the City’s busin ess-type activities increased 7.4% (from $13.6 million in 2022 to $14.6 million) in 2023. This $1.0 million increase can be attributed to the adjustment of GASB 31 and the fair market value allocation based on average cash and investment balances.
GENERAL FUND BUDGET HIGHLIGHTS
Actual expenditures, excluding transfers, for the General Fund were approximately $4.7 million lower than the adopted budget and are summarized as follows:
General Government expenditures were approximately $1.2 million less than final budget appropriations due to salary savings in several departments, including, City Manager and Finance due to vacancies. Additionally, there were a couple of ARPA projects that have been appropriated but not yet spent.
Public Safety expenditures were approximately $2.9 million less than final budget appropriations largely due to salary savings in the Police Department due to vacancies across most of the programs. Community Development expenditure s were approximately $979,000 less than final budget appropriations due to salary savings in some departments, inclu ding, Planning, Building and Engineering due to vacancies.
Parks and Library expenditures were approximately $166,000 less than final budget appropriations due to some salary savings and lower cost in the water utility than budgeted. Capital Outlay expenditures exceeded budget appropriations by approximately $460,000.
Actual revenues, excluding transfers, received for the General Fund were approximately $6.1 million higher than the adopted budget and are summarized as follows:
Taxes exceeded the budget by approximately $3.8 million. While it is a surplus in comparison to budget, it is significantly lower than the increase in 2022 by approximately $4.7 million. Property taxes were in excess of budget by approximately $1.3 million, which can be attributed to increased assessed valuations. Sales taxes were in excess of budget by approximately $2.7 million of which, approximately $1.2 million is for Measure U alone.
Licenses and Permits exceeded the budget by approximately $1.9 million due to higher than anticipated development activity.
Intergovernmental Revenue excee ded the budget by approximately $200,000 due in part to National Opioid Settlement that was not budgeted and higher tha n anticipated Hemet Unified School District payments for School Resources Officers. Charges for Services exceeded the budget by approximately $385, 000 due to the increase in building permits, including, plan check, plan storage, and microfilm reproduction fees. Fines and Forfeitures, along with Investment Income, had an ove rall decrease of $198,000 mainly due to the decline in investment income.
MAJOR FUNDS
As noted earlier, the City uses fund accounting to provide prop er financial management of the City’s resources and to demonstrate compliance with finance-related legal requirements.
Major Governmental Funds. The General Fund is the chief operating fund of the city. At the end of the current fiscal year, the General Fund’s total fund balance was $63.6 million. The fund balance increased $9.5 million. The increase was mainly due to the increase in th e City’s cash and investments along with increased interest.
Measure U sales tax collection decreased by approximately $500, 000 for 2023 and the account balance decreased from $19.9 million in 2022 to $19.4 million. Of the $19.4 million fund balance this year, there is $2.0 million reserved for ongoing projects and purchases; as we ll as, its portion of the 20% compliance of the reserve requirement which calculates out to approximately $3.3 million.
11
15.B
City of Hemet
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
A summary of the Measure U activities follows:
Major Special Revenue Fund. The Sewer and Storm Drain Fund provides Wastewater and Sanitati on services through the City. The net position of the Sewer and Storm Drain Fund decreased by approximately $500,000 mainly due to ongoing and completed infrastructure projects.
Major Capital Projects Fund. The Bridges/Streets/Traffic Facilities Fund accounts for the financial transactions for bridges, streets and traffic facilities in the development impact fees funded through developer contributions.
Major Enterprise Funds. Total net position of the Water Fund at the end of the year amounted to $27.5 million, an increase from $23.4 million in 2022 due to increased revenue. During the past few years due to COVID, payments were allowed to be postponed with no disconnects. Now that this option has been lifted, the revenue from payments has returned to a steady inflow.
Measure U Activity For the Year Ended June 30, 2023
Police Fire Total
Revenues:
Police 2/3, Fire 1/3 overall allocation 10,787,063 5,393,532 16,180,595 Expenditures:
Salary & Fringe Benefits 7,249,594 6,003,758 13,253,352 Operating Supplies & Services 714,560 232,280 946,840 Internal Service Charges 548,100 220,300 768,400 Capital Outlay 990,019 734,906 1,724,926 9,502,273 7,191,244 16,693,517
Measure U in Support of General Fund
Public Safety - - -
Change in Fund Balance 1,284,790 (1,797,712) (512,922) Beginning Fund Balance 13,668,054 6,228,038 19,896,092 Nonspendable 270,005 1,747,346 2,017,351
Committed (20% Reserve) 1,900,455 1,438,249 3,338,703 Committed 12,782,385 1,244,731 14,027,116
Ending Fund Balance 14,952,844 4,430,326 19,383,170 12
15.B
City of Hemet
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
CAPITAL ASSETS
Capital Assets
(net of depreciation, in millions)
Additional information on the City’s capital assets can be found in Note 5 to the financial statements.
2023 2022 2023 2022 2023 2022
Land 12.3$ 12.3 $ - $ - $ 12.3$ 12.3$ Rights of Way 190.5 190.5 - - 190.5 190.5 Buildings and Improvements 12.9 13.6 2.5 2.9 15.4 16.5 Machinery and Equipment 9.0 6.8 - 0.2 9.0 7.0 Software Subscription 0.6 -
Infrastructure 77.9 74.0 - - 77.9 74.0 Construction in Progress 4.9 5.5 - - 4.9 5.5 Total 308.2$ 302.8$ 2.5$ 3.1$ 310.0$ 305.8$ A total of three captial projects were completed in fiscal year 2023:
Project Description Total Project Cost
CIP 5701; Citywide LED Street Light Conversion 995,356 $ CIP 5704; 1920 Pavement Rehabilitation Project 2,149,009$ CIP 5722; 21/22 Accessible Sidewalk & ADA Ramps 479,292$ CIP 5726; 21/22 Citywide Pavement Rehabilitation 3,777,515$ CIP 5727; 21/22 SB1 Pavement Rehabilitation 1,276,035 $ CIP 5728; State St Improvements 224,287 $
TotalActivities Activities
Governmental Business-type
13
15.B
City of Hemet
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
LONG-TERM DEBT
Outstanding Debt
(in millions)
With the implementation of GASB 96, which requires a government to disclose information about its Subscription-Based Information Technology Assets, a new line item has been added into the long-term debt schedule above. See note 6 for more details.
Contacting the City’s Financial Management
This financial report is designed to provide citizens, taxpayer s, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this re port or need additional financi al information, contact the City of Hemet Finance Division at 445 E. Florida Avenue, Hemet, California 92543 or email [email protected].
