CITY OF MENIFEE
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
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For the Year Ended June 30, 2012201320142015REVENUESTaxes 16,774,978$ 17,180,634$ 20,853,483$ 24,744,819$ Licenses and permits 1,811,432 2,627,988 6,330,389 5,463,643 Intergovernmental 7,378,063 8,355,898 5,527,820 9,151,033 Charges for services 73,892 98,707 167,830 658,972 Use of money and property 113,444 127,399 154,230 151,449 Fines and forfeitures 387,659 407,637 447,996 502,613 Developer participation 1,419,541 9,521,754 4,878,374 6,079,281 Miscellaneous 27,233 23,185 53,677 54,509 Total Revenues 27,986,242 38,343,202 38,413,799 46,806,319 EXPENDITURESCurrent:General government 2,847,574 2,818,701 3,296,176 4,087,029 Public safety 16,050,217 16,255,888 17,363,329 19,336,968 Community development 1,840,980 2,500,826 3,126,267 2,838,474 Parks and recreation - 736,915 555,384 2,075,562 Engineering and public works 5,392,072 6,174,881 6,583,127 11,457,614 Capital outlay 950,814 1,164,653 6,804,204 997,142 Debt service:Principal retirement - 290,000 350,000 360,000 Interest and fiscal charges - 1,013,023 951,387 944,388 Bond issuance costs 396,315 - - - Total Expenditures 27,477,972 30,954,887 39,029,874 42,097,177 Excess (Deficiency) of Revenues Over (Under) Expenditures 508,270 7,388,315 (616,075) 4,709,142 OTHER FINANCING SOURCES (USES)Transfers in 71,360 22,485,729 20,916,110 1,566,639 Transfers out (71,360) (22,485,729) (20,916,110) (1,566,639) Debts issued 20,000,000 - - - Bond premium 979,921 - - - Payment to refunded bond escrow agent - - - - Total Financing Sources (Uses) 20,979,921 - - - Net Change in Fund Balances 21,488,191 7,388,315 (616,075) 4,709,142 Fund Balances, beginning of year 23,083,234 44,571,425 51,959,740 51,343,665 Restatements - - - - Fund Balances, end of year, as restated $ 44,571,425 $ 51,959,740 $ 51,343,665 $ 56,052,807 DEBT SERVICE AS A PERCENTAGE OFNON CAPITAL EXPENDITURES0.00% 4.37% 4.04% 3.17%
Source: City Finance Department
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 121
Menifee Mayor and City Council January 19, 2022
(continued)
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20162017201820192020202125,477,199$ 24,813,331$ 34,743,397$ 38,523,243$ 44,111,372$ 49,468,537$ 6,832,170 8,061,714 10,867,727 10,765,702 10,011,450 10,914,819 6,369,501 5,748,048 12,580,822 13,820,929 16,762,108 19,146,908 1,630,272 6,219,925 6,677,180 8,428,907 8,177,911 9,431,071 254,526 221,382 613,165 2,011,031 1,805,179 63,611 553,986 655,544 718,890 942,403 598,244 329,487 4,518,711 5,295,110 9,078,142 14,077,226 5,559,177 9,600,934 77,778 95,359 128,323 162,935 117,986 630,271 45,714,143 51,110,413 75,407,646 88,732,376 87,143,427 99,585,638 4,253,708 5,391,081 6,151,518 8,169,511 9,981,475 13,962,912 20,836,489 21,350,629 25,062,622 27,389,574 33,869,480 29,174,294 3,154,443 3,643,590 4,872,304 5,693,505 5,196,946 5,377,780 1,182,854 2,461,119 2,833,753 3,592,890 3,977,479 4,943,713 20,576,193 5,947,990 9,438,808 13,436,193 20,997,861 7,041,057 1,200,818 16,157,949 5,898,238 5,143,341 18,164,545 13,332,826 370,000 380,000 390,000 410,000 475,088 2,585,843 933,587 922,488 911,088 895,488 1,140,397 540,059 - - - - - 306,935 52,508,092 56,254,846 55,558,331 64,730,502 93,803,271 77,265,419 (6,793,949) (5,144,433) 19,849,315 24,001,874 (6,659,844) 22,320,219 1,645,900 1,442,815 1,475,606 2,444,198 11,477,822 5,509,717 (1,645,900) (1,442,815) (1,475,060) (2,444,198) (11,477,822) (5,509,717) - - - 6,550,000 - 17,885,000 - - - - - - - - - - - (17,372,007) - - - 6,550,000 - 512,993 (6,793,949) (5,144,433) 19,849,315 30,551,874 (6,659,844) 22,833,212 56,052,807 49,258,858 44,114,425 63,963,740 94,515,614 87,968,707 - - - - - - $ 49,258,858 $ 44,114,425 $ 63,963,740 $ 94,515,614 $ 87,855,770 $ 110,801,919 2.54% 3.25% 2.62% 2.19% 2.69% 5.43% Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 122
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
MAJOR REVENUES BY SOURCE – GOVERNMENTAL FUNDS
