CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
-80-
19. SUCCESSOR AGENCY LONG-TERM DEBT, (continued)
The annual debt service requirements for the Bonds outstanding at June 30, 2023 were as follows:
Year Ending
June 30, Principal Interest Total
2024 490,000 $ 14,088 $ 504,088 $
Total $ 14,088 490,000 $ 504,088 $
1998-1 AD Improvement Bonds
20. RISK, UNCERTAINTIES & CONTINGENCIES
Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the government expects such amounts, if any, to be immaterial.
Successor Agency
Deductions (expenses) incurred by the Successor Agency for the year ended June 30, 2023 (and subsequent years in which the Successor Agency is in operation) are subject to review by various State agencies and the County in which the Successor Agency resides. If any expenses incurred by the Successor Agency are disallowed by the State agencies or County, the City, acting as the Successor Agency could be liable for the repayment of the disallowed costs from either its own funds or by the State withholding remittances normally paid to the City. The amount, if any, of expenses that may be disallowed by the State agencies or County cannot be determined at this time, although the Successor Agency expects such amounts, if any, to be immaterial.
In October 2014, the City received a letter from the State Controller’s Office stating that the City’s general government received an unallowable transfer of $2,409,056 in assets from the then RDA. The State Controller’s Office is requesting that the unallowable transfers be returned to the now Successor Agency.
The City will perform an analysis of available Successor Agency financial records to establish a reasonable plan for repaying the verified amount of “unallowable” transfer made in fiscal year 2014.
CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
-81-
21. PRIOR PERIOD ADJUSTMENT
The City recorded a prior period adjustment to capital assets in the governmental activities, businesstype activities and wastewater fund due to correction of prior year errors.
Governmental
Activities
Net position, beginning of year, prior to restatement 143,082,696 $ Prior period restatement (498,125)
Net position, beginning of year, as restated 142,584,571 $ Business-Type
Activities
Net position, beginning of year, prior to restatement 26,164,189 $ Prior period restatement 370,935
Net position, beginning of year, as restated 26,535,124 $ Wastewater Fund
Net position, beginning of year, prior to restatement 26,164,189 $ Prior period restatement 370,935
Net position, beginning of year, as restated 26,535,124 $ Government-wide Statements - Statement of Activities
Government-wide Statements - Statement of Activities
Statement of Revenues, Expenses, and Changes in
Fund Net Position - Proprietary Funds
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REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF LA MESA
Required Supplementary Information
Budgetary Information
For the Year Ended June 30, 2023
‐82-
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
The biennial budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. All transfers between funds, departments and/or activities shall be made by the City Council except that the City Manager may, on his own initiative and without prior approval of the City Council, transfer between budget accounts within a single department or activity to any other account or appropriation, or to the reserve, amounts determined to be in excess of actual requirements.
Budget figures used in the financial statements are the final adjusted amounts. Formal budgetary integration is employed as a management control device during the year.
Commitments for materials and services, such as purchase orders and contracts, are recorded as encumbrances to assist in controlling expenditures.
Budgets for the General and Special Revenue Funds are adopted on a basis substantially consistent with generally accepted accounting principles in the United States (GAAP). Accordingly, actual revenues and expenditures can be compared with related budgetary amounts without any significant reconciling items. No budgetary comparisons are presented for the Debt Service and Capital Projects Funds since no "annual" budget is adopted for these funds. No budgetary comparisons are presented for proprietary fund types, as the City is not legally required to adopt a budget for these types of funds.
CITY OF LA MESA
Required Supplementary Information
Budgetary Comparison Schedule – General Fund
For the Year Ended June 30, 2023
‐83-
The following is a budget comparison schedule for the General Fund.
Variance
Actual with Final
Original Final Amounts Budget
Fund Balances - Beginning $ 58,983,932 58,983,932 $ 58,983,932 $ - $ Resources (inflows):
Property taxes 17,182,840 17,182,840 18,418,083 1,235,243 Other taxes 34,307,680 34,307,680 37,372,154 3,064,474
Licenses and permits 1,605,900 1,605,900 2,473,422 867,522 Fines and forfeitures 433,000 433,000 442,809 9,809
Use of money and property 1,766,140 1,766,140 3,510,031 1,743,891 Intergovernmental 1,655,650 1,655,650 1,701,778 46,128
Charges for services 2,376,620 2,376,620 3,413,608 1,036,988 Other revenues 3,280,000 3,361,550 1,261,304 (2,100,246) Transfers from other funds 3,090,200 3,090,200 2,122,249 (967,951) Amount available for appropriations 124,681,962 124,763,512 129,699,370 4,935,858 Charges to appropriations (outflows):
General government 8,646,370 11,591,975 7,151,776 4,440,199 Police 24,416,480 24,588,600 22,793,662 1,794,938
Fire 14,218,520 14,607,596 14,308,258 299,338
Public works 11,168,800 11,795,327 8,997,778 2,797,549
Community development 2,484,300 3,245,254 2,338,650 906,604 Community services 2,121,030 2,171,547 2,194,954 (23,407) Capital outlay - - 1,456,400 (1,456,400)
Debt service:
Principal retirement - - 460,488 (460,488)
Interest and fiscal charges - - 9,134 (9,134)
Transfers to other funds 2,345,030 4,976,900 1,644,291 3,332,609 Lease acquisition - - (1,456,400) 1,456,400
Total charges to appropriations 65,400,530 72,977,199 59,898,991 13,078,208 Fund Balances - Ending $ 51,786,313 59,281,432 $ 69,800,379 $ 18,014,066 $ Budgeted Amounts
CITY OF LA MESA
Required Supplementary Information
Budgetary Comparison Schedule – Miscellaneous Grants Fund For the Year Ended June 30, 2023
‐84-
The following is a budget comparison schedule for the Miscellaneous Grants Fund.
Variance
Budgeted Amounts Actual with Final
Original Final Amounts Budget
Fund Balances (Deficit) - Beginning $ (274,080) (274,080) $ (274,080) $ - $ Resources (inflows):
Intergovernmental - - 736,931 736,931
Amount available for appropriations (274,080) (274,080) 462,851 736,931 Charges to appropriations (outflows):
Police 287,430 287,430 238,065 49,365
Community development 1,985,200 2,196,250 562,346 1,633,904 Total charges to appropriations 2,272,630 2,483,680 800,411 1,683,269 Fund Balances (Deficit) - Ending $ (2,757,760) (2,546,710) $ (337,560) $ 2,420,200 $
CITY OF LA MESA
Required Supplementary Information Schedules of Changes in Net Pension Liability and Related Ratios Last Ten Years* ‐85-
Miscellaneous Plan
6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
TOTAL PENSION LIABILITY
Service Cost $ 1,605,289 1,725,483 $ 1,587,287 $ 1,736,333 $ 1,745,608 $ 1,735,047 $ 1,821,665 $ 1,895,297 $ 1,996,533 $ Interest on Total Pension Liability 6, 6,823,080 602,641 7,124,332 7,316,806 7,602,090 7,944,529 8,219,050 8,555,981 8,647,552 Difference Between Expected and Actual Experience - (1,101,092) 263,533 (5,847) 1,300,541 1,569,003 507,760 1,305,190 (1,125,062) Changes of Assumptions (1,539,484) - - 5,617,856 (661,183) - - - 3,393,444 Benefit Payments, Including Refunds of Employee Contributions (4,351,133) (4,592,998) (4,896,950) (5,490,512) (5,923,785) (6,320,349) (6,462,046) (6,878,738) (7,336,269) Net Change in Total Pension Liability 3, 1,194,795 976,991 4,078,202 9,174,636 4,063,271 4,928,230 4,086,429 4,877,730 5,576,198 Total Pension Liability - Beginning 89,348,041 93,325,032 94,519,827 98,598,029 107,772,665 111,835,936 116,764,166 120,850,595 125,728,325 Total Pension Liability - Ending (a) 93,325,032 94,519,827 98,598,029 107,772,665 111,835,936 116,764,166 120,850,595 125,728,325 131,304,523
PLAN FIDUCIARY NET POSITION
Contributions - Employer 2,018,839 2,233,832 2,553,613 2,693,445 3,000,728 3,398,605 3,871,245 4,230,939 4,676,417 Contributions - Employee 793,357 699,783 727,594 761,773 739,434 751,231 790,692 852,004 847,804 Net Investment Income 10,477,342 1,548,306 378,797 7,561,152 6,214,843 5,041,276 4,031,596 18,659,358 (7,484,578) Benefit Payments, Including Refunds of Employee Contributions (4,351,133) (4,592,998) (4,896,950) (5,490,512) (5,923,785) (6,320,349) (6,462,046) (6,878,738) (7,336,269) Net Plan to Plan Resource Movement - - - - (180) - - - 1,326 Administrative Expense (78,335) - (42,421) (100,879) (114,925) (55,269) (113,154) (82,296) (61,774) Other Miscellaneous Income/(Expense) - - - - (218,244) 180 - - - Net Change in Fiduciary Net Position 8,938,405 (189,412) (1,279,367) 5,424,979 3,697,871 2,815,674 2,118,333 16,781,267 (9,357,074) Plan Fiduciary Net Position - Beginning 60,856,744 69,795,149 69,605,737 68,326,370 73,751,349 77,449,220 80,264,894 82,383,227 99,164,494 Plan Fiduciary Net Position - Ending (b) 69,795,149 69,605,737 68,326,370 73,751,349 77,449,220 80,264,894 82,383,227 99,164,494 89,807,420 Plan Net Position Liability - Ending (a) - (b) 23, $ 24,914,090 529,883 $ 30,271,659 $ 34,021,316 $ 34,386,716 $ 36,499,272 $ 38,467,368 $ 26,563,831 $ 41,497,103 $ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 74.79% 73.64% 69.30% 68.43% 69.25% 68.74% 68.17% 78.87% 68.40%Covered Payroll $ 9,805,687 9,338,814 $ 10,775,401 $ 10,782,250 $ 9,713,133 $ 10,004,158 $ 9,771,136 $ 9,799,062 $ 10,158,798 $ Plan Net Pension Liability as a Percentage of Covered Payroll 251.96% 254.08% 280.93% 315.53% 354.02% 364.84% 393.68% 271.09% 408.48%Notes to Schedule:* Measurement period 2013-14 (fiscal year 2015) was the 1st year of implementation.
