Imperial City Council
January 21, 2026

City of Imperial Council Agenda
January 21, 2026
Imperial City Council
Ida Obeso-Martinez – Mayor Pro-Tem
Stacy Mendoza – Mayor Pro-Tem
Katherine Burnworth – Council Member
Robert Amparano – Council Member
James Tucker – Council Member
AGENDA
Regular Meeting of the Imperial City Council
City Council Chambers
220 West 9th Street
Imperial, CA 92251-1637
January 21, 2026
Closed Session at 06:00 pm
Open Session at 07:00 pm
The City Council meetings are live-streamed on the City’s Facebook page at www.facebook.com/cityofimperial. By remaining in the room, you are giving permission to be recorded.

Public Comments: Members of the public who wish to speak are encouraged to fill out a Speaker Slip and submit it to the City Clerk before the start of the meeting. Public comments are limited to 3 minutes.

Comments may also be submitted by email to [email protected] no later than 5:00 p.m., the day of the meeting.

Americans with Disabilities Act: Requests for special assistance to participate in the meeting, please contact the City Clerk’s Office by calling (760) 355-5303 or emailing [email protected].

Notification of 48 hours before the meeting will enable the city to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA title II].

All documents with executive summaries and staff recommendations for open session action items are available on the City’s website 72 hours before the meeting www.https://cityofimperial.org/cc-agendaarchive. Supplemental writing distributed to the City Council within 72 hours of the meeting will also be posted online. Written materials shared during the meeting will be available there if prepared by the city or afterward if prepared by others. These materials can be obtained from the City Clerk’s Office. 6:00 P.M. CLOSED SESSION

ROLL CALL
PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY: At this time, members of the public may address the City Council on Closed Session items. Pursuant to State Law, the City Council may not discuss or take action on issues not on the meeting agenda (Government Code Section 54954.2). If you are compensated to communicate with City officials, you may be required to register and/or make certain disclosures as a lobbyist. Please see the City Clerk for additional information. There is a time limit of three (3) minutes for anyone wishing to address the City Council on these matters.

City of Imperial Council Agenda
January 21, 2026

CITY COUNCIL ADJOURNS INTO CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL: The City Council finds, based on advice from the City Attorney, that discussion in open session of the following described matter(s) will prejudice the position of the City in existing and anticipated litigation.

CONFERENCE WITH LEGAL COUNCIL ANTICIPATED LITIGATION
Initiation of Litigation pursuant to California Government Code §54956.9(c) Potential Cases: 1 item.

CONFERENCE WITH LEGAL COUNCIL – EXISTING LITIGATION G.C §54956.9(d)(1) i. Novalk, LLC v. City of Imperial et. al, United States District Court for the Southern District of California, 25CV2307 BAS DDL
ii. City of Imperial vs. Imperial Valley Computer Manufacturing LLC, et al, Imperial County Superior Court Case No ECU004457
iii. Imperial Valley Manufacturing, LLC vs. City of Imperial, United States District Court for the Southern District of California Case No 26CV128 JLS BJW.

CONFERENCE WITH REAL PROPERTY NEGOTIATORS- G.C.§ 54956.8 Property Address: 063-054-038 Agency Negotiator: City Manager Negotiating Parties: entity controlled by Minerva Kelada, Under Negotiation: Price and Terms CONFERENCE WITH LABOR NEGOTIATORS G.C. §54957.6
Agency Representatives: City Manager
Employee Organization: Imperial Police Officers Association, Teamsters Local 542 & Employee Organization Management Supervisory, Professional, Confidential, and Police Captain/Unrepresented 7:00 P.M. REGULAR MEETING

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE
ADJUSTMENTS TO THE AGENDA: The City Council may amend the order, add urgency items, note abstentions or “no” votes on consent calendar items, and request consent calendar items be removed from the consent calendar for discussion. The City Council may also remove items from the consent calendar before that portion of the agenda. The City Council may address these issues by entertaining a formal motion.

CITY ATTORNEY REPORT ON CLOSED SESSION
PUBLIC COMMENT: If you wish to address the City Council concerning any item within the City Council’s jurisdiction, please raise your hand and be acknowledged by the mayor. At that time, state your name and address for the record. The mayor reserves the right to place a time limit of three (3) minutes on each person’s presentation.

City of Imperial Council Agenda
January 21, 2026
A. PRESENTATIONS
A-1. Q1 Budget Presentation by Finance Director Victor Manriquez.

B. CONSENT AGENDA: All items appearing under the “Consent Agenda” will be acted upon by the City Council with one motion without discussion. Should any Council member or other person request that any item be considered separately that item will then be taken up at the time as determined by the mayor.

B-1. Approval of Warrants Report.

B-2. Approve City Council Minutes for the regular meeting of December 17, 2025.

B-3. Receive and file the attached Fiscal Year 2024 Independent Audit Report.

B-4. Acceptance of an 80-ft reservation of portion of Belford Rd and SR-86, APN 063-054-038.

C. ACTION ITEMS (DISCUSSION/ACTION):

C-1. City Council Committee Appointments for the 2026 calendar year.

Presenter: Mayor Obeso-Martinez
Recommendation: Consider and approve the appointments as recommended by Mayor ObesoMartinez for the 2026 calendar year.

C-2. Reject all bids for the Wastewater Treatment Plant Demolition Project and authorize re-bidding.

Presenter: Jenell Guerrero, Public Services Manager
Recommendation: Reject all bids for the Wastewater Treatment Plant Demolition Bid 2025-19, CIP 849, and authorize staff to re-bid the project.

D. REPORTS:

D-1. Department Reports
D-2. City Manager Report
D-3. Mayor and Councilmember Reports
ADJOURNMENT: The next regular meeting of the Imperial City Council will be held on Wednesday, February 4, 2026.

CITY OF IMPERIAL
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
US BANK Page: 1
Time: 3:18 pm
Date: 01/13/2026
Void/Stop
Date
Reconcile
Date
US BANK Checks
ACADEMI AWARDS & 23.82

TROPHIES
129936 01/07/26 Printed 735 8715
AGGREGATE PRODUCTS, 1,805.23
INC.
129937 01/07/26 Reconciled 01/12/26 1021 60960 86254
ALL VALLEY FENCE AND 82.97

MATERIALS
129938 01/07/26 Printed 2357 25-2508 85997
129942 01/07/26 Printed 5956 AMAZON CAPITAL SERVICES 1NDW-K4YL-PNJG 85775 5,007.74 AMERICAN FIDELITY 6,032.24

ASSURANCE
129943 01/07/26 Printed 6306 D920607 DEC 2025 86108
AMERICAN WATER WORKS 111.00
ASSOC
129944 01/07/26 Printed 3115 SO250580 86259
129945 01/07/26 Printed 656 AQUA METRIC INV0111224 86268 44,812.87 BABCOCK LABORATORIES, 6,490.58
INC.
129948 01/07/26 Printed 4400 LL50007-8203 86271
129949 01/07/26 Reconciled 01/12/26 3869 BASE HILL INC. 26607 86267 14,541.00 129950 01/07/26 Printed 250 BLUE SHIELD OF CALIFORNIA 253490045144 JAN 2026 86107 70,330.65 129951 01/07/26 Printed 7158 BLUETARP FINANCIAL, INC. J40986 86078 844.26 129952 01/07/26 Printed 7808 BOOT BARN INC. INV00545338 R. ROSALES 85087 400.00 129953 01/07/26 Reconciled 01/12/26 8296 BRAWLEY ANALYTICAL, INC. 001642 85994 1,324.00 129954 01/07/26 Printed 8287 BRAX COMPANY INC. 62507 85992 3,662.87 129955 01/07/26 Printed 674 BRENNTAG BPI568021 85998 2,531.94 CALIFORNIA RURAL WATER 1,662.00

ASSOCIA
129956 01/07/26 Printed 3579 OCT 2025-OCT 2026 RENEWAL 86260 CALIFORNIA STATE 3,211.32

DISBURSEMENT
129957 01/07/26 Printed 455 1/9/26
129958 01/07/26 Printed 3669 CANON U.S.A. INC 42341248 86105 3,054.61 129959 01/07/26 Printed 8943 CINCO BOOKS CORP 51249 85791 260.95 129960 01/07/26 Printed 7803 CIVICPLUS, LLC 359129 85546 81.58 129961 01/07/26 Printed 514 CORE & MAIN LP Y046043 (2) 86253 187.31 129962 01/07/26 Printed 859 CORRPRO COMPANIES, INC. 810858 86261 1,790.00 129963 01/07/26 Printed 132 COSTCO WHOLESALE 47927 85722 190.17 DANIEL & ARACELY 137.11

HERNANDEZ
129964 01/07/26 Printed 8944 98120015-638 HAMBLET
DEANGELO CONTRACTING 19,339.22

SERVICES
129965 01/07/26 Printed 3872 INV-040911 85985
129966 01/07/26 Printed 1056 DELL MARKETING L.P. 10855331111 86039 1,872.80 129967 01/07/26 Reconciled 01/12/26 8948 DISCOUNT DOOR & WINDOW 2433 85721 49,932.00 129968 01/07/26 Printed 1084 DISPLAY SALES INV9510 86207 11,034.00 129969 01/07/26 Printed 207 EL CENTRO MOTORS 5244422 86277 163.81 129970 01/07/26 Printed 8945 EMMANUEL LOPEZ 94141193/248 COZUMEL 45.79 129971 01/07/26 Printed 8955 FARALLON CONSULTING LLC 2955-002.002-REFUND 85676 876.39 FERGUSON WATERWORKS 1,106.53
#1083
129972 01/07/26 Reconciled 01/12/26 7145 0893432-1 86256 129973 01/07/26 Printed 314 FRANCHISE TAX BOARD 1/9/26 150.00 129974 01/07/26 Printed 4456 GRAFFIK SCREEN PRINTING 5133 85671 128.33 129975 01/07/26 Printed 710 GRAINGER 9741618137 85996 658.46 129976 01/07/26 Reconciled 01/12/26 4894 GRANITE DATA SOLUTIONS IN103733-1 86041 862.00 GROUNDWORKS CALIFORNIA 32,780.00
LLC
129977 01/07/26 Printed 8947 37738-748 85926
129978 01/07/26 Printed 264 HINDERLITER, DE LLAMAS & SIN057030 86104 1,366.94 HOME DEPOT CREDIT 4,009.79

SERVICES
129979 01/07/26 Printed 2096 1901398 85899
IMPERIAL COUNTY FIRE 107,630.51
DEPT.
129980 01/07/26 Printed 120 OCTOBER 2025 85725
IMPERIAL COUNTY PUBLIC 728.00
HEALTH
129981 01/07/26 Printed 4637 25245 86269
IMPERIAL IRRIGATION 13,962.26

DISTRICT
129982 01/07/26 Printed 028 DECEMBER 30, 2025
IMPERIAL IRRIGATION 273.60

DISTRICT
129983 01/07/26 Printed 4264 3355963 12/22/25
IMPERIAL POLICE OFFICERS 2,735.00
ASSN.
129984 01/07/26 Reconciled 01/12/26 102 1/9/26
129985 01/07/26 Printed 221 IMPERIAL PRINTERS 25-3718 85659 574.31 B-1

CITY OF IMPERIAL
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
US BANK Page: 2
Time: 3:18 pm
Date: 01/13/2026
Void/Stop
Date
Reconcile
Date
US BANK Checks
IMPERIAL TRUSS & LUMBER 558.78
CO.
129987 01/07/26 Printed 3187 C25183 86209
IMPERIAL VALLEY FOOD 2,100.00
BANK
129988 01/07/26 Printed 8471 COI1225 86163
IMPERIAL VALLEY PAINT 21.43
CENTER
129989 01/07/26 Printed 350 404682B 86202
129997 01/07/26 Reconciled 01/12/26 6472 INGRAM LIBRARY SERVICES 90879328- REISSUED 84764 2,669.95 129998 01/07/26 Printed 8950 JEREMY SCHEFFLER 9966-0080/310 N H 68.78 129999 01/07/26 Printed 8644 JESSICA HURTADO 1/9/26 789.24 130000 01/07/26 Printed 8951 JESUS CAMARILLO 9920-0400/125 GARETT 52.56 JIM REITER'S LOCKSMITH & 999.40
SAFE
130001 01/07/26 Printed 008 279646 86266
130002 01/07/26 Printed 8956 JOEY BOOTS BUILDERS B25-000361- REIMBURSEMENT 85675 500.00 130003 01/07/26 Printed 8946 JUAN BECERRA 9411-0792/586 LARKSPUR 96.41 130004 01/07/26 Printed 7751 JUNIOR'S CAFE INC. 13-19387 86168 1,372.58 130005 01/07/26 Printed 8952 JUSTIS VALENZUELA 9966-1740/125 W BARIONI #314 104.58 K-C WELDING & RENTALS, 119.33
INC.
130006 01/07/26 Printed 868 222535 86210
LA BRUCHERIE IRRIGATION 1,260.33
SUPPLY
130007 01/07/26 Reconciled 01/12/26 1647 317587 86208
LABOR COMPLIANCE 1,200.00

CONSULTANTS
130008 01/07/26 Printed 5230 4118 86264
130009 01/07/26 Reconciled 01/12/26 6985 LESLIE AGUIRRE 1/11/26 - 1/14/26 EXECUTIVE 301.00

ASSISTANTS TRAINING
LIEBERT CASSIDY 4,329.00

WHITMORE
130010 01/07/26 Printed 788 311580 86161
130011 01/07/26 Printed 101 LINCOLN LIFE 1/9/26 1,484.00 130012 01/07/26 Printed 2689 MAX SHEFFIELD 1/27/26 - 1/29/26 OFFICER INVOLVED 215.00

SHOOTING
130013 01/07/26 Printed 1190 MISSIONSQUARE - 304257 12/26/25 451.40 130014 01/07/26 Printed 8917 MYAH POPE SCHOLARSHIP 10/27/25-12/12/25 85783 1,000.00 130016 01/07/26 Printed 8669 NAPA AUTO PARTS 571504 86206 818.95 NC CHILD SUPPORT 528.00

CENTRALIZED
130017 01/07/26 Printed 8633 1/9/26
130019 01/07/26 Printed 4481 O'REILLY 2687-180715 86204 2,205.35 130020 01/07/26 Printed 8516 QUICK QUACK CAR WASH ARB246851 86110 208.89 130021 01/07/26 Printed 8953 RICARDO MENDOZA 9988-0702/450 WALL 37.96 130022 01/07/26 Printed 3786 RINGCENTRAL INC CD_001308702 86025 1,382.14 130023 01/07/26 Printed 7275 ROSA VELARDE 9998-4150/480 TRESHILL #187 79.41 130024 01/07/26 Reconciled 01/12/26 7343 ROVE ENGINEERING INC 7369 85988 310,543.64 130025 01/07/26 Reconciled 01/12/26 7343 ROVE ENGINEERING INC 7401 85986 682,351.99 130026 01/07/26 Reconciled 01/12/26 7343 ROVE ENGINEERING INC 7404 85987 68,547.58 130027 01/07/26 Reconciled 01/12/26 3526 RSD 3349231-00 85993 224.02 130028 01/07/26 Printed 3750 SERGIO SOTO 9433 85818 210.00 130029 01/07/26 Printed 8949 SEWERAI CORP 2025-11911 86265 20,743.20 130030 01/07/26 Printed 5706 SHI INTERNATIONAL CORP B20628511 86023 7,024.00 130031 01/07/26 Printed 3262 SIMNSA HEALTH PLAN 146157 JAN 2026 86106 11,005.35 130032 01/07/26 Printed 135 SOCALGAS 701 E 14TH 11/10-12/11/25 86252 70.46 130033 01/07/26 Printed 2365 SPARKLETTS 24671719 010326 388.39 130034 01/07/26 Reconciled 01/12/26 068 SUNBELT RENTALS, INC. 177947735-0002 85891 5,103.92 SWRCB ACCOUNTING 45,090.64
OFFICE
130035 01/07/26 Printed 1385 WS-1052798 86263
130036 01/07/26 Printed 7786 TAVCO SERVICES, INC 25121904 86201 167.00 130037 01/07/26 Printed 104 TEAMSTERS, LOCAL 542 12/26/25 2,205.50 TEXAS LIFE INSURANCE 1,213.12

COMPANY
130038 01/07/26 Printed 7443 12/26/25
130039 01/07/26 Printed 024 THE HOLT GROUP, INC. 25-11-003 85989 17,245.00 130040 01/07/26 Reconciled 01/12/26 1239 THE SHERWIN-WILLIAMS CO. 2268-7 86205 613.64 130041 01/07/26 Printed 7539 TOM'S HAY FARM, INC. 1934 85895 1,425.00 130042 01/07/26 Printed 8954 TORRANCE ROMAN 9979-0540/420 CONESTOGA 35.39 130043 01/07/26 Printed 7708 TUCKER MINI STORAGE 115919 86076 250.00

CITY OF IMPERIAL
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
US BANK Page: 3
Time: 3:18 pm
Date: 01/13/2026
Void/Stop
Date
Reconcile
Date
US BANK Checks
130052 01/07/26 Reconciled 01/08/26 5837 U.S. BANK EBAY 12/10/25 86043 17,780.15 UNDERGROUND SERVICE 214.22

ALERT OF
130053 01/07/26 Printed 275 25-262104 86109
130054 01/07/26 Printed 2081 VESTIS GROUP, LLC JANUARY 2026 3,652.36 130055 01/07/26 Reconciled 01/12/26 5674 WAGEWORKS, INC INV8451914 86115 152.00 ZENON ENVIRONMENTAL 4,395.00
CORP
130056 01/07/26 Printed 8559 903554246 86262
Total Checks: 98 Checks Total (excluding void checks): 1,644,412.00 Total Payments: 98 Bank Total (excluding void checks): 1,644,412.00 Total Payments: 98 Grand Total (excluding void checks): 1,644,412.00 Jumes Tucker - MuTtrr
lda Obeso-Murtinez - Muyor Pro-Tem
Slucy Mendo:u - Council Menber
Kotlrerine Bunrworth - Courtcil Mentber
Robeft Aurparatro - Couttcil Member

MINUTES
Regular Meeting of the Imperial City Council
City Council Chatnbers
220 west gth Stree(
Imperial, CA 9225 I -l 637
December 17.-2025
Open Session at 07:00 pm
7:00 P.M. REGULAR MEETING
CALL TO ORDER: Mayor Tucker called the meeting to order at 7:00 p.m.

