Indian Wells City Council
December 7, 2023

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 1 - Significant Accounting Policies (continued)

The City pools cash and investments of all funds, except for amounts held within the Section 115 trust, amounts held by fiscal agents, and amounts held by management companies for the Indian Wells Golf Resort, Indian Wells Villas, and Mountain View Villas. Each fund’s share in this pool is displayed as pooled cash and investments in the accompanying financial statements. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance.

Cash and Cash Equivalents

For the statement of cash flows, cash equivalents are defined as short -term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents have an original maturity date of three months or less from the date of purchase. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City.

Restricted Section 115 Trust Cash and Investments

All assets in the Section 115 Trust are irrevocably dedicated to funding obligations of the City’s pension beneficiaries, other post -employment beneficiaries or costs of administering the Trust. The funds are not considered plan assets of either the pension plan or OPEB plan and are therefore considered restricted assets of the City.

Capital Assets

Capital assets, including property, plant, equipment, infrastructure, and intangible assets, are reported in the government-wide financial statements applicable governmental or business -type activities columns. Capital assets, other than infrastructure assets, are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life of over three years. The City has made one exception to this basic rule. All computer and computer -related equipment purchases wi ll not be capitalized. The government reports infrastructure assets on a network and subsystem basis. Accordingly, the amounts spent for constructing or acquiring infrastructure assets are capitalized and reported in the government-wide financial statements.

As the government constructs or acquires additional capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes routine maintenance and repairs, which are actual amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the original estimate. In the case of donations, the government values these capital assets at the acquisition value of the item at the date of its donation.

43

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 1 - Significant Accounting Policies (continued)

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government -wide financial statements. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The ranges of lives used for depreciation purposes for each capital asset class are as follows:

Intangible assets are amortized over their contractual useful lives using the straight -line method in government- wide financial statements. Amortization is charged as an expense against operations and accumulated amortization is reported on the respective balance sheet.

Deferred Outflows/Inflows of Resources

The City reports deferred outflows and inflows of resources. A deferred outflow of resources is a consumption of net assets the government that is applicable to a future reporting period. A deferred inflow of resources represents an acquisition of net assets by the government that is applicable to a future period.

The City reports deferred outflows and inflows of resources related to pensions and other post -employment benefits on the government -wide statement of net position and the proprietary fund’s statement of the net position under the full accrual basis of accounting. Refer to Notes 9 and 12 for items identified as deferred inflows and outflows related to pension and other post-employment benefits, respectively, as of June 30.

Property Taxes

Property taxes attach as an enforceable lien on the property as of January 1. Taxes are levied on July 1, payable in two equal installments due November 1 and February 1, respectively, and delinquent if not paid by December 10 and April 10, respectively. The County of Riverside bills and collects the property taxes and remits them to the City in installments during the year. All material amounts associated with the reporting period are collected soon enough to be considered "available" to finance the expenditures of the reporting period.

The County of Riverside is permitted by State law (Proposition 13) to levy taxes at one percent of total market value (at time of purchase). It can increase the assessed values by no more than two percent annually. The City receives a share of this basic levy proportionate to what was received from 1976 to 1978.

The City of Indian Wells is one of thirty-nine cities in the State of California categorized as a No/Low property tax city because the City did not have an established property tax rate before Proposition 13. Cities without an established tax rate received the minimum tax rate formula. The rate has increased over time from 1% of the 1% of the assessed valuation to the maximum of 7% of the 1% of the assessed valuation.

Building and Improvements 10-50 years
Equipment 3-15 years
Infrastructure 5-60 years
Intangible Assets Depreciated over contractual life
Right to Use Assets The estimated life of the lease asset or the contract term whichever is shorter
44

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 1 - Significant Accounting Policies (continued)

After applying the formula, the City receives approximately 4.6% (net) of the property tax. This means that for every $100 of property tax collected by the County, the City receives $4.60. Therefore, as a No/Low city, Indian Wells receives only about half the property tax as other cities receive.

Inventory

Inventory in the Golf Resort Operations Enterprise Fund is carried at cost using the consumption method on a first-in, first-out basis.

Prepaid Costs

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The City uses the consumption method to record prepaid costs.

Compensated Absences

Governmental fund types recognize the vested vacation and compensatory time as an expenditure in the current year to the extent it is paid during the year. Accrued vacation and compensatory time relating to governmental funds is included as a liability in the long-term liabilities as those amounts are payable from future resources.

Fund Balances

In the fund financial statements, governmental funds report the following fund balance classifications:

• Nonspendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. • Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) by law through constitutional provisions or enabling legislation.
• Committed include amounts that can only be used for specific purposes according to constraints imposed by formal action of the City’s highest authority, the city council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is by resolution. • Assigned include amounts constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. The City Manager and Finance Director are authorized to assign amounts to a particular purpose, established by the governing body in Resolution No. 2011-30. • Unassigned classification is to be used when negative residual resources are in excess of what can be appropriately classified as nonspendable, restricted, committed, or assigned in funds outside the General Fund. Within the General Fund, the unassigned classification represents the residual amounts that have not been restricted, committed, or assigned to specific purposes.

A guiding principle of the City is to maintain an unassigned fund balance in the general fund at fiscal year -end of not less than 25 percent of the operating budget. In addition, the City Council intends to limit the use of fund balances in the General Fund to address unanticipated one-time needs. 45

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 1 - Significant Accounting Policies (continued)

The City maintains a contingency reserve of $2,250,000 in the unassigned general fund balance. The purpose of this reserve is to meet unexpected circumstances, such as a General Fund revenue shortfall.

Net Position and Fund Balance Flow Assumptions

Sometimes the City will fund outlays for a particular purpose from restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. To calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. The City’s policy considers the restricted – net position to have been depleted before the unrestricted – net position is used.

Sometimes the City will fund outlays for a particular purpose from restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). To calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. The City's policy is to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of the unrestricted fund balance can be used for the same purpose, the committed fund balance is depleted first, followed by the assigned fund balance. The unassigned fund balance is applied last.

Use of Estimates

Preparing 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 and disclosures at the date of the financial s tatements and the reported amounts of revenues and expenditures/expenses during the reporting period. Accordingly, actual results could differ from those estimates.

Leases

At the commencement of the lease, the City initially measures the lease payable at the present value of payments expected to be paid during the lease term. Subsequently, the lease payable is reduced by the principal portion of lease payments made.

Key estimates and judgments include how the district determines the discount rate it uses to discount the expected lease payments to present value.

• The City used the incremental borrowing rate for leases. • The lease term includes the noncancellable period of the lease.

The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease pay certain changes occur that are expected to significantly affect the amount of the lease payable.

46

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 1 - Significant Accounting Policies (continued)

Pension

In government-wide financial statements, the retirement plan (pension) is required to be recognized and disclosed using the accrual basis of accounting, regardless of the amount recognized as pension expenditures on the governmental fund statements, which use the modified accrual basis of accounting.

In general, the City recognizes a net pension liability, which represents the City’s proportionate share of the excess of the total pension liability over the fiduciary net position of the pension reflected in the actuarial report provided by the Californi a Public Employees’ Retirement System (CalPERS). The net pension liability is measured as the City’s prior fiscal year -end. Changes in the net pension liability are recorded in the period incurred as pension expense or as deferred inflows of resources or d eferred outflows of resources, depending on the nature of the change. The changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or experience) are amortized over the weighted average remaining service life of all participants in the respective pension plan. They are recorded as a component of pension expenses beginning with the period in which they are incurred.

For purposes of measuring the net pension liability and deferred outflows/inflows of resources relating to pensions and pension expenses, information about the fiduciary net position of the City's pension plan with CalPERS and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as CalPERS reports them. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the terms of the benef it. Investments are reported at fair value.

Projected earnings on pension investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred. Each subsequent year will incorporate an additional closed basis five-year period of recognition.

47

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 1 - Significant Accounting Policies (continued)

Other Post-Employment Benefits (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis.

For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles require that the reported results pertain to liability and asset information with specific timeframes. Accordingly, for this report, the following timeframes are used:

New Accounting Pronouncements

Effective in Current Year

• GASB Statement 96 - “Subscription-Based Information Technology Arrangements”, effective for reporting periods beginning after June 30, 2023;
• GASB Statement No. 91, Conduit Debt Obligations, effective for fiscal years beginning after December 31, 2022;

Effective in Future Years

The City is evaluating the potential impact of the following issued, but not yet effective, accounting standards.

• GASB Statement 100 - “Accounting Changes and Error Corrections”, effective for reporting periods beginning after June 15, 2023;
• GASB Statement 101 - “Compensated Absences”, effective for reporting periods beginning after December 15, 2023.

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
48

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 2 - Cash and Investments

Cash and investments at June 30, 2023, are classified in the accompanying financial statements as follows:

Cash and investments at June 30, 2023, consisted of the following:

Investments Authorized by the California Government Code and the City's Investment Policy

The table on the next page identifies the investment types authorized for the City by the California Government Code or the City's investment policy. The table also identifies certain provisions of the California Government Code or the City's investment policy that address interest rate risk, credit risk, and concentration of credit risk. This table does not manage investments of debt proceeds held by bond trustee that is governed by the provisions of debt agreements of the City, rather than the general pro visions of the California Government Code or the City's investment policy.

Governmental Business-Type Fiduciary
Activities Activities Activities Total
Cash and investments 66,015,384$ 2,404,795$ 7,385,305$ 75,805,484$ Restricted assets
Restricted cash and
investments 11,820,968 - 2,523 11,823,491 77,836,352$ 2,404,795$ 7,387,828$ 87,628,975$ Petty cash 2,000$
Demand accounts 1,309,922
Investments 86,317,053
Total cash and investments 87,628,975$
49

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 2 - Cash and Investments (continued)

Investments Authorized by Debt Agreements

Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements and the general provisions of the California Government Code, rather than the City’s investment policy. Investments authorized for funds held by fiscal agent include U.S. Treasury Obligations, U.S. Government Sponsored Entities Securities, Certificates of Depo sits, Commercial Paper, Local Agency Bonds, Money Market Mutual Funds, Investment Contracts, and Repurchase Agreements. There are no limitations on the maximum amount that can be invested in one issuer, the maximum percentage allowed or the maximum maturit y of an investment, except for the maturity of Banker's Acceptance which are limited to one year.

Investments Authorized by the City Section 115 Trust

Trust investments are governed by the City of Indian Wells Section 115 Trust Agreement rather than the general provisions of the California Government Code or the City’s investment policy. Investments authorized for funds held in the Section 115 Trust include Equity and Fixed Income Mutual Funds. The strategic range allowed for Equity and Fixed Income Mutual Funds is 50 -70% and 30-50%, respectively. There are no limitations on the maximum amount that can be invested in one issuer or the maximum maturity of an investment.

Maximum Maximum
Maximum Percentage Investment
Investment Types Maturity Allowed in One Issuer
U.S. Treasury Bills, Bonds and Notes 5 Years* 70% N/A
Federal Agency Securities 5 Years* 70% N/A
Local Agency Bonds 5 Years* 30% 5,000,000$
State of California Obligations 5 Years* 30% 5,000,000$ California Local Agency Obligations 5 Years* 30% 5,000,000$ Money Market Funds N/A 30% 10% per
Single Issue
Certificate of Deposit and Negotiable
Certificates of Deposit 5 Years 30% 250,000$
Per Issuer
Repurchase Agreements 30 Days 10% 2,000,000$
Medium-Term Corporate notes 5 Years 30% 3,000,000$
Local Agency Investment Fund (LAIF) N/A 70% 30,000,000$ per Entity
* Per the City's Investment Policy, the portfolio shall equal the amount of two years current General Fund operating reserves maturing at no more than five years from the date of the purchase. Once this requirement is met, a maximum of 30% of the total portfolio may be invested in maturities greater than five years, but not exceeding 10 years consisting of those investments listed in Government Code Section 53601 where there is no limitation specified therein regarding the term or remaining maturity of the instrument. Investments greater than 5 years from the date of purchase shall be brought to the City Council for review and approval prior to purchase.
50

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 2 - Cash and Investments (continued)

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 an investment's maturity, the greater its fair value sensitivity to changes in market interest rates. Accordingly, 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 fiscal agents) to market interest rate fluctuations is provided in the following table that shows the distribution of the City's investments by maturity:

12 Months
Type of Investment or Less 13 - 36 Months 37 - 60 Months Total Federal Agency Securities 2,925,560$ 27,032,401$ 8,305,770$ 38,263,731$ Negotiable Certificates of Deposit 2,459,214 3,243,903 1,588,101 7,291,218 Local Agency Investment Fund 12,596,369 - - 12,596,369 Medium Term Corporate Notes 1,986,800 5,366,000 1,859,080 9,211,880 Local Agency Bonds - 750,439 - 750,439 U.S. Treasury Obligations 5,921,940 - - 5,921,940 Section 115 Trust
PARS Balanced Index Investment Pool 1,099,343 - - 1,099,343 Held by Fiscal Agent
Money Market Mutual Funds 11,182,133 - - 11,182,133 Total 38,171,359$ 36,392,743$ 11,752,951$ 86,317,053$ Remaining Maturity (in Months)
51

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 2 - Cash and Investments (continued)

Fair Value Classifications

Fair value measurements are categorized based on the valuation inputs used to measure fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significan t unobservable inputs. Investments categorized as Level 2 are valued using the market approach using quoted market prices of similar assets.

Investments' fair value measurements are as follows as of June 30, 2023:

Investments in LAIF are uncategorized as deposits , and withdrawals are made on the basis of $1 , and not fair value. Money market mutual funds are valued at a net asset value of $1 dollar per share (amortized cost) and are uncategorized in the fair value hierarchy.

Investment Level 1 Level 2 Level 3 Fair Value
Federal Agency Securities -$ 38,263,731$ -$ 38,263,731$ Medium Term Corporate Notes - 9,211,880 - 9,211,880 Negotiable Certificates of Deposit - 7,291,218 - 7,291,218 U.S. Treasury Obligations - 5,921,940 - 5,921,940 Local Agency Bonds - 750,439 - 750,439 -$ 61,439,208$ -$ 61,439,208 Local Agency Investment Fund 12,596,369
Section 115 Trust
PARS Balanced Index Investment Pool 1,099,343
Held by Fiscal Agent
Money Market Mutual Funds 11,182,133
Total Investment Portfolio 86,317,053$
52

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 2 - Cash and Investments (continued)

Disclosures Relating to Credit Risk

Generally, credit risk is the risk that the issuer of an investment will not fulfill its obligation to the holder of the investment. The assignment of a rating measures this 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 Standards and Poor's credit rating as of year -end for each investment type:

Concentration of Credit Risk

Investments in any one issuer that represent five percent or more of total City's investments are as follows:

Minimum
Legal Total as of
Investment Type Rating June 30, 2023 Not Rated AAA AA+ to AA- A+ to A- Federal Agency Securities N/A 38,263,731$ -$ 38,263,731$ -$ -$ Negotiable Certificates of Deposit N/A 7,291,218 7,291,218 - - - Local Agency Investment Fund N/A 12,596,369 12,596,369 - - - Medium Term Corporate Notes A 9,211,880 2,928,130 - 1,737,060 4,546,690 U.S. Treasury Obligations * N/A 5,921,940 5,921,940 Local Agency Bonds A 750,439 - - - 750,439 Section 115 Trust
PARS Balanced Index Investment Pool N/A 1,099,343 1,099,343 - - - Held by Fiscal Agent
Money Market Mutual Funds A 11,182,133 - - - 11,182,133 Total 86,317,053$ 29,837,000$ 38,263,731$ 1,737,060$ 16,479,262$ N/A - Not applicable
* - U.S. Treasury Obligations are Exempt from rating
Investment Reported Percent of
Issuer Type Amount Portfolio
Federal Home Loan Bank Federal Agency Securities 20,930,911$ 24% Federal Farm Credit Bank Federal Agency Securities 9,881,580 11% 53

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 2 - Cash and Investments (continued)

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 th e 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 sec ure 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 collat eral pool must equal at least 110 percent 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 percent of the secured public deposits.

Investment in State Investment Pool

The City is a voluntary participant in the Local Agency Investment Fund (LAIF), which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based 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 with drawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF is not registered with the Securities and Exchange Commission and is not rated.

54

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 3 - Accounts Receivable

Receivables at June 30, 2023, are composed of the following:

Note 4 - Notes Receivable

The notes issued relating to the Indian Wells Village Utility Undergrounding relate to the costs the City covered for the tenants of the Indian Wells Village to run electricity from the streets up to the individual properties. The tenants are responsible for repaying the City. The notes are due and payable in full on the earlier of (i) the date of any transfer not authorized by the Lender; (ii) the date of any default; or (iii) twenty years from the effective date of the Loan Agreement. The outstanding prin cipal balance bears simple interest at the rate of one percent per annum, and if a default occurs, interest on the principal balance shall accrue at the lesser of ten percent compounded annually or the maximum amount permitted by law from the date of default to the date of repayment in full of the disbursed principal amount of the loan and any interest due thereon. The notes are secured by a Deed of Trust against the Property.

Other Taxes
Receivable Receivable Interest Total
Governmental Activities:

General Fund 222,358$ 1,700,269$ 82,578$ 2,005,205$ Housing Authority Fund - - 57,882 57,882 Emergency Services Upgrade Fund 115,056 18,296 20,804 154,156 Indian Wells Financing Authority - - 1 1 Capital Improvements Fund 66,745 - 21,387 88,132 City Streets Capital Reserve Fund - - 67,425 67,425 Nonmajor Governmental Funds 13,658 178,805 50,820 243,283 Internal Service Funds - - 5,103 5,103 Total Governmental Funds 417,817$ 1,897,370$ 306,000$ 2,621,187$ Business-type Activities
Golf Course Operations 47,259$ -$ 5,802$ 53,061$ Outstanding at
June 30, 2023
Governmental Activities
Indian Wells Village Utility Undergrounding 105,675$
Club Drive Property Sale 1,068,879
1,174,554$
55

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 4 - Notes Receivable (continued)

The note issued relating to the Club Drive Property sale at 45200 Club Drive to Indian Wells Medical Offices, LLC is amortized over 20 years commencing on May 1, 2018. During the fiscal year 2020 -21, the City granted Indian Wells Medical Offices, LLC a thr ee-month payment deferral due to economic hardship during the coronavirus pandemic. The final payment of the note is due and payable on July 1, 2038. Payments are due monthly in the amount of $8,703. Prepayment in full of the principal sum plus a $50,000 premium is allowed within the five years following the date of this note. No penalty or premium is due for prepayment following the initial five years of the note. The note is secured by a deed of Trust against the property.

Note 5 - Due to and Due from Other Funds

Interfund receivables and payable balances at June 30, 2023, are as follows:

The General Fund Receivable from the Park Facilities in Lieu Fund of $835,759 represents monies advanced to the Park Facilities in Lieu Fund for certain construction at the Golf Resort. As Park -in-Lieu fees are collected, the advance will be paid down. The advance is estimated to be paid off in six years based on the development of certain commercial projects along the Highway 111 corridor.

The General Fund Receivable from the Transportation Facilities Fees Fund of $61,670 represents monies advanced to the Transportation Facilities Fees Fund to fund contributions for annual debt obligations. The advance is estimated to be paid as fees are collected, anticipated with the next fiscal year.

The General Fund Receivable from the Recreation Facilities Fees Fund of $257,894 represents monies advanced to the Recreation Facilities Fees Fund to fund contributions for annual debt obligations. The advance is estimated to be paid as fees are collected, anticipated within the next fiscal year.

The General Fund Receivable from the Citywide Public Improvement Fees Fund of $5 7,109 represents monies advanced to the Citywide Public Improvement Fees Fund to fund contributions for annual debt obligations. The advance is estimated to be paid as fees are collected, anticipated with the next fiscal year.

The Capital Improvements Fund Receivable from the Park Facilities in Lieu Fund of $537,887 represents monies advanced to the Park Facilities in Lieu Fund for parkland acquisition. As Park-in-Lieu fees are collected, the advance will be paid down. The advance is estimated to be paid off in six years based on the development of certain commercial projects along the Highway 111 corridor.

The General Fund Receivable from the Golf Resort Operations Fund of $ 4,598,305 represents monies advanced to the Golf Resort Operations Fund for certain construction at the Golf Resort. The advance is estimated to be paid as funds become available, anticipated to be within five years.

Due to Other Funds Due From Other Funds Amount
Park Facilities in Lieu Fund General Fund 835,759$
Transportation Facilities Fees Fund General Fund 61,670 Recreation Facilities Fees Fund General Fund 257,894
Citywide Public Improvement Fee Fund General Fund 57,109 Park Facilities in Lieu Fund Capital Improvements Fund 537,887 Golf Resort Fund General Fund 4,598,305
6,348,624$
56

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 5 - Due to Due from Other Funds (continued)

The amount due to the City reported in the accompanying financial statements consisted of the following:

In a letter dated November 22, 2013, from the California Department of Finance, the loan between the Successor Agency and the City of Indian Wells for $16,400,000 was determined to be for legitimate redevelopment purposes and therefore, approved as an enforceable obligation.

Note 6 - Interfund Transfers

Transfers in and out for the year ended June 30, 2023, are as follows:

The Indian Wells Financing Authority transferred $18,500 to the General Fund for reimbursement of cost of issuance costs paid for the 2022 Lease Revenue Bonds.

The General Fund transferred $4,442,555 to the Housing Authority Fund for the 20% set aside portion of the Redevelopment Property Tax Trust Fund (RPTTF) revenues for the year and to fund Housing capital needs.

The Housing Authority Fund transferred $87,019 to the Indian Wells Financing Authority Debt Service Fund for the annual debt service contribution.

The Transportation Facilities Fund, the Recreation Facilities Fund and the Citywide Public Improvement Fund transferred $734,825 to the Indian Wells Financing Authority Debt Service Fund for the annual debt service contribution.

The Emergency Services Upgrade Fund transferred $145,031 to the Indian Wells Financing Authority Debt Service Fund for the annual debt service contribution.

Due to Due from Amount
General Fund Successor Agency 14,187,226$
Transfer Out of Fund Transfer In to Fund Amount
Indian Wells Financing Authority Fund General Fund 18,500$ General Fund Housing Authority Fund 4,442,555
Housing Authority Indian Wells Financing Authority Fund 87,019 Emergency Services Upgrade Fund Indian Wells Financing Authority Fund 145,031 Transportation Facilities Fund Indian Wells Financing Authority Fund 150,000 Recreation Facilities Fund Indian Wells Financing Authority Fund 434,825 Citywide Public Improvement Fund Indian Wells Financing Authority Fund 150,000 General Fund Capital Improvements Fund 2,038,230
Indian Wells Financing Authority Fund Capital Improvements Fund 1,733,899 General Fund City Streets Capital Reserve Fund 814,000
General Fund Non-major Governmental Funds 788,398
General Fund Compensated Absences Reserve Fund 44,606
10,847,063$
57

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 6 - Interfund Transfers (continued)

The General Fund transferred $2,038,230 to the Capital Improvements Fund for the annual contribution for future city streets projects.

The Indian Wells Financing Authority Debt Service Fund transferred $1,733,899 to the Capital Improvements Fund to reimburse the Capital Improvements Fund for the Energy Efficiency and various capital projects.

The General Fund transferred $814,000 to the City Streets Capital Reserve Fund for the annual contribution for future city streets projects.

The General Fund transferred $788,398 to various Non -major Governmental Funds (capital project funds) for future capital outlay needs.

The General Fund transferred $44,606 to the Compensated Absences Fund to fully fund the fiscal year 2022 -23 liability.