Measurement date
Changes in Assumptions: 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 marketreturn 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 discountliabilities 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 noassumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with thepayments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year rampdown on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERSExperience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
CITY OF LA MESA
Required Supplementary Information Schedules of Changes in Net Pension Liability and Related Ratios Last Ten Years* (Continued)
‐86-
Safety Plan
6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
TOTAL PENSION LIABILITY
Service Cost $ 2,407,587 2,511,204 $ 2,403,285 $ 2,727,872 $ 3,179,247 $ 3,150,403 $ 3,248,296 $ 3,343,416 $ 3,640,297 $ Interest on Total Pension Liability 10,771,035 11,178,436 11,527,490 11,719,571 12,328,071 12,871,590 13,344,226 13,814,851 14,074,261 Difference Between Expected and Actual Experience - (161,921) (697,636) (1,952,708) 3,953,305 2,005,205 926,691 721,003 (2,888,155) Changes of Assumptions (2,742,320) - - 9,776,293 (937,052) - - - 7,636,111 Benefit Payments, Including Refunds of Employee Contributions (7,575,744) (8,057,546) (8,589,274) (8,796,139) (9,561,683) (10,231,175) (10,543,526) (11,014,303) (11,572,811) Net Change in Total Pension Liability 5,706,495 2,624,236 4,643,865 13,474,889 8,961,888 7,796,023 6,975,687 6,864,967 10,889,703 Total Pension Liability - Beginning 151,852,549 146,146,054 154,476,785 159,120,650 172,595,539 181,557,427 189,353,450 196,329,137 203,194,104 Total Pension Liability - Ending (a) 154,476,785 151,852,549 159,120,650 172,595,539 181,557,427 189,353,450 196,329,137 203,194,104 214,083,807
PLAN FIDUCIARY NET POSITION
Contributions - Employer 2,864,566 3,238,613 3,767,485 4,477,395 4,559,719 5,192,920 5,934,636 6,493,887 7,265,481 Contributions - Employee 804,337 840,213 891,198 996,668 1,045,575 1,083,318 1,191,676 1,350,773 1,308,329 Net Investment Income 17,292,426 2,541,555 564,745 12,085,214 9,928,189 8,023,831 6,295,868 29,372,461 (11,830,172) Benefit Payments, Including Refunds of Employee Contributions (7,575,744) (8,057,546) (8,589,274) (8,796,139) (9,561,683) (10,231,175) (10,543,526) (11,014,303) (11,572,811) Net Plan to Plan Resource Movement - - - - (288) - - - (1,326) Administrative Expense (126,940) - (68,743) (161,464) (183,818) (88,062) (179,578) (129,943) (97,275) Other Miscellaneous Income/(Expense) - - - - (349,074) 288 - - - Net Change in Fiduciary Net Position 13,385,585 (1,564,105) (3,434,589) 8,601,674 5,438,620 3,981,120 2,699,076 26,072,875 (14,927,774) Plan Fiduciary Net Position - Beginning 100,973,923 114,359,508 112,795,403 109,360,814 117,962,488 123,401,108 127,382,228 130,081,304 156,154,179 Plan Fiduciary Net Position - Ending (b) 114,359,508 112,795,403 109,360,814 117,962,488 123,401,108 127,382,228 130,081,304 156,154,179 141,226,405 Plan Net Position Liability - Ending (a) - (b) 37,493,041 $ 41,681,382 $ 49,759,836 $ 54,633,051 $ 58,156,319 $ 61,971,222 $ 66,247,833 $ 47,039,925 $ 72,857,402 $ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 75.31% 73.02% 68.73% 68.35% 67.97% 67.27% 66.26% 76.85% 65.97%Covered Payroll $ 9,288,796 9,120,009 $ 9,570,037 $ 9,992,870 $ 9,226,022 $ 9,535,932 $ 10,584,174 $ 10,463,333 $ 11,505,777 $ Plan Net Pension Liability as a Percentage of Covered Payroll 411.11% 448.73% 519.95% 546.72% 630.35% 649.87% 625.91% 449.57% 633.22%Notes to Schedule:* Measurement period 2013-14 (fiscal year 2015) was the 1st year of implementation.
Measurement date
Changes in Assumptions: 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 marketreturn 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 discountliabilities 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 noassumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with thepayments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-downon investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERSExperience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30,2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
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CITY OF LA MESA
Required Supplementary Information Schedules of Changes in Net Pension Liability and Related Ratios Last Ten Years* (Concluded)
‐87-
PARS Retirement Enhancement Plan
6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
TOTAL PENSION LIABILITY
Service Cost $ 3,000 3,000 $ 3,000 $ 3,000 $ 1,527 $ - $ - $ - $ - $ Interest on Total Pension Liability 171,000 171,000 178,000 178,000 159,542 157,449 142,093 138,733 127,971 Changes of Benefit Terms - - - - - - - - -
Difference Between Expected and Actual Experience - (1,000) - (154,000) - (215,926) - 17,508 - Changes of Assumptions 118,000 - - 77,000 - (7,519) - 60,325 - Benefit Payments, Including Refunds of Employee Contributions (174,000) (178,000) (179,000) (187,000) (188,512) (192,282) (196,128) (200,051) (204,052) Net Change in Total Pension Liability - 113,000 2,000 (83,000) (27,443) (258,278) (54,035) 16,515 (76,081) Total Pension Liability - Beginning 2, 2,720,000 720,000 2,833,000 2,835,000 2,752,000 2,724,557 2,466,279 2,412,244 2,428,759 Total Pension Liability - Ending (a) 2, 2,833,000 720,000 2,835,000 2,752,000 2,724,557 2,466,279 2,412,244 2,428,759 2,352,678
PLAN FIDUCIARY NET POSITION
Contributions - Employer 106,000 105,800 118,000 118,000 125,000 125,000 125,000 125,000 - Contributions - Employee 1,000 1,000 2,000 1,000 1,127 - - - - Net Investment Income 60,000 275,000 50,000 187,000 123,563 134,170 106,642 472,636 (328,943) Benefit Payments, Including Refunds of Employee Contributions (174,000) (178,000) (179,000) (187,000) (188,512) (192,282) (196,128) (200,051) (204,052) Administrative Expenses (22,000) (22,000) (21,000) (8,000) (8,370) (8,556) (8,629) (8,859) (8,904) Other Changes in Fiduciary Net Position - - - - - - - - - Net Change in Fiduciary Net Position 186,000 (33,200) (30,000) 111,000 52,808 58,332 26,885 388,726 (541,899) Plan Fiduciary Net Position - Beginning 2,124,000 2,310,000 2,276,800 2,246,800 2,357,800 2,410,608 2,468,940 2,495,825 2,884,551 Plan Fiduciary Net Position - Ending (b) 2,310,000 2,276,800 2,246,800 2,357,800 2,410,608 2,468,940 2,495,825 2,884,551 2,342,652 Plan Net Position Liability / (Asset) - Ending (a) - (b) $ 556,200 410,000 $ 588,200 $ 394,200 $ 313,949 $ (2,661) $ (83,581) $ (455,792) $ 10,026 $ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 84.93% 80.37% 79.25% 85.68% 88.48% 100.11% 103.46% 118.77% 99.57%Covered Payroll $ 100,872 97,932 $ 103,896 $ 105,972 $ 108,096 $ 108,096 $ 113,544 $ 113,544 $ 113,544 $ Plan Net Pension Liability / (Asset) as a Percentage of Covered Payroll 418.66% 551.39% 566.14% 371.99% 290.44% -2.46% -73.61% -401.42% 8.83%Notes to Schedule:* Measurement period 2013-14 (fiscal year 2015) was the 1st year of implementation.Changes in Assumptions for Measurement Date June 30, 2022:
None
Measurement date
CITY OF LA MESA
Required Supplementary Information Schedule of Plan Contributions Last Ten Years* ‐88-
Miscellaneous Plan
Fiscal Year
Actuarially Determined
Contribution
Contributions in Relation
to the Actuarially
Determined Contribution
Contribution
Deficiency
(Excess) Covered Payroll
Contributions as a
Percentage of
Covered Payroll
6/30/2015 2,018,839 $ (2,018,839) $ - $ 9,805,687 $ 20.59% 6/30/2016 2,233,832 (2,233,832) - 10,775,401 20.73%
6/30/2017 2,553,613 (2,553,613) - 10,782,250 23.68%
6/30/2018 2,693,445 (2,693,445) - 9,713,133 27.73%
6/30/2019 3,000,728 (3,000,728) - 10,004,158 29.99%
6/30/2020 3,398,605 (3,398,605) - 9,771,136 34.78%
6/30/2021 3,874,245 (3,874,245) - 9,799,062 39.54%
6/30/2022 4,230,939 (4,230,939) - 10,158,798 41.65%
6/30/2023 5,144,034 (5,144,034) - 10,630,644 48.39%
* Measurement period 2013-14 (fiscal year 2015) was the 1st year of implementation.Notes to Schedule:Actuarial Cost MethodAmortization Method/PeriodAsset Valuation MethodActuarial Assumptions:
Discount RateInflationSalary IncreasesMortality Rate TablePost Retirement Benefit Increase
2.30%Varies by Entry Age and ServiceThe mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were from the June 30, 2021 Funding Valuation Report.