ROLL CALL: Council Members Amparano, Bumworth, Mendoza, Mayor Pro Tem ObesoMartinez, and Mayor Tucker.

PLEDGE OF ALLEGIANCE: James Tucker led the Pledge of Allegiance.

ADJUSTMENTS TO THE AGENDA: City Attomey Tumer would like to go into closed session after the regular council meeting is adjourned to discuss Anticipated Litigation 54956.98.

Moved by Amparano, seconded by Burnworth, to approve adjustments to the agenda AYES: Amparano,Bumworth,Mendoza,Obeso-Martinez,Tucker
NOES: None
ABSTAIN: None
ABSENT: None
MOTION CARRIES: 5-0
PI]BLIC COMMENT:

Michelle Hollinger fiom Victoria Homes thanked the City Council for what they have done regarding the Data Center.

Page I of3
Cb, of lnperial Ci\, Council Minutes
December 17,2025
h-A
Imperial ('il \ ('ouncil
Andrew Rauch was present for a public comment regarding a proposal.

A-1.

A-2.

A-3.

Approval of Warrants Report.

Approve City Council Minutes for the Regular Meeting of December 3,2025.

Accept the Clearwell Pump Station Replacement and GAC Treatment project No. 2022-05 as complete, approve the filing of the Notice of Completion and authorize release of57o retention.

Award RFP 2025-18 Final Engineering for the Influent Pump Station WWTP Upgrade to Webb & Associates, CIP #851.

Accept proposal fiom the Holt Group Inc. for additional engineering services for the Wastewater Demolition Project under the On-Call Civil Engineering Services contract.

Approve and file the Special Tax Accountability Annual Reports (SB 165) for all city-issued Community Facilities Districts for Fiscal Year 2024-2025.

A-4.

A-5.

A-6.

Moved by Amparano, seconded by Mendoza, to approve the Consent Agenda.

AYES: Amparano,Bumworth,Mendoza,Obeso-Martinez,Tucker
NOES: None
ABSTAIN: None
ABSENT: None
MOTION CARRIES: 5-0
B-1. Recognition of Outgoing Mayor.
a) Presentations to outgoing Mayor James Tucker by Mayor Pro-Tem Ida Obeso-Martinez b) Rernarks from Council Members.
c) Closing comments fiom outgoing Mayor Tucker.

B-2. Selection of New Mayor and Mayor Pro-Tem for the 2026 City Council of the City of Imperial and Successor Agency to the former Imperial Redevelopment Agency.

City Clerk opens nomination for Mayor
Motion and Vote.

Moved by Amparano, seconded by Mendoza, to approve Ida Obeso-Martinez as the Mayor for 2026.

AYES: Amparano, Bumworth, Mendoza, Tucker
NOES: None
ABSTAIN: Obeso-Martinez
ABSENT: None
MOTION CARRIES:4-0-l
c) City Clerk opens nomination for Mayor Pro-Tem.
d) Motion and Vote.

Moved by Burnworth, seconded by obeso-Martinez, to approve Stacy Mendoza as Mayor Pro Tem for 2026.

City of Impeial Cily Co ncil Minutes
December 17,2025
a)
b)
A. CONSENT AGENDA:

B. REORGANIZATION OF THE CITY COUNCIL FOR 2026
AYES: Amparano,Bumworth,Obeso-Martinez,Tucker
NOES: None
ABSTAIN: Mendoza
ABSENT: None
MOTION CARRIES:4-0-1
c-1.
c-2.
c-3.
e) Newly selected Mayor and Mayor Pro-Tem assume chairs. f) Closing comments by New Mayor.

Department heads reported on their activities since the last city council meeting.

City Manager Reported by Congratulating the incoming Mayor and Mayor Pro Tem.

The Mayor and Council members reported on their activities since the last city council meeting and upcoming events.

ADJOURNME NT:

Seeing no further business before the Council, Mayor Obeso-Martinez ended this meeting and adjoumed into closed session until 7:45 p.m., the next council meeting being on January 7,2026, at 7:00 p.m.

IN WITNESS WHER-EOF, I have hereunto set my hand and affixed the official seal of the city of Imperial, Califomia, this 21st day of lanuary 2026.

KRISTINA SHIELDS
City Clerk

City of lmpeial City Council Minies
Decernbet 17, 2025
C. REPORTS:
m
Agenda ltem No. _Q- 4

DATE SUBMITTED

SUBMITTED BY

DATE ACTION REQUIRED
1t14t2026
Victor Manriquez
1t21t26

COTJNCIL ACTION

PUBLIC HEARING REQUIRED

RESOT-UTION
oRDINANCE lsr READINc
onDlNlncr. 2ND nrllING

CITY CLERK'S INITIALS
(X)
SUBJECI DISCI ]SSION/ACTION:

FISCAL YEAR 2024 INDEPENDENT AUDIT REPORT l
- Receive and file the attached lndependent City audit lor fiscal year ending June 30, 2024.

DEPARTMENT INVOLVED: AdMiNiSTAtiON SETViCES
BACKGROUND/SUMN4ARYI
The FY 2024 independent audit was performed by the CPA flrm Moss, Levy, and Hartzheim LLP on the City of lmperial's financial statement for the fiscal year ending June 30, 2024.

The City of lmperial received an audit opinion on the city financial statements as they were found by our auditors to "above present fairly, in all material respects, the respective financial position of the governmental activities, the business{ype activities, each major fund, and the aggregate remaining fund information of the City of lmperial, California, as of June 30,2024." FISCAL IMPACT: NOT TO EXCEED
No fiscal impact, this is a " Receive and File" report
I.IN AN C E

INITIAI S
rll.":

STAFF RECOMMENDAIION:

Staff recommends for City Council to receive and file the Annual lndependent Audit for fiscal year ending June 30,2024 DF,PT. INITIAI-S
MANAGER'S RECOI\4MENDATION
CITY
MANA(iFR's

INI I IALS
N'ltl
Ae4s/4^(1 f!r_
MOTION
SECON DEt)
AYES:

NAYES:

ABSENT:

APPROVED 0
DISAPPROVED 0

REJECI II)

DEFERRED
(
(
)
)
RE Fl'.RRl:t) TO

IMPERIAL CITY COUNCIL

AGENDA ITEM
!r+

CITY OF IMPERIAL
Annual Financial Report
Fiscal Year Ended June 30, 2024
i

CITY OF IMPERIAL, CALIFORNIA

ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2024

TABLE OF CONTENTS
I. FINANCIAL SECTION
A. Independent Auditor’s Report ................................................................................................ 1 B. Management’s Discussion and Analysis ................................................................................ 5 C. Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ............................................................................................. 15 Statement of Activities ................................................................................................. 16 Fund Financial Statements:

Governmental Funds:

Balance Sheet ......................................................................................................... 18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......................................................................... 19 Statement of Revenues, Expenditures, and Changes in Fund Balances ................ 20 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ......................................................................................................... 21 Proprietary Funds:

Statement of Net Position ...................................................................................... 22 Statement of Revenues, Expenses, and Changes in Net Position .......................... 23 Statement of Cash Flows ...................................................................................... 24 Fiduciary Funds:

Statement of Fiduciary Net Position ...................................................................... 25 Statement of Changes in Fiduciary Net Position ................................................... 26 Notes to Basic Financial Statements ................................................................................. 27 D. Required Supplementary Information:

General Fund – Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual........................................................................ 53 LTA Measure D – Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual........................................................................ 54 Schedule of the City’s Proportionate Share of the Net Pension Liability ......................... 55 Schedule of Pension Contributions ................................................................................... 56 E. Other Supplemental Information
Description of Nonmajor Governmental Funds ........................................................... 59 Combining Nonmajor Governmental Funds Balance Sheet ......................................... 62 Combining Nonmajor Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................................... 70 Internal Service Funds
Combining Statement of Net Position .......................................................................... 78 Combining Statement of Revenues, Expenses, and Change in Fund Balance ............. 79 Combining Statement of Cash Flows ........................................................................... 80 OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA
MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL

BUSINESS OFFICIALS
1 PARTNERS COMMERCIAL ACCOUNTING & TAX SERVICES GOVERNMENTAL AUDIT SERVICES CRAIG A HARTZHEIM, CPA 8383 WILSHIRE BLVD., SUITE 800 5800 HANNUM AVE., SUITE E HADLEY Y HUI, CPA BEVERLY HILLS, CA 90211 CULVER CITY, CA 90230 ALEXANDER C HOM, CPA TEL: 310.670.2745 TEL: 310.670.2745 ADAM V GUISE, CPA FAX: 310.670.1689 FAX: 310.670.1689
TRAVIS J HOLE, CPA www.mlhcpas.com www.mlhcpas.com

WILSON LAM, CPA
INDEPENDENT AUDITOR’S REPORT
The Members of the City Council of the
City of Imperial
Imperial, California
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Imperial, California as of and for the fiscal year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Imperial, California, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof, for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and those standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor's Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.
2 The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – General Fund, the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – LTA Measure D Special Revenue Fund, Expenditures, and Changes in Fund Balance – Budget to Actual – ARPA Special Revenue Fund, Schedule of Changes in the Net Pension Liability and Related Ratios, and Schedule of Pension Contributions on pages 47 through 51 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Management has chosen not to present a Management’s Discussion and Analysis. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Imperial’s basic financial statements. The Combining Financial Statements for the Nonmajor Governmental Funds listed in the table of contents are presented for purposes of additional analysis and are not required parts of the basic financial statements.

The Combining Financial Statements for the Nonmajor Governmental Funds and Internal Service Funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling such 3 information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 15, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Moss, Levy & Hartzheim, LLP
Culver City, California
November 15, 2025
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CITY OF IMPERIAL

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
5 This discussion and analysis provides an overview of the City of Imperial’s financial performance for the fiscal year ended June 30, 2024. This report has been prepared in accordance with Accounting Principles Generally Accepted in the United States of America (USGAAP) as established by the Governmental Accounting Standard Board (GASB). We encourage our readers to consider this information in conjunction with the information provided in the accompanying basic financial statements and notes. The City’s fiscal highlights are presented below:

FINANCIAL HIGHLIGHTS
Financial highlights of fiscal year ended June 30, 2024 include the following:

Government-wide:
 The City’s total net position was $82,635,749 as of June 30, 2024. Of this total, $55,021,034 was governmental net position and $27,614,715 was business-type net position.  Internal Service Funds Established: In fiscal year 2024, the City established new Internal Service Funds (Risk Management, Information Technology, and Equipment Replacement). This accounting change segregates approximately $4.0 million in net position that may have previously been commingled with General Fund operations. This structural change significantly impacts year-over-year comparisons, particularly regarding General Fund balances and transfers.
 Governmental revenues include program revenues of $13,080,150 and general revenues and transfers of $12,886,821 for a total of $25,966,971.
 Governmental expenses totaled $21,268,681.
 Business-type program revenues and interest were $13,988,285 while business-type expenses and transfers were $15,267,457.

Fund Level:
 Solid Waste Fund Separation: In prior fiscal years, solid waste operations were reported within the General Fund. Effective fiscal year 2024, the City established the Solid Waste Special Revenue Fund to account for these activities separately. This change skews comparisons with the prior year, specifically contributing to a decrease in General Fund "Charges for Services" and related expenditures.  Governmental fund balances increased $3,050,555 in fiscal year 2024, rising to $25,518,657 from the prior year’s balance of $22,468,102.
 Governmental fund revenues increased $1,154,627 in fiscal year 2024, totaling $23,528,644 compared to $22,374,017 in the prior year.
 Governmental fund expenditures decreased $344,026 in fiscal year 2024, totaling $17,848,780 compared to $18,192,806 in the prior year.

General Fund:
 General Fund revenues of $12,189,867 were $4,029,499 lower than the prior fiscal year. This decrease is primarily due to significant accounting changes:
- Solid Waste Separation: Solid Waste revenues ($1.98 million), which were previously reported in the General Fund, are now accounted for in a separate Special Revenue Fund. - Intergovernmental Revenue: Grant revenues decreased by approximately $1.39 million compared to the prior year..
 General Fund expenditures of $13,983,597 represented an increase of $404,388 over the prior fiscal year.  General Fund fund balance of $7,943,129 as of June 30, 2024, decreased by $2,375,096 from the 2023 fiscal year’s fund balance of $10,318,225. This decrease is largely attributable to the establishment of Internal Service Funds (Risk Management, IT, Equipment Replacement), which moved approximately $4.0 million in net position out of governmental fund operations and into internal service funds.

CITY OF IMPERIAL

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
6 

OVERVIEW OF THE ANNUAL FINANCIAL REPORT
This Annual Financial Report is divided into five parts:

1. Government-wide financial statements

2. Fund financial statements

3. Notes to these financial statements

4. Required supplementary information

5. Other supplemental information
Government-wide Financial Statements
The Government-wide financial statements provide a longer-term view of the City’s activities as a whole, and comprise the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all of its capital assets and long-term liabilities on the full accrual basis, similar to that used by corporations.

The Statement of Activities provides information about all the City’s revenues and all of its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each of the City’s programs. The Statement of Activities explains in detail the change in net positions for the fiscal year.

All of the City’s activities are grouped into governmental activities and business-type activities, as explained below.

The amounts in the Statement of Net Position and the Statement of Activities are separated into governmental activities and business-type activities in order to provide a summary of these two activities for the City as a whole.

Government-wide financial statements are prepared on the accrual basis, which mean they measure the flow of all economic resources of the City as a whole.

The Statement of Net Position and the Statement of Activities present information about the following:

Governmental Activities – All of the City’s basic services are considered to be governmental activities. These services are supported by the general City revenues such as taxes, and by specific program revenues such as user fees and charges.

Business-type Activities – The City’s enterprise activities of water and sewer are reported in this area. Unlike governmental services, these services are supported by charges paid by users based on the amount of service they use.

Fund Financial Statements
The fund financial statements report on the City’s operations in more detail than the Government-wide statements and focus primarily on the short-term activities of the City’s General Fund and other major funds. The fund financial statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long-term debt, and other long-term amounts.

The fund financial statements provide detailed information about each of the City’s most significant funds, called major funds. Major funds account for the major financial activities of the City and are presented individually, while the activities of non-major funds are presented in summary, with subordinate schedules presenting the detail for each of these other funds. The concept of major funds, and the determination of which funds are major, was established by the Governmental Accounting Standards Board (GASB) Statement No. 34 and replaces the concept of combining like funds and presenting them in total. Instead, each major fund is presented individually, with all non-major funds summarized and presented only in a single column. Major funds present the major activities of the City for the fiscal year, and may change from year to year as a result of changes in the pattern of the City’s activities.

Fund financial statements include governmental and proprietary funds as discussed below.

Governmental fund financial statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the governmental fund financial statements.

Proprietary fund financial statements are prepared on the full accrual basis and include all assets and liabilities, current and long-term.

CITY OF IMPERIAL

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
7 FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE
This analysis focuses on the net positions and changes in net positions of the City as a whole. Tables 1, 2, and 3 focus on the City’s Governmental Statement of Net Position and Statements of Activities, while Table 4 focuses on the City’s Business-type Statement of Net Position and Statement of Activities.

The City’s governmental net position increased by $4,545,801 to $55,021,034 after prior period adjustments. A significant factor in the increase of unrestricted net position is the accumulation of resources within the newly created Internal Service Funds, which are blended into governmental activities for the government-wide presentation. This increase in the change in net position is reflected in the Governmental Activities column of the Statement of Activities shown in Table 2. The City’s net position as of June 30, 2024 comprised the following:

Cash and investments comprised $27,551,025. Substantially all of these amounts were held in short term investments in government securities, as detailed in Note 3 to the financial statements.

Receivables comprised $3,009,801 of current receivables and notes receivable of $1,261,671 that is due over longer periods of time as explained the Notes.

Capital assets of $27,095,791 net of depreciation charges, which included all the City’s capital assets used in governmental activities.

Current liabilities, including accounts payable, claims, and other amounts due currently, totaled $1,300,197.

Governmental Governmental
Activities Activities
2024 2023
Assets
Cash and investments 27,551,025 $ 23,022,570 $
Other assets 4,285,323 2,494,477 Capital assets, net 27,095,791 29,261,784 Total Assets 54,778,831 58,932,139 Deferred Outflows of Resources
Pension 2,764,563 2,635,008 Total Def. Outflows 2,635,008 2,764,563 Liabilities
Long term liabilities 5,296,159 5,051,367
Other liabilities 1,300,197 1,771,554
Total Liabilities 6,822,921 6,596,356
Deferred Outflows of Resources
Pension 79,312 115,685 Total Def. Outflows 115,685 79,312 Net Position
Net investment in capital assets 27,095,791 29,261,784 Restricted 13,563,034 11,051,455 Unrestricted 14,362,209 10,161,994
Total Net Position $ 50,475,233 55,021,034 $
Governmental Activities Net Position at June 30,
Table 1

CITY OF IMPERIAL

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
8 Long-term liabilities of $5,296,159. The debt is related to the City’s Net Pension Liability and compensated absences. Net investment in capital assets of $27,095,791, representing the City’s investment in capital assets used in governmental activities, net of accumulated depreciation and amounts borrowed to finance those assets.

Unrestricted net position, the part of net position that can be used to finance day to day operations without constraints established by debt covenants or other legal requirements or restrictions, was $14,362,209 as of June 30, 2024.

As the Sources of Revenue chart above shows, $9,688,676, or 37% of the City’s fiscal year 2024 governmental activities revenue came from taxes, while $4,478,554, or 17% came from charges for services, $3,082,043 or 5%, came from capital grants and contributions, $3,450,468 or 27% came from operating grants and contributions, and the remainder came from a variety of sources.