58

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 7 - Capital Assets

Capital asset activity for the year ended June 30, 2023, was as follows:

Balance at
July 1, 2022 Additions Deletions
Balance at
June 30, 2023
Governmental Activities
Capital assets, not being depreciated
Land 33,289,388$ -$ -$ 33,289,388$ Construction in progress 3,268,022 3,442,166 (97,876) 6,612,312 Total capital assets, not
being depreciated 36,557,410 3,442,166 (97,876) 39,901,700 Capital assets, being depreciated
Intangible 2,500,000 2,500,000 (2,500,000) 2,500,000 Buildings and improvements 67,605,378 265,455 (584,762) 67,286,071 Equipment 2,184,084 80,544 (230,825) 2,033,803 Infrastructure 114,705,473 1,292,589 (6,280) 115,991,782 Total capital assets, not
being depreciated 186,994,935 4,138,588 (3,321,867) 187,811,656 Less accumulated depreciation
Intangible (2,375,000) (250,000) 2,375,000 (250,000) Buildings and improvements (31,216,725) (1,577,629) 88,429 (32,705,925) Equipment (1,733,905) (144,057) 230,825 (1,647,137) Infrastructure (39,105,611) (2,008,832) 6,280 (41,108,163) Total accumulated depreciation (74,431,241) (3,980,518) 2,700,534 (75,711,225) Total capital assets being
depreciated, net 112,563,694 158,070 (621,333) 112,100,431 Governmental activities
capital assets, net 149,121,104$ 3,600,236$ (719,209)$ 152,002,131$ 59

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 7 - Capital Assets (continued)

Balance at
July 1, 2022 Additions Deletions
Balance at
June 30, 2023
Business-type Activities
Capital assets, not being depreciated
Land 13,910,956$ -$ -$ 13,910,956$ Construction in progress 121,421 - (121,421) - Total capital assets, not
being depreciated 14,032,377 - (121,421) 13,910,956 Capital assets, being depreciated
Buildings and improvements 85,279,178 480,372 (45,778) 85,713,772 Equipment 7,531,178 406,182 (3,441,138) 4,496,222 Infrastructure 433,390 - - 433,390 Right to use asset 545,025 13,263 (3,179) 555,109 Total capital assets, not
being depreciated 93,788,771 899,817 (3,490,095) 91,198,493 Less accumulated depreciation
Buildings and improvements (54,681,867) (1,895,232) 20,255 (56,556,844) Equipment (5,716,121) (592,206) 3,046,686 (3,261,641) Infrastructure (115,569) (7,224) - (122,793) Right to use asset (108,349) (134,951) 3,179 (240,121) Total accumulated depreciation (60,621,906) (2,629,613) 3,070,120 (60,181,399) Total capital assets being
depreciated, net 33,166,865 (1,729,796) (419,975) 31,017,094 Business-type activities
capital assets, net 47,199,242$ (1,729,796)$ (541,396)$ 44,928,050$ 60

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 7 - Capital Assets (continued)

Depreciation Expense

Depreciation expense was charged to the following functions in the statement of activities:

Note 8 - Long-Term Liabilities

The changes in long-term liabilities for the year ended June 30, 2023, were as follows:

Governmental Activities
General government 322,366$
Community development 1,391,681
Public safety 151,297
Public works 2,115,174
Total governmental activities 3,980,518$
Business-type Activities
Golf resort operations 2,629,613$
Balance at Balance at Due Within
July 1, 2022 Additions Reductions June 30, 2023 One Year Governmental activities:

Compensated absences 695,547$ 504,718$ (565,958)$ 634,307$ 119,164$ 2022 Lease revenue bonds 13,930,000 - (380,000) 13,550,000 470,000 Premium 1,316,052 - (66,356) 1,249,696 66,356 15,941,599$ 504,718$ (1,012,314)$ 15,434,003$ 655,520$ Balance at Balance at Due Within
July 1, 2022 Additions Reductions June 30, 2023 One Year Business-type activities:

Lease payable 447,855$ 13,263$ (130,657)$ 330,461$ 139,597$ 447,855$ 13,263$ (130,657)$ 330,461$ 139,597$ 61

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 8 - Long-Term Liabilities (continued)

Compensated Absences

The City's policies relating to compensated absences are described in Note 1. The City reserves the outstanding compensated absences liability in the Compensated Absences Fund. The long-term strategy of the Compensated Absences Reserve Fund is to set aside cash reserves in case of changes in staff. On June 30, 2023, the net position of the Compensated Absences Reserve Fund was $627,068.

Several distinct types of paid leave accrue to full-time employees. These include vacation, holiday, administrative leave, sick leave, and compensatory time accruals. Employee leave accruals are governed by the Memorandum of Understandings (MOUs), personnel contracts, and the Personnel Rules and Regulations.

City Issued Debt

2022 Lease Revenue Refunding Bonds

In February 2022, the Indian Wells Financing Authority issued lease revenue bonds in the amount of $13,930,000 to provide funds to finance public improvements and energy efficiency improvements in the City. The bonds dated February 10, 2022, were issued at a premium of $1,338,171 are payable semiannually on April 1 and October 1 of each year, commencing October 1, 2022, and mature in 2042. The bonds are payable from base rental payments to be made by the City for the right to the use of certain real property and improvements of the City pursuant to a Lease Agreement dated February 1, 2022. The balance at June 30, 202 3, including the unamortized bond premium of $1,249,696 amounted to $14,799,696. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2023, including interest, are as follows:

The outstanding bonds contain a provision that if any event of default should occur, the Trustee, as assignee of the Authority under the Lease Agreement, may terminate the Lease Agreement and recover certain damages from the City or may retain the Lease Agreement and hold the City liable for all base rental payments thereunder on an annual basis.

Year Ending June 30, Principal Interest Total
2024 470,000$ 495,050$ 965,050$ 2025 495,000 471,550 966,550 2026 515,000 446,800 961,800 2027 545,000 421,050 966,050 2028 570,000 393,800 963,800 2029-2033 3,305,000 1,518,200 4,823,200 2034-2038 4,020,000 796,150 4,816,150 2039-2043 3,630,000 229,625 3,859,625 13,550,000 4,772,225 18,322,225 Bond Premium 1,249,696 - 1,249,696 14,799,696$ 4,772,225$ 19,571,921$
62

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 8 - Long-Term Liabilities (continued)

Lease Payable

The Golf Fund has maintenance equipment, office equipment, and GPS Units as a lease payable with lease terms ranging from 36 months to 60 months . The City is required to make monthly payments ranging from $5,124 to $6,160 with a discount rates ranging from 5.49% to 7.00%. As of June 30, 2023, the value of the lease payable is $330,461. Future lease payable requirements are as follows:

Note 9 - Defined Benefit Pension Plan

Miscellaneous Plan

Description of Plan

All qualified permanent and probationary employees are eligible to participate in the City of Indian Well’s Employee Pension Plan, a cost -sharing multiple -employer defined benefit pension plan administered by the California Public Employees Retirement Syst em (CalPERS). Employees hired before January 1, 2013, and those who have CalPERS credited service prior to that date who are hired by the City less than six months after separation from that CalPERS contracting employer are “Classic” members with a classic formula benefit.

Employees hired on or after January 1, 2013, or who separated from a CalPERS contracting employer more than six months prior to their date of hire with the City are “New” or “PEPRA” members with a PEPRA formula benefit.

The CalPERS Plan consists of separate miscellaneous pools for Classic and PEPRA members, and separate safety pools for both Classic and PEPRA members (referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectivel y. The City does not participate in the CalPERS safety plans. The risk pools are included within the Public Employees’ Retirement Fund C (PERF C). Benefit provisions under the Plan are established by State statute under the Public Employees’ Retirement La w (PERL), where optional provisions may be adopted by amendment of the City’s CalPERS contract if not added at contract inception. CalPERS issues publicly available reports that include a complete description of the pension plans regarding benefit provision, assumption, and membership information. Copies of the reports can be found on the CalPERS website.

Year Ending June 30, Principal Interest Total
2024 139,597$ 17,017$ 156,614$ 2025 81,732 9,417 91,149 2026 65,757 4,633 70,390 2027 43,024 957 43,981 2028 351 6 357 330,461$ 32,030$ 362,491$ 63

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 9 - Defined Benefit Pension Plan (continued)

Benefits Provided

CalPERS provides service retirement, disability, and pre -retirement death benefits, credited service for unused sick leave, and the annual cost of living adjustments for plan members, who must be public employees or beneficiaries. Benefits are based on years of credited service, where 1,720 compensated hours in a fiscal year equates to one year of credited service. After achieving five years of total credited service, classic members are eligible to retire at age 50, and PEPRA members are eligible to retire at age 52, both with statutorily reduced benefits. All members are eligib le for non-duty disability benefits after ten years of service. The pre -retirement 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.

The Plans’ provisions and benefits in effect at June 30, 2023 are summarized below:

*The percentage reflects the normal cost rate only. The portion of the required employer contribution that is attributed to amortization of the unfunded actuarial liability (UAL) for the miscellaneous plans is reflected as a fixed dollar value.

For the classic plan, the annual UAL prepayment option was $1,569. For illustrative purposes only, the combined normal cost rate and the UAL payment reflected as a percentage of payroll equals as total of 14.90%.

For the PEPRA plan, the annual UAL prepayment option was $ 322. For illustrative purposes only, the combined normal cost rate and the UAL payment reflected as a percentage of payroll equals as total of 7.76%.

Classic Members PEPRA Members
Benefit formula 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years of credited service 5 years of credited service Benefit payments monthly for life monthly for life
Retirement age 50 and up 52 and up
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1% to 2.5% Required employee contribution rates 8.00% 7.25%
Required employer contribution rates* 14.90% 7.76%
Miscellaneous Plan
64

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 9 - Defined Benefit Pension Plan (continued)

Contribution Description

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contributes rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarial determination rate is the estimated amount necessary to finance costs of benefits earned by employees during the year, with an a dditional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.

Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

Pension Liabilities (Assets), Pension Expenses and Deferred Outflows/Inflows of Resources

The City reported a net pension liability (asset) for its proportionate share of the net pension liability of the Miscellaneous Plan as of June 30, 2023, in the amount of $(700,736).

The City’s net pension liability (asset) for the Miscellaneous Plan is measured as the proportionate share of the net pension liability of the collective cost -sharing plan. The City’s net pension liability (asset) of the Plan is measured as of June 30, 2022, and the total pension liability for the Miscellaneous Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022 using standard updated 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 in those plans, actuarially determined. The City’s proportionate share of the net pension liability (asset) for the Miscellaneous Plans as of the June 30, 2022 and 2023 measurement dates was as follows:

Proportion - June 30, 2022 (0.33964%)
Proportion - June 30, 2023 (0.01498%)
Change - Increase/(Decrease) 0.32466%
65

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 9 - Defined Benefit Pension Plan (continued)

For the year ended June 30, 2023, the City recognized pension expense of $8,275,889 for the Miscellaneous Plan.

At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

The amount of $ 1,390,856 reported as deferred outflows of resources related to contributions after the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2024. In addition, other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Assumptions

The total pension liabilities in the June 30, 2021, actuarial valuation was determined using the following actuarial assumptions.

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 1,390,856$ -$ Changes of Assumptions - 71,805 Changes in proportion and difference between City's
contributions and proportionate share of contributions 4,250,790 - Net difference between projected and actual earnings
on pension plan investments - 128,356 Difference between expected and actual experience 9,425 14,072 Difference between employer's contributions and
proportionate share of contributions - 1,315,036 5,651,071$ 1,529,269$
Deferred
Fiscal Year Outflows/(Inflows)
Ended June 30, of Resources
2024 936,179$
2025 1,090,048
2026 783,226
2027 (78,507)
2,730,946$
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table 1 Derived using CalPERS Membership Data for All Funds Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter 66

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 9 - Defined Benefit Pension Plan (continued)

1- The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 Experience Study Report that can be found on the CalPERS website.

All other actuarial assumptions used in the June 30, 2021 valuation were based on the results of the 2021 CalPERS Experience Study and Review of Actuarial Assumptions , including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website.

Discount Rate

The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributi ons from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long -term expected rate of return on pension plan investments was determined using a building -block method in which 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. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are summarized in the table on the following page:

67

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 9 - Defined Benefit Pension Plan (continued)

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the City’s proportionate share of the net pension liability (asset), calculated using the discount rate of 6.90 percent, as well as what the City’s proportionate share of net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage point lower (5.90 percent), or 1-percentage point higher (7.90 percent), than the current rate:

Pension Plan Fiduciary Net Position

Detailed information about the Plan’s fiduciary net position is available i n a separately issued CalPERS financial report.

Assumed Asset Real
Asset Class (1) Allocation Return (1,2)
Global Equity - Cap weighted 30% 4.54%
Global Equity - Non-Cap weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
1 An expected inflation of 2.30% used for this period
2 Figures are based on the 2021 Asset Liability Management study. 1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(5.90%) (6.90%) (7.90%)
City's Proportionate Share of the
Plan's Net Pension Liability/(Asset) 4,272,124$ (700,736)$ (4,792,166)$ 68

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 9 - Defined Benefit Pension Plan (continued)

Subsequent Events

On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2021-22. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

Note 10 - Defined Contribution Plan

The City contributes to the ICMA Retirement Corporation Prototype Money Purchase Plan and Trust, a defined contribution plan 401(a). The reportable payroll for the employees covered by the plan is $ 3,852,881 compared with a total payroll of $4,176,150 for the fiscal year ended June 30, 2023. The plan provisions are established and may be amended by the City Council.

All full-time employees are eligible to participate in the plan and benefits vest immediately. The required period of service is six months. Eligible employees at age 50 or more may begin to collect defined contribution benefits immediately upon retirement. The employer contribution is 2.5 percent of compensation, as that term is defined under the plan. No employee contributions are permitted. The total contribution made by the City was $115,822.

Contributions are established and amended by State Law and City Resolution.

Note 11 - Defined Compensation Payable

The City has adopted a deferred compensation plan in accordance with Internal Revenue Code Section 457(b) for its eligible employees wherein they may execute an individual agreement with the City for amounts earned by them to be paid at a future date when certain circumstances are met. These circumstances include death, disability, retirement, or an unforeseeable emergency. Employees may contribute to the deferred compensation plan up to $22,500 in 2023. Employees aged fifty or older may contribute up to an additional $7,500 in 2022 for a total of $ 30,000. These amounts are adjusted annually by the Internal Revenue Service (IRS) for cost -of-living increases. The City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor.

69

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 11 - Deferred Compensation Payable (continued)

On January 1, 1997, the City formally established a trust in accordance with IRC 457(g) for its deferred compensation plan for the exclusive benefit of plan participants and their beneficiaries. Accordingly, the deferred compensation assets placed in the Trust were not reported in the financial statements.

Note 12 - Other Post Employment Benefit Plan (OPEB)

The City participates in the Public Employees’ Medical and Hospital Care Act (“PEMHCA”) which is administered by CalPERS in order to make health insurance coverage available to its employees. Pursuant to its contract with CalPERS for participation in PEMHCA, the City is obligated to provide retiree health coverage to eligible retirees.

The City’s retiree health liability is pre -funded through another post-employment benefit account (“OPEB Account”) with the California Employers’ Retiree Benefit Fund (CERBT ) trust, which is also administered by CalPERS. The CERBT trust is a multiple employer Section 115 governmental trust.

A summary of the OPEB amounts for the City’s plan is shown below:

Plan Description

The City provides retiree health benefits to all employees of the City that have retired, or will retire, from service with the City and meet the eligibility requirements set forth in Government Code Section 22760(c) to be considered an annuitant (“Annuita nt”). The amount of the retiree health benefit allowance (“Allowance”) available to an Annuitant is based on the date of hire as summarized below.

The Allowance is provided in two forms. The first is a direct payment to CalPERS equal to the minimum employer contribution required pursuant to Government Code Section 22893(b) (“PEMHCA Minimum”). The PEMHCA Minimum for 2023 is $151 per month. If an Annuitant is eligible for a more significant retiree health benefit, the Annuitant will receive a reimbursement from a health reimbursement arrangement sponsored by the City for the health insurance premiums actually paid by the Annuitant in an amount not to exceed the difference between the applicable Allowance and the PEMHCA Minimum.

The amount of the Allowance depends on the tier for which the Annuitant is eligible as described below:

• Tier A Allowance:
 The allowance for Annuitants hired before February 1, 2009 (“Tier A”) is equal to up to 100% of the premium of any CalPERS health insurance plan in which the Tier A Annuitant, and eligible family members, enroll.

Net OPEB Liability (Asset) (745,061)$
Deferred Outflows Related to OPEB 1,806,981
Deferred Inflows Related to OPEB (968,612)
OPEB Expense (Income) 234,633
70

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 12 - Other Post Employment Benefit Plan (OPEB) (continued)

• Tier B Allowance:
 The allowance for Annuitants hired on or after February 1, 2009 but before July 1, 2020 who retire from the City with at least 10 years of CalPERS service credit, including five years of service credit with the City (“Tier B”) is equal to a percentage of the Government Code Section 22893 premium for the applicable coverage level based on years of CalPERS service credit. The percentage is equal to 50% for the first 10 years of Cal PERS service credit, including five years of service credit with the City, plus an additional 5% for each additional year of service with any CalPERS employer after satisfying the 10 year minimum.
• Tier C Allowance:
 The allowance for Annuitants hired on or after July 1, 2020, and employees hired by the City on or after February 1, 2009 but before July 1, 2020 that do not qualify for Tier B, is equal to the PEMHCA Minimum.

The amount of the Allowance is established through contracts between the City and the employee associations and may be amended by agreements between the City and the employee association.

Employees Covered by Benefit Terms

At June 30, 2023, the most recent measurement date, the following current and former employees were covered by the benefit terms of the plan:

Contributions

The annual contribution to the City’s OPEB Account is based on the actuarially determined contribution.

Employees do not make contributions to the OPEB Account but are responsible for the share of retiree health coverage that exceeds the value of the allow ance. Contributions to the OPEB Account by the City for the year ended June 30, 2023 were $459,025. Contributions are typically paid by the Employee Benefits fund.

The municipal administration employs a prioritized funding mechanism to finance the Employee Benefits Fund.

The foremost priority pertains to the accrued interest income within the fund, with the secondary priority being contingent on the allocation of payroll resources. The allocated payroll encompasses contributions from the Solid Waste Fund, the Emergency Services Fund, the Housing Authority, the Golf Resort, Recycling, and the General Fund. It is noteworthy that the General Fund assumes a prominent role as the primary source of funding for the Employee Benefits Fund due to its utilization of administrative services.

Net OPEB Liability

The City’s net OPEB liability for the retiree health benefits was measured as the total OPEB liability, less the OPEB plan’s fiduciary net position. The net OPEB liability was calculated as of June 30, 2023, using an annual actuarial valuation as of June 30, 2021. A summary of principal assumptions and methods used to determine the net OPEB liability is shown below.

Active employees 33
Inactive employees or beneficiaries currently receiving benefits 37 70 71

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 12 - Other Post Employment Benefit Plan (OPEB) (continued)

Actuarial Assumptions

The total OPEB liability in the June 30, 2021, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Mortality rates were based on the CalPERS 2000-2019 Experience Study, which assumed future mortality improvements using Society of Actuaries (SOA) Scale MP-2021. The Experience Study report can be obtained on the CalPERS website under Forms and Publications.

The actuarial assumptions used in the June 30, 2021, valuation was based on the results of an actuarial experience study for the period.

Changes in Actuarial Assumptions

Certain key assumptions were changed as part of the actuary’s updated study. Those changes are summarized below.

• Discount rate was updated based on an updated CERBT asset allocation and resulting an updated discount rate to 5.75% from 5.50%
• Decreased medical trend rate for Kaiser Senior Advantage • Inflation was decreased from 2.75% to 2.50%, which decreased the discount rate, medical trend and aggregate salary increases by 0.25%
• Family coverage at retirement updated to 40% for future retirees until age 65 • Demographic assumptions updated to the 2000-2019 CalPERS Experience Study • Updated assumption for Medicare eligible implied subsidy • Mortality improvement scale was updated to Scale MP-2021

Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 5.75%
Inflation 2.50%
Investment Rate of Return 5.75%
Mortality CalPERS 2000-2019 experience study
Healthcare Trend Rate Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076 and later years
Medicare - 5.65% for 2023, decreasing to an ultimate 3.75% in 2076 and later years
72

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 12 - Other Post Employment Benefit Plan (OPEB) (continued)

Discount Rate

The discount rate used to measure the total OPEB liability was 5.75 percent. The projection of cash flows used to determine the discount rate assumed that the City’s contributions will be made at rates equal to the difference between actuarially determined contributions rates and the employee rate. Based on those assumptions, the fiduciary net position for the City’s retiree health benefits was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long -term expected rate of return on OPEB Account investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

The long-term expected rate of return on the OPEB investments was determined using a building -block method in which best -estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are devel oped for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset al location and most recent best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Long-term Expected
Target Real Rate
Asset Class Allocation of Return
Global Equity 34.00% 4.56%
Fixed Income 41.00% 1.56%
TIPS 5.00% (0.08%)
Commodities 3.00% 1.22%
REITs 17.00% 4.06%
100.00%
73

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 12 - Other Post Employment Benefit Plan (OPEB) (continued)

Changes in Net OPEB Liability (Asset)

Sensitivity of the Net OPEB Liability (Asset) to Changes in the Discount Rate

The following presents the net OPEB asset of the City, as well as what the City’s net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (4.75 percent) or 1-percentage-point higher (6.75 percent) than the current discount rate:

Sensitivity of the Net OPEB Liability (Asset) to Changes in the Healthcare Cost Trend Rates

The following presents the net OPEB liability (asset) of the City, as well as what the City's net OPEB liability (asset) would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage- point higher than the current healthcare cost trend rates:

OPEB Plan Fiduciary Net Position

Detailed information about the OPEB plan's fiduciary net position is available in the separately issued CalPERS financial reports.

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability (Asset)
Balance at June 30, 2022 9,011,840$ 11,208,427$ (2,196,587)$ Changes in the year:

Service cost 282,966 - 282,966 Interest on the total OPEB liability 498,483 - 498,483 Assumption changes (279,230) - (279,230) Contributions - employer - 466,353 (466,353) Net investment income - (1,409,406) 1,409,406 Benefit payments (462,932) (462,932) - Administrative expenses - (6,254) 6,254 Net changes 39,287 (1,412,239) 1,451,526 Balance at June 30, 2023 9,051,127$ 9,796,188$ (745,061)$ 1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(4.75%) (5.75%) (6.75%)
Net OPEB Liability/(Asset) 259,706$ (945,061)$ (1,937,664)$ 1% Decrease Trend Rate 1% Increase
Net OPEB Liability/(Asset) (2,120,598)$ (945,061)$ 513,891$ 74

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 12 - Other Post Employment Benefit Plan (OPEB) (continued)

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

For the year ended June 30, 2023 , the City recognized OPEB expense of $234,633. At June 30, 2023 , the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

The $ 459,025 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the fiscal year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Note 13 - PARS Section 115 Trust

In June 2018, the City Council approved the creation of a Section 115 Trust Agreement with U.S. Bank National Association and Public Agency Retirement Services (PARS), Trust Administrator. The Section 115 Trust was established as a means to set aside monies to fund the City's pension and OPEB obligations. Contributions to the Section 115 Trust are irrevocable, the assets provide benefits to plan members, and the assets are protected from creditors of the City.

Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions made subsequent to measurement date 459,025$ -$ Changes in assumptions 418,081 227,521 Net difference between projected and actual earnings
on plan investments 885,901 - Difference between expected and actual experience 43,974 741,091 1,806,981$ 968,612$
Deferred
Fiscal Year Outflows/(Inflows)
Ended June 30, of Resources
2024 56,902$
2025 11,388
2026 (879)
2027 332,618
2028 (20,685)
379,344$
75

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 13 - PARS Section 115 Trust (continued)

The Section 115 Trust was created to address the City's pension obligations by accumulating assets to reduce the net pension liability. However, in accordance with generally accepted accounting principles, the assets in the Section 115 Trust are not considered to have present service capacity as plan assets and are therefore regarded as restricted assets of the City rather than pension plan assets. Accordingly, the Section 115 Trust's assets are recorded as restricted for pension benefits in the City's Employee Benefits Internal Service Fund rather than assets of the pension plan during the measurement of the net pension liability. The assets held in Trust will be considered pension plan assets at the time they are transferred out of the Trust into the pension plan.

The balance in the Trust’s pension assets for the fiscal year ended June 30, 2023, was $884,632. During the fiscal year, the Trust earned $66,562 in interest income, and plan costs totaled $4,849.

The balance in the Trust’s OPEB assets for the fiscal year ended June 30, 2023, was $ 214,711. During the fiscal year, the Trust earned $16,153 in interest income, and plan costs totaled $1,120.

Note 14 - Risk Management

Description of Self-Insurance Pool Pursuant to Joint Powers Agreement

The City of Indian Wells is a California Joint Powers Insurance Authority (Authority) member. The Authority comprises 124 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, purchase excess insurance or r einsurance, and arrange for group purchased insurance for property and other lines of coverage. The California JPIA began co vering 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.

Primary Self-Insurance Programs of the Authority

Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual re trospective adjustment. The total funding requirement for primary self - insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. 76

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 14 - Risk Management (continued)

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.

Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority's website: https://cjpia.org/coverage/risk-sharing-pools/.

Primary Workers’ Compensation Program

Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes costs incurred up to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs with in the first layer. (3) The second layer of losses includes costs incurred from $ 100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2022-23, the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

Purchased Insurance

Property Insurance

The City participates in the all -risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City property is currently insured according to a schedule of covered property submitted by the City to the Authority. The City property currently has all-risk property insurance protection in the amount of $ 113,710,167. There is a $10,000 deductible per occurrence except for non - emergency vehicle insurance which has a $2,500 deductible.

Earthquake and Flood Insurance

The City of Indian Wells purchases earthquake and flood insurance on a portion of its property. Earthquake insurance is part of the property protection insurance program of the Authority. City of Indian Wells property currently has earthquake protection in the amount of $109,209,988. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

Crime Insurance

The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.
77

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 14 - Risk Management (continued)

Adequacy of Protection

During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2022-23.

Note 15 - Other Required Disclosures

Deficit Fund Balance and Net Position

The following funds reported a deficit fund balance at June 30, 2023:

The deficit in the Park Facilities in Lieu Capital Projects Fund will be eliminated through Quimby Act Park fees to be collected from developers. This deficit balance is temporary although it will take several years to expunge.

The deficit in the Transportation Facilities Fee Fund will be eliminated through the collection of fees from developers. This deficit balance is temporary and is anticipated to be dissolved within the next fiscal year.

The deficit in the Recreation Facilities Fees Fund will be eliminated through the collection of fees from developers.

This deficit balance is temporary and is anticipated to be dissolved within the next fiscal year.

The deficit in the Citywide Public Improvement Fund will be eliminated through the collection of fees from developers. This deficit balance is temporary and is anticipated to be dissolved within the next fiscal year.

The deficit in the Successor Agency of the former RDA Private-Purpose Trust Fund was caused by the dissolution of the Redevelopment Agency. See Note 17 and 18 for additional information.

Note 16 - Contingencies

Various claims and suits have been filed against the City in the normal course of business. Although the outcome of these matters is not presently determinable in the opinion of legal counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the City.

Park Facilities in Lieu Capital Projects Fund 1,375,313$ Transportation Facilities Fee Fund 63,628
Recreation Facilities Fees Fund 261,816
Citywide Public Improvement Fund 57,765
Successor Agency of the Former Redevelopment Agency Private Purpose Trust Fund 66,802,529 78

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 17 - California Redevelopment Agency Dissolution

On July 18, 2011, the California Redevelopment Association (“CRA”) and the League of California Cities (“League”) filed a petition for writ of mandate with the California Supreme Court, requesting the Court to declare unconstitutional two bills that were p assed as part of the 2011 -12 State Budget, AB X1 26 and 27 (California Redevelopment Association v. Matosantos). AB X1 26 dissolves redevelopment agencies effective October 1, 2011. AB X1 27 gave redevelopment agencies an option to avoid dissolution if it commits to making defined payments for the benefit of the State, school districts and certain special districts.

On August 17, 2011, the Supreme Court issued a stay of the implementation of AB X1 26 and 27 which allowed a redevelopment agency to continue if it adopted an AB X1 27 ordinance. However, because of the effect of the stay order, the authority for the Redevelopment Agency to engage in most activities was suspended.

The Supreme Court heard oral arguments on November 10, 2011, and on December 29, 2011, announced its decision in California Redevelopment Association v. Matosantos. The court upheld AB X1 26 which dissolves redevelopment agencies but invalidated in its ent irety AB X1 27 which allowed redevelopment agencies to continue as long as they made the required payments. AB X1 26 established deadlines for the process of Redevelopment Agency dissolution and the handling of existing obligations. The full text of AB X1 26 may be obtained from the California legislative information website maintained by the Legislative Counsel of the State of California at: http://www.leginfo.ca.gov/bilinfo.html.

On February 1, 2012, the Redevelopment Agency was dissolved, and the City of Indian Wells elected to become the Successor Agency. AB X1 26 provides that a successor agency is to be designated as the successor entity to the former Redevelopment Agency, vested with all authority, ri ghts, powers, duties, and obligations previously vested with the former Agency under the Community Redevelopment Law (Health & Safety Code, § 33000 et seq.), with certain exceptions. The Successor Agency is responsible for winding down the remaining activi ties of the dissolved Redevelopment Agency.

Note 18 - Successor Agency Trust for Assets of the Former Redevelopment Agency

The California Supreme Court decision impacted the reporting entity of the City that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provided that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 12, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-03.

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 at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforc eable contractual commitments).

79

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 18 - Successor Agency Trust for Assets of the Former Redevelopment Agency (continued)

Successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. Payments for these enforceable obligations are secured from incremental tax revenues generated within the redevelopment project areas. It is essential to differentiate the Successor Agency fr om the City of Indian Wells, in that, the City itself has no outstanding debt or any obligation to fund Successor Agency debt.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. Af ter the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

Cash and Investments

Cash and investments reported in the accompanying financial statements consisted of the following:

Due to City

The amount due to the City reported in the accompanying financial statements consisted of the following:

Cash and investments pooled with the City 7,385,305$
Cash and investments with fiscal agent 2,523
7,387,828$
In a letter dated November 22, 2013, from the California Department of Finance, the loan between the Successor Agency and the City of Indian Wells for $16,400,000 was determined to be for legitimate redevelopment purposes and therefore, approved as an enforceable obligation. 14,187,226$ 80

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 18 - Successor Agency Trust for Assets of the Former Redevelopment Agency (continued)

Long-Term Debt

The following debt is recorded in the Successor Agency:

A description of long-term debt outstanding of the Successor Agency as of June 30, 2023, follows:

2015 A Tax Allocation Refunding Bonds

On September 1, 2015 , the Successor Agency issued $20,575,000 of Refunding Tax Allocation Bonds to provide funds to refund the 2005 Refunding Tax Allocation Bonds and a portion of the 2006 A Tax Allocation Bonds.

The Series 2015A Bonds are special obligations payable solely from certain payments from the Successor Agency and certain other funds.

The bonds are payable in annual installments ranging from $865,000 to $2,435,000 until maturity on September 1, 2027. Interest is payable semiannually on March 1 and September 1 of year, with rates ranging from 2.00 to

5.00 percent per annum. Bonds outstanding at June 30, 2023 were $11,065,000.

Future debt service requirements on these bonds are as follows:

Balance at Balance at Due Within
Project Area 1 July 1, 2022 Additions Repayments June 30, 2023 One Year 2014A-T Tax Allocation Bonds 4,275,000$ -$ 4,275,000$ -$ -$ 2015 Refunding Tax Allocation Bonds 12,760,000 - 1,695,000 11,065,000 2,000,000 2016 A Tax Allocation Bonds 36,550,000 - 115,000 36,435,000 960,000 2020 A Tax Allocation Bonds 6,770,000 - 455,000 6,315,000 465,000 60,355,000$ -$ 6,540,000$ 53,815,000$ 3,425,000$ Adjustments:

Unamortized net original issue (discount) or Premium 5,728,061 Net Long-term Debt 59,543,061$
Year Ending June 30, Principal Interest Total
2024 2,000,000$ 503,250$ 2,503,250$ 2025 2,105,000 400,625 2,505,625 2026 2,205,000 292,875 2,497,875 2027 2,320,000 179,750 2,499,750 2028 2,435,000 60,875 2,495,875 11,065,000 1,437,375 12,502,375
Bond Premium 1,021,987 - 1,021,987 12,086,987$ 1,437,375$ 13,524,362$
81

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 18 - Successor Agency Trust for Assets of the Former Redevelopment Agency (continued)

2016 A Tax Allocation Refunding Bonds

On September 1, 2016, the Successor Agency issued $37,470,000 in Series 2016A Tax Allocation Refunding Bonds to provide funds to refund the 2006 A Tax Allocation Bonds.

The Series 2016A Bonds are special obligations payable solely from certain payments from the Successor Agency and certain other funds.

The bonds are payable in annual installments ranging from $515,000 to $5,050,000 until maturity on September 1, 2034. Interest is payable semiannually on March 1 and September 1 of year, with rates ranging from 4.00 to

5.00 percent per annum. Bonds outstanding at June 30, 2023 were $36,435,000.

Future debt service requirements on these bonds are as follows:

2020 A Tax Allocation Refunding Bonds

On June 12, 2020, the Successor Agency issued $7,220,000 in Series 2020A Tax Allocation Refunding Bonds to refund the 2010 A Tax Allocation Bonds.

The Series 2020A Bonds are special obligations payable solely from certain payments from the Successor Agency and certain other funds.

The bonds are payable in annual installments ranging from $450,000 to 590,000 until maturity on September 1, 2034. Interest is payable semiannually on March 1 and September 1 of year, with rates ranging from 4.00 to 5.00 percent per annum. Bonds outstanding at June 30, 2023 were $6,315,000.

Year Ending June 30, Principal Interest Total
2024 960,000$ 1,664,350$ 2,624,350$ 2025 1,010,000 1,615,100 2,625,100 2026 1,055,000 1,563,475 2,618,475 2027 1,110,000 1,509,350 2,619,350 2028 1,165,000 1,452,475 2,617,475 2029-2033 21,285,000 4,745,975 26,030,975 2034-2035 9,850,000 498,750 10,348,750 36,435,000 13,049,475 49,484,475
Bond Premium 4,706,074 - 4,706,074 41,141,074$ 13,049,475$ 54,190,549$
82

City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 18 - Successor Agency Trust for Assets of the Former Redevelopment Agency (continued)

These bonds resulted in a full defeasance of the 2010A Tax Allocation Bonds, and the related liability has been removed from the financial statements of the City. The refunding resulted in a deferred loss of $28,936, which represents the difference between the defeased bonds, and the amount placed in escrow. The advanced refunding also resulted in future cash flow savings of approximately $2,974,000 and an economic gain (difference between the present value of the debt service payments on the old and new debt) of approximately $2,000,000.

Future debt service requirements on these bonds are as follows:

Insurance

The Successor Agency of the former redevelopment agency is covered under the insurance policy of the City of Indian Wells at June 30, 2023.

Commitments and Contingencies

The Successor Agency is subject to litigation arising in the normal course of business. In the opinion of the legal counsel there is no pending litigation, which is likely to have a material adverse effect on the financial position of the Successor Agency.

Year Ending June 30, Principal Interest Total
2024 465,000$ 130,774$ 595,774$ 2025 480,000 120,615 600,615 2026 490,000 110,188 600,188 2027 500,000 99,545 599,545 2028 505,000 88,741 593,741 2029-2033 2,705,000 273,534 2,978,534 2034-2035 1,170,000 25,262 1,195,262 6,315,000$ 848,659$ 7,163,659$
83

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84

City of Indian Wells, California
Required Supplementary Information
June 30, 2023

Required Supplementary Information

The Schedule of Proportionate Share of Net Position Liability in accordance with GASB 68. The Schedule of Plan Contributions in accordance with GASB 68. The Schedule of Changes in the Net OPEB Liability in accordance with GASB 75. The Schedule of OPEB Contributions in accordance with GASB 75.

General Fund

This fund has been classified as a major fund and is used to account for resources traditionally associated with government which are not required legally or by sound fiscal management to be accounted for in another fund.

Special Revenue Funds

The Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for a particular purpose. The following funds have been classified as major funds and budget-actual comparisons for these funds have been present ed in the accompanying financial statements as required supplementary information.

Housing Authority - This fund is used to account for the housing activity of the former Redevelopment Agency for the benefit of providing low- and moderate-income housing in Indian Wells. The Housing Authority was created to promote and encourage the retention, rehabilitation, and development of affordable housing units.

Emergency Services Upgrade – This fund is used to accumulate the resources accruing from a special fire tax levied to provide enhancement levels of fire protection, suppression, and emergency paramedic services. 85

Measurement period 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Plan's proportion of the net pension liability 0.0017% 0.0017% -0.0072% -0.0119% 0.0008% 0.0154% 0.0480% 0.0695% 0.1456% Plan's proportionate share of the net pension liability (asset) (700,736)$ (6,449,180)$ (781,863)$ (1,218,808)$ 73,946$ 1,526,915$ 4,152,019$ 4,769,476$ 3,597,324$ Plan's covered payroll 3,241,802$ 3,207,039$ 3,038,144$ 2,889,192$ 2,943,396$ 2,812,372$ 2,902,571$ 2,814,500$ 2,673,595$ -21.62% -201.09% -25.73% -42.19% 2.51% 54.29% 143.05% 169.46% 134.55%

78.19% 90.49% 77.71% 75.30% 75.30% 73.31% 74.06% 78.40% 79.82% Notes to Schedule:

Benefit changes
Changes in assumptions
*Fiscal Year 2014-15 was the first year of implementation; therefore, only nine years of information are shown.

There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs. Employers that have done so may need to report this information as a separate liability in their financial statement as a CalPERS considers such amounts to be separately financed employer-specific liabilities. These employers should consult with their auditors. Additionally, the figures above do not include any liabiltiy impact that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long- term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. There were no changes in 2020 and 2019. In 2018, demographic assumptions and the inflation rate were changed in accordance with CalPERS Experience Study and Review of Actuarial Assumptions. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent.

City of Indian Wells, California
Schedule of the City's Proportionate Share of the Net Pension Liability - Miscellaneous Plan Last 10 Fiscal Years*
Plan's fiduciary net position as a percentage of the total pension liability
Plan's proportionate share of the net pension liability (asset) as a percentage of covered payroll
86

Fiscal Year 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially determined contributions 452,975$ 408,794$ 455,250$ 475,302$ 430,310$ 974,198$ 544,107$ 566,489$ -$ Contributions in relation to the actuarially
determined contributions (1,390,856) (1,300,007) (428,319) (428,319) (358,582) (1,334,875) (3,731,723) (2,566,489) (455,850) Contribution deficiency (excess) (937,881)$ (891,213)$ 26,931$ 46,983$ 71,728$ (360,677)$ (3,187,616)$ (2,000,000)$ (455,850)$ Covered payroll 3,529,517$ 3,241,802$ 3,207,039$ 3,038,144$ 2,889,192$ 2,943,396$ 2,812,372$ 2,902,571$ 2,814,500$ Contributions as a percentage of covered
payroll 39.41% 40.10% 13.36% 14.10% 12.41% 45.35% 132.69% 88.42% 16.20% Notes to Schedule
Fiscal Year: June 30, 2023
Valuation Date: June 30, 2020
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Actuarial Cost Method
Amortization method/period Varies by date established and source. May be level dollar or level percent of pay and may include direct rate smoothing.

Asset valuation method
Inflation 2.50%
Projected salary increases Varies by entry age and service Payroll growth 2.75%
Discount rate 7.00% (net of investment and administrative expenses) *Fiscal Year 2014-15 was the first year of implementation; therefore, only nine years of information are shown.

City of Indian Wells, California
Schedule of Plan Contributions - Miscellaneous Plan
Last 10 Fiscal Years*
Fair Value of Assets
87

Measurement Period 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 Total OPEB liability
Service cost 282,966$ 259,910$ 252,340$ 323,517$ 314,094$ 305,000$ Interest on the total OPEB liability 498,483 576,779 554,551 513,612 485,756 459,000 Changes of benefit terms - (15,495) - - - - Differences between expected and actual experience - (1,204,273) - 239,406 - - Changes of assumptions (279,230) 658,095 - 71,328 - - Benefit payments, including refunds of member contributions (462,932) (463,466) (454,170) (389,144) (338,000) (331,000) Net change in total OPEB liability 39,287 (188,450) 352,721 758,719 461,850 433,000 Total OPEB liability - beginning 9,011,840 9,200,290 8,847,569 8,088,850 7,627,000 7,194,000 Total OPEB liability - ending (a) 9,051,127$ 9,011,840$ 9,200,290$ 8,847,569$ 8,088,850$ 7,627,000$ OPEB fiduciary net position
Contributions - employer 466,353$ 677,553$ 1,190,919$ 389,962$ 607,000$ 614,000$ Net investment income (1,409,406) 1,830,412 448,019 524,434 423,619 459,000 Benefit payments, including refunds of member contributions (462,932) (463,466) (454,170) (389,144) (338,000) (331,000) Administrative expense (6,254) (5,590) (5,115) (2,424) (13,582) (4,000) Net change in plan fiduciary net position (1,412,239) 2,038,909 1,179,653 522,828 679,037 738,000 Plan fiduciary net position - beginning 11,208,427 9,169,518 7,989,865 7,467,037 6,788,000 6,050,000 Plan fiduciary net position - ending (b) 9,796,188 11,208,427 9,169,518 7,989,865 7,467,037 6,788,000 Plan net OPEB liability (asset) - ending (a) - (b) (745,061)$ (2,196,587)$ 30,772$ 857,704$ 621,813$ 839,000$ Plan fiduciary net position as a percentage
of the total OPEB Liability 108.23% 124.37% 99.67% 90.31% 92.31% 89.00% Covered-employee payroll 3,707,177$ 3,666,820$ 3,451,419$ 3,263,961$ 3,407,217$ 3,237,969$ Plan net OPEB liability (asset) as a percentage
of covered-employee payroll -20.10% -59.90% 0.89% 26.28% 18.25% 25.91% * Fiscal Year 2017-18 was the first year of implementation; therefore, only six years of information are shown.

City of Indian Wells, California
Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Fiscal Years*
88

Fiscal Year 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 Actuarially determined contribution (ADC) -$ 422,001$ 411,874$ 354,000$ 607,000$ 614,000$ Contributions in relation to the ADC (459,025) (386,181) (677,553) (1,190,919) (389,962) (573,377) Contribution deficiency (excess) (459,025)$ 35,820$ (265,679)$ (836,919)$ 217,038$ 40,623$ Covered employee payroll** 4,176,150$ 3,707,177$ 3,666,820$ 3,451,419$ 3,263,961$ 3,407,217$ Contributions as a percentage of covered
employee payroll 10.99% 10.42% 18.48% 34.51% 11.95% 16.83% Notes to Schedule
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percent of payroll
Asset valuation method Investment gains and losses spread over 5-year rolling period Inflation 2.5% annually
Healthcare cost trend rates Non-Medicare - 6.5% for 2023, decreasing to an ultimate

3.75% in 2076 and later years
Investment rate of return 5.50%
Retirement age 55
Mortality CalPERS 2000-2019 experience study
** Contributions are made on an ad hoc basis.
* Fiscal Year 2017-18 was the first year of implementation; therefore, only six years of information are shown.

City of Indian Wells, California
Schedule of OPEB Contributions
Last Ten Fiscal Years*
Actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were from the June 30, 2021 actuarial valuation report.
89

Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues
Taxes 17,605,080$ 17,605,080$ 23,099,286$ 5,494,206$ Licenses and permits 487,970 487,970 925,135 437,165 Intergovernmental 827,050 926,335 933,561 7,226 Charges for services 477,630 477,630 558,846 81,216 Investment income (loss) 375,050 375,050 101,144 (273,906) Fines and forfeitures 47,480 47,480 107,012 59,532 Other income 193,950 193,950 158,635 (35,315) Total revenues 20,014,210 20,113,495 25,883,619 5,770,124 Expenditures
Current
General government 7,869,156 9,723,434 10,257,611 (534,177) Public safety 5,628,350 5,038,150 5,096,149 (57,999) Community development 1,699,653 1,766,454 2,051,675 (285,221) Public works 2,754,599 2,706,006 2,985,140 (279,134) Total expenditures 17,951,758 19,234,044 20,390,575 (1,156,531) Other financing sources (uses)
Transfers in - - 18,500 18,500 Transfers out (4,101,958) (4,083,958) (4,127,789) (43,831) Total other financing sources (uses) (4,101,958) (4,083,958) (4,109,289) (25,331) Net change in fund balance (2,039,506) (3,204,507) 1,383,755 4,588,262 Fund balance, beginning 35,264,303 35,264,303 35,264,303 - Fund balance, ending 33,224,797$ 32,059,796$ 36,648,058$ 4,588,262$ Budgeted Amounts
City of Indian Wells, California
Budgetary Comparison Schedule - General Fund
Year Ended June 30, 2023
See Notes to Required Supplementary Information
90

Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues
Investment income (loss) 200,000$ 200,000$ 147,595$ (52,405)$ Other income - - 6,485 6,485 Total revenues 200,000 200,000 154,080 (45,920) Expenditures
Current
General government 1,719,905 4,502,147 1,847,021 2,655,126 Community development 250,000 250,000 250,000 - Total expenditures 1,969,905 4,752,147 2,097,021 2,655,126 Other financing sources (uses)
Transfers in - - 4,442,555 4,442,555 Transfers out - - (87,019) (87,019) Total other financing sources (uses) - - 4,355,536 4,355,536 Net change in fund balance (1,769,905) (4,552,147) 2,412,595 6,964,742 Fund balance, beginning 13,016,874 13,016,874 13,016,874 - Fund balance, ending 11,246,969$ 8,464,727$ 15,429,469$ 6,964,742$ Budgeted Amounts
City of Indian Wells, California
Budgetary Comparison Schedule - Housing Authority Special Revenue Fund Year Ended 30, 2023
See Notes to Required Supplementary Information
91

Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues
Taxes 3,739,286$ 3,739,286$ 4,680,767$ 941,481$ Charges for services 563,750 563,750 604,356 40,606 Investment income (loss) 112,750 112,750 (1,691) (114,441) Assessments 625,250 625,250 611,631 (13,619) Other income 15,380 15,380 10,677 (4,703) Total revenues 5,056,416 5,056,416 5,905,740 849,324 Expenditures
Current
Public safety 5,219,122 5,219,122 6,160,835 (941,713) Capital outlay 65,000 725,000 18,397 706,603 Total expenditures 5,284,122 5,944,122 6,179,232 (235,110) Other financing sources (uses)
Transfers out - - (145,031) (145,031) Total other financing sources (uses) - - (145,031) (145,031) Net change in fund balance (227,706) (887,706) (418,523) 614,214 Fund balance, beginning 4,891,059 4,891,059 4,891,059 - Fund balance, ending 4,663,353$ 4,003,353$ 4,472,536$ 614,214$ Budgeted Amounts
City of Indian Wells, California
Budgetary Comparison Schedule - Emergency Services Upgrade Special Revenue Fund Year Ended June 30, 2023
See Notes to Required Supplementary Information
92

City of Indian Wells, California
Notes to Required Supplementary Information
June 30, 2023

Note 1 - Budgets and Budgetary Accounting

The City follows these procedures in establishing the budgetary data reflected in the basic financial statements:

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

Public hearings are conducted at public workshops and City Council meetings to obtain taxpayer comments.

Prior to July 1, the budget is adopted by Council action.

Formal budgetary integration is employed as a management control device during the year. The City presents a comparison of annual budgets to actual results for all governmental funds. Budgeted revenue amounts represent the original budget modified by Council-authorized adjustments during the year which were contingent upon new or additional revenue sources. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year. Budgets are prepared in accorda nce with accounting principles generally accepted in the United States of America, using the modified-accrual basis of accounting.

The Finance Director is authorized by City Council to transfer any amounts within a fund between administrative control accounts, as well as budget adjustments between departments and programs within a fund. The transfer of appropriations between funds or between capital projects in the capital budget must be approved by City Council. Any subsequent appropriations of additional amounts of moneys for the fiscal year ended June 30, 2023, shall be approved by the City Council in advance of any authorization to purchase services or goods; with the exception that the City Manager may appropriate funds under the emergency provision of State Law to effect repairs or make acquisitions to protect life and property of the City.

All appropriations for prior fiscal year shall lapse at the end of the fiscal year and any remaining amounts shall be credited to their respective fund balances, with the exception of any unexpected amounts deemed necessary by the Finance Director for specific orders or encumbrances outstanding at the end of the year, and any unexpected appropriations for uncompleted capital projects in the capital budget at the end of the year. These amounts shall be charged against the incumbent fiscal year operating budget, as directed by the Finance Director.

93

City of Indian Wells, California
Notes to Required Supplementary Information
June 30, 2023

Note 1 - Budgets and Budgetary Accounting (continued)

The following funds had expenditures in excess of appropriations for the year ended June 30, 2023:

The Indian Wells Financing Authority Debt Service Fund and the Storm Drain Facilities Fees Fund were not included in the appropriated budget prepared for fiscal year ended June 30, 2023. Therefore, no budgetary to actual comparison schedule for these funds is presented.