Entry Age Actuarial Cost MethodFor details, see June 30, 2021 Funding Valuation Report.Fair Value of Assets6.90%
CITY OF LA MESA
Required Supplementary Information Schedule of Plan Contributions Last Ten Years* (Continued)
‐89-
Safety Plan
Fiscal Year
Actuarially Determined
Contribution
Contributions in Relation
to the Actuarially
Determined Contribution
Contribution
Deficiency
(Excess) Covered Payroll
Contributions as a
Percentage of
Covered Payroll
6/30/2015 6,864,566 $ (6,864,566) $ - $ 9,288,796 $ 73.90% 6/30/2016 3,238,613 (3,238,613) - 9,570,037 33.84%
6/30/2017 3,767,485 (3,767,485) - 9,992,870 37.70%
6/30/2018 4,477,395 (4,477,395) - 9,226,022 48.53%
6/30/2019 4,559,719 (4,559,719) - 9,535,932 47.82%
6/30/2020 5,192,920 (5,192,920) - 10,584,174 49.06%
6/30/2021 5,934,636 (5,934,636) - 10,463,333 56.72%
6/30/2022 6,493,887 (6,493,887) - 11,505,777 56.44%
6/30/2023 8,027,346 (8,027,346) - 12,204,552 65.77%
* Measurement period 2013-14 (fiscal year 2015) was the 1st year of implementation.Notes to Schedule:Actuarial Cost MethodAmortization Method/PeriodAsset Valuation MethodActuarial Assumptions:
Discount RateInflationSalary IncreasesMortality Rate TablePost Retirement Benefit Increase
2.30%Varies by Entry Age and ServiceThe mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were from the June 30, 2021 Funding Valuation Report.
Entry Age Actuarial Cost MethodFor details, see June 30, 2021 Funding Valuation Report.Fair Value of Assets6.90%
CITY OF LA MESA
Required Supplementary Information Schedule of Plan Contributions Last Ten Years* (Concluded)
‐90-
PARS Retirement Enhancement Plan
Fiscal Year
Actuarially Determined
Contribution1
Contributions in Relation
to the Actuarially
Determined Contribution2
Contribution
Deficiency
(Excess) Covered Payroll
Contributions as a
Percentage of
Covered Payroll
6/30/2015 105,800 $ (105,800) $ - $ 100,872 $ 104.89%6/30/2016 118,300 (118,300) - 103,896 113.86%6/30/2017 - - - 105,972 0.00%6/30/2018 114,700 (125,000) (10,300) 108,096 106.11%6/30/2019 114,700 (125,000) (10,300) 108,096 106.11%6/30/2020 22,800 (125,000) (102,200) 113,544 20.08%6/30/2021 22,800 (125,000) (102,200) 113,544 20.08%6/30/2022 - (25,689) (25,689) 113,544 0.00%6/30/2023 - (80,000) (80,000) 120,468 0.00% * Measurement period 2013-14 (fiscal year 2015) was the 1st year of implementation.Notes to Schedule:
1Actuarially Determined Contributions from actuarial valuation.2Actual contributions from City data.
CITY OF LA MESA
Required Supplementary Information
Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Years*
‐91-
Fiscal Year 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Measurement Period 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Total OPEB Liability
Service cost 177,546 $ 189,976 $ 195,675 $ 210,776 $ 104,011 $ 180,768 $ Interest 450,042 465,322 479,727 516,097 415,772 453,954 Differences between expected and
actual experience - - 514,636 (1,494,978) 588,094 (86,159) Changes of assumptions - - (176,855) - 82,245 614,946
Benefit payments (393,258) (450,210) (460,206) (566,820) (549,584) (510,878) Net change in total OPEB liability 234,330 205,088 552,977 (1,334,925) 640,538 652,631 Total OPEB liability - beginning 6,448,258 6,682,588 6,887,676 7,440,653 6,105,728 6,746,266 Total OPEB liability - ending (a) 6,682,588 6,887,676 7,440,653 6,105,728 6,746,266 7,398,897 Plan Fiduciary Net Position
Contributions – employer 673,038 744,210 910,206 1,046,550 1,034,864 883,007 Net investment income 240,564 216,245 221,144 155,315 1,279,360 (889,675) Benefit payments (393,258) (450,210) (460,206) (566,820) (549,584) (510,878) Administrative expense (1,213) (1,484) (1,653) (1,959) (1,763) (1,627) Other expense - (3,534) - - - -
Net change in plan fiduciary net position 519,131 505,227 669,491 633,086 1,762,877 (519,173) Plan fiduciary net position - beginning 2,152,522 2,671,653 3,176,880 3,846,371 4,479,457 6,242,334 Plan fiduciary net position - ending (b) 2,671,653 3,176,880 3,846,371 4,479,457 6,242,334 5,723,161 Net OPEB liability - ending (a) - (b) 4,010,935 $ 3,710,796 $ 3,594,282 $ 1,626,271 $ 503,932 $ 1,675,736 $ Plan fiduciary net position as a percentage
of the total OPEB liability 40.0% 46.1% 51.7% 73.4% 92.5% 77.4% Covered payroll 20,699,310 $ 21,602,500 $ 22,439,700 $ 23,695,500 $ 30,502,020 $ 28,565,459 $ Net OPEB liability as a percentage of covered payroll 19.4% 17.2% 16.0% 6.9% 1.7% 5.9% Notes to Schedule:
Valuation Date June 30, 2021
Actuarial Cost Method Entry age normal, level percentage of payroll Amortization Methodology Straight-line amortization. For assumption changes and experience gains/losses: Expected Average Remaining Service Lifetime of all members that are provided with benefits. For asset gains and losses: 5 years.
Asset Valuation Method Market value
Discount Rate 6.00% as of July 1, 2022 and 6.80% as of June 30, 2021 for accounting disclosure purposes
General Inflation 2.80%
Medical Trend 6.5% for 2022, decreasing to an ultimate rate of 4.5% in 2030 and later years Mortality Employees and retirees: SOA Pub-2010 General Headcount Weighted Mortality Table fully generational using Scale MP-2021.
Surviving Spouses: SOA Pub-2010 Continuing Survivor Headcount Weighted Mortality Table fully generational using Scale MP-2021.
Disabled Retirees: SOA Pub-2010 Safety Headcount Weighted Mortality Table fully generational using Scale MP-2021
Methods and Assumptions for 2021-2022 Actuarially Determined Contribution *Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information will be displayed up to 10 years as information becomes available. Fiscal year 2017-18 was the first year of implementation.
CITY OF LA MESA
Required Supplementary Information
Schedule of OPEB Contributions
Last Ten Years*
‐92-
Fiscal Year 2017-18 2018-19 2019-20 2020-21 2021-2022 2022-2023 Actuarially Determined Contribution (ADC) 564,577 $ 582,063 $ 588,161 $ 582,847 $ 549,584 $ 549,584 $ Contributions in relation to the ADC 673,038 744,210 719,379 1,046,550 1,034,864 883,007 Contribution deficiency (excess) (108,461) $ (162,147) $ (131,218) $ (463,703) $ (485,280) $ (333,423) $ Covered payroll 20,699,310 $ 21,602,500 $ 22,439,700 $ 23,695,500 $ 30,502,020 $ 28,565,459 $ Contributions as a percentage of covered payroll 3.3% 3.4% 3.2% 4.4% 3.4% 3.1% *Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information will be displayed up to 10 years as information becomes available. Fiscal year 2017-18 was the first year of implementation.
