16.A.
Capital
Projects Other Total
Bridges/Streets Governmental Governmental
Traffic Facilities Funds Funds
-$ 2,800,611$ 53,494,597$
- - 5,502,913 865,966 8,612,808 24,783,472
1,179,148 9,582,605 19,617,378
- - 172,327 327,696 1,801,072 7,474,203
- 199,640 534,860
2,372,810 22,996,736 111,579,750
- 77,263 2,498,113
- 1,023,420 57,845,613
- 717,401 6,406,967
564,994 5,471,539 6,036,533
- - 2,989,713 - - 1,370,769 - 133,160 1,943,961
- 8,218,587 14,734,812
564,994 15,641,370 93,826,481
1,807,816 7,355,366 17,753,269
- - 352,925 - 885,700 885,700
- - (2,190,638) - 885,700 (952,013)
1,807,816 8,241,066 16,801,256
6,813,714 52,044,170 147,387,283
- 68,518 -
6,813,714 52,112,688 147,387,283
8,621,530$ 60,353,754$ 164,188,539$
The accompanying notes are an integral part of this statement. 25
16.A.
Net Change in Fund Balances - Total Governmental Funds 16,801,256$ 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 13,964,659
Depreciation Expense (7,353,123)
Loss on Disposal (62,818)
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 207,996
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 (151,234)
Net Change in Net Pension Liability (397,242)
Net Change in Net OPEB Liability 7,346,650
Net Change in Software Subscription Liability 283,821
Net Change in Deferred Outflows Pension Related Amounts (3,910,535) Net Change in Deferred Inflows Pension Related Amounts 267,947 Net Change in Deferred Outflows OPEB Related Amounts (1,521,585) Net Change in Deferred Inflows OPEB Related Amounts 876,432 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. (4,322,809) Change in Net Position of Governmental Activities 22,029,415$ 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, 2024
The accompanying notes are an integral part of this statement. 26
16.A.
Business-type Governmental
Activities Activities
Water Enterprise Internal Service
Fund Funds
ASSETS
Current Assets:
Cash and Investments 39,560,602$ 10,971,556$
Receivables:
Accounts 1,920,266 230,802
Due from Other Governmental Agencies 131,978 - Prepaid Assets 5,399 391,980
Inventories - 138,850
Total Current Assets 41,618,245 11,733,188
Noncurrent Assets:
Land 32,975 -
Construction in Progress - -
Capital Assets 33,148,082 4,412,107
Less: Accumulated Depreciation (30,916,132) (3,520,790) Total Noncurrent Assets 2,264,925 891,317
Total Assets 43,883,170 12,624,505
DEFERRED OUTFLOWS
Deferred Outflows Related to OPEB 138,792 - Deferred Outflows Related to Pensions 1,383,827 - Total Deferred Outflows of Resources 1,522,619 -
LIABILITIES
Current Liabilities:
Accounts Payable 721,345 646,549
Accrued Salaries and Benefits 50,043 39,528 Accrued Liabilities 5,399 -
Deposits 1,500,926 -
Unearned Revenue - 88,101
Due to Other Funds - -
Compensated Absences Payable - Current Portion 39,252 - Claims and Judgments Payable - Current Portion - 2,861,592 Settlement Liability - Current Portion 268,600 - Total Current Liabilities 2,585,565 3,635,770 Noncurrent Liabilities:
Compensated Absences Payable 228,196 -
Claims Payable - 6,655,549
Settlement Liability 2,820,300 -
Net OPEB Liability 2,481,596
-
Net Pension Liability 5,487,788 -
Total Noncurrent Liabilities 11,017,880 6,655,549 Total Liabilities 13,603,445 10,291,319
DEFERRED INFLOWS
Deferred Inflows Related to OPEB 171,926 - Deferred Inflows Related to Pensions 158,350 - Total Deferred Inflows of Resources 330,276 -
NET POSITION
Net Investment in Capital Assets 2,264,925 891,317 Unrestricted 29,207,143 1,441,869
Total Net Position 31,472,068$ 2,333,186$
City of Hemet
Statement of Net Position
Proprietary Funds
June 30, 2024
The accompanying notes are an integral part of this statement. 27
16.A.
Business-type Governmental
Activities Activities
Water Enterprise Internal Service
Fund Funds
OPERATING REVENUES
Charges for Sales and Services 14,330,278 $ 16,025,005 $ Miscellaneous 49,956 319,317
Total Operating Revenues 14,380,234 16,344,322
OPERATING EXPENSES
Personnel Services 3,172,052 2,429,728
Parts and Supplies 215,749 390,318
Maintenance 3,085,472 1,665,402
Utilities 489,853 1,010,027
Water Purchases 555,012 -
Contracts, Rents and Leases 823,999 613,943 Insurance 244,600 9,420,872
Claims and Judgments - 6,289,071 Enterprise Assessments 2,937,500 -
Depreciation 333,956 152,708
Total Operating Expenses 11,858,193 21,972,069
Operating Income (Loss) 2,522,041 (5,627,747)
NONOPERATING REVENUES (EXPENSES)
Loss on Disposal - -
Investment Income 1,473,662 -
Intergovernmental Revenues - -
Total Nonoperating Revenues (Expenses) 1,473,662 - Income (Loss) Before Transfers and
Capital Contributions 3,995,703 (5,627,747)
Transfers In - 1,304,938
Transfers Out - -
Change in Net Position 3,995,703 (4,322,809)
Total Net Position, Beginning 27,476,365 6,655,995 Total Net Position, Ending 31,472,068 $ 2,333,186 $ City of Hemet
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2024
The accompanying notes are an integral part of this statement. 28
16.A.
Business-type Governmental
Activities Activities -
Water Internal
Enterprise Fund Service
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users 14,204,078 $ - $ Cash Received from User Departments - 16,201,974 Cash Paid to Suppliers for Goods and Services (8,144,583) (12,714,613) Cash Paid to Employees for Services (3,503,194) (2,406,162) Cash Payments for Insurance and Claims - (1,172,477) Net Cash Provided (Used) by Operating Activities 2,556,301 (91,278)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Principal Paid Towards Settlement Liability (268,600) - Cash Received From Other Funds - 1,439,405 Cash Paid to Other Funds - (134,366) Net Cash Provided (Used) by Noncapital
Financing Activities (268,600) 1,305,039
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets - (33,702) Net Cash Provided (Used) by Capital and
Related Financing Activities - (33,702)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income Received 1,473,662 -
Net Cash Provided (Used) by Investing Activities 1,473,662 - Net Increase (Decrease) in Cash and Cash Equivalents 3,761,363 1,180,059 Cash and Cash Equivalents - Beginning of the Year 35,799,239 9,791,497 Cash and Cash Equivalents - End of the Year 39,560,602 $ 10,971,556 $ Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Operating Income (Loss) 2,522,041$ (5,627,747) $ Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Depreciation 333,956 152,708
(Increase) Decrease in Accounts Receivable (135,793) (230,348) (Increase) Decrease in Inventories - 30,260 (Increase) Decrease in Prepaids - 150,729 (Increase) Decrease in Due from Other Governments (53,332) - (Increase) Decrease in Deferred Outflows - Pensions 343,190 - (Increase) Decrease in Deferred Outflows - OPEB 105,778 - Increase (Decrease) in Accounts Payable 207,602 204,960 Increase (Decrease) in Accrued Salaries and Benefits 23,889 23,566 Increase (Decrease) in Unearned Revenues - 88,000 Increase (Decrease) in Claims Payable - 5,116,594 Increase (Decrease) in Deposits Payable 12,969 -
Increase (Decrease) in Compensated Absences Payable 21,813 - Increase (Decrease) in Deferred Inflows - Pensions (36,508) - Increase (Decrease) in Deferred Inflows - OPEB (60,928) - Increase (Decrease) in Net Pension Liability (217,646) - Increase (Decrease) in Net OPEB Liability (510,730) -
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,556,301$ (91,278) $ City of Hemet
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2024
The accompanying notes are an integral part of this statement. 29
16.A.
Successor Agency
OPEB Trust Custodial Private-purpose
Fund Funds Trust Fund
ASSETS
Cash and Investments -$ 148,446$ 620,558$ Investments:
Balanced HighMark PLUS 3,102,030 - - Receivables:
Accounts - 12,308 - Notes - - 168,309 Land Held for Resale - - 2,208,773 Restricted Assets:
Cash and Investments with Fiscal Agents - 1,163,994 - Total Assets 3,102,030 1,324,748 2,997,640
LIABILITIES
Accounts Payable - 163,729 - Accrued Liabilities - - 7,497 Deposits Payable - - - Interest Payable - - 121,515 Due to City of Hemet - 911,413 - Bonds Payable - - 6,508,745 Total Liabilities - 1,075,142 6,637,757
NET POSITION
Held in Trust for Successor Agency - - (3,640,117) Restricted for OPEB 3,102,030 - - Held for the Benefit of Other Organizations,
Individuals, and Governments - 249,606 - Total Net Position 3,102,030$ 249,606$ (3,640,117)$ City of Hemet
Statement of Net Position
Fiduciary Funds
June 30, 2024
The accompanying notes are an integral part of this statement. 30
16.A.
Successor
Agency
OPEB Trust Custodial Private-purpose
Fund Funds Trust Fund
ADDITIONS
Contributions:
Taxes and Assessments Collected for Others - $ 2,385,291$ 972,405$ Developer Contributions - 75,876 - Employer Contributions 240,300 - - Investment Earnings:
Investment Income 357,500 52,005 2,639 Total Additions 597,800 2,513,172 975,044
DEDUCTIONS
Administrative Costs 15,800 - 128,085 Interest on Bonds - - 194,770 Payments on behalf of Others - 918,552 - Payments to Other Agencies for Charges Collected - 2,323,192 - Total Deductions 15,800 3,241,744 322,855 Change in Net Position 582,000 (728,572) 652,189 Net Position - Beginning of Year 2,520,030 978,178 (4,292,306) Net Position - End of Year 3,102,030$ 249,606$ (3,640,117)$ City of Hemet
Statement of Changes in Net Position
Fiduciary Funds
Year Ended June 30, 2024
The accompanying notes are an integral part of this statement. 31
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Hemet, California was incorporated in 1910 as a general 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 standard setting body for establishing 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 purposes, 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 majority 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 organization is fisca lly 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 appoint ed 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 separate from the City, it has been “blended” as though it is part of the City because the component unit’s governing 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
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B) 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 for 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 expe nses, as appropriate. Fund accounting segregates funds according to their intended purpose and is use d 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 present 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, deferred outflows of sources, liabilities, and deferred inflows of sources, including capi tal 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 assets 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 long-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 government. 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
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
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 the current period. For this purpose, the City considers revenues to be available if they are collect ed 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 expenditures 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 susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally co llected within the availability period. Other revenue items are considered to be measurable and available 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 or noncurrent) associated with their activity are included on their balance sheets.
Proprietary fund type operating statements present increases (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 liabil ity 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 private-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. 34
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C) 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 associated 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.
Public Safety Grants Special Revenue Fund – This fund accounts for various public safety grant revenues restricted for public safety..
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 t he 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.
D) 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
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
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 pro prietary funds’ share of the cash and investment pool of the City of Hemet.
E) 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.
F) 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.
G) 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 portion o f interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government- wide financial statements as "internal balances."
Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
H) Forgivable Notes
Certain loans have been made by the City to third parties in order 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
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACC OUNTING POLICIES - Continued
I) 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 Projects 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.
J) Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $10,000 and 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 histor ical 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 component 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
K) 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
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
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.
L) 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.
M) 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 pa yments (including refunds of employee contributions) are recognized when due and payable in accordanc e with benefit terms. Investments are reported at fair value.
N) 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 OPEB expense, generally accepted accounting principles require that the reported results must pertain to liability and asset informatio n within certain defined timeframes. For this report, the following timeframes are used: June 30, 2023 Valua tion Date; June 30, 2024 Measurement Date; and July 1, 2023 through June 30, 2024 Measurement Period.
O) 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 statement element represents consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has certain items that qualify for reporting in this category: deferred outflows relating to the City’s net pension and OPEB liabilities.
38
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
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 reporting 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.
P) 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.
Q) Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from 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 net 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.
R) Fund Balances
Fund balances in governmental funds are reported in classifications 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 committed, assigned, and unassigned fund balance).
In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow 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 sam e purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
39
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
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 emergency/fiscal emergency contingencies, as set by ordinance. Emergencies shall mean the actual or thre atened conditions of disaster or of extreme peril to the safety of persons and property 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 combat. 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
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACC OUNTING POLICIES - Continued
S) 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”.
T) 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 167,727,143$ 39,560,602 $ 3,871,034 $ 211,158,779$ Restricted Cash and Investments 593,558 - 1,163,994 1,757,552 Total Cash and Investments 168,320,701$ 39,560,602$ 5,035,028$ 212,916,331$ Government-wide
Statement of Net Position
41
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
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 debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
*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 or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, and concentration of credit risk.
Cash on Hand 8,250$
Deposits with Financial Institutions 37,020,935
Investments 175,887,146
Total Cash and Investments 212,916,331$
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
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
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:
12 Months 13 to 36 37 to 60
Inv estment Type Total Or Less Months Months
U.S. Treasury 71,774,119 $ 1,810,814 $ 35,621,949$ 34,341,356$ U.S. Agency Securities 5,317,862 1,928,516 2,818,023 571,323 LAIF 52,713,347 52,713,347 - - California CLASS 15,299,938 15,299,938 - - CalTRUST 15,254,883 15,254,883 - - Municipal Obligations 954,440 - 954,440 - Negotiable CD 1,228,027 985,274 242,753 - Medium Term Notes 7,341,500 1,968,321 3,986,496 1,386,683 Money Market Mutual Funds 1,143,448 1,143,448 - - Held by Fiscal Agent:
Money Market Mutual Funds 4,859,582 4,859,582 - - Total 175,887,146$ 95,964,123$ 43,623,661$ 36,299,362$ Remaining Maturity (in Months)
43
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
2) CASH AND INVESTMENTS - Continued
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.
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 transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment poli cy 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 the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2024, 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 bond 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 agreement, acquires the investment, and holds the investment on behalf of the reporting government.
Minimum
Investment Type Amount Legal Rating AAA AA A Unrated
U.S. Treasury 71,774,119 $ N/A - $ 71,774,119$ - $ - $ U.S. Agency Securities 5,317,862 N/A - 5,317,862 - - LAIF 52,713,347 N/A - . - 52,713,347 California CLASS 15,299,938 N/A - . - 15,299,938 CalTRUST 15,254,883 N/A - . - 15,254,883 Municipal Obligations 954,440 A - 954,440 - - Negotiable CD 1,228,027 N/A - - - 1,228,027 Medium Term Notes 7,341,500 A - 658,065 6,683,435 - Money Market Mutual Funds 1,143,448 AAA 1,143,448 - - - Held by Bond Trustees:
Money Market Mutual Funds 4,859,582 AAA 4,859,582 - - - Total 175,887,146$ 6,003,030$ 78,704,486$ 6,683,435$ 84,496,195$ 44
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
2) CASH AND INVESTMENTS - Continued
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, 2024 are described below.
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 principally 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 for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF is not rated.
Investment in CalTRUST
CalTRUST is a Joint Powers Authority created by local public agencies to provide a convenient method for local public agencies to pool their assets for investment purposes. CalTRUST is governed by a Board of Trustees made up of experienced local agency treasurers and investment officers. The Board sets overall policies for the program and selects and supervises the activities of the invest ment manager and other agents. CalTRUST maintains and administers four pooled accounts within the program: Money Market, Short-term, Medium-term and Long-term. The Money Market account permits daily transactions, with same-day liquidity (provided redemption requests are received by 1:00 p.m. Pacific time), with no limit on the amount of funds that may be invested. The Not subject to
Investment Type Total Level 1 Level 2 Measurement
U.S. Treasury 71,774,119 $ 71,774,119 $ - $ -$ U.S. Agency Securities 5,317,862 - 5,317,862 - LAIF 52,713,347 - - 52,713,347 California CLASS 15,299,938 - - 15,299,938 CalTRUST 15,254,883 - - 15,254,883 Municipal Obligations 954,440 - 954,440 - Negotiable CD 1,228,027 - 1,228,027 - Medium Term Notes 7,341,500 - 7,341,500 - Money Market Mutual Funds 1,143,448 - - 1,143,448 Held by Bond Trustees: -
Money Market Mutual Funds 4,859,582 - - 4,859,582 Total 175,887,146$ 71,774,119$ 14,841,829$ 89,271,198$ Measurement Input
45
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
2) CASH AND INVESTMENTS - Continued
Short-term account permits an unlimited number of transactions per month (with prior day notice), with no limit on the amount of funds that may be invested. The Medium- and Long-term accounts permit investments, withdrawals and transfers once per month, with five days advance notice. All CalTRUST accounts comply with the limits and restrictions placed on local agen cy investments by the Californ ia Government Code. CalTRUST imposes a $250,000 minimum investment; however, there is no maximum limit.
The fair value of the City’s investment in this pool is reported at amounts based upon the City’s percentage interest of the fair value provided by CalTRUST (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by CalTRUST.
Investment in California CLASS
The California Cooperative Liquid Assets Securities System (California CLASS) is a joint exercise of powers entity authorized under Section 6509.7, California Government Code. California CLASS is a pooled investment option that was created via a joint exercise of powers agreement by and among California public agencies. California CLASS provides California public agencies with a convenient method for investing in high-quality, short- to medium-term securities carefully selected to optimize interest earnings while prioritizing safety and liquidity. The California CLASS Prime and Enhanced Cash funds offer public agencies the opportunity to strengthen and diversify their cash management programs in accordance with the safety, liquidity, and yield hierarchy that governs the investment of public funds.
The fair value of the City’s investment in this pool is reported at amounts based upon the City’s percentage interest of the fair value provided by California CLASS (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by California CLASS.
3) INTERFUND RECEIVALBES, PAYABLES AND TRANSFERS
The following represents the composition of interfund balances as of June 30, 2024:
Due To / From Other Funds
The Other Governmental Funds borrowed $354,137 from Other Governmental Funds as a result of routine, short- term interfund borrowing to eliminating temporary deficit cash balances. In addition, t he Other Governmental Funds and Public Safety Grants Fund borrowed $386,780 and $1,447,732, respectively, from the General Fund as a result of routine, short-term interfund borrowings. These deficits will be eliminated when revenues are recognized.
Due to City of Hemet
The Fiduciary Funds borrowed $445,002 and $466,411 from the General Fund as a result of short-term borrowing to eliminate temporary deficit c ash balances caused from fiduciary activities. 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:
46
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
3) INTERFUND RECEIVALBES, PAYABLES AND TRAN SFERS - Continued
The General Fund transferred $885,700 to the Other Governmental Funds for project costs and $1,304,938 to contribute additional funding for the General Liability Insurance fund.
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, 2024 the outstanding balance of notes receivable totaled $7,626,810. The balance on the loans that w ill be forgiven by the City, assuming all requirements are met was $5,871,480, and is considered uncollec tible. The balance of loans receivable is recorded net of the uncollectible amount in the Statement of Net Position and the Governmental Funds Balance Sheet.