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Fiscal Property Sales Motor Vehicle FranchiseYear Tax Tax In Lieu Tax Tax Total2012 8,728,216$ 4,759,397$ 47,163$ 2,916,302$ 16,451,078$ 2013 8,783,126 4,978,337 45,443 2,921,048 16,727,954 2014 11,945,065 5,386,619 34,912 2,967,476 20,334,072 2015 14,634,225 5,924,347 34,308 3,586,271 24,179,151 2016 14,577,983 7,137,168 34,451 3,084,175 24,833,777 2017 12,369,587 8,661,218 39,873 2,973,633 24,044,311 2018 18,876,904 18,005,117 47,721 3,076,719 40,006,461 2019 20,771,353 20,384,878 44,113 3,141,174 44,341,518 2020 22,361,021 21,102,457 73,963 6,289,086 49,826,527 2021 24,076,949 27,476,156 73,963 3,653,129 55,280,197 Source: City Finance Department
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 123
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
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Total TaxableFiscal Assessed PercentYear Secured Unsecured SBE Nonunitary Exemptions Value Change2012 5,853,629,690$ 93,528,317$ 811,497,631$ (18,343,316)$ 6,740,312,322$ -4.05%2013 5,802,742,402 101,020,305 577,528,271 (19,336,905) 6,461,954,073 -4.13%2014 6,179,136,921 94,335,266 440,228,271 (19,630,098) 6,694,070,360 3.59%2015 6,987,584,499 92,460,808 346,628,271 (19,962,118) 7,406,711,460 10.65%2016 7,686,424,297 95,234,280 295,028,271 (131,240,361) 7,945,446,487 7.27%2017 8,204,501,816 94,227,737 253,828,271 (144,682,408) 8,407,875,416 5.82%2018 8,712,740,063 99,807,071 105,828,271 (21,427,691) 8,896,947,714 5.82%2019 9,492,168,800 113,916,759 118,100,000 (21,889,314) 9,702,296,245 9.05%2020 10,257,311,309 119,918,747 13,800,000 (1,199,425) 10,389,830,631 7.09%2021 11,130,368,586 140,615,466 - - 11,270,984,052 8.48%Source: HdL Companies, Riverside County AssessorIn 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% based upon the assessedvalue of the property being taxed. Each year, the assessed value of property may be increased by an "inflationfactor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time it issold to a new owner. At that point, the new assessed value is reassessed at the purchase price sold. Theassessed valuation data shown above represents the only data currently available with respect to the actual marketvalue of taxable property and is subject to the limitations described above.
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 124
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
BY USE CATEGORY
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Total TaxableTotalFiscal Residential Commercial Industrial Assessed Percent DirectYear Property Property Property Dry Farm Other Exemptions Value Change Rate2012 4,665,861,538$ 387,329,110$ 66,412,859$ 22,788,145$ 1,616,263,986$ (18,343,316)$ 6,740,312,322$ -4.05% 0.063732013 4,653,661,495 400,175,540 71,956,220 21,439,147 1,334,058,576 (19,336,905) 6,461,954,073 -4.13% 0.066172014 5,025,043,795 419,255,659 74,872,731 22,134,820 1,172,393,453 (19,630,098) 6,694,070,360 3.59% 0.145522015 5,837,398,400 419,946,710 78,550,017 20,875,554 1,069,902,897 (19,962,118) 7,406,711,460 10.65% 0.142302016 6,349,493,758 444,912,094 79,232,788 21,615,968 1,070,534,347 (20,342,468) 7,945,446,487 7.27% 0.140692017 6,823,268,713 465,564,229 80,678,726 21,511,185 1,038,617,091 (21,764,528) 8,407,875,416 5.82% 0.139432018 7,368,551,565 522,390,630 86,731,580 20,505,027 920,196,603 (21,427,691) 8,896,947,714 5.82% 0.138092019 8,050,646,652 592,624,119 97,305,521 20,895,440 962,713,827 (21,889,314) 9,702,296,245 9.05% 0.137392020 8,789,370,483 634,623,902 96,855,473 84,679,342 785,500,856 (1,199,425) 10,389,830,631 7.09% 0.136972021 9,605,927,556 718,201,265 92,954,481 61,632,016 792,268,734 - 11,270,984,052 8.48% 0.14302Source: HdL Companies, Riverside County AssessorIn 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% based upon the assessed value of the property being taxed. Each year,the assessed value of property may beincreased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessedat the time it is sold to new owner. At that point, the new assessed value is reassessed at the purchase price sold. The assessed valuation data shown aboverepresents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 125