SUPPLEMENTARY INFORMATION
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NON‐MAJOR GOVERNMENTAL FUNDS
CITY OF LA MESA
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
‐93-
Housing
Rehabilitation/
CDBG Transportation Street
Administration Gas Tax Improvement Parking
Assets
Cash and investments 236,514 $ 1,829,781 $ - $ 641,087 $ Restricted:
Cash and investments - - - -
Receivables:
Accounts 1,319 135,137 - 2,908
Loans 117,017 - - -
Grants 27,716 - - -
Lease - - - -
Land held for resale - - - -
Total assets 382,566 $ 1,964,918 $ - $ 643,995 $
Liabilities
Accounts payable 7,500 $ - $ - $ 12,259 $
Salaries payable - - - 2,682
Due to other funds - - 9,152 -
Total liabilities 7,500 - 9,152 14,941
Deferred Inflows of Resources
Unearned revenue - housing rehab loans - 117,017 - -
Unavailable revenue - grants - - - -
Leases - - - -
Total deferred inflows of resources - 117,017 - -
Fund Balances
Restricted for:
General government - - - -
Public safety - - - -
Capital outlays - 1,964,918 - -
Community services - - - -
Community development 258,049 - - 629,054
Debt service - - - -
Unassigned - - (9,152) -
Total fund balances (deficit) 258,049 1,964,918 (9,152) 629,054 Total liabilities, deferred inflows of resources
and fund balances 382,566 $ 1,964,918 $ - $ 643,995 $
SPECIAL REVENUE FUNDS
(Continued)
‐94-
Community Public Supplemental
Environmental Service Safety County Drug Asset Law
Services Improvement Augmentation Housing Seizure Enforcement $ 115,255 62,166 $ 821,547 $ 555,486 $ 155,243 $ 444,876 $ - - - - - -
1,474 2,048 34,378 - 753 1,568
- - - - - -
- - - - - -
- - - - - -
- - - - - -
$ 116,729 64,214 $ 855,925 $ 555,486 $ 155,996 $ 446,444 $ $ - 8,127 $ - $ - $ - $ - $
- 8,529 - - - -
- - - - - -
- 16,656 - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- 47,558 - - - -
- - 855,925 - 155,996 446,444
- - - - - -
116,729 - - - - -
- - - 555,486 - -
- - - - - -
- - - - - -
116,729 47,558 855,925 555,486 155,996 446,444
$ 116,729 64,214 $ 855,925 $ 555,486 $ 155,996 $ 446,444 $
SPECIAL REVENUE FUNDS
CITY OF LA MESA
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
‐95-
Community
Service Public Safety CIP Donations
Grants Grants Grants Fund
Assets
Cash and investments 11,952 $ - $ - $ 7,002 $
Restricted:
Cash and investments - - - -
Receivables:
Accounts - - - -
Loans - - - -
Grants 4,963 584,052 1,115,364 -
Lease - - - -
Land held for resale - - - -
Total assets 16,915 $ 584,052 $ 1,115,364 $ 7,002 $
Liabilities
Accounts payable - $ 301,966 $ - $ - $
Salaries payable - 7,727 - -
Due to other funds - 338,684 356,294 -
Total liabilities - 648,377 356,294 -
Deferred Inflows of Resources
Unearned revenue - housing rehab loans - - - -
Unavailable revenue - grants - - - -
Leases - - - -
Total deferred inflows of resources - - - -
Fund Balances
Restricted for:
General government - - - 7,002
Public safety - - - -
Capital outlays - - 759,070 -
Community services 16,915 - - -
Community development - - - -
Debt service - - - -
Unassigned - (64,325) - -
Total fund balances (deficit) 16,915 (64,325) 759,070 7,002 Total liabilities, deferred inflows of resources
and fund balances 16,915 $ 584,052 $ 1,115,364 $ 7,002 $
SPECIAL REVENUE FUNDS
(Continued)
‐96-
DEBT
SERVICE
FUNDS
2006
CASP Road Maintenance PEG Transportation Housing Asset Certificates of Fund Fund Fund Fund Fund Participation
$ 2,982,422 88,615 $ 342,633 $ 439,012 $ 3,075,232 $ - $ - - - - - 149
11,721 - 3,049 21,279 12,718 -
- - - - 225,000 -
- - - - - -
- - - - 341,763 -
- - - - 8,350,000 -
$ 2,994,143 88,615 $ 345,682 $ 460,291 $ 12,004,713 $ 149 $ $ - 685 $ 7,971 $ - $ - $ - $
- - - - 2,045 -
- - - - - 4,556
- 685 7,971 - 2,045 4,556
- - - - 590,420 -
- - - 21,267 - -
- - - - 332,391 -
- - - 21,267 922,811 -
- - 337,711 439,024 - -
- - - - - -
- - - - - -
2,994,143 87,930 - - - -
- - - - 11,079,857 -
- - - - - -
- - - - - (4,407)
2,994,143 87,930 337,711 439,024 11,079,857 (4,407)
$ 2,994,143 88,615 $ 345,682 $ 460,291 $ 12,004,713 $ 149 $
SPECIAL REVENUE FUNDS
CITY OF LA MESA
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
‐97-
DEBT SERVICE
FUNDS
2016 Parks
Government Obligation Public Storm and
Refunding Bonds Building Drains Recreation
Assets
Cash and investments 3,891,644 $ 845,889 $ 137,809 $ - $ Restricted:
Cash and investments - - - 160,102
Receivables:
Accounts 27,881 - - -
Loans - - - -
Grants - - - 363,518
Lease - 344,078 - -
Land held for resale - - - -
Total assets 3,919,525 $ 1,189,967 $ 137,809 $ 523,620 $ Liabilities
Accounts payable - $ - $ 45,020 $ 854,192 $
Salaries payable - - - -
Due to other funds - - - 880,301
Total liabilities - - 45,020 1,734,493
Deferred Inflows of Resources
Unearned revenue - housing rehab loans - - - -
Unavailable revenue - grants - - - -
Leases 299,302 - - -
Total deferred inflows of resources 299,302 - - -
Fund Balances
Restricted for:
General government - - - -
Public safety - - - -
Capital outlays - 890,665 92,789 -
Community services - - - -
Community development - - - -
Debt service 3,919,525 - - -
Unassigned - - - (1,210,873)
Total fund balances (deficit) 3,919,525 890,665 92,789 (1,210,873) Total liabilities, deferred inflows of resources
and fund balances 3,919,525 $ 1,189,967 $ 137,809 $ 523,620 $
CAPITAL PROJECTS FUNDS
(Concluded)
‐98-
Total
Misc Capital Asset Non-Major
Civic Capital Management Governmental
Center Improvement Plan Funds
$ 317,676 92,599 $ 967,918 $ 18,062,358 $
- - - 160,251
- - - 256,233
- - - 342,017
- - - 2,095,613
- - - 685,841
- - - 8,350,000
$ 317,676 92,599 $ 967,918 $ 29,952,313 $
$ - - $ - $ 1,237,720 $
- - - 20,983
- - - 1,588,987
- - - 2,847,690
- - - 707,437
- - - 21,267
- - - 631,693
- - - 1,360,397
- - - 831,295
- - - 1,458,365
317,676 92,599 967,918 5,085,635
- - - 3,215,717
- - - 12,522,446
- - - 3,919,525
- - - (1,288,757)
317,676 92,599 967,918 25,744,226
$ 317,676 92,599 $ 967,918 $ 29,952,313 $
CAPITAL PROJECTS FUNDS
CITY OF LA MESA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-Major Governmental Funds
For the Year Ended June 30, 2023
‐99-
Housing
Rehabilitation/
CDBG Transportation Street
Administration Gas Tax Improvement Parking
Revenues:
Property taxes $ - - $ - $ - $
Other taxes - - - -
Licenses and permits - - - -
Fines and forfeitures - - - 128,676
Use of money and property - 886 - 386,479
Intergovernmental 2,316,447 196,029 1,812,487 -
Charges for services - - - -
Other revenues 28,245 - - -
Total revenues 2,316,447 225,160 1,812,487 515,155
Expenditures:
Current:
General government - - - 14,212
Police - - - 149,989
Fire - - - 980
Community development - 114,106 - 123,959
Community services - - - 10,185
Capital outlay - - - -
Debt service:
Principal retirement - - 499,988 -
Interest and fiscal charges - - 10,409 -
Total expenditures - 114,106 510,397 299,325
Excess (deficiency) of
revenues over (under) expenditures 2,316,447 111,054 1,302,090 215,830 Other financing sources (uses):
Transfers in - - - -
Transfers out (1,041,890) - (541,455) (41,300)
Lease acquisition - - - -
Total other financing sources (uses) (1,041,890) - (541,455) (41,300) Net change in fund balances 1,274,557 111,054 760,635 174,530 Fund balances (deficit), beginning of year 690,361 146,995 (769,787) 454,524 Fund balances (deficit), end of year $ 1,964,918 258,049 $ (9,152) $ 629,054 $
SPECIAL REVENUE FUNDS
(Continued)
‐100-
Community Public Supplemental
Environmental Service Safety County Drug Asset Law
Services Improvement Augmentation Housing Seizure Enforcement $ - - $ - $ - $ - $ - $
- - 415,754 - - -
- - - - - -
- - - - 16,298 -
- (25,849) 19,205 - (7,476) 6,884
- 15,372 - - - 165,271
- 330,010 - - - -
9,465 750 - - - -
9,465 320,283 434,959 - 8,822 172,155
- 588,066 - - - -
- - - - 10,357 -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- 588,066 - - 10,357 -
9,465 (267,783) 434,959 - (1,535) 172,155
- - - - - -
- - - - - -
- - - - - -
- - - - - -
9,465 (267,783) 434,959 - (1,535) 172,155
107,264 315,341 420,966 555,486 157,531 274,289
$ 116,729 47,558 $ 855,925 $ 555,486 $ 155,996 $ 446,444 $
SPECIAL REVENUE FUNDS
CITY OF LA MESA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-Major Governmental Funds
For the Year Ended June 30, 2023
‐101-
Community
Service Public Safety CIP Donations
Grants Grants Grants Fund
Revenues:
Property taxes $ - - $ - $ - $
Other taxes - - - -
Licenses and permits - - - -
Fines and forfeitures 964 - - -
Use of money and property - - - -
Intergovernmental 931,672 50,904 1,815,563 -
Charges for services - - - -
Other revenues - - - -