2023 2022 2023 2022 2023 2022
OPEB 43.0$ 46.6 $ 3.0 3.2 $ 46.0 $ 49.8 $ Compensated absences 3.4 3.1 0.2 0.2 3.6 3.3 Claims Payable 4.4 4.4 - - 4.4 4.4 Settlement Liability - - 3.4 3.6 3.4 3.6 Software Subscription Liability 0.4 - - - 0.4 - Aggregate Net Pension Liabilities 113.9 69.6 5.7 3.2 119.6 72.8 Total Long-Term Liabilities 165.2$ 123.7 $ 12.3 $ 10.3 $ 177.4 $ 133.9$ TotalActivities Activities
Governmental Business-t ype
14
15.B
BASIC FINANCIAL STATEMENTS
15
15.B
THIS PAGE INTENTIONALLY LEFT BLANK
16
15.B
Governmental Business-type
Activities Activities Total
ASSETS
Cash and Investments 153,741,406 $ 35,799,239 $ 189,540,645 $ Receivables:
Accounts 3,075,193 1,784,473 4,859,666 Taxes 645,242 - 645,242 Interest 2,848,563 - 2,848,563 Due from Other Governments 8,646,678 78,646 8,725,324 Due from Fiduciary Funds 923,283 - 923,283 Inventories 169,110 - 169,110 Prepaid Items 2,679,295 5,399 2,684,694 Notes Receivable 7,694,000 - 7,694,000 Allowance for Forgivable Notes (5,773,137) - (5,773,137) Restricted Cash and Investments 525,815 - 525,815 Land Held for Resale 2,076,419 - 2,076,419 Capital Assets:
Land 12,348,575 32,975 12,381,550
Rights of Way 190,468,181 - 190,468,181 Construction in Process 4,942,586 - 4,942,586 Other Capital Assets, Net 100,447,641 2,565,906 103,013,547 Total Assets 485,458,850 40,266,638 525,725,488
DEFERRED OUTFLOWS OF RESOURCES
Pension Related Items 32,557,283 1,727,017 34,284,300 OPEB Related Items 3,518,055 244,570 3,762,625 Total Deferred Outflows of Resources 36,075,338 1,971,587 38,046,925
LIABILITIES
Accounts Payable 8,058,538 513,743 8,572,281 Accrued Salaries and Benefits 1,016,628 26,154 1,042,782 Accrued Liabilities 13,715 5,399 19,114 Deposits 4,550,232 1,487,957 6,038,189 Unearned Revenue 5,020,794 - 5,020,794 Noncurrent Liabilities:
Due Within One Year 2,534,945 307,852 2,842,797 Due in More Than One Year 162,644,560 9,948,996 172,593,556 Total Liabilities 183,839,412 12,290,101 196,129,513
DEFERRED INFLOWS OF RESOURCES
Pension Related Items 1,232,440 194,858 1,427,298 OPEB Related Items 3,349,521 232,854 3,582,375 Total Deferred Inflows of Resources 4,581,961 427,712 5,009,673
NET POSITION
Net Investment in Capital Assets 308,206,983 2,598,881 310,805,864 Restricted for:
Community Development 7,733,974 - 7,733,974 Public Works 36,856,685 - 36,856,685 Public Safety 764,514 - 764,514 Sanitation 16,289,924 - 16,289,924 Libraries:
Expendable 17,738 - 17,738 Nonexpendable 1,000,000 - 1,000,000 Unrestricted (37,757,003) 24,877,484 (12,879,519) Total Net Position 333,112,815$ 27,476,365$ 360,589,180$ City of Hemet
Statement of Net Position
June 30, 2023
The accompanying notes are an integral part of this statement. 17
15.B
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:
General Government 3,632,920 $ 3,156,730 $ - $ - $ Public Safety 55,035,590 17,038,881 2,648,422 459,543 Community Development 6,707,624 288,400 - - Public Works 13,442,039 10,046,850 81,175 10,248,326 Sanitation 2,925,049 5,069,423 16,831 - Parks 1,019,981 - - 572,362 Libraries 1,992,589 15,855 74,330 276,580 Total Governmental Activities 84,755,792 35,616,139 2,820,758 11,556,811 Business-type Activities:
Water 10,394,993 14,016,824 - - Total Business-type Activities 10,394,993 14,016,824 - - Total Primary Government 95,150,785$ 49,632,963 $ 2,820,758 $ 11,556,811 $ General Revenues:
Taxes:
Property Taxes
Transient Occupancy Taxes
Sales Taxes
Motor Vehicle in Lieu Taxes (Unrestricted)
Franchise and Other Taxes
Investment Income
Miscellaneous
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year
Prior Period Adjustments
Net Position - End of Year
City of Hemet
Statement of Activities
Year Ended June 30, 2023
Program Revenues
The accompanying notes are an integral part of this statement. 18
15.B
Net (Expense) Revenue and Changes in Net Position
Governmental Business-type
Activites Activities Total
(476,190)$ - $ (476,190)$
(34,888,744) - (34,888,744)
(6,419,224) - (6,419,224)
6,934,312 - 6,934,312
2,161,205 - 2,161,205
(447,619) - (447,619)
(1,625,824) - (1,625,824)
(34,762,084) - (34,762,084)
- 3,621,831 3,621,831
- 3,621,831 3,621,831
(34,762,084) 3,621,831 (31,140,253)
9,389,116 - 9,389,116
942,102 - 942,102
34,056,340 - 34,056,340
8,546,977 - 8,546,977
5,598,625 - 5,598,625
270,903 577,573 848,476
279,711 - 279,711
151,205 (151,205) -
59,234,979 426,368 59,661,347
24,472,895 4,048,199 28,521,094
308,567,172 23,428,166 331,995,338
72,748 - 72,748
333,112,815$ 27,476,365$ 360,589,180$
The accompanying notes are an integral part of this statement. 19
15.B
Capital
Projects
General Sewer and Storm Bridges/Streets
Fund Drain ARPA Traffic Facilities
ASSETS
Cash and Investments 57,336,737 $ 16,813,125 $ 15,007,969 $ 8,384,284 $ Restricted Cash and Investments 525,815 - - - Receivables:
Accounts 1,698,358 1,315,127 - - Taxes 645,242 - - - Interest 1,343,049 - - - Due from Other Governments 5,495,489 162,897 - - Due from Other Funds 36,878 - - - Due from Fiduciary Fund 420,963 - - - Prepaid Items 2,136,586 - - - Advances to Other Funds - - - - Notes Receivable - - - - Allowance for Forgivable Notes - - - - Land Held for Resale - - - - Total Assets 69,639,117 $ 18,291,149 $ 15,007,969 $ 8,384,284 $
LIABILITIES
Accounts Payable 1,801,022 $ 1,984,887 $ 1,415,756 $ 433,901 $ Accrued Salaries and Benefits 957,400 16,338 3,242 12 Accrued Liabilities 13,715 - - - Deposits 2,967,477 - - 1,136,657 Due to Other Funds - - - - Unearned Revenue - - 4,962,350 - Total Liabilities 5,739,614 2,001,225 6,381,348 1,570,570
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants 286,649 - - -
FUND BALANCE (DEFICITS)
Nonspendable 2,136,586 - - - Restricted 1,524,372 16,289,924 - 6,813,714 Committed 26,631,779 - 5,860,591 - Assigned 3,105,616 - 2,766,030 - Unassigned 30,214,501 - - - Total Fund Balances (Deficits) 63,612,854 16,289,924 8,626,621 6,813,714 Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) 69,639,117$ 18,291,149$ 15,007,969$ 8,384,284$ City of Hemet
Balance Sheet
Governmental Funds
June 30, 2023
Special Revenue
The accompanying notes are an integral part of this statement. 20
15.B
Other Total
Governmental Governmental
Funds Funds
46,407,794$ 143,949,909$
- 525,815
61,254 3,074,739
- 645,242
1,505,514 2,848,563
2,988,292 8,646,678
1,178,015 1,214,893
502,320 923,283
- 2,136,586
- -
7,694,000 7,694,000
(5,773,137) (5,773,137)
2,076,419 2,076,419
56,640,471$ 167,962,990$
1,981,383$ 7,616,949$
23,674 1,000,666
- 13,715
446,098 4,550,232
1,214,893 1,214,893
58,444 5,020,794
3,724,492 19,417,249
871,809 1,158,458
1,000,000 3,136,586
46,694,117 71,322,127
- 32,492,370
5,066,064 10,937,710
(716,011) 29,498,490
52,044,170 147,387,283
56,640,471$ 167,962,990$
The accompanying notes are an integral part of this statement. 21
15.B
THIS PAGE INTENTIONALLY LEFT BLANK
22
15.B
Fund Balances of Governmental Funds 147,387,283$
Amounts reported for Governmental Activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds.