Other Internal
Governmental Service
TRANSFERS OUT Funds Funds Total
General Fund 885,700 $ 1,304,938 $ 2,190,638 $
885,700$ 1,304,938$ 2,190,638$
TRANSFERS IN
47
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
5) CHANGES IN CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2024 is as follows:
Beginning Ending
Governmental Activities: Balance Additions Deletions Transfers Balance Capital Assets, Not Being Depreciated:
Land and Improvements 12,348,575$ 2,686,556$ -$ -$ 15,035,131$ Rights of Way 190,468,181 - - - 190,468,181 Construction in Progress 4,942,586 8,974,796 - (4,327,387) 9,589,995 Total Capital Assets, Not
Being Depreciated 207,759,342 11,661,352 - (4,327,387) 215,093,307 Capital Assets Being Depreciated:
Building and Improvements 29,419,965 - - - 29,419,965 Building and Improvements - ISF 75,899 - - - 75,899 Machinery and Equipment 38,971,959 2,303,307 (1,296,242) 1,319,637 41,298,661 Machinery and Equipment - ISF 4,561,276 33,702 (258,770) - 4,336,208 Software Subscription Assets 880,173 - - - 880,173 Infrastructure
Pavement 147,696,565 - (1,074,023) 1,855,701 148,478,243 Medians 163,384 - - - 163,384 Sidewalks 21,170,837 - (852) 86,503 21,256,488 Curb and Gutter 17,720,829 - - 38,413 17,759,242 Traffic Signal 7,343,494 - - 1,027,133 8,370,627 Street Lights 5,059,579 - - - 5,059,579 Bridges 5,661,474 - - - 5,661,474 S
torm Drain/Retention Basins 11,588,613 - - - 11,588,613 Total Capital Assets Being
Depreciated 290,314,047 2,337,009 (2,629,887) 4,327,387 294,348,556 Less Accumulated Depreciation:
Building and Improvements (16,513,034) (679,898) - - (17,192,932) Building and Improvements - ISF (75,217) (682) - - (75,899) Machinery and Equipment (30,959,919) (1,867,124) 1,233,424 (31,593,619) Machinery and Equipment - ISF (3,551,635) (152,026) 258,770 (3,444,891) Software Subscription Assets (297,038) (293,390) - - (590,428) Infrastructure
Pavement (113,342,229) (3,352,867) 1,074,023 - (115,621,073) Medians (89,859) (10,892) - - (100,751) Sidewalks (5,986,988) (283,222) 852 - (6,269,358) Curb and Gutter (5,365,667) (236,534) - - (5,602,201) Traffic Signal (5,340,174) (196,239) - - (5,536,413) Street Lights (3,441,593) (187,795) - - (3,629,388) Bridges (1,479,750) (75,486) - - (1,555,236) Storm Drain/Retention Basins (3,423,303) (169,676) - - (3,592,979) Total Accumulated Depreciation (189,866,406) (7,505,831) 2,567,069 - (194,805,168) Total Capital Assets Being
Depreciated, Net 100,447,641 (5,168,822)
(62,818) 4,327,387 99,543,388
Total Capital Assets, Net 308,206,983$ 6,492,530$ (62,818)$ -$ 314,636,695$ 48
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
5) CHANGES IN CAPIT AL ASSETS - Continued
Depreciation expense was charged to functions/programs of the primary government as follows:
Depreciation expense was charged to functions/programs of the primary government as follows:
General Government 893,269$
Public Safety 1,610,837
Public Works 4,536,845
Libraries 312,172
Internal Service 152,708
Total Depreciation Expense 7,505,831$
Beginning Ending
Busine ss-type Activitie s: Balance Additions Deletions Transfers Balance Capital Assets, Not Being Depreciated:
Land 32,975$ -$ -$ -$ 32,975$ Total Capital Assets, Not
Being Depreciated 32,975 - - - 32,975 Capital Assets Being Depreciated:
Buildings and Improvements 29,624,091 - - - 29,624,091 Machinery and Equipment 3,716,459 - (96,234) - 3,620,225 Total Capital Assets Being
Depreciated 33,340,550 - (96,234) - 33,244,316 Less Accumulated Depreciation:
Buildings and Improvements (27,101,896) (290,435) - - (27,392,331) Machinery and Equipment (3,672,748) (43,521) 96,234 - (3,620,035) Total Accumulated Depreciation (30,774,644) (333,956) 96,234 - (31,012,366) Total Capital Assets Being
Depreciated, Net 2,565,906 (333,956) - - 2,231,950 Total Capital Assets, Net 2,598,881$ (333,956)$ -$ -$ 2,264,925$ Business-type Activities
Water 333,956 $
Total Depreciation Expense 333,956$
49
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
6) LONG-TERM LIABILITIES
Changes in long-term liabilities for governmental activities and business-type activities are as follows:
The compensated absences, net pens ion and OPEB liabilities in t he governmental activities are generally liquidated by the General Fund, while the net pension and OPEB liabilities in the business-type activities are liquidated by the Water Enterprise Fund.
Fiduciary Fund
Changes in long-term liabilities for Fiduciary Funds for the year ended June 30, 2024 is as follows:
Settlement Liability
In February 2012, the City entered into a settlement agreement with the Soboba Band of Luiseño Indians (the “Tribe”) over a dispute about water rights. The settlement agreement includes the City of Hemet, City of San Jacinto, Eastern Municipal Water District and Lake Hemet Municipal Water District. The City of Hemet’s total settlement obligation per the agreement was $7,252,000. The agreement does not require interest payments.
Principal is due semi-annually on January 1 and July 1 of each year. Annual payments total $268,600. The balance on the settlement liability at June 30, 2024 was $3,088,900. The required payments on the settlement liability are as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities:
Compensated Absences, Net 3,377,953$ 151,234$ -$ 3,529,187$ 893,177$ Claims Payable 4,400,547 8,466,576 (3,349,982) 9,517,141 2,861,592 Software Subscription Liability 434,618 - ( 283,821) 150,797 150,797 Net OPEB Liability 43,043,460 - (7, 346,650) 35,696,810 - Net Pension Liability 113,922,927 397,242 - 114,320,169 - Total 165,179,505$ 9,015,052$ (10,980,453)$ 163,214,104$ 3,905,566$ Busine ss-type Activitie s:
Compensated Absences, Net 245,635$ 21,813$ -$ 267,448$ 39,252$ Settlement Liability 3,357,500 - ( 268,600) 3,088,900 268,600 Net OPEB Liability 2,992,326 - ( 510,730) 2,481,596 - Net Pension Liability 5,705,434 - ( 217,646) 5,487,788 - Total 12,300,895$ 21,813$ (996,976)$ 11,325,732$ 307,852$ Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Tax Allocation Bonds:
Series 2014, Refunding 6,810,000$ -$ ( 635,000)$ 6,175,000$ 670,000$ Premium 379,944 - (46,199) 333,745 - Total 7,189,944$ -$ ( 681,199)$ 6,508,745$ 670,000$ 50
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
6) LONG-TERM LIABILITIES - Continued
Software Subscription Liability
The City of Hemet has entered into subscription-based information technology arrangement (SBITA) with vendors for various City software systems. The systems are discounted at a rate of 3%. For the year ended June 30, 2024, the City reported a SBITA liability in the amount of $150,797. For the year ended June 30, 2024, there was a principal reduction of $313,821. As of June 30, 2024, the net SBITA right-to-use intangible asset was reported in the amount of $583,135. The future payments on the SBITA liability are as follows:
2014 Tax Allocation Refunding Bonds
In December 2014, the Riverside County Public Financing Authori ty issued $11,110,000 Riverside County Public Financing Authority 2014 Tax Allocation Revenue Bonds (Hemet Refunding Project) to 1) refund the Successor Agency Subordinate Tax Allocation Bonds, 1999 Series A and Tax Allocation Bonds, 2002 Series A, 2) to satisfy the reserve requirement and 3) to pay cost of issuance. Interest ranges from 3.00% to 5.00% is payable semiannually on March 1 and September 1 of each year, commencing March 1, 2015. Principal is due in annual installments of $580,000 to $870,000 through September 1, 2031. The outstanding balance at June 30, 2024 was $6,175,000. The debt service to maturity is as follows:
Fiscal Year Ending
June 30, Principal Interest Total
2025 268,600$ -$ 268,600$
2026 268,600 - 268,600
2027 268,600 - 268,600
2028 268,600 - 268,600
2029 268,600 - 268,600
2030 268,600 - 268,600
2031 268,600 - 268,600
2032 268,600 - 268,600
2033 268,600 - 268,600
2034 268,600 - 268,600
2035 268,600 - 268,600
2036 134,300 - 134,300
Totals 3,088,900$ -$ 3,088,900$
Fiscal Year Ending
June 30, Principal Interest Total
2025 150,797$ 13,983 $ 164,780 $
Totals 150,797$ 13,983 $ 164,780 $
51
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
6) LONG-TERM LIABILITIES - Continued
Non-Commitment Debt
CFD No. 1999-1 Special Tax Refunding Bonds, Series 2006 (Heartland Project)
In July 2006, the City of Hemet authorized and provided for the issuance of special tax bonds for the Community Facilities District No. 1999-1. Proceeds of these bonds are held by a fiscal agent and are being used to defease and refund the 1999-1 Heartland CFD Series 2001A and Series 200 2B bonds. The original issues were used to finance off-site improvements of a 1,417 home community with an 18-hole golf course. This bond issue is not a legal obligation of the City as the City is only acting as an agent for the property owners in collecting the assessments. Neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds. Therefore, these bonds are not reported as a liability i n the financial statements of the City. The outstanding balance on these bonds at June 30, 2024 is $4,855,000.
7) RISK MANAGEMENT AND SELF-INSURANCE PROGRAMS
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. T he City participates in municipal agency risk pools for their property, workers’ compensation and excess liability coverage.
The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The Authority arranges and admini sters programs for the pooling of self- insured losses, purchases excess insurance and reinsurance, and arranges for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Authority’s Board of Directors. The Board operates through a nine-member Executive Committee.
Fiscal Year Ending
June 30, Principal Interest Total
2025 670,000$ 208,344 $ 878,344 $
2026 700,000 174,094 874,094
2027 735,000 145,569 880,569
2028 765,000 122,591 887,591
2029 780,000 97,962 877,962
2030 815,000 72,044 887,044
2031 840,000 44,655 884,655
2032 870,000 15,255 885,255
Totals 6,175,000$ 880,514 $ 7,055,514 $
52
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
7) RISK MANAGEMENT AND SELF-INSURANCE PROGRAMS - Continued
Excess Liability Program
Liability coverage includes auto liability, employment practice s liability, public officials’ errors and omissions, bodily injury, personal injury, third party property damage, advertising injury, and employee benefit administration liability. The City has a retained limit of $250 ,000 per occurrence. Beginning January 1, 2024, the City has a retained limit of $1,000,000 per occurrence. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. The cove rage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/.
Excess Workers’ Compensation Program
The City has a retained limit of $250,000 per occurrence for wo rkers’ compensation claims. The Authority’s pooled retention is $1 million per occurrence with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.
Purchased Insurance
The City also participates in the following coverage programs provided by the Authority:
(A) All-Risk Property Protection Program. This insurance protec tion is underwritten by several insurance companies. The City’s property is currently insured according t o a schedule of covered property submitted by the City to the Authority. The total insured value of scheduled City property is $90,190,990. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible. (B) Earthquake and Flood Insurance. This coverage is part of the Property Protection Program. The City has total insured values of Non Participant scheduled for coverage under this program. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. (C) Pollution Legal Liability Insurance Program. The policy cov ers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million. (D) Crime Insurance Program. Formerly called Blanket Fidelity B ond, this policy covers faithful performance, depositor’s forgery, theft of money and securities, and compute r fraud related to the transfer of money. The policy limit is $1,000,000, and the deductible is $2,500. (E) Special Event Tenant User Liability Insurance. This coverage protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on City property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays the insurance broker and/or carrier. The insurance is facilitated by the Authority.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2023-24.
The City operates a self-insurance program for dental, vision, and retiree supplemental medical insurance costs.
The retiree supplemental medical plan, for employees hired prior to July 24, 1990 and who subsequently retire from the City, is only intended to bridge decreases in health c overage benefits as measured between current coverage benefits and the highest level of such benefits as conferred during the employee’s tenure. A separate internal service fund has been established to accumulate reserves and pay expenses of the program.
53
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
7) RISK MANAGEMENT AND SELF-INSURANCE PROGRAMS - Continued
Currently, the various operating funds provide the financial support of these programs. It is, however, hoped that once adequate reserve levels are achieved, the interest earnings will carry the administration costs. Estimated City costs of claims for liability, workers’ compensation, dental, vision, and the retiree supplemental medical have been accrued as Claims and Judgments Payable in the accompanying financials statements.
For the past three years, settled claims have not exceeded the amount of insurance coverage. Liabilities for claims payable including workers’ compensation are typically liquidated by the internal service funds.
8) CITY EMPLOYEES RETIREMENT PLAN
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent mu ltiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement Sys tem (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the plan are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website: www.calpers.ca.gov.
Benefits Provided
The Plans are agent multiple-employer defined benefit pension p lans administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the plan’s June 30, 2022 Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuati on report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website.
The Plans’ provisions that are in effect at June 30, 2024, are summarized as follows:
Claim Payments
Beginning Claims and Other Ending
Balance Incurred Adjustments Balance
2021-2022 Total 2,791,689 $ 1,657,408 $ - $ 4,449,097$ 2022-2023 Total 4,449,097 $ 19,377 $ (67,927) $ 4,400,547 $ Dental - Vision 47,276 8,797 (46,981) 9,092 Workers' Comp 412,198 829,521 (569,201) 672,518 Liability 3,941,073 7,628,258 (2,733,800) 8,835,531 2023-2024 Total 4,400,547$ 8,466,576$ (3,349,982)$ 9,517,141$ 54
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
8) CITY EMPLOYEES RETIREMENT PLAN – Continued
Employees Covered: At June 30, 2024, the following number of employees were covered by the benefit terms for each Plan:
Contributions: Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liab ility. The employer is require d to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer-Paid Member Contributions or situations where members are paying a portion of the employer contribution.
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 52
Monthly benefits, as a % of eligible compensation (1) (1) Required employee contribution rates 8% 8.00%
Required employer contribution rates 12.60% + $2,625,961 12.60% Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 50 2.7% @ 50
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 52
Monthly benefits, as a % of eligible compensation (1) (1) Required employee contribution rates 9% 14.75%
Required employer contribution rates 21.90% + $5,907,720 21.90% (1) - Depending on years of service
Miscellaneous
Safety
Miscellaneous Safety
Inactive employees or beneficiaries
currently receiv ing benfits 317 201
Inactiv e employees entitled to but not yet
receiv ing benefits 241 115
Activ e employees 147 106
55
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
8) CITY EMPLOYEES RETIREMENT PLAN - Continued
Net Pension Liability: The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plans are measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions: The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:
The mortality table used was developed based on CalPERS-specifi c data. The probabilitie s of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post- retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.
Long-term Expected Rate of Return - The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, C alPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent exp ected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows:
All Plans
Valuation date June 30, 2022
Measurement date June 30, 2023
Actuarial cost method entry-age normal
Actuarial assumptions:
Discount rate 6.90%
Inflation 2.30%
Payroll growth (1)
Projected salary increase (1)
Inv estment rate of return 6.90%
Mortality (2)
Post Retirement (3)
(1) Depending on age, service and type of employment
(2) Derived using CalPERS’ Membership Data for all Funds. (3) The lesser contract COLA or 2.3% until Purchasing Power Protection Allowance floor on purchasing power applies,
2.3% thereafter
56
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
8) CITY EMPLOYEES RETIREMENT PLAN - Continued
Discount Rate - The discount rate used to measure the total pension liability f or PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member co ntribution rates and that contr ibutions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was a pplied to all periods of projected benefit payments to determine the total pension liability.
New Strategic
Asset Class Allocation Real Return (1,2)
Global Equity - Cap Weighted 30% 4.54%
Global Equity - Non-Cap Weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021 Asset Liability Management st udy. 57
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
8) CITY EMPLOYEES RETIREMENT PLAN - Continued
Changes in Net Pension Liability
The changes in the Net Pension Liability for the Miscellaneous Plan are as follows:
The changes in the Net Pension Liability for the Safety Plan are as follows:
Pension Plan Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 138,802,709$ 100,766,485$ 38,036,224$ Changes in the year:
Serv ice cost 1,776,915 - 1,776,915 Interest on the total pension liability 9,290,688 - 9,290,688 Changes of benefit terms 188,706 - 188,706 Differences between expected and actual experience (1,558,408 ) - (1,558,408) Contributions from the employer - 4,204,411 (4,204,411) Contributions from employees - 840,732 (840,732) Net inv estment income - 6,177,834 (6,177,834) Benefit payments, including refunds (7,347,665) (7,347,665) - Administrativ e/other expense - (74,099) 74,099 Net changes 2,350,236 3,801,213 (1,450,977) Balance at June 30, 2023 141,152,945$ 104,567,698$ 36,585,247$ Increase (Decrease)
Pension Plan Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 223,734,858$ 142,142,721$ 81,592,137$ Changes in the year:
Serv ice cost 4,161,065 - 4,161,065 Interest on the total pension liability 15,278,425 - 15,278,425 Changes of benefit terms 103,544 - 103,544 Differences between expected and actual experience 1,116,438 - 1,116,438 Contributions from the employer - 8,388,840 (8,388,840) Contributions from employees - 1,832,292 (1,832,292) Net inv estment income - 8,912,292 (8,912,292) Benefit payments, including refunds (11,217,845) (11,217,845) - Administrativ e/other expense - (104,525) 104,525 Net changes 9,441,627 7,811,054 1,630,573 Balance at June 30, 2023 233,176,485$ 149,953,775$ 83,222,710$ Increase (Decrease)
58
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
8) CITY EMPLOYEES RETIREMENT PLAN – Continued
Sensitivity of the Net Pension Liability to Changes in the Disc ount Rate: The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calc ulated using a discount rate that is 1 percentage- point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
Pension Plan Fiduciary Net Position: Detailed information about each pension plan’s fiduciary net p osition is available in the separately issued CalPERS financial reports.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2024, the City recognized pension e xpense of $4,674,789 for the Miscellaneous Plan and $12,649,113 for the Safety Plan. The total pension ex pense for both plans was $17,323,902 for the year ended June 30, 2024. At June 30, 2024, the City reported deferred outflows and deferred inflows for the Miscellaneous Plan from the following sources:
$4,081,965 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:
Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability 55,439,647$ 116,619,623$
Current Discount Rate 6.90% 6.90%
Net Pension Liability 36,585,247$ 83,222,597$
1% Increase 7.90% 7.90%
Net Pension Liability 21,132,541$ 56,148,450$
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 4,081,965$ -$ Differences between actual and expected experience - 1,055,668 Changes in assumptions 388,906 -
Net differences between projected and actual
earnings on plan investments 4,754,645 -
Total 9,225,516$ 1,055,668$
Miscellaneous
59
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
8) CITY EMPLOYEES RETIREMENT PLAN - Continued
At June 30, 2024, the City reported deferred outflows and deferred inflows for the Safety Plan from the following sources:
$9,113,184 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:
Year Ending
June 30,
2025 295,784$
2026 305,831
2027 3,348,907
2028 137,361
2029 -
Thereafter -
Miscellaneous
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 9,113,184$ -$ Differences between actual and expected experience 985,880 67,175 Changes in assumptions 4,011,262 -
Net differences between projected and actual
earnings on plan investments 6,694,733 -
Total 20,805,059$ 67,175$
Safety
Year Ending
June 30,
2025 3,800,727$
2026 2,885,752
2027 4,767,897
2028 170,324
2029 -
Thereafter -
Safety
60
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
9) OTHER POSTEMPLOYMENT BENEFITS (OPEB)
Plan Description
The City of Hemet Retiree Healthcare Plan administers a single-employer defined benefit plan which provides medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements.
Retiree medical health benefits are offered to eligible retiree s through Aetna and Kaiser. Dental and vision benefits are provided by the City and administered by Group Management Services. Eligibility is based on the contract. The City's plan does not issue a publicly available financial report.