Total revenues 932,636 50,904 1,815,563 -
Expenditures:
Current:
General government 92,825 - - -
Police 922,262 - - -
Fire - - - -
Community development - - - -
Community services - - - -
Capital outlay - - - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 1,015,087 - - -
Excess (deficiency) of
revenues over (under) expenditures (82,451) 50,904 1,815,563 - Other financing sources (uses):
Transfers in - - - -
Transfers out - - (1,118,749) -
Lease acquisition - - - -
Total other financing sources (uses) - - (1,118,749) -
Net change in fund balances (82,451) 50,904 696,814 -
Fund balances (deficit), beginning of year 18,126 (33,989) 62,256 7,002 Fund balances (deficit), end of year $ (64,325) 16,915 $ 759,070 $ 7,002 $
SPECIAL REVENUE FUNDS
(Continued)
‐102-
DEBT SERVICE
FUNDS
2006
CASP Road Maintenance PEG Transportation Housing Asset Certificates of Fund Fund Fund Fund Fund Participation
$ - - $ - $ - $ - $ - $
- - 132,239 - - -
- - - - - -
- - - - - -
99,239 - - (660) 106,795 293
576,940 - - 432,993 43,999 -
- 19,048 - - - -
- - - - 85,675 -
676,179 19,048 132,239 432,333 236,469 293
- - 101,193 - - 4,701
- - - - - -
- - - - - -
- 1,363 - - 192,195 -
- - - - - -
- - 87,152 - - -
- - 26,957 - - 355,000
- - 59 - - 99,071
- 1,363 215,361 - 192,195 458,772
676,179 17,685 (83,122) 432,333 44,274 (458,479)
- - - - - 454,071
- - - - - -
- - 80,440 - - -
- - 80,440 - - 454,071
676,179 17,685 (2,682) 432,333 44,274 (4,408)
2,317,964 70,245 340,393 6,691 11,035,583 1
$ 2,994,143 87,930 $ 337,711 $ 439,024 $ 11,079,857 $ (4,407) $
SPECIAL REVENUE FUNDS
CITY OF LA MESA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Non-Major Governmental Funds
For the Year Ended June 30, 2023
‐103-
DEBT SERVICE
FUNDS
2016 Parks
Government Obligation Public Storm and
Refunding Bonds Building Drains Recreation
Revenues:
Property taxes $ - 1,794,982 $ - $ - $
Other taxes - - - -
Licenses and permits - - - 208,338
Fines and forfeitures - - - -
Use of money and property 80,354 (10,622) - 20,276
Intergovernmental - - - 363,518
Charges for services - - - -
Other revenues - - - -
Total revenues 80,354 1,784,360 - 592,132
Expenditures:
Current:
General government - 8,074 - -
Police - - - -
Fire - - - -
Community development - - - -
Community services - - - -
Capital outlay 15,238 - 173,627 3,133,082
Debt service:
Principal retirement - 840,000 - -
Interest and fiscal charges - 728,950 - -
Total expenditures 15,238 1,577,024 173,627 3,133,082
Excess (deficiency) of
revenues over (under) expenditures 65,116 207,336 (173,627) (2,540,950) Other financing sources (uses):
Transfers in - - 114,426 143,420
Transfers out (86,199) - - -
Lease acquisition - - - -
Total other financing sources (uses) (86,199) - 114,426 143,420 Net change in fund balances (21,083) 207,336 (59,201) (2,397,530) Fund balances (deficit), beginning of year 911,748 3,712,189 151,990 1,186,657 Fund balances (deficit), end of year $ 890,665 3,919,525 $ 92,789 $ (1,210,873) $
CAPITAL PROJECTS FUNDS
(Concluded)
‐104-
Total
Misc Capital Asset Non-Major
Civic Capital Management Governmental
Center Improvement Plan Funds
$ - - $ - $ $ 1,794,982
- - - 547,993
- - - 208,338
- - - 145,938
- - - 675,804
- - - 8,721,195
- - - 349,058
- - - 124,135
- - - 12,567,443
- - - 809,071
- - - 1,082,608
- - - 980
- - - 431,623
- - - 10,185
- - - 3,409,099
- - - 1,721,945
- - - 838,489
- - - 8,304,000
- - - 4,263,443
- - 86,200 798,117
- - - (2,829,593)
- - - 80,440
- - 86,200 (1,951,036)
- - 86,200 2,312,407
317,676 92,599 881,718 23,431,819
$ 317,676 92,599 $ 967,918 $ $ 25,744,226
CAPITAL PROJECTS FUNDS
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INTERNAL SERVICE FUNDS
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CITY OF LA MESA
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
-105-
Employee Workers' Equipment Liability Risk
Benefits Compensation Replacement Financing Total
Assets
Current assets:
Cash and investments - $ 5,516,682 $ 1,147,306 $ 762,229 $ 7,426,217 $ Accounts receivable, net - 29,741 15,241 463 45,445
Total current assets - 5,546,423 1,162,547 762,692 7,471,662 Noncurrent assets:
Restricted cash and investments 12,801 135,796 - - 148,597 Capital assets:
Depreciable, net - - 7,211,233 - 7,211,233
Total capital assets - - 7,211,233 - 7,211,233
Total noncurrent assets 12,801 135,796 7,211,233 - 7,359,830 Total assets 12,801 5,682,219 8,373,780 762,692 14,831,492 Liabilities
Current liabilities:
Accounts payable 663,605 1,494,848 23,438 2,923 2,184,814 Salaries payable - 1,641 - 1,641 3,282
Due to other funds 126,198 - - - 126,198
Interest payable - - 10,528 - 10,528
Long-term liabilities - due in one year - - 184,935 - 184,935 Total current liabilities 789,803 1,496,489 218,901 4,564 2,509,757 Noncurrent liabilities:
Long-term liabilities - due in more than one year - - 645,171 - 645,171 Claims payable - 3,686,847 - 1,510,473 5,197,320
Total noncurrent liabilities - 3,686,847 645,171 1,510,473 5,842,491 Total liabilities 789,803 5,183,336 864,072 1,515,037 8,352,248 Net Position
Net investment in capital assets - - 6,381,127 - 6,381,127 Restricted 12,801 135,796 - - 148,597
Unrestricted (789,803) 363,087 1,128,581 (752,345) (50,480) Total net position (deficit) (777,002) $ 498,883 $ 7,509,708 $ (752,345) $ 6,479,244 $
CITY OF LA MESA
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Service Funds
For the Year Ended June 30, 2023
-106-
Employee Workers' Equipment Liability Risk
Benefits Compensation Replacement Financing Total
Operating Revenues:
Charges for services 4,222,305 $ 1,151,784 $ 1,800,220 $ - $ 7,174,309 $ Other operating revenues 77,990 7,346 - 9,563 94,899
Total operating revenues 4,300,295 1,159,130 1,800,220 9,563 7,269,208 Operating Expenses:
Salaries and payroll - 199,930 - 199,994 399,924
Professional services 4,617,527 1,907 1,978,743 272,397 6,870,574 Supplies, materials and miscellaneous - 578,214 - - 578,214 Insurance premiums and settlements - 1,322,423 - 2,212,544 3,534,967 Depreciation - - 812,950 - 812,950
Amortization - - 51,028 - 51,028
Total operating expenses 4,617,527 2,102,474 2,842,721 2,684,935 12,247,657 Operating income (loss) (317,232) (943,344) (1,042,501) (2,675,372) (4,978,449) Nonoperating Revenues (Expenses):
Investment income (loss) - (228,575) (42,634) (106,095) (377,304) Interest (expense) - - (32,172) - (32,172)
Gain (loss) on disposal of assets - - (142,483) - (142,483) Total nonoperating income (loss) - (228,575) (217,289) (106,095) (551,959) Income (loss) before transfers (317,232) (1,171,919) (1,259,790) (2,781,467) (5,530,408) Transfers:
Transfers in - - - 2,196,000 2,196,000
Total transfers - - - 2,196,000 2,196,000
Change in net position (317,232) (1,171,919) (1,259,790) (585,467) (3,334,408) Net position (deficit), beginning of year (459,770) 1,670,802 8,769,498 (166,878) 9,813,652 Net position (deficit), end of year (777,002) $ 498,883 $ 7,509,708 $ (752,345) $ 6,479,244 $
CITY OF LA MESA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023
-107-
Employee Workers' Equipment Liability Risk
Benefits Compensation Replacement Financing Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds 4,222,305 $ 1,128,858 $ 1,788,414 $ - $ 7,139,577 $ Cash payments to suppliers for goods and services - 914,656 (2,156,859) (690,329) (1,932,532) Cash payments to employees for services - (201,060) - (201,124) (402,184) Insurance premiums and settlements (4,923,299) (2,558,846) - (1,726,735) (9,208,880) Other operating revenues 77,990 7,346 - 151,858 237,194 Net Cash Provided by (Used for) Operating Activities (623,004) (709,046) (368,445) (2,466,330) (4,166,825)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in - - - 2,196,000 2,196,000
Implicit financing 126,198 - - - 126,198
Net Cash Provided By Noncapital Financing Activities 126,198 - - 2,196,000 2,322,198
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets - - (1,189,793) - (1,189,793) Payment of interest - - (32,172) - (32,172)
Payments on long term liabilities - - (284,124) - (284,124) Net Cash Provided by (Used for) Capital and Related Financing Activities - - (1,506,089) - (1,506,089)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income - (228,575) (42,634) (106,095) (377,304) Net Cash Provided by (Used for) Investing Activities - (228,575) (42,634) (106,095) (377,304) Net Increase (Decrease) in Cash and Cash Equivalents (496,806) (937,621) (1,917,168) (376,425) (3,728,020) Cash and Cash Equivalents - beginning of the year 6,590,099 509,607 3,064,474 1,138,654 11,302,834 Cash and Cash Equivalents - end of the year $ 5,652,478 12,801 $ 1,147,306 $ 762,229 $ 7,574,814 $