Final Budget Actual
Excess Over
Appropriation
General Fund 19,234,044$ 20,390,575 (1,156,531) Emergency Services Upgrade Special Revenue Fund 5,944,122$ 6,179,232 (235,110) Solid Waste Fund 1,225,908$ 1,234,124 (8,216) Affordable Housing Operations Fund 2,124,989$ 2,367,530 (242,541) 94

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95

City of Indian Wells, California
Combining Balance Sheet - Nonmajor Governmental Funds
June 30, 2023

Special Revenue Funds

The following Special Revenue funds have been classified as other governmental funds in the accompanying financial statements.

Traffic Safety – This fund is used to account for the revenue from traffic fines and forfeitures and used to pay the costs of issuing tickets.

Public Safety ½% Tax – This fund is used to account for the half-cent sales tax collected by the State of California and allocated to the City for public safety.

Measure “A” Transportation – This fund is used to account for the City’s allocation of the sales tax increase, one- half cent, authorized by the Riverside County residents within November 1988. The funds collected are divided into four categories: Regional Transportation board (40%) administered by the Coachella Valley As sociation of Governments (CVAG), Sunline Transit (10%), State Highways (15%), and local agencies (35%). The local share is based 50% on population and 50% on point -of-sale. The local monies are legally restricted for the acquisition, construction and improvements of the public streets.

Fire Access Maintenance District No. 1 – This fund is used to account for the accumulation of special assessments, ad valorem taxes and other revenues accruing to the benefit and for expenses of the special district referred to as the Fire Access Maintenance District No. 1.

South Coast Air Quality Management District Vehicle Registration – This fund is used to account for the City’s share of vehicle registration fees that the State of California has allocated to address air quality concerns in California. These monies are to be used in air quality maintenance programs locally.

Citizens Option for Public Safety Program – This fund is used for front line municipal police services including anti- gang and community crime prevention programs.

Gas Tax – This fund is used to account for the City’s share of motor vehicle gas tax imposed under the provisions of the Street and Highway Code of the State of California under Sections 2105, 2106, 2107 and 2107.5 which are legally restricted for the acquisition, construction, improvement, and maintenance of public streets.

AB 939 Recycling – This fund is used to account for the revenues and expenditures incurred in recycling.

Solid Waste – This fund is used to account for city -wide assessment revenues and related expenditures incurred in providing residential garbage and refuse collection to the various benefiting assessment districts.

Consolidated LLMD – This fund is used to account for the revenues and expenditures incurred in providing lighting and landscaping maintenance services to the various benefiting assessment districts.

Street Lighting District 2001 -1 – This fund is used to account for the revenues and expenditures incurred in providing lighting maintenance services within the City.

Affordable Housing Operations – This fund is used to account for revenues and expenditures associated with the retention and development of affordable housing units.
96

City of Indian Wells, California
Combining Balance Sheet - Nonmajor Governmental Funds
June 30, 2023

Capital Projects Funds

The following Capital Projects Funds have been classified as other governmental funds in the accompanying financial statements:

Hwy 111 Circulation Improvement – This fund accounts for fees collected from projects, which will create adverse impacts on the existing public facilities. It will finance future projects to mitigate the traffic impact.

Park Facilities Fees – This fund accounts for the accumulated fees collected to fund the park facilities needed to serve new development. It is a fee-in-lieu of land dedication charged under the Quimby Act to new residential development occurring in a subdivision.

Transportation Facilities Fees – This fund accounts for the accumulation of fees collected to fund transportation facilities needed to serve new development to fund capacity-expanding transportation projects. This fee replaces the Highway 111 Circulation Improvement Fee.

Storm Drain Facilities Fees – This fund accounts for the accumulated fees collected to fund storm drain facilities needed to serve new development.

Recreation Facilities Fees – This fee accounts for the accumulation of fees collected to fund recreation facilities needed to serve new development. As new development occurs, the City will need to make additional, capacity- expanding improvements to the golf course as demand for use of the facility increases.

Citywide Public Improvement – This fund is used to account for the accumulation of resources from the citywide public improvement fee for the acquisition and construction of general government capital projects.

Art in Public Places – This fund is used to account for fees collected through the building permit process to support art in public places with the community. The program supports arts and culture throughout the City.

Bridges Capital Reserve – This fund establishes reserve funding for bridges in the City.

Building Capital Reserve – This fund establishes reserve funding for the City’s assets in and around the City’s Civic Center complex. These assets include City Hall, the Fire Station, Emergency Operations Command, and surrounding Public Works facilities.

Medians & Parkways Capital Reserve – This fund establishes reserve funding for medians and parkways throughout the City.

Storm Drains Capital Reserve – This fund establishes reserve funding for storm drains throughout the City. Funding is for construction and preventative maintenance of storm drains to extend roadway infrastructure.

Traffic Signals Capital Reserve – This fund establishes reserve funding for traffic signals throughout the City.

Technology Capital Reserve – This fund establishes reserve funding for citywide information technology.

97

City Vehicles Capital Reserve – This fund establishes reserve funding for the purchase and replacement of City vehicles and fleet. Vehicles and fleet are to be replaced as needed to reduce the cost of ongoing maintenance costs.

Disaster Recovery Reserve – This reserve sets aside funds for the initial stages of disaster recovery prior to the inclusion of County, State, and Federal funding. Reserve funds allow for immediate response and recovery under a range of domestic emergencies like floods or earthquakes. The funds are earmarked, remain unspent if not used for disaster recovery, and cannot be used for any other purpose.

98

City of Indian Wells, California
Combining Balance Sheet - Nonmajor Governmental Funds
.June 30, 2023
Citizens
Fire Access South Coast Option for
Public Safety Measure "A" Maintenance AQMD Vehicle Public Safety AB 939 Traffic Safety 1/2% Tax Transportation District No. 1 Registration Program Gas Tax Recycling Solid Waste Assets
Cash and investments 6,112$ 5,464$ 14,917$ 1,831,554$ 15,621$ 11,405$ 107,623$ 318,730$ 140,319$ Receivables
Accounts 4,002 2,840 52,067 35,098 1,588 - 20,499 7,280 35,495 Accrued interest 24 21 59 7,192 61 45 423 - 1,838 Prepaid costs - - - 663 - - - - - Total assets 10,138$ 8,325$ 67,043$ 1,874,507$ 17,270$ 11,450$ 128,545$ 326,010$ 177,652$ Liabilities and Fund Balances
Liabilities
Accounts payable -$ -$ -$ 182,500$ 3,688$ -$ -$ 5,640$ 35,518$ Accrued liabilities - - - - - - - 2,994 1,465 Deposits payable - - - 25 - - - - - Due to other funds - - - - - - - - - Total liabilities - - - 182,525 3,688 - - 8,634 36,983 Fund Balances
Nonspendable
Prepaid costs - - - 663 - - - - - Restricted for
Community development - - - - - - - - - Public safety - 8,325 - 1,691,319 - 11,450 - - - Public works 10,138 - 67,043 - 13,582 - 128,545 317,376 140,669 Committed to
Capital projects - - - - - - - - - Assigned
Capital projects - - - - - - - - - Unassigned - - - - - - - - - Total fund balances 10,138 8,325 67,043 1,691,982 13,582 11,450 128,545 317,376 140,669 Total Liabilities and Fund Balances 10,138$ 8,325$ 67,043$ 1,874,507$ 17,270$ 11,450$ 128,545$ 326,010$ 177,652$ Special Revenue Funds
99

City of Indian Wells, California City of Indian Wells, California Combining Balance Sheet - Nonmajor Governmental Funds Combining Balance Sheet - Nonmajor Governmental Funds .June 30, 2023
Affordable Hwy 111 Transportation Recreation Citywide
Consolidated Street Lighting Housing Circulation Park Facilities Facilities Facilities Public Art in Public LLMD District 2001-1 Operations Improvement Fees Fees Fees Improvement Places Assets
Cash and investments 1,673,187$ 16,704$ 944,110$ 37,153$ 21,297$ -$ -$ -$ 494,061$ Receivables
Accounts 25,595 24 7,975 - - - - - - Accrued interest 6,570 66 3,013 146 84 - - - 1,940 Prepaid costs - - - - - - - - - Total assets 1,705,352$ 16,794$ 955,098$ 37,299$ 21,381$ -$ -$ -$ 496,001$ Liabilities and Fund Balances
Liabilities
Accounts payable 91,555$ -$ 121,185$ -$ 478$ 1,958$ 3,922$ 656$ 1,846$ Accrued liabilities - - - - - - - - - Deposits payable - - 129,029 - - - - - - Due to other funds - - - - - 61,670 257,894 57,109 - Total liabilities 91,555 - 250,214 - 478 63,628 261,816 57,765 1,846 Fund Balances
Nonspendable
Prepaid costs - - - - - - - - - Restricted for
Community development - - 704,884 - 20,903 - - - - Public safety - - - - - - - - - Public works 1,613,797 16,794 - 37,299 - - - - - Committed to
Capital projects - - - - - - - - 494,155 Assigned
Capital projects - - - - - - - - - Unassigned - - - - - (63,628) (261,816) (57,765) - Total fund balances 1,613,797 16,794 704,884 37,299 20,903 (63,628) (261,816) (57,765) 494,155 Total Liabilities and Fund Balances 1,705,352$ 16,794$ 955,098$ 37,299$ 21,381$ -$ -$ -$ 496,001$ Special Revenue Funds Capital Projects Funds
100

City of Indian Wells, California City of Indian Wells, California Combining Balance Sheet - Nonmajor Governmental Funds Combining Balance Sheet - Nonmajor Governmental Funds .June 30, 2023
Capital Projects Funds
Medians & Total
Bridges Buildings Parkways Storm Drains Traffic Signals Technology City Vehicles Disaster Nonmajor Capital Capital Capital Capital Capital Capital Capital Recovery Governmental Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Funds Assets
Cash and investments 1,790,016$ 1,990,617$ 1,424,895$ 719,746$ 590,920$ 539,633$ 123,655$ 291,850$ 13,109,589$ Receivables
Accounts - - - - - - - - 192,463 Accrued interest 7,029 7,817 5,595 2,826 2,320 2,119 486 1,146 50,820 Prepaid costs - - - - - - - - 663 Total assets 1,797,045$ 1,998,434$ 1,430,490$ 722,572$ 593,240$ 541,752$ 124,141$ 292,996$ 13,353,535$ Liabilities and Fund Balances
Liabilities
Accounts payable -$ -$ -$ -$ -$ -$ -$ -$ 448,946$ Accrued liabilities - - - - - - - - 4,459 Deposits payable - - - - - - - - 129,054 Due to other funds - - - - - - - - 376,673 Total liabilities - - - - - - - - 959,132 Fund Balances
Nonspendable
Prepaid costs - - - - - - - - 663 Restricted for
Community development - - - - - - - - 725,787 Public safety - - - - - - - - 1,711,094 Public works - - - - - - - - 2,345,243 Committed to
Capital projects - - - - - - - - 494,155 Assigned
Capital projects 1,797,045 1,998,434 1,430,490 722,572 593,240 541,752 124,141 292,996 7,500,670 Unassigned - - - - - - - - (383,209) Total fund balances 1,797,045 1,998,434 1,430,490 722,572 593,240 541,752 124,141 292,996 12,394,403 Total Liabilities and Fund Balances 1,797,045$ 1,998,434$ 1,430,490$ 722,572$ 593,240$ 541,752$ 124,141$ 292,996$ 13,353,535$ 101

City of Indian Wells, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended June 30, 2023
Citizens
Fire Access South Coast Option for
Public Safety Measure "A" Maintenance AQMD Vehicle Public Safety AB 939 Traffic Safety 1/2% Tax Transportation District No. 1 Registration Program Gas Tax Recycling Solid Waste Revenues
Taxes -$ -$ -$ 385,778$ -$ -$ -$ -$ -$ Licenses and permits - - - - - - - - - Intergovernmental - 37,055 296,540 1,655 6,286 165,271 239,557 - - Investment income (loss) (31) (6) (30) 806 (1) (18) (355) - 2,974 Fines and forfeitures 23,469 - - - - - - - - Rental income - - - - - - - - - Assessments - - - 1,202,039 - - - 110,674 1,164,638 Developer fees - - - - - - - - - Other income - - - 2,963 - - - - 2,379 Total revenues 23,438 37,049 296,510 1,593,241 6,285 165,253 239,202 110,674 1,169,991 Expenditures
Current
General government - - - - - - - - - Public safety - 35,000 - 1,341,689 - 160,000 - - - Community development - - - - - - - - - Public works 17,000 - 300,000 Capital outlay- 6,053 - 124,142 218,796 1,234,124 Capital outlay - - - Depreciation expense, net of adjustments for deletions710,648 - - - - - Total expenditures 17,000 35,000 300,000 2,052,337 6,053 160,000 124,142 218,796 1,234,124 Excess (Deficiency) of Revenues
over (under) Expenditures 6,438 2,049 (3,490) (459,096) 232 5,253 115,060 (108,122) (64,133) Other Financing Sources (Uses)
Transfers in - - - - - - - - - Transfers out - - - - - - - - - Total other financing
sources (uses) - - - - - - - - - Net Change in Fund Balances 6,438 2,049 (3,490) (459,096) 232 5,253 115,060 (108,122) (64,133) Fund Balances, Beginning of Year 3,700 6,276 70,533 2,151,078 13,350 6,197 13,485 425,498 204,802 Fund Balances, End of Year 10,138$ 8,325$ 67,043$ 1,691,982$ 13,582$ 11,450$ 128,545$ 317,376$ 140,669$ Special Revenue Funds
102

City of Indian Wells, California City of Indian Wells, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended June 30, 2023 Year Ended June 30, 2023
Affordable Hwy 111 Transportation Recreation Citywide
Consolidated Street Lighting Housing Circulation Park Facilities Facilities Facilities Public Art in Public LLMD District 2001-1 Operations Improvement Fees Fees Fees Improvement Places Revenues
Taxes -$ -$ -$ -$ -$ -$ -$ -$ -$ Licenses and permits - - - - - - - - - Intergovernmental - - - - - - - - - Investment income (loss) 3,236 8 42,901 61 (129) 220 441 359 11 Fines and forfeitures - - - - - - - - - Rental income - - 2,310,605 - - - - - - Assessments 1,440,767 2,234 - - - - - - - Developer fees - - - 17,550 21,032 86,152 172,568 91,745 182,409 Other income - - - - - - - - - Total revenues 1,444,003 2,242 2,353,506 17,611 20,903 86,372 173,009 92,104 182,420 Expenditures
Current
General government - - - - - - - - - Public safety - - - - - - - - - Community development - - 2,367,530 - - - - - - Public works 1,484,288 201 - - - - - - - Capital outlay - - - - - - - - - Total expenditures 1,484,288 201 2,367,530 - - - - - - Excess (Deficiency) of Revenues
over (under) Expenditures (40,285) 2,041 (14,024) 17,611 20,903 86,372 173,009 92,104 182,420 Other Financing Sources (Uses)
Transfers in 102,398 - - - - - - - - Transfers out - - (4,000,000) - - (150,000) (434,825) (150,000) - Total other financing
sources (uses) 102,398 - (4,000,000) - - (150,000) (434,825) (150,000) - Net Change in Fund Balances 62,113 2,041 (4,014,024) 17,611 20,903 (63,628) (261,816) (57,896) 182,420 Fund Balances, Beginning of Year 1,551,684 14,753 4,718,908 19,688 - - - 131 311,735 Fund Balances, End of Year 1,613,797$ 16,794$ 704,884$ 37,299$ 20,903$ (63,628)$ (261,816)$ (57,765)$ 494,155$ Capital Projects FundsSpecial Revenue Funds
103

City of Indian Wells, California City of Indian Wells, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended June 30, 2023 Year Ended June 30, 2023
Medians & Total
Storm Drains Bridges Buildings Parkways Traffic Signals Technology City Vehicles Disaster Nonmajor Capital Capital Capital Capital Capital Capital Capital Recovery Governmental Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Funds Revenues
Taxes -$ -$ -$ -$ -$ -$ -$ -$ 385,778$ Licenses and permits - - - - - - - - - Intergovernmental - - - - - - - - 746,364 Investment income (loss) 1,111 2,767 3,432 2,201 1,019 833 85 655 62,550 Fines and forfeitures - - - - - - - - 23,469 Rental income - - - - - - - - 2,310,605 Assessments - - - - - - - - 3,920,352 Developer fees - - - - - - - - 571,456 Other income - - - - - - - - 5,342 Total revenues 1,111 2,767 3,432 2,201 1,019 833 85 655 8,025,916 Expenditures
Current
General government - - - - - - - - - Public safety - - - - - - - - 1,536,689 Community development - - - - - - - - 2,367,530 Public works - - - - - - - - 3,384,604 Capital outlay - - - - - - - - 710,648 Total expenditures - - - - - - - - 7,999,471 Excess (Deficiency) of Revenues
over (under) Expenditures 1,111 2,767 3,432 2,201 1,019 833 85 655 26,445 Other Financing Sources (Uses)
Transfers in 30,000 74,000 322,000 59,000 24,000 22,000 5,000 150,000 788,398 Transfers out - - - - - - - - (4,734,825) Total other financing
sources (uses) 30,000 74,000 322,000 59,000 24,000 22,000 5,000 150,000 (3,946,427) Net Change in Fund Balances 31,111 76,767 325,432 61,201 25,019 22,833 5,085 150,655 (3,919,982) Fund Balances, Beginning of Year 691,461 1,720,278 1,673,002 1,369,289 568,221 518,919 119,056 142,341 16,314,385 Fund Balances, End of Year 722,572$ 1,797,045$ 1,998,434$ 1,430,490$ 593,240$ 541,752$ 124,141$ 292,996$ 12,394,403$ Capital Projects Funds
104

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 10$ (31)$ (41)$ Fines and forfeitures 17,100 23,469 6,369 Total revenues 17,110 23,438 6,328 Expenditures
Current
Public works 17,000 17,000 - Total expenditures 17,000 17,000 - Net change in fund balance 110 6,438 6,328 Fund balance, beginning 3,700 3,700 - Fund balance, ending 3,810$ 10,138$ 6,328$ City of Indian Wells, California
Budgetary Comparison Schedule - Traffic Safety
Year Ended June 30, 2023
105

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental 24,600$ 37,055$ 12,455$ Investment income (loss) 1,440 (6) (1,446) Total revenues 26,040 37,049 11,009 Expenditures
Current
Public safety 35,000 35,000 - Total expenditures 35,000 35,000 - Net change in fund balance (8,960) 2,049 11,009 Fund balance, beginning 6,276 6,276 - Fund balance, ending (2,684)$ 8,325$ 11,009$ City of Indian Wells, California
Budgetary Comparison Schedule - Public Safety 1/2% Tax
Year Ended June 30, 2023
106

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental 279,650$ 296,540$ 16,890$ Investment income 1,230 (30) (1,260) Total revenues 280,880 296,510 15,630 Expenditures
Current
Public works 300,000 300,000 - Total expenditures 300,000 300,000 - Net change in fund balance (19,120) (3,490) 15,630 Fund balance, beginning 70,533 70,533 - Fund balance, ending 51,413$ 67,043$ 15,630$ City of Indian Wells, California
Budgetary Comparison Schedule - Measure "A" Transportation Year Ended June 30, 2023
107

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Taxes 361,780$ 385,778$ 23,998$ Licenses and permits 1,180 - (1,180) Intergovernmental 1,640 1,655 15 Investment income (loss) 92,250 806 (91,444) Assessments 1,200,000 1,202,039 2,039 Other income 3,330 2,963 (367) Total revenues 1,660,180 1,593,241 (66,939) Expenditures
Current
Public safety 1,426,623 1,341,689 84,934 Capital outlay 706,061 710,648 (4,587) Total expenditures 2,132,684 2,052,337 80,347 Net change in fund balance (472,504) (459,096) 13,408 Fund balance, beginning 2,151,078 2,151,078 - Fund balance, ending 1,678,574$ 1,691,982$ 13,408$ City of Indian Wells, California
Budgetary Comparison Schedule - Fire Access Maintenance District No. 1 Year Ended June 30, 2023
108

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental 7,160$ 6,286$ (874)$ Investment income (loss) 310 (1) (311) Total revenues 7,470 6,285 (1,185) Expenditures
Current
Public works 7,500 6,053 1,447 Total expenditures 7,500 6,053 1,447 Net change in fund balance (30) 232 262 Fund balance, beginning 13,350 13,350 - Fund balance, ending 13,320$ 13,582$ 262$ City of Indian Wells, California
Budgetary Comparison Schedule - South Coast AQMD Vehicle Registration Year Ended June 30, 2023
109

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental 157,390$ 165,271$ 7,881$ Investment income (loss) 3,900 (18) (3,918) Total revenues 161,290 165,253 3,963 Expenditures
Current
Public safety 190,000 160,000 30,000 Total expenditures 190,000 160,000 30,000 Net change in fund balance (28,710) 5,253 33,963 Fund balance, beginning 6,197 6,197 - Fund balance, ending (22,513)$ 11,450$ 33,963$ City of Indian Wells, California
Budgetary Comparison Schedule - Citizens Option for Public Safety Program Year Ended June 30, 2023
110

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental 235,230$ 239,557$ 4,327$ Investment income 4,230 (355) (4,585) Total revenues 239,460 239,202 (258) Expenditures
Current
General government 110,000 - 110,000 Public works 136,030 124,142 11,888 Total expenditures 246,030 124,142 121,888 Net change in fund balance (6,570) 115,060 121,630 Fund balance, beginning 13,485 13,485 - Fund balance, ending 6,915$ 128,545$ 121,630$ City of Indian Wells, California
Budgetary Comparison Schedule - Gas Tax
Year Ended June 30, 2023
111

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Assessments 94,300$ 110,674$ 16,374$ Total revenues 94,300 110,674 16,374 Expenditures
Current
Public works 321,359 218,796 102,563 Total expenditures 321,359 218,796 102,563 Net change in fund balance (227,059) (108,122) 118,937 Fund balance, beginning 425,498 425,498 - Fund balance, ending 198,439$ 317,376$ 118,937$ City of Indian Wells, California
Budgetary Comparison Schedule - AB 939 Recycling
Year Ended June 30, 2023
112

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 35,880$ 2,974$ (32,906)$ Assessments 1,050,630 1,164,638 114,008 Other income 2,560 2,379 (181) Total revenues 1,089,070 1,169,991 80,921 Expenditures
Current
Public works 1,225,908 1,234,124 (8,216) Total expenditures 1,225,908 1,234,124 (8,216) Net change in fund balance (136,838) (64,133) 72,705 Fund balance, beginning 204,802 204,802 - Fund balance, ending 67,964$ 140,669$ 72,705$ City of Indian Wells, California
Budgetary Comparison Schedule - Solid Waste
Year Ended June 30, 2023
113

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 51,580$ 3,236$ (48,344)$ Assessments 1,417,800 1,440,767 22,967 Total revenues 1,469,380 1,444,003 (25,377) Expenditures
Current
Public works 1,669,830 1,484,288 185,542 Total expenditures 1,669,830 1,484,288 185,542 Other financing sources (uses)
Transfers in 177,090 102,398 (74,692) Total other financing sources (uses) 177,090 102,398 (74,692) Net change in fund balance (23,360) 62,113 85,473 Fund balance, beginning 1,551,684 1,551,684 - Fund balance, ending 1,528,324$ 1,613,797$ 85,473$ City of Indian Wells, California
Budgetary Comparison Schedule - Consolidating LLMD
Year Ended June 30, 2023
114

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 380$ 8$ (372)$ Assessments 1,410 2,234 824 Total revenues 1,790 2,242 452 Expenditures
Current
Public works 1,730 201 1,529 Total expenditures 1,730 201 1,529 Net change in fund balance 60 2,041 1,981 Fund balance, beginning 14,753 14,753 - Fund balance, ending 14,813$ 16,794$ 1,981$ City of Indian Wells, California
Budgetary Comparison Schedule - Street Lighting District 2001-1 Year Ended June 30, 2023
115

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 116,850$ 42,901$ (73,949)$ Rental income 2,124,980 2,310,605 185,625 Total revenues 2,241,830 2,353,506 111,676 Expenditures
Current
Community development 2,124,989 2,367,530 (242,541) Total expenditures 2,124,989 2,367,530 (242,541) Other financing sources (uses):