Benefits Provided
The substantive plan provisions for the City of Hemet's OPEB Pl an include lifetime retiree health benefits for employees retiring within 120 days of separation and receiving CalPERS benefits. Eligibility varies by hire date, with full City subsidies for employees hired before July 24,1990, partial subsidies for those hired between July 24, 1990, and December 31, 1997, and no subsidies for employees hired after January 1, 1998. Spousal and dependent coverage is allowed under certain conditions, and retirees must contribute the portion of the premium not covered by the City. Medicare integration and supplemental benefits are available, with no City-subsidized Medicare Part B reimbursement o r life insurance except for one retiree. Dental and vision benefits are self- insured, with rates adjusted annually.
Employees Covered by Benefit Terms
At June 30, 2023 (census date), the benefit terms covered the following employees:
Contributions
The obligation of the City to contribute to the plan is established and may be amended by the City Council. For the fiscal year ended June 30, 2024, the City’s average contribution rate was not applicable. The initial contribution of $750,000 was made November 2016. An annual $200,000 contribution began in fiscal year 2018 to the OPEB Trust Account, admin istered by the Public Agency Re tirement Systems (PARS). The City pays benefit payments outside of the trust. Employees are not required to contribute to the plan.
Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2024, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023.
Actuarial Methods and Assumptions
The total OPEB liability in the June 30, 2023 actuarial valuati on was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified.
Retirees or spouses of retirees currently receiving benefits 221 Activ e employees 9
Total 230
61
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
9) OTHER POSTEMPLOYMENT BENEFITS (OPEB) - Continued
Discount Rate
The discount rate used to measure the total OPEB liability was 6.58 percent. The projection of cash flows used to determine the discount rate as sumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments f or current active and inactive employees.
Therefore, the long-term expecte d rate of return on OPEB plan i nvestments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Change in the Net OPEB Liability
Valuation Date June 30, 2023
Actuarial Cost Method Entry Age Normal, Lev el % of Pay Mortality CalPERS Experience Study dated November 2021
Mortality Improvement Fully generational with Scale MP-2020 Health Care Trend Rate 7.4 initial, 4.14% ultimate
Inflation Rate 2.30%
Discount Rate 6.58% at June 2024
5.75% at June 2023
Salary Increases 2.80% annually
Dental/Vision Trend 4.00% annually
Target Allocation
Asset Class PARS-Balance
Domestic Equity 47.0%
International Developed Equity 7.0%
Emerging Markets Equity 4.0%
REIT's 2.0%
Short-term Bonds 6.8%
Core Fixed Income 27.0%
High Yield 1.2%
Cash 5.0%
Total 100.00%
Total OPEB Plan Fiduciary Net OPEB
Liability (TOL) Net Position Liability/(Asset)
Balance at June 30, 2023 48,555,816 $ 2,520,030 $ 46,035,786 $ Changes in the year:
Service cost 91,721 - 91,721 Interest on the total OPEB liab ility 2,689,277 - 2,689,277 Employer contributions - 3,995,310 (3,995,310) Changes of assumptions (6,355,940) - (6,355,940) Actual investment income - 357,500 (357,500) Differences between expected and actual experience 54,572 - 54,572 Administrative Expense - (15,800) 15,800 Benefit payments, including refunds (3,755,010) (3,755,010) - Net changes (7,275,380) 582,000 (7,857,380) Balance at June 30, 2024 41,280,436 $ 3,102,030 $ 38,178,406 $ Increase (Decrease)
62
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
9) OTHER POSTEMPLOYMENT BENEFITS (OPEB) - Continued
Sensitivity of the Net OPEB Li ability to changes in the Discoun t Rate - The following presents the net OPEB liability of the City if it were calculated using a discou nt rate that is 1-perc entage-point lower or 1- percentage-point higher than the current discount rate:
Sensitivity of the Net OPEB Liability to changes in the Healthc are Cost Trend Rates - The following presents the net OPEB liability of the City, as well as what th e City’s Net OPEB would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rate:
OPEB Expense and Recognition of Deferred Outflows/Inflows of Resources Related to OPEB
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.
For the year ended June 30, 2024, the City recognized OPEB expe nse/(credit) of ($3,172,067). The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Amounts reported as deferred outflows and deferred inflows of r esources related to OPEB will be recognized as an OPEB expense as follows:
Discount Rate Valuation Discount Rate
1% Lower Discount Rate 1% Higher
Net OPEB liability (asset) 41,804,374$ 38,178,406 $ 35,066,560 $ Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
Net OPEB liability (asset) 34,768,929$ 38,178,406 $ 42,108,236 $ Deferred Deferred
Outflows Inflows
Changes of Assumptions 2,020,999$ -$
Differences between expected
and actual experience 114,263 2,541,076
Net differences between projected and actual
earnings on plan investments - 103,939 Total 2,135,262$ 2,645,015$
63
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
9) OTHER POSTEMPLOYMENT BENEFITS (OPEB) - Continued
10) FUND BALANCES
The details of the fund balances as of June 30, 2024 are presented below:
11) ENDOWMENTS
The City received an endowment in 2002 for $1,000,000. The prin cipal amount of $1,000,000 is to be held in perpetuity while interest earnings are to be used for the City's library as stated in the resolution accepting the endowment. The endowment activity is accounted for in the permanent fund of the City with the principal amount Year Ending
June 30,
2025 238,608$
2026 (154,630)
2027 (552,504)
2028 (41,227)
2029 -
Thereafter -
Other
General Sewer and Public Safety Bridges/Streets Governmental Fund Storm Drain ARPA Grants Traffic Facilities Funds Total Nonspendable:
Prepaid Items 30,305 $ - $ - $ - $ - $ - $ 30,305$ Prepaid Items - Measure U 1,969,640 - - - - - 1,969,640 Library Endowment - - - - - 1,000,000 1,000,000 Restricted for:
Public Access Channel 1,912,985 - - - - - 1,912,985 Public Safety - - - - - 1,881,650 1,881,650 Street Work - - - - 8,621,530 14,799,479 23,421,009 Lighting and Landscaping - - - - - 8,862,765 8,862,765 Housing and Community Development Grants 281,184 - - - - 7,734,199 8,015,383 Sewer Maintenance - 17,467,320 - - - - 17,467,320 Indian Gaming Capital Projects - - - - - 6,411 6,411 Dev elopment Impact Fees - - - - - 19,507,007 19,507,007 Library Equipment - - - - - 51,398 51,398 General Plan - - - - - 578,901 578,901 Committed:
Projects - - 6,547,779 - - - 6,547,779 Economic Stabilization Reserve 21,873,427 - - - - - 21,873,427 Measure U - Public Safety Personnel
Police 11,346,125 - - - - - 11,346,125 Fire 2,234,525 - - - - - 2,234,525 Measure U - Economic Stabilization Reserve
Police 2,355,467 - - - - - 2,355,467 Fire 974,416 - - - - - 974,416 Assigned:
Equipment Replacement - - - - - 6,317,133 6,317,133 Capital Replacement - - - - - 8,564 8,564 Capital Projects 8,328,282 - - - - - 8,328,282 Unassigned 20,683,905 - - (792,105) - (393,753) 19,498,047 Total Fund Balances 71,990,261$ 17,467,320$ 6,547,779$ (792,105)$ 8,621,530$ 60,353,754$ 164,188,539$ 64
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
11) ENDOWMENTS - Continued
reflected in nonspendable fund balance. In the government-wide financial statements, the principal amount is included in restricted net position as non-expendable. At June 30, 2024, net appreciation on investment of the principal balance amounted to $51,398, and is reported as restr icted net position as expendable. California Senate Bill No. 1329 enacted Uniform Prudent Management of Institutional Funds Act (“UPMIFA’) that governing the ability to spend on the net appreciation of the endowment fund. The City also passed resolution No. 3715 to establish policy on the spending of investment income in that available funds may only be used to supplement normal budgeted City funds appropriated by the City for the operation and maintenance of the library and not to substitute for such funds. Ava ilable funds may be used for a v ariety of library purposes that enhances the functioning of the library after specifically approved on a case by case line-item basis by the City Council in advance of the expenditure.
12) DEFICIT NET POSITIONS AND FUND BALANCES
In the government-wide financial statements, the governmental activities had a deficit unrestricted net position of $29,762,117, caused to some extent by the net pension liability of $114,320,169 and the net OPEB liability of $35,696,810.
Funds with deficit net positions and fund balances at June 30, 2024 are as follows:
The deficit net position for the Successor Agency Private Purpose Trust Fund will be eliminated through continued repayment of debt through property tax revenue received. Local Law Enforcement Block Grant Special Revenue Fund will eliminate the deficit through a transfer from the General Fund Public Safety program. The deficits in the Active Transportation Grant and Miscellaneous Grants Special Re venue funds will be eliminated when future unavailable revenues are recognized. Internal service funds deficits will be eliminated through cost recovery from the respective funds.
13) COMMITMENTS AND CONTINGENCIES
The City has been named as a defendant in certain other claims and litigation matters. In the opinion of City management, the outcome of such litigation is not expected to result in a material adverse effect to the financial condition of the City beyond that accrued in the City’s Self-funded Insurance Fund.
Fiduciary Funds
Successor Agency Priv ate Purpose Trust Fund 3,686,316$ Other Governmental Funds:
Local Law Enforcement Block Grant 90,848$
Active Transportation Grant 649,917
Miscellaneous Grants 141
Internal Service Fund
Liability Insurance 8,977,861$
65
16.A.
City of Hemet
Notes to Financial Statements
Year Ended June 30, 2024
13) COMMITMENTS AND CONTINGENCIES - Continued
The City has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under the terms of the grants, it is believed that any required reimbursements will not be material.
The estimated amount of remaining construction contract obligations at year-end is $9,390,786.
14) CHANGES WITHIN THE FINANCIAL REPORTING ENTITY
During the year, the following changes within the financial rep orting entity occurred as a result of a previously reported nonmajor fund now reported as a major fund due to the quantitative factors:
15) SUBSEQUENT EVENTS
On March 29, 2024 the City received a termination notification effective June 30, 2024 from the insurance carrier, California Joint Power Insurance Authority (CJPIA) that provide liability, workers' com pensation, property and crime insurance due to the City's excessive claims history. Wit h this notification, City staff had to search and secure other insurance coverage. Due to the claims history, finding coverage was extremely challenging because the City was categorized as a high-risk City for liability claims. In the exploration of coverage, the best offer that could be extended came with over a $4.5 million premium and self-insurance rate (SIR) of $2 million for non-safety claims per incident and $6 million for safety claims per incide nt with an overall limit of $25 million. While this change was unforeseen, staff have been working diligently and implementing additional measures to reduce potential exposure and mitigate future catastrophic claims. This is a priority to the City to navigate out of this position in the next few fiscal years.
Newly major
Governmental
Fund Other
Public Safety Governmental
Grants Funds
Net position or fund balances, beginning
of year, as previously reported -$ (68,518)$ Change within the reporting entity (68,518) 68,518 Net position or fund balances, beginning
of year, as restated (68,518)$ -$
Reporting Units Affected by Adjustments to
and Restatements of Beginning Balances
66
16.A.
REQUIRED SUPPLEMENTARY INFORMATION
67
16.A.
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 49,747,700$ 46,645,400$ 50,693,986$ 4,048,586 $ Licenses and Permits 2,848,400 4,974,000 5,502,913 528,913 Intergovernmental Revenue 10,611,000 11,222,994 12,008,625 785,631 Charges for Services 4,050,900 4,353,400 4,297,910 (55,490) Fines and Forfeitures 184,100 159,100 172,327 13,227
Investment Income 400,000 648,500 4,706,329 4,057,829
Miscellaneous 78,700 342,430 335,220 (7,210) Total Revenues 67,920,800 68,345,824 77,717,310 9,371,486
EXPENDITURES
Current:
General Government 2,302,415 2,141,621 2,024,103 117,518 Public Safety 59,934,429 59,109,978 55,020,040 4,089,938 Community Development 6,856,900 7,930,155 5,689,566 2,240,589 Public Works - - - - Parks 1,312,004 1,396,160 1,370,769 25,391 Libraries 1,740,500 1,874,351 1,810,801 63,550 Capital Outlay 4,580,356 1,586,911 1,586,911 - Total Expenditures 76,726,604 74,039,176 67,502,190 6,536,986 Excess (Deficiency) of Revenues
over Expenditures (8,805,804) (5,693,352) 10,215,120 15,908,472
OTHER FINANCING SOURCES (USES)
Software Subscriptions - - 352,925 352,925 Transfers In 300,000 300,000 - (300,000) Transfers Out (20,000) (885,700) (2,190,638) (1,304,938) Total Other Financing Sources (Uses) 280,000 (585,700) (1,837,713) (1,252,013) Net Change in Fund Balances (8,525,804) (6,279,052) 8,377,407 14,656,459 Fund Balance, Beginning of Year 63,612,854 63,612,854 63,612,854 Fund Balance, End of Year 55,087,050$ 57,333,802$ 71,990,261$ 14,656,459$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund
Year Ended June 30, 2024
Budgeted Amounts
68
16.A.
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services 4,177,500 $ 4,177,500 $ 4,557,715 $ 380,215 $ Investment Income 35,000 35,000 639,106 604,106 Intergovernmental Revenues - - - - Total Revenues 4,212,500 4,212,500 5,196,821 984,321
EXPENDITURES
Current:
Sanitation 3,407,700 3,385,678 2,989,713 395,965
Capital Outlay - 1,215,758 1,029,712 186,046 Total Expenditures 3,407,700 4,601,436 4,019,425 186,046 Excess (Deficiency) of Revenues
over Expenditures 804,800 (388,936) 1,177,396 1,566,332
OTHER FINANCING SOURCES (USES)
Transfers In - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 804,800 (388,936) 1,177,396 1,566,332 Fund Balance, Beginning of Year 16,289,924 16,289,924 16,289,924 - Fund Balance, End of Year 17,094,724$ 15,900,988$ 17,467,320$ 1,566,332$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Sewer and Storm Drain Special Revenue Fund Year Ended June 30, 2024
Budgeted Amounts
69
16.A.
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental - $ 2,531,045$ 2,217,507 $ (313,538) $ Total Revenues - 2,531,045 2,217,507 (313,538)
EXPENDITURES
Current:
General Government - 478,147 396,747 81,400 Capital Outlay - 4,134,224 3,899,602 234,622 Total Expenditures - 4,612,371 4,296,349 - Excess (Deficiency) of Revenues
over Expenditures - (2,081,326) (2,078,842) 2,484
OTHER FINANCING SOURCES (USES)
Transfers In - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances - (2,081,326) (2,078,842) 2,484 Fund Balance, Beginning of Year 8,626,621 8,626,621 8,626,621 - Fund Balance, End of Year 8,626,621$ 6,545,295$ 6,547,779$ 2,484$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - ARPA Special Revenue Fund
Year Ended June 30, 2024
Budgeted Amounts
70
16.A.
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes - $ - $ - $ - $ Intergovernmental Revenues 3,687,600 3,838,448 1,078,566 (2,759,882) Investment Income - - - - Total Revenues 3,687,600 3,838,448 1,078,566 (2,759,882)
EXPENDITURES
Current:
Public Safety 2,173,200 1,835,196 1,802,153 33,043 Capital Outlay - - - - Total Expenditures 2,173,200 1,835,196 1,802,153 33,043 Excess (Deficiency) of Revenues
over Expenditures 1,514,400 2,003,252 (723,587) (2,726,839)
OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 1,514,400 2,003,252 (723,587) (2,726,839) Fund Balance, Beginning of Year (68,518) (68,518) (68,518) - Fund Balance, End of Year 1,445,882 $ 1,934,734 $ (792,105) $ (2,726,839)$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Public Safety Grants Special Revenue Fund Year Ended June 30, 2024
Budgeted Amounts
71
16.A.
City of Hemet
Required Supplementary Information
Year Ended June 30, 2024
Schedule of Changes in the Net Pension
Liability and Related Ratios
Agent Multiple-employer Plan - Miscellaneous
Total Pension Liability 2023 2022 2021 2020
Service cost 1,776,915 $ 1,739,825 $ 1,620,902$ 1,707,524$ Interest on total pension liability 9,290,688 9,137,300 9,086,211 8,871,075 Changes in assumptions - 4,277,964 - - Changes of benefit terms 188,706 - - - Differences between expected and actual experience (1,558,408) (2,261,897) (391,754) (58,526) Benefit payments, including refunds (7,347,665) (7,258,269) (7,617,503) (6,651,779) Net change in total pension liability 2,350,236 5,634,923 2,697,856 3,868,294 Total pension liability - beginning 138,802,709 133,167,786 130,469,930 126,601,636 Total pension liability - ending (a) 141,152,945$ 138,802,709$ 133,167,786$ 130,469,930$ Plan Fiduciary Net Position
Contributions - employer 4,204,411$ 3,974,114$ 3,885,574$ 3,788,951$ Contributions - employee 840,732 703,332 680,978 724,261 Net investment income 6,177,834 (8,438,624) 21,096,786 4,584,933 Benefit payments (7,347,665) (7,258,269) (7,617,503) (6,651,779) Plan to Plan Resource Movement - - - - Administrative/Other Expense (74,099) (69,679) (93,804) (129,114) Net change in plan fiduciary net position 3,801,213 (11,089,126) 17,952,031 2,317,252 Plan fiduciary net position - beginning 100,766,485 111,855,611 93,903,580 91,586,328 Plan fiduciary net position - ending (b) 104,567,698$ 100,766,485$ 111,855,611$ 93,903,580$ Net pension liability - ending (a) - (b) 36,585,247$ 38,036,224$ 21,312,175$ 36,566,350$ Plan fiduciary net position as a percentage
of the total pension liability 74.08% 72.60% 84.00% 71.97% Covered pay
roll 9,029,038$ 8,647,240$ 8,751,743$ 9,960,091$ Net pension liability as percentage of
covered payroll 405.20% 439.87% 243.52% 367.13%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2019 valuation date. This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in Assumptions: In 2021, the accounting discount rate changed from 7.15 percent to 6.90 percent.
In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflected an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
Measurement Period
72
16.A.
2019 2018 2017 2016 2015 2014
1,890,624$ 1,857,379$ 1,931,287$ 1,729,490$ 1,871,677$ 1,873,983$ 8,592,385 8,241,843 8,110,383 7,937,191 7,613,775 7,253,346 - (585,850) 6,866,966 - (1,903,393) - - - - - - - 827,595 (1,731,724) (1,473,269) (192,030) 353,826 - (6,218,552) (5,862,944) (5,834,147) (5,132,797) (4,856,565) (4,666,256) 5,092,052 1,918,704 9,601,220 4,341,854 3,079,320 4,461,073 121,509,584 119,590,880 109,989,660 105,647,806 102,568,486 98,107,413 126,601,636$ 121,509,584$ 119,590,880$ 109,989,660$ 105,647,806$ 102,568,486$ 3,789,256$ 3,136,888$ 2,990,210$ 2,647,176$ 2,503,520$ 2,191,066$ 772,222 745,420 743,649 743,644 780,189 871,668 5,749,884 6,966,209 8,615,176 396,714 1,739,990 11,594,247 (6,218,552) (5,862,944) (5,834,147) (5,132,797) (4,856,565) (4,666,256) - (204) (38,502) (382) (887) - (62,278) (374,702) (113,068) (47,522) (87,854) - 4,030,532 4,610,667 6,363,318 (1,393,167) 78,393 9,990,725 87,555,796 82,945,129 76,581,811 77,974,978 77,896,585 67,905,860 91,586,328$ 87,555,796$ 82,945,129$ 76,581,811$ 77,974,978$ 77,896,585$ 35,015,308$ 33,953,788$ 36,645,751$ 33,407,849$ 27,672,828$ 24,671,901$
72.34% 72.06% 69.36% 69.63% 73.81% 75.95%
9,693,519$ 9,531,865$ 9,581,222$ 9,353,143$ 9,860,790$ 9,398,580$ 361.22% 356.21%
382.47% 357.18% 280.63% 262.51%
Measurement Period
73
16.A.