RECONCILIATION TO STATEMENT OF NET POSITION
Current assets:
Cash and cash equivalents - $ 5,516,682 $ 1,147,306 $ 762,229 $ 7,426,217 $ Cash and cash equivalents - restricted 12,801 135,796 - - 148,597 Total cash and cash equivalents 12,801 $ 5,652,478 $ 1,147,306 $ 762,229 $ 7,574,814 $ Reconciliation of operating income (loss) to net cash provided (used) by operating activities:
Operating income (loss) (317,232) $ (943,344) $ (1,042,501) $ (2,675,372) $ (4,978,449) $ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation expense - - 812,950 - 812,950
Amortization expense - - 51,028 - 51,028
Change in assets and liabilities:
Accounts receivable - (22,926) (11,806) 142,295 107,563 Accounts payable (305,772) 1,494,777 (178,116) (417,932) 592,957 Claims payable - (1,236,423) - 485,809 (750,614)
Salaries and benefits payable - (1,130) - (1,130) (2,260) Net Cash Provided by (Used for) Operating Activities (623,004) $ (709,046) $ (368,445) $ (2,466,330) $ (4,166,825) $ Noncash Financing Activities
Gain (loss) on disposition of assets - $ - $ (142,483) $ - $ (142,483) $
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REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: April 22, 2025
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF LA MESA ADOPTING A FIRE HAZARD SEVERITY
ZONES MAP AS REQUIRED BY THE STATE OF
CALIFORNIA
ISSUING DEPARTMENT: Fire
SUMMARY:
Issues:
Pursuant to Government Code Sections 51178 and 51179, Should the City Council approve the introduction and First Reading of an ordinance of the La Mesa Municipal Code to include the March 24, 2025 the State of California (CalFire) updates to the Fire Hazard Severity Zone Map? Recommendation:
Staff recommends that the City Council:
1. Moves to introduce the proposed Ordinance;
2. Directs the City Clerk to read the Ordinance by title only; and
3. Directs the second reading of the Ordinance to be placed on the May 13, 2025, City Council agenda.
Fiscal Impact:
There is no fiscal impact with the adoption of the proposed ordinance.
Implementation of the ordinance is absorbed by each affective department's budget through their respective annual work plans.
City’s Strategic Goals:
Maintain a community where residents and visitors feel safe.
Report to Mayor and Councilmembers
Date: April 22, 2025
Page: 2 of 3
Environmental Review:
The proposed ordinance amendment is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) as it is an organizational or administrative activity of government that will not result in direct or indirect physical changes in the environment.
BACKGROUND:
The State of California (CalFire) regularly reviews and updates the Fire Hazard Severity Zone (FHSZ) maps within local responsibility areas in accordance with Government Code Sections 51178 and 51179. A Fire Hazard Severity Zone (FHSZ) is a geographic area classified by the State as having a moderate, high, or very high wildfire hazard. CalFire uses the best available science and data to develop and field test a model that serves as the basis of zone assignments. The model evaluates the probability of the area burning and potential fire behavior in the area. Modeling factors include fire history, vegetation, flame length, blowing embers, proximity to wildland, terrain, and weather patterns. The updated FHSZ maps for the local responsibility areas released in March 2025 are inclusive of burn probabilities for wildland areas from 2020 fire data. The La Mesa FHSZ is attached for reference.
The purpose of these designations is to increase life safety and reduce the potential for structure ignitability by reducing fuels (defensible space) and improving construction features that would prevent ignition and ember intrusion, thereby reducing the threat of life or structure loss during a wildfire event. City staff manage fuel reduction by Fire Inspection protocols, and through building permit plan checks of proposed structures adjacent to the FHSZ.
DISCUSSION:
On March 24, 2025, CalFire released an updated FHSZ map for the City of La Mesa.
On April 4, 2025, the map was posted on the City’s website and, in accordance with California Government Code Section 51178.5, was made available for public review and comment from April 4th, 2025, until May 5th, 2025. Any comments will be brought forward at the May 13th City Council meeting.
Government Code Section 51179 requires a local agency to adopt, by ordinance, these Fire Hazard Severity Zone determinations within 120 days of receiving them from CalFire.
Staff recommend the second reading of the ordinance at the May 13th meeting, at which point the City Council will have an opportunity to approve the final version of the
Report to Mayor and Councilmembers
Date: April 22, 2025
Page: 3 of 3
ordinance. The ordinance would become effective on June 12, 2025, 30 days after adoption.
CONCLUSION:
The State of California (CalFire) regularly reviews and updates the FHSZ maps within local responsibility areas in accordance with Government Code Sections 51178 and 51179. On March 24, 2025, CalFire released an updated FHSZ map for the City of La Mesa. As such, staff recommends that the City Council moves to introduce the proposed Ordinance, directs the City Clerk to read the Ordinance by title only, and directs the second reading of the Ordinance to be placed on the May 13, 2025, City Council Agenda.
Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Bent Koch
City Manager Fire Chief
Attachments:
Fire Hazard Safety Zone Map
Draft Ordinance
City and County boundaries as of 10/22/24 (CA Board of Equalization) CAL FIRE State Responsibility Areas (SRA25_1)
CAL FIRE Fire Hazard Severity Zones (FHSZSRA23_3, FHSZLRA_25_1) Data Sources:
Daniel Berlant, State Fire Marshal, CA Department of Forestry and Fire Protection Joe Tyler, Director/Fire Chief, CA Department of Forestry and Fire Protection Wade Crowfoot, Secretary for Natural Resources, CA Natural Resources Agency The State of California and the Department of Forestry and Fire Gavin Newsom, Governor, State of California Protection make no representations or warranties regarding the accuracy of data or maps. Neither the State nor the Department shall be liable under any circumstances for any direct, special, incidental, or consequential damages with respect to any claim by any user or third party on account of, or arising from, the use of data or maps. and other relevant factors including areas where winds
have been identified by the Office of the State Fire Marshal as a major cause of wildfire spread.
statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. Moderate, high, and very high fire hazard severity zones shall be based on fuel loading, slope, fire weather, Government Code section 51178 requires the State Fire
Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent Waterbody
Unzoned LRA
Incorporated City
Projection: NAD 83 California Teale Albers
Scale: 1:28,000 at 11" x 17"
Km 0 1 2
Mi 0 1
Very High High Moderate
Fire Hazard Severity Zones (FHSZ) in Local Responsibility Area (LRA), as Identified by the State Fire Marshal
La Mesa
8 125
94 UNINCORPORATED
SAN DIEGO CO.
EL CAJON
LEMON GROVE
SAN DIEGO
SAN DIEGO
March 24, 2025
As Identified by the
State Fire Marshal
Local Responsibility Area
Fire Hazard Severity Zones
CITY OF LA MESA – SAN DIEGO COUNTY
ORDINANCE NO. 2025-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA MESA
ADOPTING A FIRE HAZARD SEVERITY ZONES MAP AS REQUIRED BY THE
STATE OF CALIFORNIA
WHEREAS, as recommended by the California Department of Forestry and Fire Protection, and pursuant to Government Code 51178, this City Council finds and determines that it is necessary and appropriate to adopt a fire hazard severity zones map.
NOW, THEREFORE, BE IT AND IT IS HEREBY ORDAINED by the City Council of the City of La Mesa, California as follows:
SECTION 1: The draft fire hazard severity zones map attached hereto as Exhibit “A” is hereby adopted by the City Council and shall be designated as “City Fire Hazard Severity Zones Map.”
SECTION 2. This Ordinance shall be effective 30 days after its adoption and the City Clerk shall certify to the adoption of this Ordinance. The City Clerk is hereby authorized to use summary publication procedures pursuant to Government Code Section 36933 utilizing a newspaper of general circulation published in the City of La Mesa.