Capital Assets 493,436,214
Accumulated Depreciation (186,239,554) 307,196,660
Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds. 1,158,458 Long-term liabilities including compensated absences and OPEB are not due and payable in the current period and, therefore, are not reported in the funds.
Compensated Absences (3,377,953)
Net Pension Liability (113,922,927)
Net OPEB Liability (43,043,460)
Software Subscription Liability (434,618)
Amounts for deferred inflows and deferred outflows related to the City's Net Pension and Net OPEB Liablity are not reported in the funds.
Deferred Outflows Related to Pensions 32,557,283
Deferred Inflows Related to Pensions (1,232,440)
Deferred Outflows Related to OPEB 3,518,055
Deferred Inflows Related to OPEB (3,349,521)
Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net position. 6,655,995 Net Position of Governmental Activities 333,112,815$
City of Hemet
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
The accompanying notes are an integral part of this statement. 23
15.B
Capital
Projects
General Sewer and Storm Bridges/Streets
Fund Drain ARPA Traffic Facilities
REVENUES
Taxes 49,986,183 $ - $ - $ - $ Licenses and Permits 4,433,228 - - - Intergovernmental Revenues 10,265,501 16,831 14,190,524 4,702 Charges for Services 4,278,537 4,491,466 - 969,356 Fines and Forfeitures 276,322 - - - Investment Income 160,933 283,322 - 133,290 Miscellaneous 220,627 - - - Total Revenues 69,621,331 4,791,619 14,190,524 1,107,348
EXPENDITURES
Current:
General Government 2,471,005 - 1,245,965 - Public Safety 49,181,831 - - - Community Development 5,938,921 - - - Public Works - - - 677,419 Sanitation - 2,925,049 - - Parks 1,019,981 - - - Libraries 1,543,543 - - - Capital Outlay 512,948 2,362,982 4,317,938 - Total Expenditures 60,668,229 5,288,031 5,563,903 677,419 Excess (Deficiency) of Revenues Over
Expenditures 8,953,102 (496,412) 8,626,621 429,929
OTHER FINANCING SOURCES (USES)
Software Subscriptions 468,160 - - - Transfers In 151,205 - - - Transfers Out (20,000) - - - Total Other Financing Sources (Uses) 599,365 - - - Net Change in Fund Balances 9,552,467 (496,412) 8,626,621 429,929 Fund Balances, Beginning 54,060,387 16,786,336 - 6,383,785 Fund Balances, Ending 63,612,854 $ 16,289,924 $ 8,626,621 $ 6,813,714$ City of Hemet
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2023
Special Revenue
The accompanying notes are an integral part of this statement. 24
15.B
Other Total
Governmental Governmental
Funds Funds
2,901,824$ 52,888,007$
- 4,433,228
5,835,269 30,312,827
8,643,663 18,383,022
- 276,322
698,037 1,275,582
129,408 350,035
18,208,201 107,919,023
2,891 3,719,861
1,398,424 50,580,255
768,703 6,707,624
5,188,153 5,865,572
- 2,925,049
- 1,019,981
143,070 1,686,613
7,566,326 14,760,194
15,067,567 87,265,149
3,140,634 20,653,874
- 468,160
20,000 171,205
- (20,000)
20,000 619,365
3,160,634 21,273,239
48,883,536 126,114,044
52,044,170$ 147,387,283$
The accompanying notes are an integral part of this statement. 25
15.B
Net Change in Fund Balances - Total Governmental Funds 21,273,239$ Amounts reported for Governmental Activities in the Statement of Activities are different because:
Governmental funds report capital outlay as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital outlays in the current period.
Capital Outlays 12,184,252
Depreciation Expense (7,408,807)
Loss on Disposal -
Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position.
New Software Subscriptions (468,160)
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 1,158,458
Some expenses reported in the Statement of Activities do not require the use of current financial resources and are not reported as governmental fund expenditures.