The Functional Expenses chart above includes only current year expenses; it does not include capital outlays, which are added to the City’s capital assets. As the chart shows, general government was $4,662,794, or 23%, of total governmental expenses, public safety was $6,823,694, or 34%, public works was $6,125,395, or 30% and parks and recreation was $2,600,435, or 13%.

CITY OF IMPERIAL

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
9 The Statement of Activities presents program revenues and expenses and general revenues in detail. All of these elements in the changes in governmental net position are summarized below.

As Table 2 above shows, $13,080,151 or 50.4%, of the City’s fiscal year 2024 governmental revenue, came from program revenues and $12,886,821, or 49.6%, came from general revenues such as taxes and interest and transfers.

Program revenues were composed of charges for services of $4,478,554, which included permit revenues, fees and charges used to fund expenses incurred in providing services; $5,519,554 of operating grants and contributions, which included gas tax revenues and housing and police grants; and capital grants and contributions of $3,082,043, that consisted mainly of street project grants and impact fees restricted to capital outlay.

General revenues are not allocable to programs. General revenues are used to pay for the net cost of governmental programs.

Governmental Governmental
Activities Activities
2024 2023
Expenses
General government 4,662,794 $ 4,457,611 $
Public safety 6,823,694 5,820,862 Community development 1,056,363 726,983 Public works 6,125,395 5,138,684 Parks and recreation 2,600,435 1,946,744 Total Expenses 18,090,884 21,268,681 Revenues
Program revenues
Charges for services 4,478,554 3,411,636
Operating grants and contributions 5,519,554 8,237,195
Capital grants and contributions 3,082,043 1,140,637
Total program revenues 13,080,151 12,789,468 General revenues and transfers Taxes 9,688,676 9,161,127
Use of money and property 685,502 97,174
Other revenue 91,869 101,450
Transfers 2,420,774 211,437
Total general revenues and transfers 12,886,821 9,571,188 Total Revenues and Transfers 22,360,656 25,966,972 Change in Net Position $ 4,269,772 4,698,291 $ Change in Governmental Net Position
Table 2

CITY OF IMPERIAL

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
10 Table 3 presents the net expense or revenue of each of the City’s governmental activities, including interest on long-term liabilities. Net expense is defined as total program cost less the revenues generated by those specific activities.

BUSINESS-TYPE ACTIVITIES
The Statement of Net Position and Statement of Activities present a summary of the City’s Business-type activities that are composed of the City’s enterprise funds.

The net position of business-type activities decreased by $1,279,172 in fiscal year 2024.

Net Revenue Net Revenue
(Expense) from (Expense) from
Services 2024 Services 2023
General government (2,439,982) $ 4,271,398 $
Public safety (6,483,785) (5,341,203) Community development 209,217 (695,874) Public works 2,693,707 (1,970,372) Parks and recreation (2,167,687) (1,565,365) Total $ (5,301,416) (8,188,530) $
Table 3
Governmental Activities
Business-type Business-type
Activities Activities
2024 2023
Assets
Cash and investments 30,274,573 $ 30,932,552 $
Other assets 1,315,048 1,270,724 Capital assets, net 27,961,824 29,644,098 Total Assets 61,847,374 59,551,445 Deferred Outflows of Resources
Pension 612,086 593,109 Total Def. Outflows 593,109 612,086 Liabilities
Long term liabilities 28,802,426 30,370,406 Other liabilities 3,724,831 3,598,514 Total Liabilities 33,968,920 32,527,257 Deferred Outflows of Resources Pension 21,559 31,446 Total Def. Outflows 31,446 21,559 Net Position
Net investment in capital assets 7,205,155 6,974,670 Unrestricted 20,409,560 21,465,447 Total Net Position $ 28,440,117 27,614,715 $ Table 4
Business-type Activities Net Position at June 30,

CITY OF IMPERIAL

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
11 ANALYSIS OF MAJOR FUNDS
Governmental Funds
General Fund
General Fund: General Fund revenue was $12,189,867, a decrease of $4,029,499 from the prior fiscal year. This decrease is primarily due to the transfer of Solid Waste revenues (approx. $1.98 million) out of the General Fund and into a Special Revenue Fund. Additionally, intergovernmental revenues decreased from $3.99 million in 2023 to $2.61 million in 2024.

General Fund expenditures were $13,983,597, an increase of $404,388 from the prior fiscal year. As of June 30, 2024, the General Fund’s fund balance totaled $7,943,129, a decrease of $2.37 million from the prior year Business-type Business-type
Activities Activities
2024 2023
Expenses
Water 4,639,872 $ 4,808,859 $
Sewer 8,206,811 6,664,393 Total Expenses 11,473,252 12,846,683 Revenues Program revenues
Charges for services 12,811,808 12,974,341 Total program revenues 12,811,808 12,974,341 General revenues and transfers
Use of money and property 1,176,477 127,577
Transfers (2,420,774) (211,437) Total general revenues and transfers (1,244,297) (83,860) Total Revenues and Transfers 12,890,481 11,567,511 Change in Net Position $ 1,417,229 (1,279,172) $ Table 5
Change in Business-type Net Position
Net Revenue Net Revenue
(Expense) from (Expense) from
Services 2024 Services 2023
Water 1,678,840 $ 1,610,116 $
Sewer (1,713,715) (109,027) Total $ 1,501,089 (34,875) $ Table 6
Business-type Activities

CITY OF IMPERIAL

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
12 Solid Waste Special Revenue Fund
Established in 2024, this fund reported revenues of $1,986,387 and expenditures of $2,054,058, ending with a deficit fund balance of $(67,671).

Proprietary Funds
Water Fund
Significant Operating Loss: The Water Fund swung to an operating loss of $1,413,323 in 2024, a sharp reversal from the $313,750 operating surplus reported in the prior year.

Surge in Material Costs: Operating expenses were driven up by a massive spike in "Materials and Supplies," which cost $4,259,662 in 2024 compared to just $1,122,786 in 2023.

Depletion of Net Position: The fund's overall net position decreased by $2,160,129 due to the operational deficit combined with a $1,199,987 transfer out to other City funds.

Sewer Fund
Strong Profitability: The Sewer Fund remains financially robust, generating $2,295,228 in operating income, which is consistent with the $2,246,702 generated in the previous year.

Effective Cost Control: Unlike the Water Fund, the Sewer Fund kept expenses low at $4,023,484, with materials and supplies costing only $125,263.

Growth Despite Transfers: Even after transferring $1,220,787 out to support other City operations, the Sewer Fund still managed to increase its total net position by $880,957.

CAPITAL ASSETS
GASB No. 34 required the City to record all its capital assets including infrastructure, which was not recorded prior to GASB No. 34. Infrastructure includes roads, bridges, signals, and similar assets used by the entire population.

In fiscal year 2020, the City reported the cost of all its infrastructure assets and computed the amounts of accumulated depreciation for these assets based on their original acquisition dates. At the end of fiscal year 2020, the cost of infrastructure and other capital assets recorded on the City’s financial statements is as shown in Table 7 on the following page.

CITY OF IMPERIAL

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
13 Table 7

CAPITAL ASSETS
Additional details on capital assets, current year additions and construction in progress can be found in the Notes.

The City depreciates all its capital assets over their estimated useful lives, as required by GASB No. 34. The purpose of depreciation is to spread the cost of a capital asset over the years of its useful life so that an allocable portion of the cost of the asset is borne by all users. Additional information on depreciable lives may be found in the Notes to the financial statements.

DEBT ADMINISTRATION
The City made all scheduled repayments of existing debt. The City’s debt issues are discussed in detail in Note 7 of the financial statements. The City's debt balances as of June 30 were as follows:

CITY OF IMPERIAL

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
14 ECONOMIC CONDITION, OUTLOOK, AND ACTIVITY
The City continues to monitor its cash inflows on a quarterly basis, updating the City Council and the public every three months to ensure economic trends are identified as quickly as possible. The leading indicators come from revenues that have a more immediate response to economic conditions, which includes sales taxes, transient occupancy taxes, building permits, cannabis revenues, and the days outstanding accounts receivables for enterprise fund activities in Water and Wastewater. The City also looks at the lagging economic indicators, like property tax revenues and vehicle license fees, which take 12 to 18 months to show up in revenue trends.

The cash outflows are driven by salaries, contracts, and the capital investments required to maintain the quality of life at the highest level possible for the Imperial community. Continued increases in pension costs and inflationary trends impacting the cost of government services will continue to constrain the City budget in the next 3 to 5 years. The City’s fund balance reserves continue to exceed 40%, well above the 25% Council policy, will eventually be liquidated without new tax revenues and/or efficiencies from rightsizing and/or streamlining the way government services are delivered to the community.

The coming fiscal year 2024-25 and 2025-26 spending plans, which have already been adopted by the City Council, shows revenues in the General Fund will grow by under 2%, which is below the roughly 5% growth in cost of services.

As stated above, the economic trends show the revenue and expenditure “lines crossing” in 2026-27 or 2027-28 as there is currently no significant source of new revenue expected to keep up with the inflationary impacts on the cost of delivering municipal services to the community. This economic outlook will force the same difficult discussions being had by many other City organizations across California.

For the coming three years, the City will have the revenues and liquidity to fund vital City services and make significant investments in streets and related infrastructure needs in Imperial. Thanks to the conservative fiscal management of the City staff and City Council, the City should be able to craft needed long term fiscal solutions for the organization.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Financial Report is intended to provide citizens, taxpayers, and creditors with a general overview of the City’s finances. Questions about this report should be directed to the City of Imperial, 420 South Imperial Avenue, Imperial, CA 92251, or by calling (760) 355-4371.
2024 2023
Governmental activities
Compensated absences $ 546,903 $ 535,562
Total governmental activities 546,903 535,562
Business‑type activities
Water
Compensated absences $ 58,622 $ 53,614
Certificates of participation 13,895,664 11,423,061
Total for water fund 13,954,286 11,476,675
Sewer
Compensated absences 42,653 14,470
Certificates of participation 4,920,663 2,977,190
Revenue bonds 16,603,937 16,255,943
Total for sewer fund 21,567,253 19,247,603
Total business‑type activities $ 35,521,539 $ 30,724,278 LONG‑TERM LIABILITIES
Table 8
Governmental Business-type
Activities Activities Total
Assets:

Cash and Investments 27,551,025 $ 21,956,404 $ 49,507,429 $ Cash and Investments with Fiscal Agent 8,318,169 8,318,169 Accounts Receivable 3,009,801 1,279,206 4,289,007
Notes Receivable 1,261,671 1,261,671
Inventory 35,842 35,842
Prepaid Expense 13,851 13,851
Capital Assets, Not Being Depreciated 3,329,400 278,397 3,607,797 Capital Assets, Net of Accumulated Depreciation 23,766,391 27,683,427 51,449,818 Total Assets 58,932,139 59,551,445 118,483,584
Deferred Outflows of Resources:

Pension related 2,764,563 612,086 3,376,649
Total Deferred Outflows of Resources 2,764,563 612,086 3,376,649 Liabilities:

Accounts Payable 747,928 1,143,288 1,891,216
Deposits Payable 284,488 935,189 1,219,677
Noncurrent Liabilities:

Net Pension Liability 5,028,378 1,366,809 6,395,187
Due Within One Year 267,781 1,646,354 1,914,135
Due in More Than One Year 267,781 27,435,617 27,703,398 Total Liabilities 6,596,356 32,527,257 39,123,613
Deferred Inflows of Resources:

Pension related 79,312 21,559 100,871
Total Deferred Inflows of Resources 79,312 21,559 100,871 Net Position:

Net Investment in Capital Assets 27,095,791 7,205,155 34,300,946 Restricted for:

Parks and Recreation 2,942,340 2,942,340
Public Works 4,086,418 4,086,418
Public Safety 1,567,695 1,567,695
Community Development 4,966,581 4,966,581
Unrestricted 14,362,209 20,409,560 34,771,769
Total Net Position 55,021,034 $ 27,614,715 $ 82,635,749 $

CITY OF IMPERIAL
Statement of Net Position
June 30, 2024
The notes to the financial statements are an integral part of this statement. 15 Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Primary Government:

Governmental Activities:

General Government 4,662,794 $ 1,979,831 $ 242,981 $ - $ Public Safety 6,823,694 25,650 314,259
Community Development 1,056,363 10,631 1,254,949
Public Works 6,125,395 2,372,251 3,364,808 3,082,043
Parks and Recreation 2,600,435 90,191 342,557
Total Governmental Activities 21,268,681 4,478,554 5,519,554 3,082,043

Business-type Activities:

Water 4,639,872 6,318,712
Sewer 8,206,811 6,493,096 -
Total Business-type Activities 12,846,683 12,811,808 -
Total Primary Government 34,115,364 $ 17,290,362 $ 5,519,554 $ 3,082,043 $ Taxes:

Property Taxes
Sales and Use Taxes
Business License Taxes
Transient Occupancy Taxes
Franchise Taxes
Other Taxes
Unrestricted Motor Vehicle License Tax
Licenses and Permits
Fines and Forfeitures
Use of Money and Property
Other Revenue
Transfers
Total General Revenues and Transfers
Change in net position
Net Position - Beginning of Fiscal Year
Prior Period Adjustments
Net Position - Beginning of Fiscal Year (restated)
Net Position - End of Fiscal Year
Functions
General Revenues:

Program Revenues
The notes to the financial statements are an integral part of this statement.

CITY OF IMPERIAL
Statement of Activities
For the Fiscal Year Ended June 30, 2024
16 Net (Expenses) Revenues and Changes in Net Position
BusinessGovernmental type
Activities Activities Total
$ $ - (2,439,982) (2,439,982) $
(6,483,785) (6,483,785)
209,217 209,217
2,693,707 2,693,707
(2,167,687) (2,167,687)
(8,188,530) (8,188,530)
1,678,840 1,678,840
(1,713,715) (1,713,715)
(34,875) (34,875)
(34,875) (8,188,530) (8,223,405)
2,075,055 2,075,055
3,727,413 3,727,413
70,146 70,146
419,697 419,697
470,271 470,271
351,443 351,443
2,366,930 2,366,930
8,151 8,151
199,570 199,570
1,176,477 685,502 1,861,979
91,869 91,869
(2,420,774) 2,420,774
(1,244,297) 12,886,821 11,642,524
(1,279,172) 4,698,291 3,419,119
28,440,117 50,475,233 78,915,350
453,770 (152,490) 301,280
28,893,887 50,322,743 79,216,630
$ 27,614,715 55,021,034 $ 82,635,749 $
17 Capital Projects
Fund
Nonmajor Total
LTA Federal Solid Capital Governmental Governmental
General Measure D SBA Waste Projects Funds Funds
Assets:

Cash and Investments 5,893,926 $ 1,085,716 $ 1,211,940 $ 82,529 $ 2,868,295 $ 12,349,868 $ 23,492,274 $ Accounts Receivable 2,639,287 190,281 180,233 3,009,801 Loan Receivable 1,261,671 1,261,671
Due from Other Funds 172,866 172,866
Prepaid Expenses 13,851 13,851
Total Assets 8,719,930 $ 1,085,716 $ 1,211,940 $ 82,529 $ 3,058,576 $ 13,791,772 $ 27,950,463 $ Liabilities and Fund Balances:

Liabilities:

Accounts Payable 492,313 $ 13,667 $ - $ 150,200 $ 34,740 $ 21,861 $ 712,781 $ Deposits Payable 284,488 284,488
Deposits Payable
Due to Other Funds 172,866 172,866
Total Liabilities 776,801 13,667 - 150,200 34,740 194,727 1,170,135 Deferred Inflows of Resources::

Loans Related 1,261,671 1,261,671
Total Deferred Inflows of Resources 1,261,671 1,261,671 Total Liabilities and Deferred
Inflows of Resources 776,801 13,667 - 150,200 34,740 1,456,398 2,431,806 Fund Balances:

Restricted for:

Community Development 1,211,940 3,754,641 4,966,581
Public Safety 1,567,695 1,567,695
Public Works 4,086,418 4,086,418
Parks and Recreation 2,926,620 2,926,620
Unassigned 7,943,129 1,072,049 (67,671) 3,023,836 11,971,343 Total Fund Balances 7,943,129 1,072,049 1,211,940 (67,671) 3,023,836 12,335,374 25,518,657 Total Liabilities and Fund Balances 8,719,930 $ 1,085,716 $ 1,211,940 $ 82,529 $ 3,058,576 $ 13,791,772 $ 27,950,463 $ Special Revenue Funds

CITY OF IMPERIAL
Balance Sheet
Governmental Funds
June 30, 2024
The notes to the financial statements are an integral part of this statement. 18 Total fund balances - governmental funds $ 25,518,657 In governmental funds, only current assets are reported. In the statement of net position, all assets are reported, including capital assets and accumulated depreciation.

Capital assets at historical cost 62,042,439 $
Accumulated depreciation (34,946,648) 27,095,791
2,764,563
(79,312)
In governmental funds, only current liabilities are reported. In the statement of net position, all liabilities, including long-term liabilities, are reported. Long-term liabilities relating to governmental activities consist of:

Net pension liability (5,028,378)
Compensated absences payable (535,562)
Certain notes receivable are not available to pay for current period expenditures and, therefore, are offset by deferred inflows of resources in the governmental funds. 1,261,671 Internal service funds are used by management to charge the costs of certain activities, such as self-insurance, to individual funds. The assets and liabilities of the internal service fund must be added to the statement of net position. 4,023,604 Total net position - governmental activities $ 55,021,034 The notes to the financial statements are an integral part of this statement.