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
DIRECT AND OVERLAPPING PROPERTY TAX RATES
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Agency2012201320142015201620172018201920202021Basic Levy* 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Eastern Municipal Water Imp District 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000 Menifee School Debt Service 0.03486 0.03543 0.03421 0.03275 0.03010 0.03269 0.06080 0.06303 0.06277 0.06111 Metropolitan Water District Original Area 0.00370 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 Perris Union High School Debt Service 0.03429 0.03429 0.06970 0.06303 0.06236 0.06092 0.01320 0.01320 0.08244 0.08569 Mt. San Jacinto Jr. College - - - - 0.01394 0.01320 0.05675 0.05243 0.01320 0.01320 Total Direct & Overlapping Tax Rates1.12285 1.12322 1.15741 1.14928 1.15990 1.16031 1.18425 1.18216 1.21191 1.21350 City of Menifee Share of 1% per Prop 13 0.12740 0.12740 0.12740 0.12740 0.12904 0.12903 0.12903 0.12903 0.12903 0.12643Total Direct Rate**0.06373 0.06617 0.14552 0.14227 0.14069 0.13943 0.13809 0.13739 0.13697 0.14302This schedule shows information for all city tax rate areas.**Total Direct Rate is the weighted average of all individual direct rates applied by the government entity.Source:HdL Companies*In 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% fixed amount. This 1.00% is shared by all taxing agencies inwhich the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessedproperty values for the payment of any voter approved bonds or assessments.Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 126
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
PRINCIPAL PROPERTY TAX PAYERS
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PercentPercentof Total Cityof Total CityTotalTaxable TotalTaxable AssessedAssessedAssessedAssessedTaxpayerValueValueRankValueValueRankMalcolm J. Winer90,540,000$ 0.80% 1 -$ - Donahue Schriber Realty Group57,300,926 0.51% 2 61,367,877 0.91% 2Antelope Ridge Apartments47,240,821 0.42% 3Cantabria Development LP46,342,953 0.41% 4Artesa At Menifee Town Center36,751,508 0.33% 5PHH Real Estate32,929,894 0.29% 6Lennar Homes of California Inc.32,320,775 0.29% 7Target Corporation26,727,592 0.24% 8 22,961,977 0.34% 9Scitt Road Properties25,581,852 0.23% 92018 1 IH Borrower LP23,163,189 0.21% 10Inland Empire Energy Center, LLC811,400,000 12.04% 1A Murphy Ranch48,276,214 0.72% 3Fairfield Holland Road35,384,763 0.52% 4Carrington Place Limited35,280,000 0.52% 5Spanos Corporation30,250,139 0.45% 6PHH Real Estate 28,109,816 0.42% 7Minor Ranch 25,310,392 0.38% 8Menifee Development 22,253,169 0.33% 10Totals 418,899,510 3.72% 1,120,594,347 16.63%All Other 10,852,084,542 96.28% 5,619,717,975 83.37%City Total11,270,984,052$ 100.00%6,740,312,322$ 100.00%The City was incorporated during fiscal year 2008-2009. No information prior to that year is available.Source: The HdL Companies 20212012
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 127
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
PROPERTY TAX LEVIES AND COLLECTIONS
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Total TaxFiscalLevy forPercentage ofAmount Collected inTotal TaxPercentageYearFiscal YearAmountLevySubsequent YearCollectionsof Levy2012 8,723,857$ 8,430,041$ 96.63% 293,816$ 8,723,857$ 100%2013 8,776,235 8,631,266 98.35% 144,969 8,776,235 100%2014 9,319,167 9,159,856 98.29% 159,311 9,319,167 100%2015 10,165,063 10,091,501 99.28% 73,562 10,165,063 100%2016 10,903,160 10,707,116 98.20% 196,044 10,903,160 100%2017 11,592,282 11,391,985 98.27% 200,297 11,592,282 100%2018 12,027,685 11,935,913 99.24% 91,772 12,027,685 100%2019 13,268,770 13,077,732 98.56% 191,038 13,268,770 100%2020 14,397,065 14,170,014 98.42% 227,051 14,397,065 100%2021 16,382,479 16,347,132 99.78% 35,348 16,382,479 100%Fiscal Year of LevyCollected within the WiththepassageofResolution10-138inJune2010,theCityofMenifeeagreedtoparticipateintheRiversideCountyTeeterProgram. Under the Teeter Plan, the City is paid in full each year for the actual amount of property taxes levied, regardless of theamount of delinquencies.