Net Change in Compensated Absences (247,639)
Net Change in Net Pension Liability (44,368,623)
Net Change in Net OPEB Liability 3,512,454
Net Change in Software Subscription Liability 304,138
Net Change in Deferred Outflows Pension Related Amounts 18,944,623 Net Change in Deferred Inflows Pension Related Amounts 22,660,962 Net Change in Deferred Outflows OPEB Related Amounts (1,791,205) Net Change in Deferred Inflows OPEB Related Amounts (1,316,090) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities. 35,293 Change in Net Position of Governmental Activities 24,472,895$ City of Hemet
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2023
The accompanying notes are an integral part of this statement. 26
15.B
Business-type Governmental
Activities Activities
Water Enterprise Internal Service
Fund Funds
ASSETS
Current Assets:
Cash and Investments 35,799,239$ 9,791,497$
Receivables:
Accounts 1,784,473 454
Due from Other Governmental Agencies 78,646 - Prepaid Assets 5,399 542,709
Inventories - 169,110
Total Current Assets 37,667,757 10,503,770
Noncurrent Assets:
Land 32,975 -
Construction in Progress - -
Capital Assets 33,340,550 4,637,175
Less: Accumulated Depreciation (30,774,644) (3,626,852) Total Noncurrent Assets 2,598,881 1,010,323
Total Assets 40,266,638 11,514,093
DEFERRED OUTFLOWS
Deferred Outflows Related to OPEB 244,570 - Deferred Outflows Related to Pensions 1,727,017 - Total Deferred Outflows of Resources 1,971,587 -
LIABILITIES
Current Liabilities:
Accounts Payable 513,743 441,589
Accrued Salaries and Benefits 26,154 15,962 Accrued Liabilities 5,399 -
Deposits 1,487,957 -
Compensated Absences Payable - Current Portion 39,252 - Claims and Judgments Payable - Current Portion - 1,264,969 Settlement Liability - Current Portion 268,600 - Total Current Liabilities 2,341,105 1,722,520 Noncurrent Liabilities:
Compensated Absences Payable 206,383 -
Claims Payable - 3,135,578
Settlement Liability 3,088,900 -
Net OPEB Liability 2,992,326 -
Net Pension Liability 5,705,434
-
Total Noncurrent Liabilities 11,993,043 3,135,578 Total Liabilities 14,334,148 4,858,098
DEFERRED INFLOWS
Deferred Inflows Related to OPEB 232,854 - Deferred Inflows Related to Pensions 194,858 - Total Deferred Inflows of Resources 427,712 -
NET POSITION
Net Investment in Capital Assets 2,598,881 1,010,323 Unrestricted 24,877,484 5,645,672
Total Net Position 27,476,365$ 6,655,995$
City of Hemet
Statement of Net Position
Proprietary Funds
June 30, 2023
The accompanying notes are an integral part of this statement. 27
15.B
Business-type Governmental
Activities Activities
Water Enterprise Internal Service
Fund Funds
OPERATING REVENUES
Charges for Sales and Services 13,988,212 $ 14,284,752 $ Miscellaneous 28,612 89,414
Total Operating Revenues 14,016,824 14,374,166
OPERATING EXPENSES
Personnel Services 3,501,463 2,148,593
Parts and Supplies 192,274 584,844
Maintenance 1,442,123 1,430,815
Utilities 502,437 945,770
Water Purchases 346,548 -
Contracts, Rents and Leases 781,105 588,421 Insurance 198,900 7,596,850
Claims and Judgments - 942,009
Enterprise Assessments 2,883,000 -
Depreciation 547,143 101,571
Total Operating Expenses 10,394,993 14,338,873
Operating Income (Loss) 3,621,831 35,293
NONOPERATING REVENUES (EXPENSES)
Loss on Disposal - -
Investment Income 577,573 -
Intergovernmental Revenues - -
Total Nonoperating Revenues (Expenses) 577,573 - Income (Loss) Before Transfers and
Capital Contributions 4,199,404 35,293
Transfers In - -
Transfers Out (151,205) -
Change in Net Position 4,048,199 35,293
Total Net Position, Beginning 23,428,166 6,620,702 Total Net Position, Ending 27,476,365 $ 6,655,995 $ City of Hemet
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2023
The accompanying notes are an integral part of this statement. 28
15.B
Business-type Governmental
Activities Activities -
Water Internal
Enterprise Fund Service
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users 14,271,849 $ - $ Cash Received from User Departments - 14,389,577 Cash Paid to Suppliers for Goods and Services (6,218,143) (11,997,471) Cash Paid to Employees for Services (3,577,266) (2,169,132) Cash Payments for Insurance and Claims - (990,559) Net Cash Provided (Used) by Operating Activities 4,476,440 (767,585)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Principal Paid Towards Settlement Liability (268,600) - Nonoperating Grants - -
Cash Received From Other Funds - - Cash Paid to Other Funds (151,205) -
Net Cash Provided (Used) by Noncapital
Financing Activities (419,805) -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets - (438,893) Net Cash Provided (Used) by Capital and
Related Financing Activities - (438,893)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income Received 577,573 -
Net Cash Provided (Used) by Investing Activities 577,573 - Net Increase (Decrease) in Cash and Cash Equivalents 4,634,208 (1,206,478) Cash and Cash Equivalents - Beginning of the Year 31,165,031 10,997,975 Cash and Cash Equivalents - End of the Year 35,799,239$ 9,791,497$ Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Operating Income (Loss) 3,621,831$ 35,293$
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Depreciation 547,143 101,571
(Increase) Decrease in Accounts Receivable 217,791 15,411 (Increase) Decrease in Inventories - 10,117 (Increase) Decrease in Prepaids - (542,709) (Increase) Decrease in Due from Other Governments (110) - (Increase) Decrease in Deferred Outflows - Pensions (1,131,650) - (Increase) Decrease in Deferred Outflows - OPEB 124,523 - Increase (Decrease) in Accounts Payable 128,244 (318,179) Increase (Decrease) in Accrued Salaries and Benefits (50,617) (20,539) Increase (Decrease) in Claims Payable - (48,550) Increase (Decrease) in Deposits Payable 37,344 -
Increase (Decrease) in Compensated Absences Payable 48,221 - Increase (Decrease) in Deferred Inflows - Pensions (1,422,199) - Increase (Decrease) in Deferred Inflows - OPEB 91,493 - Increase (Decrease) in Net Pension Liability 2,508,607 - Increase (Decrease) in Net OPEB Liability (244,181) -
NET CASH PROVIDED BY OPERATING ACTIVITIES 4,476,440$ (767,585)$ City of Hemet
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
The accompanying notes are an integral part of this statement. 29
15.B
Successor Agency
OPEB Trust Custodial Private-purpose
Fund Funds Trust Fund
ASSETS
Cash and Investments - $ 560,776$ 93,410 $ Investments:
Balanced HighMark PLUS 2,520,030 - - Receivables:
Accounts - 9,230 1,018,442 Notes - - 168,309 Land Held for Resale - - 2,208,773 Restricted Assets:
Cash and Investments with Fiscal Agents - 1,080,732 40,136 Total Assets 2,520,030 1,650,738 3,529,070
LIABILITIES
Accounts Payable - 251,597 100 Accrued Liabilities - - 7,497 Deposits Payable - - - Interest Payable - - 121,515 Due to City of Hemet - 420,963 502,320 Bonds Payable - - 7,189,944 Total Liabilities - 672,560 7,821,376
NET POSITION
Held in Trust for Successor Agency - - (4,292,306) Restricted for OPEB 2,520,030 - - Held in Trust for Other Organizations,
Individuals, and Governments - 978,178 - Total Net Position 2,520,030$ 978,178$ (4,292,306)$ City of Hemet
Statement of Net Position
Fiduciary Funds
June 30, 2023
The accompanying notes are an integral part of this statement. 30
15.B
Successor
Agency
OPEB Trust Custodial Private-purpose
Fund Funds Trust Fund
ADDITIONS
Contributions:
Taxes and Assessments Collected for Others - $ 1,443,495$ 1,018,442 $ Developer Contributions - 1,001,125 - Employer Contributions 234,800 - - Investment Earnings:
Investment Income 216,126 30,951 1,892 Total Additions 450,926 2,475,571 1,020,334
DEDUCTIONS
Administrative Costs 13,450 - 130,560 Interest on Bonds - - 225,895 Payments on behalf of Others - 918,712 - Payments to Other Agencies for Charges Collected - 1,335,868 - Total Deductions 13,450 2,254,580 356,455 Change in Net Position 437,476 220,991 663,879 Net Position - Beginning of Year 2,082,554 757,187 (4,956,185) Net Position - End of Year 2,520,030 $ 978,178 $ (4,292,306 )$ City of Hemet
Statement of Changes in Net Position
Fiduciary Funds
Year Ended June 30, 2023
The accompanying notes are an integral part of this statement. 31
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Hemet, California was incorporated in 1910 as a ge neral law City. The City operates under a Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, refuse and recycling collection, water, sewer maintenance, public library, parks, public improvements, planning and zoning, and general administrative services.