City of Hemet
Required Supplementary Information
Year Ended June 30, 2024
Schedule of Changes in the Net Pension
Liability and Related Ratios
Agent Multiple-employer Plan - Safety
Total Pension Liability 2023 2022 2021 2020
Service cost 4,161,065 $ 4,303,472 $ 3,968,710$ 3,877,702$ Interest on total pension liability 15,278,425 14,633,003 13,947,881 13,404,657 Changes in assumptions - 8,468,220 - - Changes of benefit terms 103,544 - - - Differences between expected and actual experience 1,116,438 438,599 (250,382) 2,343,095 Benefit payments, including refunds (11,217,845) (10,244,764) (9,742,340) (9,217,556) Net change in total pension liability 9,441,627 17,598,530 7,923,869 10,407,898 Total pension liability - beginning 223,734,858 206,136,328 198,212,459 187,804,561 Total pension liability - ending (a) 233,176,485$ 223,734,858$ 206,136,328$ 198,212,459$ Plan Fiduciary Net Position
Contributions - employer 8,388,840$ 7,912,960$ 7,489,405$ 6,947,064$ Contributions - employee 1,832,292 1,712,748 1,689,371 1,607,715 Net investment income 8,912,405 (11,839,228) 28,944,164 6,111,153 Benefit payments (11,217,845) (10,244,764) (9,742,340) (9,217,556) Plan to Plan Resource Movement - - - - Administrative/Other Expense (104,525) (96,367) (126,309) (170,814) Net change in plan fiduciary net position 7,811,167 (12,554,651) 28,254,291 5,277,562 Plan fiduciary net position - beginning 142,142,721 154,697,372 126,443,081 121,165,519 Plan fiduciary net position - ending (b) 149,953,888$ 142,142,721$ 154,697,372$ 126,443,081$ Net pension liability - ending (a) - (b) 83,222,597$ 81,592,137$ 51,438,956$ 71,769,378$ Plan fiduciary net position as a percentage
of the total pension liability 64.31% 63.53% 75.05% 63.79% Covered pay
roll 12,525,783$ 13,164,492$ 13,119,703$ 12,672,228$ Net pension liability as percentage of
covered payroll 664.41% 619.79% 392.07% 566.35%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in Assumptions: In 2021, the accounting discount rate changed from 7.15 percent to 6.90 percent. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflected an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
Measurement Period
74
16.A.
2019 2018 2017 2016 2015 2014
3,746,584$ 3,255,817$ 2,874,210$ 2,471,569$ 2,394,505$ 2,495,555$ 12,696,170 11,907,636 11,326,420 10,976,376 10,402,942 9,879,182 - (582,760) 10,043,106 - (2,726,343) - - - - - - - 4,092,051 2,318,140 (1,131,468) 1,932,999 1,323,162 - (8,667,438) (8,277,450) (7,718,359) (7,544,599) (7,001,597) (6,313,012) 11,867,367 8,621,383 15,393,909 7,836,345 4,392,669 6,061,725 175,937,194 167,315,811 151,921,902 144,085,557 139,692,888 133,631,163 187,804,561$ 175,937,194$ 167,315,811$ 151,921,902$ 144,085,557$ 139,692,888$ 6,605,381$ 5,494,582$ 4,880,193$ 4,516,245$ 4,085,934$ 3,816,628$ 1,569,835 1,429,167 1,142,393 1,032,806 885,734 896,539 7,562,691 9,055,192 11,060,588 516,112 2,205,144 14,795,183 (8,667,438) (8,277,450) (7,718,359) (7,544,599) (7,001,597) (6,313,012) - (265) 38,502 382 887 - (81,214) (483,180) (144,246) (60,481) (111,835) - 6,989,255 7,218,046 9,259,071 (1,539,535) 64,267 13,195,338 114,176,264 106,958,218 97,699,147 99,238,682 99,174,415 85,979,077 121,165,519$ 114,176,264$ 106,958,218$ 97,699,147$ 99,238,682$ 99,174,415$ 66,639,042$ 61,760,930$ 60,357,593$ 54,222,755$ 44,846,875$ 40,518,473$
64.52% 64.90% 63.93% 64.31% 68.87% 70.99%
11,986,001$ 10,732,874$ 9,450,596$ 9,039,459$ 8,826,041$ 8,870,562$ 555.97% 575.44%
638.66% 599.85% 508.12% 456.77%
Measurement Period
75
16.A.
City of Hemet
Required Supplementary Information
Year Ended June 30, 2024
Schedule of Contributions – Last 10 Years
Agent Multiple-employer Plan – Miscellaneous Plan
Schedule of Contributions – Last 10 Years
Agent Multiple-employer Plan – Safety Plan
Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2024 4,081,965$ (4,081,965)$ -$ 7,579,180$ 53.86% 2023 4,205,154 (4,205,154) - 7,398,429 56.84% 2022 3,969,112 (3,969,112) - 8,647,240 45.90% 2021 3,887,516 (3,887,516) - 8,747,448 44.44% 2020 3,789,402 (3,789,402) - 9,960,091 38.05% 2019 3,789,256 (3,789,256) - 9,693,519 39.09% 2018 3,136,888 (3,136,888) - 9,531,865 32.91% 2017 2,990,210 (2,990,210) - 9,581,222 31.21% 2016 2,647,176 (2,647,176) - 9,353,153 28.30% 2015 2,503,520 (2,503,520) - 9,860,790 25.39% Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2024 9,113,184$ (9,113,184)$ -$ 17,228,795$ 52.90% 2023 8,388,097 (8,388,097) - 15,152,188 55.36% 2022 7,912,960 (7,912,960) - 13,164,492 60.11% 2021 7,487,463 (7,487,463) - 13,119,703 57.07% 2020 6,947,140 (6,947,140) - 12,672,228 54.82% 2019 6,605,381 (6,605,381) - 11,986,001 55.11% 2018 5,494,582 (5,494,582) - 10,732,874 51.19% 2017 4,880,193 (4,880,193) - 9,450,596 51.64% 2016 4,516,245 (4,516,245) - 9,039,459 49.96% 2015 4,085,934 (4,085,934) - 8,826,041 46.29% 76
16.A.
THIS PAGE INTENTIONALLY LEFT BLANK
77
16.A.
City of Hemet
Required Supplementary Information
Year Ended June 30, 2024
2024 2023 2022
Total OPEB Liability
Service cost 91,721$ 101,332$ 237,000$ Interest on total OPEB liability 2,689,277 2,879,946 2,903,335 Changes in assumptions (6,355,940) - 3,206,347 Differences between expected and actual experience 54,572 (2,466,271) (2,653,284) Benefit payments, including refunds (3,755,010) (3,834,166) (4,091,232) Net change in total OPEB liability (7,275,380) (3,319,159) (397,834) Total OPEB liability - beginning 48,555,816 51,874,975 52,272,809 Total OPEB liability - ending (a) 41,280,436$ 48,555,816$ 51,874,975$ Plan Fiduciary Net Position
Contributions - employer 3,995,310$ 4,087,951$ 4,386,817$ Net Investment Income 357,500 216,126 (319,692) Benefit payments (3,755,010) (3,834,166) (4,091,232) Administrative Expense (15,800) (32,435) (108,759) Net change in plan fiduciary net position 582,000 437,476 (132,866) Plan fiduciary net position - beginning 2,520,030 2,082,554 2,215,420 Plan fiduciary net position - ending (b) 3,102,030$ 2,520,030$ 2,082,554$ Net OPEB liability - ending (a) - (b) 38,178,406$ 46,035,786$ 49,792,421$ Plan fiduciary net position as a percentage
of the total OPEB liabilit
y 7.5% 5.2% 4.0%
Covered - employee payroll 1,122,852 28,788,925 20,422,785 Net OPEB liability as a percentage of
covered-employee payroll 3400.13% 159.91% 243.81%
* OPEB schedules are intended to show information for ten years, additional years' information will be displayed as it becomes available.
Measurement Period
Schedule of Changes in the Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30
Last 10 Years*
78
16.A.
2021 2020 2019 2018
184,471$ 208,241$ 359,700$ 349,223$ 2,987,576 3,035,365 2,919,091 2,936,563 3,010,639 - 2,845,604 - 465,835 - (191,273) - (3,984,911) (3,984,013) (3,858,552) (3,293,090) 2,663,610 (740,407) 2,074,570 (7,304) 49,609,199 50,349,606 48,275,036 48,282,340 52,272,809$ 49,609,199$ 50,349,606$ 48,275,036$ 4,253,811$ 4,260,842$ 4,112,794$ 3,540,596$ 432,284 66,550 64,025 61,075 (3,984,911) (3,984,013) (3,858,552) (3,293,090) (73,501) (84,114) (56,932) (49,749) 627,683 259,265 261,335 258,832 1,587,737 1,328,472 1,067,137 808,305 2,215,420$ 1,587,737$ 1,328,472$ 1,067,137$ 50,057,389$ 48,021,462$ 49,021,134$ 47,207,899$
4.2% 3.2% 2.6% 2.2%
25,724,365 23,502,304 23,892,668 23,441,109 194.59% 204.33% 205.17% 201.39%
Measurement Period
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16.A.
City of Hemet
Required Supplementary Information
Year Ended June 30, 2024
* OPEB schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.
Contributions in
Relation to the Contributions
Actuarially Actuarially Contribution Covered as a % of
Determined Determined Deficiency/ Employee Covered
Fiscal Year Contributions Contributions (Excess) Payroll Employee Pa yroll 2024 4,122,191$ (3,995,310)$ 126,881$ 1,122,852$ 355.82% 2023 4,217,306 (4,087,951) 129,355 28,788,925 14.20% 2022 3,946,000 (4,386,817) (440,817) 20,422,785 21.48% 2021 3,797,000 (4,260,842) (463,842) 25,724,365 16.56% 2020 3,797,000 (4,260,842) (463,842) 23,502,304 18.13% 2019 3,744,000 (4,112,794) (368,794) 23,892,668 17.21% 2018 - (3,540,596) (3,540,596) 23,441,109 15.10% Schedule of Plan Contributions
La st 10 Ye a rs*
for the City's OPEB Plan
80
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City of Hemet
Notes to Required Supplementary Information
Year Ended June 30, 2024
BUDGETS AND BUDGETARY ACCOUNTING
The City uses the following procedures in establishing the bud getary data reflected in the financial statements:
After January 1, department heads prepare estimates for required appropriations for the fiscal year commencing the following July 1. The proposed budget includes estimated expenditures and forecasted revenues for the fiscal year. The data is presented to the City Manager for review. The City Manager submits to the City Council a proposed operating budget for the upcoming fiscal year. The operating budget includes a summary of the proposed expenditures and financial resources of the City, as well as historical data for the preceding two fiscal periods. Public hearings are conducted to obtain taxpayer comments. The City Council is normally expected to adopt the budget prior to the beginning of the next fiscal period through passage of an adopting resolution. This appropriated budget covers substantially all City expenditures. There were no significant non-budgeted financial activities. All appropriated amounts are as originally adopted or as amended by the City Council and not subject to continuing appropriation lapse at year end.
The City Manager is authorized to transfer budgeted amounts between functions, departments and expenditure accounts within funds. Transfers of appropriations between fun ds may be made only by authority of the City Council. Formal budgetary integration is employed as a management control device during the fiscal year for the General, Special Revenue, Capital Projects, and Debt Service funds. Formal budgetary control is not employed for Debt Service funds because effective budgetary control is a lternatively achieved through debt indenture provisions. It is the policy of the City of Hemet to only budget capital expenditure projects from existing capital projects funds fund balances. No annual revenues are budgeted due to their annual volatility. Budgets for the various funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Annual appropriated budgets are legally adopted for the General, Special Revenue, Capital Projects, and Debt Service fund types.
81
16.A.
SUPPLEMENTARY INFORMATION
82
16.A.
City of Hemet
Measure U Operating Funds
In November 2016, the citizens of Hemet voted to approve Measure U, a general 1% sales tax measure. While this Measure is considered a General Tax, the City’s Council passed a Resolution restricting the use of Measure U revenues to the addition and retention of Public Safety Personnel. Although the funds are housed within the General Fund, by Resolution, they are required to be tracked in separat e accounts from General Fund revenues and expenditures. Any Measure U funds not spent at the end of the fiscal year are required to be reserved for future use of the Measure U program. Over the last two fiscal years, Measure U revenues have outpaced original projections.
The details of the City’s Measure U program for the year ended June 30, 2024 are as follows:
Police Fire Total
Revenues
Police 2/3, Fire 1/3 ov erall allocation 10,764,279$ 5,382,139$ 16,146,418$ Expenditures
Salary and Fringe Benefits 7,555,485 4,166,288 11,721,773 Operating Supplies and Services 1,926,209 104,334 2,030,543 Internal Service Charges 1,172,600 462,500 1,635,100 Capital Outlay 1,123,040 138,959 1,261,999 Total 11,777,334 4,872,081 16,649,415
Change in Measure U Operating Funds (1,013,055) 510,058 (502,997) Beginning Measure U Operating Funds (restated) 14,952,844 4,430,326 19,383,170 Prepaid Measure U Operating Funds 238,197 1,731,443 1,969,640 Committed (20% Reserve) 2,355,467 974,416 3,329,883 Committed Measure U Operating Funds 11,346,125 2,234,525 13,580,650 Ending Measure U Operating Funds 13,939,789 $ 4,940,384 $ 18,880,173 $ 83
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Charges for Services 793,600 $ 1,179,148 $ 385,548 $ Investment Income 65,000 327,696 262,696
Intergovernmental 143,988 865,966 721,978 Total Revenues 1,002,588 2,372,810 1,370,222
EXPENDITURES
Current:
Public Works 759,597 564,994 194,603
Capital Outlay - - - Total Expenditures 759,597 564,994 194,603
Excess (Deficiency) of Revenues
over Expenditures 242,991 1,807,816 1,564,825
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 242,991 1,807,816 1,564,825 Fund Balance, Beginning of Year 6,813,714 6,813,714 -
Fund Balance, End of Year 7,056,705$ 8,621,530$ 1,564,825$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Bridges/Streets Traffic Facilities Capital Projects Fund Year Ended June 30, 2024
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16.A.
City of Hemet
Non-major Governmental Funds
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for revenue derived from specific taxes or other dedicated revenue sources (other than for major capital projects) that are restricted by law or administrative action for expenditures for specified purposes.
Public Safety/Towing - This fund accounts for the financial transactions involving the use of monies collected for towing service as related to public safety.
Gas Tax Fund - Accounts for transactions as prescribed by the State of California statute on California Streets and Highways; including receipts under Streets and Highways Code Section 2105, 2106, 2107, 2107.5 and SB300.
Measure A - Accounts for the use of Measure A tax monies for transit purposes.
Air Pollution Reduction - Accounts for the financial transactions per Regulation 15 of the South Coast Air Quality Management District.
Article 3 - Accounts for the use of Article 3 of the Transportation Develo pment Act (TDA) in California focuses on funding for bicycle and pedestrian projects, allocating 2% of L ocal Transportation Funds (LTF) for projects that enhance facilities for pedestrians and bicyclists.
Lighting/Landscape Maintenance District - Accounts for the financial transactions of City-wide lighting a nd landscaping assessment district established by City Council.
Post Proposition 218 Lighting District - Accounts for the financial transactions of lighting districts voted by the citizens of those specified areas.
Post Proposition 218 Landscape District - Accounts for financial transactions of landscape districts voted in by the citizens of those specified areas.
Public Works CFD - Accounts for financial transactions of lighting, landscape and maintenance of specific areas established by the City Council.
Asset Seizure - Accounts for the financial transactions associated with assets seized in narcotics investigations to be used for law enforcement purposes.
Public Safety CFD - Accounts for the proceeds from the Public Safety Community Facilities District voted in by the citizens of those specific areas to be used specifically for public safety.
Citizen Option for Public Safety Programs (COPS) - Accounts for the financial transactions as prescribed by the State of California Grant under AB 3229.
Local Law Enforcement Block Grant (LLEBG) - Accounts for the financial transactions as prescribed by the U.S.
Department of Justice Grant for the Local Law Enforcement Block Grant Program.
Community Development Block Grant - Accounts for the financial transactions as prescribed by the Federal Department of Housing and Urban Development for Community Development Block Grant Programs.
General Plan - Accounts for the financial transactions related to updating and maintaining the City’s general plan.
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City of Hemet
Non-Major Governmental Funds - Continued
SPECIAL REVENUE FUNDS - Continued
HOME Program - Home Investment Partnership Program - Accounts for the financial transactions of the federally funded HOME program as administered by the State of California’s Department of Housing and Community Development.
CAL HOME Program - Accounts for the financial transactions of the State funded program to replace and rehabilitate mobile homes.
2001 - 2008 HOME Program - Accounts for the financial transactions of the Federally funded HOME program as administered by the State of California Department of Housing and Community Development.
Neighborhood Stabilization Program Grant - Accounts for the financial transactions as prescribed by the Federal Department of Housing and Urban Development for Neighborhood Stabilization Program Grants.
Housing Authority - This fund accounts for the revenue received from the City’s affordable housing programs which facilitate housing development and affordable housing opportunities.
Indian Gaming Grants - This fund accounts for the financial transactions of Indian Gaming Grants received by the City to be spent on specific programs or departments.
Active Transportation Grants - This fund accounts for the financial transactions of Active Transportation Grant received by the City to be spent on specific programs or departments.
Miscellaneous Grants - This fund accounts for various grants restricted for specific purposes.
CAPITAL PROJECTS FUNDS
Public Meeting Facilities - Accounts for the financial transactions for the public meeti ng facilities identified in the development impact fee report and funded through developer contributions.
General Facilities - Accounts for the financial transactions for general facilities identified in the development impact fee report and funded through developer contributions.
Flood Control - Accounts for the financial transactions for flood control improvements identified in the development impact fee report and funded through developer contributions.
Law Enforcement Facilities - Accounts for the financial transactions for the purchase of equipment identified in the development impact fee report and funded through developer contributions.
Fire Facilities - Accounts for the financial transactions for the purchase of equipment identified in the development impact fee report and funded through developer contributions.
Park Development - Accounts for the financial transactions for park acquisitions and development identified in the development impact fee report and funded through park dedication fees and state grants.
Valley Wide DVL Park - Accounts for the financial transactions for development iden tified in the development impact fee report and funded through developer contributions.
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City of Hemet
Non-Major Governmental Funds - Continued
CAPITAL PROJECTS FUNDS - Continued
Library Facilities - Accounts for the financial transactions for expansion of lib rary facilities identified in the development impact fee report and funded through developer contributions.
Equipment Replacement - Accounts for accumulation of reserves for future replacement of rolling stock vehicles from other funds.
General Capital - Accounts for the financial transactions for the addition of new (non-replacement) equipment.
PERMANENT FUNDS
LaSalle Library Endowment - Accounts for an endowment given to the City of Hemet for the benefit of the Library.
Only interest earned on the principal amount of $1,000,000 can be used for non-operating costs of the Library.