INTRODUCED AND READ at a Regular meeting of the City Council of the City of La Mesa, California, held the 22nd day of April 2025, and thereafter PASSED AND ADOPTED at a Regular meeting of said City Council held the 13th day of May 2025, by the following vote, to wit:
AYES:
NOES:
ABSENT:
APPROVED:
__________________________
MARK ARAPOSTATHIS, Mayor
ATTEST:
___________________________________
MEGAN WIEGELMAN, CMC, City Clerk
CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and correct copy of Ordinance No. 2025- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited and that the same has been duly published according to law.
MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)
Fire Hazard
Severity Zones
This is a State mandated notification process
for informing the public on the current update
of the California State Fire Marshal’s (CAL FIRE)
Fire Hazard Severity Zone maps.
What are the Zones?
• The maps are required by
Government Code 51178 & 51179
• Identify levels of fire hazard
• • 3 levels (Moderate, High, & Very High)
Fire Hazard Severity Zones
How are the Zones determined?
• CAL FIRE used the best available science and data to
develop, and field test a model that served as the
basis of zone assignments. The model evaluated the
probability of the area burning and potential fire
behavior in the area.
• Factors: fire history, vegetation, flame length,
blowing embers, proximity to wildland, terrain, and
weather
Fire Hazard Severity Zones
What is the map for?
• Building standards for new construction in the
Wildland-Urban Interface (California Building
Code Chapter 7A)
• Property development standards such as road
widths, water supply and signage (Fire Safe
Regulations)
• Defensible Space Requirements (Government
Code 51182)
• Natural hazard real estate disclosure
Fire Hazard Severity Zones
Fire Hazard Severity Zones
Current Fire Hazard Severity
Zone Classifications
New 2025 Fire Hazard
Severity Zone Classifications
Fire Hazard Severity Zone Maps
https://www.cityoflamesa.us/1868/Fire-Hazard-Severity-Zone-Maps Heartland Fire & Rescue
https://www.heartlandfire.org/
Fire Hazard Severity Zones
Questions?
REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: April 22, 2025
SUBJECT: REQUEST FOR AUTHORIZATION TO INITIATE THE
NOTIFICATION PROCESS REQUIRED BY
PROPOSITION 218 AND SCHEDULE A PUBLIC
HEARING FOR A PROPOSED INCREASE IN EDCO
WASTE RATES TO BE EFFECTIVE JULY 1, 2025
ISSUING DEPARTMENT: Public Works
SUMMARY:
Issue:
Should the City Council authorize staff to initiate the notification process required by Proposition 218 and schedule a public hearing for a proposed increase in EDCO waste rates to be effective July 1, 2025?
Recommendation:
That the City Council authorize staff to initiate the notification process required by Proposition 218 and schedule a public hearing for a proposed increase in EDCO waste rates, which, if approved, would be effective July 1, 2025.
Fiscal Impact:
The cost to print and mail a notice to all 15,030 affected La Mesa property owners will be approximately $14,000. Funds were budgeted and are available in the Environmental Services Fund in accounts 20864170301000000 and 20864180301000000 for this purpose. No General Fund monies will be used.
City’s Strategic Goals:
Ensure a strong financial outlook through careful planning, sustainable service levels, and fiscal sustainability.
Report to Mayor and Councilmembers
Date: April 22, 2025
Page: 2 of 5
Invest in infrastructure to serve the needs of the community.
Climate Action Plan Reduction Strategy:
This item supports the implementation of CAP measures WR-1 and WR-3, which advance the collection of recyclables and organic waste for recycling in an effort to reduce the amount of waste being sent to the landfill. WR-1: Organic Waste Diversion
WR-3: Increase Waste Diversion and Encourage Circular Economy BACKGROUND:
History
Waste rates are adjusted periodically upon request by EDCO and following approval by the City Council in accordance with the Proposition 218 process. The last rate adjustment occurred in 2023 and was effective for a two-year period from July 1, 2023, through June 30, 2025. The Proposition 218 process requires written notification be given to all affected property owners and that those property owners be given a 45-day period in which to submit written protests if they oppose the proposed rate adjustments. The basis for the evaluation of a rate adjustment includes the following four factors:
1. Disposal rates
2. Disposed tonnage
3. Consumer Price Index
4. Commodity values
EDCO’s current service provides for trash collection (“gray bins”), organic waste (“green bins”), and recycling (“blue bins”).
Recycling Market Dynamics
The export of recyclable materials is a key component of California's recycling infrastructure. Ongoing impacts of a declining global market value for some recyclables, coupled with the need to reduce contamination levels in recycling streams, have resulted in significant challenges for the solid waste and recycling industry, local governments, and Californians. Alternate markets for recyclables have developed over the past few years, but the commodity value in the future may be impacted by potential worldwide economic changes. If the commodity value of recyclables decreases in the future, it may result in higher-than-anticipated rates during the next cycle of solid waste rate review in 2027.
Report to Mayor and Councilmembers
Date: April 22, 2025
Page: 3 of 5
California Waste and Recycling Requirements
Assembly Bill 939 – In 1989, California legislators adopted AB 939, which requires California jurisdictions divert 50% of waste away from landfills.
Assembly Bill 341 – In 2011, the State enacted AB 341, which set mandatory recycling requirements for commercial customers and requires local jurisdictions to implement a recycling program.
Senate Bill 1383 – In September 2016, SB 1383 establishing methane emissions reduction targets in a statewide effort to reduce emissions from short-lived climate pollutants in various sectors of California’s economy. Methane from decomposing organic waste in landfills is a significant source of greenhouse gas (GHG) emissions; therefore, SB 1383 requires organic waste disposal in California to be 75% below 2014 levels by 2025. Additionally, 20% of edible food for human consumption that is currently being landfilled must be recovered by 2025. Cities and waste haulers were required to have the following in place since January 1, 2022 with compliance measures in place since January 1, 2024:
Organic waste collection services to all residents and businesses Edible food recovery programs
Education and outreach to the community
Procurement of recycled organic products
Compliance monitoring, enforcement, and reporting
On March 22, 2022, City Council adopted an ordinance adding La Mesa Municipal Code Chapter 7.30 Mandatory Organics Recycling and Edible Food Recovery and amending Chapter 7.20 Refuse Collection and Chapter 7.22 Mandatory Recycling to comply with SB 1383. The City continues to implement programs that help the City meet State mandate requirements, including the rollout of outdoor recycling and organic waste recycling at La Mesa schools in 2024.
DISCUSSION:
Draft Proposed Rates
EDCO’s proposed rate adjustment request for Fiscal Years (FY) 26 and 27 was received on March 5, 2025. If approved, the solid waste rates would be in effect for a two-year period starting on July 1, 2025.
Supporting data was submitted with the rate adjustment request. The agreement with EDCO allows the City to perform specific rate review procedures in consideration of all
Report to Mayor and Councilmembers
Date: April 22, 2025
Page: 4 of 5
requests for rate adjustments. The purpose of the rate review is to ensure that the rates charged to its residents are appropriate and equitable. The City engaged Rogers, Anderson, Malody & Scott, LLP, Certified Public Accounts, to perform an audit of EDCO’s accounting records, in accordance with the criteria established in the agreement. The firm assisted the City in the review and validation of the proposed rate increases. The results of this audit review will be presented as part of the supporting materials for the public hearing.
The first component of the rate adjustment would address current trash, recycling, and organic waste services and is consistent with past EDCO rate reviews. EDCO is proposing an increase of $1.31 per month (4.8 percent) to the current residential rate of $27.53, for a total of $28.84 per month. EDCO is also proposing an increase of $7.20 per month (5.9 percent) to the current commercial rate of $122.94, for a total of $130.14 per month. Therefore, the basic residential bill would be an additional $24.84 a year; the basic annual commercial bill would be an additional $98.28 a year.
The primary factors contributing to the increased rates include disposal rates, disposed tonnage, commodity value, and the Consumer Price Index. Proposed rates vary throughout San Diego County due to such factors as one-year versus two-year rate cycles and/or no implemented organic waste recycling program. As of April 2025, the City of La Mesa has been identified to have the second lowest residential rate and the lowest commercial rate (Attachment B) in the County.
Proposition 218 Noticing Process
To comply with Proposition 218, an agency increasing rates for water, sewer, or trash collection must do the following:
Identify the parcels upon which the fee or charge will be imposed Calculate the fee or charge
Provide written notice by mail to the record owner of each parcel upon which the fee or charge will be imposed
The notice must include the amount of the fee or charge; the basis upon which the fee or charge was calculated; the reason for the fee or charge; and the date, time, and location of a public hearing on the proposed fee or charge Conduct a public hearing not less than 45 days after mailing the notice At the public hearing, consider all protests against the fee or charge If written protests against the proposed fee or charge are presented by a majority of owners of the identified parcels, the agency cannot impose the fee or charge The draft notice is provided as Attachment A.
Report to Mayor and Councilmembers
Date: April 22, 2025
Page: 5 of 5
Notices will be mailed to property owners no later than May 10, 2025, in order to meet the 45-day notification period. The public hearing will be held on June 24, 2025; the proposed rate adjustments would be effective for a two-year period beginning July 1, 2025, through June 30, 2027.
CONCLUSION:
It is recommended that the City Council authorize staff to initiate the notification process required by Proposition 218 and schedule a public hearing for a proposed increase in EDCO waste rates, which, if approved, would be effective July 1, 2025.
Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Michael Throne, PE
City Manager Director of Public Works
____________________________
Hilary Ego
Environmental Program Manager
____________________________
Serena Lee
Environmental Analyst II
Attachments: A – Draft Proposition 218 Notice
B – San Diego County Franchise City Proposed Rates
City of La Mesa
Solid Waste Collection
Proposed Monthly Service Rates
Effective July 1, 2025
Through June 30, 2027
The following table shows the current and
proposed monthly rates for basic residential and
commercial solid waste collection service. Your
specific service level may not be reflected.
Current
Monthly
Rate
Proposed
Monthly
Rate
Residential Service:
Base rate$27.53$28.84
Commercial Service:
3-yard bin once per
week
$122.94$130.14
This mailing serves as notice to property owners
about a Public Hearing to be held on Tuesday,
June 24, 2025. At the Public Hearing, the City
Council will consider a proposed rate increase for
residential and commercial trash collection in the
City of La Mesa.
If you have questions about the proposed rate
increase or the process for submitting a written
protest, call the City of La Mesa at 619.667.1166.
NOTICE OF
PUBLIC HEARING
ON PROPOSED RATE
INCREASE FOR
RESIDENTIAL AND COMMERCIAL TRASH COLLECTION
Tuesday, June 24, 2025
6:00 PM
La Mesa City Hall
Council Chambers
8130 Allison Avenue
La Mesa, CA 91942
City of La MesaOffice of the City Clerk8130 Allison AvenueLa Mesa, CA 91942 If you are the property owner and you
have a tenant who is responsible for
the refuse collection bill, please
forward this notice to the tenant.
Who Should I Call With Questions?
Notice of Public Hearing
In compliance with Article XIII D of the California
State Constitution and the
Proposition 218 Omnibus Implementation Act,
the City of La Mesa is hereby notifying all
affected property owners of a proposed rate
increase for residential and commercial solid
waste collection for City of La Mesa customers.
The La Mesa City Council will consider the
proposed rate increase at a Public Hearing on
Tuesday, June 24, 2025, at 6:00 p.m. The Public
Hearing will be conducted in the City Council
Chambers of La Mesa City Hall, 8130 Allison
Avenue, La Mesa. All interested persons are
invited to attend and participate in the public
meeting. The meeting may be viewed live on
Cox Cable Channel 24 (within La Mesa City
limits), AT&T U-Verse Channel 99 (in the San
Diego Region), Zoom webinar
(https://us06web.zoom.us/j/84472650722), the
City’s website (www.cityoflamesa.us), or
Facebook Live (www.facebook.com/lamesaca).
At the Public Hearing, the City Council will hear
and consider all testimony concerning the
proposed increases to the solid waste rates. If
you oppose the proposed rate increase, your
protest must be submitted in writing to be
considered. Oral comments at the Public
Hearing will not qualify as a formal protest
unless accompanied by a written protest. If
written protests are submitted by a majority of
affected property owners, the proposed rate
increases may not be implemented.
Protests must be submitted in writing to the City
Clerk’s office by noon on Tuesday, June 24, 2025.
Owners of multiple properties must file a separate
written protest for each property. Only one written
protest per parcel will be accepted.
Protests sent by e-mail or fax will not be accepted.
Protests received after the Public Hearing is closed
also will not be accepted.
Written protests must contain a statement
indicating your opposition to the rate increase, the
Accessor Parcel Number (APN) of the property
subject to the proposed rates, the EDCO service
address, and the printed name and the signature of
the property owner or rate paying tenant. Send your
written protest to:
City of La Mesa
Office of the City Clerk
8130 Allison Avenue
La Mesa, CA 91942
If you are the property owner and you have a
tenant who is responsible for the refuse
collection bill, please forward this notice to the
tenant.
The City of La Mesa encourages the participation of
disabled individuals in the services, activities, and
programs provided by the City. Individuals with
disabilities who require reasonable accommodation
to participate in City Council meetings should
contact the City’s Americans with Disabilities Act
(ADA) Coordinator at 619.667.1175.
EDCO Disposal Corporation provides solid waste
disposal, recycling services, and organic waste
recycling services in the City of La Mesa under a
franchise agreement. These services include the
collection, transfer, processing, and disposal of all
solid waste, recyclables, and organic waste
generated at all residential and commercial
properties located in the City of La Mesa.
In an effort to stabilize trash and recycling rates paid by EDCO customers in La Mesa over the long term,
the La Mesa City Council began adopting multipleyear rates in 1997.
The current solid waste rates have been in effect
since July 1, 2023.
In accordance with the franchise agreement, EDCO
is required to submit a written request for any rate
adjustments for the upcoming fiscal year.
Prior to presenting any new rates for Council
consideration, the City contracts with an
independent accounting firm to perform certain
agreed-upon procedures on EDCO’s accounting
records. This work includes reviewing detailed
worksheets that track EDCO’s costs and revenues
for each rate component. The worksheets are
ultimately used to calculate the proposed rates. The
purpose of having the agreed-upon-procedures
performed is to assist City staff in determining the
appropriateness of rates charged to La Mesa’s
citizens and businesses for the collection of trash
and recyclable materials.
Following the independent accountant’s work,
EDCO and City staff, with assistance from the
accountants, negotiate appropriate final rates for the
City Council to consider during a Public Hearing. If
approved at the June 24, 2025 Public Hearing, rate
adjustments will be effective starting July 1, 2025.
The proposed rate adjustments are needed to fund
cost increases for collecting, processing, and
disposing of solid waste, labor and equipment costs,
fuel charges, recyclable collection and processing,
public education, and other state-mandated landfill
diversion programs.
Prop. 218 Protest Form
By signing the form below, I protest the
proposed rate increase for solid waste
collection and affirm under penalty of law that
I am the owner or authorized representative
of the owner of the below parcel.
Parcel Information
Assessor’s Parcel ID:
________________________________
Street Address:
________________________________
City, State, Zip code:
________________________________
Statement
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Submitted By:
Print Owner Name:
____________________________
If the above is not an individual(s), e.g. an
LLC, Trust, Corporation, etc.:
Print Authorized Signatory:
__________________________________
Signature:
__________________________________
Date: _____________________________
Public Hearing Information
Why are Solid Waste and Recycling
Rates Increasing?
Notification
-10-
EXHIBIT A: San Diego County Franchise City Rates Proposed July 1, 2025 Current/ Current/
Proposed Effective Proposed Effective
City Rate Date City Rate Date
National City $ Proposed 7/1/25 La Mesa 27.66 1 $ Proposed 7/1/25 130.14 La Mesa1 Proposed 7/1/25 Encinitas 28.84 135.66 Proposed 7/1/25 El Cajon Effective 1/1/25 Solana Beach 137.93 29.10 Proposed 7/1/25 Coronado Proposed 7/1/25 Lemon Grove 31.11 1 Proposed 7/1/25 138.54 Lemon Grove1 Proposed 7/1/25 Escondido 31.51 Effective 1/1/25 141.41 Escondido Effective 1/1/25 Poway 31.52 Proposed 7/1/25 141.88 Solana Beach 31.60 Proposed 7/1/25 Coronado 152.77 Proposed 7/1/25 Carlsbad2 Projected 7/1/25 Del Mar 31.67 Proposed 7/1/25 153.30 Encinitas Proposed 7/1/25 Carlsbad 32.05 2 Projected 7/1/25 153.58 Poway Proposed 7/1/25 San Marcos 154.66 Proposed 7/1/25 32.23 Santee Effective 1/1/25 National City 155.01 32.92 Proposed 7/1/25 Del Mar Proposed 7/1/25 Chula Vista 164.85 33.83 Effective 9/1/24 San Marcos Proposed 7/1/25 Oceanside 33.95 Effective 1/1/25 178.14 Oceanside Effective 1/1/25 Vista 34.42 Proposed 7/1/25 179.93 Chula Vista Effective 9/1/23 Imperial Beach 207.82 35.02 Proposed 7/1/25 Vista Proposed 7/1/25 El Cajon 36.97 Effective 1/1/25 276.92 Imperial Beach 43.34 Proposed 7/1/25 Santee Effective 1/1/25 306.48 City of San Diego 53.00 Proposed 7/1/25 City of San Diego - Proposed 7/1/25 County Average 33.93 $ County Average 161.61 $
High 53.00 $ High 306.48 $
Median 32.14 Median 153.44
Low 27.66 Low -
1 2-year fixed rate
2 Actual may be higher than projected
Residential Commercial
DRAFT
SUBJECT TO
CHANGE DRAFT
REQUEST FOR AUTHORIZATION TO INITIATE THE NOTIFICATION
PROCESS REQUIRED BY PROPOSITION 218 AND SCHEDULE A
PUBLIC HEARING FOR A PROPOSED INCREASE IN EDCO WASTE
RATES TO BE EFFECTIVE JULY 1, 2025
April 22, 2025
City Council
Key Components of Rate Review
1. Proposition 218
Notification mailed
2. Independent Rate
Review by accounting
firm
3. Public Hearing on
June 24, 2025
Rates
Residential Rate
• 5% increase ($1.31/month)
• Total base rate $28.84/month
Commercial Rate
• 6% increase ($7.20/month)
• Total base rate $130.14
Questions?
Thank You
[email protected]