The financial statements of the City of Hemet have been prepar ed in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted st andard setting body for establis hing governmental accounting and financial reporting principles. The more significant accounting policies are described below.
A) Description of Reporting Entity
In evaluating how to define the City for financial reporting pu rposes, management has considered all potential component units. The primary criteria for including a potential component unit within the reporting entity are the governing body’s financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship, if it appoints a voting majorit y of the organization’s governing body and frequently has the ability to affect the organizations operations, or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an or ganization is fiscally dependent on the primary government regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.
Management determined that the following entities should be reported as blended component units based on the criteria above. Although the following is legally separa te from the City, it has been “blended” as though it is part of the City because the component unit’s gove rning body is substantially the same as the City’s and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component unit; and/or the component unit provides services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.
Hemet Housing Authority
The Hemet City Council is also the governing board of the Hemet Housing Authority; therefore the Authority is included within the reporting entity of the City. The authority was formed under the California Health and Safety Code Section 34200, et seq, to provide financing for sup plying safe and sanitary dwelling accommodations to persons of low income at affordable rents. Separate financial statements are not issued for the Housing Authority.
32
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C) Measurement Focus, Basis of Accounting, and Financial State ment Presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted f or by providing a separate set of self- balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balance or net position, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.
Government-Wide and Fund Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements prese nt summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.
These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, de ferred outflows of sources, liabilities, and deferred inflows of sources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Taxes and other items not included among program revenues are reported instead as general revenues.
Amounts paid to acquire capital assets are capitalized as asset s in the government-wide financial statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements. Amounts paid to reduce lo ng-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expense.
As a general rule, the effect of interfund activity has been el iminated from the government-wide financial statements. Exceptions to this general rule are payments in-lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the government’s water and sewer function and various other functions of the governmen t. Elimination of these charges would distort the direct cost and program revenues reported for the various functions concerned.
When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed.
33
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Governmental Fund Financial Statements
The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of t he current period. For this purpose, the City considers revenues to be available if th ey are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures as well as expen ditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds . Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.
Sales taxes, property taxes, franchise taxes, intergovernmental revenue and rental income associated with the current fiscal period are all considered to be suscept ible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period.
Other revenue items are considered to be measurable and availab le when cash is received by the government.
Non-current portions of long-term receivables due from governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special re porting treatments are used to indicate, however, that they should not be considered “available spendable resources,” since they do not represent net current assets.
Proprietary and Fiduciary Funds
The City’s enterprise and internal service funds are considered proprietary funds. Proprietary funds and fiduciary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods o r services are delivered. Proprietary funds are presented using the economic resources measurement focus . This means that all assets and all liabilities (whether current o r noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type oper ating statements present incr eases (revenues) and decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange tr ansactions are those in which each party receives and gives up essentially equal values. Non-operating r evenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or anc illary activities. Amounts paid to acquire capital assets are capitalized as assets in the enterprise fund financial statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a lia bility in the enterprise fund financial statements, rather than as anothe r financing source. Amounts pa id to reduce long-term indebtedness of the enterprise fund are reported as a reduction of the related liability, rather than as an expense.
The custodial funds account for monies held for the benefit of other organizations and governments to which the City provides accounting and investing services and are reported using economic resources measurement focus and the accrual basis of accounting. The priv ate-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. 34
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D) Fund Classifications
The City reports the following major governmental funds:
General Fund - This is the primary operating fund of the City. It accounts for all activities of the general government, except those required to be accounted for in another fund.
Sewer and Storm Drain Sp ecial Revenue Fund - This fund accounts for the financial transactions of a City- wide program to maintain storm drains and sewer transmission lines. Revenues are intended to cover the maintenance costs for these lines, not all of the costs ass ociated with the replacement, and depreciation of these lines.
ARPA Special Revenue Fund – This fund accounts for the financi al transactions as prescribed under the Federal American Rescue Plan Act (ARPA) of 2021.
Bridges, Streets and Traffic Facilities Capital Projects Fund - This fund accounts for the financial transactions for bridges, streets and traffic facilities in the development impact fee report and is funded through developer contributions.
The City reports the following major enterprise funds:
Water - This fund accounts for the financial transactions of the City’s water utility s ervice, including water production, transmission, and distribution system.
The City also reports th e following fund types:
Internal Service Funds - These funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, on a cost reimbursement basis. These departments consist of administrative, facility maintenance, vehicle maintenance, workers’ compensation, dental, vision, retiree medical and liability insurance.
OPEB Trust Fund - These funds account for the prefunding of post-employment benefits other than pensions.
Custodial Funds - These funds account for resources held by th e City in a trustee capacity as an agent for individuals, private organizations, and/or other governments. Custodial Funds are custodial in nature and are held for the benefit of other individuals, organizations and/or governments. These funds consist of the Police Activities League, pass thru fees collected for the County, and a developer CFD.
Private-purpose Trust Fund - This fund is used to account for the balances and transactions of the Successor Agency to the former Hemet Redevelopment Agency.
E) Cash and Investments
Investments are reported in the accompanying balance sheet at fair value, except for certain certificates of deposit and investment contracts that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates.
Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gai ns or losses realized upon the liquidation, maturity, or sale of investments.
35
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
1) SUMMARY OF SIGNIFICANT ACC OUNTING POLICIES - Continued
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial stateme nts as cash and investments. Investment income earned from pooled investments is allocated to those various funds based on each fund’s average cash and investment balance.