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 128
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
RATIO OF OUTSTANDING DEBT BY TYPE
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GeneralLeaseCertificatesDistributionTotalPercentage ofFiscalObligationRevenueofFacilitiesCountyGovernmentalPersonalPerYearBondsBondsParticipationFinancing 2019Repayment (1)ActivitiesIncomeCapita (2)2012 -$ -$ -$ -$ 1,083,128$ 1,083,128$ 0.06% 15.72$ 2013 - - 20,942,080 - 1,099,390 22,041,470 1.22% 267.84 2014 - - 20,586,752 - 1,057,619 21,644,371 1.20% 258.55 2015 - - 20,206,344 - 1,057,619 21,263,963 1.14% 249.04 2016 - - 19,815,936 - 1,057,619 20,873,555 1.10% 235.80 2017 - - 19,415,528 - - 19,415,528 1.00% 214.16 2018 - - 19,005,120 - - 19,005,120 0.92% 206.80 2019 - - 18,144,304 6,550,000 - 24,694,304 1.09% 264.25 2020 - - 17,688,896 6,499,912 - 24,188,808 0.99% 249.13 2021 - - 16,040,392 6,120,786 - 22,161,178 0.84% 222.31 (1) County Repayment is not bonded debt(2) See the schedule of demographic and economic statistics for population data.Source: City Finance Division
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 129
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
RATIO OF GENERAL BONDED DEBT OUTSTANDING
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TotalLessPercentGeneralDebtNetof Debt toDebtFiscalAssessedObligationServiceBondedAssessedperYearPopulationValueBondsFund (1)DebtValue (2)Capita2012 80,589 6,740,307,322$ -$ -$ -$ 0.00% - 2013 82,292 6,461,954,073 - - - 0.00% - 2014 83,716 6,694,070,360 - - - 0.00% - 2015 85,385 7,406,711,460 - - - 0.00% - 2016 88,524 7,945,446,487 - - - 0.00% - 2017 90,660 8,407,875,416 - - - 0.00% - 2018 91,902 8,896,947,714 - - - 0.00% - 2019 93,452 9,702,296,245 - - - 0.00% - 2020 97,093 10,389,830,631 - - - 0.00% - 2021 99,686 11,270,984,052 - - - 0.00% - (1) Amounts available for repayment of general obligation bonds.Source: City Finance Division(2) Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 130
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
DIRECT AND OVERLAPPING BONDED DEBT
JUNE 30, 2021
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PercentCity's TotalApplicableShare ofDebtto CityDebtDirect DebtCity of Menifee-County Loan Repayment -$ 0.0% -$ City of Menifee-Certificates of Participation 16,990,000 100.0% 16,990,000 City of Menifee-Distribution Facilities Financing Agreement 6,120,786 100.0% 6,120,786 Total Direct Debt23,524,912$ 100.0%23,110,786$ Direct and Overlapping Tax and Assessment DebtMetropolitan Water District 26,830,000$ 0.339% 90,954$ Riverside County Flood Control & Water Reclamation District 10,260,000 18.918% 1,940,987 Eastern Municipal Water District Improvement Districts 17,909,000 80.789-100% 15,228,202 Mount San Jacinto Community College District 262,750,000 10.79300% 28,986,580 Perris Union High School District 237,603,350 57.517% 136,999,716 Menifee Union School District 128,099,720 75.293% 96,273,345 Perris Union High School District CFD 92-1 32,690,000 62.218% 20,181,498 Menifee School District Community Facilities Districts 142,835,000 57.42-100% 138,971,908 Romoland School District Communit Facilities Districts 166,100,000 54.833-100% 157,688,069 Eastern Municipal Water District Community Facilities Districts 69,774,000 62.092-100% 66,739,465 Riverside County Community Facilities District No. 03-1 30,930,000 26.155-95.009% 22,617,936 Eastern Municipal Water District 1915 Act Bonds 2,990,000 62.200% 1,919,580 Total Direct and Overalapping Tax and Assessment Debt687,638,240$ Overlapping General Fund Debt:Riverside County General Fund Obligations 717,525,698$ 3.597% 25,809,399$ Riverside County Pension Obligations 881,575,000 3.597% 31,710,253 Riverside County Board of Education Cert. of Partic. - 0.000% - Perris Union High School District Cert of Partic. 41,063,367 57.659% 23,676,727 Menifee Union School District Cert. of Partic. 46,426,771 75.155% 34,892,040 Total Gross Overlapping General Fund Debt116,088,419$ Less: Riverside County Supported Obligations - Total Net Overlapping General Fund Debt116,088,419$ Overlapping Tax Increment Debt 240,567,748$ 1.3924-12.217%15,276,603$ (Riverside County Successor Agency)Total Direct Debt23,110,786$ Total Gross Overlapping Debt819,003,262$ Total Net Overlapping Debt819,003,262$ Total Direct and Overlapping Debt842,114,048$ Gross Combined Total Debt 1842,114,048$ Net Combined Total Debt842,114,048$ Ratios to 2019-20 Assessed Valuation:Total Direct Debt 0.21%Total Direct and Overlapping Tax and Asssessment Debt 6.10%Gross Combined Total Debt 7.47%Net Combined Total Debt 7.47%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 thatis within the boundaries of the city divided by the district's total assessed value.(1) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bondedcapital lease obligations.Source: California Municipal Statisitics Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 131