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Public Air Pollution
Safety/Towing Gas Tax Measure A Article 3 Reduction
ASSETS
Cash and Investments 225,317$ 7,646,638$ 6,661,448$ -$ 574,068$ Receivables:
Accounts - - - - 30,251 Interest - - - - - Due from Other Governments - 617,204 834,608 - - Notes - - - - - Allowance for Forgivable Notes - - - - - Due from Other Funds - - - - - Due from Fiduciary Funds - - - - - Land Held for Resale - - - - - Total Assets 225,317$ 8,263,842$ 7,496,056$ -$ 604,319$
LIABILITIES
Accounts Payable 60$ 1,469,202$ 88,065$ -$ -$ Accrued Salaries and Benefits 740 7,471 - - - Deposits - - - - - Unearned Revenue - - - - - Due to Other Funds - - - - - Total Liabilities 800 1,476,673 88,065 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - -
- - -
Total Deferred Inflows of Resources - - - - -
FUND BALANCE (DEFICITS)
Nonspendable - - - - - Restricted 224,517 6,787,169 7,407,991 - 604,319 Assigned - - - - - Unassigned - - - - - Total Fund Balances 224,517 6,787,169 7,407,991 - 604,319 Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) 225,317$ 8,263,842$ 7,496,056$ -$ 604,319$ City of Hemet
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2024
Special Revenue
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Lighting and Post Post
Landscaping Prop 218 Prop 218 Public Works Asset Public Maintenance Lighting Landscaping CFD Seizure Safety CFD 2,941,392$ 1,739,330$ 3,889,849$ 668,519 $ 258,638$ 866,870$ 9,175 7,068 - - - - - - - - - - 61,378 7,044 27,486 1,431 - 11,058 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,011,945$ 1,753,442$ 3,917,335$ 669,950 $ 258,638$ 877,928$ 84,720$ 15,278$ 62,681$ 2,921 $ -$ 1,542$ 4,395 1,173 9,353 204 - 7,006 - - 198,409 110,773 163,323 9,654 - - - - - - - - - - - - 89,115 16,451 270,443 113,898 163,323 18,202 - - - - - - - - - - - - - - - - - - 2,922,830 1,736,991 3,646,892 556,052 95,315 859,726 - - - - - - - - - - - - 2,922,830 1,736,991 3,646,892 556,052 95,315 859,726
3,011,945$ 1,753,442$ 3,917,335$ 669,950 $ 258,638$ 877,928$ Continued
Special Revenue
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Local Law Community
COPS Enforcement Development General HOME
AB 3229 Block Grant Block Grant Plan Program
ASSETS
Cash and Investments 725,734 $ - $ 48,106 $ 578,901 $ 735,006$ Receivables:
Accounts - - - - 82 Interest - - - - - Due from Other Governments - - 275,302 - - Notes - - - - 286,673 Allowance for Forgivable Notes - - - - - Due from Other Funds - - - - - Due from Fiduciary Funds - - - - - Land Held for Resale - - - - - Total Assets 725,734$ -$ 323,408 $ 578,901 $ 1,021,761$
LIABILITIES
Accounts Payable 23,642$ -$ 26,807 $ -$ -$ Accrued Salaries and Benefits - - 669 - - Deposits - - - - - Unearned Revenue - - - - - Due to Other Funds - 90,848 295,932 - - Total Liabilities 23,642 90,848 323,408 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - -
- - -
Total Deferred Inflows of Resources - - - - -
FUND BALANCE (DEFICITS)
Nonspendable - - - - - Restricted 702,092 - - 578,901 1,021,761 Assigned - - - - - Unassigned - (90,848) - - - Total Fund Balances 702,092 (90,848) - 578,901 1,021,761 Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) 725,734$ -$ 323,408 $ 578,901 $ 1,021,761$ Special Revenue
City of Hemet
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2024
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Capital
Special Revenue Projects
Indian Active Public
CalHome 2001 - 2008 Housing Gaming Transportation Miscellaneous Meeting Grant Home Grant NSP Program Authority Grants Grant Grants Facilities 215,138$ 1,036,048$ 70,865$ 251,735$ 6,411$ -$ 711,677$ 232,104$ - - - 3,500 - - - - - 636,113 - 959,696 - - - - - - - - - 337,157 302,763 - 323,006 3,976,151 123,874 2,917,106 - - - - - (4,236,113) - (1,635,367) - - - - - - - - - - - - - - - - - - - - - - 593,919 1,482,500 - - - - 538,144$ 1,412,199$ 788,658$ 3,979,170$ 6,411$ 337,157$ 1,014,440$ 232,104$ -$ -$ -$ -$ -$ 141$ 2,800$ -$ - - - - - - 1,592 - - - - 5,733 - - - - - - - - - - 1,010,049 - - - - - - - - - - - - 5,733 - 141 1,014,441 - - - - - - 337,157 302,763 - - - - - - 337,157 302,763 - - - - - - - - - 538,144 1,412,199 788,658 3,973,437 6,411 - - 232,104 - - - - - - - - - - - - - (141) (302,764) - 538,144
1,412,199 788,658 3,973,437 6,411 (141) (302,764) 232,104 538,144$ 1,412,199$ 788,658$ 3,979,170$ 6,411$ 337,157$ 1,014,440$ 232,104$ Continued
91
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Law
General Flood Enforcement Fire Park
Facilities Control Facilities Facilities Development
ASSETS
Cash and Investments 1,763,679 $ 6,534,436 $ 864,916 $ 4,932,914 $ 3,323,158 $ Receivables:
Accounts - - - - - Interest - - - - - Due from Other Governments - - - - - Notes - - - - - Allowance for Forgivable Notes - - - - - Due from Other Funds - 354,137 - - - Due from Fiduciary Funds - - - - - Land Held for Resale - - - - - Total Assets 1,763,679 $ 6,888,573 $ 864,916 $ 4,932,914 $ 3,323,158 $
LIABILITIES
Accounts Payable 2,250 $ 24,226 $ - $ - $ 12,306$ Accrued Salaries and Benefits - - - - - Deposits - - - - - Unearned Revenue - - - - - Due to Other Funds - - - 354,137 - Total Liabilities 2,250 24,226 - 354,137 12,306
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - -
- - -
Total Deferred Inflows of Resources - - - - -
FUND BALANCE (DEFICITS)
Nonspendable - - - - - Restricted 1,761,429 6,864,347 864,916 4,578,777 3,310,852 Assigned - - - - - Unassigned - - - - - Total Fund Balances 1,761,429 6,864,347 864,916 4,578,777 3,310,852 Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) 1,763,679$ 6,888,573$ 864,916$ 4,932,914$ 3,323,158$ Non-major Governmental Funds - Continued
June 30, 2024
Capital Projects
City of Hemet
Combining Balance Sheet
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Permanent
Fund
Valley LaSalle
Wide Library Equipment General Library
DVL Park Facilities Replacement Capital Endowment Totals 548,630$ 1,349,301 $ 6,317,133 $ 8,564 $ 1,040,213$ 56,766,738 $ - - - - - 50,076 - - - - 12,008 1,607,817 - - - - - 2,475,431 - - - - - 7,626,810 - - - - - (5,871,480) - - - - - 354,137 - - - - - - - - - - - 2,076,419 548,630$ 1,349,301 $ 6,317,133 $ 8,564 $ 1,052,221$ 65,085,948 $ -$ 3,349$ - $ - $ 823$ 1,820,813$ - - - - - 32,603 - - - - - 487,892 - - - - - 1,010,049 - - - - - 740,917 - 3,349
- - 823 4,092,274 - - - - - 639,920 - - - - - 639,920 - - - - 1,000,000 1,000,000 548,630 1,345,952 - - 51,398 53,421,810 - - 6,317,133 8,564 - 6,325,697 - - - - - (393,753) 548,630 1,345,952 6,317,133 8,564 1,051,398 60,353,754
548,630$ 1,349,301$ 6,317,133$ 8,564$ 1,052,221$ 65,085,948$ Capital Projects
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Public Air Pollution
Safety/Towing Gas Tax Measure A Article 3 Reduction
REVENUES
Taxes -$ -$ 2,800,611$ -$ -$ Intergovernmental Revenue - 4,779,756 - 168,248 120,950 Charges for Services 62,074 - - - - Investment Income 7,268 320,801 209,585 - 20,320 Miscellaneous - - - 35,637 - Total Revenues 69,342 5,100,557 3,010,196 203,885 141,270
EXPENDITURES
Current:
General Government - - - - - Public Safety 40,095 - - - - Community Development - - - - - Public Works - 1,818,669 14,000 - - Libraries - - - - - Capital Outlay - 4,382,120 322,572 - 48,701 Total Expenditures 40,095 6,200,789 336,572 - 48,701 Excess (Deficiency) of Revenues
Over Expenditures 29,247 (1,100,232) 2,673,624 203,885 92,569
OTHER FINANCING SOURCES (USES)
Transfers In - 20,000 - - - Transfers Out - - - - - Total Other Financing Sources (Uses) - 20,000 - - - Net Change in Fund Balances 29,247 (1,080,232) 2,673,624 203,885 92,569 Fund Balances, Beginning, as previously reported 195,270 7,867,401 4,734,367 (203,885) 511,750 Change within financial reporting entity
(non-major to major) - - - - - Fund Balances, Beginning, as adjusted 195,270 7,867,401 4,734,367 (203,885) 511,750 Fund Balances, End of Year 224,517$ 6,787,169$ 7,407,991$ -$ 604,319$ Special Revenue
Year Ended June 30, 2024
City of Hemet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
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Formerly
Lighting and Post Post Non-major
Landscaping Prop 218 Prop 218 Public Works Asset Public Public Maintenance Lighting Landscaping CFD Seizure Safety Grants Safety CFD -$ -$ -$ - $ -$ - $ -$ - - - - 3,364 - - 1,838,637 404,920 2,053,028 424,502 - - 1,226,261 83,288 59,449 110,314 12,392 9,199 - 9,935 62,013 7,068 - - - - - 1,983,938 471,437 2,163,342 436,894 12,563 - 1,236,196 - - - - - - - - - - - - - 983,325 - - - - - - - 1,578,343 328,626 1,634,015 61,236 - - - - - - - - - - - - - - - - - 1,578,343 328,626 1,634,015 61,236 - - 983,325 405,595 142,811 529,327 375,658 12,563 - 252,871 - - -
- - - - - - - - - - - - - - - - - - 405,595 142,811 529,327 375,658 12,563 - 252,871 2,517,235 1,594,180 3,117,565 180,394 82,752 (68,518) 606,855 - - - - - 68,518 - 2,517,235 1,594,180 3,117,565 180,394 82,752 - 606,855 2,922,830$ 1,736,991$ 3,646,892$ 556,052 $ 95,315$ - $ 859,726$ Continued
Special Revenue
95
16.A.
Local Law Community
COPS Enforcement Development General HOME
AB 3229 Block Grant Block Grant Plan Program
REVENUES
Taxes -$ -$ - $ - $ -$ Intergovernmental Revenue 259,099 - 1,331,391 - - Charges for Services - - - 122,682 - Investment Income - - (3,209) 19,521 - Miscellaneous - - - - - Total Revenues 259,099 - 1,328,182 142,203 -
EXPENDITURES
Current:
General Government - - - - - Public Safety - - - - - Community Development - - 711,211 - - Public Works - - - - - Libraries - - - - - Capital Outlay 134,347 - 620,180 - - Total Expenditures 134,347 - 1,331,391 - - Excess (Deficiency) of Revenues
Over Expenditures 124,752 - (3,209) 142,203 -
OTHER FINANCING SOURCES (USES)
Transfers In - - - - - Transfers Out - - - - - Total Other Financing Sources (Uses) - - - - - Net Change in Fund Balances 124,752 - (3,209) 142,203 - Fund Balances, Beginning, as previously reported 577,340 (90,848) 3,209 436,698 1,021,761 Change within financial reporting entity
(non-major to major) - - - - - Fund Balances, Beginning, as adjusted 577,340 (90,848) 3,209 436,698 1,021,761 Fund Balances, End of Year 702,092$ (90,848)$ - $ 578,901 $ 1,021,761$ Year Ended June 30, 2024
Special Revenue
City of Hemet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - Continued
96
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Capital
Projects
Indian Active Public
CalHome 2001 - 2008 Housing Gaming Transportation Miscellaneous Meeting Grant Home Grant NSP Program Authority Grants Grant Grants Facilities -$ -$ -$ -$ -$ -$ -$ -$ - - - - - 1,950,000 - - - - - - - - - - - - - 9,361 - - - 8,631 - - 263 - - - - - - - 263 9,361 - 1,950,000 - 8,631 - - - - - - 77,263 - - - - - - - - - 6,190 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,597,381 225,501 - 6,190 - - - - 1,597,381 302,764 - (6,190) - 263 9,361 - 352,619 (302,764) 8,631 - - - - - - - - - - - - - - - - - - - - - - - - (6,190) - 263 9,361 - 352,619 (302,764) 8,631 544,334 1,412,199 788,395 3,964,076 6,411 (352,760) - 223,473 - - - - - - - - 544,334 1,412,199 788,395 3,964,076 6,411 (352,760) - 223,473 538,144$ 1,412,199$ 788,658$ 3,973,437$ 6,411$ (141)$ (302,764)$ 232,104 $ Continued
Special Revenue
97
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Law
General Flood Enforcement Fire Park
Facilities Control Facilities Facilities Development
REVENUES
Taxes -$ -$ -$ -$ -$ Intergovernmental Revenue - - - - - Charges for Services 318,403 741,923 196,452 233,008 724,874 Investment Income 60,594 230,612 28,894 179,565 114,270 Miscellaneous - - - - - Total Revenues 378,997 972,535 225,346 412,573 839,144
EXPENDITURES
Current:
General Government - - - - - Public Safety - - - - - Community Development - - - - - Public Works 36,650 - - - - Libraries - - - - - Capital Outlay - 25,626 - - 134,581 Total Expenditures 36,650 25,626 - - 134,581 Excess (Deficiency) of Revenues
Over Expenditures 342,347 946,909 225,346 412,573 704,563
OTHER FINANCING SOURCES (USES)
Transfers In - - - - - Transfers Out - - - - - Total Other Financing Sources (Uses) - - - - - Net Change in Fund Balances 342,347 946,909
225,346 412,573 704,563
Fund Balances, Beginning, as previously reported 1,419,082 5,917,438 639,570 4,166,204 2,606,289 Change within financial reporting entity
(non-major to major) - - - - - Fund Balances, Beginning, as adjusted 1,419,082 5,917,438 639,570 4,166,204 2,606,289 Fund Balances, End of Year 1,761,429$ 6,864,347$ 864,916 $ 4,578,777$ 3,310,852$ City of Hemet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - Continued
Year Ended June 30, 2024
Capital Projects
98
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Permanent
Fund
Valley LaSalle
Wide Library Equipment General Library
DVL Park Facilities Replacement Capital Endowment Totals -$ -$ -$ -$ -$ 2,800,611$ - - - - - 8,612,808 114,130 296,411 825,300 - - 9,582,605 18,519 47,026 201,552 - 43,185 1,801,072 - - 94,659 - - 199,640 132,649 343,437 1,121,511 - 43,185 22,996,736 - - - - - 77,263 - - - - - 1,023,420 - - - - - 717,401 - - - - - 5,471,539 - 123,635 - - 9,525 133,160 - - 727,578 - - 8,218,587 - 123,635 727,578 - 9,525 15,641,370 132,649 219,802 393,933 - 33,660 7,355,366 - - 865,700 - - 885,700 - - - - - - - - 865,700 - - 885,700 132,649
219,802 1,259,633 - 33,660 8,241,066
415,981 1,126,150 5,057,500 8,564 1,017,738 52,044,170
- - - - - 68,518 415,981 1,126,150 5,057,500 8,564 1,017,738 52,112,688 548,630 $ 1,345,952$ 6,317,133$ 8,564$ 1,051,398$ 60,353,754$ Capital Projects
99
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Charges for Services 70,000 $ 62,074 $ (7,926) $ Investment Income - 7,268 7,268
Miscellaneous - - - Total Revenues 70,000 69,342 (658)
EXPENDITURES
Current:
Public Safety 70,000 40,095 29,905
Capital Outlay - - - Total Expenditures 70,000 40,095 29,905
Excess (Deficiency) of Revenues
over Expenditures - 29,247 29,247
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances - 29,247 29,247 Fund Balance, Beginning of Year 195,270 195,270 -
Fund Balance, End of Year 195,270$ 224,517$ 29,247$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Public Safety Towing Special Revenue Fund Year Ended June 30, 2024
100
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Licenses and Permits - $ - $ - $ Intergovernmental Revenue 5,075,170 4,779,756 (295,414) Investment Income 15,000 320,801 305,801
Miscellaneous 198,968 - (198,968) Total Revenues 5,289,138 5,100,557 (188,581)
EXPENDITURES
Current:
Public Works 2,353,892 1,818,669 535,223
Capital Outlay 4,672,617 4,382,120 290,497
Total Expenditures 7,026,509 6,200,789 825,720
Excess (Deficiency) of Revenues
over Expenditures (1,737,371) (1,100,232) 637,139
OTHER FINANCING SOURCES (USES)
Transfers In 20,000 20,000 -
Transfers Out - - -
Total Other Financing Sources (Uses) 20,000 20,000 - Net Change in Fund Balances (1,717,371) (1,080,232) 637,139 Fund Balances, Beginning of Year 7,867,401 7,867,401 -
Fund Balance, End of Year 6,150,030 $ 6,787,16
9$ 637,139$
City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Gas Tax Special Revenue Fund
Year Ended June 30, 2024
101
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 2,791,000 $ 2,800,611 $ 9,611 $
Intergovernmental Revenue - 0 -
Investment Income 30,000 209,585 179,585
Charges for Services - - - Total Revenues 2,821,000 3,010,196 189,196
EXPENDITURES
Current:
Public Works 14,000 14,000 -
Capital Outlay 920,232 322,572 597,660
Total Expenditures 934,232 336,572 597,660 Excess (Deficiency) of Revenues
Over Expenditures 1,886,768 2,673,624 786,856
Fund Balance, Beginning of Year 4,734,367 4,734,367 -
Fund Balance, End of Year 6,621,135 $ 7,407,991 $ 786,856 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Measure A Special Revenue Fund
Year Ended June 30, 2024
102
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenue - $ 168,248$ 168,248 $ Miscellaneous - 35,637 35,637 Total Revenues - 203,885 203,885
EXPENDITURES
Current:
Public Works - - - Capital Outlay 44,315 - 44,315 Total Expenditures 44,315 - 44,315 Excess (Deficiency) of Revenues
Over Expenditures (44,315) 203,885 248,200 Fund Balance, Beginning of Year (203,885) (203,885) -
Fund Balance, End of Year (248,200) $ - $ 248,200$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Article 3 Special Revenue Fund
Year Ended June 30, 2024
103
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenue 112,000 $ 120,950 $ 8,950 $ Investment Income 1,000 20,320 19,320
Charges for Services - - - Total Revenues 113,000 141,270 28,270
EXPENDITURES
Current:
Public Works - - - Capital Outlay 51,000 48,701 2,299 Total Expenditures 51,000 48,701 2,299 Excess (Deficiency) of Revenues
Over Expenditures 62,000 92,569 30,569
OTHER FINANCING SOURCES (USES)
Transfers In - - - Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 62,000 92,569 30,569
Fund Balance, Beginning of Year 511,750 511,750 -
Fund Balance, End of Year 573,750 $ 604,319 $ 30,569 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Air Pollution Reduction Special Revenue Fund Year Ended June 30, 2024
104
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ - $ - $
Charges for Services 1,747,839 1,838,637 90,798
Investment Income - 83,288 83,288 Miscellaneous 50,000 62,013 12,013
Total Revenues 1,797,839 1,983,938 186,099
EXPENDITURES
Current:
Public Works 1,799,034 1,578,343 220,691
Capital Outlay - - - Total Expenditures 1,799,034 1,578,343 220,691
Excess (Deficiency) of Revenues
over Expenditures (1,195) 405,595 406,790
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (1,195) 405,595 406,790
Fund Balance, Beginning of Year 2,517,235 2,517,235 -
Fund Balance, End of Year 2,516,040 $ 2,922,830 $ 406,790 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Lighting/Landscaping Maintenance Special Revenue Fund Year Ended June 30, 2024
105
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ - $ - $
Charges for Services 408,172 404,920 (3,252) Investment Income - 59,449 59,449 Miscellaneous - 7,068 7,068
Total Revenues 408,172 471,437 63,265
EXPENDITURES
Current:
Public Works 532,449 328,626 203,823
Capital Outlay - - - Total Expenditures 532,449 328,626 203,823 Excess (Deficiency) of Revenues
over Expenditures (124,277) 142,811 267,088
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (124,277) 142,811 267,088 Fund Balance, Beginning of Year 1,594,180 1,594,180 -
Fund Balance, End of Year 1,469,903 $ 1,736,991 $ 267,088 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Post Prop 218 Lighting Special Revenue Fund Year Ended June 30, 2024
106
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ - $ - $
Charges for Services 2,069,770 2,053,028 (16,742) Investment Income - 110,314 110,314 Miscellaneous - - - Total Revenues 2,069,770 2,163,342 93,572
EXPENDITURES
Current:
Public Works 1,927,806 1,634,015 293,791
Capital Outlay - - - Total Expenditures 1,927,806 1,634,015 293,791
Excess (Deficiency) of Revenues
over Expenditures 141,964 529,327 387,363
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 141,964 529,327 387,363 Fund Balance, Beginning of Year 3,117,565 3,117,565 -
Fund Balance, End of Year 3,259,52 9$ 3,646,892$ 387,363$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Post Prop 218 Landscape Special Revenue Fund Year Ended June 30, 2024
107
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Charges for Services - $ 424,502$ 424,502 $ Investment Income - 12,392 12,392 Total Revenues - 436,894 436,894