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or were purchased so near their maturity that they present insignificant risk of change in value because of changes in interest rates. Cash and cash equivalents in the accompanying statements include the proprietary funds’ share of the cash and investment pool of the City of Hemet.
F) Receivables
Receivables include such items as taxes, intergovernmental revenues, charges for services, miscellaneous accounts receivable, and interest receivable. No allowance for doubtful accounts has been established, as the City believes all amounts are considered to be collectible in the normal course of business.
G) Inventory and Prepaid Items
All inventories are valued on the average cost method. Inventory in the General Fund consists of City promotional items. Inventory in the Internal Service fund consists of hardware supplies, auto shop supplies, fuel and oil. Inventory in the Enterprise fund consists of expendable supplies held for use by the water utility. All costs are recorded as an expenditure at the time the individual inventory items are consumed.
Prepaid items are payments made to vendors for services that wi ll benefit periods beyond the fiscal year ended using purchase method.
H) Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds " (i.e., the non-current portio n of interfund loans). Any residual balances outstanding between the government al activities and business-type activities are reported in the government-wide financial statements as "internal balances."
Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
I) Forgivable Notes
Certain loans have been made by the City to third parties in or der to enhance the redevelopment, community development, economic development, and housing objectives of the City. Certain loans contain conditions for non-collection (after being held for a certain period of time, etc.). The City has recorded as an allowance for forgivable notes the estimate of the amounts that will not be collected on these loans.
36
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
1) SUMMARY OF SIGNIFICANT ACC OUNTING POLICIES - Continued
J) Land Held for Resale
Land held for resale represents land, structures and their rel ated improvements that were acquired for resale in accordance with the objectives of the Redevelopment P rojects and grants. These costs will be charged to current year project expenditures when the related land and structures are sold. Land held for resale is valued at the lower of cost or expected net realizable value.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.
K) Capital Assets
Capital assets, which include property, plant, equipment, and i nfrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable go vernmental or business-type activities columns in the government-wide financial statements. Capital a ssets are defined by the government as assets with an initial, individual cost of more than $10,000 an d an estimated useful life in excess of two years except in the case of infrastructure-related capital projects, which would only be capitalized when total project costs are expected to exceed $50,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Contributed capital assets are valued at their acquisition value at the date of the contribution.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. No interest were costs capitalized during the current fiscal year.
Capital assets of the primary government, as well as the compon ent units, are depreciated using the straight-line method over the following estimated useful lives.
Buildin
gs and Improvements 25 - 50 years
Infrastructure
Roadwa y 20 - 75 years
Storm Drain 100 years
Water S ystem 30 years
Sewer S ystem 30 years
Machinery and Equipment
Vehicles 7 years
O f f i c e Equipment 5 years
Other E quipment 5 years
L) Compensated Absences
It is the government’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation pay is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements.
37
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
1) SUMMARY OF SIGNIFICANT ACC OUNTING POLICIES - Continued
City employees receive from twelve to thirty-three (12-33) vacation days each year depending upon length of service and bargaining group. Vacation can be accumulated up to a maximum of two years for most City bargaining units; two years plus the current year's accumulation for other units. Unused vacation may be cashed in yearly per each bargaining unit's M.O.U. limitations or upon retirement. City and police employees receive eight (8) hours of sick leave for each month of employment. Management employees accrue six (6) days of sick leave per year. City fire fighters accrue twelve ( 12) hours per calendar month. City general employees' right to accrue sick leave is unlimited. Used sick leave may be cashed in upon retirement at a payment percentage of 25%, 50% or 75% determined by length of c ontinuous service and bargaining unit M.O.U.
City and police employees are allowed to accumulate compensatory leave time for unpaid overtime at 150% rate up to a forty (40) hour or eighty (80) hour maximum depending on M.O.U. limitations.
M) Claims and Judgments
The expenditures for claims are recognized when it is probable that the liability has been incurred at year- end and the amount of the loss can be reasonably estimated. Such claims are reported as liabilities in the Internal Service Funds and government-wide financial statements.
N) Pension
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordanc e with benefit terms. Investments are reported at fair value.
O) Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and O PEB expense, generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: January 1, 2021 Valuation Date; June 30, 2023 Measurement Date; and July 1, 2022 through June 30, 2023 Measurement Period.
P) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial stateme nt element represents consumption of net assets that applies to a future period(s) and so will not be re cognized as an outflow of resources (expense/ expenditure) until then. The City has certain items t hat qualify for reporting in this category:
deferred outflows relating to the City’s net pension and OPEB liabilities.
38
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
1) SUMMARY OF SIGNIFICANT ACC OUNTING POLICIES - Continued
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only one type of item, which arises only under the modified accrual basis of accounting, which qualifies for repor ting in this category. Accordingly, the item, unavailable revenue, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, special assessments, grant receivables, long-term loans receivable, and other miscellaneous receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City also reports deferred inflows relating to the net pension and OPEB liabilities.
Q) Net Position
In the government-wide and proprietary fund financial statements, net position is classified in the following categories:
Investment in Capital Assets – this category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the ou tstanding balances of debt that are attributable to the acquisition, construction or improvement of those assets reduce this category.
Restricted Net Position – this category describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, go vernmental regulation, laws, or other restrictions which the City cannot unilaterally alter.
Unrestricted – this category describes the portion of net position which is not restricted to use.
R) Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose f rom both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the statement of ne t position, a flow assumption must be made about the order in which the resources are considered to be applied.
It is the City’s policy to consider restricted – net position t o have been depleted before unrestricted – net position.
S) Fund Balances
Fund balances in governmental funds are reported in classifica tions that comprise a hierarchy based primarily on the extent to which the City is bound to honor con straints on the specific purposes for which amounts in those funds can be spent. Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of commit ted, assigned, and unassigned fund balance). In order to calculate the amounts to report as restr icted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a fl ow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
39
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
1) SUMMARY OF SIGNIFICANT ACC OUNTING POLICIES - Continued
The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:
Nonspendable Fund Balance - Amounts that cannot be spent either because they are in nonspendable form or are required to be maintained intact.
Restricted Fund Balance - Amounts that are constrained to speci fic purposes by state or federal laws, or externally imposed conditions by grantors or creditors.
Committed Fund Balance - Amounts that may be specified by the C ity Council by ordinance to formally commit part of the City’s fund balances or future revenues for a specific purpose(s) or program. To change or repeal any such commitment will require an additional formal City Council action utilizing the same type of action that was originally used.