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
LEGAL DEBT MARGIN INFORMATION
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2018201920202021Assessed valuation8,896,947,714$ 9,702,296,245$ 10,389,830,631$ 11,270,984,052$ Debit Limit Percentage15%15%15%15%Debt limit1,334,542,157 1,455,344,437 1,558,474,595 1,690,647,608 Total Net Debt Applicable to the LimitGeneral Obligation Bonds:- - - - Legal debt margin1,334,542,157$ 1,455,344,437$ 1,558,474,595$ 1,690,647,608$ Total Debt Applicable to the Limitas a Percentage of Debt Limit0.00%0.00%0.00%0.00%The City of Menifee has no general obligation indebtedness.Only last four years shown.Source: City Finance Department, HdL CompaniesSection43605oftheGovernmentCodeoftheStateofCalifornialimitstheamountofindebtednessforpublicimprovementsto15%oftheassessedvaluation of all real and personal property of the City.
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 132
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
DEMOGRAPHIC AND ECONOMIC STATISTICS
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PersonalPer CapitaMedianOccupiedPersonsFiscalIncomePersonalHomeHousingper MedianUnemploymentYearPopulation(In 1000)IncomePriceUnitsHouseholdAgeRate2012 80,589 1,738,627$ 21,574$ 175,000$ 28,208 2.86 38.20 10.20%2013 82,292 1,812,481 22,025 198,750 28,594 2.88 38.00 8.90%2014 83,716 1,808,600 21,604 250,000 28,933 2.89 37.90 9.60%2015 85,385 1,868,959 22,333 280,000 29,383 2.91 37.60 7.90%2016 88,524 1,891,622 21,253 300,000 30,226 2.93 37.40 7.10%2017 90,660 1,936,648 21,361 332,000 31,253 2.90 37.40 5.20%2018 91,902 2,055,023 22,361 355,000 31,253 2.94 37.90 4.70%2019 93,452 2,264,845 24,235 350,000 31,222 2.99 37.90 4.50%2020 97,093 2,450,076 25,234 374,000 33,348 2.91 37.90 4.00%2021 99,686 2,647,056 26,553 450,000 34,256 2.91 37.70 10.10%Source: Riverside County Center for Demographic Research, California Department of Finance E-5
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 133
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
PRINCIPAL EMPLOYERS
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Number ofPercentage ofEmployerEmployeesEmploymentRankMenifee Union School District 1,665 31.89% 1Mt San Jacinto College District 1,100 21.07% 2Romoland Elementary School District 595 11.40% 3Target Corporation380 7.28% 4Menifee Valley Medical Center365 6.99% 5Stater Brothers 290 5.55% 6City of Menifee 231 4.42% 7Southern California Edison 220 4.21% 8Texas Roadhouse 200 3.83% 9United Parcel Service (UPS) 175 3.35% 10Total Employment Listed5,221 100.00% 2021
Source: Menifee Valley Chamber of Commerce, City of Menifee Business License Division & Economic Development Department
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 134
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
FULL AND PART-TIME CITY EMPLOYEES BY PROGRAM
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2012201320142015201620172018201920202021FUNCTIONCity Manager 6.00 1.50 1.25 2.00 2.00 1.00 4.00 4.00 5.00 5.00 Administrative Services - 4.50 2.75 4.50 5.00 6.00 - - - - City Clerk 2.00 2.00 2.00 2.00 2.00 2.00 3.00 3.00 5.00 5.00 Emergency Services 1.00 - 0.75 - - - - Finance 4.00 6.00 6.00 6.00 6.00 7.00 10.00 12.50 13.50 13.50 Human Resources 1.00 1.00 1.00 1.00 1.00 - 4.00 8.50 6.50 6.50 Information Technology - - - - - - 2.00 5.00 8.00 8.00 Economic Development 1.00 2.25 2.00 2.00 2.00 3.00 3.00 5.00 3.50 3.50 Community Development 3.00 3.00 3.00 4.00 4.00 5.00 11.00 13.50 13.00 13.00 Code Enforcement 4.00 4.00 4.00 5.00 4.00 4.00 7.00 7.00 5.00 6.00 Fire - - - - - - 1.00 2.00 2.00 2.00 Engineering/ Pub Works 4.00 5.00 6.00 10.00 12.00 16.00 24.00 32.00 33.00 33.00 Building/Safety 3.00 4.00 4.00 7.00 8.00 9.00 12.00 14.00 12.00 12.00 Community Services 1.00 3.00 2.25 3.00 13.00 18.58 25.96 31.68 23.39 23.39 Police - - - - - - - 76.00 77.00 78.00 Total30.00 36.25 35.00 46.50 59.00 71.58 106.96 214.18 206.89 208.89 Part-Time Employees are expressed as Full-Time Equivalents.Source: City Finance Department Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 135