EXPENDITURES
Current:
Public Works 28,000 61,236 (33,236)
Capital Outlay - - - Total Expenditures 28,000 61,236 (33,236) Excess (Deficiency) of Revenues
Over Expenditures (28,000) 375,658 403,658 Fund Balance, Beginning of Year 180,394 180,394 - Fund Balance, End of Year 152,394 $ 556,052 $ 403,658 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Public Works CFD Special Revenue Fund Year Ended June 30, 2024
108
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ -$ - $
Intergovernmental Revenues 1,000 3,364 2,364 Investment Income 1,000 9,199 8,199
Miscellaneous - - -
Total Revenues 2,000 12,563 10,563
EXPENDITURES
Current:
Public Safety - - -
Capital Outlay - - -
Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures 2,000 12,563 10,563
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 2,000 12,563 10,563 Fund Balance, Beginning of Year 82,752 82,752 -
Fund Balance, End of Year 84,752 $ 95,315$ 10,563 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Asset Seizure Special Revenue Fund
Year Ended June 30, 2024
109
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenue - $ -$ -$ Charges for Services 987,500 1,226,261 238,761
Investment Income - 9,935 9,935 Total Revenues 987,500 1,236,196 248,696
EXPENDITURES
Current:
Public Safety 987,500 983,325 (4,175)
Capital Outlay - - -
Total Expenditures 987,500 983,325 4,175
Excess (Deficiency) of Revenues
over Expenditures - 252,871 252,871
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances - 252,871 252,871 Fund Balance, Beginning of Year 606,855 606,855 -
Fund Balance, End of Year 606,855$ 859,726$ 252,871$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Public Safety CFD Special Revenue Fund Year Ended June 30, 2024
110
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ -$ - $
Intergovernmental Revenues 138,457 259,099 120,642 Investment Income 130,000 - (130,000) Total Revenues 268,457 259,099 (9,358)
EXPENDITURES
Current:
Public Safety - - -
Capital Outlay 133,513 134,347 (834)
Total Expenditures 133,513 134,347 (834)
Excess (Deficiency) of Revenues
over Expenditures 134,944 124,752 (10,192)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 134,944 124,752 (10,192) Fund Balance, Beginning of Year 577,340 577,340 -
Fund Balance, End of Year 712,284 $ 702,092$ (10,192)$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - COPS/AB 3229 Special Revenue Fund
Year Ended June 30, 2024
111
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ -$ - $
Intergovernmental Revenues - - - Total Revenues - - -
EXPENDITURES
Current:
Public Safety - - -
Capital Outlay - - -
Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures - - -
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances - - - Fund Balance, Beginning of Year (90,848) (90,848) - Fund Balance, End of Year (90,848)$ (90,848)$ - $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Local Law Enforcement Block Grant Special Revenue Fund Year Ended June 30, 2024
112
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ - $ -$
Intergovernmental Revenues 1,070,015 1,331,391 261,376 Investment Income - (3,209) (3,209) Total Revenues 1,070,015 1,328,182 258,167
EXPENDITURES
Current:
General Governmental - - - Community Development 702,596 711,211 (8,615) Capital Outlay 628,795 620,180 8,615
Total Expenditures 1,331,391 1,331,391 -
Excess (Deficiency) of Revenues
over Expenditures (261,376) (3,209) 258,167
OTHER FINANCING SOURCES (USES)
Transfers In - - - Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (261,376) (3,209) 258,167 Fund Balance, Beginning of Year 3,209 3,209 - Fund Balance, End of Year (258,167)$ -$ 258,167$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Community Development Block Grant Special Revenue Fund Year Ended June 30, 2024
113
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ -$ - $
Charges for Services 86,900 122,682 35,782 Investment Income 1,200 19,521 18,321
Total Revenues 88,100 142,203 54,103
EXPENDITURES
Current:
General Government - - - Capital Outlay - - -
Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures 88,100 142,203 54,103
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 88,100 142,203 54,103 Fund Balance, Beginning of Year 436,698 436,698 -
Fund Balance, End of Year 524,798 $ 578,901$ 54,103 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Plan Special Revenue Fund
Year Ended June 30, 2024
114
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ - $ - $
Investment Income 1,000 - (1,000) Total Revenues 1,000 - (1,000)
EXPENDITURES
Current:
Community Development - - - Capital Outlay - - - Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures 1,000 - (1,000)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 1,000 - (1,000) Fund Balance, Beginning of Year 1,021,761 1,021,761 -
Fund Balance, End of Year 1,022,761 $ 1,021,761 $ (1,000) $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - HOME Program Special Revenue Fund
Year Ended June 30, 2024
115
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income 1,600 $ -$ (1,600)$ Intergovernmental Revenues - - - Total Revenues 1,600 - (1,600)
EXPENDITURES
Current:
Community Development - 6,190 (6,190) Public Works - - -
Capital Outlay - - -
Total Expenditures - 6,190 (6,190) Excess (Deficiency) of Revenues
over Expenditures 1,600 (6,190) (7,790)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 1,600 (6,190) (7,790) Fund Balance, Beginning of Year 544,334 544,334 -
Fund Balance, End of Year 545,934 $ 538,144$ (7,790)$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - CalHome Grant Special Revenue Fund
Year Ended June 30, 2024
116
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ - $ - $
Intergovernmental Revenues - - - Investment Income 11,000 - (11,000) Miscellaneous - - - Total Revenues 11,000 - (11,000)
EXPENDITURES
Current:
Community Development - - - Public Works - - -
Capital Outlay - - - Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures 11,000 - (11,000)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 11,000 - (11,000) Fund Balance, Beginning of Year 1,412,199 1,412,199 -
Fund Balance, End of Year 1,423,19 9$ 1,412,199$ (11,000)$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - 2001- 2008 Home Grant Special Revenue Fund Year Ended June 30, 2024
117
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ - $ - $
Intergovernmental Revenues - - - Investment Income - - - Miscellaneous - 263 263
Total Revenues - 263 263
EXPENDITURES
Current:
Public Works - - -
Community Development - - - Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures - 263 263
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances - 263 263 Fund Balance, Beginning of Year 788,395 788,395 - Fund Balance, End of Year 788,39 5$ 788,658$ 263$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Neighborhood Stabilization Program Grant Special Revenue Fund Year Ended June 30, 2024
118
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ - $ - $
Intergovernmental Revenues - - - Investment Income 1,500 9,361 7,861 Total Revenues 1,500 9,361 7,861
EXPENDITURES
Current:
Public Works - - -
Capital Outlay - - - Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures 1,500 9,361 7,861
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 1,500 9,361 7,861 Fund Balance, Beginning of Year 3,964,076 3,964,076 -
Fund Balance, End of Year 3,965,576 $ 3,973,437 $ 7,861 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Housing Authority Special Revenue Fund Year Ended June 30, 2024
119
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ - $ - $
Intergovernmental Revenues - - - Investment Income - - - Total Revenues - - -
EXPENDITURES
Current:
Public Works - - -
Capital Outlay - - - Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures - - -
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances - - - Fund Balance, Beginning of Year 6,411 6,411 -
Fund Balance, End of Year 6,411 $ 6,411 $ - $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Indian Gaming Grant Special Revenue Fund Year Ended June 30, 2024
120
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues 1,317,063 $ 1,950,000 $ 632,937 $ Total Revenues 1,317,063 1,950,000 632,937
EXPENDITURES
Current:
Public Works - - -
Capital Outlay 1,332,121 1,597,381 265,260
Total Expenditures 1,332,121 1,597,381 (265,260) Excess (Deficiency) of Revenues
over Expenditures (15,058) 352,619 367,677
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (15,058) 352,619 367,677 Fund Balance, Beginning of Year (352,760) (352,760) - Fund Balance, End of Year (367,818 )$ (141)$ 367,677$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Active Transportation Grant Special Revenue Fund Year Ended June 30, 2024
121
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues 1,317,063 $ - $ (1,317,063)$ Total Revenues 1,317,063 - (1,317,063)
EXPENDITURES
Current:
General Government 77,262 77,263 1
Capital Outlay 223,303 225,501 2,198
Total Expenditures 300,565 302,764 (2,199) Excess (Deficiency) of Revenues
over Expenditures 1,016,498 (302,764) (1,319,262)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 1,016,498 (302,764) (1,319,262) Fund Balance, Beginning of Year - - - Fund Balance, End of Year 1,016,498$ (302,764)$ (1,319,262)$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Miscellaneous Grants Special Revenue Fund Year Ended June 30, 2024
122
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues - $ -$ - $ Charges for Services - - - Investment Income 3,000 8,631 5,631
Total Revenues 3,000 8,631 5,631
EXPENDITURES
Current:
Public Works - - -
Libraries - - -
Capital Outlay - - -
Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures 3,000 8,631 5,631
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 3,000 8,631 5,631 Fund Balance, Beginning of Year 223,473 223,473 -
Fund Balance, End of Year 226,473 $ 232,104$ 5,631 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Public Meeting Facilities Capital Projects Fund Year Ended June 30, 2024
123
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues - $ - $ - $ Charges for Services 226,200 318,403 92,203 Investment Income 8,000 60,594 52,594 Miscellaneous - - - Total Revenues 234,200 378,997 144,797
EXPENDITURES
Current:
Public Works 36,650 36,650 -
Capital Outlay - - -
Total Expenditures 36,650 36,650 -
Excess (Deficiency) of Revenues
over Expenditures 197,550 342,347 144,797
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 197,550 342,347 144,797 Fund Balance, Beginning of Year 1,419,082 1,419,082 -
Fund Balance, End of Year 1,616,632$ 1,761,429$ 144,797$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Facilities Capital Projects Fund Year Ended June 30, 2024
124
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues - $ - $ -$ Charges for Services 499,100 741,923 242,823 Investment Income 45,000 230,612 185,612
Miscellaneous - - -
Total Revenues 544,100 972,535 428,435
EXPENDITURES
Current:
Public Works - - -
Capital Outlay 25,626 25,626 -
Total Expenditures 25,626 25,626 -
Excess (Deficiency) of Revenues
over Expenditures 518,474 946,909 428,435
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 518,474 946,909 428,435 Fund Balance, Beginning of Year 5,917,438 5,917,438 -
Fund Balance, End of Year 6,435,912$ 6,864,347$ 428,435$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Flood Control Capital Projects Fund Year Ended June 30, 2024
125
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues - $ -$ - $ Charges for Services 139,800 196,452 56,652
Investment Income 1,100 28,894 27,794
Total Revenues 140,900 225,346 84,446
EXPENDITURES
Current:
Public Works - - -
Capital Outlay - - -
Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures 140,900 225,346 84,446
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 140,900 225,346 84,446 Fund Balance, Beginning of Year 639,570 639,570 -
Fund Balance, End of Year 780,470 $ 864,916$ 84,446 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Law Enforcement Facilities Capital Projects Fund Year Ended June 30, 2024
126
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues - $ - $ - $ Charges for Services 166,000 233,008 67,008 Investment Income 50,000 179,565 129,565 Total Revenues 216,000 412,573 196,573
EXPENDITURES
Current:
Public Works - - -
Capital Outlay - - - Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures 216,000 412,573 196,573
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 216,000 412,573 196,573 Fund Balance, Beginning of Year 4,166,204 4,166,204 -
Fund Balance, End of Year 4,382,204 $ 4,578,777 $ 196,573 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Fire Facilities Capital Projects Fund Year Ended June 30, 2024
127
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues - $ - $ - $ Charges for Services 229,800 724,874 495,074 Investment Income 23,000 114,270 91,270
Total Revenues 252,800 839,144 586,344
EXPENDITURES
Current:
Public Works - - -
Capital Outlay 174,863 134,581 40,282
Total Expenditures 174,863 134,581 40,282
Excess (Deficiency) of Revenues
over Expenditures 77,937 704,563 626,626
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 77,937 704,563 626,626 Fund Balance, Beginning of Year 2,606,289 2,606,289 -
Fund Balance, End of Year 2,684,226 $ 3,310,852 $ 626,626 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Park Development Capital Projects Fund Year Ended June 30, 2024
128
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues - $ -$ - $ Charges for Services 70,900 114,130 43,230 Investment Income 1,500 18,519 17,019
Total Revenues 72,400 132,649 60,249
EXPENDITURES
Current:
General Government - - - Capital Outlay - - -
Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures 72,400 132,649 60,249
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 72,400 132,649 60,249 Fund Balance, Beginning of Year 415,981 415,981 -
Fund Balance, End of Year 488,381 $ 548,630$ 60,249 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Valley Wide DVL Park Capital Projects Fund Year Ended June 30, 2024
129
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues - $ - $ - $ Charges for Services - 296,411 296,411 Investment Income 8,500 47,026 38,526 Miscellaneous - - - Total Revenues 8,500 343,437 334,937
EXPENDITURES
Current:
Libraries 178,100 123,635 54,465
Capital Outlay - - - Total Expenditures 178,100 123,635 54,465
Excess (Deficiency) of Revenues
over Expenditures (169,600) 219,802 389,402
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (169,600) 219,802 389,402 Fund Balance, Beginning of Year 1,126,150 1,126,150 -
Fund Balance, End of Year 956,550 $ 1,345,952 $ 389,402 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Library Facilities Capital Projects Fund Year Ended June 30, 2024
130
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues - $ - $ - $ Charges for Services 825,300 825,300 -
Investment Income 10,000 201,552 191,552 Miscellaneous - 94,659 94,659
Total Revenues 835,300 1,121,511 286,211
EXPENDITURES
Current:
Public Works - - -
Capital Outlay 740,103 727,578 12,525
Total Expenditures 740,103 727,578 12,525
Excess (Deficiency) of Revenues
over Expenditures 95,197 393,933 298,736
OTHER FINANCING SOURCES (USES)
Transfers In 865,700 865,700 -
Transfers Out - - -
Total Other Financing Sources (Uses) 865,700 865,700 - Net Change in Fund Balances 960,897 1,259,633 298,736 Fund Balance, Beginning of Year 5,057,500 5,057,500 -
Fund Balance, End of Year 6,018,397 $ 6,317,133 $ 298,736 $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Equipment Replacement Capital Projects Fund Year Ended June 30, 2024
131
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues - $ -$ - $ Charges for Services - - - Investment Income - - - Total Revenues - - -
EXPENDITURES
Current:
General Governmental - - - Public Works - - -
Capital Outlay - - -
Total Expenditures - - - Excess (Deficiency) of Revenues
over Expenditures - - -
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - - Net Change in Fund Balances - - - Fund Balance, Beginning of Year 8,564 8,564 -
Fund Balance, End of Year 8,564 $ 8,564$ - $ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Capital Capital Projects Fund Year Ended June 30, 2024
132
16.A.
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental Revenues - $ - $ - $ Charges for Services - - - Investment Income - 43,185 43,185 Total Revenues - 43,185 43,185
EXPENDITURES
Current:
General Governmental - - - Libraries 14,000 9,525 4,475
Capital Outlay - - - Total Expenditures 14,000 9,525 4,475 Excess (Deficiency) of Revenues
over Expenditures (14,000) 33,660 47,660
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances (14,000) 33,660 47,660 Fund Balance, Beginning of Year 1,017,738 1,017,738 -
Fund Balance, End of Year 1,003,73 8$ 1,051,398$ 47,660$ City of Hemet
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - LaSalle Library Endowment Permanent Fund Year Ended June 30, 2024
133
16.A.
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134
16.A.
City of Hemet
Internal Service Funds
INTERNAL SERVICE FUNDS
Administrative Services - Accounts for the central administrative services funded by interdepartmental allocation.
Workers' Compensation - Accounts for the financial transactions of a self-insured workers' compensation program
Medical Insurance - Accounts for the financial transactions of a self-insured em ployer active employee medical, dental and vision insurance program.
Liability Insurance - Accounts for the financial transactions of an external liability program.
OPEB - Accounts for financial transactions of a self-insured employer retiree medical, dental and vision insurance program.
135
16.A.
Workers' Medical
Admin. Compensation Insurance
Services Admin Admin
ASSETS
Current:
Cash and Investments 5,906,746 $ 2,490,654 $ 8,254 $ Accounts Receivable 937 229,865 - Due from Other Funds - - - Due from Other Governments - - - Prepaid Assets 391,980 - - Inventory 138,850 - -
Total Current Assets 6,438,513 2,720,519 8,254
Noncurrent Assets:
Construction in Progress - - - Capital Assets 4,412,107 - - Less Accumulated Depreciation (3,520,790) - - Total Noncurrent Assets 891,317 - - Total Assets 7,329,830 2,720,519 8,254
LIABILITIES
Current Liabilities:
Accounts Payable 343,881 21,198 2,136 Accrued Salaries and Benefits 38,200 1,003 - Due to Other Funds - - - Unearned Revenue 88,000 - - Current Portion of Long-term Liabilities:
Claims Payable - 201,800 5,670 Total Current Liabilities 470,081 224,001 7,806
Noncurrent Liabilities:
Claims Payable - 470,718 -
Total Noncurrent Liabilities - 470,718 - Total Liabilities 470,081 694,719 7,806
NET POSITION
Net Investment in Capital Assets 891,317 - - Unrestricted 5,968,432 2,025,800 448
Total Net Position 6,859,749$ 2,025,800$ 448$
City of Hemet
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
136
16.A.
Liability
Insurance OPEB Total
125,000$ 2,440,902$ 10,971,556$
- - 230,802
- - -
- - -
- - 391,980
- - 138,850
125,000 2,440,902 11,733,188
- - -
- - 4,412,107 - - (3,520,790) - - 891,317
125,000 2,440,902 12,624,505
267,005 12,329 646,549
325 - 39,528
- - -
- 101 88,101
2,650,700 3,422 2,861,592
2,918,030 15,852 3,635,770
6,184,831 - 6,655,549
6,184,831 - 6,655,549
9,102,861 15,852 10,291,319
- - 891,317
(8,977,861) 2,425,050 1,441,869
(8,977,861)$ 2,425,050$ 2,333,186$
137
16.A.