Deferred inflows related to pension
Deferred outflows related to pension

CITY OF IMPERIAL
Reconciliation of the Governmental Funds Balance Sheet
June 30, 2024
to the Statement of Net Position
Deferred outflows and inflows of resources relating to pensions: In governmental funds, deferred outflows and inflows of resources relating to pensions are not reported because they are applicable to future periods. In the statement of net position, deferred outflows and inflows of resources relating to pensions are reported. 19 Capital Projects
Fund
Nonmajor Total
LTA Federal Solid Capital Governmental Governmental
General Measure D SBA Waste Projects Funds Funds
Revenues
Property Taxes 2,075,055 $ - $ - $ - $ - $ - $ 2,075,055 $ Sales and Use Taxes 3,727,413 1,962,369 5,689,782
Business License Taxes 70,146 70,146
Transient Occupancy Tax 419,697 419,697
Other Taxes 351,443 351,443
Licenses and Permits 8,151 8,151
Fines and Forfeitures 199,570 199,570
Use of Money and Property 232,753 29,831 482 29,506 392,930 685,502 Charges for Services 1,933,608 11,940 1,985,905 529,547 4,461,000 Intergovernmental 2,609,911 1,200,000 3,082,043 2,114,204 9,006,158 Franchise Tax 470,271 470,271
Other 91,849 20 91,869
Total Revenues 12,189,867 1,992,200 1,211,940 1,986,387 3,111,549 3,036,701 23,528,644 Expenditures
Current:

General Government 2,812,035 2,812,035
Public Safety 5,594,564 198,971 5,793,535
Public Works 2,148,317 228,732 2,054,058 57,499 4,488,606 Parks and Recreation 2,501,406 99,029 2,600,435
Community Development 927,275 129,088 1,056,363
Capital Outlay 967,529 130,277 1,097,806
Total Expenditures 13,983,597 228,732 - 2,054,058 967,529 614,864 17,848,780 Excess (Deficiency) of Revenues over
(under) Expenditures (1,793,730) 1,763,468 1,211,940 (67,671) 2,144,020 2,421,837 5,679,864 Other Financing Sources (Uses):

Transfers In 4,309,013 967,529 - 5,276,542
Transfers Out (4,737,889) (551,298) (69,255) (2,394,919) (7,753,361) Total Other Financing Sources (Uses) (428,876) (551,298) - - 898,274 (2,394,919) (2,476,819) Net Change in Fund Balances (2,222,606) 1,212,170 1,211,940 (67,671) 3,042,294 26,918 3,203,045 Fund Balances - June 30, 2023 (140,121) 10,318,225 (18,458) 12,308,456 22,468,102 Prior Period Adjustments (152,490) (152,490)
Fund Balances - June 30, 2023, Restated (140,121) 10,165,735 - - (18,458) 12,308,456 22,315,612 Fund Balances - June 30, 2024 $ 1,072,049 7,943,129 $ 1,211,940 $ (67,671) $ 3,023,836 $ 12,335,374 $ 25,518,657 $ The notes to the financial statements are an integral part of this statement.

Special Revenue Funds

CITY OF IMPERIAL
Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds
For the Fiscal Year Ended June 30, 2024
20 Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds $ 3,203,045 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those capital assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period.

Capital outlay 404,513 $
Depreciation expense (2,570,506) (2,165,993)
Certain notes receivable are reported in the governmental funds as expenditures and then, offset by a deferred inflow of resources, as they are not available to pay current expenditures.

Likewise, when the note is collected, it is reflected in revenue. This is the net change between notes receivable collected and issued. (15,720) (346,645)
Internal service funds are used by management to charge the costs of certain activities, such as self-insurance, to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities. 4,023,604 Change in net position of governmental activities $ 4,698,291 In governmental funds, pension costs are recognized when employer contributions are made. In the statement of activities, pension costs are recognized on the accrual basis. In addition, changes in Fiduciary Net Postion and Total Pension Liability are deferred inflows and outflows and amortized. This is the difference between accrual-basis pension costs and actual employer contributions and amortization of deferred inflows and outflows in the current fiscal year.

CITY OF IMPERIAL
Reconciliation of the Statement of Revenues, Expenditures, and Changes in For the Fiscal Year Ended June 30, 2024
Fund Balances of Governmental Funds to the Statement of Activities The notes to the financial statements are an integral part of this statement. 21 Governmental
Activities
Water Sewer Internal Service
Fund Fund Total Funds
Assets
Current Assets:

Cash and Investments 8,914,326 $ 13,042,078 $ 21,956,404 $ 4,058,751 $ Cash and Investments with Fiscal Agent 7,471,752 846,417 8,318,169 Accounts Receivable 679,379 599,827 1,279,206
Inventory 35,842 35,842
Total Current Assets 17,101,299 14,488,322 31,589,621 4,058,751 Noncurrent Assets:

Capital Assets:

Land 99,357 179,040 278,397
Building and Improvements 11,207,018 8,063,593 19,270,611 Machinery and Equipment 5,259,074 2,186,432 7,445,506
Infrastructure 14,610,610 34,260,485 48,871,095
Less:

Accumulated Depreciation (24,736,624) (23,167,161) (47,903,785) Total Noncurrent Assets 6,439,435 21,522,389 27,961,824 Deferred Outflows of Resources:

Pension Related 372,573 239,513 612,086
Total Deferred Outflows of Resources 372,573 239,513 612,086 Total Assets and Deferred Outflows of Resources 23,913,307 36,250,224 60,163,531 4,058,751 Liabilities
Current Liabilities:

Accounts Payable 1,068,569 74,719 1,143,288 35,147
Deposits Payable 477,660 457,529 935,189
Long Term Debt - Due within One Year 794,200 852,154 1,646,354 Total Current Liabilities 2,340,429 1,384,402 3,724,831 35,147 Noncurrent Liabilities:

Compensated Absences 1,555 5,578 7,133
Net Pension Liability 831,969 534,840 1,366,809
Due in More Than One Year 9,864,660 17,563,824 27,428,484 Total Noncurrent Liabilities 10,698,184 18,104,242 28,802,426 Deferred Inflows of Resources:

Pension Related 13,123 8,436 21,559
Total Deferred Inflows of Resources 13,123 8,436 21,559 Total Liabilities and Deferred Inflows of Resources 13,051,736 19,497,080 32,548,816 35,147 Net Position
Net Investment in Capital Assets 3,252,327 3,952,828 7,205,155 Unrestricted 7,609,244 12,800,316 20,409,560 4,023,604
Total Net Position 10,861,571 $ 16,753,144 $ 27,614,715 $ 4,023,604 $ The notes to the financial statements are an integral part of this statement.

CITY OF IMPERIAL
Statement of Net Position
Proprietary Funds
June 30, 2024
Business-type Activities-Enterprise Funds
22 Governmental
Activities
Water Sewer Internal Service
Fund Fund Total Funds
Operating Revenues:

Charges for Services 6,492,221 $ 6,318,712 $ 12,810,933 $ 33,274 $ Other Operating Revenue 875 875
Total Operating Revenues 6,493,096 6,318,712 12,811,808 33,274

Operating Expenses:

Personnel 1,073,886 857,212 1,931,098 430,658
Administrative 908,771 677,217 1,585,988 291,604
Materials and Supplies 4,259,662 125,263 4,384,925 185,001 Maintenance 358,330 791,799 1,150,129
Depreciation 1,305,770 1,571,993 2,877,763
Total Operating Expenses 7,906,419 4,023,484 11,929,903 907,263 Operating Income (1,413,323) 2,295,228 881,905 (873,989) Non-operating Revenues (Expenses):

Interest Revenue 753,573 422,904 1,176,477
Interest and Fiscal Charges (300,392) (616,388) (916,780) Total Non-Operating Revenue (Expenses) 453,181 (193,484) 259,697 Income (Loss) before transfers (960,142) 2,101,744 1,141,602 (873,989) Transfers
Transfers In 4,897,593
Transfers Out (1,199,987) (1,220,787) (2,420,774)
Total Transfers (1,199,987) (1,220,787) (2,420,774) 4,897,593 Change in Net Position 880,957 (2,160,129) (1,279,172) 4,023,604 Net Position - Beginning of Fiscal Year 12,655,687 15,784,430 28,440,117 Prior Period Adjustments 366,013 87,757 453,770
Net Position - Beginning of the Fiscal Year, Restated 13,021,700 15,872,187 28,893,887 Net Position - End of Fiscal Year 10,861,571 $ 16,753,144 $ 27,614,715 $ 4,023,604 $ Business-type Activities - Enterprise funds

CITY OF IMPERIAL
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2024
The notes to the financial statements are an integral part of this statement. 23 Governmental
Activities
Water Sewer Internal Service
Fund Fund Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash Received from Users 6,450,679 $ 6,316,805 $ 12,767,484 $ 33,274 Cash Payments to Suppliers and Contractors (5,417,322) (1,642,403) (7,059,725) (441,458) Cash Payments to Employees (1,058,706) (822,880) (1,881,586) (430,658) Net Cash Provided (Used) By Operating Activities (25,349) 3,851,522 3,826,173 (838,842) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers out
Transfers In 4,897,593
Transfers Out (1,199,987) (1,220,787) (2,420,774)
Net Cash Provided (Used) By Noncapital Financing Activities (1,199,987) (1,220,787) (2,420,774) 4,897,593 CASH FLOWS FROM INVESTING ACTIVITIES:

Interest Received 753,573 422,904 1,176,477
Net Cash Provided (Used) in Investing Activities 753,573 422,904 1,176,477

CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:

Acquisition of Property, Plant, and Equipment (450,334) (297,614) (747,948) Principal Payments on Debt Borrowings (700,000) (770,000) (1,470,000) Interest Paid (361,626) (660,281) (1,021,907)
Net Cash Provided (Used) In Capital and Related
Financing Activities (1,511,960) (1,727,895) (3,239,855)

NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (1,983,723) 1,325,744 (657,979) 4,058,751
CASH AND CASH EQUIVALENTS, BEGINNING OF FISCAL YEAR 18,369,801 12,562,751 30,932,552 CASH AND CASH EQUIVALENTS, END OF FISCAL YEAR 16,386,078 $ 13,888,495 $ 30,274,573 $ 4,058,751 $ Reconciliation to Statement of Net Position:

Cash and Investments 8,914,326 $ 13,042,078 $ 21,956,404 $ 4,058,751 $ Cash and Investments with Fiscal Agent 7,471,752 846,417 8,318,169 $ 13,888,495 16,386,078 $ 30,274,573 $ 4,058,751 $
CASH FLOWS FROM OPERATING ACTIVITIES:

Operating Income (1,413,323) $ 2,295,228 $ 881,905 $ (873,989) $

Adjustment to Reconcile Operating Income
to Net Cash Provided by Operating
Activities:

Depreciation 1,305,770 1,571,993 2,877,763
Changes in Assets, Deferred Outflows, Liabilities, and Deferred Inflows:
(Increase) Decrease in Accounts Receivable (42,417) (1,907) (44,324) Increase (Decrease) in Accounts Payable 39,225 (100,163) (60,938) 35,147 Increase (Decrease) in Compensated Absences (52,059) (8,892) (60,951) Increase (Decrease) in Net Pension Liability 84,808 54,519 139,327 (Increase) Decrease in Pension Related Deferred Outflows (11,551) (7,426) (18,977) Increase (Decrease) in Pension Related Deferred Inflows (6,018) (3,869) (9,887) Increase (Decrease) in Deposits Payable 70,216 52,039 122,255 Total Adjustments 1,387,974 1,556,294 2,944,268 35,147
Net Cash Provided (Used) By Operating Activities (25,349) $ 3,851,522 $ 3,826,173 $ (838,842) $ The notes to the financial statements are an integral part of this statement.

Business-type Activities - Enterprise Funds

CITY OF IMPERIAL

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
For the Fiscal Year Ended June 30, 2024
24 Private Purpose
Trust Fund
RDA
Successor Agency
Agency Fund
ASSETS
Cash and investments 551,820 $ 2,822,109 $
Cash and investments with fiscal agent 3,089,339
Accounts receivable 3,320,000
Capital assets, net of accumulated depreciation 311,012 Total Assets 862,832 9,231,448 $

LIABILITIES
Accounts payable - $ 58,551 $
Deposits payable 9,231,448
Long-term debt, due within one year 850,000
Long-term debt, due in more than one year 14,380,000
Total Liabilities 15,230,000 9,289,999 $

NET POSITION
Held in trust for others (14,367,168)
Total Net Position (14,367,168) $

CITY OF IMPERIAL

FIDUCIARY FUNDS

STATEMENT OF NET POSITION
June 30, 2024
25 The notes to the financial statements are an integral part of this statement.

Private Purpose
Trust Fund
RDA
Successor
Agency
Additions:

Intergovernmental 1,399,155 $
Use of money and property 76,689
Total additions 1,475,844
Deductions:

Interest Expense 601,011
Contribution to City 250,000
Total deductions 851,011
Change in net position 624,833
Net Position - July 1, 2023 (14,992,001)
Net Position - June 30, 2024 (14,367,168) $
The notes to the financial statements are an integral part of this statement. 26 CITY OF IMPERIAL

FIDUCIARY FUNDS

STATEMENT OF CHANGES IN NET POSITION
For the Fiscal Year Ended June 30, 2024

NOTES TO BASIC FINANCIAL STATEMENTS

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
27 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Imperial is a municipal corporation governed by an elected five-member City Council who, in turn, elects one of its members to serve as the Mayor. As required by accounting principles generally accepted in the United States of America, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and so data from these units are combined with data of the City. The blended component units have a June 30 fiscal year end to coincide with the City’s.

Blended Component Units. In May 1994, the Imperial Financing Authority (Authority) was formed in order to provide a funding vehicle for necessary street improvements within the City. The governing board of the Imperial Financing Authority is the City Council, and the City Manager acts as Executive Director. A separate financial report is not being issued for the Imperial Financing Authority. The activity of the Authority is reported within the General Fund of the City.

The Imperial Community Facilities District (District) was formed in order to provide funding for necessary community development projects within the City. The City currently has six separate Districts: 2004-1 Victoria, 2004-2 Mayfield, 2004-3 Bratton, 2005-1 Springfield, 2006-Monterrey Park, and 2006-2 Savannah Ranch.

B. Basis of Presentation
Government-wide Financial Statements
The statement of net position and statement of activities display information about the primary government (the City). These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees charged to external parties.

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

When both restricted and unrestricted net positions are available, unrestricted resources are used only after the restricted resources are depleted.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
28 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Fund Financial Statements
The fund financial statements provide information about the City’s funds, including fiduciary funds.

Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds; each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds.

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

Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

The City reports four major governmental funds:
 The General Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes activities such as public protection, public works and facilities, parks and recreation, and community development.
 The LTA Measure D Special Revenue Fund was established to account for all proceeds and expenditures associated with street and highway projects received as part of the local transportation authority Measure D sales tax.
 The Federal SBA Special Revenue Fund was established to account for all proceeds and expenditures associated with Federal SBA loans administered by the City.  The Solid Waste Special Revenue Fund was established to account for all proceeds and expenditures associated with solid waste fees collected by the city and paid to solid waste operators for operations within the City.
 The Capital Projects Capital Projects Fund was established to account for revenue and expenditures related to capital projects within the City.

The City reports the following two major enterprise funds:
 The Water Fund was established to account for the financial activity for the purpose of operation and maintenance of City’s water utility.
 The Sewer Fund was established to account for the financial activity for the purpose of operation and maintenance of the City’s sewer system including the wastewater treatment plant.

The City reports the following additional fund types:

Fiduciary Funds
Custodial Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other government units, and/or other funds.

Private Purpose Trust Fund accounts for the operations of the former redevelopment agency.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
29 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Accounting and Measurement Focus
The government-wide, proprietary, and fiduciary funds financial statements except for Agency Funds (that have no measurement focus) are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time the liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place.

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

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

Property taxes, transient occupancy taxes, and interest are susceptible to accrual. Sales taxes collected and held by the state at fiscal year-end on behalf of the City are also recognized as revenue.

Other receipts and taxes become measurable and available when cash is received by the City and are recognized as revenue at that time.

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

D. Assets, Liabilities, and Equity

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

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

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
30 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Equity (Continued)

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

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

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

Investments are stated at fair value in accordance with GASB Statement No.31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Short-term investments are reported at cost, which approximates fair value. The fair values are based on quoted market prices, if available, or estimated using quoted market prices for similar securities. Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates. Interest, dividends, and realized and unrealized gains and losses, based on the specific identification method, are included in interest revenue when earned.

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

Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means when due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities of the current period. The County of Imperial collects property taxes for the City and Agency. Tax liens attach annually on the first day in January preceding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1st to June 30th. One-half of the taxes on real property are due on November 1st; the second installment is due on March 1st. All taxes are delinquent, if unpaid by December 10th and April 10th respectively. Unsecured personal property taxes become due on July 1st of each year and are delinquent, if unpaid by August 31st.

The City has elected to receive the City’s portion of the property taxes from the county under the county Teeter Bill program. Under this program, the City receives 100 percent of the City’s share of the levied property taxes in periodic payments with the county assuming the responsibility for the delinquencies

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
31 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Equity (Continued)

2. Receivables and Payables (Continued)
GASB Statement No. 96, SBITAs
This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in GASB Statement No. 87, Leases, as amended.

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

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

4. Capital Assets
Capital assets, which include property, plant, equipment, fine art, and infrastructure assets (e.g., roads, bridges, sidewalks, traffic lights and signals, street lights, 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 City as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. Such capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the capital asset or materially extend capital asset 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 was capitalized during the fiscal year ended June 30, 2023.

Capital assets of the City are depreciated using the straight-line method over the following estimated useful lives:

Years
Buildings 30
Improvements other than buildings 30
Infrastructure 20 to 40
Utility systems 40 to 75
Vehicles 5 to 15
Computer equipment 7
Other equipment and furnishings 7
Assets

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
32 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Equity (Continued)

5. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick leave benefits. All vacation and sick leave benefits are accrued as earned by employees. A portion of unused sick leave benefits, varying by employee bargaining unit, vests and is payable upon retirement. For proprietary funds, a current liability is reported for that portion of the estimated value of vacation and sick leave benefits to be used during the subsequent fiscal year, and the estimated value of vacation vested sick leave benefits of employees approaching or at their respective retirement ages. The balance is considered a long-term obligation.