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM
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As of June 30, 2012201320142015201620172018201920202021FUNCTIONPublic WorksStreets (Miles) 238 240 244 265 318 318 318 318 327 341Traffic Signals 64 63 67 67 73 68 71 72 75 84Community ServicesParks 5 5 7 7 7 8 11 12 14 14Park Acreage 31 31 39 39 39 45 54 59 79 79Source: City Public Works Department, Community Services
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 136
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
OPERATING INDICATORS BY FUNCTION/PROGRAM
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As of June 30, 2012201320142015201620172018201920202021FUNCTIONPolice ServicesPhysical Arrests 816 824 1,107 1,061 1,295 1,412 1,385 1,500 1,582 1,403 Parking Citations 1,893 1,377 1,208 1,763 330 230 569 435 241 473 Traffic Citations 1,731 1,618 1,199 3,438 3,720 1,733 4,422 5,927 2,492 2,877 Calls for Service 35,938 37,485 41,052 44,395 47,728 47,926 47,961 49,291 48,615 52,152 Fire ServicesMedical/Public service Calls 6,858 6,964 7,301 7,220 9,741 10,081 9,342 10,071 9,172 10,232 Fire calls 160 119 122 130 144 184 182 167 193 225 All other calls 886 939 960 1,810 1,310 1,499 2,158 1,552 2,315 1,494 Total 7,904 8,022 8,383 9,160 11,195 11,764 11,682 11,790 11,680 11,951 Public WorksPotholes/Skinpatch (square feet) 40,149 10,567 15,067 16,121 12,335 18,215 31,458 135,277 63,348 16,358 Curb Refurbishment/Painting (linear feet)10,590 12,505 10,414 12,877 285 3,254 983 722 3,540 7,276 Right of Way Clearing (linear feet) 71,945 72,357 119,137 116,237 14,020,200 13,853,520 4,475,936 886,818 20,006 988,916 Traffic Signs repaired/replaced 1,184 642 911 729 213 275 821 418 461 1,176 Building & SafetyBuilding Permits Issued 1,791 2,811 3,180 2,969 4,031 4,365 5,179 6,232 6,147 6,778 Building Inspections Completed 6,138 8,075 13,119 10,655 13,410 15,417 21,522 23,540 25,480 33,567 Community DevelopmentPlanning Applications Completed 138 199 216 189 275 327 259 208 348 393 Source: City Finance Division, City Community Development Department, City Building Department, City Police Services Department, City Public Works Department
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 137
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
MISCELLANEOUS STATISTICS
JUNE 30, 2021
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Geographic Location:The City of Menifee is located approximately 80 miles south east of Los Angeles in the southwestern portion of Riverside CountyPopulation:99,686Area in square miles:46Form of Government:Council-ManagerDate of Incorporation:October 1, 2008Number of Full Time Employees:208.89Public Safety:Police DepartmentMenifee City Police Department as of 7/1/2020, 89 FTEFire DepartmentRiverside County/Cal Fire Department contract, 53 FTE, 4 Fire StationsLibrary:2 branches, Riverside County Library SystemRecreation:26 Parks owned by Valley Wide Recreation and Park District 14 Parks owned by the CitySchools:Elementary14Middle Schools6High Schools5Community Colleges1Source: City Finance Division Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 138
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS (IN THOUSANDS OF DOLLARS)
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2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Apparel Stores 27,904$ 29,535$ 30,580$ 27,954$ 30,932$ 34,067$ 35,507$ 38,758$ 41,395$ 30,128$ Auto Dealers and Suppliers 16,391 20,590 26,155 34,741 42,077 54,191 57,093 53,556 59,676 55,986 Building Materials 27,217 32,152 36,673 40,262 71,069 - - - - - Eating and Drinking Places 53,113 65,823 72,382 80,640 90,887 102,368 116,223 123,562 141,849 142,570 Food Stores 24,892 25,475 26,470 26,342 29,326 28,855 31,882 36,919 39,695 47,606 Furniture & Appliances 43,508 46,616 48,036 51,441 61,039 - - - - - General Merchandise 56,671 58,670 62,730 66,091 68,839 69,542 71,748 75,453 76,431 81,510 Packaged Liquor 4,200 4,734 5,100 5,253 5,965 - - - - - Service Stations 101,166 104,973 100,388 106,979 91,389 84,642 95,334 117,573 123,359 101,822 Other Retail Stores 34,709 36,863 38,921 43,360 47,519 206,277 226,351 237,971 234,076 243,019 All other Outlets 79,471 76,029 86,476 96,505 114,523 128,848 136,300 171,299 182,774 214,298 Total 469,242$ 501,460$ 533,911$ 579,568$ 653,565$ 708,790$ 770,438$ 855,091$ 899,255$ 916,939$ Source: State of California Board of Equalization and the HdL Companies Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available.