Transfers out - (4,000,000) (4,000,000) Total other financing sources (uses) - (4,000,000) (4,000,000) Net change in fund balance 116,841 (4,014,024) (4,130,865) Fund balance, beginning 4,718,908 4,718,908 - Fund balance, ending 4,835,749$ 704,884$ (4,130,865)$ City of Indian Wells, California
Budgetary Comparison Schedule - Affordable Housing Operations Year Ended June 30, 2023
116

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental 500,000$ 184,414$ (315,586)$ Investment income (loss) 410,000 3,484 (406,516) Other income 10,000 - (10,000) Total revenues 920,000 187,898 (732,102) Expenditures
Current
General government 262,490 134,511 127,979 Capital outlay 16,261,116 5,147,043 11,114,073 Total expenditures 16,523,606 5,281,554 11,242,052 Other financing sources (uses)
Transfers in 2,480,785 3,772,129 1,291,344 Total other financing sources (uses) 2,480,785 3,772,129 1,291,344 Net change in fund balance (13,122,821) (1,321,527) 11,801,294 Fund balance, beginning 9,176,269 9,176,269 - Fund balance, ending (3,946,552)$ 7,854,742$ 11,801,294$ Year Ended June 30, 2023
Budgetary Comparison Schedule - Capital Improvements
City of Indian Wells, California
117

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 640,630$ 55,779$ (584,851)$ Total revenues 640,630 55,779 (584,851) Other financing sources (uses)
Transfers in 162,500 814,000 651,500 Transfers out - - - Total other financing sources (uses) 162,500 814,000 651,500 Net change in fund balance 803,130 869,779 66,649 Fund balance, beginning 18,868,145 18,868,145 - Fund balance, ending 19,671,275$ 19,737,924$ 66,649$ City of Indian Wells, California
Budgetary Comparison Schedule - City Streets Capital Reserve Year Ended June 30, 2023
118

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) -$ 61$ 61$ Developer fees 100 17,550 17,450 Total revenues 100 17,611 17,511 Net change in fund balance 100 17,611 17,511 Fund balance, beginning 19,688 19,688 - Fund balance, ending 19,788$ 37,299$ 17,511$ City of Indian Wells, California
Budgetary Comparison Schedule - Highway 111 Circulation Improvements Year Ended June 30, 2023
119

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) -$ (129)$ (129)$ Developer fees - 21,032 21,032 Total revenues - 20,903 20,903 Net change in fund balance - 20,903 20,903 Fund balance, beginning - - - Fund balance, ending -$ 20,903$ 20,903$ City of Indian Wells, California
Budgetary Comparison Schedule - Park Facilities Fees
Year Ended June 30, 2023
120

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) -$ 220$ 220$ Developer fees 151,575 86,152 (65,423) Total revenues 151,575 86,372 (65,203) Other financing sources (uses)
Transfers out (150,000) (150,000) - Total other financing sources (uses) (150,000) (150,000) - Net change in fund balance 1,575 (63,628) (65,203) Fund balance, beginning - - - Fund balance, ending 1,575$ (63,628)$ (65,203)$ City of Indian Wells, California
Budgetary Comparison Schedule - Transportation Facilities Fees Year Ended June 30, 2023
121

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 2,500$ 441$ (2,059)$ Developer fees - 172,568 172,568 Total revenues 2,500 173,009 170,509 Other financing sources (uses)
Transfers out (434,825) (434,825) - Total other financing sources (uses) (434,825) (434,825) - Net change in fund balance (432,325) (261,816) 170,509 Fund balance, beginning - - - Fund balance, ending (432,325)$ (261,816)$ 170,509$ City of Indian Wells, California
Budgetary Comparison Schedule - Recreation Facilities Fees Year Ended June 30, 2023
122

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 2,050$ 359$ (1,691)$ Developer fees 131,200 91,745 (39,455) Total revenues 133,250 92,104 (41,146) Other financing sources (uses)
Transfers out (150,000) (150,000) - Total other financing sources (uses) (150,000) (150,000) - Net change in fund balance (16,750) (57,896) (41,146) Fund balance, beginning 131 131 - Fund balance, ending (16,619)$ (57,765)$ (41,146)$ Budgetary Comparison Schedule - City Wide Public Improvements Year Ended June 30, 2023
City of Indian Wells, California
123

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 4,920$ 11$ (4,909)$ Developer fees 14,860 182,409 167,549 Total revenues 19,780 182,420 162,640 Fund balance, beginning 311,735 311,735 - Fund balance, ending 331,515$ 494,155$ 162,640$ City of Indian Wells, California
Budgetary Comparison Schedule - Art in Public Places
Year Ended June 30, 2023
124

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 59,450$ 2,767$ (56,683)$ Total revenues 59,450 2,767 (56,683) Other financing sources (uses)
Transfers in 162,500 74,000 (88,500) Total other financing sources (uses) 162,500 74,000 (88,500) Net change in fund balance 221,950 76,767 (145,183) Fund balance, beginning 1,720,278 1,720,278 - Fund balance, ending 1,942,228$ 1,797,045$ (145,183)$ City of Indian Wells, California
Budgetary Comparison Schedule - Bridges Capital Reserve Year Ended June 30, 2023
125

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 49,200$ 3,432$ (45,768)$ Total revenues 49,200 3,432 (45,768) Other financing sources (uses)
Transfers in 1,537,500 322,000 (1,215,500) Total other financing sources (uses) 1,537,500 322,000 (1,215,500) Net change in fund balance 1,586,700 325,432 (1,261,268) Fund balance, beginning 1,673,002 1,673,002 - Fund balance, ending 3,259,702$ 1,998,434$ (1,261,268)$ City of Indian Wells, California
Budgetary Comparison Schedule - Buildings Capital Reserve Year Ended June 30, 2023
126

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 48,690$ 2,201$ (46,489)$ Total revenues 48,690 2,201 (46,489) Other financing sources (uses)
Transfers in 162,500 59,000 (103,500) Total other financing sources (uses) 162,500 59,000 (103,500) Net change in fund balance 211,190 61,201 (149,989) Fund balance, beginning 1,369,289 1,369,289 - Fund balance, ending 1,580,479$ 1,430,490$ (149,989)$ City of Indian Wells, California
Budgetary Comparison Schedule - Medians & Parkways Capital Reserve Year Ended June 30, 2023
127

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 24,090$ 1,111$ (22,979)$ Total revenues 24,090 1,111 (22,979) Other financing sources (uses)
Transfers in 162,500 30,000 (132,500) Total other financing sources (uses) 162,500 30,000 (132,500) Net change in fund balance 186,590 31,111 (155,479) Fund balance, beginning 691,461 691,461 - Fund balance, ending 878,051$ 722,572$ (155,479)$ City of Indian Wells, California
Budgetary Comparison Schedule - Storm Drains Capital Reserve Year Ended June 30, 2023
128

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 21,010$ 1,019$ (19,991)$ Total revenues 21,010 1,019 (19,991) Other financing sources (uses)
Transfers in 162,500 24,000 (138,500) Total other financing sources (uses) 162,500 24,000 (138,500) Net change in fund balance 183,510 25,019 (158,491) Fund balance, beginning 568,221 568,221 - Fund balance, ending 751,731$ 593,240$ (158,491)$ City of Indian Wells, California
Budgetary Comparison Schedule - Traffic Signals Capital Reserve Year Ended June 30, 2023
129

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 18,960$ 833$ (18,127)$ Total revenues 18,960 833 (18,127) Other financing sources (uses)
Transfers in 162,500 22,000 (140,500) Total other financing sources (uses) 162,500 22,000 (140,500) Net change in fund balance 181,460 22,833 (158,627) Fund balance, beginning 518,919 518,919 - Fund balance, ending 700,379$ 541,752$ (158,627)$ City of Indian Wells, California
Budgetary Comparison Schedule - Technology Capital Reserve Year Ended June 30, 2023
130

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) 4,610$ 85$ (4,525)$ Total revenues 4,610 85 (4,525) Other financing sources (uses)
Transfers in 162,500 5,000 (157,500) Total other financing sources (uses) 162,500 5,000 (157,500) Net change in fund balance 167,110 5,085 (162,025) Fund balance, beginning 119,056 119,056 - Fund balance, ending 286,166$ 124,141$ (162,025)$ City of Indian Wells, California
Budgetary Comparison Schedule - City Vehicles Capital Reserve Year Ended June 30, 2023
131

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss) -$ 655$ 655$ Total revenues - 655 655 Other financing sources (uses)
Transfers in 150,000 150,000 - Total other financing sources (uses) 150,000 150,000 - Net change in fund balance 150,000 150,655 655 Fund balance, beginning 142,341 142,341 - Fund balance, ending 292,341$ 292,996$ 655$ City of Indian Wells, California
Budgetary Comparison Schedule - Disaster Recovery Reserve Year Ended June 30, 2023
132

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Developer fees 61,500$ 111,021$ 49,521$ Total revenues 61,500 111,021 49,521 Expenditures
Current
General government - 2,822 (2,822) Total expenditures - 2,822 (2,822) Net change in fund balance 61,500 108,199 46,699 Fund balance, beginning (1,483,512) (1,483,512) - Fund balance, ending (1,422,012)$ (1,375,313)$ 46,699$ City of Indian Wells, California
Budgetary Comparison Schedule - Park Facilities in Lieu Capital Projects Fund Year Ended June 30, 2023
133

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134

Employee Compensated
Benefits Absences Totals
Assets
Current Assets
Cash and investments 2,240,488$ 624,787$ 2,865,275$ Restricted Section 115 Trust cash and investments 1,099,343 - 1,099,343 Receivables
Accrued interest 2,822 2,281 5,103 Total current assets 3,342,653 627,068 3,969,721 Noncurrent Assets
Net OPEB Asset 745,061 - 745,061 Total assets 4,087,714 627,068 4,714,782 Deferred Outflows of Resources
Deferred amounts related to OPEB 1,806,981 - 1,806,981 Liabilities
Current Liabilities
Accounts payable 1,492 - 1,492 Total liabilities 1,492 - 1,492 Deferred Inflows of Resources
Deferred amounts related to OPEB 968,612 - 968,612 Net Position
Restricted for OPEB 2,682,773 - 2,682,773 Unrestricted 2,241,818 627,068 2,868,886 Total net position 4,924,591$ 627,068$ 5,551,659$ Governmental Activities -
Internal Service Funds
City of Indian Wells, California
Combining Statement of Net Position - Internal Service Funds .June 30, 2023
135

Employee Compensated
Benefits Absences Totals
Operating Revenues
Interdepartmental charges 2,563,611$ -$ 2,563,611$ Total operating revenues 2,563,611 - 2,563,611 Operating Expenses
Administration and general 1,049,090 - 1,049,090 Total operating expenses 1,049,090 - 1,049,090 Operating Income (Loss) 1,514,521 - 1,514,521 Nonoperating Revenue (Expenses)
Investment income (loss) 77,682 192 77,874 Total nonoperating revenues (expenses) 77,682 192 77,874 Transfers In - 44,606 44,606 Changes in Net Position 1,592,203 44,798 1,637,001 Net Position, Beginning of Year 3,332,388 582,270 3,914,658 Net Position, End of Year 4,924,591$ 627,068$ 5,551,659$ Governmental Activities -
Internal Service Funds
City of Indian Wells, California
Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds Year Ended June 30, 2023
136

Employee Compensated
Benefits Absences Totals
Operating Activities
Cash received from interfund services provided 2,565,336$ -$ 2,565,336$ Cash paid to suppliers for goods and services (1,352,770) - (1,352,770) Net Cash from (used for) Operating Activities 1,212,566 - 1,212,566 Non-Capital Financing Activities
Cash received from other funds - 44,606 44,606 Net Cash from (used for) Non-Capital Financing Activities - 44,606 44,606 Investing Activities
Interest gain (loss) 74,860 (1,222) 73,638 Net Cash from (used for) Investing Activities 74,860 (1,222) 73,638 Net Change in Cash and Cash Equivalents 1,287,426 43,384 1,330,810 Cash, Restricted Cash, and Cash Equivalents, Beginning of Year 2,052,405 581,403 2,633,808 Cash, Restricted Cash, and Cash Equivalents, End of Year 3,339,831$ 624,787$ 3,964,618$ -
Reconciliation of Operating Income to Net Cash
from (used for) Operating Activities
Operating income (loss) 1,514,521$ -$ 1,514,521$ Changes in
Accounts receivable 1,725 - 1,725 Net OPEB asset and related balances (304,563) - (304,563) Accounts payable 883 - 883 Net Cash from (used for) Operating Activities 1,212,566$ -$ 1,212,566$ Governmental Activities -
Internal Service Funds
City of Indian Wells, California
Combining Statement of Cash Flows - Internal Service Funds Year Ended June 30, 2023
137

City of Indian Wells, California
Statistical Section (Unaudited)
June 30, 2023

This part of the City of Indian Wells' annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

Contents Page

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

Net Position by Component 140
Changes in Net Position 141
Fund Balances of Governmental Funds 143
Changes in Fund Balances of Governmental Funds 144

Revenue Capacity – These schedules contain information to help the reader assess the City’s most significant local revenue sources, general and Redevelopment property taxes.

Tax Revenues by Source - Governmental Funds 146
Assessed Value and Estimated Actual Value of Taxable Property 147 Assessed Value of Property by Use Code, Citywide 148
Direct and Overlapping Property Tax Rates 149
Principal Property Taxpayers 150
Principal Sales Tax Producers 151
Property Tax Levies and Collections 152
Transient Occupancy Tax Collections 153

Debt Capacity – These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Ratios of Outstanding Debt by Type 154
Ratios of General Bonded Debt Outstanding and Legal Debt Margin 155 Direct and Overlapping Debt 156
Pledged-Revenue Coverage 157

Demographic and Economic Information – These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Demographic and Economic Statistics 158
Principal Employers 159
138

City of Indian Wells, California
Statistical Section (Unaudited)
June 30, 2023

Contents Page

Operating Information – These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

Full-time Equivalent City Employees by Function 160
Operating Indicators by Function 161
Capital Assets Statistics by Function 162

Sources: Unless otherwise noted, the information in these schedules was derived from the City's annual comprehensive financial reports for the relevant year.
139

2023 2022 2021** 2020 2019 2018 2017 2016 2015 2014
Governmental activities:

Net investment in
capital assets 147,924,061$ 145,969,138$ 148,375,228$ 163,856,985$ 167,002,186$ 172,007,625$ 172,494,796$ 175,639,386$ 241,607,740$ 250,043,785$ Restricted for:

Community development 725,787 4,718,908 4,439,261 3,801,007 3,108,085 2,661,415 2,401,909 2,294,829 2,175,822 3,420,280 Housing 15,429,469 13,016,874 15,486,485 12,961,532 13,870,180 14,632,707 12,842,189 13,352,710 13,639,334 14,412,791 Public safety 6,183,630 7,054,610 6,548,304 6,728,419 5,737,133 5,308,643 6,034,523 9,535,112 5,680,112 5,558,075 Public works 2,345,243 2,317,493 2,793,046 2,657,863 2,412,413 2,223,810 2,135,793 2,201,769 2,138,313 1,967,998 Debt service - - - - - - - - - Section 115 Trust - - 937,402 - - - - - - - Pension obligations 5,567,799 11,369,223 - - - - - - - - OPEB obligations 1,798,141 2,301,464 - - - - - - - - Unrestricted 70,023,935 69,606,313 65,899,752 69,738,721 71,786,558 61,884,894 65,150,651 50,054,925 52,294,420 51,276,256 Total governmental activities
net position 249,998,065 256,354,023 244,479,478 259,744,527 263,916,555 258,719,094 261,059,861 253,078,731 317,535,741 326,679,185 Business-type activites:

Net investment in
capital assets** 44,597,589 46,751,387 47,197,377 49,122,479 49,821,298 51,198,409 52,758,255 57,498,601 - - Restricted for:

Pension Obligations 139,371 338,347 - - - - - - - - Unrestricted (2,915,969) (4,547,545) (5,609,097) (5,258,314) (1,809,374) 1,024,501 1,657,668 1,798,085 - - Total business-type activities
net position 41,820,991 42,542,189 41,588,280 43,864,165 48,011,924 52,222,910 54,415,923 59,296,686 - - Primary government:

Net investment in 192,521,650 192,720,525 195,572,605 212,979,464 216,823,484 223,206,034 225,253,051 233,137,987 241,607,740 250,043,785 capital assets
Restricted 24,823,500 27,446,232 29,267,096 26,148,821 25,127,811 24,826,575 23,414,414 27,384,420 23,633,581 25,359,144 Unrestricted 67,107,966 65,058,768 60,290,655 64,480,407 69,977,184 62,909,395 66,808,319 51,853,010 52,294,420 51,276,256 Total primary government
net position 291,819,056$ 298,896,212$ 286,067,758$ 303,608,692$ 311,928,479$ 310,942,004$ 315,475,784$ 312,375,417$ 317,535,741$ 326,679,185$ *As of 7/1/15, two business-type activities were created, Indian Wells Golf Resort and Club Drive Property **As of 7/1/21, GASB 87 was implemented
Fiscal Year
City of Indian Wells
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
140

2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Expenses:

Governmental activities:

General government 15,297,837$ 2,804,408$ 16,765,605$ 8,368,804$ 5,701,156$ 8,102,188$ 7,501,991$ 7,151,865$ 9,338,294$ 8,528,905$ Public safety 13,309,494 9,003,835 9,448,083 9,192,146 9,115,680 9,918,617 7,830,608 7,853,892 7,988,613 7,689,486 Community development 6,782,254 5,479,125 4,918,929 4,586,068 6,117,322 2,867,417 4,331,134 4,502,450 4,058,871 4,114,707 Public works 11,245,752 4,719,058 7,956,690 7,786,633 9,598,922 6,685,611 6,624,416 6,521,569 11,102,625 11,284,095 Golf resort - - - - - - - - 13,564,356 12,945,121 Interest on long-term debt 457,880 463,970 - - - - - - - - Total governmental activities expenses 47,093,217 22,470,396 39,089,307 29,933,651 30,533,080 27,573,833 26,288,149 26,029,776 46,052,759 44,562,314 Business-type activities:

Golf resort 21,970,857 18,815,101 13,451,868 15,504,561 17,315,778 16,386,499 20,011,357 21,006,393 - - Club drive - - - - 7,000 31,781 60,715 65,142 - - Total business-type expenses 21,970,857 18,815,101 13,451,868 15,504,561 17,322,778 16,418,280 20,072,072 21,071,535 - - Total primary government expenses 69,064,074 41,285,497 52,541,175 45,438,212 47,855,858 43,992,113 46,360,221 47,101,311 46,052,759 44,562,314 Program revenues:

Governmental activities:

Charges for services:

General government 107,012 47,687 41,412 58,587 43,100 39,584 35,873 48,263 35,971 46,282 Public safety 604,356 603,773 485,403 525,383 600,091 199,095 134 4,522 8,599 6,883 Community development 1,483,981 1,568,875 817,102 969,257 990,040 1,038,569 1,121,873 968,377 1,003,232 854,755 Public works 23,469 17,203 14,463 9,288 12,124 21,064 22,884 27,412 22,723 28,038 Golf resort - - - - - - - - 13,179,508 12,429,070 Operating grants and contributions:

General government 745,918 759,541 523,214 485,587 478,269 444,372 430,718 456,491 524,526 386,696 Public safety 6,770,475 7,516,568 5,642,553 5,308,307 5,143,462 4,864,606 4,768,453 4,637,918 4,514,697 4,436,574 Community development 21,032 - - - - - 52,738 - 60,559 - Public works 3,719,376 3,158,915 2,890,710 2,760,299 2,705,844 2,505,914 2,643,506 2,364,247 2,319,406 2,362,409 Capital grants and contributions:

General government - - - - - - - - 1,050,000 500,000 Public works 202,766 954,966 119,842 487,500 236,175 215,870 143,993 104,869 775,943 2,352,481 13,678,385 14,627,528 10,534,699 10,604,208 10,209,105 9,329,074 9,220,172 8,612,099 23,495,164 23,403,188 Business-type activities:

Charges for services:

Golf resort 21,188,761 16,202,430 11,178,205 11,340,304 15,108,397 13,738,178 12,838,393 12,918,130 - - Club drive - - - - - 82,142 111,241 108,476 - - Total business-type activities program
21,188,761 16,202,430 11,178,205 11,340,304 15,108,397 13,820,320 12,949,634 13,026,606 - - Total primary government program
34,867,146 30,829,958 21,712,904 21,944,512 25,317,502 23,149,394 22,169,806 21,638,705 23,495,164 23,403,188 Fiscal Year
City of Indian Wells
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
revenue
Total governmental activities program
revenue
revenue
141

2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Net revenues (expenses):

Governmental activities (33,414,832) (7,842,868) (28,554,608) (19,329,443) (20,323,975) (18,244,759) (17,067,977) (17,417,677) (22,557,595) (21,159,126) Business-type activities (782,096) (2,612,671) (2,273,663) (4,164,257) (2,214,381) (2,597,960) (7,122,438) (8,044,929) - - Total net revenues (expenses) (34,196,928) (10,455,539) (30,828,271) (23,493,700) (22,538,356) (20,842,719) (24,190,415) (25,462,606) (22,557,595) (21,159,126) General revenues and other changes in net position:

Governmental activities:

Taxes:

Property taxes 3,945,967 3,721,408 3,554,123 3,303,647 3,398,657 3,255,668 3,115,910 3,039,371 2,915,229 2,820,856 Transient occupancy taxes 12,450,662 10,987,345 4,622,778 4,944,773 8,835,433 7,943,017 7,826,154 7,000,096 6,742,840 6,407,454 Sales taxes 1,766,438 1,539,776 656,060 821,533 1,493,254 1,111,159 1,347,804 1,217,570 1,121,191 1,016,141 Franchise taxes 1,231,605 1,108,065 993,257 995,921 992,865 929,551 941,938 922,074 924,869 886,891 Other taxes 4,090,392 4,988,299 122,955 131,115 3,674,785 3,474,244 3,227,361 2,968,981 2,887,538 2,375,414 Investment income 3,137,278 (1,192,487) 2,479,381 4,275,362 4,336,032 1,861,285 1,791,037 2,392,300 2,212,672 3,297,078 Gain on sale of asset - 404,376.00 - - - - - - - - - - - - - - - - - 16,400,000 Other 481,138 550,703 861,005 685,064 785,799 909,895 659,280 908,638 1,082,274 1,012,035 Transfers - - - - - - 6,139,623 (831,713) - - Total governmental activities 27,103,480 22,107,485 13,289,559 15,157,415 23,516,825 19,484,819 25,049,107 17,617,317 17,886,613 34,215,869 Business-type activities:

Investment income (9,708) (70,543) (2,222) 16,498 8,006 - 1,809 3,095 - - Other 26,000 1,247,051 - - - 404,947 8,379,489 1,850,156 - - Transfers - - - - - - (6,139,623) 831,713 - - Total business-type activities 16,292 1,176,508 (2,222) 16,498 8,006 404,947 2,241,675 2,684,964 - - Total primary government 27,119,772 23,283,993 13,287,337 15,173,913 23,524,831 19,889,766 27,290,782 20,302,281 17,886,613 34,215,869 Changes in net position:

Governmental activities (6,311,352) 14,264,617 (15,265,049) (4,172,028) 3,192,850 1,240,060 7,981,130 199,640 (4,670,982) 13,056,743 Business-type activities (765,804) (1,436,163) (2,275,885) (4,147,759) (2,206,375) (2,193,013) (4,880,763) (5,359,965) - - Total primary government (7,077,156)$ 12,828,454$ (17,540,934)$ (8,319,787)$ 986,475$ (952,953)$ 3,100,367$ (5,160,325)$ (4,670,982)$ 13,056,743$ *As of 7/1/15, two business-type activities were created, Indian Wells Golf Resort and Club Drive Property Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
City of Indian Wells
Extraordinary gain/(loss) on
142

2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
General fund:

Nonspendable:

Prepaid items 111,390$ 41,691$ 15,086$ 51,660$ 7,738$ 1,911$ 24,666$ 5,740$ 950$ 3,715$ Notes and loans 15,256,105 17,497,027 18,878,164 18,917,870 18,945,867 17,739,192 17,739,192 17,889,192 17,889,192 17,889,192 Committed to:

Emergency reserve - - - - - - - - 2,500,000 2,250,000 Unassigned - - - - - 19,397,674 18,859,826 10,727,499 7,442,635 5,841,717 Total general fund 15,367,495$ 17,538,718$ 18,893,250$ 18,969,530$ 18,953,605$ 37,138,777$ 36,623,684$ 28,622,431$ 27,832,777$ 25,984,624$ All other governmental funds
Nonspendable
Inventory - - - - - - - - 728,323 695,998 Prepaid items 663 - - - - - - - 230,059 108,542 Notes 643,562 650,462 - - - - - - - - Restricted for:

Community development 16,155,256 17,735,782 19,925,746 16,762,539 16,978,265 17,294,122 15,244,098 15,647,539 15,815,156 16,414,450 Public safety 6,183,630 7,054,610 6,548,304 6,728,419 5,737,133 5,308,643 6,034,523 6,065,849 5,680,112 5,558,075 Parks and recreation - - - - - - - - - - Public works 2,345,243 2,317,493 2,793,046 2,657,863 2,412,413 2,223,810 2,135,793 2,201,769 2,138,313 1,967,998 Debt service 10,721,626 12,094,086 - - - - - - - - Committed to:

Capital projects 494,155 311,735 5,664,949 5,648,955 5,659,190 144,213 676,363 354,335 22,913,539 23,805,825 Golf Resort - - - - - - - - 1,347,155 - Assigned to:

Capital projects 31,949,774 34,196,650 33,914,872 34,045,927 30,525,572 23,325,122 23,643,770 23,199,044 - - Unassigned 19,522,041 16,242,073 7,150,948 9,346,368 14,785,317 (1,306,134) (1,345,970) (1,387,826) (1,420,514) (1,853,153) Total all other governmental funds 88,015,950$ 90,602,891$ 75,997,865$ 75,190,071$ 76,097,890$ 46,989,776$ 46,388,577$ 74,703,141$ 47,432,143$ 46,697,735$ 1) The City Council implemented the Governmental Accounting Standards Board (GASB) statement no. 54 during fiscal year 2010/11 recognizing new fund balance requirements Fiscal Year
(modified accrual basis of accounting)
Last Ten Fiscal Years
Fund Balances of Governmental Funds
City of Indian Wells
143

2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Revenues:

Taxes 28,165,831$ 26,562,600$ 13,780,199$ 13,474,030$ 21,534,317$ 19,825,390$ 19,067,088$ 17,840,371$ 17,196,257$ 16,031,054$ Licenses and permits 925,135 918,431 499,929 542,715 504,876 465,327 642,162 466,550 479,296 426,382 Intergovernmental 1,864,339 3,673,650 1,224,015 1,467,346 1,246,106 1,098,333 1,024,757 959,741 1,765,403 3,151,753 Contribution from property owners - - - - - - - - 1,050,000 500,000 Charges for services 1,163,202 1,254,217 802,576 951,925 1,085,255 772,337 480,245 503,429 13,705,848 12,857,977 Investment income 748,799 (3,200,198) 314,893 2,316,373 2,492,431 212,021 225,978 727,908 527,212 1,623,137 Fines and forfeitures 130,481 64,890 55,875 67,875 55,224 60,648 58,359 78,595 64,889 80,669 Rental income 2,310,605 2,137,105 1,978,311 1,892,369 1,766,444 1,639,641 1,561,169 1,629,432 1,660,396 1,651,498 Assessments 4,531,983 4,228,752 4,102,421 4,036,690 4,009,522 3,866,031 3,763,303 3,782,451 3,685,524 3,737,258 Development fees 682,477 608,782 135,471 260,616 168,798 149,631 448,419 129,054 139,614 124,851 Other 181,139 211,802 744,391 685,064 785,799 909,895 659,280 908,638 1,082,274 1,012,035 Total revenues 40,703,991 36,460,031 23,638,081 25,695,003 33,648,772 28,999,254 27,930,760 27,026,169 41,356,713 41,196,614 Expenditures
Current:

General government 12,241,965 12,024,340 7,783,032 7,884,804 8,993,847 8,136,619 7,836,296 8,008,297 9,424,603 8,573,662 Public safety 12,793,673 9,822,666 9,256,346 9,108,526 8,780,570 8,488,123 8,047,904 8,151,039 8,036,589 7,685,383 Community development 4,669,205 6,082,975 3,068,540 2,916,391 3,010,110 2,890,706 2,861,354 3,084,249 2,807,307 2,820,027 Public works 6,369,744 6,052,130 5,169,930 5,326,339 4,811,267 4,456,328 4,546,968 4,423,715 4,080,034 4,135,007 Golf resort - - - - - - - - 13,564,356 12,945,121 Bond Issuance Costs - 235,117 - - - - - - - - Capital outlay 8,376,088 4,785,480 1,270,541 1,350,837 3,484,885 3,911,186 1,305,125 559,912 861,263 8,678,100 Debt service:

Principal retirement 380,000 - - - - - - - - - Interest and fiscal charges 586,874 - - - - - - - - - Total expenditures 45,417,549 39,002,708 26,548,389 26,586,897 29,080,679 27,882,962 24,597,647 24,227,212 38,774,152 44,837,300 Excess (deficiency) of revenues
over (under) expenditures (4,713,558) (2,542,677) (2,910,308) (891,894) 4,568,093 1,116,292 3,333,113 2,798,957 2,582,561 (3,640,686) Other financing sources (uses):

Transfers in 10,802,457 8,909,273 154,080 15,530,608 25,325,206 4,206,586 7,932,137 1,429,989 2,462,520 64,112 Transfers out (10,847,063) (8,909,273) (154,080) (15,530,608) (23,320,595) (4,206,586) (2,956,130) (2,261,702) (2,462,520) (140,112) Issuance of bonds - 13,930,000 - - - - - - - - Premium (discount) on bonds - 1,338,171 - - - - - - - - Extraordinary gain/(loss) on dissolution of RDA - - - - - - - - - 16,400,000 Sale of property - 525,000 3,641,822 - 4,351,849 - - - - - Total other financing sources (uses) (44,606) 15,793,171 3,641,822 - 6,356,460 - 4,976,007 (831,713) - 16,324,000 Net change in fund balances (4,758,164)$ 13,250,494$ 731,514$ (891,894)$ 10,924,553$ 1,116,292$ 8,309,120$ 1,967,244$ 2,582,561$ 12,683,314$ Fiscal Year
City of Indian Wells
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
144

2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Debt service as a percentage of
noncapital expenditures 2.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Capital outlay (Recon of Rev & Exp) 4,161,011 4,734,914 (11,576,784) 868,327 (1,681,711) 3,456,064 588,717 (102,981) 695,864 8,627,428 Total governmental expenditures 45,417,549 39,002,708 26,548,389 26,586,897 29,080,679 27,882,962 24,597,647 24,227,212 38,774,152 44,837,300 Less: Principal (380,000) - - - - - - - - - Less: Interest (586,874) - - - - - - - - - 44,450,675 39,002,708 26,548,389 26,586,897 29,080,679 27,882,962 24,597,647 24,227,212 38,774,152 44,837,300 Less: Capital Asset Additions (4,161,011) (4,734,914) 11,576,784 (868,327) 1,681,711 (3,456,064) (588,717) 102,981 (695,864) (8,627,428) Non Capital Expenditures 40,289,664 34,267,794 38,125,173 25,718,570 30,762,390 24,426,898 24,008,930 24,330,193 38,078,288 36,209,872 Total Debt Service Payments 966,874 - - - - - - - - - Debt Service as % of Non Capital Exp. 2.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% City of Indian Wells
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
145

Fiscal
Year
End
Property
Tax Sales
Transient
Occupancy
Emergency
Services Franchise Other Total
2013-14 2,602,881 1,016,141 6,407,454 2,524,298 886,890 2,593,389 16,031,053 2014-15 2,757,592 1,121,191 6,742,840 2,604,590 924,868 3,045,175 17,196,256 2015-16 2,876,532 1,217,570 7,000,096 2,692,279 922,074 3,131,820 17,840,371 2016-17 2,873,141 1,347,804 7,826,154 2,607,921 941,937 3,470,131 19,067,088 2017-18 3,025,593 1,111,159 7,942,995 3,111,773 929,551 3,704,319 19,825,390 2018-19 3,113,540 1,493,254 8,835,433 3,139,323 992,866 3,959,902 21,534,317 2019-20 3,166,437 821,533 4,944,773 3,277,041 995,921 268,326 13,474,031 2020-21 3,039,148 656,060 4,622,778 3,714,412 993,258 754,545 13,780,201 2021-22 4,099,818 1,539,776 10,987,345 4,217,707 1,108,065 5,448,912 27,401,623 2022-23 3,945,967 1,766,438 12,450,662 4,680,767 1,231,605 4,090,393 28,165,832 Percentage change:
2014-2023 51.6% 73.8% 94.3% 85.4% 38.9% 57.7% 75.7%
City of Indian Wells
Tax Revenues by Source - Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-
5 10
15 20
25 30
2013-
14 2014-
15 2015-
16 2016-
17 2017-
18 2018-
19 2019-
20 2020-
21 2021-
22 2022-
23 Millions
Fiscal Year
146

Fiscal Year Taxable Taxable City's
Ended Assessed Assessed Direct Tax
June 30 Secured Unsecured Value Secured Unsecured Value Rate 2013-14 857,895,036 4,330,282 862,225,318 3,863,716,982 28,639,321 3,892,356,303 1.22949 2014-15 963,012,088 8,006,824 971,018,912 4,010,096,483 26,674,312 4,036,770,795 1.23309 2015-16 1,067,731,252 7,803,011 1,075,534,263 4,142,943,142 21,086,098 4,164,029,240 1.23002 2016-17 1,078,783,335 8,645,905 1,087,429,240 4,244,054,809 21,150,335 4,265,205,144 1.20635 2017-18 1,216,459,774 7,719,195 1,224,178,969 4,356,466,470 17,947,116 4,374,413,586 1.21281 2018-19 1,323,102,487 10,855,110 1,333,957,597 4,606,551,347 20,122,839 4,626,674,186 1.21396 2019-20 1,424,021,370 9,989,753 1,434,011,123 4,729,044,820 31,487,665 4,760,532,485 1.21364 2020-21 1,505,059,403 13,164,761 1,518,224,164 4,868,974,853 21,852,265 4,890,827,118 1.21396 2021-22 1,597,949,272 13,725,307 1,611,674,579 5,017,783,630 17,954,729 5,035,738,359 1.22450 2022-23 1,735,214,095 13,447,558 1,748,661,653 5,390,822,776 16,237,638 5,407,060,414 1.22450 (1) Total Direct Tax Rate is represented by TRA 016-000 City (Excl. RDA) Redevelopment Agency
Source: Riverside County Assessor Data, Avenu Insights & Analytics Assessed Value and Estimated Actual Value of Taxable Property City of Indian Wells
Last Ten Fiscal Years
147

Category 2013-14 2014-15* 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Residential 4,121,937,903 4,329,962,569 4,509,106,870 4,636,416,971 4,787,212,021 5,046,143,990 5,225,907,189 5,482,677,084 5,737,097,740 6,182,418,185 Commercial 66,962,561 482,959,313 536,436,321 501,610,126 559,511,479 661,957,523 646,454,076 623,499,659 629,520,507 684,902,466 Vacant 170,302,487 160,186,689 165,131,203 184,811,047 172,148,781 166,625,355 224,972,607 175,159,873 165,270,882 168,952,930 Professional 0 0 0 0 0 0 0 35,928,381 26,455,998 31,596,435 Social 0 0 0 0 0 0 0 0 0 386,666
Agriculture 0 0 0 0 0 0 0 0 9,650 9,732
Institutional 0 0 0 0 0 0 0 375,198 379,085 0
Unknown 362,409,067 0 0 0 0 0 0 0 0 0
Net Secured Value 4,721,612,018 4,973,108,571 5,210,674,394 5,322,838,144 5,518,872,281 5,874,726,868 6,097,333,872 6,317,640,195 6,558,733,862 7,068,266,414 Unsecured 32,969,603 34,681,136 28,889,109 29,796,240 25,666,311 30,977,949 41,477,418 35,017,026 31,680,036 29,685,196 Net Taxable Value 4,754,581,621 5,007,789,707 5,239,563,503 5,352,634,384 5,544,538,592 5,905,704,817 6,138,811,290 6,352,657,221 6,590,413,898 7,097,951,610

Use code categories are based on Riverside County Assessor's data Land Use description data updated from previous year(s) City of Indian Wells
Assessed Value of Property by Use Code, Citywide
Last Ten Fiscal Years
Source: Avenu Insights & Analytics
148

2002-032013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 City Direct Rates:

City Basic Rate # 0.00649751 0.00649751 0.00649751 0.00649751 0.00649751 0.00649751 0.00649751 0.00779246 0.00779246 0.00779246 Agency Basic Rate # 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 Low & Mod 20% Set-aside # 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 Total City Direct Rate # 0.00649751 0.00649751 0.00649751 0.00649751 0.00649751 0.00649751 0.00649751 0.00779246 0.00779246 0.00779246 Overlapping Rates:

General # 0.15716188 0.15716188 0.15716188 0.15716188 0.15716188 0.15716188 0.15716348 0.31458170 0.31458170 0.31458170 Riverside County General & Fire # 0.06556884 0.06556884 0.06556884 0.06556884 0.06556884 0.06556884 0.06556119 0.06556922 0.06556922 0.06556922 Coachella Valley Water District # 0.03055245 0.03055245 0.03055245 0.03055245 0.03055245 0.03055245 0.03055245 0.03055245 0.03055245 0.03055245 Desert Sands Unified School District # 0.40439065 0.40439065 0.40439065 0.40439065 0.40439065 0.40439065 0.40439065 0.40439065 0.40439065 0.40439065 Riverside County Superintendent of Schools # 0.04571713 0.04571713 0.04571713 0.04571713 0.04571713 0.04571713 0.04571713 0.04571713 0.04571713 0.04571713 College of Desert # 0.08403091 0.08403091 0.08403091 0.08403091 0.08403091 0.08403091 0.08403091 0.08403091 0.08403091 0.08403091 Coachella Valley Parks & Recreation District # 0.01321243 0.01321243 0.01321243 0.01321243 0.01321243 0.01321243 0.01321243 0.02312834 0.02312834 0.02312834 CV Mosquito & Vector Control District # 0.01091312 0.01091312 0.01091312 0.01091312 0.01091312 0.01091312 0.01091312 0.01529179 0.01529179 0.01529179 Riverside County Regional Park & Open Space - 0.00387930 0.00387930 0.00387930 0.00387930 0.00387930 0.00387930 0.00387930 0.00475859 0.00475859 0.00475859 Coachella Valley Public Cemetery - 0.00256659 0.00256659 0.00256659 0.00256659 0.00256659 0.00256659 0.00256659 0.00379506 0.00379506 0.00379506 Desert Regional Medical Center - 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 Coachella Valley Resource Conservation # 0.00039170 0.00039170 0.00039170 0.00039170 0.00039170 0.00039170 0.00039170 0.00039170 0.00039170 0.00039170 Education Revenue Augmentation Fund - 0.17511749 0.17511749 0.17511749 0.17511749 0.17511749 0.17511749 0.17512353 0.00000000 0.00000000 0.00000000 TOTAL # 1.00000000 1.00000000 1.00000000 1.00000000 1.00000000 1.00000000 1.00000000 1.00000000 1.00000000 1.00000000 Override Assessments
Coachella Valley Water District # 0.10000000 0.10000000 0.10000000 0.10000000 0.10000000 0.10000000 0.10000000 0.10000000 0.11000000 0.11000000 Desert Community College - 0.01995000 0.02325000 0.02087000 0.02036000 0.04030000 0.03978000 0.03983000 0.03978000 0.03950000 0.03950000 Desert Sands Unified School District # 0.10954000 0.10984000 0.10915000 0.08599000 0.07251000 0.07418000 0.07381000 0.07418000 0.07500000 0.07500000 TOTAL # 0.22949000 0.23309000 0.23002000 0.20635000 0.21281000 0.21396000 0.21364000 0.21396000 0.22450000 0.22450000 TOTAL TAX RATE # 1.22949000 1.23309000 1.23002000 1.20635000 1.21281000 1.21396000 1.21364000 1.21396000 1.22450000 1.22450000 Source: Riverside County Auditor data, Avenu Insights & Analytics Source: 2012-13 and prior, previously published ACFR Report (1.) Total Direct Tax Rate is represented by TRA 016-000 City of Indian Wells
Last Ten Fiscal Years
Direct and Overlapping Property Tax Rates
149

Taxpayer
Taxable Value
($)
Percent of
Total City
Taxable Value
(%)
Taxable Value
($)
Percent of
Total City
Taxable
Value (%)
Garden of Champions 286,502,147 4.04% 113,370,367 2.38% H E Indian Wells 129,237,578 1.82%
BBC Esmeralda 77,382,653 1.09%
Vintage Club 72,105,057 1.02% 26,828,353 0.56% Lennar Homes of Calif Inc 26,886,058 0.38%
Village Shopping Center at Indian Wells 24,656,283 0.35% 15,065,470 0.32% Toscana Country Club Inc 21,999,742 0.31%
PCG & RGG General Partnership 20,477,182 0.29%
Brinson Gary P Trust Dtd 20,158,441 0.28% 9,910,000 0.21% IW Golf Club 19,360,913 0.27%
Eldorado Country Club 18,757,779 0.26% 21,568,341 0.45% Carletti Christopher M 18,118,180 0.26%
Indian Wells Prop 16,320,000 0.23%
Toscana Homes 15,068,340 0.21%
Cook Leo W 14,959,132 0.21% 12,891,348 0.27% Blondie Trust Est 14,889,035 0.21%
47355 Las Cascadas 14,201,021 0.20%
Schmid Inv 14,013,268 0.20% 13,185,314 0.28% Indian Wells Village II 13,804,812 0.19% 11,896,586 0.25% Jonagold Holdings 13,537,902 0.19%
DRW Desert Holdings 13,265,904 0.19%
Redlich Christopher R Jr Revocable Trust Dtd 12,110,922 0.17% Targoff Michael B 10,864,257 0.15%
Modern Dev 10,610,606 0.15%
DMA Inv 10,479,680 0.15%
Grand Champions 58,552,001 1.23%
Toscana Land 56,758,371 1.19%
Felcor Esmeralda 47,600,000 1.00%
LH Indian Wells Holding 19,798,732 0.42%
IWCC Acquisition Corp 13,940,255 0.29%
Reserve Club 13,076,414 0.28%
Standard Pacific Corp 12,459,004 0.26%
Marion Anne W 12,355,000 0.26%
Gilleland Richard A 12,273,692 0.26%
Ryan Oil Co 11,369,414 0.24%
Johnson Ralph William 10,000,000 0.21%
Neptune 9,575,000 0.20%
Argyros George L 9,558,651 0.20%
Gilliland Gloria J 9,418,334 0.20%
Macmillan Donna J 8,790,974 0.18%
Soret Ltd. 8,764,521 0.18%
Walters William T 8,764,092 0.18%
Total Top 25 Taxpayers 909,766,892 12.82% 547,770,234 11.52% Total Taxable Value 7,097,951,610 100.00% 4,754,581,621 100.00% Source: County Assessor data, Avenu Insights & Analytics City of Indian Wells
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2022-23 2013-14
150

Taxpayer Business Type Taxpayer Business Type
Audio Visual Services Group Light Industry American Audio Visual Center Miscellaneous Retail Christies Miscellaneous Other Cafe Italia Restaurants
CVS Pharmacy Drug Stores Creative Pipe Misc. Vehicle Sales Don Diego Restaurante Restaurants CVS Pharmacy Drug Stores Donna Diamond Interior Design Miscellaneous Retail Desert Horizons Country Club Restaurants Eldorado Country Club Miscellaneous Retail Don Diegos Restaurants Eureka! Burger Restaurants Donna Diamond Designer Miscellaneous Retail Hyatt Hotel Restaurants Eldorado Country Club Restaurants Hyatt Regency Indian Wells Restaurants Eureka! Restaurants Indian Wells Country Club & Hotel Miscellaneous Retail Hotel Indian Wells Restaurants Indian Wells Golf Resort Miscellaneous Retail Hyatt Grand Champions Resort Restaurants Indian Wells Tennis Garden Miscellaneous Retail Indian Wells Country Club Restaurants IW Coffee Food Markets Indian Wells Golf Resort Restaurants Karen Harlow For The Home Miscellaneous Retail Indian Wells Tennis Garden Recreation Products Levy Premium Foodservice Restaurants Karen Harlow For The Home Furniture/Appliance Miramonte Resort & Spa Restaurants Miramonte Resort & Spa Restaurants Monique Stolle-Lemon Miscellaneous Retail Ralph's Grocery Company Food Markets Renaissance Esmeralda Resort & Spa Restaurants Renaissance Esmeralda Resort Restaurants Reserve Club Miscellaneous Retail Reserve Club Restaurants The Nest Restaurant & Piano Bar Restaurants Tennis Warehouse Recreation Products The Sands Hotel & Spa Restaurants Terry Beardsley Golf Shop Recreation Products The Vintage Club Miscellaneous Retail The Nest Restaurants Toscana Country Club Miscellaneous Retail Toscana Country Club Restaurants Vicky's of Santa Fe Restaurants Vicky's of Santa Fe Restaurants Vue Grille & Bar Restaurants Vintage Club Restaurants
Source: Avenu Insights & Analytics
City of Indian Wells
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
2022-23 2013-14
151

City of Indian Wells
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2014 2,184,854 2,583,498 118.25% 19,383 2,602,881 119.13% 2015 2,330,206 2,665,988 114.41% 91,604 2,757,592 118.34% 2016 2,329,290 2,807,108 120.51% 69,424 2,876,532 123.49% 2017 2,420,606 2,802,166 115.76% 70,974 2,873,141 118.70% 2018 2,494,755 2,965,260 118.86% 60,334 3,025,594 121.28% 2019* 2,555,040 3,104,015 121.49% 9,525 3,113,540 121.86% 2020* 2,556,217 3,153,150 123.35% 13,287 3,166,437 123.87% 2021 2,704,296 3,039,148 112.38% - 3,039,148 112.38% 2022 2,741,036 4,056,589 147.99% 43,229 4,099,818 149.57% 2023 2,824,394 3,906,790 138.32% 39,177 3,945,967 139.71% Fiscal Year of Levy Total Collections to Date
Collected within the
NOTE:

The amounts presented include City property taxes and Redevelopment Agency tax increment. On February 1, 2012, all redevelopment agencies in California were dissolved.

Fiscal year ending June 30, 2013 is reflective of the RDA dissolution resulting in a decrease in property tax collections.
*FY2019 & FY2020 revised per Riverside County Reporting Data 152

2013-14 2014-15* 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Resort Hotels 6,374,616 6,625,288 6,719,057 7,626,203 7,716,357 8,635,851 4,811,599 4,451,687 10,699,937 12,165,268 Short-term Rentals 32,838 117,552 281,039 229,213 226,660 199,582 133,174 171,091 287,408 285,394 Total 6,407,454 6,742,840 7,000,096 7,855,416 7,943,017 8,835,433 4,944,773 4,622,778 10,987,345 12,450,662 Transient Occupany Tax Rate in effect 11.25% 11.25% 11.25% 11.25% 11.25% 12.25% 12.25% 12.25% 12.25% 12.25% a. Specific revenue detail by operator is unavailable due to confidentiality. b. Voter approved 1% rate increase; effective January 1, 2019 City of Indian Wells
Transient Occupancy Tax Collections
Last Ten Fiscal Years
Source: Published ACFR Reports
153

Fiscal Percentage
Year Tax Allocation Notes Lease Revenue of Personal Per End Bonds Payable Bonds Total Income Capita
2014 - 1 - - - 0.00% - 2015 - 1 - - - 0.00% - 2016 - 1 - - - 0.00% - 2017 - 1 - - - 0.00% - 2018 - 1 - - - 0.00% - 2019 - 1 - - - 0.00% - 2020 - 1 - - - 0.00% - 2021 - 1 - - - 0.00% - 2022 - 1 - 15,246,052.00 15,246,052 0.00279% 125,401 2023 - 1 - 14,799,696.00 14,799,696 0.00248% 146,267 (1) Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.

Please see note 18 to the financial statements. During fiscal year 2011/12, the State of California took action to eliminate redevelopment. The remaining outstanding Redevelopment Agency Tax Allocation Bonds were transferred to a newly formed Successor Agency private-purpose trust.