The City's committed fund balance includes:
General Fund Emergency Operating Contingency:
Fund balance in the General Fund has been committed for emergen cy/fiscal emergency contingencies, as set by ordinance. Emergencies shall mean the actual or threatened conditions of disaster or of extreme peril to the safety of persons and prope rty within the City caused by such conditions as air pollution, fire, flood, storm, epidemic, riot or earthquake, or other conditions, including conditions resulting from a labor controversy, which conditions are likely to be beyond the control of the services, personnel, equipment and facilities of the City, requiring combined forces of other political subdivisions to c ombat. A fiscal emergency is defined by the City of Hemet Municipal Code Section 2-451. The amount of the commitment as set forth by the City of Hemet Municipal Code Section 2-452 is equal to at least 40% of General Fund budgeted expenditures.
Encumbrance accounting, under which purchase order, contracts a nd other commitments for the expenditures of monies are recorded in order to reserve that po rtion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General, Special Revenue, and Capital Project funds. Encumbrances outstanding at year-end are reported as committed fund balances in the fund financial statements since they do not constitute expenditures or liabilities.
Assigned Fund Balance – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of r esources, but are neither res tricted or committed. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has by resolution authorized the City Manager to assign fund balance.
Unassigned Fund Balance - This amount is for any portion of the fund balances that do not fall into one of the above categories. The general fund is the only fund that r eports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental fund other than general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
40
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
1) SUMMARY OF SIGNIFICANT ACC OUNTING POLICIES - Continued
T) Property Tax Calendar
Property taxes are assessed and collected each fiscal year according to the following property tax calendar:
Lien Date March 1
Levy Date July 1 to June 30
Due Date November 1, 1 st Installment February 1, 2nd Installment Collection Date December 1, 1 st Installment April 10, 2nd Installment
The City receives from the County of Riverside a percentage of the basic 1% maximum tax rate allowed on assessments collected and allocated by the County. Property tax assessments are recognized as revenue when they become both measurable and available to finance the e xpenditures of the reported fiscal year.
Material delinquent property taxes (net of estimated uncollecti bles) are also recorded as current year receivables. Substantially all of the property taxes associated with the reported fiscal year were considered to be both measurable and available to finance expenditures of that fiscal year. When material amounts of property taxes are considered to be measurable but not available to finance the expenditures of the reported fiscal year, they are recorded as a receivable and as deferred revenue (to be recognized as revenue in the year in which they become available).
A delinquency penalty of 6% is assessed by the County of Riverside. If taxes become delinquent, they are deeded to the State and may be sold by the County Tax Collector for taxes due plus 1% per month redemption fee. All property taxes are collected by the County of Riverside and collection fees are deducted by the County before tax revenue is remitted to the City. The assessed valuation is at “full cash value”.
U) Use of Estimates
The presentation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make est imates and assumptions that affect the reported amounts of assets and liabilities and disclosure of co ntingent assets and liabilities at the date of the financial statements and t he reported amounts of revenues a nd expenditures during the reporting period. Actual results could differ from those estimates.
2) CASH AND INVESTMENTS
Cash and investments are classified in the accompanying financial statements as follows:
Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and Investments 153,741,406$ 35,799,239 $ 3,174,216 $ 192,714,861$ Restricted Cash and Investments 525,815 - 1, 120,868 1,646,683 Total Cash and Investments 154,267,221$ 35,799,239$ 4,295,084$ 194,361,544$ Government-wide
Statement of Net Position
41
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
2) CASH AND INVESTMENTS - Continued
Cash and Investments consist of the following:
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the in vestment types that are authorized by the City’s investment policy and the California Government Code. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of deb t proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
*Based on state law requirement s or investment policy requirements, whichever is more restrictive.
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code o r the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that add ress interest rate risk, and concentration of credit risk.
Cash on Hand 7,250$
Deposits with Financial Institutions 39,114,018
Investments 155,240,276
Total Cash and Investments 194,361,544$
Authorized Maximum Maximum
Investment Types by Investment Maximum Percentage Investment Authorized by State Law Policy Maturity* of Portfolio* in One Issue r* U.S. Treasury Obligations Yes None None None
U.S. Government Sponsored
Agency Securities Yes 5 years None None
Municipal Bonds Yes 5 years 20% None
Medium-Term Notes Yes 5 years 20% 5%
Collateralized Certificate of Deposit Yes 5 years None 25% Negotiable Certificates of Deposit Yes 5 years 30% None Banker's Acceptance Yes 180 days 40% None
Commercial Paper Yes 270 days 15% 10%
Money Market Mutual Funds Yes N/A 10% None
Repurchase Agreements Yes 30 days 10% None
Local Agency Investment Fund Yes N/A 90% $75,000,000
42
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
2) CASH AND INVESTMENTS - Continued
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity Allowed In One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker’s Acceptances 30 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Municipal Obligations None None None
Repurchase Agreements 270 days None None
Investment Contracts None None None
Local Agency Investment Fund
(LAIF)
N/A None None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment is, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investm ent will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the City’s investment policy, or debt agreements, and t he actual rating as of fiscal year end for each investment type.
12 Months 13 to 36 37 to 60
Inv estment Type Total Or Less Months Months
U.S. Treasury 58,816,619 $ 1,171,905 $ 46,824,312$ 10,820,402$ U.S. Agency Securities 15,113,278 486,993 14,058,987 567,298 LAIF 64,580,933 64,580,933 - - Municipal Obligations 925,690 - 925,690 - Negotiable CD 2,127,586 969,788 1,157,798 - Medium Term Notes 9,519,917 3,061,899 5,813,240 644,778 Money Market Mutual Funds 29,676 29,676 - - Held by Fiscal Agent:
Money Market Mutual Funds 4,126,577 4,126,577 - - Total 155,240,276$ 74,427,771$ 68,780,027$ 12,032,478$ Remaining Maturity (in Months)
43
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
2) CASH AND INVESTMENTS - Continued
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There was no investments in any one issuer (other than U.S. Government Agencies, Supranationals, Money Market Funds, and external investment pools) that represent 5% or more of total City investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that in the event of the failure of the counterparty (e.g., broker dealer) to a transact ion, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:
The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by t he governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount de posited by the public agencies. California law also allows financial institutions to secure City deposits by p ledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2023, the City deposits (bank balances were insured by the Federal Depository Insurance Corporation up to $250,000 and the remaining balances were collateralized under California law. Investments held by b ond trustee are selected under the terms of the applicable trust agreement. For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreemen t, acquires the investment, and holds the investment on behalf of the reporting government.
Fair Value of Investments
Investments (except those that may be reported at amortized cos t) are measured at fair value on a recurring basis. Recurring fair value measurements, are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position a t the end of each reporting period. Fair value measurements are categorized bas ed on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets ; Level 2 inputs are signifi cant other observable inputs; Level 3 inputs are signifi cant unobservable inputs. Inv estment fair value measurements at June 30, 2023 are described below.