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 139
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
TOP 25 SALES TAX PRODUCERS
FOR FISCAL YEAR ENDED JUNE 30, 2021 AND JUNE 30, 2011
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Business Business
Business Name Category Business Name Category
Ahern Rentals Repair Shop/Equipment Rentals Ahern Rentals Repair Shop/Hand Tool Rentals Arco AM PM Service Stations Albertsons Grocery Stores Liquor Arco AM PM Service Stations Amerimax Building Products Contractors Arco AM PM Service Stations Arco AM PM Service Stations Arco AM PM Service Stations Auto Zone Automotive Supply Stores Best Buy Electronics/Appliance Stores Best Buy Electronics/Appliance Stores Chevron/Circle K Service Stations Chevron Service Stations Circle K Service Stations Chevron Service Stations
Grove Lumber & Building Supplies Building Matericals Circle K Service Stations Home Goods Home Furnishings Jack in the Box Restaurants No Alcohol Imperial Sprinkler Supply Garden/Agricultural Supplies Kohl's Family Apparel Kohls Department Stores McDonald's Restaurants No Alcohol Living Spaces Furniture Home Furnishings Menifee Car Wash Service Stations Lowes Building Matericals Menifee Mart Service Stations Menifee Lakes Plaza Chevron Service Stations Menifee Shell Service Stations Raising Cane's Quick-Service Restaurants Orco Block Contractors Richardsons Auto & RV Sales Trailers/RVs Red Robin Restaurants Liquor Rite Aid Drug Stores Richardson's Auto & RV Sales Trailers/RVs Ross Dress for Less Family Apparel Rite Aid Drug Stores Shell Service Stations Ross Dress for Less Family Apparel Stater Brothers Grocery Stores Staples Office Supplies/Furniture Target Discount Dept. Stores Stater Bros. Markets Grocery Stores Liquor Texas Roadhouse Casual Dining Target Discount Dept Stores TJ Maxx Family Apparel Vulcan Materials Contractors
Walgreens Drug Stores Walgreens Drug Stores
Percentage of Fiscal Year Total
Paid by Top 25 Accounts 57.35% 74.18%
Source: HdL Reports
Firms Listed Alphabetically (April through March data for each year) 2021 2011
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 140
Menifee Mayor and City Council January 19, 2022
CITY OF MENIFEE
MEASURE DD 1% SALES TAX REVENUES AND EXPENDITURES HISTORY JUNE 30, 2021
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Fiscal Year 2017 2018 2019 2020 2021
Revenues
1% Transaction Tax 1,369,814$ 9,961,049$ 11,416,810$ 12,617,232$ 16,724,722$ Interest Income - 24,668 96,362 141,559 4,951
Total Revenue: 1,369,814 9,985,717 11,513,172 12,758,791 16,729,673 Expenditures
Code Enforcement - - 188,042 234,261 263,112
County Sheriff Services - 2,404,849 1,869,310 3,573,072 - County Fire Services - 1,969,424 1,768,811 3,893,526 3,353,950 Capital Equipment - - - 593,105 1,305,108
Capital Projects-Roads - 2,852,248 3,791,111 1,646,995 942,402 Menifee Police - - 273,779 4,855,886 4,906,555
Total Expenditures: - 7,226,521 7,891,053 14,796,845 10,771,127 Cumulative Balance: 1,369,814$ 4,129,010$ 7,751,129$ 5,713,075$ 11,671,621$ The City's citizens voted and approved the 1% sales tax in November 2016 with the implementation date of January 2017.
No information prior to that year is available.