City of Indian Wells
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
154

Outstanding Less: Total Net
Fiscal Tax % of Amounts Set Debt Legal Debt
Year Allocation Assessed Per Aside To Applicable To Legal Debt Legal Debt Margin as a End Bonds Value 1
Capita Repay Debt Debt Limit Limit Margin % of Limit
2014 - 0.0% - - - 713,187 713,187 100.0% 2015 - 0.0% - - - 754,736 754,736 100.0% 2016 - 0.0% - - - 781,696 781,696 100.0% 2017 - 0.0% - - - 805,313 805,313 100.0% 2018 - 0.0% - - - 833,007 833,007 100.0% 2019 - 0.0% - - - 887,084 887,084 100.0% 2020 - 0.0% - - - 922,223 922,223 100.0% 2021 - 0.0% - - - 954,148 954,148 100.0% 2022 - 0.0% - - - 989,800 989,800 100.0% 2023 - 0.0% - - - 1,062,939 1,062,939 100.0% Legal Debt Margin Calculation for Fiscal Year 2023:

FY 2022/23
Assessed Value (From Assessor's net 02-2441) 7,086,257,275$ Legal Debt limit (15% of total assessed value) 1,062,938,591 General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none).

All bonded debt is managed through the Agency's Debt Service Fund. Annual receipt of Tax Increment is reserved to pay annual debt service.
1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

City of Indian Wells
Ratio of General Bonded Debt Outstanding and Legal Debt Margin Last Ten Fiscal Years
(In Thousands, except Per Capita)
155

City of Indian Wells
Direct and Overlapping Debt
2022-23 Assessed Valuation: 7,104,277,352$
Total Debt % City Share of
6/30/2023 Applicable (1) Debt 6/30/23
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:

Desert Community College District 486,615,000$ 7.019% 34,155,507$ Desert Sands Unified School District 365,405,000 14.605 53,367,400 Desert Sands Unified School District Community Facilities District No. 1 445,000 11.088 49,342 City of Indian Wells - 100 -
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 87,572,249$ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Riverside County General Fund Obligations 686,776,829$ 1.962% 1 13,474,561$ Riverside County Pension Obligation Bonds 748,540,000 1.962 14,686,355 Desert Sands Unified School District Certificates of Participation 13,785,000 14.605 2,013,299 City of Indian Wells Lease Revenue Bonds 13,550,000 100.000 13,550,000 Desert Recreation District General Fund Obligations 1,389,522 11.419 158,670 TOTAL GROSS OVERLAPPING GENERAL FUND DEBT 43,882,885
OVERLAPPING TAX INCREMENT DEBT: 197,785,000 0.182-100% 54,077,025$ TOTAL DIRECT DEBT 13,550,000$
TOTAL OVERLAPPING DEBT 171,982,159$
COMBINED TOTAL DEBT 185,532,159$ (2)
June 30, 2023
Source: Avenu Insights & Analytics, California Municipal Statistics, Inc. (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue bonds and non-bonded capital lease obligations.

Ratios to 2022-23 Assessed Valuation:

Direct Debt ($13,550,000) 0.19%
Total Direct and Overlapping Tax and Assessment Debt 1.23% Combined Total Debt 2.61%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($5,013,742,012):

Total Overlapping Tax Increment Debt 1.08%
156

Fiscal Year
Ended Tax
June 30 Increment Principal Interest Coverage
2014 - - - - 2015 - - - - 2016 - - - - 2017 - - - - 2018 - - - - 2019 - - - - 2020 - - - - 2021 - - - - 2022 - - - - 2023 - - - - Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.

Tax Allocation Bonds
Debt Service
City of Indian Wells
Pledged-Revenue Coverage
Last Ten Fiscal Years
157

Fiscal Year
Population
(1) Personal Income
Per Capita
Personal
Income (2)
Median
Age
Public School
Enrollment
(3)
City
Unemployment
Rate (%) (4)
2013-14 5,137 474,294,073 92,329 68.3 29,156 2.8%
2014-15 5,194 469,484,673 90,390 68.5 28,999 4.4%
2015-16 5,412 447,589,123 82,703 68.9 28,719 4.9%
2016-17 5,450 472,424,421 86,683 68.2 28,958 4.3%
2017-18 5,574 513,911,206 92,198 68.5 28,708 3.2%
2018-19 5,445 529,521,295 97,249 67.8 28,610 2.0%
2019-20 5,403 546,486,273 101,145 67.9 27,963 13.4%
2020-21 5,428 592,602,660 109,175 67.9 26,982 5.6%
2021-22 4,762 597,158,324 125,401 67.2 26,698 1.8%
2022-23 4,774 598,280,138 146,267 67.4 26,379 3.3%

1.) Population Projections are provided by the California Department of Finance Projections.

2.) Income Data is provided by the U.S. Census Bureau.

3.) Student Enrollment reflects the total number of students enrolled in the Desert Sands Unified School District. Any other school districts within the City are not accounted for in this statistic.

4.) Unemployment Data are provided by the EDD's Bureau of Labor Statistics Department.

City of Indian Wells
Demographic and Economic Statistics
Last Ten Fiscal Years
Source: Avenu Insights & Analytics
158

Business Name
Number of
Employees
Percent of
Total
Employment
(%)
Number of
Employees
Percent of
Total
Employment
(%)
Hyatt Regency Resort & Spa 460 27.06% 465 25.83%
Renaissance Esmeralda Resort 424 24.94% 499 27.72%
Toscana Country Club 299 17.59% 172 9.56%
Indian Wells Golf Resort (1) 198 11.65% 233 12.94%
Miramonte Resort and Spa 160 9.41% 207 11.50%
El Dorado Country Club (1) 135 7.94% 206 11.44%
Desert Horizons Country Club* (1) 123 7.24% 84 4.67%
Indian Wells Country Club 68 4.00% 128 7.11%
Indian Wells Resort Hotel 66 3.88% 79 4.39%
Gerald Ford Elementary School 65 3.82% 0.00%
Merrill Lynch Wealth Management 50 2.78%
Total Top Employers 1,998 117.53% 2,123 117.94%
Total City Employment (2) 1,700 1,800
Source: 2014, previously published ACFR
City of Indian Wells
Principal Employers
Last Fiscal Year and Nine Years ago
2022-23 2013-14
Source: Avenu Insights & Analytics
Results based on direct correspondence with city’s local businesses. * No response from business, prior year count applied.
(1) Includes Seasonal Employees
(2) Total City Labor Force provided by EDD Labor Force Data. 159

Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 City Manager/Clerk 4.75 4.52 4.48 4.48 5.05 5.05 5.75 5.85 4.30 4.25 Economic Development - - - - - - - - - 0.35 Advertising/Marketing 2.00 1.97 1.97 1.97 - - - 0.95 0.95 1.05 Community Services - - - - 1.95 1.95 1.40 0.55 0.55 0.35 Risk Management 0.125 0.150 0.150 0.15 0.30 0.30 0.30 0.30 0.30 0.30 Personnel 0.125 0.450 0.450 0.45 0.55 0.55 0.45 0.45 0.40 0.35 City Attorney 0.25 0.05 0.09 0.09 0.20 0.20 0.20 0.10 0.10 0.25 Community Development 6.50 6.27 6.27 6.77 5.45 5.45 6.35 5.45 6.35 7.35 Finance Department 6.00 5.47 5.33 5.33 4.41 4.41 3.42 3.19 2.94 4.45 Public Safety 1.25 1.60 1.60 1.10 1.10 1.10 1.15 1.50 1.50 1.10 Public Works 8.00 7.53 7.44 7.44 7.44 7.51 8.47 8.63 9.61 10.15 Housing Authority - 0.99 0.99 0.99 1.64 1.64 1.72 2.24 3.49 2.65 Golf Resort - - 0.18 0.18 0.84 0.84 0.79 0.79 0.51 0.40 Club Drive - - 0.05 0.05 0.07 - - - - - Total 29.00 29.00 29.00 29.00 29.00 29.00 30.00 30.00 31.00 33.00 Source: City of Indian Wells Budget
City implemented program budgeting commencing with the 2017-2018 fiscal year City of Indian Wells
Full-time Equivalent City Government Employees
by Function
Last Ten Fiscal Years
160

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
Police
Violent Crime - 3 6 6 2 8 8 14 8 8 Thefts 97 87 91 96 89 101 101 67 108 90 Burglaries 39 29 45 39 34 49 49 19 35 29 Traffic Collisions 125 136 104 116 98 101 102 108 118 129 Traffic Citations 1,251 971 1,101 1,248 1,231 853 393 949 1,011 1,417 Fire
Medical Aid Calls 659 751 794 818 934 951 1,135 766 918 980 Public Service Assists 90 102 76 79 69 59 65 56 69 93 Structure Fires 4 4 3 1 5 2 2 - 2 1 Vegetation Fires - - - 2 2 - - - 3 - Building Activity
Permits Issued 914 845 887 774 764 758 722 751 682 1,167 Inspections Performed 4,927 5,438 4,607 3,319 3,686 3,841 4,209 3,576 4,751 6,044 New Dwelling Units 33 37 32 33 39 46 61 38 85 45 Public Works
Lot Line Adjustments 3 4 2 4 - 2 6 8 3 1 Parcel Mergers 3 5 4 1 3 2 1 1 1 1 Encroachment Permits 84 59 70 82 71 86 82 56 66 86 Tract Maps - 1 - - - 2 - - 2 4 Golf Resort
Golf rounds played 81,696 78,829 77,613 74,358 74,828 74,589 56,402 64,968 76,500 78,522 Administration
City Council Meetings 20 18 15 8 10 9 21 20 27 33 Public Hearings 23 18 14 15 11 9 18 17 16 33 Adopted Resolutions 53 49 42 49 41 39 50 43 39 12 City of Indian Wells
Operating Indicators
by Functions
Last Ten Fiscal Years
Fiscal Year
161

Units of
Measure
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
Public safety
Police Sub-Stations Buildings 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Fire Stations Buildings 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Highways, Streets, Bridges, & Infrastructure
Pavement (Roadway) Centerline Miles 25.80 25.80 25.80 25.80 25.80 25.80 25.80 25.80 25.80 25.80 Sidewalks Miles 12.70 12.70 12.70 12.70 12.70 12.70 12.70 12.70 12.70 12.70 Bridges Each 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 Traffic Signals Each 15.25 15.25 15.25 15.25 15.25 15.25 15.25 15.25 15.25 15.25 Traffic Signals equipped with Red Light Runner Camera Each - - - - - - - - - - Streetlights (not included with traffic signals) Each 19.00 19.00 19.00 19.00 19.00 19.00 19.00 19.00 19.00 19.00 Sanitary Sewer Lift Stations (CVWD) Each 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Parks and recreation
Parks Each 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 18-Hole Public Golf Courses Each 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Golf Course Clubhouse Each 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 City Vehicles
City-Owned Fleet Motor Vehicles Each 10.00 10.00 10.00 11.00 11.00 11.00 11.00 11.00 12.00 12.00 City-Owned Ambulances Each 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Affordable Housing
Senior Affordable Housing Complexes Each 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Senior Affordable Housing Units Each 218.00 218.00 218.00 218.00 218.00 218.00 218.00 218.00 218.00 218.00 City of Indian Wells
Capital Asset Statistics
by Function
Last Ten Fiscal Years
162

INDEPENDENT ACCOUNTANT’S REPORT
Kevin McCarthy, Finance Director
City of Indian Wells
Indian Wells, California
We have performed the procedures enumerated below, in reviewing the County of Riverside’s (“County”) compliance with the Agreement for Law Enforcement Services (“Agreement”) with respect to the services performed by the County as outlined in the Agreement for the fiscal year ending June 30, 2023.

The City of Indian Wells (“City”) has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating compliance by the County for the period July 1, 2022 through June 30, 2023. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures performed, and the results of those procedures, are as follows:

1. We obtained an understanding of the Agreement for Law Enforcement Services between the City of Indian Wells and the County of Riverside, dated July 1, 2022.

Results: No exceptions were noted as a result of our procedures.

2. We obtained the hourly rates for Sheriff’s Department personnel, vehicle mileage rates, facility use rates, RMS transaction fees and CAL-ID fees established by the County Board of Supervisors for the fiscal year ended June 30, 2023.

Results: We obtained the hourly rates for both fiscal years ending June 30, 2022 and June 30, 2023. Invoices for billing periods 1-10 were billed at rates from fiscal year 2022, while the new rates were applied to the remaining billing periods 11-13. At the end of the fiscal year, a reconciling invoice of $67,073 was sent to the City to adjust the previous invoices to reflect the new rates.

Section 7.2 of the Agreement states that “the newly approved rates will take effect on the same date that the County starts incurring costs for providing the services.” However, the Agreement does not explicitly mention retroactively adjusting invoices that were billed at the previous rate. We noted the fiscal year ending June 30, 2023 rates were not approved by the County until May 2, 2023.

3. We obtained the monthly invoices from the County and performed the following:
a. Recalculated the mathematical accuracy of the invoices. b. Compared the personnel rates to the County Board of Supervisors rate schedule.

ATTACHMENT #2

Law Enforcement Services
Page Two
c. Determine if additional charges are allowable and consistent with the Agreement.

Results: We obtained all 13 invoices billed to the City during the fiscal year totaling $4,968,079 and noted the following:
a. All invoices were recalculated without exception.
b. Personnel rates charged agreed to the rates approved by the Board of Supervisors.
c. No additional charges were noted. As such, this procedure is not applicable.

4. We summarized the criminal justice administrative fees charged for the fiscal year ended June 30, 2023. We recalculated the fees and obtained documentation supporting the number of arrests.

Results: We inquired with the County regarding any billed justice administrative fees, however the County stated that they have not been charging such fees to the City for several years. As such, this procedure was not performed.

5. We summarized the facility rate charges for the fiscal year ended June 30, 2023. We obtained the calculation of the facility rate charges and verified the accuracy of the total facility costs and number of positions in accordance with Section 7.3 of the Agreement.

Results: We obtained the facility billing invoice for the fiscal year totaling $99,447 from the County. The billing methodology for each facility is determined based on estimated usage, which is calculated using both utilized and total square footage. We verified that the amounts billed were based on actual costs incurred by the County.

Total facility cost is divided by number of filled positions to obtain cost per position.

There are a total of 21.01 positions designated for the City consisting of 13.92 filled sworn positions and 7.09 filled classified positions. The summarized facility rate charges are as follows:

Facility
Cost per
Position
Positions
Chargeable
to Contract Cost
Palm Desert Station 4,048.61$ 21.01 85,061.30
Dispatch 478.68 13.92 6,663.23
Professional Standards
Bureau (Admin) 37.54 21.01 788.72
Accounting & Finance 45.49 21.01 955.74
Information Services Bureau 122.07 13.92 1,699.21 Personnel 74.02 21.01 1,555.16
Technical Services Bureau 18.72 21.01 393.31 Major Crimes Bureau 151.44 13.92 2,108.04
Grants 10.59 21.01 222.50
99,447.21$

Law Enforcement Services
Page Three

6. We selected three months of County invoices and performed the following:
a. We compared the titles and number of positions charged to the positions listed in Attachment A of the Agreement.
b. We obtained the payroll register for the three selected months and compared the hours per the payroll register, for each County employee, to the hours billed to the City.
c. We summarized the total overtime hours billed to the City as a percentage of regular hours for informational purposes.
d. We obtained an understanding of extra charges, if any, and inquired with City staff regarding knowledge of the activity resulting in the extra charges.

Results: We obtained detailed payroll registers for billing periods 2, 6, and 8 and observed the following:
a. The titles and number of positions charged in the invoices agreed to the level of service indicated for dedicated and nondedicated positions in Attachment A. b. The hours recorded in each payroll register agreed to the hours billed to the City for each County employee.
c. We calculated the total overtime hours billed to the City to be 1.68% of all hours billed to the City. Total hours were 30,069, including overtime hours of 506.
d. We did not identify any extra charges billed to the City per our review of the invoices.

7. For a sample of the County employees in the previous procedure, we:
a. Compared the payroll register to the employee’s timesheet and personnel action form.
b. Obtained information about the employee’s benefit elections. c. Extrapolated the annual payroll cost to the County (including pension, medical benefits, and taxes). We compared the County’s cost to the County Board of Supervisors rate schedule for the position for informational purposes.

Results: The County indicated that the payroll charges are not tied to specific personnel, but instead based on an annual calculation of average cost per position.

We received approval from the City to modify our procedure to summarize the methodology of the calculation and perform limited testing instead of performing employee timesheet and personnel testing.

We noted the County’s calculation of average cost per productive hour per position is derived from the average salary and benefit elections for each position. Average salary represents the per-title departmental cost calculated from each filled position's actual fiscal year costs. This includes estimated merit raises, MOU adjustments, and benefit percentages provided by the County.
“Other compensation” includes bilingual pay differentials, overtime/shift differentials, flexible and compensatory time off, standby pay, uniform, holiday pay, and education incentives.

Law Enforcement Services
Page Four
“Supplies and services” accounts for clothing and gear, communication devices, IT and Technology costs, insurance (liability, property), maintenance costs, professional services (legal, photography, etc.), equipment and rentals, law enforcement equipment, media/publications, and payroll services.

The sum of salary and benefits, other compensation, and supplies and services is then divided by the total productive patrol hours. Total productive hours are calculated by multiplying the number of included positions by either 80 or 84-hours per pay period (1,787 or 1,891 total productive hours per year). The resulting ratio is the cost per productive hour for each rate component.

We selected the Patrol Officers productive cost per hour of $114.59 and recalculated the cost per productive patrol hour without exception. For this position, the amount billed to the City is $209.35. The additional $94.76 cost per hour includes the sworn support personnel, classified support personnel, and administrative personnel costs assigned to the Patrol Officers. The largest component ($56.37/hour for sworn support personnel) is calculated using average salaries of Lieutenants, Sergeants, and Investigators from 13 patrol stations. Per inquiry, the County explained that the Lieutenants, Sergeants, and Investigators are the supervisors and managers of the Patrol Officers, so a portion of their salaries are allocated to the Patrol Officers.

Because the productive cost per hour for each position includes allocated costs from other positions, it is unclear whether or not a County employee could be more than 100% funded.

8. We calculated the total patrol service hours billed on the monthly invoices for the fiscal year ending June 30, 2023, and compared the total to the level of service annual productive hours in Attachment A of the Agreement.

Results: Total hours per the invoices billed to the City is presented below. Positive difference indicates the actual invoiced hours exceeded their service level commitment.

Total Hours Service Level
from Invoices per Agreement Difference
Sheriff's Patrol Officer 13,368.43 13,188.00 180.43 COP Deputy 1,910.16 1,884.00 26.16
Burglary Suppression Team 2,080.63 1,884.00 196.63 Sheriff's Investigator 37.50 - 37.50 CHU Investigator - - -
Lieutenant 2,090.00 1,884.00 206.00
Motor Team 1,987.94 1,884.00 103.94
Forensic Technician II 2,042.00 1,884.00 158.00 Community Services Officer II 6,406.81 7,536.00 (1,129.19) Crime Analyst 145.60 385.47 (239.87)
30,069.07 30,529.47 (460.40)

Law Enforcement Services
Page Five

9. For nondedicated and dedicated positions identified in Attachment A of the Agreement, we summarized the total hours billed on the monthly invoices for the fiscal year ending June 30, 2023.

Results: The total hours billed for both nondedicated and dedicated positions as follows:

There is no service level for these positions identified in the Agreement.

10.We compared the quarterly statistical data provided by the County related to activities in the City to the total hours billed during those quarters for informational purposes.

Results: The following data was obtained from the quarterly Riverside Sheriff presentations to City Council for the fiscal year ended June 30, 2023:

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the County’s accounting records.

Accordingly, we do not express such an opinion or conclusion.

Non-Dedicated:

COP Deputy 1,910
Burglary Suppression Team 2,081
Total Non-Dedicated 3,991
Dedicated:

Lieutenant 2,090
Motor Team 1,988
Forensic Technician II 2,042
Community Services Officer II 6,407
Crime Analyst 146
Total Dedicated 12,672
Calls for service 3,032
Reports written 462
Total arrests 113
Area checks conducted 7,497
Traffic citations 1,876

Law Enforcement Services
Page Six
Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the County and the City and to meet our other ethical responsibilities in accordance with the relevant ethical requirement related to our agreed- upon procedures engagement.

This report is intended solely for the information and use of management of the City and the County and is not intended to be and should not be used by anyone other than those specified parties.

Irvine, California
October 20, 2023

INDEPENDENT ACCOUNTANT’S REPORT
Kevin McCarthy, Finance Director
City of Indian Wells
Indian Wells, California
We have performed the procedures enumerated below, in reviewing Vintage Associates, Inc.’s (“Contractor”) compliance with the Agreement for Citywide Landscaping Maintenance (“Agreement”) and the City of Indian Wells (“City”) with respect to the services performed by the Contractor as outlined in the Agreement for the fiscal year ending June 30, 2023.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating compliance by the Contractor for the period July 1, 2022 through June 30, 2023. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures performed, and the results of those procedures, are as follows:

1. We obtained an understanding of the Agreement and subsequent Amendments to the Agreement.

Results: We obtained the City of Indian Wells Agreement for Citywide Landscape Maintenance Services Agreement dated June 9, 2020 and Amendment No. 1 to the Citywide Landscape Maintenance Services Agreement dated October 21, 2021. No exceptions were noted as a result of our procedures.

2. We verified that the Contractor is in good standing with the Attorney General of the Sate of California, has a current landscape contractors (C-27) license with Contractors State License Board, and has a current active business license with the City.

Results: We confirmed the Contractor is in good standing with the Attorney General and holds an active C-27 license. In addition, the City provided us with an active business license certificate of operation. No exceptions were noted as a result of our procedures.

3. We obtained evidence of insurance as of December 31, 2022, including general liability, automobile liability, worker’s compensation and employer’s liability. We verified the following:
a. The insurance levels met the requirements of the Agreement b. The insurers had a current AM Best rating no less than A:VIII c. If subcontractors were used during the fiscal year ended June 30, 2023, the subcontractors met the insurance requirements of the Agreement.

Results: We acquired certificates of insurance from the Contractor and can confirm the following:
a. All insurance policies satisfy the minimum limits specified in the Agreement.

ATTACHMENT #3

b. The Contractor holds insurance from three distinct companies, each with AM Best Ratings of A+/A++/A+. All insurers belong to the Class XV financial size category.
c. No subcontractors were engaged in services related to the Agreement during the fiscal year. As such, no further testing was performed.

No exceptions were noted as a result of our procedures.

4. We obtained evidence of the Contractor’s electronic verification of work authorization in accordance with section 3.2.10.1 of the Agreement. I f the Contractor used subcontractors, we obtained evidence of the subcontractor’s electronic verification.

Results: We inquired about the Contractor's participation in an electronic work authorization program. The Contractor confirmed they comply with this requirement through USCIS Form I-9, which verifies the employee’s right to work in the United States. We acquired a listing of 63 employees who provided services related to the Agreement during the fiscal year, from which we selected a sample of 15 and requested copies of their I-9 forms. We examined the provided documentation to ensure that each employee possessed valid work authorization without exception.

Contractor stated that no subcontractors were engaged in services related to the Agreement during the fiscal year.

Upon performing procedure 7 related to extra work billed to the City, we identified 7 additional employees that were not part of the original listing of 63 employees provided to us. The contractor explained that the original listing of 63 employees was “only our base contract employees”. We requested and examined I-9 forms for the additional 7 employees without exception.

5. We requested a schedule of costs and expenses incurred under the Agreement.

Results: Section 3.2.14 of the Agreement requires the “contractor shall maintain complete and accurate records with respect to all costs and expense incurred under this Agreement”. We obtained a schedule of costs and expenses incurred from the Contractor for the period July 1, 2022 through May 31, 2023 totaling $63,850, which included $33,107 of labor. Although some labor charges were included in the schedule, it appears that the schedule does not include all labor costs incurred nor does it include other known expenses such as insurance.

The Contractor is not in compliance with section 3.2.14 of the Agreement.

6. We obtained the monthly invoices submitted to the City by the Contractor for the fiscal year ended June 30, 2023. We performed the following procedures:
a. We recalculated the invoices to verify mathematical accuracy. b. We compared the work completed to Exhibit C of the Agreement to determine if all facilities were included in the work completed during the fiscal year. c. We compared the amount billed by the facility to Exhibit C of the Agreement.

Results: We obtained 12 invoices billed to City during the fiscal year totaling $737,712 and noted the following:
a. All invoices were recalculated without exception.

b. The work completed in each invoice indicated that the Contractor fulfilled the minimum maintenance obligation for each facility listed in Exhibit C of the Agreement.
c. The total amount billed for each facility did not exceed the lump sum yearly cost per facility. In aggregate, the total amounts billed during the fiscal year did not exceed the total annual compensation specified in Exhibit C.