A liability is accrued for all earned but unused leave benefits in the government-wide and enterprise fund statements. This liability will be liquidated as either additional cash payments in the event of employee termination or as part of budgeted salary expenditures if used by employees as compensated leave time while still employed by the City. In the fund financial statements, governmental funds accrue current liabilities for material vacation leave benefits due on demand to governmental fund employees that have terminated prior to fiscal year-end. Non-current amounts will be recorded as fund expenditures in the fiscal year in which they are paid or become due on demand to terminated employees.

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

Debt premiums and discounts are deferred and amortized over the life of the indebtedness using the straight line method. Notes payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental fund types recognize debt premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources.

Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

7. Net Position
The government-wide financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted.

Net Investment In Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category.

Restricted Net Position – This category presents external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position – This category represents net position of the City, not restricted for any project or other purpose.

When an expense is incurred for purposes for which both restricted and unrestricted resources are available, the City’s policy is to apply restricted resources first.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
33 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

F. Fund Balance
In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned, or unassigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.
• Nonspendable fund balance – amounts that cannot be spent because they are either (a) not spendable in form or (b) legally or contractually required to be maintained intact. • Restricted fund balance – amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. • Committed fund balance – amounts that can only be used for specific purposes determined by formal action of the City’s highest level of decision-making authority (the City Council) and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. • Assigned fund balance – amounts that are constrained by the City’s intent to be used for specific purposes. The intent can be established at either the highest level of decision making, or by a body or an official designated for that purpose. • Unassigned fund balance – the residual classification for the City’s funds that include amounts not contained in the other classifications.

The City Council establishes, modifies or rescinds fund balance commitments and assignments by passage of an ordinance or resolution.

G. Future Accounting Pronouncements
The provisions of Statement Number 100 “Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62” are effective for fiscal years beginning after June 15, 2023.

The provisions of Statement Number 101 “Compensated Absences” are effective for fiscal years beginning after December 15, 2023.

The provisions of Statement Number 102 “Certain Risk Disclosures” are effective for fiscal years beginning after June 15, 2024.

The provisions of Statement Number 103 “Financial Reporting Model Improvements” are effective for fiscal years beginning after June 15, 2025.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
34 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information
a. General Budget Policies

1. The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them.

2. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the fiscal year. All amendments made during the fiscal year are included in the budgetary amounts reported herein. The “appropriated budget” covers all City expenditures, with the exception of debt service on bond issues and capital improvement projects carried forward from prior fiscal years, which expenditures constitute legally authorized “non-appropriated budget”. Actual expenditures may not exceed budgeted appropriations at the fund level, which is the legal level of control.

3. Formal budgetary integration is employed as a management control device during the fiscal year. Commitments for materials and services, such as purchase orders and contracts, are recorded as encumbrances to assist in controlling expenditures.

Appropriations which are encumbered, lapse at fiscal year-end, and then are added to the following fiscal year’s budgeted appropriations.

4. Budgets for the General and Special Revenue Funds are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America (USGAAP). Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. For the fiscal year ended June 30, 2023 the following nonmajor funds did not have legally adopted budgets : COPS, Dial-a-ride, Asset Forfeiture, Library Literacy, Police Tech Grant, August Worthington, Community Services Grant, STLP, ARPA Utility, CARES, Early Learning Grant, Per Capita, Utility Assistance, SB 1383.

The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council.

Budget comparisons are not presented for the Proprietary Funds, as the City is not legally required to adopt a budget for these fund types.

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

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
35 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued) C. Excess of Expenditures over Appropriations
For the fiscal year ended June 30, 2024, the following funds had excess expenditures over appropriations.

Fund Amount
Major Governmental Fund:

General Fund:

Public Works 1,272,502 $
Capital Outlay 213,677
D. Deficit Fund Equity
At June 30, 2024, the following funds had an accumulated deficit:

Fund Amount
Major Governmental Funds:

Solid Waste 67,671 $
These fund balance deficits are primarily due to the City incurring costs in excess of receiving revenues. The Funds should alleviate these deficits as revenues are received or as General Fund transfers funds.

NOTE 3 – CASH AND INVESTMENTS
Cash and investments as of June 30, 2024 are classified in the accompanying financial statements as follows:

Cash and Investments $ 52,881,358
Cash and Investments with fiscal agent 11,407,508
Total cash and investments 64,288,866 $
Cash and investments as of June 30, 2024 consist of the following:

Cash on hand $ 450
Deposits with financial institutions 35,675,218
Investments 28,613,198
Total cash and investments 64,288,866 $

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
36 NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
A. Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City of Imperial (City) by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio in One Issuer
Bonds issued by the City N/A None None
US Treasury Obligations 5 years None None
Federal Agency Issues 5 years None None
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year None None
Bankers' Acceptances 180 days 40% 30%
Medium Term Notes 5 years 30% None
Money Market Mutual Funds N/A None 10%
Commercial Paper 270 days 25% None
County Pool Investment Funds N/A None None
Local Agency Investment Fund (LAIF) N/A None $75 Million Collateralized Bank Deposits N/A None None
Mortgage Pass-through Securities 5 years 20% None
Shares of Beneficial Interest by a JPA N/A None None
Authorized Investment Type
The investment policy allows for the above investments which have equal safety and liquidity as all other allowed investments. Maturity depends on the cash needs of the City.

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

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
37 NOTE 3 – CASH AND INVESTMENTS (Continued)
B. Investments Authorized by Debt Agreements (Continued) Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio in One Issuer
Local Agency Bonds N/A None None
U.S. Treasury Obligations N/A None None
State Obligations N/A None None
U.S. Government Agency Issues N/A None None
Money Market Mutual Fund N/A None None
Bankers Acceptances N/A None None
Commercial Paper 270 days None None
Certificates of Deposit N/A None None
Repurchase Agreements N/A None None
Investment Agreements N/A None None
Local Agency Investment Fund (LAIF) N/A None None
Authorized Investment Type
The investment policy allows for the above investments which have equal safety and liquidity as all other allowed investments. Maturity depends on the cash needs of the City.

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

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
12 Months 13 to 24 25-60 More Than 60
Totals or Less Months Months Months
State Investment Pool 28,613,198 $ 28,613,198 $ - $ - $ - $ $ 28,613,198 $ 28,613,198 $ - $ - $ -
Remaining maturity (in Months)
Investment Type
D. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City has no investments (including investments held by bond trustees) that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
38 NOTE 3 – CASH AND INVESTMENTS (Continued)
E. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating, as of fiscal year end, for each investment type.

Minimum Exempt
Legal From Not
Investment Type Amount Rating Disclosure AAA AA A Rated State Investment Pool 28,613,198 $ N/A - $ - $ - $ - $ 28,613,198 $ Total $ 28,613,198 $ - $ - $ - $ - $ 28,613,198
Rating as of Fiscal Year End
F. Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer (other than money market) that represent 5% or more of total City’s investments.

G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., 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 policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2024, all of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in collateralized accounts.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
39 NOTE 3 – CASH AND INVESTMENTS (Continued)
H. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

I. Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy establish by generally accepted accounting principles. These principles recognize a three tiered fair value hierarchy as follows: Level 1 – Investments reflect prices quoted in active markets; Level 2 – Investments reflect prices that are based on similar observable asset either directly or indirectly, which may include inputs in markets that are not considered active; and Level 3 – Investments reflect prices based upon unobservable sources. The City did not have any investments applicable to recurring fair value measurements as of June 30, 2024.

NOTE 4 – INTERFUND TRANSACTIONS
A. Interfund Receivables and Payables
During the course of normal operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as “due to and from other funds”. The following presents a summary of current interfund balances at June 30, 2024:

Amount Amount
Major Governmental Fund: Nonmajor Governmental Funds:

General Fund $ 172,866 Per Capita $ 172,866
Totals $ 172,866 Totals $ 172,866
Receivable Fund Payable Fund
B. Transfers between Funds
Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various City operations, and re-allocations of special revenues. All inter-fund transfers between individual government funds have been eliminated on the government-wide statements. The following schedule briefly summarizes the City’s transfer activity for the fiscal year ended June 30, 2024:

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
40 NOTE 4 – INTERFUND TRANSACTIONS (CONTINUED)
B. Transfers between Funds (Continued)
Transfers-in Transfers-out
Major Governmental Funds:

General Fund $ 4,309,013 $ 4,737,889
LTA Measure D 551,298
Capital Projects Capital Projects Fund 967,529 69,255
Major Enterprise Funds:

Water Fund 1,199,987
Sewer Fund 1,220,787
Internal Service Funds:

Risk Management 1,000,000
Information Technology 1,897,593
Equipment Replacement 2,000,000
Nonmajor Governmental Funds:

TCRF Special Revenue Fund
Traffic Safety Special Revenue Fund 2,700
Gas Tax Special Revenue Fund 1,184,290
Local Transportation Special Revenue Fund 168,887
Public Safety Prop 172 Special Revenue Fund 97,900
COPS Grant Special Revenue Fund 300
Housing Rehabilitation Special Revenue Fund 5,000
RLA Special Revenue Fund 5,000
Wildflower Landscaping and Lighting Special Revenue Fund 17,100 Paseo Del Sol Landscaping and Lighting Special Revenue Fund 83,200 Sky Ranch District Special Revenue Fund 99,200
Community Services Special Revenue Fund 44,600
Library Literacy Special Revenue Fund 42,200
Housing General Special Revenue Fund 5,000
Park Impact Fees Special Revenue Fund 25,000
ARPA Special Revenue Fund 600,632
SB 1383 Special Revenue Fund 13,910
Totals $ 10,174,135 $ 10,174,135
Fund
Transfers into the General Fund are related to administrative costs and overheard costs that are part of a city-wide cost allocation plan.

Transfers from the General Fund are related to contributions made from unassigned funds to assist in capital projects and other operating costs of special revenue and capital project funds.

Transfers from the General Fund may also be council approved transfers to offset accumulated deficits that special revenue or capital projects funds may have accumulated due to unanticipated costs or change orders.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
41 NOTE 5 – CAPITAL ASSETS
Capital Asset activity for the fiscal year ended June 30, 2024 was as follows:

Balance at Prior Period Balance at
June 30, 2023 Additions Deletions Transfers Adjustment June 30, 2024 Governmental activities:

Capital assets, not being depreciated:

Land $ 3,329,400 $ - $ - $ - $ - $ 3,329,400
Construction in progress 2,473,467 (2,473,467)
Total capital assets, not being depreciated 5,802,867 (2,473,467) 3,329,400 Capital assets, being depreciated:

Machinery and Equipment 9,215,682 274,518 9,490,200
Infrastructure 46,619,377 129,995 2,473,467 49,222,839
Total capital assets being depreciated 55,835,059 404,513 2,473,467 58,713,039 Less accumulated depreciation for:

Machinery and Equipment (7,478,799) (591,827) (8,070,626) Infrastructure (24,897,343) (1,978,679) (26,876,022)
Total accumulated depreciation (32,376,142) (2,570,506) (34,946,648) Total capital assets, being depreciated, net 23,458,917 (2,165,993) 2,473,467 23,766,391 Governmental activities capital assets, net $ 29,261,784 $ (2,165,993) $ - $ - $ - $ 27,095,791 Balance at Prior Period Balance at
Business-type activities: June 30, 2023 Additions Deletions Transfers Adjustments June 30, 2024 Capital assets, not being depreciated:

Land 278,397 $ - $ - $ - $ - $ 278,397 $
Total capital assets, not being depreciated 278,397 278,397 Capital assets, being depreciated:

Buildings and Improvements 19,270,611 19,270,611
Machinery and Equipment 6,800,236 664,591 7,464,827
Infrastructure 48,768,421 83,358 48,851,779
Total capital assets, being depreciated 74,839,268 747,948 75,587,216 Less accumulated depreciation for:

Buildings and Improvements (17,833,039) (650,953) 87,757 (18,396,235) Machinery and Equipment (6,065,947) (277,052) (6,342,999) Infrastructure (21,580,810) (1,949,758) 366,013 (23,164,555) Total accumulated depreciation (45,473,567) (2,877,763) 453,770 (47,903,789) Total capital assets, being depreciated, net 29,365,701 (2,129,815) 453,770 27,683,427 Business-type activities capital assets, net $ 29,644,098 $ (2,129,815) $ - $ - $ 453,770 $ 27,961,824 Depreciation
Depreciation expense was charged to governmental functions as follows:

General Government $ 856,835
Public Works 856,835
Public Safety 856,835
Total depreciation expense – governmental functions $ 2,570,506 Depreciation expense was charged to business-type functions as follows:

Water $ 1,305,770
Sewer 1,571,993
Total depreciation expense – business-type functions $ 2,877,763

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
42 NOTE 6 – NOTES RECEIVABLE
The City has established a number of housing assistance loan programs using HOME Investment Partnerships Program grant funds. These loans consist of several loans for first-time home buyers assistance and home rehabilitation assistance loans for qualified persons. The City also utilizes Community Development Block Grant (CDBG) to provide business assistance loans and home rehabilitation loans to qualified persons.

NOTE 7 – LONG-TERM LIABILITIES
The following is a schedule of long-term liabilities for Governmental Activities and Business-type Activities for the fiscal year ended June 30, 2024:

Balance at Balance at Due Within
June 30, 2023 Additions Repayments June 30, 2024 One Year Governmental Activities:

Compensated absences 535,562 $ 267,781 $ (267,781) $ 535,562 $ 267,781 $ Total $ 535,562 $ 267,781 $ (267,781) $ 535,562 $ 267,781 Business-type Activities:

Water Fund:

Compensated absences 53,614 $ 1,555 $ (53,614) $ 1,555 $ - $ 2012 Certificates of participation 2,735,000 (635,000) 2,100,000 665,000 2012 Certificates of participation premium 137,375 (41,212) 96,163 41,212 2019 Water revenue bonds 7,930,000 (65,000) 7,865,000 65,000 2019 Water revenue bonds premium 620,684 (22,988) 597,696 22,988 Sewer Fund:

Compensated absences 14,470 5,578 (14,470) 5,578
2012 Certificates of participation 2,940,000 (690,000) 2,250,000 720,000 2012 Certificates of participation premium 37,190 (11,156) 26,034 11,156 2019 Wastewater revenue bonds 15,320,000 (80,000) 15,240,000 85,000 2019 Wastewater revenue bonds premium 935,943 (35,998) 899,945 35,998 Total $30,724,278 $ 7,133 $(1,649,438) $ 29,081,971 $1,646,354

1. Business-type Activities – Water/Wastewater 2012 COP On April 1, 2012, the City issued the 2012 certificates of participation in the amount of $10,065,000 for the water facility and $8,550,000 for the wastewater facility. The proceeds of the sale were used together with other available moneys to provide funds to the City to prepay and defease on a current basis the City’s Refunding Certificates of Participation Series 2001 of which $7,190,000 (water) and $4,995,000 (sewer) remained outstanding, and to finance certain capital improvements to the City’s water and wastewater system, to fund a reserve fund for the Bonds, and to pay certain costs of issuing the Bonds. Interest is payable semi-annually on April and October 15 commencing on October 15, 2012 through October 15, 2026 and ranges from 3% to 5%. As of June 30, 2024, the balances remaining for Water and Wastewater Refunding COPs are $2,100,000 and $2,250,000 respectively. In the event of a default, the full outstanding balance of the debt is due and payable.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
43 NOTE 7 – LONG-TERM LIABILITIES (CONTINUED)
Annual debt service requirements for the Certificates of Participation are shown below:

Fiscal Year
Ended June 30, Principal Interest Total
2025 $ 665,000 $ 88,375 $ 753,375
2026 700,000 54,250 754,250
2027 735,000 18,375 753,375 $ 2,100,000 $ 161,000 $ 2,261,000 2012 Certificates of Participation - Water
Fiscal Year
Ended June 30, Principal Interest Total
2025 720,000 $ 80,324 $ 800,324 $
2026 750,000 49,087 799,087 2027 780,000 16,575 796,575 $ 2,250,000 $ 145,986 $ 2,395,986
2012 Certificates of Participation - Wastewater

2. Business-type Activities – Wastewater Revenue Bonds 2019 On May 1, 2019, the City issued the 2019 Wastewater revenue bonds in the amount of $15,620,000 and pledged the City’s Wastewater Fund as the specific revenue source for the repayment of the debt. The proceeds of the sale were used to provide funds to the City to prepay and defease on a current basis the City’s Wastewater Parity COP 2005 in the amount of $2,105,000 and to finance certain capital improvements to the City’s wastewater system, to fund a reserve fund for the Bonds, and to pay certain costs of issuing the Bonds. Interest is payable semi-annually on April and October 15 commencing on October 15, 2019 through October 15, 2049 and ranges from 3% to 5%.. As of June 30, 2024, the balance outstanding for 2019 Wastewater revenue bonds was $15,240,000. In the event of a default, the full outstanding balance of the debt is due and payable.

On December 1, 2019, the City issued the 2019 Water revenue bonds in the amount of $8,115,000 and pledged the City’s Water Fund as the specific revenue source for the repayment of the debt. The proceeds of the sale were used to provide funds to the City to prepay and defease on a current basis the City’s Water Parity COP 2005 in the amount of $1,535,000 and to finance certain capital improvements to the City’s water system, to fund a reserve fund for the Bonds, and to pay certain costs of issuing the Bonds. Interest is payable semi-annually on April and October 15 commencing on April 15, 2020 through April 15, 2050 and ranges from 3% to 5%.