Workers' Medical
Admin. Compensation Insurance
Services Admin Admin
OPERATING REVENUE
Charges for Services 6,701,920 $ 1,657,200 $ 334,185 $ Miscellaneous 88,902 229,865 -
Total Operating Revenue 6,790,822 1,887,065 334,185
OPERATING EXPENSES
Personnel Services 2,141,872 160,263 -
Parts and Supplies 390,318 - -
Maintenance 1,665,402 - -
Utilities 1,010,027 - -
Contracts, Rents and Leases 500,841 56,133 14,252 Insurance 155,200 1,315,539 -
Claims and Judgments 769,536 290,409 317,009 General Office - - - Depreciation 152,708 - -
Total Operating Expenses 6,785,904 1,822,344 331,261 Operating Income (Loss) 4,918 64,721 2,924
NONOPERATING REVENUE (EXPENSES)
Disposal of Capital Assets - - - Total Nonoperating Revenue (Expenses) - - - Income (Loss) Before Transfers
and Capital Contributions 4,918 64,721 2,924
Capital Contributions - - - Transfers In - - - Transfers Out - - - Change in Net Position 4,918 64,721 2,924
Net Position, Beginning 6,854,831 1,961,079 (2,476)
Net Position, Ending 6,859,749$ 2,025,800$ 448$
City of Hemet
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
Year Ended June 30, 2024
138
16.A.
Liability
Insurance OPEB Total
2,243,700$ 5,088,000$ 16,025,005$
550 - 319,317
2,244,250 5,088,000 16,344,322
114,144 13,449 2,429,728
- - 390,318
- - 1,665,402 - - 1,010,027 42,717 - 613,943
3,430,564 4,519,569 9,420,872
4,912,117 - 6,289,071
- - -
- - 152,708
8,499,542 4,533,018 21,972,069
(6,255,292) 554,982 (5,627,747)
- - -
- - -
(6,255,292) 554,982 (5,627,747)
- - -
1,304,938 - 1,304,938
- - -
(4,950,354) 554,982 (4,322,809)
(4,027,507) 1,870,068 6,655,995
(8,977,861)$ 2,425,050$ 2,333,186$
139
16.A.
Workers' Medical
Admin. Compensation Insurance
Services Admin Admin
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from User Departments 6,878,339$ 1,657,200$ 334,185$ Cash Paid to Suppliers for Goods and Services (3,550,087) (1,387,643) (22,053) Cash Paid to Employees for Services (2,117,201) (160,718) - Cash Payments for Insurance and Claims (769,536) (30,089) (347,026) Net Cash From Operating Activities 441,515 78,750 (34,894)
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES
Cash Paid From Other Funds 134,366 - - Cash Paid (to) Other Funds - - - Net Cash From Noncapital and Related
Financing Activities 134,366 - -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (33,702) - - Net Cash From Capital and Related
Financing Activities (33,702) - -
Net Increase (Decrease) in Cash and Cash Equivalents 542,179 78,750 (34,894) Cash and Cash Equivalents, Beginning of the Year 5,364,567 2,411,904 43,148 Cash and Cash Equivalents, End of the Year 5,906,746$ 2,490,654$ 8,254$ Reconciliation of Operating Income (Loss) to
Net Cash from Operating Activities:
Operating Income (Loss) 4,918$ 64,721$ 2,924$ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Depreciation 152,708 - -
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (483) (229,865) - (Increase) Decrease in Prepaid Assets 130,681 - - (Increase) Decrease in Inventory 30,260 - - Increase (Decrease) in Accounts Payable 10,760 (15,971) (7,801) Increase (Decrease) in Accrued Salaries and Benefits 24,671 (455) - Increase (Decrease) in Unearned Revenue 88,000 - - Increase (Decrease) in Claims Payable - 260,320 (30,017) Net Cash from Operating Activities 441,515$ 78,750 $ (34,894) $ City of Hemet
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2024
140
16.A.
Liability
Insurance OPEB Total
2,244,250$ 5,088,000$ 16,201,974$
(3,257,704) (4,497,126) (12,714,613)
(114,459) (13,784) (2,406,162)
(17,659) (8,167) (1,172,477)
(1,145,572) 568,923 (91,278)
1,304,938 101 1,439,405
(134,366) - (134,366)
1,170,572 101 1,305,039
- - (33,702)
- - (33,702)
25,000 569,024 1,180,059
100,000 1,871,878 9,791,497
125,000$ 2,440,902$ 10,971,556$
(6,255,292)$ 554,982$ (5,627,747)$
- - 152,708
- - (230,348) - 20,048 150,729
- - 30,260
215,577 2,395 204,960
(315) (335) 23,566
- - 88,000
4,894,458 (8,167) 5,116,594
(1,145,572)$ 568,923$ (91,278)$
141
16.A.
City of Hemet
Custodial Funds
CUSTODIAL FUNDS
McSweeny - Accounts for the McSweeny dev elopment projects administered by the City on behalf of the McSweeny developers.
Pass Thru Fees - Accounts for the developer fees collected by the City on behalf of the County of Riverside. Those fees are remitted periodically to the County.
Heartland 1999 - 1 CFD 2006 Refunding Series - Accounts for the financial transacting of a special tax bond issue which is financing the off-site improvements of a housing community and a golf course.
142
16.A.
Total
Pass Thru Heartland Custodial
McSweeny Fees CFD 2006 Funds
ASSETS
Cash and Investments - $ 148,446$ - $ 148,446$ Accounts Receivables - - 12,308 12,308 Due from Other Funds - - - - Cash and Investments with Fiscal Agent - - 1,163,994 1,163,994 Total Assets - 148,446 1,176,302 1,324,748
LIABILITIES
Accounts Payable 162,201 184 1,344 163,729 Due to City of Hemet 466,411 - 445,002 911,413 Deposits - - - - Total Liabilities 628,612 184 446,346 1,075,142
NET POSITION
Held for the Benefit of Other Organiztions (628,612) 148,262 729,956 249,606 Total Net Position (628,612) $ 148,262 $ 729,956 $ 249,606 $ City of Hemet
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
June 30, 2024
143
16.A.
Total
Pass Thru Heartland Custodial
McSweeny Fees CFD 2006 Funds
ADDITIONS
Contributions:
Taxes and assessments collected for others - $ 1,613,959$ 771,332 $ 2,385,291 $ Developer Contributions 75,876 - - 75,876 Investment Earnings:
Interest Income 4,489 - 47,516 52,005 Total Additions 80,365 1,613,959 818,848 2,513,172
DEDUCTIONS
Payments on behalf of Others 918,552 - - 918,552 Payments to Other Agencies
for Service Charges Collected - 1,565,301 757,891 2,323,192 Total Deductions 918,552 1,565,301 757,891 3,241,744 Net Increase (decrease) in fiduciary net position (838,187) 48,658 60,957 (728,572) Net Position, beginning of the year 209,575 99,604 668,999 978,178 Net Position, end of the year (628,612)$ 148,262$ 729,956$ 249,606$ City of Hemet
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
Year Ended June 30, 2024
144
16.A.
STATISTICAL SECTION
145
16.A.
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146
16.A.
City of Hemet (unaudited)
Description of Statistical Section Contents
June 30, 2024
This part of the City of Hemet's Annual Comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.
Contents: Pa ges
Financial Trends theses schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time
148
Revenue Capacity these schedules contain information to help the reader assess the City's most significant local revenue source, the property tax
158
Debt Capacity these schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future
163
Demographic and Economic Information these schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place
168
Operating Information these schedules contain service and infrastructure data to help the reader understand how the information in the City's fi nancial report relates to the services the City provides and the activities it performs
170
147
16.A.
City of Hemet
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2015 2016 2017 2018 2019
Governmental activities
Net Investment in Capital Assets 324,343 $ 321,098 $ 315,946 $ 312,748 $ 309,342$ Restricted 39,006 43,671 48,220 55,279 64,207 Unrestricted (53,711) (45,551) (58,471) (95,864) (99,715) Total governmental activities net position 309,638$ 319,218 $ 305,695 $ 272,163 $ 273,834$ Business-type activities
Net Investment in Capital Assets 3,740 $ 3,522 $ 3,898 $ 4,174 $ 3,893$ Restricted - - - - - Unrestricted 3,606 6,550 7,068 (845) 1,868 Total business-type activities net position 7,346 $ 10,072 $ 10,966 $ 3,329 $ 5,761$ Primary government
Net Investment in Capital Assets 328,083$ 324,620 $ 319,844 $ 316,922 $ 313,235$ Restricted 39,006 43,671 48,220 55,279 64,207 Unrestricted (50,105) (39,001) (51,403) (96,709) (97,847) Total primary government net position 316,984$ 329,290 $ 316,661 $ 275,492 $ 279,595$ Source: City of Hemet
Statistical Table 1
148
16.A.
City of Hemet
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Governmental activities
Net Investment in Capital Assets
Restricted
Unrestricted
Total governmental activities net position
Business-type activities
Net Investment in Capital Assets
Restricted
Unrestricted
Total business-type activities net position
Primary government
Net Investment in Capital Assets
Restricted
Unrestricted
Total primary government net position
Source: City of Hemet
2020 2021 2022 2023 2024
308,639$ 303,775 $ 302,783 $ 308,207 $ 314,486$
67,601 53,804 $ 60,649 $ 62,663 $ 69,728$ (105,649) (78,520)$ (54,833) $ (37,757) $ (29,072)$ 270,591$ 279,059$ 308,599 $ 333,113 $ 355,142$
4,532$ 3,973 $ 3,146 $ 2,599 $ 2,265$ - - $ - $ - $ - $ 14,760 19,623 $ 20,282 $ 24,877 $ 29,207$ 19,292$ 23,596 $ 23,428 $ 27,476 $ 31,472$ 313,171$ 307,748$ 305,929 $ 310,806 $ 316,751$
67,601 53,804 60,649 62,663 69,728 (90,889) (58,897) (34,551) (12,880) 135 289,883$ 302,655$ 332,027 $ 360,589 $ 386,614$
Statistical Table 1
149
16.A.
City of Hemet
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2015 2016 2017 2018 2019
Expenses
Governmental activities:
General government 3,053 $ 1,142 $ 2,777 $ 3,511 $ 6,181$ Public Safety 28,947 21,566 34,746 43,067 40,916 Community development 5,325 3,952 4,874 5,729 5,535 Public Works 12,139 11,652 11,696 13,766 11,962 Sanitation 2,201 2,070 2,048 2,248 2,167 Parks 843 1,015 1,176 1,407 1,205 Libraries 1,855 1,788 2,085 2,125 2,026 Interest and related charges on long-term debt - - - - Total governmental activities expenses 54,363 43,186 59,402 71,853 69,992 Business-type activities:
Refuse - - - - - Water 7,919 7,643 9,966 12,052 9,261 Total business-type activities expenses 7,919 7,643 9,966 12,052 9,261 Total primary government expenses 62,282$ 50,829 $ 69,368 $ 83,905 $ 79,253$ Program Revenues
Governmental activities:
Charges for services:
General government 600$ 586 $ 602 $ 759 $ 793$ Public safety 681 760 1,207 1,289 1,049 Community development 3,197 2,674 2,261 2,824 2,824 Public Works 2,577 2,724 3,542 3,912 3,944 Sanitati
on 2,876 3,412 3,918 4,003 3,969 Other activities 44 2,764 58 159 141 Operating grants and contributions 2,742 3,349 2,559 2,719 2,455 Capital grants and contributions 7,211 7,658 6,220 6,503 7,962 Total government activities program revenues 19,928 23,928 20,367 22,168 23,137 Business-type activities
Charges for services:
Water 7,090 10,306 11,460 10,602 11,445 Operating grants and contributions - - - - - Capital grants and contributions - - - - - Total business-type activities program revenues 7,090 10,306 11,460 10,602 11,445 Total primary government program revenues 27,018$ 34,234 $ 31,827 $ 32,770 $ 34,582$ Statistical Table 2
150
16.A.
City of Hemet
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Expenses
Governmental activities:
General government
Public Safety
Community development
Public Works
Sanitation
Parks
Libraries
Interest and related charges on long-term debt
Total governmental activities expenses
Business-type activities:
Refuse
Water
Total business-type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
General government
Public safety
Community development
Public Works
Sanitation
Other activities
Operating grants and contributions
Capital grants and contributions
Total government activities program revenues
Business-type activities
Charges for services:
Water
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues
Total primary government program revenues
2020
2021 2022 2023 2024
4,142$ 1,964 $ 2,343 $ 3,633 $ 5,369$
48,122 46,711 42,656 55,036 62,053
5,056 5,420 6,065 6,708 5,812 12,526 10,728 9,011 13,442 10,712
1,838 2,437 2,846 2,925 2,712 1,433 1,052 1,513 1,020 1,244 1,884 1,892 1,487 1,993 2,075 - - - - - 75,001 70,204 65,921 84,756 89,977
- - - - - 9,845 10,222 9,687 10,395 11,858 9,845 10,222 9,687 10,395 11,858 84,846$ 80,426 $ 75,608 $ 95,151 $ 101,835$
510$ 2,589 $ 2,539 $ 3,157 $ 3,111$
1,134 1,892 4,876 17,039 5,430
2,482 251 244 288 267 4,531 6,926 10,159 10,047 11,444
4,372 4,339 4,131
5,069 5,660
28 2 12 16 18 2,005 4,039 3,136 2,821 4,119 7,890 7,758 12,105 11,567 16,140
22,952 27,796 37,202 50,004 46,189
11,993 12,114 14,073 14,017 14,380
10,416 - - - - - - - - - 22,409 12,114 14,073 14,017 14,380
45,361$ 39,910 $ 51,275 $ 64,021 $ 60,569$
Statistical Table 2
151
16.A.
City of Hemet
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2015 2016 2017 2018 2019
Net (expense)/revenue
Governmental activities (34,972) $ (30,431) $ (39,034) $ (49,685) $ (46,855)$ Business-type activities (107) 2,410 1,495 (1,450) 2,185 Total primary government net expense (35,079) $ (28,021) $ (37,539) $ (51,135) $ (44,670)$ General Revenues and Other Changes in
Net Positon
Governmental activities:
Taxes
Property taxes 6,207 6,208 6,485 7,123 7,718 Transient occupancy taxes 643 854 963 1,026 975 Sales taxes* 11,043 12,275 14,175 23,446 24,986 Motor vehicle in lieu taxes 4,996 5,715 6,061 6,393 6,786 Franchise and other taxes 4,875 5,053 4,964 5,048 5,117 Investment income 565 1,415 194 403 2,425 Miscellaneous 184 765 439 649 357 Gain on Sale of Capital Assets - - - - - Transfers (187) 205 350 138 163 Total governmental activities 28,327 32,490 33,631 44,226 48,527 Business-type activities
Investment income 71 166 (25) 21 350 Gain (loss) on sale/disposal of assets - - - - - Miscellaneous 176 84 45 81 60 Transfers 187 (205) (350) (138) (163) To
tal business-type activities 434 45 (330) (36) 247 Total primary government 28,760$ 32,535 $ 33,301 $ 44,190 $ 48,774$ Change in Net Position
Governmental activities (6,646)$ 2,059$ (5,403)$ (5,459)$ 1,672$ Business-type activities 327 2,455 1,165 (1,487) 2,432 Total primary government (6,319)$ 4,514$ (4,238)$ (6,946)$ 4,104$ *Sales taxes are one of the highest revenue generating items for the City. This includes, Sales and Use Tax (including Mea Statistical Table 2
152
16.A.
City of Hemet
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Net (expense)/revenue
Governmental activities
Business-type activities
Total primary government net expense
General Revenues and Other Changes in
Net Positon
Governmental activities:
Taxes
Property taxes
Transient occupancy taxes
Sales taxes*
Motor vehicle in lieu taxes
Franchise and other taxes
Investment income
Miscellaneous
Gain on Sale of Capital Assets
Transfers
Total governmental activities
Business-type activities
Investment income
Gain (loss) on sale/disposal of assets
Miscellaneous
Transfers
Total business-type activities
Total primary government
Change in Net Position
Governmental activities
Business-type activities
Total primary government
*Sales taxes are one of the highest revenue generati
n
2020 2021 2022 2023 2024
(51,151)$ (42,408) $ (28,719) $ (34,762) $ (43,789)$ 12,563 1,892 4,386 3,622 2,522
(38,588)$ (40,516) $ (24,333) $ (31,140) $ (41,267)$ 7,919 8,028 8,676 9,389 10,276 770 891 1,039 942 953 25,352 32,268 35,066 34,056 33,143
7,073 7,394 7,758 8,547 9,427 5,173 5,491 5,848 5,599 6,323 957 303 (441) 271 4,970 223 42 254 279 437 - - - - 290 243 248 27 151 - 47,710 54,665 58,227 59,234 65,819
226 (2) (494) 578 1,474 - - - - - 16 - - - - (243) (248) (27) (151) - (1) (250) (521) 427 1,474 47,709$ 54,415
$ 57,706 $ 59,661 $ 67,293$
(3,441)$ 12,259$ 29,508 $ 24,473 $ 22,029$
12,562 1,641 3,864 4,048 3,996
9,121$ 13,900$ 33,372 $ 28,521 $ 26,025$
sure U) and Measure A.
Statistical Table 2
153
16.A.
City of Hemet
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2015 2016 2017 2018 2019
General Fund
Nonspendable 13 7 7 4 8 Restricted 1,075 1,253 2,469 1,253 12,805 Committed 7,288 7,727 8,295 9,303 8,214 Assigned 314 215 215 215 134 Unassigned 8,226 6,084 1,882 5,920 1,086 Total general fund 16,916$ 15,287 $ 12,868 $ 16,695 $ 22,247$ All other governmental funds
Nonspendable 1,000 1,000 1,000 1,000 1,000 Restricted 36,931 41,418 43,536 46,330 50,374 Committed - - - - - Assigned 4,759 6,586 6,350 4,081 4,056 Unassigned, reported in:
Special revenue funds (276) (297) (81) (180) (191) Capital projects funds - - - - - Total all other governmental funds 42,414$ 48,707 $ 50,805 $ 51,231 $ 55,239$ Source: City of Hemet
Statistical Table 3
154
16.A.
City of Hemet
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds
Nonspendable
Restricted
Committed
Assigned
Unassigned, reported in:
Special revenue funds
Capital projects funds
Total all other governmental funds
Source: City of Hemet
2020 2021 2022 2023 2024
660 665 2,114 2,137 2,000 1,316 1,499 1,926 1,524 2,194 20,921 23,776 26,387 26,632 38,784
890 1,945 1,749 3,106 8,328 2,926 11,710 21,884 30,214 20,684
26,713 $ 39,595 $ 54,060 $ 63,613$ 71,990$
1,000 1,000 1,000 1,000 1,000 51,884 57,161 66,894 69,796 53,422
- - - 5,861 - 3,776 3,906 4,250 7,833 6,326 (264) (102) (91) (716) (394) - - -
56,396 $ 61,965 $ 72,053 $ 83,774$ 60,354$
Statistical Table 3
155
16.A.