No exceptions were noted as a result of our procedures.

7. We identified and summarized any extra work billed to the City during the fiscal year ended June 30, 2023.
a. We obtained evidence of written authorization from the Public Works Director to perform extra work.
b. We compared the amount billed for the extra work to the terms and amounts authorized.

Results: The City paid $195,210 for extra work billed for the fiscal year ended June 30, 2023. We summarized the charges for the extra work billed as follows:

Task Amount Per Number Total Amount
Irrigation/planning 45 Hour 3,408 $ 153,360 Acacia tree removal 750 Tree 3 2,250 African Sumac tree removal 400 Tree 1 400 African Sumac tree removal 500 Tree 3 1,500 African Sumac tree removal 600 Tree 1 600 African Sumac branch removal 300 Tree 1 300 CA Pepper tree removal 350 Tree 1 350 CA Pepper tree removal 500 Tree 2 1,000 Carolina Cherry tree removal 450 Tree 1 450 Small Date Palm tree removal 300 Tree 4 1,200 Date Palm tree removal 500 Tree 2 1,000 Date Palm tree removal 800 Tree 4 3,200 Date Palm tree removal 850 Tree 1 850 Date Palm tree removal 900 Tree 3 2,700 Large Date Palm tree removal 1,100 Tree 6 6,600 Oak tree removal 220 Tree 8 1,760 Pine tree removal 700 Tree 2 1,400 Robusta Palm tree removal 500 Tree 1 500 Tipuana tree removal 450 Tree 8 3,600 Tipuana tree removal 600 Tree 2 1,200 Pruning 95 Tree 10 950
Stump grinding 100 Stump 12 1,200 Crane rental 3,350 Crane 1 3,350
Miles Ave tree replacement 4,155 unknown 1 4,155 Miles Ave tree replacement 1,335 unknown 1 1,335 Total $ 195,210

Per the Agreement, “Contractor shall not perform, nor be compensated for, extra work without written authorization from City’s representative”. Although we were provided with the City’s approval of the extra work, the approval almost always signed after the work had been performed, which is in violation of the terms of the Agreement.

The rates for extra work are not defined in the Agreement. W e noted multiple examples where different rates were charged for what appears to be the same task.

For example, while some invoices identified small Date Palm tree removal at $300 per tree, medium Date Palm tree removal at $800 per tree, and large Date Palm tree removal at $1,100 a tree, it is unclear why other Date Palm removals during the fiscal year would be charged at $500, $850 or $900. There appears to be inconsistency in the amounts charged for extra work.

The largest extra work charges were for labor for “irrigation/planning”. The monthly charges for labor ranged from $15,480 to $21,870 covering a team of 3 three employees, 8 hours a day, for approximately 20 days each month. The extra work is charged at $45/hr. However, the amount paid to the employees ranged from $16/hr to $20/hr. It is unclear why irrigation/planning is considered extra work when the Agreement covers “maintenance of City landscaping” and specifies that extra work would be for projects “by which the parties did not reasonably anticipate would be necessary at the execution of this Agreement”.

Additionally, we requested payroll registers and timesheets supporting the extra billing for the months of January 2023 and April 2023. For the month of January 2023, out of 439 hours billed, 151.67 were not supported by employee timesheets resulting in overbilling of $6,825. In April 2023, out of 460 hours billed, 28.58 were not supported by employee timesheets resulting in overbilling of $1,286.25. The Contractor explained “Unfortunately we were not accurate with the employee names that worked on site for a few days”.

Section 3.3.3 allows for reimbursement of expenses. On the October 17, 2022 extra work invoice, the Contractor billed the City $3,350 for crane rental. Per review of expenses incurred by the Contractor, the Contractor paid $2,920 to a company which comprised of $1,200 for crane rental with an operator and $1,720 for labor associated with the removal of two Date Palms. The Contractor verified that the expenses were billed to the City at a markup. However, the Agreement only allows for reimbursement of expenses, not expenses plus a markup. Additionally, on the same extra work invoice, the Contractor billed the City an additional $1,750 for Date Palm removal, which was already at least partially included in the crane rental charge of $3,350. They City appears to have been overcharged by $2,150 for the crane rental expense reimbursement.

8. We physically inspected each facility identified in Exhibit C of the Agreement and photographed the area maintained. W e labelled and provided the pictures of the landscaping to the City’s Public Works Director. W e obtained the Public Works Director’s evaluation of whether each maintained area meets standards, needs improvement, or exceeds standards.

Results: The Public Works Director’s evaluation of the facilities we observed are as follows:

Facility/Zone Evaluation
GF-1 Meets Standard
GF-2 Meets Standard
GF-3 Meets Standard
GF-4 Meets Standard
GF-5 Meets Standard
GF-6 Meets Standard
GF-7 Meets Standard
GF-8 Meets Standard
GF-9 Meets Standard
GF-10 Meets Standard
GF-11 Meets Standard
GF-14 Meets Standard
GF-15 Meets Standard
GF-17 Meets Standard
GF-20 Meets Standard
GF-22 Meets Standard
GF-23 Meets Standard
GF-24 Meets Standard
GF-26 Meets Standard
GF-27 Meets Standard
GF-28 Meets Standard
Zone A Combined Meets Standard
Zone C Meets Standard
Zone D Meets Standard
Bus Shelters Meets Standard

9. We obtained a written report from the Contractor detailing the number of specific plants, flowers, irrigation materials, fertilizers, and other products used by the Contractor or Subcontractor. W e compared the report to the month invoices to determine if the City was billed consistently with the materials used. We obtained written verification from the Public Works Director that the products were delivered and installed at the City facilities in Exhibit C of the Agreement.

Results: Per inquiry, we noted that the City purchased plants and flowers directly from Armstrong Growers in the amount of $57,717.53 for the fiscal year ended June 30, 2023. The Agreement with the Contractor states “Contractor will perform work and furnish all labor, materials, and equipment”. Per follow up with the City’s Public Works Director, the request for qualifications dated May 4, 2020 states the following “flowers will be provided by the City”. The contract appears to have conflicting language.

City staff inspects the plants and flowers purchased from Armstrong Growers and returns any materials that do not meet the City’s standards. The Contractor plants the flowers and the City visual inspects the process. The Contractor does not maintain detail of the number of specific plants, flowers, irrigation materials, fertilizers, or other projects used. As such, we did not obtain written verification from the Public Works Director that the products were delivered and installed.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Contractor’s accounting records.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the Contractor and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed- upon procedures engagement.

This report is intended solely for the information and use of management of the City and the Contractor and is not intended to be and should not be used by anyone other than those specified parties.

Irvine, California
October 2, 2023

INDIAN WELLS CITY COUNCIL
December 7, 2023

To: City Council
From: Finance Department
Prepared by: Ruby D. Walla, Assistant Finance Director
Subject: City Treasurer’s Report for September 2023

RECOMMENDED ACTIONS:

Council RECEIVES and FILES the City Treasurer’s Report for September 2023.

DISCUSSION:

This report comprehensively analyzes the City of Indian Wells' cash and investment position as of September 30, 2023. The city maintains a robust investment strategy, focusing on prudence, liquidity, and compliance with legal requirements. The Treasurer's certification ensures adherence to t he city's investment policy and compliance with the State of California Government Code section 53600.

Financial Snapshot:

As of September 30, 2023:

 Total cash and investments: $66,363,471.69
 Portfolio rate of return: 2.045%

Treasurer's Certification:

The City Treasurer certifies:
 Compliance with the city's investment policy and legal requirements.  Adequate liquidity to meet financial obligations for the next six months, ensuring static and dynamic liquidity.

Fiscal Prudence:

Aligned with the fiduciary duty, the city adheres to a prudent investment approach, considering economic conditions and anticipated needs. Investments are guided by a written policy emphasizing safety, liquidity, and yield.

BACKGROUND:

The Treasurer's Report provides a monthly update on cash activity and the investment portfolio, ensuring reconciliation with the General Ledger. Investments align with the city's investment policy and State legislation, covering U.S. treasuries, federal agency securities, corporate notes, municipal bonds, CDs, and overnight cash investments.

Investment Strategy:

The city's investment portfolio is designed to achieve a market rate of return within risk constraints. Diversification across institutions, security types, and maturities maximi zes safety and yield amid changing market conditions.

FISCAL IMPACT:

The investment portfolio generated $88,920.03 in earnings for September 2023. The investment strategy aims for consistent returns throughout budgetary and economic cycles, reflecting prudent risk management. Moreover, the strategy's success in consistently generating returns reflects its adaptability to changing market conditions. As economic cycles fluctuate, the city's investment approach remains resilient, adjusting to dynamic financial landscapes to optimize safety and yield.

ATTACHMENTS:

1. City Treasurer’s Report

UNRESTRICTED FUNDS

GENERAL FUND
101- GENERAL

TOTAL GENERAL FUND

RESTRICTED FUNDS

SPECIAL REVENUE FUNDS
202 - TMFFIC SAFETY
203 - PUBLIC SAFETY U2 CENT SALES TAX
204 - MEASURE "A'
209 - F.A.M.D. #1
210 - SCAQMD (VEHICLE REG.)
211 - AB 3229 COPS FUNDING
214 - GAS TAX 2103 MAINTENANCE
215 - GAS TAX 2105 MAINTENANCE
216 - GAS TAX 2106 CONSTRUCT/MAINT
217. GAS TN<2107 MAINTENANCE
218 - GAS TAX 2107.5 ENG./ADMIN
219 - GAS TAX RMRA
228 - EMERG. UPGMDE SERVICES
247 - AB 939 RECYCLING FUND
248 - SOLID WASTE
25I - STREET LIGHTING DISTRICT 2OOO-1
253- INDIAN WELLS VILLAS OPEMTIONS
254- MOUNTAIN VIEW VILLAS OPEMTIONS
256- HOUSING AUTHORITY
271 - ELDOMDO DRIVE LLMD
272 - MONTECTTO/STARDUST LLMD
273 - CASA DOMDO LLMD
274 -THE COVE LLMD
27s - SH 11I/IWGR (ENTMNCE) LLMD
276 - CLUBITW LANE LLMD
277 - COLONY LLMD
278 - COLONY COV ESTATES LLMD
279 - DESERT HORIZONS LLMD
280 - MOUNTAIN GATE LLMD
281 - MOUNTAIN GATE ESTATES LLMD
282 - VILLAGIO LLMD
283 - VAIDYA LLMD
284 - CLUB, SOUTH OF 111 LLMD
285 - MONTELENA LLMD
286 - SUNDANCE LLMD
287 - PROVINCE LLMD
288 - PROVINCE DBAD

TOTAL SPECIAL REVENUE FUNDS

CAPITAL PROJECT FUNDS
310 - PARK FACILMES FEES
311 - TMNSPORTATION FACILMES FEES
313 - RECREATION FACILMES FEES
314 - PARK-IN-LIEU FEES
315 . CITYWIDE PUBLIC IMPROVEMENT FEE
316 - CAPITAL IMPROVEMENT
319 - ART IN PUBLIC PLACES
321 - HIGHWAY 111 CIRCULANON IMP FEE

TOTAL CAPITAL PROJECT FUNDS
NET CASH & INVESTMENT SUMMARY SEPTEMBER 2023
September
2023
$ 12,846,135.99
12,846,135.99
September
2022
$ 8,s50.105.96
8,560,105.96
tr,699.78
14,845,80
92,427.67
t,515,457.L7
14,798.85
1 1,405.10
12,531.95
7,009.43
5,645.r2
9,731.6r
1,000.00
136,284.29
4,765,723.78
287,942.L9
r25,721.44
16,676.66
96,945.46
179,896.85
2,746,049.84
61,708.05
5,883,37
773.88
7,309.29
88,789.80
19,467.04
79,251.45
48,74L.t4
12,756.87
96,228.33
44,342.27
225,231.32
34,906.28
3L,325.23
75,73t.L7

0.00 82,667.08
563,48233
3,696.07
12,930.t2
93,L44.52
1,980,303.89
14,608.28
6,191.85
10,752.63
6,659,51
5,409.72
9,230.70
1,oo0.oo
29,467.21
3,896,481,45
403,728.58
200,703.92
14,680.64
1,330,554.81
2,075,29r.54
12,4L5,904.45
63,095.69
5,800.97
769.85
992.80
48,6L0.45
14,325.21
82,L48.66
53,843.36
11,135.68
97,7L9.32
49,6r3.4L
242,372.63
35,198.16
29,944.95
75,386.70
t,50r.74
78,885.1 1
556.430.56
11,530,387.89
27,033.00
23,496.00
47,064.00
17,003.00
7,662.00
9,982,350.02
643,809,63
37 23,958,515.14

0.00 0.00

0.00 44,010.00
64,714.00
8,152,867.80
359,726.45
70 9,657,551.95
1 T:\Common\bank\Treasurels Report\Cash'1 0Sept 23
9,785,57O.35
6:O7 PM'l'112912023
ATTACHMENT #1

CITY OF INDIAN WELLS
NET CASH & INVESTMENT SUMMARY SEPTEMBER 2023
PAGE 2
RESTRICTED FUNDS (Cont.)

REPLACEMENT FUNDS
326 - BUILDINGS CAPITAL RESERVE
327 - BRIDGES CAPITAL RESERVE
328 - MEDIANS & PARKWAYS CAPTTAL RESERVE
329 - STORM DMINS CAPTTAL RESERVE
330 - TMFFIC SIGNALS CAPITAL RESERVE
331 - TECHNOLOGY CAPTTAL RESERVE
332 - CITY STREETS CAPITAL RESERVE
333 - CITY VEHICLES CAPITAL RESERVE
334 - NAMING RIGHTS CAPITAL RESERVE
350 - DISASTER RECOVERY RESERVE

TOTAL REPLACEMENT FUNDS

SUCCESSORAGENCY FUNDS
453 . DEBT SERVICE
456 - RDA OBLIGATION RETIREMENT
460 - INDIAN WELLS FINANCING AUTHORTFY

TOTAL SUCCESSOR AGENCY FUNDS

ENTERPRISE FUNDS
560 - INDIAN WELLS GOLF RESORT

TOTAL ENTERPRISE FUNDS

INTERNAL SERVICE FUNDS
601 - OPEB BENEFIT FUND

TOTAL INTERNAL SERVICE FUNDS

RESERVE FUNDS
602 - COMPENSATED ABSENCES

TOTAL RESERVE FUNDS

TRUST & AGENCY FUNDS
732 - SPECIAL DEPOSITS

TOTAL TRUST & AGENCY FUNDS

TOTAL ALL FUNDS

FISCAL AGENTS
253 - INDIAN WELLS VILI-AS
254 . MOUNTAIN VIEW VILLAS
453 - US BANK TRUSTEE - SUCCESSOR AGENCY DEBT SERVICE
460 . US BANK - INDIAN WELLS FINANCE AUTHORITY
560 - INDIAN WELLS GOLF RESORT
601 - PARS SECTION 115 TRUST - PENSION
601 - PARS SECTION 115 TRUST - OPEB

TOTAL FISCAL AGENTS

TOTAL ALL FUNDS & FISCAL AGENTS

UNRESTRICTED FUNDS

RESTRICTED FUNDS
16,634,206.46 16,735t759.3L
5 82,997 .678.15 $ 88,697,256.66
24,64L,83O.87
2,527,210.64

0.00 273.98
September
2023
1,990,616.80
1,790,016.00
1,424,895.07
7t9,746.00
590,920.00
539,633.00
17,r70,499.00
123,655,00
0,00
291,850.q0
September
2022
1,670,511.80
1,717,718.00
1,367,25r.07
690,432.00
567,375.00
518,147.00
18,840,062.00
118,879.00

0.00 00
25,632,504.87
544,757.56
1,062,774.00

0.00 2,527,484.62 1,607,531.55
I,500.000,00 I, r49.274.72
1,500,000.00 I,149,274.72
940,235.09
940,235.09
2,r33,200.r2
2,L33,2OO.L2
624 787.00 581,403,00
624,787.OO 581,4O3.00
774,074.85 874,375.06
774,O74,85 874,375.06
71861,497.35
540,7t3.94
L,L96,r95.02
tt.44
12,060,999,93
t,9r5,242.12
822,9L8.67
199,678.19
325,207.50
334,417.52
4,613,706.rr
9,037,945.68
L,223,586.84
884,631.61
2t4,7rr.20
L2,846,135.99
70,L5LF42.L6
8,560,105.96
80,137r150.70
.2s6.66
T:\Common\bank\Treasure/s Report\Cash'1 0Sept 23
$ 42,997 .674.L5 $
6:07 PM11t29l2O23Page 284 of 439
T \Comnonbnl$nk
'4orcilalm
924W23 @-RPT-S4I &n[ RdSSl23 @ldPU&ISHED
11N@23
Bank Reconciliation Report - City Held Cash
Finance DeDartment
Indian
1 2
3 5
1 I
9 10
19 21
480
444
443
498
499
501
512
513
514
515
516
st7
s18
519
s20
521
s22
52s
s4a
550
557
558
561
s62
574
st3
57s
s79
sa0
5at
sa5
5a6
sa7
s8a
589
s90
591
s92
s24
525
s33
534
s49
556
sr5
s27
s29
s30
532
s34
53s
s35
539
s41
542
s44
546
551
5s2
553
554
555
559
560
s63
55s
554
556
s67
564
569
571
s72
s82
53'
531
s77
543
584
**,**r117
Pacific Wstern gank - Accb. Pavable **-**3411
Pacific Wetern Eank - Pavrcll **-**1752
Paclfic Wstern Bank - Ambulance +*_*t**7937
Pacific western Bank - Publlc Funds MrlA +*-****5064
uS Bank Monev Market - Investment
US Bank Monev Market _ 4590
us Bank Monev Market - 4591
Petty Cash

0.00 0.00

0.00 15,r88.33

0.00 2,913,517 .52
19,154.42
2,000.00
996,639.66
988,803.48
C€ilificab of &po3it , , .,,.,,,cenm@ 25oooooo
Cetificate of Oe@slt-Comenitv Capibl Bank 20033AM85 250'000 00 CedlnGb of Dercsit-usB Bank USA 90348JFF2 250'000 00
Cedificate of koosiFu Federal Credlt Union 749622At0 249'000 00 Certiflcate of Dercsit{aplbl One Bank 14m2TAY3 247'000 00 Cenificate of De@slt-Bankwest 06552CHA2 249'000 00
certificate of Dercsit-Blvlw bnk Nofrh America 05580A\4{9 250,000 00 Cenificate of &@sit-Nicolet Nation Bank 654062j22 250'000 00 Certificate of De@sillive Oak Banklnq Companv 5380361M 250'000 00 Certificate of &@slt-Alma Bank 0200808X4 250'000 00
Certificate of De@sitsState &nkoflndla 855285TF8 248'000 00 Cedificate of tErcsltsFi6t Natl Eank ofMccreqor fi 32112UDR9 249'000 00 CedifiGte of ft@sibcente6bte Eank 15201ODE4 248 000 00
Certiffcte of Dercsit-Nodhw6t Bank 66736A8V0 249'000 00 Cetifiote of &positsEncore Bank 29260M8E4 249 000 00
Certiffcate of De@sitsFi6t Fedom Bank 320278Af49 249'000 00 Cefriffcate of De@siFPacific W6tern Bank 69506Yu 248'000 00 Ceilificate of DeFslt-8ank of Baroda 06063HMS9 249'000 00 Cenificate of m@sit-Tovota Flnanclal S{s Bank g9235MKY6 250'000 00 cedificate of k@sit{@nsbte crcdlt union 395731811 250.000 00 Ceftiflcate of DercsiFPenbqon ftderal Credlt Union 70962hS1 249'000 00 Cedificate of k@slt-Nelnet Banlc Inc 64034KAG6 250'000 00 Certlficate of De@sit-B@l bnk 07371AYE7 250'000 00
Cefrificate of k@sit-B€l Bank usA 07371CE88 250'000 00
Certificte of De@sit-Austin Telco Fed Credit Union 0523928T3 250'000 00 cenifiete of kruit{apibl one NA 14042RUJ8 250 000 00
Cedifidte of De@sit-svnchrcnv Bank 8719XR65 250 000 00
CedlncE of Dercslt-Pacific Wstem Bank 250'000 00
Cedificate of &Mlt-Pacific Wetern Eank 250'000 00
Certiflcate of D€rcsibPacinc Wstern Bank 250'000'00
Cefrificate of k@slt-Llbertv Fi6t Credit |Jnion 530520AK1 249'000 00 Cedificate of De@siFFi6t Guarantv Bank Hammond LA 249'000 00 Cediffcate of k@slt-Medallion Bank ubh 58404osw2 249'000 00 Cedificate of k@siFpitnev bw6 Bank 724468AG8 244'000 00 Certmcate of DeFsiL8ank Five Nine 062119CD2 249'000 00
Cefrlfi@te of k@sit-Fi6! Foundatlon Eank 32026uw51 244'000 00 Certificte of De@siFsummit National Bank 86616MG0 249'000 00 Cedlficate of ft@siFFiFt National Bank ofAmeric 32110YD93 249 000 00 District
Natomas m S(hdl Diskid 63877NM146 300,000.00
Taesury Dilcounb-Anonizinq ,, , .,..--,=unitaffi 2'980'82439 Montebelb ca Pens obliq AA 6122854E6
lP lqorqan chas Bank NA 46632FRU1
JP Morqan Chase 48128G2O2
&nk ofAmerica MTN 06048WM31
Bank ofAmerica MTN 06mgWM72
lohn De€re Caoihl Corp 24422EwR6
1,027 ,270.24

2.000.000.00
1,000,000.00
r,000,000.00
1,000,000.00
1,O23,575.14
Fedearl^q€n4l53us - ---.-.-reo.@ 2,ooo,ooo.oo
Fed Farm credil Bank 3133E1280 2 000'000 00
Fed. Home Loan l'4tq corp 3134GWCG9 1,000'332 75
Fed. Nat'l Mortqaqe A$@ 3135GA223 2,000,000 00
Fed Farm credit Bank 313oAL3s1 1'000'000 00
Fed Farm credlt Bank 313oAL5G4 1'000'000 00
Fed Farm credit Bank 313oAL6J8 2'000'000 00
fu. Farm Credit Bank 3130ALDN1 2'000'000 00
Fed Farm credit Eank 3l3oALHzo 1'000 000 00
Fed. Farm Credlt &nk 3110AU62 1,000,000 00
Fed, Farm credlt Eank 3130A114M3 2'000 000 00
Fed. Farm Credtt Bank 3130A1w67 1,000.000,00
Fed FarmcredltBank313oAMw57 2'000'00000
tud. Farm credit Bank 3133EMH21 2,000,000.00
Fed Farm Credit bnk 3133EM167 2'000'000 00
Fed. Farm credit Bank 3I33EMN99 2,000,000.00
Fed Farm credlt Bank 3133EMM3 3'000'000 00
Fed. Home L@n Bank 3I30AOWF6 1'000'000 00
Fed. Home L@n Bank 3130AOWJ8 1'000'000 00
Fed Home Loan Eank 3130A0255 1'000'000 00
Fed Home Loan Eank 3130ARCVI 2'000'000 00
Fed. Hone Loan lqtq Corp 3r34GXl4X9 1'000'000 00
Fed. Home Loan Bank 3130ARGE5 1'000'000 00
Fed. Home Loan l'4tq Coro 313'IGXQP2 1'000'000 00
Fed. Home Loan Bank 313OAS3Z0 1'700'000 00
Fed. Home Loan Bank 313'lcxuM4 1'000'000 00
Fed. Home Loan Bank 3130A5567 r,000,000.00
Fed Home L@n Bank 3130Ass91 1'000'000 00
Fed. Farn Credit Bank 3133EppC3 2.000,000.00
HediumTehcorml.hflob :::: :eanrm 1,00s,955,78
United Sht6 Treasury Blll9I2797FCG
United Sbtes Treasury Bi'll 912797N4
Tohl P@led Csrh and InvffiGnb
Fa[ value Incr@* (over cost)
ikht oubbndlno waiianb/wire Transfe6
&rcsit in Transit
Outshndinq Outqoing ACH Paymenb
Credit Card in Translt
(923,879.11)
(6,760.50)
21,301.88
7,527.42
offindino Itefr3
3 66,353,471.69