Minimum
Inv estment Type Amount Legal Rating AAA AA A BBB Unrated U.S. Treasury 58,816,619 $ N/A - $ 58,816,619$ -$ -$ -$ U.S. Agency Securities 15,113,278 N/A - 15,113,278 - - - LAIF 64,580,933 N/A - . - - 64,580,933 Municipal Obligations 925,690 A - 925,690 - - - Negotiable CD 2,127,586 N/A - - - - 2,127,586 Medium Term Notes 9,519,917 A 997,054 644,778 7,878,085 - - Money Market Mutual Funds 29,676 AAA 29,676 - - - - Held by Bond Trustees:
Money Market Mutual Funds 4,126,577 AAA 4,126,577 - - - - Total 155,240,276$ 5,153,307$ 75,500,365$ 7,878,085$ -$ 66,708,519$ 44
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
2) CASH AND INVESTMENTS - Continued
Investments categorized as Level 2 are valued based on matrix p ricing which use observable market inputs such as yield curves and market indices that are derived princi pally from or corroborated by observable market data by correlation to other means.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Invest ment Fund (LAIF) that is regulated by the California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based on the City’s pro-rata share of the fair value provided by LAIF fo r the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF is not rated.
3) INTERFUND RECEIVALBES, PAYABLES AND TRANSFERS
The following represents the composition of interfund balances as of June 30, 2023:
Due To / From Other Funds
The Other Governmental Funds borrowed $1,178,015 from Other Gov ernmental Funds as a result of routine, short-term interfund borrowing to eliminating temporary deficit cash balances.
Due to City of Hemet
The Fiduciary Funds borrowed $923,823 from the General Fund as a result of short-term borrowing to eliminate temporary deficit cash balances caused from fiduciary activitie s. These will be repaid when receivables are collected and restricted funds become available to repay.
Interfund Transfers
During the year, interfund transfers were made for purposes of financing administrative costs and capital improvements. Specifically, the following transfers were made:
Not subject to
Investment Type Total Level 1 Level 2 Measurement
U.S. Treasury 58,816,619 $ 58,816,619 $ - $ - $ U.S. Agency Securities 15,113,278 - 15,113,278 - LAIF 64,580,933 - - 64,580,933 Municipal Obligations 925,690 - 925,690 - Negotiable CD 2,127,586 - 2,127,586 - Medium Term Notes 9,519,917 - 9,519,917 - Money Market Mutual Funds 29,676 - - 29,676 Held by Bond Trustees: -
Money Market Mutual Funds 4,126,577 - - 4,126,577 Total 155,240,276 $ 58,816,619 $ 27,686,471 $ 68,737,186 $ Measurement Input
45
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
3) INTERFUND RECEIVALBES, PAYABLES AND TRAN SFERS - Continued
The Water Enterprise Fund transferred $151,205 to the General Fund to cover the cost of water for parks within the city limits.
4) NOTES RECEIVABLE
The City administers various r esidential rehabilitation and down payment assistance loan programs for low and moderate income families. In addition, the City has loaned monies to developers for affordable housing projects and entered into owner participation agreements. The loans have different stated interest rates, payback periods and may be forgivable assuming all conditions are met. These notes are long-term in nature and are recorded as notes receivable in the governmental funds balance sheet. At June 30, 2023 the outstanding balance of notes receivable totaled $7,694,000. The balance on the loans that will be forgiven by the City, assuming all requirements are met was $5,773,137, and is considered uncollectible. The balance of loans receivable is recorded net of the uncollectible amount in the Statement of Net Position and the Governmental Funds Balance Sheet.
Nonmajor
General Governmental
TRANSFERS OUT Fund Funds Total
General Fund - $ 20,000$ 20,000 $ Water Enterprise Fund 151,205 - 151,205 151,205$ 20,000$ 171,205$
TRANSFERS IN
46
15.B
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2023
5) CHANGES IN CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2023 is as follows:
Beginning Ending
Governmental Activities: Balance Additions Deletions Transfers Balance Capital Assets, Not Being Depreciated:
Land and Improvements 12,348,575$ -$ -$ -$ 12,348,575$ Rights of Way 190,468,181 - - - 190,468,181 Construction in Progress 5,510,936 8,489,947 - (9,058,297) 4,942,586 Total Capital Assets, Not
Being Depreciated 208,327,692 8,489,947 - (9,058,297) 207,759,342 Capital Assets Being Depreciated:
Building and Improvements 29,731,313 - (311,348) - 29,419,965 Building and Improvements - ISF 75,899 - - - 75,899 Machinery and Equipment 41,304,332 3,226,144 (5,715,230) 156,713 38,971,959 Machinery and Equipment - ISF 5,611,365 438,894 (1,488,983) - 4,561,276 Software Subscription Assets - 880,173 - - 880,173 Infrastructure
Pavement 148,448,192 - (6,181,122) 5,429,495 147,696,565 Medians 163,384 - - - 163,384 Sidewalks 19,406,483 - (23,029) 1,787,383 21,170,837 Curb and Gutter 17,181,694 - (150,215) 689,350 17,720,829 Traffic Signal 7,343,494 - - - 7,343,494 Street Lights 4,064,223 - - 995,356 5,059,579 Bridges 5,661,474 - - - 5,661,474 Storm Drain/Retention Basins 11,588,613 - - - 11,588,613 Total Capital Assets Being
Depreciated 290,580,466 4,545,211 (13,869,927) 9,058,297 290,314,047 Less Accumulated Depreciation:
Building and Improvements (16,166,964) (657,418) 311,348 - (16,513,034) Building and Improvements - ISF (74,360) (857) - - (75,217) Machinery and Equipment (35,160,207) (1,514,942) 5,715,230 (30,959,919) Machinery and Equipment - ISF (4,939,903) (100,715) 1,488,983 (3,551,635) Software Subscription Assets - (297,038) - - (297,038) Infrastructure
Pavement (115,694,909) (3,828,442) 6,181,122 - (113,342,229) Medians (89,859) - - - (89,859) Sidewalks (5,729,060) (280,957) 23,029 - (5,986,988) Curb and Gutter (5,215,101) (300,781) 150,215 - (5,365,667) Traffic Signal (5,157,148) (183,026) - - (5,340,174) Street Lights (3,271,884) (169,709) - - (3,441,593) Bridges (1,404,264) (75,486) - - (1,479,750) Storm Drain/Retention Basins (3,253,627) (169,676) - - (3,423,303) Total Accumulated Depreciation (196,157,286) (7,579,047) 13,869,927 - (189,866,406) Total Capital Assets Being
Depreciated, Net 94,423,180 (3,033,836)
- 9,058,297 100,447,641
Total Capital Assets, Net 302,750,872$ 5,456,111$ -$ -$ 308,206,983$ 47