City of Hemet
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2015 2016 2017 2018 2019
Revenues
Taxes 30,083 $ 31,725 $ 34,284 $ 44,799 $ 47,526$ Licenses and permits 2,119 1,974 1,679 1,784 1,968 Intergovernmental revenues 6,638 6,712 5,677 5,792 5,854 Charges for services 8,966 9,988 10,393 11,307 11,152 Fines and forfeitures 379 412 443 491 446 Investment income 558 1,430 197 402 2,425 Other contributions - - - - - Miscellaneous 646 3,823 679 1,261 2,204 Total revenues 49,389 56,064 53,352 65,836 71,575 Expenditures
General government 2,812 2,307 2,103 2,195 5,148 Public safety 28,017 30,339 32,497 38,450 35,908 Community development 5,248 4,793 4,844 4,856 5,057 Public works 5,562 5,738 5,488 8,804 6,076 Sanitation 2,162 2,035 1,999 2,193 2,104 Parks 850 1,120 1,205 1,248 1,153 Libraries 1,419 1,506 1,642 1,600 1,486 Capital outlay 4,776 3,772 2,457 2,193 4,002 Debt servi
ce
Principal - - - - - Interest - - - - - SERAF Obligation - - - - - Fiscal-administrative charges - - - - - Total expenditures 50,846 51,611 52,235 61,539 60,934 Excess (deficiency) of
revenues over expenditures (1,457) 4,453 1,117 4,297 10,641 Other financing sources (uses)
Proceeds from Sale of Assets - - - - - Transfers in 1,231 713 325 467 183 Transfers out (1,231) (490) (1,086) (513) (1,264) Issuance of debt 8 11 - - - Total other financing sources 8 234 (761) (46) (1,081) (uses)
Net change in fund balances (1,449)$ 4,687$ 356$ 4,251$ 9,560$ Debt service as a percentage of
noncapital expenditures 0.00% 0.00% 0.00% 0.00% 0.00%
Source: City of Hemet
Statistical Table 4
156
16.A.
City of Hemet
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Revenues
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Investment income
Other contributions
Miscellaneous
Total revenues
Expenditures
General government
Public safety
Community development
Public works
Sanitation
Parks
Libraries
Capital outlay
Debt service
Principal
Interest
SERAF Obligation
Fiscal-administrative charges
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources (uses)
Proceeds from Sale of Assets
Transfers in
Transfers out
Issuance of debt
Total other financing sources
(uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
Source: City of Hemet
2020 2021 2022 2023 2024
48,194$ 46,678 $ 53,402 $ 52,888 $ 53,495$ 5,371 2,104 4,287 4,433 5,503 5,495 10,157 17,994 30,313 24,783 7,248 3,234 19,740 18,383 19,617 336 234 199 276 172 1,815 299 (1,335) 1,276 7,474 - - - - - 1,960 8 1,150 350 535 70,419 62,714 95,437 107,919 111,580 2,235 2,390 5,150 3,720 2,498 40,448 42,039 44,467 50,580 57,844 4,593 5,420 6,065 6,708 6,407 5,795 5,125 5,167 5,866 6,037 1,879 2,437 2,846 2,925 2,990 1,295 1,052 1,513 1,020 1,371 1,540 1,587 1,181 1,687 1,944 7,508 4,127 4,977 14,760 14,735 - - -
- -
- - - - - - - - - - - - - - - 65,293 64,177 71,366 87,266 93,826 5,126 (1,463) 24,071 20,654 17,755 - - - 468 353 1,876 27 538 171 886 (1,379) (2) (55) (20) (2,191) -
497 25 483 619 (952) 5,623$ (1,438)$ 24,554 $ 21,273 $ 16,801$
0.00% 0.00% 0.00% 0.00% 0.00%
Statistical Table 4
157
16.A.
City of Hemet
Own Source Revenue
Governmental Activities Property Tax Revenue
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Property
Year Tax
2015 5,381
2016 5,916
2017 6,136
2018 6,804
2019 7,392
2020 7,592
2021 7,650
2022 7,943
2023 8,579
2024 9,833
Statistical Table 5
158
16.A.
City of Hemet
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Taxable Taxable Highest
Fiscal Less Assessed Less Assessed Direct Tax
Year Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate 2015 4,706,629,409 160,264,993 (145,097,337) 4,721,797,065 1,402,028,714 66,989,353 N/A** N/A** 0.24552 2016 4,989,091,509 157,483,240 (153,462,996) 4,993,111,753 1,472,420,756 64,336,968 N/A** N/A** 0.24552 2017 5,294,563,351 166,151,715 (159,158,493) 5,301,556,573 1,554,120,090 66,302,157 N/A** N/A** 0.24552 2018 5,738,442,456 173,750,554 (152,501,372) 5,759,691,638 1,632,333,531 67,103,391 N/A** N/A** 0.24552 2019 5,891,505,336 190,128,633 (164,926,297) 5,916,707,672 1,709,804,561 78,020,649 N/A** N/A** 0.24552 2020 6,150,877,556 190,147,395 (169,524,075) 6,171,500,876 1,794,064,122 76,990,710 N/A** N/A** 0.24552 2021 6,451,235,055 187,135,933 (178,728,139) 6,459,668,559 1,856,098,890 77,009,200 N/A** N/A** 0.24552 2022 6,748,837,124 185,630,583 (185,385,214) 6,748,412,303 1,924,292,110 78,939,139 N/A** N/A** 0.24552 2023 7,460,126,502 185,696,825 (196,544,968) 7,448,557,204 2,080,173,341 77,763,054 N/A** N/A** 0.24552 2024 8,191,982,684 208,152,931 (192,338,295) 8,207,459,940 2,349,320,193 81,991,732 N/A** N/A** 0.24552 NOTE:
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. **The State of California dissolved all Redevelopment Agencies effective 02/01/2012. All activity for the wind down of the Agencies was moved to a Successor Agency.
Source: Riverside County Auditor-Controller
City Redevelopment
Statistical Table 6
159
16.A.
City of Hemet
Property Tax Rates
Direct and Overlapping Governments
Per $100 of Assessed Value
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City Direct Rates:
City of Hemet Basic Area 0.24552 0.24552 0.24552 0.24552 0.24552 0.24552 0.24552 0.24552 0.24547 0.37274 Overlapping Rates:
Hemet Unified School 0.30653 0.30653 0.30653 0.30653 0.30653 0.30653 0.30653 0.30653 0.30650 0.30650 County General 0.25433 0.25433 0.25433 0.25433 0.25433 0.25433 0.25433 0.25433 0.25437 0.12710 Eastern Municipal Water District 0.04435 0.04435 0.04435 0.04435 0.04435 0.04435 0.04435 0.04435 0.04440 0.04440 Flood control Zone 4 0.03923 0.03923 0.03923 0.03923 0.03923 0.03923 0.03923 0.03923 0.03920 0.03920 Riv. Co. Office of Education 0.03641 0.03641 0.03641 0.03641 0.03641 0.03641 0.03641 0.03641 0.03640 0.03640 Mt. San Jacinto Junior College 0.03527 0.03527 0.03527 0.03527 0.03527 0.03527 0.03527 0.03527 0.03530 0.03530 Eastern Municipal Water Improvement Dist 17 0.01665 0.01665 0.01665 0.01665 0.01665 0.01665 0.01665 0.01665 0.01665 0.01665 Valley Wide Recreation & Park District 0.01455 0.01455 0.01455 0.01455 0.01455 0.01455 0.01455 0.01455 0.01455 0.01455 San Jacinto Valley Cemetery 0.00458 0.00458 0.00458 0.00458 0.00458 0.00458 0.00458 0.00458 0.00458 0.00458 Flood Control Administration 0.00238 0.00238 0.00238 0.00238 0.00238 0.00238 0.00238 0.00238 0.00238 0.00238 San Jacinto Basin Resource Conservation 0.00020 0.00020 0.00020 0.00020 0.00020 0.00020 0.00020 0.00020 0.00020 0.00020 Proposition 13 Rate 1.00000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Bond issues:
Hemet Unified School District Debt Sv 0.11991 0.13729 0.12409 0.11019 0.10173 0.11571 0.11876 0.12323 0.12000 0.12000 Metropolitan Water District Debt Sv 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.00350 0.00350 Total Rate 1.12341 1.14079 1.12759 1.11369 1.10523 1.11921 1.12226 1.12673 1.12350 1.12350 NOTE:
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount.
This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of Hemet Unified School District Debt Service and Metropolitan Water District Debt Service.
Ratios for tax rate area 006-001, excluding Redevelopment factors the average tax rate in City of Hemet Basic Area is approximately .17 prior to the ERAF shifts Source: HDL, Coren & Cone
Riverside County Auditor-Controller
Statistical Table 7
160
16.A.
City of Hemet
Principal Property Taxpayers
Current Fiscal Year and Nine Years Ago
Percent of Percent of
Total City Total City
Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
TIG Devonshire LLC 55,858,371 $ 1 0.68% - - Physicians for Healthy Hospitals Inc 51,030,176 2 0.62% - - Freedom Properties Hemet 48,441,877 3 0.59% - - Granite Village West LP 48,372,617 4 0.59% - - Walmart Real Estate Business Trust 37,782,948 5 0.46% - - FFLP CC 34,935,465 6 0.43% - - 551 N Santa Fe St LLC 31,535,352 7 0.38% - - Providence Hemet Apts 30,487,372 8 0.37% - - CBYW Hemet ILF PROPCO LP 28,969,985 9 0.35% - - Spectrum Pacific West 6,957,053 10 0.08% - - PHH Real Estate - - 43,339,152 1 0.92% Freedom Properties Hemet - - 40,547,024 2 0.86% MCS Hemet Valley Center - - 33,442,153 3 0.71% Grainte Village West LP - - 33,380,409 4 0.71% FFLP CC - - 29,645,940 5 0.63% Walmart Real Estate Business Trust - - 26,439,448 6 0.56% James J. Femino - - 28,853,774 7 0.61% Merrill Gardens - - 26,201,775 8 0.55% Time Warner Cable - - 6,151,199 9 0.13% Essex JMS Acquisition - - 17,823,668 10 0.38% 374,371,216$ 4.6% 285,824,542 $ 6.1%
Source: HDL, Coren & Cone
20152024
Statistical Table 8
161
16.A.
City of Hemet
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal City Redevelopment Successor Agency City Redevelopment Perce ntage Collection of Percentage Year Tax Levy Tax Increment Tax Increment Amount Amount * of Levy Deli nquent taxes Amount of Levy 2015 4,722 - 10,589 4,709 - 99.71% 240 4,949 104.79% 2016 4,965 - 10,714 4,960 - 99.89% 280 5,240 105.53% 2017 5,240 - 10,652 5,285 - 100.86% 214 5,499 104.95% 2018 5,514 - 10,683 5,552 - 100.68% 255 5,806 105.30% 2019 5,809 - 10,667 5,896 - 101.50% 193 6,088 104.81% 2020 6,146 - 10,675 6,083 - 98.98% 164 6,247 101.65% 2021 6,373 - 10,671 6,430 - 100.89% 169 6,599 103.54% 2022 6,648 - 10,673 6,734 - 101.29% 224 6,957 104.65% 2023 7,339 - 10,672 7,228 - 98.49% 71 7,299 99.46% 2024 7,960 10,673 8,017 100.72% 170 8,188 102.86% NOTE:
The amounts presented include City property taxes and Redevelopment Agency tax increments. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed-through to other agencies. * The Redevelopment amount is Gross Tax Increment received which includes pass through amounts to other agencies. approximately 43% of the Redevelopm
ent amount collected is available for the Redevelopment Agency **The State of California dissolved all Redevelopment Agencies effective 02/01/2012. All activity for the wind down of the Agencies was moved to a Successor Agency.
Since Successor Agency increment is only enough to cover annual costs of the wind down process, these amounts are excluded from the collection data.
Source: Riverside County Auditor Controller
HDL, Coren & Cone
Including Deliquencies
Collected within the
Fiscal Year of the Levy
Total Collections to Date
Statistical Table 9
162
16.A.
City of Hemet
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) Water Total Percentage
Fiscal Certificates 1999 2002 Notes SBITA Revenue Capital Certificates Primary of Personal Per Year of Participation TAB TAB Payable Payable Bonds Leases of Participation Government Income Capita 2015 - * * - - - - - - 0.00% - 2016 - * * - - - - - - 0.00% - 2017 - * * - - - - - - 0.00% - 2018 - * * - - - - - - 0.00% - 2019 - * * - - - - - - 0.00% - 2020 - * * - - - - - - 0.00% - 2021 - * * - - - - - - 0.00% - 2022 - * * - - - - - - 0.00% - 2023 - * * - 438,618 - - - - 0.00% - 2024 - * * - 150,797 - - - - 0.00% - NOTE:
* 1999 and 2002 Tax Allocation Bonds are no longer reported as part of the primary government.
Sources: City of Hemet Financial Statements
State of California Franchise Tax Board
State Department of Finance
Governmental Activities Business-Type Activities
Statistical Table 10
163
16.A.
City of Hemet
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) General Tax
Fiscal Obligation Allocation Percentage of Per
Year Population Bonds Bonds Total Assessed Value * Capita 2015 82,253 - ** - 0.00% - 2016 80,070 - ** - 0.00% - 2017 81,868 - ** - 0.00% - 2018 83,166 - ** - 0.00% - 2019 84,754 - ** - 0.00% - 2020 85,175 - ** - 0.00% - 2021 84,525 - ** - 0.00% - 2022 89,646 - ** - 0.00% - 2023 89,918 - ** - 0.00% - 2024 89,663 - ** - 0.00% - General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). * Assessed value has been used bec ause the actual value of taxable property is not readily available in the State of California.
** 1999 and 2002 Tax Allocation Bonds are no longer reported as part of the primary government.
Statistical Table 11
164
16.A.
City of Hemet
Direct and Overlapping Governmental Activities Debt
as of June 30, 2024
2023-2024 Assessed Valuation: 8,208,819,936 $
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2024 % Applicable (1) Debt 6/30/24 Metropolitan Water District $18,210,000 0.21% 38,605$
Eastern Municipal Water District, I.D. No. 24 30 51908.00% 15,572$ Eastern Municipal Water District, I.D. No. U12 175,000 1.86% 3,253$ Eastern Municipal Water District, I.D. No. U18 105,000 100.000% 105,000$ Eastern Municipal Water District, I.D. No. U21 80,000 12.79% 10,230$ Mt. San Jacinto Community College District 242,210,000 6.31% 15,288,295$ Hemet Unified School District 244,140,000 50.16% 122,465,507$ San Jacinto Unified School District 72,650,000 6.30% 4,573,318$ Hemet Unified School District Community Facilities District No. 2004-1 2,335,000 100.000% 2,335,000$ Hemet Unified School District Community Facilities District No. 2005-2, 3 & 4 15,760,000 100.000% 15,760,000$ Hemet Unified School District Community Facilities District No. 2020-3 3,065,000 100.000% 3,065,000$ Hemet Unified School District Community Facilities District No. 2020-4 3,355,000 100.000% 3,355,000$ Hemet Unified School District Community Facilities District No. 2021-1 5,605,000 100.000% 5,605,000$ Hemet Unified School District Community Facilities District No. 2021-7 7,240,000 100.000% 7,240,000$ San Jacinto Unified School District Community Facilities District No. 2005-4 6,775,000 29.185% 1,977,284$ Eastern Municipal Water District Community Facilities District No. 2001-02 2,445,000 100.000% 2,445,000$ Eastern Municipal Water District Community Facilities District No. 2004-27 5,000,000 100.000% 5,000,000$ Eastern Municipal Water District Community Facilities District No. 2005-38 1,810,000 100.000% 1,810,000$ Eastern Municipal Water District Community Facilities District No. 2006-56 3,320,000 100.000% 3,320,000$ Eastern Municipal Water District Community Facilities District No. 2003-20 597,006 100.000% 597,006$ City of Hemet Community Facilities District No. 1999-1 4,855,000 100.000% 4,855,000$ Cali
fornia Statewide Communities Development Authority -$
Community Facilities District No 2018-2 I.A. No. 1 16,415,000 100.000% 16,415,000$ TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 216,279,071$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Riverside County General Fund Obligations $652,187,035 2.069% 13,493,750$ Riverside County Pension Obligations 670,785,000 2.069% 13,878,542 Riverside County Flood Control District, Zone No. 4 2,755,000 10.246% 282,277 Hemet Unified School District Certificates of Participation 33,320,000 50.162% 16,713,978 San Jacinto Unified School District Certificates of Participation 37,665,000 6.295% 2,371,012 City of Hemet 0 100.000% 0
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 46,739,559$ Less: Riverside County Administrative Center Authority (100% self-supporting from tax increment revenues) -
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 46,739,559$ OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
Hemet Redevelopment Agency Tax Allocation Bonds 6,175,000 100.000% 6,175,000 Riverside County Project Areas Tax Allocation Bonds 307,770,065 0.435-4.736% 3,109,136 TOTAL OVERLAPPING TAX INCREMENT DEBT 9,284,136
DIRECT DEBT
SOFTWARE SUBSCRIPTION LIABILITY 150,797 100.000% 150,797 150,797
TOTAL DIRECT DEBT 150,797
TOTAL GROSS OVERLAPPING DEBT 272,302,765
TOTAL NET OVERLAPPING DEBT 272,302,765
GROSS COMBINED TOTAL DEBT 272,453,562$ (2)
NET COMBINED TOTAL DEBT 272,453,562$
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
Ratios to 2022-23 Assessed Valuations
:
Total Overlapping Tax and Assessment Debt 2.63%
Total Direct Debt 0.00%
Gross Combined Total Debt 3.32%
Net Combined Total Debt 3.32%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($2,197,289,533):
Total Overlapping Tax Increment Debt 0.42%
Source: California Municipal Statistics, Inc.
Statistical Table 12
165
16.A.
City of Hemet
Legal Debt Margin Information
Last Ten Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Debt Limit 171,057,453 $ 181,336,069 $ 192,577,682 $ 203,270,441 $ 214,746,714 $ 224,300,756 $ 235,219,009 $ 246,129,447 $ 272,384,308 $ 299,985,540 $ Total net debt applicable to limit - - - - - - - - - - Legal debt margin 171,057,453 $ 181,336,069 $ 192,577,682 $ 203,270,441 $ 214,746,714 $ 224,300,756 $ 235,219,009 $ 246,129,447 $ 272,384,308 $ 299,985,540 $ Total net debt applicable to the limit
as a percentage of debt limit - - - - - Legal Debt Margin Calculation for Fiscal Year 2024:
Assessed Value 7,999,614,389 $
Debt limit (3.75% of assessed value) 299,985,540$
Debt applicable to limit:
General obligation bonds
Legal debt margin 299,985,540 $
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.
However, this provision was enacted when assessed valuation was based upon 25% of market value.
Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). Although the statutory debt limit has not been amended by the State since this change, the percentage presented in the above computations have been proportionately modified to 3.75% (25% of 15%) for the purpose of this calculation in order to be consistent with the computational effect of the debt limit at the time of the state's establishment of the limit.
Source: Riverside County Assessor's Office
Statistical Table 13
166
16.A.
City of Hemet
Pledged-Revenue Coverage
Last Ten Fiscal Years
(in thousands)
Fiscal Year Less Net
Ended Net Tax Water Operating Available
June 30 Increment Principal Interest Coverage Revenue Expenses Revenue Principal Interest Coverage 2015 992 465 619 0.92 - - - - - - 2016 956 580 359 1.02 - - - - - - 2017 1,693 470 411 1.92 - - - - - - 2018 935 485 394 1.06 - - - - - - 2019 905 505 375 1.03 - - - - - - 2020 899 530 365 1.00 - - - - - - 2021 962 545 330 1.10 - - - - - - 2022 829 575 302 0.95 - - - - - - 2023 2 610 272 0.00 - - - - - - 2024 850 635 241 0.97 Water Revenue Bond paid off in Fiscal year ending 6/30/2009 * 1999 and 2002 Tax Allocation Bonds are no longer reported as part of the primary government.
Source: City of Hemet Financial Statements
Debt Service Debt Service
Tax Allocation Bonds* Water Revenue Bonds
Statistical Table 14
167