Source: Finance Department
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Menifee Mayor and City Council January 19, 2022
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Independent Accountant’s Report
The Honorable Mayor and City Council
City of Menifee, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Worksheet (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution ) to the accompanying Appropriations Limit Worksheet for the year ended June 30, 2021. The City of Menifee’s (the City) management is responsible for the accompanying Appropriations Limit Worksheet for the year ended June 30, 2021.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting the City in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. Additionally, the League of California Cities has agreed to and acknowledged that the procedures performed are appropriate to meet for their purposes. 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 and the associated findings are as follows:
1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit.
Finding: No exceptions were noted as a result of our procedures.
3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the other documents referenced in number one above.
Finding: No exceptions were noted as a result of our procedures.
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Menifee Mayor and City Council January 19, 2022
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4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council during the prior year.
Finding: No exceptions were noted as a result of our procedures.
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 AICPA.
We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Worksheet for the year ended June 30, 2021. 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 City 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 the City Council and management of the City of Menifee, California, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.
San Bernardino, California
December 10, 2021
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 144
Menifee Mayor and City Council January 19, 2022
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2020-2021
Per Capita Personal Income Change 3.73%
Population Change
City Population Growth 2.49%
CPI Change Converted to a Ratio 1.0373
Population Change Converted to a Ratio 1.0249
Calculation of Growth Factor (1.0373 x 1.0249) 1.0631
2019 - 2020 Limit 42,889,234 $
2020 - 2021 Appropriations Limit
$42,889,234 x 1.0631 45,595,545 $
CITY OF MENIFEE
A PPROPRIA TIONS LIMIT COMPUTA TION
2020 - 2021
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 145
Menifee Mayor and City Council January 19, 2022
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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable City Council
City of Menifee
Menifee, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, each major fund, and the aggregate remaining fund information of the City of Menifee (the City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 10, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 146
Menifee Mayor and City Council January 19, 2022
Honorable City Council
City of Menifee
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Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies.
Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
We noted certain matters that we have reported to management of City of Menifee in a separate letter dated December 10, 2021.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
San Bernardino, California
December 10, 2021
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 147
Menifee Mayor and City Council January 19, 2022
December 10, 2021
To the Honorable City Council
City of Menifee, California
We have audited the financial statements of the City of Menifee (the City) as of and for the year ended June 30, 2021 , and have issued our report thereon dated December 10, 2021. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated April 30, 2021, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement.
An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
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Menifee Mayor and City Council January 19, 2022
Honorable City Council December 10, 2021
City of Menifee Page 2
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team and others in our firm, as appropriate, have complied with all relevant ethical requirements regarding independence.
Significant Risks Identified
We have identified the possibility of the following significant risks during our audit:
Management’s override of internal controls over financial reporting: Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.
Revenue recognition: Management’s failure to recognize revenue in accordance with generally accepted accounting principles.
These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters which caused us to modify our audit procedures or any matters which are required to be communicated to those charged with governance due to these identified risks.
Qualitative Aspects of the City’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1 of the financial statements, during the year, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 84, Fiduciary Activities. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgment s. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
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Menifee Mayor and City Council January 19, 2022
Honorable City Council December 10, 2021
City of Menifee Page 3
The most sensitive accounting estimates affecting the financial statements were:
Management’s estimate of the fair value of investments in the financial statements is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments and determined that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.
Management’s estimate of the depreciation expense
in the financial statements is based
on historical estimates of each capitalized item’s useful life. We evaluated the key factors and assumptions used to develop the estimated useful lives and determined that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of the net pension liability and related deferred inflows and outflows in the financial statements is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of the liability for other post-employment benefits (Net OPEB Liability) and related deferred inflows and outflows in the financial statements is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:
The disclosure of the fair value of investments in the financial statements represents amounts susceptible to market fluctuations.
The disclosure of accumulated depreciation in the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.
The disclosure of the net pension liability and related deferred inflows and outflows in the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.
The disclosure of the net OPEB liability and related deferred inflows and outflows in the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.
The disclosure related to possible effects of the COVID-19 pandemic in the notes.
The financial statement disclosures are neutral, consistent, and clear.
Item Title: 12.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2021 Item Page Number: 150
Menifee Mayor and City Council January 19, 2022
Honorable City Council December 10, 2021
City of Menifee Page 4
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements.
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either i ndividually or in the aggregate, to the financial statements taken as a whole or applicable opinion units.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated December 10, 2021.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
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Menifee Mayor and City Council January 19, 2022
Honorable City Council December 10, 2021
City of Menifee Page 5
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.
This report is intended solely for the information and use of the City Council, and management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
San Bernardino, California
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