As of June 30, 2024, the balance outstanding for 2019 Water revenue bonds was $7,865,000. In the event of a default, the full outstanding balance of the debt is due and payable.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
44 NOTE 7 – LONG-TERM LIABILITIES (CONTINUED)

2. Business-type Activities – Wastewater Revenue Bonds 2019 (Continued) Annual debt service requirements for the Revenue Bonds are shown below:

Fiscal Year
Ended June 30, Principal Interest Total
2025 85,000 $ 588,051 $ 673,051 $
2026 90,000 585,426 675,426
2027 90,000 582,726 672,726
2028 465,000 569,751 1,034,751
2029 485,000 546,001 1,031,001
2030-2034 2,835,000 2,335,427 5,170,427
2035-2039 3,030,000 1,716,330 4,746,330
2040-2044 3,310,000 1,153,805 4,463,805 2045-2049 3,975,000 476,707 4,451,707 2050 875,000 14,219 889,219 $ 15,240,000 $ 8,568,443 $ 23,808,443 2019 Wastewater Revenue Bonds
Fiscal Year
Ended June 30, Principal Interest Total
2025 $ 65,000 $ 276,775 $ 341,775
2026 65,000 274,500 339,500 2027 70,000 271,800 341,800 2028 270,000 265,000 535,000
2029 285,000 253,900 538,900
2030-2034 1,570,000 1,089,600 2,659,600 2035-2039 1,580,000 779,606 2,359,606 2040-2044 1,610,000 536,076 2,146,076
2045-2049 1,930,000 215,132 2,145,132
2050 420,000 6,300 426,300 $ 7,865,000 $ 3,968,689 $ 11,833,689 2019 Water Revenue Bonds

3. Compensated Absences
The City’s policy relating to compensated absences is described in Note (1). Compensated absences are liquidated primarily by the general fund and proprietary funds. The total amount outstanding at June 30, 2024, was $535,562 for governmental activities and $7,133 for businesstype activities.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
45 NOTE 8 – RISK MANAGEMENT
California Joint Powers Insurance Authority (CJPIA)
The City is a member of the California Joint Powers Insurance Authority’s (Authority) Joint Liability Protection and worker’s compensation coverage programs. The Authority is composed of 119 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased insurance for property and other lines of coverage. The Authority began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

Audited financial statements for the Authority are available from Finance Director, at California Joint Powers Insurance Authority, 8081 Moody Street, La Palma, California 90623.

NOTE 9 – CONTINGENT LIABILITIES
The City is subject to litigation arising in the normal course of business. In the opinion of the City’s management, there is no pending litigation that is likely to have a material adverse effect on the financial position of the City.

NOTE 10 – OTHER POST EMPLOYMENT BENEFITS
The City does not offer any other post-employment benefits.

NOTE 11 – PENSION PLAN
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

A. General Information about the Pension Plan
Plan Descriptions - All qualified employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans, cost sharing defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and Local Government resolution.

CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
46 NOTE 11 – PENSION PLAN (Continued)
A. General Information about the Pension Plan (Continued) The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:

Hire date
Prior to
January 1,
2013
On or after
January 1,
2013
Prior to
January 1,
2013
On or after
January 1,
2013
Benefit formula 2% @ 55 2% @ 62 3.0% @ 50 3.0% @ 50
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 55 62 50 50
Monthly benefits, as a percentage
of eligible compensation 2.00% 2.00% 3.0% 1.0% to 2.5%
Required employee contribution rates 7.00% 6.25% 9.00% 11.50% Required employer contribution rates 6.709% 6.237% 13.813% 6.237% City Misc Plan City Safety Plan
Contributions - Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July l following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS.

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

B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2024, the City reported net pension liabilities for its proportionate share of the net pension liability of the Plan as follows:

Misc. Plan Safety Plan
$ 3,284,777 $ 3,110,410
Proportionate Share of Net Pension
Liability
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2022 and 2023 was as follows:

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
47 NOTE 11 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
City Miscellaneous City Safety
Plan Plan
Proportion - June 30, 2022 0.06249% 0.04103%
Proportion - June 30, 2023 0.06569% 0.04161%
Change - Increase (Decrease) 0.00320% 0.00058%
For the fiscal year ended June 30, 2024, the City recognized pension expense of $996,599. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date 1,141,471 $ - $ Net differences between projected and actual earnings
on pension plan investments 957,494 Difference between actual vs proportionate contribution 128,105 (100,871) Difference in actual experience 350,585 Changes of assumptions 379,845
Adjustment due to differences in proportions 419,150
Total 3,376,650 $ (100,871) $
$1,141,471 reported as deferred outflows of resources related to contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions and will be recognized as pension expense as follows:

Fiscal Year Ended
June 30, Amount
2024 776,365 $
2025 522,636 2026 808,165
2027 27,142 Total 2,134,308 $
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plans is 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.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
48 NOTE 11 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Actuarial Assumptions - The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2022 valuation were based on the results of a January 2014 actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate - The discount rate used to measure the total pension liability was 6.90% for each Plan.

To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows.

Using historical returns of all the funds’ asset classes, expected compound geometric returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated and adjusted to account for assumed administrative expenses rate.

Miscellaneous Safety
Valuation Date June 30, 2022 June 30, 2022
Measurement Date June 30, 2023 June 30, 2023
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Payroll Growth 3.00% 3.00%
Projected Salary Increase 3.30%-14.20% (1) 3.30%-14.20% (1) Investment Rate of Return 6.90% (2) 6.90% (2)
Mortality
Entry-Age Normal Cost Method
Derived using CalPERS' Membership Data

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
49 NOTE 11 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate -The following presents the net pension liability of the Local Government for each Plan, calculated using the discount rate for each Plan, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:

Discount Rate -1% Current Discount Rate Discount Rate +1%

5.90% 6.90% 7.90%
Employer's Net Pension Liability - Misc 5,343,272 $ 3,284,777 $ 1,590,459 $ Employer's Net Pension Liability - Safety 4,695,466 3,110,410 1,814,514 Employer's Net Pension Liability - Total 10,038,738 $ 6,395,187 $ 3,404,973 $ Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

NOTE 12 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Imperial (City) that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
50 NOTE 12 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT

AGENCY (CONTINUED)
The Bill provides that upon dissolution of a redevelopment agency, either the city or other unit of local government will agree to serve as the “successor agency” to hold the assets units until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of the City resolution number 2012-04.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence as of the date of the dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

Successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

A. Capital assets of the Successor Agency as of June 30, 2024 consisted of the following:

Balance at Balance at
June 30, 2023 Additions Deletions June 30, 2024
Capital assets, not being depreciated:

Land $ 311,012 $ - $ - $ 311,012
Total capital assets, not
being depreciated 311,012 311,012
Total capital assets, net $ 311,012 $ - $ - $ 311,012
B. Long-term debt of the Successor Agency as of June 30, 2024, consisted of the following:

Balance at Balance at Due within
June 30, 2023 Additions Deletions June 30, 2024 one year 2016 A Series Tax Allocation Bond $ 4,445,000 $ - $ (250,000) $ 4,195,000 $ 255,000 2016 B Series Tax Allocation Bond 11,615,000 (580,000) 11,035,000 595,000 Totals $ 16,060,000 $ - $ (830,000) $ 15,230,000 $ 850,000 2016 Series A Tax Allocation Bonds
On May 18, 2016, the Successor Agency of the City of Imperial (the “Agency) issued $6,050,000 refunding the 2005 Tax Allocation Notes. Interest is payable semi-annually every June 1 and December 1 of each year, commencing June 1, 2016 and maturing on June 1, 2037 and ranges from 2% to 4%. As of June 30, 2024, the outstanding principal balance is $4,195,000. In the event of a default, the full outstanding balance of the debt is due and payable.

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
51 NOTE 12 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT

AGENCY (CONTINUED)
2016 Series A Tax Allocation Bonds (Continued)
Fiscal Year
Ended June 30, Principal Interest Total
2025 255,000 157,600 412,600 $
2026 260,000 184,000 444,000
2027 270,000 136,400 406,400 2028 280,000 125,200 405,200 2029 295,000 113,400 408,400
2030-2034 1,665,000 372,200 2,037,200 2035-2037 1,170,000 48,000 1,218,000 $ 4,195,000 $ 1,136,800 $ 5,331,800
2016 Series A Tax Allocation Bonds
2016 Series B Tax Allocation Bonds
On May 18, 2016, the Successor Agency of the City of Imperial (the “Agency) issued $15,145,000 refunding the 2008 Tax Allocation Notes. Interest is payable semi-annually every June 1 and December 1 of each year, commencing June 1, 2016 and maturing on June 1, 2037 and ranges from

0.75% to 4%. As of June 30, 2024, the outstanding principal balance is $11,035,000. In the event of a default, the full outstanding balance of the debt is due and payable.

Fiscal Year
Ended June 30, Principal Interest Total
2025 $ 595,000 $ 401,756 $ 996,756
2026 615,000 383,606 998,606
2027 630,000 364,538 994,538
2028 650,000 342,913 992,913 2029 675,000 320,438 995,438 2030-2034 3,755,000 295,125 4,050,125
2035-2038 4,115,000 164,600 4,279,600
$ 11,035,000 $ 2,272,976 $ 13,307,976
2016 Series B Tax Allocation Bonds

CITY OF IMPERIAL

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
52 NOTE 13 – FUND BALANCES
Fund balance is classified as nonspendable, restricted, committed, assigned, and/or unassigned based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the government funds. The constraints placed on fund balance for the major governmental funds and all other governmental funds are presented as follows:

Fund Balances General
LTDA
Measure D Federal SBA Solid Waste
Capital
Projects
Nonmajor
Governmental
Funds Total
Restricted for:

Community Development - $ $ 1,211,940 - $ $ - $ 3,754,641 - $ $ 4,966,581 Public Safety 1,567,695 1,567,695
Public Works 4,086,418 4,086,418
Parks and Recreation 2,926,620 2,926,620
Total Restricted 1,211,940 12,335,374 13,547,314
Unassigned: 7,943,129 1,072,049 (67,671) 3,023,836 11,971,343 Total Fund Balances 7,943,129 $ $ 1,072,049 $ 1,211,940 $ (67,671) $ 3,023,836 $ 12,335,374 $ 25,518,657 NOTE 14 – PRIOR PERIOD ADJUSTMENT
A prior period adjustment of $87,757 was posted in the Water Fund and business type activities on the government-wide statements due to an overstatement of accumulated depreciation in the prior fiscal year.

A prior period adjustment of $366,013 was posted in the Wastewater Fund and business type activities on the government-wide statements due to an overstatement of accumulated depreciation in the prior fiscal year.

A prior period adjustment of ($152,490) was posted in the General Fund and in governmental activities on the government-wide statements due to an overstatement of accounts receivable in the prior fiscal year.

REQUIRED SUPPLEMENTAL INFORMATION
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Property Taxes $ 1,926,846 $ 1,926,846 $ 2,075,055 $ 148,209 Sales and Use Taxes 3,899,500 3,899,500 3,727,413 (172,087) Business License Taxes 65,000 65,000 70,146 5,146
Transient Occupancy Tax 35,000 35,000 419,697 384,697
Other Taxes 56,711 56,711 351,443 294,732
Licenses and Permits 8,200 8,200 8,151 (49)
Fines and Forfeitures 113,500 113,500 199,570 86,070
Use of Money and Property 6,000 6,000 232,753 226,753
Charges for Services 2,734,410 2,734,410 1,933,608 (800,802) Intergovernmental 2,417,070 2,417,070 2,609,911 192,841 Franchise Tax 250,000 250,000 470,271 220,271
Other 599,750 599,750 91,849 (507,901)
Total Revenues 12,111,987 12,111,987 12,189,867 77,880
Expenditures
Current
General Government 4,436,163 4,436,163 2,812,035 1,624,128 Public Safety 4,970,827 4,970,827 5,594,564 (623,737)
Public Works 1,882,224 1,882,224 2,148,317 (266,093)
Parks and Recreation 2,000,618 2,000,618 2,501,406 (500,788) Community Development 753,621 753,621 927,275 (173,654) Total Expenditures 14,043,453 14,043,453 13,983,597 59,856 Excess (Deficiency) of Revenues Over
(Under) Expenditures (1,931,466) (1,931,466) (1,793,730) 137,736 Other Financing Sources (uses):

Transfers In 1,946,558 1,946,558 4,309,013 2,362,455
Transfers Out (1,946,558) (1,946,558) (4,737,889) (2,791,331) Total Other Financing Sources (Uses) (428,876) (428,876) Net Change in Fund Balance (1,931,466) (1,931,466) (2,222,606) (291,140) Fund Balance - July 1, 2023 10,318,225 10,318,225 10,318,225 Prior Period Adjustments (152,490) (152,490)
Fund Balance - July 1, 2023, Restated 10,318,225 10,318,225 10,165,735 (152,490) Fund Balance - June 30, 2024 $ 8,386,759 $ 8,386,759 $ 7,943,129 $ (443,630) Budgeted Amounts

CITY OF IMPERIAL

GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024

SCHEDULE OF REVENUES, EXPENDITURES,

BUDGET AND ACTUAL

AND CHANGES IN FUND BALANCE
53 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Sales and Use Taxes $ 850,000 $ 850,000 $ 1,962,369 $ 1,112,369 Use of Money and Property 200 200 29,831 29,631
Intergovernmental 8,217,302 8,217,302 (8,217,302)
Total Revenues 9,067,502 9,067,502 1,992,200 (7,075,302) Expenditures
Current
Public Works 727,000 727,000 228,732 498,268
Capital Outlay 8,060,229 8,060,229 8,060,229
Total Expenditures 8,787,229 8,787,229 228,732 8,558,497 Excess (Deficiency) of Revenues Over
(Under) Expenditures 280,273 280,273 1,763,468 1,483,195 Other Financing Sources (uses):

Transfers Out (566,311) (566,311) (551,298) 15,013
Total Other Financing Sources (Uses) (566,311) (566,311) (551,298) 15,013 Net Change in Fund Balance (286,038) (286,038) 1,212,170 1,498,208 Fund Balance - July 1, 2023 (140,121) (140,121) (140,121) Fund Balance - June 30, 2024 $ (426,159) $ (426,159) $ 1,072,049 $ 1,498,208

CITY OF IMPERIAL

SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

LTA MEASURE D SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Budgeted Amounts
54 CITY OF IMPERIAL

REQUIRED SUPPLEMENTAL INFORMATION
JUNE 30, 2024
55 Cost Sharing Defined Benefit Pension Plans
Schedule of the City’s Proportionate Share of the Net Pension Liability – Last 10 Years Notes to Schedule
Change in Benefit Terms: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013 as they have minimal cost impact. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a Golden Handshakes).

Change in Assumptions: In 2023, the accounting discount rate reduced from 7.14% to 6.90%.

In 2017, the accounting discount rate reduced from 7.65% to 7.15%.

Misc Plan Safety Plan Misc Plan Safety Plan Misc Plan Safety Plan Misc Plan Safety Plan Misc Plan Safety Plan Proportion of the net pension liability 0.04726% 0.03965% 0.04640% 0.03980% 0.04310% 0.04135% 0.03591% 0.04491% 0.05532% 0.04857% Proportionate share of the net pension liability 1,781,201 $ $ 2,326,685 $ 1,829,307 $ 2,377,969 $ 1,497,198 $ 2,141,864 $ 1,850,541 985,073 $ $ 1,367,153 $ 1,821,888 Covered-employee payroll $ 3,150,971 $ 1,550,355 $ 1,926,480 $ 1,022,595 $ 1,739,004 $ 1,059,307 $ 1,642,544 $ 1,032,855 $ 1,651,054 $ 1,075,212 Proportionate Share of the net pension liability
as a percentage of covered-employee payroll 56.53% 150.07% 94.96% 232.54% 86.10% 202.19% 59.97% 179.17% 82.80% 169.44% Plan's fiduciary net position $ 8,248,766 $ 5,822,158 $ 7,433,062 $ 5,382,173 $ 6,695,486 $ 4,662,680 $ 6,449,768 $ 5,357,528 $ 5,663,481 $ 5,067,491 Plan's total pension liability $ 10,029,967 $ 8,148,843 $ 9,262,369 $ 7,760,142 $ 8,192,684 $ 6,804,544 $ 7,434,841 $ 7,208,069 $ 7,030,634 $ 6,889,379 Plan fiduciary net position as a percentage of
total pension liability 82.24% 71.45% 80.25% 69.36% 81.73% 68.52% 86.75% 74.33% 80.55% 73.56% Misc Plan Safety Plan Misc Plan Safety Plan Misc Plan Safety Plan Misc Plan Safety Plan Misc Plan Safety Plan Proportion of the net pension liability 0.06569% 0.04161% 0.06249% 0.04103% 0.04426% 0.04057% 0.05447% 0.03873% 0.05071% 0.03895% Proportionate share of the net pension liability 3,284,777 $ $ 3,110,410 $ 2,924,206 $ 2,819,081 $ 840,360 $ 1,423,795 $ 2,297,687 $ 2,580,520 $ 2,030,745 $ 2,431,739 Covered-employee payroll $ 2,749,211 $ 1,512,012 $ 2,756,411 $ 1,435,255 $ 2,811,240 $ 1,432,882 $ 2,791,116 $ 1,336,992 $ 3,332,704 $ 1,779,072 Proportionate Share of the net pension liability
as a percentage of covered-employee payroll 119.48% 205.71% 106.09% 196.42% 29.89% 99.37% 82.32% 193.01% 60.93% 136.69% Plan's fiduciary net position $ 11,935,627 $ 8,443,974 $ 11,318,527 $ 8,040,745 $ 12,326,290 $ 8,667,190 $ 9,716,791 $ 7,193,696 $ 8,941,408 $ 6,473,977 Plan's total pension liability $ 15,220,404 $ 11,554,384 $ 14,242,733 $ 10,859,826 $ 13,166,650 $ 10,090,985 $ 12,014,478 $ 9,774,215 $ 10,972,153 $ 8,905,717 Plan fiduciary net position as a percentage of
total pension liability 78.42% 73.08% 79.47% 74.04% 93.62% 85.89% 80.88% 73.60% 81.49% 72.69% June 30, 2019
June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2024

CITY OF IMPERIAL

REQUIRED SUPPLEMENTAL INFORMATION
JUNE 30, 2024
56 Cost Sharing Defined Benefit Pension Plans
Schedule of Contributions – Last 10 Years
Notes to Schedule
Misc Safety Misc Safety Misc Safety Misc Safety Misc Safety Plan Plan Plan Plan Plan Plan Plan Plan Plan Plan
Contractual required contribution (actuarially
determined) $ 196,053 $ 200,094 $ 146,000 $ 152,674 $ 249,335 $ 161,109 $ 223,103 $ 182,273 $ 313,414 $ 374,623 Contributions in relation to the actuarially
determined contributions (196,053) (200,094) (146,000) (152,674) (249,335) (161,109) (223,103) (182,273) (313,414) (374,623) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered employee payroll $ 3,332,704 $ 1,779,072 $ 3,150,971 $ 1,550,355 $ 1,926,480 $ 1,022,595 $ 173,904 $ 1,059,307 $ 1,642,544 $ 1,032,855 Contributions as a percentage of covered
employee payroll 5.88% 11.25% 4.63% 9.85% 12.94% 15.75% 128.29% 17.21% 19.08% 36.27% Misc Safety Misc Safety Misc Safety Misc Safety Misc Safety Plan Plan Plan Plan Plan Plan Plan Plan Plan Plan
Contractual required contribution (actuarially
determined) $ 628,723 $ 512,748 $ 543,587 $ 453,012 $ 486,544 $ 442,037 $ 425,121 $ 501,738 $ 305,578 $ 412,284 Contributions in relation to the actuarially
determined contributions (628,723) (512,748) (543,587) (453,012) (486,544) (442,037) (425,121) (501,738) (305,578) (412,284) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered employee payroll $ 2,749,211 $ 1,512,012 $ 2,749,211 $ 1,512,012 $ 2,756,411 $ 1,435,255 $ 2,811,240 $ 1,432,882 $ 2,791,116 $ 1,336,992 Contributions as a percentage of covered
employee payroll 22.87% 33.91% 19.77% 29.96% 17.65% 30.80% 15.12% 35.02% 10.95% 30.84% June 30, 2019
June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2024
Actuarial Cost Method Entry Age Normal
Amortization Method/Period For detail, see June 30, 2012 Funding Valuation Report Assets Valuation Method Actuarial Value of Assets. For details, see June 30, 2012 Funding Valuation Report.

Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Payroll Growth 3.00%
Investment Rate of Return 6.90% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

Retirement Age The probabilities of Retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007.

Mortality The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Preretirement and Post-retirement mortality rates included 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries.
57 Page intentionally left blank

OTHER SUPPLEMENTAL INFORMATION
58 59

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
______________________________
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.
______________________________
The Traffic Congestion Relief Fund was established to account for TCRF funding for streets and road projects to ease congestion.

The Traffic Safety Fund was established to account money received for traffics safety programs.

The Gas Tax Fund was established to account for state gas tax revenues based on population.

The revenues may be expended only for street and road repair, maintenance, design, construction, and traffic signal design and installation.

The Local Transportation Fund was established to funding received for local transportation capital projects.

The Dial-A-Ride Fund was established to account for monies received as part of the TDA paratransit program.

The Successor Housing Fund was established to account for the housing loan and housing rehabilitation loans as part of the former redevelopment agency.

The Public Safety Prop 172 Fund was established to account for Prop 172 public safety funds received by the City and dedicated to local public safety.

The COPS Grants Fund was established to account for monies received as part of several COPS police hiring grant from the United States Department of Justice.

The Asset Forfeiture Fund was established to account for monies received from asset seizures in the City’s jurisdiction. The monies are to be spent on police protection and enforcement. 60 The CDBG HOME Fund was established to account for federal grants under the Housing and Community Development Act, to assist low and moderate income groups in obtaining loans to rehabilitate or revitalize their homes.

The Housing Rehabilitation Fund was established to account for funds to assist low and moderate income groups in obtaining loans to rehabilitate or revitalize their homes.

The ED CDBG Grants Fund was established to account for federal planning grants under the Housing and Community Development Act.

The RLA Fund was established to bridge the gap between old development and new development where Landscaping and Lighting Districts are not set up.

The Wildflower Landscaping and Lighting Fund was established to account for revenues received and expenditures made for projects and maintenance within the Wildflower Landscaping and Lighting District.

The Paseo Del Sol Landscaping and Lighting Fund was established to account for revenues received and expenditures made for projects and maintenance within the Paseo Del Sol Landscaping and Lighting District.

The Joshua Tree Street Improvement Fund was established to account for revenues received and expenditures made for Joshua Tree Street Improvement project.

The Library Donation Fund was established to account for donations received at the library.

The Sky Ranch District Fund was established to account for revenues received and expenditures made for projects and maintenance within the Sky Ranch District.

The Prop 1B Fund was established to account for Prop 1B funds that are used for local streets and roads.

The Library Literacy Fund was established to account for funds received and expended as part of the library literacy program.

The Police Technology Grant Fund was established to account for funds received as part of police technology grants.

The Austin Worthington Roads Fund was established to account for costs related to Austin Worthington Roads projects.
61 The Community Services Grant Fund was established to account for community services grants.

The General Housing Fund was established to account program revenue and costs associated with general housing programs.

The Fire Impact Fees Fund was established to account for fire impact fees.

The Police Impact Fees Fund was established to account for police impact fees.

The Administrative Impact Fees Fund was established to account for administrative impact fees.

The Library Impact Fees Fund was established to account for library impact fees.

The Park Impact Fees Fund was established to account for park impact fees.

The Circulation Impact Fees Fund was established to account for circulation impact fees.

The STPL Fund was established to account for funds received and expended for highway planning and construction projects.

The EDA Fund was established for funds received for Economic Development Administration programs.

The SB 1 Fund was established to account for funds provided for street projects as part of California Senate Bill 1.

ARPA Utility Fund was established to account for funds received as part of the American Rescue Plan dedicated towards utility assistance.

CARES Fund was established to account for funds received as part of COVID-19 Economic Relief Act.

Early Learning Grant Fund was established to account for funds received as part of California Early Learning and Care Workforce Development Pathways Grant.

Per Capita Grant Fund was established to account for funds made available for local park rehabilitation, creation, and improvement grants to local governments on a per capita basis Utility Assistance Fund was established to account for funds provided for utility assistance for residents.

SB 1383 Fund was established to account funding provided as part of SB 1383 to measure and report organic waste material activity, including composting and anaerobic digestion.

Traffic Gas Local Dial-ASafety Tax Transportation Ride Assets
Cash and Investments $ 16,173 $ 435,096 $ 394,633 $ 14,904 Accounts Receivable 7,364
Loans Receivable
Total Assets $ 16,173 $ 435,096 $ 401,997 $ 14,904
Liabilities
Accounts Payable $ - $ - $ - $ -
Due To Other Funds
Total Liabilities
Deferred Inflows of Resources:

Loan Related
Total Deferred Inflows of Resources
Total Liabilities and Deferred Inflows
of Resources
Fund Balances (Deficits)
Restricted 16,173 435,096 401,997 14,904
Unassigned
Total Fund Balances (Deficits) 16,173 435,096 401,997 14,904 Total Liabilities and Fund Balances $ 16,173 $ 435,096 $ 401,997 $ 14,904

CITY OF IMPERIAL

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2024
Special Revenue Funds
62 Public
Successor Safety Asset CDBG HOME Housing
Housing Prop 172 COPS Grants Forfeiture Grant Rehab
$ 275,254 $ 123,394 $ 215,819 $ 483 $ 155,131 $ 106,291 3 158,000 582,736 273,607
$ 433,254 $ 123,397 $ 215,819 $ 483 $ 737,867 $ 379,898 $ - $ - $ 348 $ - $ - $ -
348
158,000 582,736 273,607
158,000 582,736 273,607
158,000 348 582,736 273,607
275,254 123,397 215,471 483 155,131 106,291
275,254 123,397 215,471 483 155,131 106,291
$ 433,254 $ 123,397 $ 215,819 $ 483 $ 737,867 $ 379,898 Continued
Special Revenue Funds
63 Wildflower Paseo Del Sol
ED Landscape Landscape
CDBG RLA Lighting Lighting
Assets
Cash and Investments $ 51 $ 83,105 $ 325,536 $ 24,685
Accounts Receivable
Loans Receivable 149,816
Total Assets $ 51 $ 232,921 $ 325,536 $ 24,685
Liabilities
Accounts Payable $ - $ - $ 1,419 $ 1,135
Due To Other Funds
Total Liabilities 1,419 1,135
Deferred Inflows of Resources:

Loan Related 149,816
Total Deferred Inflows of Resources 149,816
Total Liabilities and Deferred Inflows
of Resources 149,816 1,419 1,135
Fund Balances (Deficits)
Restricted 51 83,105 324,117 23,550
Unassigned
Total Fund Balances (Deficits) 51 83,105 324,117 23,550 Total Liabilities and Fund Balances $ 51 $ 232,921 $ 325,536 $ 24,685 Special Revenue Funds

CITY OF IMPERIAL

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2024
(CONTINUED)
64 Joshua
Tree Street Library Sky Ranch Library Austin
Improvement Donation District Literacy Worthington
$ 31,922 $ 964 $ 715,699 $ 60,156 $ 97,694
$ 31,922 $ 964 $ 715,699 $ 60,156 $ 97,694
$ - $ - $ 10,319 $ 3,889 $ -
10,319 3,889
10,319 3,889
31,922 964 705,380 56,267 97,694
31,922 964 705,380 56,267 97,694
$ 31,922 $ 964 $ 715,699 $ 60,156 $ 97,694
Continued
Special Revenue Funds
65 Community Fire Police Admin
Services General Impact Impact Impact
Grant Housing Fees Fees Fees
Assets
Cash and Investments $ 104,589 $ 564,384 $ 236,048 $ 992,443 $ 1,054,133 Accounts Receivable
Loans Receivable 97,512
Total Assets $ 104,589 $ 661,896 $ 236,048 $ 992,443 $ 1,054,133 Liabilities
Accounts Payable $ 4,460 $ - $ - $ 147 $ -
Due to Other Funds
Total Liabilities 4,460 147
Deferred Inflows of Resources:

Loan Related 97,512
Total Deferred Inflows of Resources 97,512
Total Liabilities and Deferred Inflows
of Resources 4,460 97,512 147
Fund Balances (Deficits)
Restricted 100,129 564,384 236,048 992,296 1,054,133
Unassigned
Total Fund Balances (Deficits) 100,129 564,384 236,048 992,296 1,054,133 Total Liabilities and Fund Balances $ 104,589 $ 661,896 $ 236,048 $ 992,443 $ 1,054,133

CITY OF IMPERIAL

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2024
(CONTINUED)
Special Revenue Funds
66 Library Park Circulation
Impact Impact Impact
Fees Fees Fees EDA SB 1
$ 796,258 $ 1,973,002 $ 872,578 $ 614,308 $ 1,163,007
$ 796,258 $ 1,973,002 $ 872,578 $ 614,308 $ 1,163,007
$ - $ - $ - $ - $ -
796,258 1,973,002 872,578 614,308 1,163,007
796,258 1,973,002 872,578 614,308 1,163,007
$ 796,258 $ 1,973,002 $ 872,578 $ 614,308 $ 1,163,007
Special Revenue Funds
67 ARPA Early Learning
Utility CARES Grant Per Capita
Assets
Cash and Investments $ 4,279 $ 19,417 $ 56,102 $ -
Accounts Receivable 172,866
Loans Receivable
Total Assets $ 4,279 $ 19,417 $ 56,102 $ 172,866
Liabilities
Accounts Payable $ - $ - $ - $ -
Due to Other Funds 172,866
Total Liabilities 172,866
Deferred Inflows of Resources:

Loan Related
Total Deferred Inflows of Resources
Total Liabilities and Deferred Inflows
of Resources 172,866
Fund Balances (Deficits)
Restricted 4,279 19,417 56,102
Unassigned
Total Fund Balances (Deficits) 4,279 19,417 56,102
Total Liabilities and Fund Balances $ 4,279 $ 19,417 $ 56,102 $ 172,866

CITY OF IMPERIAL

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2024
(CONTINUED)
Special Revenue Funds
68 Total
Nonmajor
Utility Governmental
ARPA Assistance SB 1383 Funds
$ 747,826 $ 20,154 $ 54,350 $ 12,349,868
180,233
1,261,671
$ 747,826 $ 20,154 $ 54,350 $ 13,791,772
$ 144 $ - $ - $ 21,861
172,866
144 194,727
1,261,671
1,261,671
144 1,456,398
747,682 20,154 54,350 12,335,374
747,682 20,154 54,350 12,335,374
$ 747,826 $ 20,154 $ 54,350 $ 13,791,772
Special Revenue Funds
69 Traffic Gas Local Dial-ASafety Tax Transportation Ride Revenues:

Use of Money and Property $ 394 $ 22,890 $ 11,928 $ 297 Charges for Services 7,567
Intergovernmental 594,097 165,000
Other
Total Revenues 7,961 616,987 176,928 297
Expenditures:

Current:

Community Development
Public Safety
Public Works 10,336
Parks and Recreation
Capital Outlay
Total Expenditures 10,336
Excess (Deficiency) of Revenues
over (Under) Expenditures 7,961 616,987 166,592 297
Other Financing Sources (Uses):

Transfers In
Transfers Out (2,700) (1,184,290) (168,887)
Total Other Financing
Sources (Uses) (2,700) (1,184,290) (168,887)
Net Change in Fund Balances 5,261 (567,303) (2,295) 297 Fund Balances - June 30, 2023 10,912 1,002,399 404,292 14,607 Prior Period Adjustments
Fund Balances - June 30, 2023, Restated 10,912 1,002,399 404,292 14,607 Fund Balances - June 30, 2024 $ 16,173 $ 435,096 $ 401,997 $ 14,904

CITY OF IMPERIAL

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2024
Special Revenue Funds
70 Public
Successor Safety Asset CDBG HOME Housing
Housing Prop 172 COPS Grants Forfeiture Grant Rehab
$ 28,334 $ 1,148 $ 6,222 $ 366 $ 4,593 $ 4,080
140,503 173,756 54,949
28,334 141,651 179,978 366 4,593 59,029
119,698 16,169
119,698 16,169
28,334 141,651 60,280 (15,803) 4,593 59,029
(97,900) (300) (5,000)
(97,900) (300) (5,000)
28,334 43,751 59,980 (15,803) 4,593 54,029
246,920 79,646 155,491 16,286 150,538 52,262
246,920 79,646 155,491 16,286 150,538 52,262
$ 275,254 $ 123,397 $ 215,471 $ 483 $ 155,131 $ 106,291 Continued
Special Revenue Funds
71 Wildflower Paseo Del Sol
ED Landscape Landscape
CDBG RLA Lighting Lighting
Revenues:

Use of Money and Property $ 1 $ 6,278 $ 8,739 $ 3,936
Charges for Services 67,111 71,292
Intergovernmental
Other
Total Revenues 1 6,278 75,850 75,228
Expenditures:

Current:

Community Development
Public Safety
Public Works 7,041 7,235
Parks and Recreation
Capital Outlay
Total Expenditures 7,041 7,235
Excess (Deficiency) of Revenues
over (Under) Expenditures 1 6,278 68,809 67,993
Other Financing Sources (Uses):

Transfers In
Transfers Out (5,000) (17,100) (83,200)
Total Other Financing
Sources (Uses) (5,000) (17,100) (83,200)
Net Change in Fund Balances 1 1,278 51,709 (15,207)
Fund Balances - June 30, 2023 50 81,827 272,408 38,757
Prior Period Adjustments
Fund Balances - June 30, 2023, Restated 50 81,827 272,408 38,757 Fund Balances - June 30, 2024 $ 51 $ 83,105 $ 324,117 $ 23,550

CITY OF IMPERIAL

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2023
(CONTINUED)
Special Revenue Funds
72 Joshua
Tree Street Library Sky Ranch Library Austin
Improvement Donation District Literacy Worthington
$ 635 $ 19 $ 21,546 $ 1,979 $ 1,944
231,509
55,150
20 635 39 253,055 57,129 1,944
32,887
54,566
32,887 54,566
635 39 220,168 2,563 1,944
(99,200) (42,200)
(99,200) (42,200)
635 39 120,968 (39,637) 1,944
31,287 925 584,412 95,904 95,750
31,287 925 584,412 95,904 95,750
$ 31,922 $ 964 $ 705,380 $ 56,267 $ 97,694
Continued
Special Revenue Funds
73 Community Fire Police Admin
Services General Impact Impact Impact
Grant Housing Fees Fees Fees
Revenues:

Use of Money and Property $ 1,619 $ 13,011 $ 6,818 $ 32,397 $ 31,962 Charges for Services 10,631 5,732 12,351 12,949
Intergovernmental 100,982
Other
Total Revenues 102,601 23,642 12,550 44,748 44,911
Expenditures:

Current:

Community Development
Public Safety 63,104
Public Works
Parks and Recreation 3,727
Capital Outlay 56,701 18,721
Total Expenditures 3,727 119,805 18,721
Excess (Deficiency) of Revenues
over (Under) Expenditures 98,874 23,642 12,550 (75,057) 26,190 Other Financing Sources (Uses):

Transfers In
Transfers Out (44,600) (5,000)
Total Other Financing
Sources (Uses) (44,600) (5,000)
Net Change in Fund Balances 54,274 18,642 12,550 (75,057) 26,190 Fund Balances - June 30, 2023 45,855 545,742 223,498 1,067,353 1,027,943 Prior Period Adjustments
Fund Balances - June 30, 2023, Restated 45,855 545,742 223,498 1,067,353 1,027,943 Fund Balances - June 30, 2024 $ 100,129 $ 564,384 $ 236,048 $ 992,296 $ 1,054,133 Special Revenue Funds
(CONTINUED)

CITY OF IMPERIAL

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2023
74 Library Park Circulation
Impact Impact Impact
Fees Fees Fees EDA SB 1
$ 24,566 $ 58,406 $ 15,696 $ 12,223 $ 27,759
13,440 76,751 20,214
543,839
38,006 135,157 35,910 12,223 571,598
40,736
40,736
(2,730) 135,157 35,910 12,223 571,598
(25,000)
(25,000)
(2,730) 110,157 35,910 12,223 571,598
798,988 1,862,845 836,668 602,085 591,409
798,988 1,862,845 836,668 602,085 591,409
$ 796,258 $ 1,973,002 $ 872,578 $ 614,308 $ 1,163,007
Special Revenue Funds
75 ARPA Early Learning
Utility CARES Grant Per Capita
Revenues:

Use of Money and Property $ 1,309 $ 666 $ 1,452 $ -
Charges for Services
Intergovernmental 8,473 177,952
Other
Total Revenues 1,309 666 9,925 177,952
Expenditures:

Current:

Community Development 26,745
Public Safety
Public Works
Parks and Recreation
Capital Outlay
Total Expenditures 26,745
Excess (Deficiency) of Revenues
over (Under) Expenditures 1,309 666 (16,820) 177,952
Other Financing Sources (Uses):

Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
Net Change in Fund Balances 1,309 666 (16,820) 177,952
Fund Balances - June 30, 2023 2,970 18,751 72,922 (177,952) Prior Period Adjustments
Fund Balances - June 30, 2023, Restated 2,970 18,751 72,922 (177,952) Fund Balances - June 30, 2024 $ 4,279 $ 19,417 $ 56,102 $ - Special Revenue Funds
(CONTINUED)

CITY OF IMPERIAL

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2023
76 Total
Nonmajor
Utility Governmental
ARPA Assistance SB 1383 Funds
$ 39,316 $ 401 $ - $ 392,930
529,547
99,503 2,114,204
20 39,316 401 99,503 3,036,701
71,100 31,243 129,088
198,971
57,499
99,029
54,855 130,277
125,955 31,243 614,864
(86,639) 401 68,260 2,421,837
(600,632) (13,910) (2,394,919)
(600,632) (13,910) (2,394,919)
(687,271) 401 54,350 26,918
1,434,953 19,753 12,308,456
1,434,953 19,753 12,308,456
$ 747,682 $ 20,154 $ 54,350 $ 12,335,374
Special Revenue Funds
77 Total
Internal
Risk Information Equipment
Management Technology Replacement
Assets
Current Assets:

Cash and Investments $ 1,000,000 $ 1,058,751 $ 2,000,000 $ 4,058,751 Total Assets 1,000,000 1,058,751 2,000,000 4,058,751
Liabilities
Current Liabilities:

Accounts Payable 35,147 35,147
Total Current Liabilities 35,147 35,147
Total Liabilities 35,147 35,147
Net Position
Net Investment in Capital Assets
Unrestricted 1,000,000 1,023,604 2,000,000 4,023,604
Total Net Position $ 1,000,000 $ 1,023,604 $ 2,000,000 $ 4,023,604 Service

CITY OF IMPERIAL

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2024
Funds
78 Total
Internal
Risk Information Equipment
Management Technology Replacement
Operating Revenues
Charges for Services $ - $ 33,274 $ - $ 33,274
Total Operating Revenues 33,274 33,274
Operating Expenses
Personnel 430,658 430,658
Materials and Supplies 185,001 185,001
Administrative 291,604 291,604
Total Operating Expenses 907,263 907,263
Operating Income (Loss) (873,989) (873,989)
Income (Loss) Before Transfers (873,989) (873,989)
Transfers
Transfers In 1,000,000 1,897,593 2,000,000 4,897,593
Changes in Net Position 1,000,000 1,023,604 2,000,000 4,023,604 Net Position - Beginning of Fiscal Year
Net Position - End of Fiscal Year $ 1,000,000 $ 1,023,604 $ 2,000,000 $ 4,023,604

CITY OF IMPERIAL

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Service
Funds
79 Total
Internal
Risk Information Equipment
Management Technology Replacement
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash Received from Users $ - $ 33,274 $ - $ 33,274
Cash Payments to Suppliers and Contractors (441,458) (441,458) Cash payments for employees and benefit programs (430,658) (430,658) Net Cash Provided (Used) By Operating Activities (838,842) (838,842)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in (out) 1,000,000 1,897,593 2,000,000 4,897,593 Net Cash Provided (Used) By Noncapital Financing Activities 1,000,000 1,897,593 2,000,000 4,897,593

NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 1,000,000 1,058,751 2,000,000 4,058,751

CASH AND CASH EQUIVALENTS, BEGINNING OF FISCAL YEAR
CASH AND CASH EQUIVALENTS, END OF FISCAL YEAR $ 1,000,000 $ 1,058,751 $ 2,000,000 $ 4,058,751 Reconciliation to Statement of Net Position:

Cash and Cash Equivalents $ 1,000,000 $ 1,058,751 $ 2,000,000 $ 4,058,751 CASH FLOWS FROM OPERATING ACTIVITIES:

Operating Income (Loss) $ (873,989) - $ $ (873,989) - $ Adjustment to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by Operating
Activities:

Increase (Decrease) in Accounts Payable 35,147 35,147
Total Adjustments 35,147 35,147
Net Cash Provided (Used) By Operating Activities $ - $ (838,842) $ - $ (838,842) Service
Funds

CITY OF IMPERIAL

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
80 DAI It SUItMlt.l Et)

SUBMI'TTED BY

COMMI JNI'I'Y
DEVDI-0PM}1N I
DtRI:('tOR
I t2.t t2026

IMPERIAL CITY COUNCIL

AGENDA ITEM
Agenda ltem No.

CO(JNCIL ACTION (x
PUlll.tc HEARTN(i RtTQtJIRED (
RIiSOI.U I.ION (
I)A I li AC lloj,( RlrQt rtRED
SUBiECT: DISC tJ S S ION/ACTION:

ACCEPTANCE OF AN SO.FOOT RESERVATION OF PORTION OF
BELFORD ROAD AND SR-86
Acceplonce of an t0-fool Reserv tion of Portion of Belfitrd Road and SR-86 (APN: 063-0s4-038)

DEPARTMENT
INVOI,VED:

COMMTJNITY DEVELOPMENT
BACKGROUND/SIJMMARY:

The subject property is an existing legal parcel located along Belford Road extending to State Roule 86 (APN 063-054-038). Although Belford Road exists and functions as a public roadway, no formal roadway reservalion has previously been recorded at this location. As development activity continues in the surrounding area. the absence of a recorded reservation creates uncertainty regarding future roadway improvements. access requirements, and right-of-way needs.

To proactively address this issue and avoid potential conflicts with future development, City staff requested Dynamic Consulting Engineers. Inc. to prepare a legal description and exhibit establishing an 80-loot road reservation consistent with City roadway standards. Recording the reservation at this time provides long-term certainty for both the City and future development by clearly identi[,ing the intended right-of-way width. The reservation supports the City's long-range circulation planning by preserving adequate right-of-way for potential roadway improvements, utilities, and public safety enhancements.

The proposed reservation does not create a subdivision, does not alter the legal status of the existing parcel. and does not involve any physical construction or improvements. The proposed action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and Section 15305 (Minor Alterations in Land Use Limitations), as the action involves the recordation ofa roadway reservation with no expansion of use and no physical changes to the site.

The approved legal description and exhibit are attached as "Exhibit A" and "Exhibit B" tbr reference.

FISCAL IMPACT: 5162.00 (recording fees)
0l -350-5210 AI)MIN SI -RVI('I]S SIG\
l\l AI.S n MS,
STAFF RECOMMENDATION:
l. Staf rec'ommends approvol of the CertiJicate of
Compliance for the 80-foot reservation as described
qnd illustated in "E\hibit A" & "Exhibit B"
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MANAGER'S RECOMMENDATION ,,_||ryilr/ ('lIYMANACLRs
INII'IALS l*{1
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DISAPPR()VF_D ( )
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EXHIBIT "A

LEGAL DESCNIPTION
THAT PORTION OF THAT REAL PROPERTY lN THE Clry OF IMPERIAL, TO\ /i.lSHlP 15 SOUTH, RANGE 14 EAST. SAN BERNARDINO MERIDIAN, CONVEYED TO THE CITY OF IMPERIAL , A MUNICIPAL CORPORATION. BY DIRECTOR'S DEED PER OOCUMENT NUMBER 2017000521, RECORDED JANUARY 10. 2017, IN THE OFFICE OF THE COUNTY RECORDER OF IMPERIAL COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWEST CORNER OF TRACT 133, TOWISHIP 15 SOUTH. RANGE 14 EAST. SAN BERNARDINO MERIDIAN. SAID POINT BEARS SOUTH 00"22'46" EAST.2654 16 FEET FROM THE NORTHWEST CORNER OF SAID TRACT PER SAID DIRECTOR'S DEED;
THENCE THE FOLLOWNG NINE (9) COURSES PER SAID DIRECTOR'S DEED:

THENCE SOUTH 89"35'42" EAST. ,185.06 FEET ALONG THE SOUTH LINE OF SAID TRACT 133, THENCE NORTH OO'22'46" WEST. 41,97 FEET:

THENCE NORTH 89"35'42" EAST, 13 47 FEET TO THE BEGINNING OF A NON-TANGENT 4930 69 FOOT RADIUS CURVE CONCAVE SOUTHWESTERLY, A RADIAL TO WHICH BEARS NORTH 86'51'26" EAST, THENCE NORTHERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 9"14'3,1". AN ARC DISTANCE OF 795,32 FEET;
THENCE NORTH 'r2'23',05" WEST. 496 47 FEET TO THE TRUE pOtNT OF BEG|NN|NG (T.p.O.B.)l THENCE CONTINUING NORTH 12'23'05'WEST, 256.33 FEET TO THE BEGINNING OF A 5O7O 92 FOOTRADIUS

CURVE CONCAVE NORTHEASTERLY
THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 04'15'31". AN ARC DISTANCE OF 376 91 FEET TO A POINT ON THE WESTERLY RIGHT OF WAY LINE OF STATE HIGHWAY 11-IMP-86 ACCORDING TO RECORD OF SURVEY 12.67 ON FILE IN THE OFFICE OF THE COUNTY RECORDER OF IMPERIAL COUNTY; THENCE SOUTH OO'23'47" EAST,623,78 FEET:

THENCE NORTH 88'44',08" EAST, 117.78 FEET TO THE TRUE pOINT OF BEGtNNtNG (T.p.O.B.).

EXCEPTING THEREFROM. A RESERVATION FOR THE BENEFIT OF THE GRANTOR, ITS SUCCESSORS AND ASSIGNS

A PERPETUAL NON-EXCLUSIVE EASEMENT FOR INGRESS, EGRESS, AND PUBLIC UTILITY PURPOSES OVER, ACROSS, AND THROUGH A STRIP OF LAND, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWEST CORNER OF TRACT 133, TOWNSHIP 15 SOUTH, RANGE 14 EAST. SAN BERNARDINO MERIDIAN. SAID POINT BEARS SOUTH 00"22'46' EAST. 2654 16 FEET FROM THE NORTH\A/EST CORNER OF SAID TRACT PER SAID DIRECTOR'S DEED:

THENCE THE FOLLOWNG NINE (9) COURSES PER SAID DIRECTOR'S DEED 1 2
3 4
5 6
7 8
THENCE SOUTH 89"35'42" EAST, 185.06 FEET ALONG THE SOUTH LINE OF SAID TRACT 133, THENCE NORTH 00'22'46" WEST. 41,97 FEETi
THENCE NORTH 89'35'42" EAST, 13,47 FEET TO THE BEGINNING OF A NON.TANGENT 4930,69 FOOT RADIUS CURVE CONCAVE SOUTHWESTERLY. A RADIAL TO WHICH BEARS NORTH 86'51'26' EAST THENCE NORTHERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 9'14'31'. AN ARC DISTANCE OF 795.32 FEET,
THENCE NORTH 12"23',05" WEST, 496.47 FEET TO THE TRUE potNT OF BEGtNNtNG (T.p.O.B.):

THENCE CONTINUING NORTH 12"23'05" WEST,81,52 FEET,
THENCE SOUTH 88"44'08" WEST, ,100.84 FEET]
THENCE SOUTH OO'23'47' EAST. 80 OO FEET;
THENCE NORTH 88"44',08" EAST, 117 78 FEET TO THE TRUE potNT OF BEGtNNING (T.p.O.B.), THE ABOVE DESCRIBED PROPERTY CONTAINS 25.311.72 SQUARE FEET. MORE OR LESS AS SHOWN ON EXHIBIT "B", ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF TAN' I
SUBJECT 10 ALL COVENANTS, EASEMENTS, AND AGREEMENTS OF RECORD No 8482
txt 12 ir 26
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PAGE 1 OF 1
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1. 2

3. 4.

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7. 8.

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EXHIBIT "8"
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NOTE:

THIS LEGAL DESCRIPIION PLAT IS

BASED ON RECORD DATA PER
DIRECTOR'S DEED PER DOC. NO,
2O17OOO521, RECORDED JANUARYl O.
2017, OF OFFICIAL RECORDS,
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LEGEND,
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RAD_=ry8!"!1-26"q

DATE SUBMITTED

SUBMITTED BY

DATE ACTION REQUIRED
1t1st2026
Caty i,llanage/s Office
1t21t26

IMPERIAL CITY COUNCIL

AGENDA ITEM
Agenda ltcm No. Lr'l
COLNCIL ACTION (x)

PUBLIC HEARINC REQUIRED ()

RESOLUTION ()
oRDINANCE tsr READTNG ( )
ORDINANCE 2ND READTNC ( )

CITY CLERK'S INITIALS ()
St.]BJ I]CT DI SCUSSION/ACTION:

Appointment of primary and alternate representatives to various committees and commissions by Mayor Obeso-Martinez tor 2026 DEPAR IMEN I INVOLVI:I): City Manage/s Office
Attached is a list of the committees and commissions and a summary of the various boards.

FISCAL IMPACT:

N/A
I]INANCti

INITIALS
SI AI:I] RECOMMI]NDA'I I()N:

Consider and approve appointments as recommended by
the Mayor.

I)IiPT- INIIIALS
CITY
MANACER's

INI-I'IALS
M(I tON

SECONDED
AYES:

NAYES:

ABSENT:

APPRoVEI) 0
D|SAPPROVI:]I) ()
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BACKCROI.JNI)/ST]MMARY:

The City of lmperial City Council reorganized on December 17 , 2025. As such, the Mayor is requested to recommend appointment to various local, regional and state committees and commissions for the 2026 calendar year.
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Agenda ltem No.
n-1 \./ 4

DATE SUBMITTED

SUBMITTED BY

DATE ACTION REQUIRED

COUNCIL ACTION

PUBLIC HEARING REQUIRED
R.ESOLUTION

ORDINANCE IST READINC
ORDINANCE 2ND READING

CITY CLERK'S INITIALS
I11t26

PI IRI I(' SFRVICFS
t/2t t26

IMPERIAL CITY COUNCIL

AGENDA ITEM
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STJBJECT: DTSCUSSION/ACTION: WWTP Demolition Project, CIP # Ed9, BID NO. 2025-19 l. Reject oll bids for the Woslewoter Treotment Plont Demolilion Project (ClP #849, BID NO. 2025-19) ond Authorlze Re-bidding of the Project DEPARTMENTINVOLVED: PUBLICSERVICES

BACKGROU ND/SUMMARY
On November 4, 2025, lhe City Council oulhorized city stoff to corry oul o competitive publlc bid for lhe obove described project. Stoff releosed o Notice to Bidders published in lhe lmperiol Volley Press, the City website ond plon rooms to solicit proposols from conlroclors lo complele lhe project. Bids were opened on December 18, 2025.

The City received five (5) bids: See Exhibit "l" - Bid Tobulotion Sheet, for deloils.

City stoff recommends lhot oll bids be rejected ot this lime. During the review process, stoff delermined lhot the overoll project scope should be reossessed to ensure thot the gools, budget, ond longjerm operolionol needs of the wostewoter treotmenl plonl ore fully met. Rejecting the cunent bids will ollow stoff lo reline projecl requirements, updote specificotions os necessory, ond ensure lhot ony future solicitotion reflects the most effeclive ond responsible use of ovoiloble lunds.
lf re-bidding is opproved, the project will be re-odvertised in occordonce with the Public Controct Code (PCC). Any significont revisions lo the projecl will be presenled to the City Council for opprovol.

FISCAL IMPACT:

There is no fiscol impoct ossocioted with rejecting the bids.

FINANCE

INITIALS
STAFF RECOMMENDATION:

Approve the requesl lo rejecl oll bids ond outhorize the project to be re-bid.

DEPT.

INITIALS
CITY
MANAGER's
INITIALS lM4

REJECTED

DEFERRED
MO',nON
SECONDED:

AYES:

NAYES:

ABSENT:

APPROVED 0
DISAPPROVED 0
REFERRED TO:
(
(
Urs
MANACER'S RECOMMENDATION:
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Alr&/wvYlt /lud-,Dr\-^
Exhibit "1"
SPREADSHEET OF COSTS PER DECEMBER .I8, 2025 BID OPENING City ol lnp.n.l - I'v..l ri.. TG.ln{l Pl.rt O.6olio. P@iGl aid No.2o2torl. TxG rtord No 173.lll
Pyr.nid Con.truction &
Whill@k Conhclinq, ln..
!a :'r1.1 nB $202,744 00 s.L0!,9@_0!
2 O.molr6 ed op.oYmolr lo 5r401:i00 t13737500 t225,0@_A! 3 O6motl'6 ol C rnfor Nuhbs l
s 126 500 m s.]i-!1q-@ Srra 3m a0 !4Sp@-!! l&.a,]I!_a!
D6dod'@ ol c a.6er Numb.r 2
;12 316 00 s232 200 00 lll!-a!g_a!
o.mdto.t -d l6p.&mdr. io slldo. ! 43_@ u-93i.!!_!! :1!:_04!_0! s3@!l@-!! uir.eor€r o's'.r*ton F&lrly l.l!,$l_40 55r19!-!a 54-!@!! oomdt@ ol s.Fac Du6p shrct*.
s.1a -raa ai 5]5-0@_as
rnndrN* ModuL, Bu'ldng
s33 i :0c i0 Slra-!!9-@
x3i!o_ao j t! _r,1ai ll:lt!g_a!
llplLlglq! i]-12.1133.!9 tI:]!190.!9 31 6s6 @0 00 t!p!.!.9!9-9! Reue Envirenmnt l,